Management of Hedgerows (England) Regulations 2024

Lord Douglas-Miller Excerpts

Monday 20th May 2024 Grand Committee

Moved by

[Lord Douglas-Miller]

That the Grand Committee do consider the Management of Hedgerows (England) Regulations 2024.

Relevant document: 23rd Report from the Secondary Legislation Scrutiny Committee

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Douglas-Miller) (Con)]

My Lords, I declare my interests as set out in the register.

I am sure that many noble Lords will agree that hedgerows are precious features of our landscape, enriching our environment and wildlife. Many of our wild birds depend on them, including red-listed birds such as the linnet and the yellowhammer. Hedgerows also help food production by supporting pollinators, providing windbreaks and shelter, and protecting the soil. I am therefore pleased to bring before this Committee this statutory instrument, which proposes further to protect our hedgerows. The instrument establishes by legislation a common approach to managing hedgerows on agricultural land in England. It builds on the existing legal protections for some hedgerows, which will remain in place.

In proposing this legislation, we have listened to the views of many who cherish our hedgerows, including many farmers. I thank those who responded to our consultation on protecting hedgerows; their insights have enriched our understanding. We received almost 9,000 responses, which we have considered carefully. The responses showed how much hedgerows are valued. There was strong consensus from environmental and farming stakeholders alike that hedgerows should be protected in domestic law in a similar way to the previous hedgerow management rules provided by cross-compliance.

That is what this statutory instrument does. It aims to provide a familiar baseline for hedgerow management. We want to make sure that everyone knows what is expected and is supported to follow good practice. As a safeguard, we are also making sure that there are clear, proportionate consequences for the small minority who might choose to ignore it.

I know that these rules are simply a reasonable minimum which most farmers have been practising for many years. Farmers are the guardians of our hedgerows, protecting, planting and maintaining them for generations. I thank them for their continued efforts to help wildlife thrive on their farms, alongside food production. We trust them to continue to do the right thing. In fact, many are already going further than required by these regulations. We have seen strong uptake of options to manage and further improve hedgerows under our agri-environment schemes. I am delighted to report that there are already more than 20,000 agreements or applications in place, contributing to the management of over 60,000 miles of hedgerow in England. We look forward to working in partnership with many more farmers to manage and improve their hedgerows in future.

The purpose of these regulations is to protect hedgerows in order to support biodiversity, benefit the environment and enrich the landscape. They will make sure that all farmers are treated fairly by upholding common rules for managing hedgerows, and they will provide clarity on what is expected. The regulations govern the management of “important” hedgerows on agricultural land. Broadly, this means hedgerows which have a continuous length of at least 20 metres or which, if shorter, meet another hedgerow at each end. They do not apply to hedgerows within or forming the boundary of a dwelling house. Because the regulations apply to all important hedgerows growing on agricultural land, they will bring into scope some people who were not subject to cross-compliance, such as those who chose not to claim any direct payments or who have farms under five hectares in size.

There are two main requirements under these regulations. First, cutting or trimming hedges will be prohibited between 1 March and 31 August inclusive. This is to protect hedge-nesting birds and their habitats during the breeding season. There are some exceptions to this rule to give farmers and others flexibility where needed. The second requirement is to establish and maintain a two-metre-wide buffer strip alongside the hedgerow. This will protect the hedgerow and its root system from the effects of cultivation and the application of fertilisers or pesticides. Subject to certain exemptions, these activities will not be allowed within the buffer strip. The requirement for a buffer strip will not apply to fields which are two hectares or smaller.

We recognise that people may need time to establish their buffer strips where they do not already have them in place. We therefore propose that, in cases where a field has no buffer strip and is in crop production on 1 July 2024, the requirements will not come into force until that crop has been harvested. In all cases, the exemptions are needed to accommodate the practicalities of farming, or for health and safety-related reasons. They are largely the same as under cross-compliance. They are in place to ensure that we have the right balance between hedgerow protections and effective farming.

The regulations will be enforced on behalf of the Secretary of State by the Rural Payments Agency. Although the rules themselves will be familiar to many farmers, there will be a different approach to enforcement, with the emphasis being on being fair and proportionate. The Rural Payments Agency will take a primarily advice-led approach to enforcement. This has been shown to be the best approach for bringing farmers into compliance in other regulatory areas. However, the Rural Payments Agency will also be able to use a range of civil sanctions and criminal proceedings for the worst-case scenarios. Such action will be proportionate to the damage caused.

Subject to parliamentary approval, detailed information on how the regulations will operate will be provided once the statutory instrument has been made. The Rural Payments Agency will also hold a public consultation on its proposed enforcement policy. I know that it is committed to taking a modern, pragmatic and proportionate approach, with advice and guidance at the forefront.

Although these regulations govern the management of hedgerows on agricultural land, we recognise the value of hedgerows in other locations. Officials are therefore working separately with stakeholders to consider how to support the sustainable management and protection of hedgerows more widely in future.

In conclusion, this statutory instrument will afford fuller protection to one of our countryside’s greatest assets, the hedgerow. That will, I hope, be widely welcomed. I beg to move.

[Baroness McIntosh of Pickering (Con)]

My Lords, I have only one small question for my noble friend the Minister, as we do not have too many hedgerows in north Yorkshire; we mostly have stone walls, which we could have a separate debate on another time.

I am intrigued by the Government’s response to questions posed by the Secondary Legislation Scrutiny Committee in its report. It transpires that the Government are now bringing within the remit of cross-compliance farms of less than five hectares but larger than two hectares. For what reason are we going down that path? Obviously, these are quite small farms. The fields that we used to claim on when we owned a couple of fields would have fallen into this category, I think. I no longer have such an interest, but I wonder why we have gone down the path of including farms of between two and five hectares. Does my noble friend the Minister not agree that this seems like a lot of administration for such small farms?

--- Later in debate ---

Finally, I wish to raise one particular issue. In his introduction, the Minister talked about Defra looking at how further to manage hedgerows sustainably in future. That is incredibly important but I have one concern. The noble Baroness, Lady McIntosh of Pickering, talked about the fact that they have drystone walls in Yorkshire. We have them in Cumbria but we also have a lot of farm hedgerows along the roads—that is, a lot of roadside hedgerows. Something that has become appallingly obvious recently is the number of ash trees in those hedgerows; we have a lot of ash trees in Cumbria. They have all had to be cut down because they are dying and there are concerns that they are going to fall into the road. Those hedgerows just look devastated. If we are looking at having sustainably managed hedgerows in future, in the same way that we look at how to manage trees, can we also look at how we can support hedgerows through disease and the loss of such an important part of those hedgerows, when we have diseases such as ash dieback?

[Lord Douglas-Miller (Con)]

Again, I thank all those who contributed because, from my perspective, this has been a really interesting debate to listen to.

I start by picking up on the issue of ash trees, disease and stuff like that. Like the noble Baroness, I take the train—up to and down from Scotland most weeks. If you look out, you see that things are really horrifying right now. All the leaves are out, and there is dead tree after dead tree. It illustrates the importance of our wider biosecurity. I know that the BTOM has not been to everybody’s approval. Frankly, as we all know, if you are in government, you cannot get this right whichever way you go because some people think that you have not done enough and others say that you have done too much. However, this is a really important issue; on ash trees, it is just a horror.

Keeping some of the pests and diseases that affect our flora and fauna out of the UK is absolutely key. If noble Lords get a chance to go to the Chelsea Flower Show, I recommend that they go to the APHA site. It is based on Asian hornets and is absolutely incredible. It just shows you what we are up against every day of every week. At this time of year, everything is coming alive, and it is all on its way over here. The Defra team and the wider Defra family do an unbelievable amount of work to stop a lot of this stuff coming in. I forget exactly what the cost of ash dieback across the country will be, but it is in the tens of billions; it is going to leave great holes in our hedges and in our woods. The noble Baroness, Lady Hayman, makes a great point: what are we going to do to fill that gap? Perhaps we need to start thinking about that more.

I was really interested in the debate started, I think, by the noble Baroness, Lady Young, on this conflict between farmers and environmentalists—if I may phrase it as crudely as that. Several speakers implied that, because we have had a few months without these regulations, somehow we will be ripping out hedgerows two to the dozen, because we could do that without the regulations. I do not understand that mindset at all; I have never come across it anywhere. I do not know whether the noble Earl, Lord Russell, has; we could perhaps have a conversation afterwards it that is happening, but I have never come across it anywhere and I think most farmers would take proper exception to it being implied. Again, I would be delighted to have a wider conversation.

To answer the specific point, I have heard nothing to suggest that any farmer would remove any hedgerow. On the contrary, there has been a huge increase in people wanting to do better, which is where the farming community comes from.

However, the debate was interesting, because it touched on a few other issues about exemptions, exceptions and so on. There was talk about why we are not protecting young hedges, as if not applying the buffer zone would have a negative impact on young hedges. I do not know if your Lordships have ever planted and looked after a hedge, but it takes quite a long time to get settled in and a lot of careful work each year to keep it there. Buffer zones would overwhelm a young hedge; the weeds would overwhelm it and you would get a properly scrawny hedge with high leaf cover because the understorey would have been taken out completely. I appreciate that some of the exceptions may be counterintuitive, but it is important to do the homework and understand the reasons for some of these things before suggesting that they are somehow improper or not correct. People put a lot of effort and energy into this sort of stuff, so it is perhaps good to appreciate that more widely.

Soil erosion and water body buffers were other issues that the noble Baroness, Lady Young, and others raised. Perhaps I could take them both away, come back with some more information and write to her.

There were quite a lot of questions on people cutting hedges in their gardens. Why can they do that when farmers have to obey the rules? How does that extend to golf courses, public authorities and all the rest of it? Again, this is a pretty challenging area. We do not live in a police state; we are trying to do our best. Education, not enforcement, is the best way of solving this problem. We are consulting on wider issues with hedges. We are just about to start that consultation, which will be an interesting exercise, because the practicalities of enforcing against someone cutting their garden hedge are pretty challenging and I am not sure that we want to get into that space.

A number of noble Lords raised specific issues with the timing of when you can cut a hedge and when you cannot. It is a trade-off between farming and the wider environment. Farmers have other things to do and, by the time we are into September, they are planning for next year and have a lot of other tasks. Sometimes there is a little gap when this can be done. I do not have information on the specific example of a dormouse, but 99% of species have fledged and gone by early September.

[Baroness Young of Old Scone (Lab)]

I think the noble Lord needs to look at the latest information about the impact that climate change is having on extending breeding seasons. It is notable; I will send him some.

[Lord Douglas-Miller (Con)]

I have not looked at that and I appreciate that these dates are moving, but we have to start somewhere and those dates have been chosen for the moment.

