(13 years, 4 months ago)
Grand CommitteeMy Lords, if I could follow my noble friend with a slightly different question to the—
My Lords, I am sorry to interrupt. Perhaps noble Lords are not aware that there is a speakers list. Having said that, I am sure that if the Grand Committee—
My Lords, there is a speakers list, so it is possible to speak in the gap. We are in the gap now.
(13 years, 5 months ago)
Lords ChamberMy Lords, I spent a great deal of my political life being involved in forestry, and I made my maiden speech in the other place 41 years ago on the subject. I introduced the Private Member’s Bill that required the Forestry Commission to move from simply producing timber to multipurpose forestry, and I served for eight years as chair of the Forestry Commission. Given that, I was not exactly happy with the Government’s proposals, which I regarded as ill judged, to sell off the Forestry Commission estate. However, I was thrilled and amazed by the response of the British people. I did not expect them to share the appreciation of trees and woodland as fully as I did. The fact that over half a million individuals have signed a petition against the Government’s proposal—the petition is still there; lapsed, but growing each day—was symptomatic of the feeling of the British people. I was quite frankly staggered that I ended up addressing meetings of thousands of people, deep in our forests, who were objecting to the Government’s proposals.
However, that is in the past. The Government, thankfully, saw the light, and they retreated. We are all grateful for that retreat, because it gives us an opportunity now, in a calmer atmosphere, to debate the long-term future of a long-term business. As the House knows, we are talking about an industry that thinks in terms of decades, as a minimum, and occasionally in terms of centuries. It is right to take stock and see where we are.
Over a number of years, we in Britain have had a healthy partnership between the public sector and the private sector in forestry. Twenty per cent is owned by the state and the remainder by the private sector. I think that this is about the right balance, and both sectors receive support from the public finances. This balance is right because the state can do some things more easily than the private sector can. On access, for example, I remind noble Lords that the Forestry Commission estate is the largest single provider of countryside access, with 40 million day visitors per year. I remind the House that under the CROW Act almost all the freehold land is legally open for access on foot, and that on almost all the land there is de facto access on cycles for mountain biking and general recreation. Access is given wherever possible for horses as well. This is much easier to provide where the land is being supported by the general public through taxation than it might be for a private owner. I concede that straightaway, and it is one of my arguments for why we need to retain a sizeable public sector ownership of our forestry.
The issue is not only access. In terms of biodiversity, 26 per cent of the forestry estate is designated as SSSI; and of those sites, 98 per cent are designated as either favourable or at an advanced stage of recovery. Forty-five per cent of the estate is within national parks or areas of outstanding natural beauty. There are constraints on the production of timber, yet the Forestry Commission estate still produces 60 per cent of all the timber produced from woods and forests in this country. In addition to that, there is the storage of CO2 as well.
As for timber supply, although I have long argued for multi purpose forestry, it is also still very important to produce timber. What has not come out in debate on the Government’s proposal to sell off the Forestry Commission is how opposed most of the big users of timber were to it. Modern timber-using industry needs a high level of capital investment and, usually, a great deal of labour. It is imperative that those users of timber are guaranteed a supply 365 days a year, every year. The private sector, quite understandably, will not give those guarantees of supply. When timber prices fall—and it is a highly volatile market—the private sector simply withdraws timber from the market. That makes sense to the private timber owner but not to the timber user in a highly capital-intensive, labour-intensive industry.
I accept that one cannot stand still. As chair of the commission, I was for ever pushing the commission to see if we could find better ways of meeting more public benefits and of doing so in a better way. That was an obligation that I felt we had to the taxpayer and to our customers as wood users. I was pleased, for example, to persuade Parliament to agree to a regulatory reform order that allowed the Forestry Commission, as a government department, to do all sorts of adventurous initiatives. We were allowed to form joint ventures with the private sector, and we have done so with effect. There is much more opportunity for us to continue with that as we progress. While I am open about the way in which we go forward and how we manage and utilise our assets in the state sector, I hope that the Government will be as open as they look ahead with their proposals.