The noble Baroness, Lady McIntosh, quizzed me on two-acre fields or less, and why they might be exempt. I hope everybody can understand that, if you have a smaller field, taking up a two-metre buffer zone around the edge of it will have a disproportionate impact. The Government recognise that and it came through pretty clearly in the consultation.

[Baroness McIntosh of Pickering (Con)]

Just to clarify, the question was why under five hectares was being brought in under the de minimis rule.

[Lord Douglas-Miller (Con)]

That was to try to include as many of our precious hedges as we can; that is still quite a big space. Again, through the consultation, it did not seem to cause a great deal of alarm, so it seemed perfectly sensible to include it.

The noble Lord, Lord Teverson, asked a number of questions about who is accountable, who is the regulator and who is the enforcer. The regulations will be enforced by the Rural Payments Agency on behalf of the Secretary of State. The Rural Payments Agency has a history of enforcing the hedgerow maintenance requirements under cross-compliance rules. It is well placed to develop and implement the new enforcement regime for all these regulations. The RPA will be taking an advice and guidance-led approach to enforcement.

On his supplementary question of who you should ring if you are driving along and you see someone doing damage to a hedgerow, I guess that question has always been there. Presumably, people will ring the police in the first instance if they see something going wrong, and they will guided by them to the appropriate agency. In this case, it is the RPA.

The noble Earl, Lord Russell, enquired about the definition of “important” hedgerows. The definition used for these regulations is designed to allow them to replicate as closely as possible the requirements for hedgerow management under cross compliance. For this reason, it was not practicable to use the same definition as is used in the Hedgerows Regulations 1997.

There were a number of slightly more detailed supplementary questions on which I will write to the noble Earl.

I am grateful for the thoughts and questions raised in today’s debate. They underline the value that so many of us place—

[Lord Teverson (LD)]

Forgive me—I do not want to take up the time of the Grand Committee or the Minister; we have taken up a fair bit of time. However, I would value a clarification on Cornish hedges, which are very specific, at some point.

[Lord Douglas-Miller (Con)]

My apologies—I think I can answer that question. Those are not covered by these regulations but they are being consulted on under the new ELMs model, so they will be included there.

In conclusion, I hope your Lordships will support these important regulations. I commend them to the Committee.

Motion agreed.

Agriculture (Delinked Payments) (Reductions) (England) Regulations 2024

Lord Douglas-Miller Excerpts

Monday 20th May 2024 Grand Committee

Moved by

[Lord Douglas-Miller]

That the Grand Committee do consider the Agriculture (Delinked Payments) (Reductions) (England) Regulations 2024.

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Douglas-Miller) (Con)]

My Lords, I declare my interests as set out in the register.

This instrument continues the important agricultural reforms we are making in England. Through these reforms, we are investing in the long-term prosperity of the sector and the future of our precious environment—things which I know many in this House care deeply about. The instrument applies progressive reductions to delinked payments for 2024. Delinked payments were introduced on 1 January 2024 in place of payments to farmers under the basic payment scheme in England. We are phasing out untargeted subsidy payments, as they have held the industry back and done little to improve food production or the environment. We are doing this gradually, over our seven-year agricultural transition period in England. That period began in 2021, so we are now in the fourth year of the transition.

The Government first announced the reductions in this instrument in the agricultural transition plan, published in November 2020. We are applying the reductions to delinked payments in a fair way. Higher percentage reductions are applied to amounts in higher payment bands. We plan to make delinked payments in two instalments each year, which will help farmers with their cash flow.

By continuing gradually to reduce these subsidy payments as planned, we are freeing up money so that farmers can access a wide range of environmental land management schemes and grants to suit all farm types. At this year’s National Farmers’ Union conference, the Prime Minister reiterated our commitment to maintain total farm support at an average of £2.4 billion per year across this Parliament. Therefore, the money that is no longer being spent on untargeted subsidies is not lost to farmers; instead, it is being put to better use. It is being redirected to the sustainable farming incentive and other farming support, which help boost agricultural productivity and resilience, increase food security and deliver for the environment. Our new schemes are investing in the foundations of food security and profitable farm businesses—from healthy soils to clean water.

Earlier this year we updated payment rates in our environmental land management schemes, the average uplift being 10%. Some payment rates went up by significantly more: for example, species-rich grassland has risen from £182 to £646 per hectare.

This summer, we will launch up to 50 new actions, which will allow farmers to access scheme funding for things such as precision farming and agroforestry for the first time. The new actions give farmers even more choice about what they can do, especially those on moorlands and grasslands.

Nearly half of all farmers are now in one of our environmental land management schemes. So far, there have been around 22,000 applications for the sustainable farming incentive under our 2023 offer, and more than 21,000 agreement offers have been issued. There are now over 35,000 live Countryside Stewardship agreements—more than double the number since 2020.

The sustainable farming incentive can help to reduce costs and waste on farms, to make them more resilient and to improve food production by, for example, funding farmers to plant companion crops to help manage pests and nutrients, to assess and improve the health of their soil, and to grow cover crops to protect the soil between the main crops. We are designing our schemes so that they work for smaller farms. We have doubled the management payment for the sustainable farming incentive, which is now worth up to £2,000 for the first year of an agreement. This will help to attract even more smaller farms into the scheme.

Smaller farmers potentially have access to more income than they did before. Under the basic payment scheme, half the money went to 10% of the largest farms. Under the sustainable farming incentive, payments are based on the actions that farmers take, rather than simply the amount of land they have. This means that SFI agreements can produce more income than the basic payment for a typical farm.

Farmers taking part in the sustainable farming incentive are typically more than making up their lost basic payments so far. The value per hectare of applications so far is £148. This, alongside delinked payments for small farms this year—equivalent to £117 per hectare—adds up to more than the value of the basic payment scheme per hectare before the start of the agricultural transition. That is £233 per hectare under the basic payment scheme, versus a total of £263 under delinked payments and the sustainable farming incentive.

This year, we will make it even easier for farmers to access the funding by allowing them to apply for actions previously in Countryside Stewardship mid-tier and the sustainable farming incentive through one application process. In February, we announced the largest-ever grant offer for the agricultural sector, totalling £427 million. This includes a doubling of the investment in productivity and innovation in farming to £220 million this year. This provides support for farmers to invest in automation and robotics, as well as solar installations to build on-farm energy security. It also includes £116 million for slurry infrastructure grants and £91 million for grants to improve the health and welfare of our farmed animals.

We are providing a range of other support for farmers and land managers. This includes a third round of our landscape recovery scheme later this year. The farming resilience fund continues to provide free business support to help farmers plan and adapt their businesses. To date, more than 20,000 farmers have received this support.

In conclusion, the Government continue to back our farmers. We are investing in our new schemes and grants, which are helping farms and food production become more resilient. They also deliver better outcomes for animals, plants and the environment. We must press ahead with these reforms as planned. As ever, I am happy to take any questions. I beg to move.

[Baroness McIntosh of Pickering (Con)]

My Lords, I thank my noble friend for setting out the regulations, which, as he explained, follow on from the earlier regulations to delink payments. I congratulate Defra on the second Farm to Fork summit, which seemed to be well received last week, particularly the inaugural publication of a food security index and the commitment to introduce a five-year seasonal workers scheme, which will be extremely well received by fruit and vegetable farmers across the country.

On farms and food security, the summit recognises the unprecedented challenges all farmers have faced this year. This has been the wettest 18-month period—not just a 12-month or six-month period—since 1836. Also, unprecedented imports have led to competition on very unfavourable terms. For example, given that battery-cage production of poultry has been banned in this country—I do not disagree with that—it is unfair that our farmers face unprecedented levels of imports of battery cage-produced eggs and poultry from EU and third countries.

I would like to press my noble friend to explain how he expects small farms, which he mentioned specifically, to benefit from the provisions of these regulations. We in North Yorkshire are fairly unique in that 48% of our farms are tenanted; that is possibly replicated in County Durham, Cumbria, Northumbria and other parts of the north, and perhaps in the south-west. How does my noble friend expect tenant farmers to benefit, not just under the provisions in the regulations before us but under other provisions that have been announced this year?

I would argue that tenant farms are the backbone of the country. I mentioned the wet weather that we have had, which has had an impact not just on crop production. The AHDB’s figures find that the planting of oilseed rape is down 28% this year, while the planting of wheat is down by 15% and winter barley by 22%, but my noble friend will also be only too aware that livestock farmers have endured an incredibly difficult lambing period. Many have been unable to turn their stock out and have had to rely on feeding livestock, particularly sheep, at a much earlier stage in the year than they would have done otherwise. Cattle have been stuck in sheds with feed running low. I understand that this year straw will be like gold dust.

We all know that, because of the war in Ukraine and other factors, energy and other input prices remain volatile. This is an extremely difficult time, with farmers facing high input costs and very challenging sales prices. Against that backdrop, can my noble friend imagine anything else that the Government can do to extend help to tenant farmers? How does he imagine that small farms, family farms and tenant farms in particular will benefit from the provisions before us today?

--- Later in debate ---

[Lord Douglas-Miller (Con)]

I thank all noble Lords who have contributed to this debate and I welcome the strong level of support across the House, largely, for these measures.

I start by addressing one or two of the issues raised by the noble Baroness, Lady Hayman. She touches on a common theme that comes up when I am out and about. I was at the Chelsea Flower Show this morning and there were a few farmers there—not many, but a few. The issues are about what is going on and where the money is going. The same amount of money is available today as there was yesterday and will be tomorrow. It is £2.4 billion each year over the course of the Parliament, so there is not less money available.

To anyone who has been in receipt of the basic payment scheme as—full disclosure—I have been for probably 40 years, it is a pretty blunt instrument. You get your cheque. There is a little bit of cross-compliance. I received mine in Scotland. It came in two tranches: one at the year end and one about six months after the year end. For anybody who feels that transitioning away from the BPS is somehow bad for cash flow or bad because there is less money in the pot, they have misunderstood what is going on .

The issue of confidence is critical. For sixty-something years—I cannot remember the exact number—if you have been a farmer, you have been used to one system. You farm, you get your BPS payment. If you were interested in other stuff, you could get into an agri-environment scheme, but they were pretty challenging to get into and pretty expensive to join; they really only suited the larger landholdings.

This is a significant shift away from that, but I get that any shift is challenging. Looking at my own farm arrangements, I find myself wondering how we are going to make all this work. Instead of just getting the money, you have to think about what you are going to do. It is public money for public good, so it is a proper shift in mindset. When you get that big shift, it does knock confidence. I am acutely aware of that. It means that people have to think totally differently about their farming operation.

If I am absolutely blunt, that is exactly what ELMS is designed to do and should do. The way that we have been farming has not been overly helpful to productivity or to innovation and—as I think all of us in this Room would collectively agree—it has been deeply unhelpful for the environment. To me, this change is absolutely welcome and necessary but I know that it causes a bit of stress and strain. That is one reason why it has been spread out over a seven-year period.