We were all pleased—certainly on this side of the House, along with the overwhelming majority of the British people, including 82 per cent of the Government’s own supporters—that the Secretary of State announced on 17 February that they were dropping their wilder proposals to sell off 85 per cent of the Forestry Commission estate. That was a vast amount, but there still remains the question of the 15 per cent. I hope that the Minister can give us some reassurance about that 15 per cent today. Is it still the Government’s firm intention, after they receive the report from the committee of experts, to sell off that 15 per cent? Before the Government throw back at me the fact that we did that I should say, yes, we did. It makes sense to reshape your estate. But we sold about 2 per cent of the forest estate, a net sale, over 13 years. The Government are proposing to sell 15 per cent over four years. The effect will be dramatic in many parts of the country and it is clearly not what the British people wish.
I say this to the Minister. The Government may feel that the protests and the protesters have gone away, but they have not—they are still there. The forests campaign network is having regular meetings because it wants to hold the Government to account on this issue, and it does not want the sale of the forestry estate asset.
I shall conclude my remarks by asking the Minister a number of straightforward questions. The Government intend to set up the panel of experts, which we appreciate will be widely drawn. Will he give us an assurance that it will meet in public, that its records will be public and that its members will be drawn from throughout the regions of the country?
On an organisational matter, the Forestry Commission is currently being pressurised by Defra to reorganise its administrative structure. This would encompass huge areas, stretching from the north-east of England right through to the east coast. I firmly believed that the way forward for the Forestry Commission was to move to regional and local bases. I thought that the Government shared that idea, with the big society. Will the Minister look at this and suggest to Defra that it work with the Forestry Commission so that the reorganisation is put on hold until we have the report?
Defra has also put proposals to the Forestry Commission that it should come up with a new vision. I have seen a copy of that vision and, frankly, it is disturbing. It mentions all sorts of proposals for the commission that I agree with, but at no stage does it mention any role for the Forestry Commission estate. Will the Minister have a word with his Defra officials on that issue?
This is a very short and rushed debate, in time allocated to the Opposition. There is sufficient interest in this topic within this House, where there is a great deal of knowledge, and I ask the Government to give us some time in government time so that the House can debate this issue and play its part in the forestry debate.
My Lords, I respectfully remind noble Lords that Back-Bench contributions in this debate are limited to two minutes and that those two minutes are already up when it says two minutes on the clock. If any noble Lord exceeds that, he risks restricting my noble friend’s ability to respond to your Lordships.
(13 years, 9 months ago)
Lords ChamberMy Lords, this issue is of considerable importance, not just to the agricultural sector but to consumers and taxpayers throughout Europe, as well as to developing countries and to all those who cherish our countryside. I start by congratulating the noble Lord, Lord Greaves, on securing this debate. As he said, it is a timely one, and I join him in hoping that this will be the first of many occasions on which the House returns to this subject as this latest bout of reform unfolds, in what will undoubtedly be a long and tortuous process. Although the subject is of such importance to so many people, it is an opaque, complex and technical one, which therefore often does not receive the proper scrutiny that it should. I see a list of distinguished speakers with a great deal of experience in this matter, so I shall confine my remarks to a plea to the Government for greater transparency in the way the policy operates.
As is well known, Europe has gone through profound changes since the end of the Second World War. We have seen Germany divided and reunited and the Union grow from the original six members of the EEC, almost inexorably, to the current 27 members of the European Union. Globalisation has transformed the world economy with great social and political consequences, yet in the midst of this profound change—one of the most profound and rapid periods of change in human history—this one institution sails on. Occasionally it is buffeted by reforms, and it has changed quite considerably from the original conception, but it is still recognisably the same institution. Its flaws have been well rehearsed, and I do not want to go into them in great detail today, but it is worth just remembering that the combined costs in the most recent estimate that I have been able to find for the British family of four is £10.40 a week in terms of a direct subsidy with the increased costs to the consumer.