Farmers are amazing; they are incredibly resilient, but they are also incredibly resilient to listening. It is not as if this has come as a shock to anyone. We have been advertising it on the front page for a number of years now but, of course, this year is the year when it starts to really bite. If you have not been paying attention, you are going to feel some financial pain. We cannot hold everybody’s hand in this space. A huge amount of effort and energy has gone into consultations and into all the prototypes for the SFI modules. A huge amount of consultation has been done with the industry. Defra teams and Ministers have gone to agricultural shows; they have gone around the block telling everybody, “You have to pay attention; there is change coming”. But, as with all things in life, sometimes you start to pay attention only when it starts to hurt the wallet.

I know that there is a degree of concern and a degree of change but, as I think everybody recognises, this transition is long overdue. We really need to get on with it, so I am grateful for the overwhelming support. This is something that we should plug on with.

I will try to answer a few specific questions now. I was asked about financial support for farmers in the event of a crisis or financial emergency. In the event of an exceptional market disruption, the Government have powers to act to support farmers by making a declaration under Section 20 of the Agriculture Act 2020. These powers are intended to deal with unforeseen short-term shocks to agricultural markets where there is an adverse effect on the price achievable for one or more agricultural products. We have seen some pretty big shocks over the past few years, some caused by the weather and some caused by world events. The Government continue to keep this measure as a backdrop. I know that we look at it and think about it, but we have not got round to using it yet. I hope that it is a rainy day one that never has to come out.

Quite a lot of questions were asked about the rationale for delinking. I hope that I covered a lot of this in my opening comments but, broadly speaking, it is vital that we continue gradually to move away from untargeted subsidies as planned because these payments have inhibited productivity improvements and are, I believe, fundamentally unjust. The scheme that we have now delivers a much better outcome and will deliver a much better outcome in the long term.

The noble Earl, Lord Russell, and my noble friend Lady McIntosh asked whether this is the right time to go through a reduction in the BPS, given the weather and other activities. The Government recognise that many farmers are facing challenging conditions—not least the extreme wet weather, which was referenced several times during the debate and has affected enormous parts of the country—but cancelling the planned reductions to delinked payments is not an effective way of addressing these challenges or setting businesses up for a successful future. The longer we hang on to this, the longer we hold everybody back. These payments are untargeted, so increasing them does not direct support to those who most need them. In fact, you do not have to be a farmer to be in receipt of delinked payments now; if you have retired from farming, you will still get what you were due. Perpetuating that is not a helpful way of addressing either today’s issues or the issues that will undoubtedly come in future.

The noble Baroness, Lady Hayman, and my noble friend Lady McIntosh asked a couple of questions about tenant farmers and small farms. This is a challenging area but, on the basis that the basic payment scheme paid you for the chunk of land that you owned, the smaller the chunk of land, the less money you get. This transition allows you to earn more money on a smaller farm, by picking up the delinked payments and engaging with the SFI options. Again, I appreciate that this is challenging because you have to think about what you are doing and you will probably have to make some adjustments to your farming model but, as I have said, this has been signalled to the farming community—small farmers, tenant farmers and large farmers—for a long time. It will take a little time for it to bed in. The money is available; you just have to work out how to go and get it. The money is there. Noble Lords look as though they do not believe me, but it is. The options and choices are there. You have to go out and engage with that.

The noble Earl, Lord Russell, asked what had been done about an impact assessment. One has not been prepared for this instrument because it is not a regulatory provision. However, the Government have already published evidence providing in-depth assessments of the impact of removing direct payments. This includes the 2018 and 2019 farming evidence compendiums, our 2018 assessment of the impact of removing direct payments, and the 2021 and 2022 Agriculture in the United Kingdom evidence packs. If the noble Earl wants more information on that that I can supply, I would again be delighted to do so.

[Earl Russell (LD)]

No evidence has been published on the implementation of the transition to date. There was no evidence in this pack on the impact of these changes. From my point of view, it made it quite hard to assess the changes.

[Lord Douglas-Miller (Con)]

It is pretty early days in this transition, so I am not anticipating that we would have that evidence. We do a lot of consultation directly with farmers and with the industry through organisations such as the NFU, and we have developed a new food index to look at how that might be impacting food security, so quite a lot of measures are evolving and coming through. I would suggest that it is a little early to try to measure impacts at this stage.

I think the noble Lord, Lord Teverson was keen to understand what consultation we are doing with industry and how we are working with it. Have I got that right?

[Lord Teverson (LD)]

I thank the Minister for asking. What I am really trying to say is that we have here a unique instrument that can use various elements of the SFI to get the sort of environmental improvement goals we all want. How are we assessing them so, that over time, we make sure that this state aid, in effect, that we are giving to farmers is used effectively to achieve what we want to achieve? How does that assessment work—not now, but as we start to move through the implementation?

[Lord Douglas-Miller (Con)]

I thank the noble Lord for that helpful clarification. There is a lot in that, and if I may I will write to him with the details rather than go through them all now.

Unless anybody has anything further they would like to ask, I think I have covered most of the questions. I believe—and the Government are right behind this too—that this instrument is essential for our agricultural reforms. We must press ahead as planned so that we can fund our schemes that support farmers to be resilient and sustainable over the long term.

Motion agreed.

Animal Welfare (Livestock Exports) Bill

Lord Douglas-Miller Excerpts

3rd reading
Tuesday 14th May 2024 Lords Chamber

Moved by

[Lord Douglas-Miller]

That the Bill do now pass.

--- Later in debate ---

[Baroness Hayman of Ullock (Lab)]

My Lords, as it is Third Reading and this is supposed to be formal, I shall be very brief and just say how delighted I am to see how swiftly the Bill has made its passage through both Houses. It is an important Bill that many of us have campaigned to see for many years, and I very much welcome it and thank all those who have been involved.

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Douglas-Miller) (Con)]

To be honest, that was a slightly longer list of questions than I was expecting at this stage.

First, I thank all those who have been so kind to support the Bill. I am acutely aware that an awful lot of individuals, Members of this House and the other place, members of the public and other organisations, have been campaigning for this Bill for a very long time, and I am delighted that we have got it to this stage. I am also acutely aware that there are some challenges in certain places where I have been unable to satisfy the noble Baroness, Lady Hoey, and the noble Lord, Lord Empey, on the specific details. However, I think that they are acutely aware that it is probably beyond my remit to address those issues. I have tried extremely hard through both individual engagement and the debates that we have had up to this stage to put the Bill in the position that I think we all want it to conclude on, which is one where it will pass.

Therefore, I feel sad that I cannot satisfy everybody in this space, but I genuinely believe that we can collectively be proud of this Bill, and it does exactly the right thing at this moment in time.

Bill passed.

Fly-tipping

Lord Douglas-Miller Excerpts

Tuesday 14th May 2024 Lords Chamber

[Earl Russell]

To ask His Majesty’s Government what steps they are taking to reduce fly-tipping and its impacts on natural environments.

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Douglas-Miller) (Con)]

My Lords, I declare my interests as set out in the register. Fly-tipping and illegal dumping of waste blight our local communities and damage the environment. The Government have given the Environment Agency an extra £10 million a year to tackle waste crime, including illegal waste sites and large-scale illegal dumping, which is often perpetrated by organised crime syndicates. We are also helping councils to take tougher action on local fly-tipping by more than doubling the maximum on-the-spot fine and providing £1.2 million in grants, with a further £1 million to follow later this summer.

[Earl Russell (LD)]

My Lords, large-scale criminal enterprise fly-tipping is out of control and increased by 13% between 2021 and 2022. In areas such as Hoads Wood it was reported that up to 30 trucks of illegal waste were dumped every day between July last year and January this year, with no effective action taken. Campaign groups estimate that it will now cost £10 million to clear up the waste. Will the Government commit to meeting the full costs of this clean-up and undertake a review into this specific case, to assess the resources and effectiveness of enforcement action against large-scale fly-tipping?

[Lord Douglas-Miller (Con)]

I completely agree with the noble Earl that the illegal dumping of waste at Hoads Wood is appalling, and a full criminal investigation is under way. I am unable to comment further on the details of that live investigation as I do not wish to prejudice potential enforcement action. However, I assure the House that the Government are determined to bring those responsible to account. Specifically on Hoads Wood, the Secretary of State has written to the chief executive of the Environment Agency, asking him to draw up delivery plans to ensure that appropriate action is taken to resolve this wholly unacceptable situation. As part of that, we will consider how best to support the clearance of waste from the site. The Environment Agency has powers to recover the cost of action to clear the waste from those responsible. The Secretary of State has also asked the chief executive of the Environment Agency to review the agency’s actions in relation to the site, including what lessons it and other agencies involved in the local partnership tackling this can learn.

[Baroness McIntosh of Pickering (Con)]

My Lords, will my noble friend commit to ensuring that prosecutions are indeed brought? Does he accept that, if matters are taken into the landowner’s own hands, this could be a very retrograde step? What conversations has he had with the Home Office and his department in this regard to ensure that prosecutions are brought and perpetrators brought to book?

[Lord Douglas-Miller (Con)]

The Government have put in a series of plans recently to assist councils with preparing the evidence to assist with prosecutions. Fly-tipping and illegal dumping is a serious crime and offenders can face a significant fine or a prison sentence. While sentencing is a matter for the independent courts, we have worked with the National Fly-tipping Prevention Group to produce a guide on how councils and others can build a robust case for prosecutions.

[Lord Wigley (PC)]

My Lords, does the Minister accept that one of the important factors that influences the degree of fly-tipping is the availability of regular, transparent and dependable systems for the collection of waste? Will he have a look at the high figures in Wales for recycling and see whether some lessons can be learnt for elsewhere?

[Lord Douglas-Miller (Con)]

I would be delighted to do that and undertake to do it.

[Baroness Lampard (Con)]

My Lords, I declare my interest in a family farm business that bears an ever-increasing burden of having to clear up fly-tipped waste, particularly building waste—which recently included a most attractive bathroom suite left in an open meadow. Can the Minister say whether any consideration has been given to requiring waste carrier licensees to display some form of licence on their vehicles? Does the Minister agree that fly-tippers might be deterred from carrying and dumping waste if they and their illegal purpose were more easily identifiable because of the absence of a visible licence on their vehicle?

[Lord Douglas-Miller (Con)]

My noble friend makes an extremely good point and, under the new regulations that we are just about to bring out, we are looking at exactly how those permitted to use these regulations have to display the relevant permit, where they display it and how they advertise it, to make it much more clear to those using these facilities whether they are acting legally.

[Lord Sikka (Lab)]

My Lords, fly-tipping has increased because many councils do not have weekly refuse collection and charge people for taking items to the local refuse collection centres. A major reason behind this is that council spending power as funded by the Government fell in real terms by more than 50% between 2010-11 and 2020-21, and this has not been restored. What responsibility does the Minister accept for creating an environment for fly-tipping?

[Lord Douglas-Miller (Con)]

No, I do not recognise that at all. Defra grants have helped over 30 councils across the country to tackle fly-tipping at hotspots, such as by installing CCTV and putting up fencing. Further grants to support even more councils are due this summer. Furthermore, councils retain all income from fixed-penalty notices, the upper limit for which has recently been increased to £1,000, and this is ring- fenced for local enforcement and clean-up.

[Lord Berkeley (Lab)]

My Lords, will the Government encourage those who have building waste to tip to put it into filling the potholes in the road? That would kill two birds with one stone.

[Lord Douglas-Miller (Con)]

That is a novel idea. I am certainly happy to take it away and consider it extremely carefully.

[Lord Cromwell (CB)]

My Lords, the Minister told us earlier that the Government were going to tackle waste sites. I would love to know what that actually means. If it means clearing them up, it simply creates the space for more waste to be tipped. He also talked about on-the-spot fines. The essence of fly-tipping is that there is no one on the spot when you tip it.

[Lord Cromwell (CB)]

That is not personal experience. I came across one fly-tipping incident where the offender had actually thrown down the parking ticket that was previously attached to their vehicle and had their number on it. When the police found this, they told me they were not going to take any action because the person whose vehicle it was would simply deny they were driving it.

[Lord Douglas-Miller (Con)]

The noble Lord raises a series of extremely good points. By the very nature of fly-tipping, as he rightly points out, it is extremely difficult to be in the right place at the right time when someone is doing it. I completely accept that there are limitations around this. However, the Government have introduced a number of new initiatives, such as the use of cameras, to help councils on this issue. It is very difficult to deal with it. To be honest, my personal view is that it is an education issue rather than an enforcement issue, but we are probably getting a little off topic.

[Baroness Hayman of Ullock (Lab)]

My Lords, the Minister has outlined some of the initiatives that the Government are bringing in to help combat this, which is clearly welcome, but recent figures show the number of fixed-penalty notices issued decreased by 19% and the number of court fines decreased by 17%. There is no point in bringing in new initiatives and increasing penalties if they are not used. Is the Minister satisfied that sufficient resources are supplied to local authorities and the police to ensure that fly-tippers are caught and properly punished?

[Lord Douglas-Miller (Con)]

The noble Baroness raises the issue that the previous noble Lord also raised. It is extremely difficult, by the very nature of the activity, to police it 100%. In his Anti-Social Behaviour Action Plan, the Prime Minister made it clear that councils should take a tougher approach to enforcement and make greater use of the fixed penalties available to them. We have also taken steps to encourage councils to issue more of these penalties by increasing transparency on their use, through the publication of annual enforcement league tables. Councils must also now invest the income from this in enforcement activity and clean-up.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, there has been discussion around the introduction of digital waste tracking by April 2025. This would make a huge difference to the amount of waste produced and dumped, and help to keep the countryside clear of waste pollutants. When is the SI covering digital waste tracking likely to be brought forward?

[Lord Douglas-Miller (Con)]

The noble Baroness is absolutely right about digital waste tracking, because it will reduce the ability of waste criminals to hide evidence of the mishandling of waste and will make it easier for authorities to identify waste dropping out of the system, which might indicate illegal activity, such as fly-tipping. Digital waste tracking records will be required when private waste management companies collect household waste. This should enable householders to check whether their waste has been disposed of properly. We are working towards the digital waste tracking service becoming mandatory from April 2025. Prior to the service being mandatory, there will be a period of public use when the service will be available for all to use on a voluntary basis.

Sea Fisheries (International Commission for the Conservation of Atlantic Tunas) (Amendment) (No. 2) Regulations 2024

Lord Douglas-Miller Excerpts

Tuesday 14th May 2024 Lords Chamber

Moved by

[Lord Douglas-Miller]

That the draft Regulations laid before the House on 14 March be approved. Considered in Grand Committee on 7 May.

Motion agreed.

Pet Abduction Bill

Lord Douglas-Miller Excerpts

2nd reading
Friday 10th May 2024 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Douglas-Miller) (Con)]

I start by putting on record my thanks to my noble friend Lord Black for supporting this important Bill. He is a great champion of animal welfare overall, and I know he has followed the discussions on today’s topic particularly closely. I am delighted that he has chosen to steer this Bill through the House. I know it will be in safe hands, in the animal Parliament that he described.

There are more than 20 million cats and dogs in the country, and over a quarter of households own at least one of these animals. The noble Baronesses, Lady Hayman and Lady Bakewell, both spoke passionately about the companionship and friendship that animals bring. In my own home in Scotland, there are always four happy faces and wagging tails there to greet me when I return from a week here in London.

The Government strongly support this Bill, which represents another important step in our progress on animal welfare. It delivers one of the key recommendations from the Government’s pet theft taskforce. This cross-government group was convened in 2021 in response to an apparent rise in pet theft during the Covid pandemic, at a time when many households decided to buy or adopt a new pet.

We understand the devastating impact that the theft of a pet can have. While stealing an animal is already an offence, the fact that the item stolen is a live animal is not explicitly recognised by existing theft offences. The Pet Abduction Bill changes that by making abduction of a cat or a dog a specific offence in England and Northern Ireland. The intention is that this Bill will allow the courts to place greater focus on the impact on the welfare of the animal as well as the interests of its owner when deciding on the appropriate penalty in an individual case. It also allows pet abduction cases to be recorded and therefore traced, to help inform the scale of the issue, a point raised by a number of noble Lords this morning.

The Bill focuses on cats and dogs, given their status as the most popular pets. However, we recognise the value of other pets. The Bill includes an enabling power that will allow the Secretary of State in respect of England, or the Department for Agriculture, Environment and Rural Affairs in respect of Northern Ireland, to introduce similar bespoke offences for other species commonly kept as pets, if there is evidence of the need for this. The noble Baroness, Lady Bakewell, talked about repatriation across devolved Administrations. I hope that we will not get to that—the devolved Administrations have similar plans to introduce this type of legislation, and we are working closely with them.

As my noble friend Lord Black has already eloquently outlined, the abduction offences differ between cats and dogs, in that the cat abduction offence is limited to the taking, only, of cats. This reflects the lifestyle differences between cats and dogs, with cats often roaming independently and enjoying the odd nap on someone else’s sofa—perhaps not the sofa of the noble Baroness, Lady Hayman, as it will be full of mice, although that might be why they would go there—or a bite to eat from a different feed bowl. Simply feeding someone else’s cat will generally not be an offence. However, one can imagine cases where someone deliberately uses food or other tactics as a means of taking a cat. It is right that the Bill allows flexibility for those cases to be tried as pet abduction. This difference also strikes the right balance in not wanting to discourage people from looking after stray cats that need their help. Animal welfare organisations such as the RSPCA, Cats Protection and Battersea have excellent information available on what people should do if they find a cat that they believe is a stray. There are also clear legal requirements around what people must do when they find a stray dog, both in England and Northern Ireland. In both countries, this includes a requirement to involve the local area’s authorities.

The offences in the Bill will not apply in certain situations where disputes about the ownership of a dog or cat are likely to arise between members of a household when they separate and cannot agree on which member should be allowed to keep the dog or cat. This approach reflects one of the findings of the pet theft taskforce—that reports to the police of pet theft were sometimes linked with divorce cases. By excluding these types of cases, the Bill will rightly prevent attempts to use the new offence to address household disputes about pet ownership.

My noble friends Lord Blencathra and Lord Holmes asked about the police taking seriously the unlawful taking of pets. The public rightly expect police to respond when a crime is reported to them, working with partners across the criminal justice system to see more criminals charged and prosecuted. Police forces across England and Wales have committed to pursuing all lines of inquiry when there is a reasonable chance that it could lead to them catching a perpetrator or solving a crime.

My noble friends also raised a number of points around sentencing. This Bill is designed to deal with the unscrupulous people who abduct a cat or a dog. The maximum sentence attached to this crime will be up to five years in prison, an unlimited fine, or both. This is the same as the maximum term for animal welfare offences under the Animal Welfare Act 2006 and the Welfare of Animals Act (Northern Ireland) 2011. I hear what my noble friends say, but I feel it is right that the maximum penalty aligns with other serious animal welfare offences in this way.

In response to my noble friend Lord Holmes of Richmond’s points about guide dogs, they are very much in the scope of the dog abduction offence. The Bill applies to dogs as a species and does not distinguish between types of dogs. When dealing with an offence, the courts already have a broad range of sentencing powers to deal effectively and appropriately with offenders. In deciding what sentence to impose, the courts take into account the circumstances of the offence and any aggravating and mitigating circumstances.

My noble friend Lord Blencathra rightly pointed out that the popularity of pets is subject to trends. The wording of the enabling power allows it to remain relevant over time, even if the pet-keeping practice changes. The assessment of whether such animals can be considered to be a species commonly kept as a pet for the purposes of this Bill would form part of the consideration to engage the Bill’s enabling power. That power is further restricted by the Government’s duty to consult such persons as they consider appropriate before making legislation. In addition, any such legislation is subject to the affirmative procedure. The House will therefore have the opportunity to scrutinise the rationale for adding to or removing from the Bill any particular species, should that power be used.

My noble friend Lord Blencathra also raised the issue of cats predating on songbirds—but perhaps not the cat of the noble Baroness, Lady Hayman, in this case. My officials met the SongBird Survival charity recently. They heard about research by the University of Exeter, which showed that owners can reduce their cat’s hunting by adjusting their cat’s diet or by spending short periods playing with them. SongBird Survival’s education campaign, run jointly with Cats Protection, aims to spread awareness of how to reduce cat hunting this spring. We look forward to continuing our engagement and hearing the outcome of this campaign.

Before I finish, I want to touch on the issue of microchips, which was raised by the noble Baroness, Lady Bakewell, and my noble friend Lord Black, when he spoke very eloquently about Clooney, the Siamese who disappeared from his owner’s garden in Norfolk. My noble friend referenced Clooney’s microchip and the fact that it had been scanned and checked while Clooney was missing from his home, but that, heartbreakingly, his owner had not been made aware. Microchips are the best way to reunite people with lost and abducted animals. The microchipping of dogs has been compulsory in England since 2016, and for even longer in Northern Ireland. From 10 June this year, cats in England that are older than 20 weeks will need to be microchipped and registered on a compliant database. There is abundant evidence that microchipping works to bring animals home, which is why it is so sad to hear that in Clooney’s case it did not work.