This policy still occupies more than 40 per cent of the European budget. The OECD has estimated that the cost to the European consumer in higher food prices due to the CAP is around £39 billion. The policy has done considerable damage to developing countries in the past, although I recognise that there have been considerable changes in recent years which have mitigated those problems. The figures are very complex and it is difficult to secure any kind of unanimity on them, and the impact on developing countries clearly depends on where the countries are and what period we are talking about, but it is generally accepted that this process of agricultural subsidy has done great damage in the past to some of the world’s poorest people.
The CAP has not really even benefited the farmers that it was most meant to protect. Because payments remain linked to production, 85 per cent of aid still goes to the top 17 per cent of recipients. In 2008, Prince Hans Adam of Liechtenstein got nearly €1.6 million in subsidy, while Prince Albert of Monaco got €250,000. In 2009, Tate & Lyle received more than £250,000 in subsidy. As with all agricultural subsidies throughout the developed world, these represent a form of welfare for agri-businesses. This flawed policy costs a great deal of money to administer—about €175 million. For 2004, which is the latest year that can be considered as finalised, which is a statement that in itself speaks volumes, around €100 million was taken up with fraud and so-called irregularity. So far as we can tell from the leaked documents, it looks as if support will continue to be linked to the size of the farm rather than to incomes, so this kind of skewed distribution is likely to continue.
I hope that these remarks, which will be familiar to all Members of this House, will not be construed as me attacking farming. They certainly should not be, because I believe that agriculture is far more than just another business. Among other things, it sustains our countryside, which is so precious in so many ways to all of us. The need for food security is indisputable, and I see the need for some form of stable support. All I would ask is whether this antiquated system of centralised, bureaucratic state subsidy is really the best way forward. I suspect that the noble Lord, Lord Greaves, and I will have occasion to return to this debate in the coming months.
Before I move on to my final point, I recognise that there have been significant improvements in this policy over the years. Every bout of reform has seen considerable improvements and I pay tribute to the huge efforts that have been required, as everyone in the House will recognise, from large numbers of dedicated public servants across the European Union. Yet all of that effort has still been what I regard as a patch-and-mend operation on what remains, at root, a flawed policy. If I am right about that, how is it that such a policy, which costs so many people so much, has persisted without really radical reform for so long?
It is a textbook example of how the politics of subsidy work. There are institutional handouts and bureaucracies that perpetuate themselves managing them, obfuscating the process and making it opaque for the general public—the voters—to understand. Above all, the fundamental problem is that the costs of this policy are spread thinly across all the people of Europe, whereas the benefits are concentrated on a happy few so that they have a far greater incentive to keep the system going than those who pay the price, largely in ignorance of what is being done to them.
I recognise that there is no possibility of scrapping the CAP and starting again from scratch. The political costs of any such transition would be impossible. But if we are to see progress in reforming this policy, in the direction in which I think most people would want to see it reformed, we need to have a much better informed public debate. Transparency is absolutely central to that. That is why I read with some depression a judgment by the European Court of Justice, published on 8 November, which said that the current EU laws and regulations on disclosure of beneficiaries of farm subsidies are “invalid”. Those regulations about transparency have been responsible for the pressure continuing for reform of this policy. Whatever the legal justifications for this decision, it is clear to me that the public interest must lie in greater transparency.
It must be right that the public understand, as fully as possible, the policy for which they are paying. It is a safeguard against fraud, which has been endemic in the operation of this policy. It should also enable the public to see the counterbalancing advantages of this policy, which previous speakers have already described. I know that the coalition Government are in favour of the Freedom of Information Act. Their Bible, the coalition agreement, says:
“We will extend the scope of the Freedom of Information Act”,
to promote “greater transparency”.
To conclude, what steps are the coalition Government going to take to persuade the European Commission to change the way that its obligation to transparency is discharged in a way that is compatible with that European Court of Justice ruling earlier this month?
My Lords, I respectfully draw the attention of noble Lords to the fact that Back-Benchers’ contributions are time-limited to seven minutes. If they exceed that, they may limit my noble friend’s ability to respond to their questions.
My Lords, I regret having to intervene a second time in this debate, but we are already six minutes over time at this relatively early stage. This debate will end at 1.23 pm, so we are now substantially constraining my noble friend’s ability to answer.