To conclude, the Government are committed to this Bill. We have further strengthened this commitment during the passage of the Bill through the other place by adding the commencement date for these offences in England into the Bill. They will enter into force here three months after Royal Assent. This Bill addresses an issue that campaigners have long been calling for. I am grateful for the support from the many animal welfare organisations and individuals. This Bill also further strengthens our already strong track record on animal welfare, something that I know noble Lords rightly feel strongly about. I thank noble Lords for their considered contributions to this debate; it is clear that this is a subject close to people’s hearts. I too express my hope that we can work together to get this Bill on to the statute book by the summer—and in time for my noble friend’s birthday.

[Lord Blencathra (Con)]

In view of my noble friend’s assurances that the Government will not allow willy-nilly any species to be classed as a commonly kept pet, and if he continues his work in Defra discussing how cat owners can make sure that their cats are not killing too many songbirds or others in the garden, I can give the House an assurance that I may be persuaded not to move any amendments.

[Lord Douglas-Miller (Con)]

My noble friend is very kind.

Animal Welfare (Livestock Exports) Bill

Lord Douglas-Miller Excerpts

Report stage
Wednesday 8th May 2024 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Douglas-Miller) (Con)]

My Lords, I am grateful to the noble Lord, Lord de Clifford, and to all other noble Lords who have spoken so eloquently and passionately on these efforts to ensure that this Bill brings to an end excessively long journeys for all species likely to be exported for slaughter and fattening. I reassure noble Lords that the Government are fully in agreement on that point. We wish to put a permanent end to this unnecessary trade for all animals, and I believe that the definition of “relevant livestock” in the Bill will achieve that aim.

I shall begin by summarising the process of evidence gathering and consultation that led to the drafting of the list of species included in the Bill. In 2018, the Government launched a call for evidence on live exports for slaughter and on animal welfare in transport, alongside a systematic review conducted by Scotland’s Rural College and the University of Edinburgh. The UK, Scottish and Welsh Governments then commissioned a report from the Farm Animal Welfare Committee, which drew on this evidence, as well as a range of expert opinion from stakeholder engagement. Building on these findings, in 2020 we consulted widely on the ban on live exports for livestock and horses and received over 11,000 responses. During the consultation, we received no evidence that a ban on any other species was necessary. We have also received no such evidence since.

In the 10 years prior to EU exit, the live export trade for slaughter and fattening mainly involved sheep and unweaned calves. There have also been exports of pigs and goats for fattening, although these have been at significantly lower levels. While there have been no recorded exports of horses for slaughter, there is anecdotal evidence to suggest that the trade does exist. The definition of “relevant livestock” therefore already covers the species required for the Bill to bring an end to the unnecessary live export trade for slaughter and fattening. We also discussed this amendment in the context of alpacas, llamas and deer. In the UK, there are extremely low numbers of these animals compared with the numbers of farmed animals already covered by the Bill. More importantly, we have no evidence of any of these species being exported for slaughter or fattening from Great Britain to the EU, or that there is any demand for a trade in live exports of these species from the EU or elsewhere.

I understand noble Lords’ desire to ensure that the ban will apply to all relevant animals, at present as well as in the future. When considering the data we have on the slaughter export trade, I continue to hold the view that the definition of “relevant livestock” in the Bill is comprehensive and the proposed power to extend it is not required. The Government wish to see the unnecessary slaughter and fattening trade brought to a conclusive end at the earliest opportunity. I am sure this desire is shared by those here today and all those who support the Bill outside Parliament. Today, we have the chance to act swiftly and decisively to bring the end of this trade one step closer, and I therefore respectfully ask the noble Lord to withdraw his amendment.

--- Later in debate ---

[Baroness Hayman of Ullock (Lab)]

My Lords, I thank the noble Baroness, Lady Bakewell of Hardington Mandeville, for introducing her Amendment 2. It seems to be a perfectly reasonable suggestion to review the impact on farming, for the reasons that she introduced and other noble Lords mentioned, particularly the noble Baroness, Lady McIntosh of Pickering. Our farmers have had a pretty tough time over the last few years. There have been a lot of changes, and this is another change—one that we strongly support. We need to ensure that our farmers are always steered and supported through any major change to the way their businesses have to operate.

An important point has been made about farmers’ concerns about being undercut by cheap imports, including the point made by the noble Baroness, Lady McIntosh, about poultry in particular. It is very expensive for our farmers to bring in the new systems on animal welfare that we expect them to. It is good that they do so and that we farm to particularly high animal welfare standards in this country, but we should not allow the sale of produce in this country that does not meet those same standards. When we do our trade deals, we need to be really careful about what we are opening a door to. We should always first support our own farmers and the standards that we need to meet in this country.

Some concerns were also raised about border controls and the cost to farmers and producers of the new controls that are coming in. I will not go into great detail about that, as other noble Lords have talked about it and we had a fairly extensive debate on it in this House— I cannot remember whether it was last week or the week before; time flies when you are having fun. Any impact of the border controls, combined with changes in how farmers are expected to manage, transport and export their produce, needs to be considered as a whole. That seems to be a very sensible approach.

The noble Baroness, Lady Bennett of Manor Castle, also made the important point that any review must take into account what the potential outcomes of that review could be. Clearly, the last thing any of us would want to see would be any review resulting in the starting up of live exports. I say that with the assumption that the Minister is not going to stand up and say that he will accept the noble Baroness’s amendment. However, it is generally the case that new legislation does get reviewed at some point—so, again, it is important that, once this is on the statute, it does not get unpicked at any stage.

Although we very much support the points that the noble Baroness, Lady Bakewell of Hardington Mandeville, is making here and the points made by other noble Lords during this debate, as previously, we would not want to slow the passage of the Bill in any way. So, while it is important that we have discussions and debates around this, we would not want to hold the Bill up at all.

I just want to make one very final point. I was absolutely delighted to hear the noble Baroness, Lady McIntosh, talk about ungulates. Many years ago, in a previous life, when I was a proofreader, I proofread a book called The Biology and Management of Mountain Ungulates—and I never thought I would get the opportunity to say that in this House.

[Lord Douglas-Miller (Con)]

My Lords, I am not even going to try.

I am grateful to the noble Baroness, Lady Bakewell, and to other noble Baronesses who have spoken and continue to speak towards the efforts to ensure that all impacts of the Bill on farming have been fully considered.

I will start by making three main points. First, I reassure the noble Baroness that we have already considered the impacts of this policy on British farmers and businesses and we expect the impact to be minimal, as outlined in our impact assessment, published in July 2021. The estimated direct cost to businesses of ending live exports for slaughter and fattening is around £5,200,000 across the 10-year appraisal period, or around £500,000 per year. It is also highly likely that the impact will have further decreased since then, as there have been no recorded live exports for slaughter or fattening from Great Britain to continental Europe since this assessment was published.

Secondly, when we consulted, responses indicated that some businesses which can no longer export live animals for slaughter will instead sell their live animals domestically and export the carcass or final meat products instead. We do not anticipate any issue with domestic slaughterhouse capacity being able to absorb any animals that might otherwise have been exported. In 2020, we exported from Great Britain around 6,300 sheep to the EU for slaughter and about 38,000 for fattening. These slaughter exports accounted for around 0.02% of all livestock slaughtered in the UK in 2020 and so represented a very small proportion of the total number of animals processed in the UK every year. I hope this reassures the noble Baroness.

Thirdly, in 2020 we exported approximately 480,000 tonnes of beef, veal, lamb, mutton, pork, bacon and ham from the UK, worth an estimated £1.4 billion in real terms. Clearly, this trade is much more significant to the farming industry in Great Britain than the live export trade.

I also reassure noble Lords that there are not, and never have been, significant imports for slaughter or fattening into Great Britain, and there is no established import trade for this purpose that in any way constitutes a comparable trade to the previous live export trade. According to Animal and Plant Health Agency data on imports to Great Britain from the Republic of Ireland, since the beginning of 2021 around 1,800 pigs and 500 cattle have been imported for fattening and around 900 cattle imported for slaughter. The total number of livestock imports into Great Britain for fattening and slaughter from other EU countries is smaller still, in the tens of animals or less over the same period. In stark contrast, 44,500 sheep were exported for slaughter or fattening from Great Britain to the EU in 2020.

Further to this, the very low numbers of livestock imported into Great Britain all come from EU member states, primarily the Republic of Ireland. This means that animals are reared in conditions that are comparable to the animal welfare standards that apply in Great Britain, and we do not foresee any reason why this would change.

The noble Baroness, Lady McIntosh, raised a number of issues—I will cover one or two of those. The first is the issue of Northern Ireland being used as a loophole by transporters. The requirements when transporting livestock to Northern Ireland would make any attempt to export livestock in this way uneconomic. Livestock transported for slaughter from Great Britain to Northern Ireland must go directly to the slaughterhouse: it is an offence to move the animals anywhere else. On arrival at the slaughterhouse, the animals and accompanying health certificates must be presented to an officer of the Department of Agriculture, Environment and Rural Affairs. Livestock exported for any other purpose must remain at the place of destination for a minimum of 30 days and be retagged to comply with animal identification requirements. The Bill will make it an offence for anyone to send, or attempt to send, livestock from Great Britain to anywhere outside the UK and Crown dependencies.

The noble Baroness also raised the issue of border control posts, particularly those going into Europe. The Government would like to see exports for breeding resume, but this is a commercial issue. We remain sympathetic to the concerns of the businesses involved and the department has been active in doing what it can to support a satisfactory outcome. Defra officials continue to track progress on this issue and meet regularly with the National Farmers’ Union, which represents the wider industry. It is disappointing that, despite all efforts, the companies that are seeking to identify an appropriate solution have not been successful in securing a border control post to serve their preferred routes. I did pick up on the noble Baroness’s point about Harwich to the Hook of Holland, and perhaps we can take that as a separate issue outside today’s business.

The noble Baroness, Lady Hayman, raised the issue of trade deals and welfare standards around that. On low-welfare imports, the UK Government were elected on a manifesto commitment that, in all our trade negotiations, we will not compromise on our high animal welfare and food standards. We will stand firm in trade negotiations to make sure that any new trade deals live up to the values of farmers and consumers across the United Kingdom and will maintain our high standards as part of any future free trade agreements.

Products imported into the UK must continue to comply with our existing import requirements. It has always been the case that products produced to different environmental and animal welfare standards can be placed on the UK market if they comply with these requirements, and this includes products from the EU and other long-standing trading partners. A range of government departments, agencies and bodies continue to ensure that these standards are being met, including the Food Standards Agency, Food Standards Scotland, the Animal and Plant Health Agency, the Veterinary Medicines Directorate and the Health and Safety Executive.

[Baroness McIntosh of Pickering (Con)]

I do not disagree at all with what my noble friend is saying, but the Government must see that we are harming our own producers in the same way that we did when we had the unilateral ban on sow stalls and tethers. Consumers need a label to let them know in this regard.

[Lord Douglas-Miller (Con)]

I thank my noble friend for her point, and perhaps I can clear that up with her later on.

In conclusion, this Bill will put a permanent end to a trade which, at its height in the 1990s, affected over 2 million animals a year; more recently it has impacted much smaller numbers. I can safely say there will be a minimal impact on farming in Great Britain and I think we all agree it is better that we encourage exports on the hook, rather than on the hoof.

It is an important point, and one of which we should be proud, that this Bill will reinforce our farming industry’s position as a world leader on animal welfare, boosting the value of British meat and helping to grow the economy. Given that the impact of the Bill on farming in Great Britain is outlined clearly in our impact assessment, I continue respectfully to hold the view that it is not necessary to add this further requirement to it. I therefore ask the noble Baroness to withdraw her amendment.

Sea Fisheries (International Commission for the Conservation of Atlantic Tunas) (Amendment) (No. 2) Regulations 2024

Lord Douglas-Miller Excerpts

Tuesday 7th May 2024 Grand Committee

Moved by

[Lord Douglas-Miller]

That the Grand Committee do consider the Sea Fisheries (International Commission for the Conservation of Atlantic Tunas) (Amendment) (No. 2) Regulations 2024.

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Douglas-Miller) (Con)]

My Lords, these regulations were laid in draft before this House on 14 March 2024. This is a good news story: Atlantic bluefin tuna are present again in UK waters and are increasing in abundance after an absence of many years. In 2021, the International Union for Conservation of Nature changed its assessment of bluefin tuna from “endangered” to “least concern”, which reflects the improving state of the stock. There is significant demand for recreational fishing access to bluefin tuna, which will boost tourism in coastal communities and deliver social and economic benefits.

Following our exit from the EU, the UK joined the International Convention for the Conservation of Atlantic Tunas, henceforth referred to as ICCAT, which is the international organisation that manages Atlantic bluefin tuna. This enabled the UK to secure bluefin tuna quota for the first time. In line with ICCAT rules, this instrument will enable UK fisheries administrations to open their own catch-and-release recreational bluefin tuna fisheries. It will permit authorised recreational fishing vessels to target bluefin tuna by rod and line only and on a catch-and-release basis, meaning that fish should be returned to the water unharmed. Without this legislation the UK would be able to run only commercial and scientific bluefin tuna fisheries, preventing us unlocking the social and economic benefits associated with the recreational fishing of this valuable species.

So far, UK fisheries administrations have taken a cautious and measured approach to managing bluefin tuna quota by running scientific catch-and-release tagging programmes, known as CHART, over the past three years. Under the English CHART programme, bluefin tuna were caught and released with an exceptionally low mortality rate of 0.7%. The programme provided valuable data on the social and economic benefits associated with recreational access to bluefin tuna. A trial commercial fishery for bluefin tuna ran in 2023 in UK waters.

This year, the UK has been allocated around 66 tonnes of bluefin tuna quota by ICCAT, which represents 0.16% of the total allowable catch shared between all ICCAT contracting parties. Comparatively, the European Union has been allocated 53%. In future years, the UK hopes to increase its quota allocation; decisions on how we intend to use it will ensure that bluefin tuna fisheries meet our international commitments, contribute to delivering the Fisheries Act 2020 objectives, and reflect stakeholder interests. This year, 16 tonnes will be used for recreational fisheries and 39 tonnes will be used for the trial commercial fishery, which is running for a second year. The remainder will be used for commercial by-catch and scientific tagging programmes. Although the tuna will be caught and released in the recreational fishery, quota is needed to cover any incidental mortalities.

The Marine Management Organisation is expecting to open a recreational fishery in English waters this summer. The Welsh Government are also considering opening a recreational fishery in Welsh waters this year. These fisheries will run alongside further CHART programmes elsewhere in the UK. ICCAT requires any recreational targeting of bluefin tuna to be authorised. The UK fisheries administrations currently do not have the appropriate powers to authorise recreational fishing for bluefin tuna. Therefore, the Government wish to proceed with the legislation being debated today to bring recreational bluefin tuna fishing in line with ICCAT requirements.

This statutory instrument has been created using powers under Section 36 of the Fisheries Act 2020 to add provisions as amendments to existing assimilated law, namely Regulation (EU) 2016/1627. This UK legislation enables each of the four UK fishery administrations to issue non-transferable, time-limited permits to UK recreational vessels to fish for bluefin tuna in their waters should they wish to do so, regardless of where in the UK the vessel is based. It gives fishery administrations the power to set permit eligibility requirements that support the delivery of Fisheries Act objectives; to set appropriate criteria for ranking applications in the event of oversubscription; and to refuse permits on the grounds of safety, conservation or appropriateness.

The SI also gives fishery administrations the power to amend or revoke permits. It explicitly prohibits both the unauthorised targeting of tuna on a recreational basis and the removal of bluefin tuna from the water anywhere in UK waters, whether on a vessel or from the shore. It amends the Sea Fishing (Enforcement) Regulations 2018 to confer enforcement powers on the Marine Management Organisation and the Inshore Fisheries and Conservation Authorities. Finally, the SI creates new offences for the unpermitted recreational targeting of bluefin tuna and for breaching permit conditions, ensuring that we protect this unique species and its encouraging return to UK waters.

These amendments are distinct from the licensing requirements and powers under Section 14 of the Fisheries Act 2020, which apply only to commercial vessels. This legislation will support delivery of the sustainability and scientific evidence objectives of the Fisheries Act 2020.

With an annual allocation this year of 16 tonnes of quota, bluefin tuna recreational fisheries are expected to generate £25 million in charter fees and significant additional spend over the next 10 years in deprived rural and coastal communities. These benefits will increase if quota allocations increase. We are keen to improve our knowledge of bluefin tuna in UK waters, which is why this instrument stipulates that recreational fishers must report their catch within 24 hours of each trip.

The devolved Administrations are supportive of the amendments made by this UK instrument. If the instrument is not passed, there will not be enough time to open the bluefin tuna fishery for the full 2024 season, with the consequence of lost revenue for charter businesses and an increased risk of illegal fishing.

I hope I have reassured noble Lords on the purpose and aims of this instrument, which will deliver socioeconomic opportunities to coastal communities across the UK. For the reasons I have set out, I commend these regulations to the Committee. I thank noble Lords for their support and remain at their disposal for any questions that they may wish to ask.

[Lord Berkeley (Lab)]

My Lords, I am grateful to the Minister for that introduction. I have one or two questions to ask him, because I have been involved in some fishing discussions in the south-west, where I live.

I start by asking the Minister about this SI. We are talking about recreational fishing boats. Can the Minister explain in a bit more detail the difference between a recreational fishing boat and a commercial one, if there is a difference? Is the difference that you are required to throw the fish back on a recreational boat but, on a commercial boat, you can eat the product? It is unclear to me. I know that they all have to be caught by rod and line, but does it matter who catches them?

At the end of his useful introduction, the Minister mentioned an income of £25 million for the fishing industry, but, only a couple of months ago, a similar decision was made to ban pollock fishing completely. That will probably put a large number of small fishing boats whose owners live in small villages in Cornwall, where I live, out of business, and they will probably have to sell their boats.

The reason I raise this issue is that, in the debate on pollock fishing in the other place, on 11 March, there was a lot of criticism from all parts of the House about the lack of data. There was a quota of several thousand tonnes a year of pollock that could be caught, but suddenly, just like that, the whole thing was banned —no fishing at all—with maybe a small amount of compensation if the fisherman’s main income was from collecting pollock. There has been a series of bad rows in the south-west and other places because it is not easy for these small fishing boats to diversify.

In a media statement, the then Minister for fishing and fishermen—I do not know who it was but he has been quoted among the fishing sector in the south-west—said, “If you’re suddenly not allowed to fish for pollock, you can always fish for tuna”. As the Minister here will know, tuna are rather heavier than pollock and you need different equipment. Today, we have a draft regulation telling people that if they if they want to fish for tuna then they have to chuck it back—which I think is a good idea—but a couple of months ago a Minister was telling people that if they were not allowed to fish for pollock then they could go fishing for tuna.

People who are about to lose their livelihood—quite a few of them are having to sell their little fishing boats in places such as Mevagissey—being told that they can go and fish for something else, and that by the way they will get a small grant for one-quarter of the difference, is bad enough, but when people dug into that a bit more they found that there was no data about why the ban was suddenly introduced, without any warning to the fishermen concerned—it just suddenly came. If the stocks were gradually reducing then I could understand that fishermen might be told they could not fish for so many and their quota had to go down for the next year, but to be suddenly told that you cannot fish for them at all, even though that is your livelihood—and we might give you a bit of money for a cup of tea but nothing else—is ridiculous. It shows complete ignorance of the industry. I was talking to a fisherman in the Isles of Scilly at the weekend. I asked what he thought of it and he said, “Well, there’s more pollock around my coast than there are human beings in Cornwall. These people don’t know what they’re doing”.

I would be interested to know the basis on which people can continue to fish for tuna and either chuck it back or eat it, depending on which of these different commercial arrangements are in place. Will the Minister comment before the Government introduce any more sudden changes in regulation? This has a dramatic effect on small boat fishing around the coast, not just in Cornwall and Scilly but in many other places. How are they going to improve things in future? I look forward to his comments.

--- Later in debate ---

[Baroness Hayman of Ullock (Lab)]

My Lords, I thank the Minister for his thorough introduction to this SI. He talked about bluefin tuna or, as they are known in the SI, BFT, which means I can think of them only as the “Big Friendly Tuna”. They were pushed to the brink of extinction because of overfishing, so it is really welcome that the fish have returned to UK waters over the past decade and that populations are recovering in other areas such as the Mediterranean, as noble Lords have referred to.

I want to look at just a few bits. Paragraph 7.10 of the Explanatory Memorandum outlines that

“Defra intends to open a BFT CRRF”—

I have not decided what else CRRF could be, but there are a lot of acronyms in the Explanatory Memorandum. The maximum scale of the CRRF is to do with the availability of the quota. We heard in the Minister’s introduction and in noble Lords’ comments about the implications of that quota in the long term, not just as it is set now.

I was also interested to see in paragraph 10.3 that there was a fairly thorough consultation between July and September 2023. Paragraph 10.3 outlines a number of ways in which the scheme has been revised following the consultation. One of the things I wanted to pick up on, and I will come back to, is the reasons why the introduction of permit charges was delayed.

One of the responses to this announcement was from the leader of the Blue Marine Foundation, Charles Clover—I am sure the Minister knows this. Charles Clover said he is anxious that

“we are just starting off a cycle of commercial fishing far too early in its recovery which we cannot control. We are creating a new commercial interest in fishing bluefin which will need close scrutiny. Realistically, the survival of the bluefin now will be about setting quotas strictly within scientific advice”.

Clearly, we all want this to work. Can the Minister say something regarding Charles Clover’s concerns? On the face of it, the quota that has been brought in by Defra looks absolutely fine, and we support the SI, but, having looked at the Blue Marine Foundation’s comments, I ask the Minister: how will the quota be kept under review? Will Defra be prepared to make significant changes if the data suggests that any changes are needed? How would that come into play?

On that point, I want to look at what my noble friend Lord Berkeley said about pollock. Again, this is about the accuracy of quotas, when this is reviewed, how it is implemented and the impacts on the fishing industry. It is often very small boats that rely on this for their living.

To come back to the postponement of the introduction of permits, the Explanatory Memorandum says that

“the introduction of charges for permits has been postponed, to allow time for further work to confirm the scope and scale of such charges, as well as how any charging income would be used”.

Questions were asked about the delay in charging for permits when this SI was debated in the other place. The Minister responded that permits would ensure that

“the whole industry will be conducted responsibly, with the best welfare in mind”,—[Official Report, Commons, Fourth Delegated Legislation Committee, 24/4/24; col. 8.]

which obviously we support, but it would be useful to have a bit more information as to the timescales for this, what is likely to happen and what it is likely to look like when it comes in. What does “further work” mean? What kind of work is being carried out? It would be useful to know. Having said that, we are supportive of this. It is good for the industry and for coastal communities, and it is great that we have tuna back.

I hope the Minister will forgive me, because I know this is not what the SI is about, but I want briefly to raise concerns about the salmon farming industry, following a story I read in the media this morning. Official figures from the Scottish Government suggest that farmed salmon mortality hit record levels last year, with over 17 million deaths. There has been increased incidence of mass mortality events in farms elsewhere in the world. We know that these mass die-offs are believed to include sea lice infestations and environmental stressors, such as poor oxygen levels in water, with overpopulation of pens exacerbating the problems.

I was concerned about Defra’s decision to allow Salmon Scotland’s application to change the protected name wording on the front packaging from “Scottish farmed salmon” to “Scottish salmon”, as I think that is pretty misleading. That change is also not supported by Animal Equality UK and WildFish, which say that, as well as being misleading, it breaches assimilated EU Regulation 1151/2012—the Minister may want to write that down—on quality schemes for agricultural products and foodstuffs. I am aware that this is outside the scope and subject of this SI, and I apologise to the Minister for being a little cheeky, but I know that he has a particular interest in and knowledge of this area, so I would be grateful if he could look into this.

[Lord Douglas-Miller (Con)]

I thank noble Lords for their interest in this matter and in other fishery-related issues.

I start by commenting on the issues in Scotland, raised by the noble Baroness, Lady Hayman. I am highly sympathetic to this issue because, in a previous life, I chaired the Atlantic Salmon Trust, which deals with wild salmon and interacts with the aquaculture industry on a daily, permanent basis. There are some serious challenges in this space. I have a personal view and then there is a Defra view. I should probably stick to the Defra view for the moment—unless your Lordships can coax the other one out of me later.

The level of mortality of farmed salmon, in my view and Defra’s, is completely unacceptable. As your Lordships know, salmon farming is an issue devolved to the Scottish Government. The only jurisdictional reach that Defra has into aquaculture is through its work on antimicrobial resistance and the use of antibiotics, which is UK-wide. It is no coincidence that salmon farming is one of the least successful industries at reducing its antibiotic use. It is an area of serious concern and those concerns are being raised. I accept the noble Baroness’s comments on the name change. I can see from noble Lords’ body language that those are collective comments and, as your Lordships’ can probably see, I am minded to share those views. I will take that back to the department to quiz officials further. It is a completely unacceptable state of affairs.

I turn my attention to some of the questions that were raised on bluefin tuna. The issue that sits behind many of them is the sustainability of this particular fishery. We have been in a bad place in the past, but there were no rules, regulations and oversight then. My personal assessment of the situation is that ICCAT has a very firm handle on the conservation status of Atlantic bluefin tuna.

As I said in opening, the issue for me personally is that we get 0.16% of the overall quota. My maths is not brilliant but, if we get 60 tonnes in round terms, and the percentage is then only 0.16%, there are many hundreds of thousands of tonnes being allocated elsewhere. This is an Atlantic fish; it is only in the Atlantic. It seems inconceivable that the UK’s involvement, in its recreational or commercial fishery, would in any way impact on the population, when we are getting 0.16% of the quota that has been allocated by an international organisation that has the welfare of the bluefin tuna at stake. That satisfies my personal position on this, and I hope it goes some way to satisfy others as well.

The noble Lord, Lord Berkeley, raised the issue of the pollock fishery. In many respects that fishery, which is governed under ICES, the International Council for the Exploration of the Sea, seems to be sitting almost 50 years behind the bluefin tuna. I do not know quite how we got ourselves into a position where a fish species has been designated as below a certain conservation status, and therefore we cannot take a quota from it, but we are governed by ICES and restricted by its quota. This has been much debated in the other House. I do not think there is anything I can usefully add to that, other than that it is in no one’s interests that our fishery stocks are depleted to the state that we are in today, because that causes all the hardship, aggravation and financial stress and strain that we are seeing down on the south-west coast.

[Lord Berkeley (Lab)]

I am grateful for that answer. We are where we are, but can the Minister provide any assurance that, in future, the monitoring of not just pollock and tuna but other fish that need to be monitored is done consistently and comprehensively? At the moment, I am told that anybody who is allowed to fish for pollock can get extra money from somebody in the Government if they put a tag on it or if it gets monitored. It seems to me that the monitoring should have been going on continuously for many years and the results published, so that people can form their own view as to what is likely to happen in future—and challenge the MMO and anybody else if they do not like it. It would be very helpful if the Minister could give me some comfort that it is going to get better.

[Lord Douglas-Miller (Con)]

That is exactly it and precisely the place that we all want to be. Specifically on the bluefin tuna fishery, we have gone into this carefully. We have done three years of scientific study without even starting up a commercial or recreational fishery, so the lessons are being learned. I take the noble Lord’s point about having a consistent approach and will certainly take a closer look at that when I get back to the department.

We had some comments from the noble Baroness, Lady Bakewell, on how the fishery is to be enforced. I know that she is a keen fisherman herself and an expert in catch and release. In England, the inshore fisheries and conservation authorities—IFCAs—and the Marine Management Organisation will be enforcing the new legislation. IFCAs enforce waters up to six nautical miles from the shore and the Marine Management Organisation enforces from six miles to the 200 nautical-mile limit. Fishing for bluefin tuna without a permit or in contravention of the legislative requirements and permit conditions will be a criminal offence. The MMO will have the power to vary, suspend and revoke permits, under the conditions set out in this new legislation.

Enforcement of the fishery will be a risk-based and intelligence-led process, with the primary objective of enforcing the prohibition of non-permitted activities. Clearly, we are dealing with small boats in a big sea with limited resources. It is not going to be 100%, but no system ever is. However, there is quite a lot of local intelligence in this space and I believe that the MMO and the IFCAs have the resources in place to manage the entire process.

I think that covers everything. If I have answered all the questions, I hope that the Committee shares my conviction that this instrument is required to enable the UK fisheries administrations to establish recreational bluefin tuna fisheries in their waters. These regulations will bring social and economic benefits to the fishing industry and coastal communities, and support the sustainable management—I stress “sustainable”—of bluefin tuna. I will be sure to check Hansard and endeavour to respond in writing if I have missed any of the specific details. With that, I commend the instrument to the Committee.

Motion agreed.

EU Imports and Exports: Food and Agricultural Products

Lord Douglas-Miller Excerpts

Thursday 2nd May 2024 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Douglas-Miller) (Con)]

My Lords, I thank the noble Baroness, Lady McIntosh of Pickering, for securing this important debate, and all those who have spoken for their thoughtful and constructive comments. There have been a great number of questions and I have a very short period of time to address them, so I will push on and see how many I can get through. I will of course write to those whose detailed questions I do not manage to answer.

The second phase of the border target operating model was implemented on 30 April, reflecting a long period of intensive work across government. I am pleased to report to the House a smooth and successful implementation. I am also extremely grateful to the noble Lord, Lord Redesdale, for his continued support. All the necessary digital systems have been deployed and the documentary and physical checks have begun successfully at the points of entry across the country. Defra will, of course, continue to monitor the BTOM’s impact and effectiveness on a very regular basis.

Contrary to the point raised by the noble Lords, Lord Howarth and Lord Redesdale, and in support of the comments made by the noble Lord, Lord Trees, I say that introducing these biosecurity controls on imports is very important. Now that we have moved away from the EU’s rigid biosecurity surveillance and reporting system, we are responsible for protecting our own biosecurity from threats such as African swine fever and Xylella. These threats would devastate UK industries and cause significant damage to the environment, public health and the wider economy. We remember the impact in 2001 of foot and mouth, which cost British business nearly £13 billion in 2022 prices and of course caused massive disruption to many industries, as well as emotional and financial distress to many of our farmers.

Biosecurity controls are also essential to protect our exports and international trading interests. Our trading partners want to be reassured that we maintain the highest biosecurity standards. The overall ambition of the border target operating model is to introduce robust risk-based controls that protect biosecurity while reducing administrative and cost burdens for importers.

I will take this opportunity to address some of the questions raised. The noble Viscount, Lord Waverley, and the noble Baroness, Lady McIntosh, asked about the Government’s assessment of our readiness to implement these controls. The Government have worked with port and airport operators, traders, port health authorities and the Animal and Plant Health Agency to make sure that we have the right infrastructure, systems and resources in place. In recent months, this has culminated in an intensive period of operational testing and collaboration with several ports, port health authorities, APHA and traders. We have used these tests to identify and resolve any remaining operational issues.

We are confident that BCP infrastructure has sufficient capacity and capability to handle the volume of checks expected under border control operating models. This was raised by the right reverend Prelate the Bishop of Lincoln, and I hope that satisfies him. I should add that the port health authorities’ staffing is designed to be very much in line with demand. We are confident that our systems are robust, dynamic and effective, and we are confident that inspection authorities are appropriately staffed and trained. This is reflected in the successful first few days of implementation.

The noble Baroness, Lady McIntosh, and the noble Lord, Lord Redesdale, spoke of the impact of border controls on domestic food producers, and I am confident that the border target operating model will strike the right balance between safeguarding biosecurity and reducing friction on trade. The National Farmers’ Union has welcomed the new regime and its protection of our biosecurity. These checks are also vital for maintaining access to export markets by assuring our trading partners of our high biosecurity standards.

I turn to some questions raised by the noble Baroness, Lady McIntosh, and again support the comments made by the noble Lord, Lord Trees, on the comparative regulatory advantages enjoyed by EU businesses exporting to Great Britain. Although the focus of the border target operating model is on imports, I note that it substantially reduces the asymmetry in the regulatory burden between GB-EU and EU-GB trade. It introduces new controls on animal and plant products imported from the EU, ensuring that they meet our high biosecurity standards.

The noble Lord, Lord Redesdale, and others questioned the assessment made by the Government of the impact of these controls on business. We have been clear from the outset that, in developing this new model, we aim to achieve the lowest regulatory obligation for businesses, consistent with the need to protect biosecurity and to safeguard the UK’s reputation for high regulatory standards. I believe that this is what we have achieved. All costs and operational procedures will be kept under review and, if they appear either disproportionate or excessive in other ways, we can and will alter them.

The noble Lord, Lord Howarth, spoke on the impact that these controls will have on inflation. Indeed, it was a point raised by other noble Lords as well. For consumers, the implementation of the BTOM should have minimal impact on food price inflation. Initial analysis—I take the point that the noble Baroness, Lady Hayman, made about where that information comes from and whether it can be published; I will write to her on that—is based on peer-reviewed methodology and has indicated that the policies introduced under BTOM will lead to an approximate increase in consumer price inflation of less than 0.2 percentage points over a three-year period.

The noble Lord, Lord de Clifford, seemed to suggest that the Government are refusing to talk to the Dover Port Health Authority. I can assure him that nothing could be further from the truth. We have been engaged in dialogue with the Dover Port Health Authority for a number of months now. The current funding package that it enjoys was put in place to cover a range of tasks that are now moving to Sevington. We are looking to negotiate a new package with the Dover Port Health Authority to reflect the reduced number of checks that it has been doing over a wide range of issues. This does not mean that we will be reducing checks for African swine fever. To be clear, the authority that is responsible for stopping and checking for illegal imports is Border Force, not the port health authority.

The noble Baroness, Lady Bennett, asked how the Government intended to enforce the attendance of goods called to Sevington for a BCP check. Consignments called to Sevington for inspection will have completed the necessary customs declarations and pre-notifications. These goods will not be legally cleared for sale or use within the UK until they have been attended to and cleared prior to BCP. Where the BCP has concerns due to non-attendance, the goods will be referred for inland controls by the local authority, enforceable through the data collected through those customs declarations and pre-notifications.

Another point raised by a number of noble Lords was around horticulture. The Government are most grateful to the HTA, which has provided extensive and constructive feedback during the development of this model. Indeed, I have held a number of meetings and round tables with the chairman, chief executive and quite a number of its members. Officials in Defra and the Cabinet Office have worked closely with the HTA and a number of its members on operational tests of systems and the BCPs of most significance to their sector. This has allowed government and BCP operators to refine systems and processes to ensure that the new regulatory system works smoothly for this sector.

This brings me on to another point that was raised by a number of noble Lords about the pragmatic approach that we are taking. When you are introducing an entirely new system—I am very aware; I have been in business and know how this works—it is good practice on day one to go quite slowly. That is entirely what we have attempted to achieve here. My clear instruction to all the port health authorities is that we do not want to go from nought to 100 miles an hour on day one. We have targets in terms of the quantity of products per risk category that we want to check. We can build up to that; we do not need to go from nothing to everything on day one. I hope that that pragmatic approach is very much a part of the successful start that we have seen to this process.

I am very conscious of the time, so I will pause there and again thank all those involved in today’s debate. It has been extremely helpful and valuable. If I have missed any points, I will ensure that I write to noble Lords.

Water Companies: Licence Conditions

Lord Douglas-Miller Excerpts

Wednesday 1st May 2024 Lords Chamber

[Lord Sikka]

To ask His Majesty’s Government what estimates have been made of the distributable reserves of each water company now that OFWAT has taken powers under the Environment Act 2021 to change their licence conditions, including whether they can pay dividends.

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Douglas-Miller) (Con)]

My Lords, I declare my interests as set out in the register. The best proxy for distributable reserves is retained profits. This is the profit and loss reserve on a company’s balance sheet. Company boards are responsible for determining how much of their profit and loss reserves is distributed. The Government have not carried out an exercise to calculate each company’s distributable reserves. Where a company in cash lock-up breaches its licence by paying a dividend, Ofwat will take enforcement action.

[Lord Sikka (Lab)]

My Lords, as I have previously pointed out in this House, water company accounts are not only massaged but cooked and roasted with abusive accounting practices. Ofwat and the Government have said that under certain circumstances they will block the payment of dividends, which presupposes that they know what the legally defined distributable profits of each company are. The Minister has just said that the Government have not got a clue; therefore, there is no way of knowing whether any of those dividend payments is actually lawful. Can the Minister explain why the Government announce policies when they do not have the basic data to implement them?

[Lord Douglas-Miller (Con)]

The Government have a very clear idea about the information that they are reviewing because every single water company, like every other public company, has its accounts audited. That information is publicly available, and I refer the noble Lord to the public audited accounts of all those water companies.

[Baroness Uddin (Non-Afl)]

My Lords, I support everything said by my friend the noble Lord, Lord Sikka. I wonder what regular representation, if any, the Government make about the quality of the water provided to us via various water authorities. I do not know if the Minister is aware that there is an exponential rise of allergies and eczema in east London. The water quality there is poor; I have raised these issues privately and on previous occasions. Can he assure me and this House that the water quality is as important as the profits that the water companies are making?

[Lord Douglas-Miller (Con)]

I absolutely assure the noble Baroness and the House that that is the case. I was not aware of the issue that she outlined around the outbreak of eczema. I am not sure if that is related to the water, but I can certainly look into that matter for her. The Environment Agency spends a great deal of time on this, and it is one of the issues that we can be really proud of. We get an unbelievably good service provided in terms of clean water that goes into every household across this country for a very modest price.

[Lord Watts (Lab)]

Why do the Government allow these water companies to retain profits when there is so much need for investment and given their poor performance and the way that they are polluting our rivers and seas?

[Lord Douglas-Miller (Con)]

The noble Lord perhaps needs to refresh his memory on exactly what a private company is and how that works. When you make an investment into a public company, like a water company, you expect to get some return on that investment, and it is only right and proper that everybody does. We are talking about pension funds as well as individuals.

[Earl Russell (LD)]

My Lords, does the Minister agree that the continuing secrecy and uncertainty surrounding the future of Thames Water is unhelpful and damaging to the water sector and the whole UK economy? When does the Minister expect to fully update the House and provide some certainty on Project Timber, the Government’s contingency plan for Thames Water?

[Lord Douglas-Miller (Con)]

The noble Earl knows that it would be improper of me to comment on the details about Thames Water. I assure him and the House that we are taking an extremely close and careful look at this. It is in all our interests that the financial resilience of our water sector, as well as the individual players within it, is maintained and enhanced to ensure the level of investment required to improve water and address the issues related to sewage.

[The Earl of Devon (CB)]

My Lords, given the increasing regulatory and compliance burdens on water companies due to the Environment Act and such other essential recent legislation, is it not simply becoming unprofitable to invest in the water industry, which surely will make nationalisation at some point inevitable?

[Lord Douglas-Miller (Con)]

I do not think that I agree with that assessment at all; it certainly is not this Government’s policy to nationalise the water industry or indeed any other industry. Environmental issues around water companies are certainly highlighted more greatly than they ever were in the past. The Government have put a huge effort into monitoring the level of sewage and other pollutants going into the water systems. That, in part, is leading to much greater awareness of issues that have probably been going on for a very long time, and we are committed to fixing those issues.

[Baroness Hayman of Ullock (Lab)]

My Lords, I want to come back to the Minister’s response on dividends, investments and payments. Earlier this month, the Financial Times revealed that the 16 water companies paid out a total of £78 billion in dividends in the three decades since privatisation to March 2023, building up £64 billion in borrowing over the same period. It is worth remembering that the utilities were debt free when they were privatised. Frankly, I find these figures incredible. Is the Minister justifying his response to my noble friend as to how much money is acceptable to be paid in dividends?

[Lord Douglas-Miller (Con)]

The noble Baroness raises a lot of very detailed numbers in her question, but the principle of dividends for public companies is well established and every other public company produces dividends for its investors. Perhaps I might take away those thoughts and come back to her.

[Lord Bellingham (Con)]

My Lords, may I assist the Minister? It is one thing a company paying a dividend if it makes a reasonable profit, but does he not agree that it is completely different if a company is borrowing heavily to pay a dividend? I ask him also to comment on this, because he has not done so yet: we are all for the leaders of these industries being properly rewarded, but they should not be given bonuses when their environmental duties fall short.

[Lord Douglas-Miller (Con)]

I entirely agree with my noble friend on that issue. Ofwat will also take forward a consultation to consider a ban on water bosses receiving bonuses when their company has committed a serious criminal breach. As part of that consultation, Ofwat will consider the criteria for a ban on bonuses. This would likely include successful prosecution for a category 1 or 2 pollution incident, such as causing significant pollution at a bathing site or conservation area.

[Lord Wigley (PC)]

My Lords, given the uncertainty of Thames Water’s finances, what are the prospects of it being able to go ahead with its scheme for water transfer from the Severn to the Thames to meet the needs of south-east England? Does that not put the capital requirement for that scheme very much in doubt?

[Lord Douglas-Miller (Con)]

The capital requirement will be considered at the next spending review, which is due this year, so we will hear more about that in due course.

[Lord Browne of Ladyton (Lab)]

My Lords, once again, your Lordships’ House is indebted to the forensic skills of my noble friend Lord Sikka. He is the one person in this House who needs no instruction about where to look for what is going on in businesses and in companies, and how important accounts are. With some assistance from him, I had a look at Thames Water’s accounts. Its accounts, directors’ reports and cash-flow statements say that it paid dividends to its parent company as follows: £37 million in 2022, £45 million in 2023, and another £37.5 million in September 2023. However, its own PR spin says that these are not dividends and that this is the way it is paying interest on its debt. That is not what the accounts are for, and the accounts are not right if that is correct. In December, a spokesperson for Ofwat said:

“Following notification that Thames Water has paid a dividend to shareholders, Ofwat is investigating whether this payment meets its licence requirements”.


The Minister is a knowledgeable man in this area, as he tells us, so he should be able to explain what is to be investigated. More importantly, does he know why Ofwat has not reported since December?

[Lord Douglas-Miller (Con)]

I also pay tribute to the accountancy skills of the noble Lord, Lord Sikka; they are very thorough. Indeed, the noble Lord, Lord Browne, has himself made an extremely good attempt at interpreting the accounts on that front. The issues around Thames Water and the dividend that it paid last year are subject to an investigation at the moment. Therefore, it would not be appropriate for me to comment on them.