Agricultural Products, Food and Drink (Amendment) (EU Exit) Regulations 2020

Lord Gardiner of Kimble Excerpts

Wednesday 27th January 2021 Grand Committee

Moved by

[Lord Gardiner of Kimble]

That the Grand Committee do consider the Agricultural Products, Food and Drink (Amendment) (EU Exit) Regulations 2020.

Relevant document: 41st Report from the Secondary Legislation Scrutiny Committee

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

My Lords, I declare my farming interests as set out in the register. The content of this SI is reserved, but a draft version was shared with devolved Administrations for comment; only minor drafting points were raised, which we addressed in full. I make it clear that these regulations do not change our policy or make new policy; instead, they principally amend retained EU legislation to ensure that the relevant regulations operate in Great Britain.

The amendments made by this instrument primarily concern geographical indications, or GIs. They also include transitioning obligations in EU wines and spirits agreements and extend to trade between the UK and the EU in wine and organic products. GIs are a form of intellectual property protection for the names of food, drink and agricultural products with qualities attributable to the place where they are produced or to the traditional methods by which they are made.

Until the end of the transition period, we operated under the EU’s GI schemes. The EU and the UK have not included a section on GIs in the UK-EU Trade and Cooperation Agreement. This means that UK GIs which were on the EU register at the end of the transition period remain protected in the EU and vice versa, but there is no automatic protection for names registered after the end of the transition period. We have instead included a review clause which allows us to agree rules on the protection of GIs in future, should we so wish. The UK retains full autonomy over its own GI regimes.

As of 1 January, the UK has had an independent, fully functioning GI regime. As the competent authority, Defra manages the schemes with the devolved Administrations and handles domestic and international applications. Guidance on the application process is online. The schemes cover spirits, wines, aromatised wines, and food and agricultural products. Examples range from Wensleydale cheese to products such as native Shetland wool. There are many more; I am sure that many noble Lords have GIs of their own that are special to them.

This instrument amends existing GI regulations to ensure that they are fit for purpose and work as intended. It also allows the UK to use bridging arrangements to continue to protect GIs from countries where a trade deal was agreed but is not yet ratified, at the end of the transition period. This will ensure that GIs already protected in the UK do not lose their protection due to a long ratification process.

This instrument also adds an additional category of GI to ensure that the Japanese GI Kumamoto rush remains protected in the UK. This is a long-stemmed grass that is traditionally dried and woven into mats in the Kumamoto region of Japan. It can be grown only in that region. This was previously protected in the EU under the EU-Japan trade agreement, but it did not fit within any of the GI product categories which the UK inherited from the EU. The addition of this category provides a clear basis on which to continue to protect the GI under the UK-Japan agreement. This does not change our policy; we are simply correcting a deficiency in EU legislation.

On spirit drinks, this instrument provides for the ongoing protection of US product names, and Mexican names once transitioned in the UK, to reflect the transitional EU agreements. It also enables the retained EU spirit drinks regulations for GIs to function correctly in relation to protection and enforcement. For wines, this instrument amends retained EU regulations that provide a basis for protecting US wine names of origin in the UK to make them operable. In doing that, it also creates the necessary basis for enforcement in the UK.

This instrument also includes several non-GI provisions. It introduces a six-month easement on the new requirement for EU wines imported to the UK to be accompanied by a VI-1 certificate. This certificate provides information on the type and analytical composition of a wine. We worked with the wine trade to assess the impacts of this certification requirement on the industry. As a result, we have introduced this easement to minimise the potential for disruption to the UK market by allowing EU imports to arrive under the same commercial documents used while the UK was a member state. New and simplified certification arrangements are set out in the UK-EU Trade and Cooperation Agreement to cover movements of EU and UK origin wines.

On organics, we have extended our recognition of the EU and EEA states as equivalent and updated their list of control bodies. We have also ensured that organic products from the EU, EEA and Switzerland are able to continue to flow smoothly into Great Britain by providing a six-month easement on the requirement for certificates of inspection for such products.

The amendments made by this instrument are essential for a smooth transition. Without them, international obligations would not be met, retained EU legislation would not be operable and vital transitional provisions would not be in place. For those reasons, I commend the instrument to your Lordships. I beg to move.

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[Lord Gardiner (Con) [V]]

Yet again, we have had a thought-provoking debate. In the time I have, I am not going to be able to address some of the more detailed and technical questions, but I shall write very fully on all outstanding points.

I thought the point made by the noble Lord, Lord Clark, at the very beginning about the importance of the protection of the public and, indeed, producers, was very important. I can certainly give the Government’s commitment to the GI system. It is a very important feature, and an indicator. All noble Lords have raised so many products, and I have no time to talk about them or many more, but the GI system plays an important role as an exemplar of our quality produce.

The noble Lord, Lord Jones, mentioned farmers who, in difficult weather are, thank goodness, producing food for the nation. All I would say is that our diet has become much more varied. Noble Lords have expressed the need for imports, and I agree with that, but may I plug the importance of eating seasonally as well? There are some very good UK products that I think are very satisfactory. We might think about that in terms of the point made by my noble friend Lady Wheatcroft about sustainability, which is about many of these things and how we work sustainably.

The other point raised by many noble Lords was about border issues. I am very conscious of that, which is why not a single day goes by, probably not a single hour, when officials at Defra and Ministers are not engaged with individual businesses. Rightly, people want to import and export between parts of the United Kingdom. No one could be more fervent in their view on that than me, and I say that particularly to the noble Lord, Lord Empey, and the noble Baroness, Lady Ritchie of Downpatrick. I will take back again the points that have been raised, as well as the points raised about the Lough Neagh eels and, obviously, jellied eels. I do not want to fall out with jellied eel consumers. I have a feeling that they have a very strong feeling about products such as Lough Neagh eels, so I take that very seriously indeed.

The noble Baroness, Lady Jones of Whitchurch, asked about time limits on bridging arrangements. There is no time limit on how long bridging arrangements last, but it would not be in the interests of either party to extend the bridging arrangements longer than necessary.

On the point of Kumamoto rush and the category, the reason why we came forward with the category was that it was very loose ended and we wanted to signify the importance of that rush in terms of the UK-Japan agreement, so I will take that back.

I should say to the noble Baroness, Lady Parminter, that I would be the first to say that we should keep the number of SIs to a direct purpose and try to co-ordinate them. Some of the provisions, including those on bridging arrangements, amending previous GI SIs, and others, were subject to negotiations concluding, so could not be raised earlier. I think that is a legitimate point.

The noble Baroness, Lady Jones of Whitchurch, asked about implementation of the trade and co-operation agreement on a piecemeal basis and whether the agreement needs to be phased in over separate pieces of legislation. Our view is that, when an agreement requires changes to legislation in a number of sectors, it is normal for these changes to be made within the relevant sectoral legislation. This ensures that those affected by them know where to find the rules, but it does not mean that implementation is unco-ordinated. That is very important.

One point that I made a note of was when my noble friend Lord Empey asked what the differences were in the compendium. All we are seeking to do is to make all parts of the United Kingdom trade freely, well and prosperously.

The noble Baroness, Lady Jones of Whitchurch, asked about the UK Organic Certifiers Group. We in Defra meet it fortnightly and, obviously, this instrument was discussed with the group. I can confirm that it agreed to the instrument.

The noble Baroness, Lady Ritchie, asked about consultations with the devolved Administrations, which have been and continue to be very dynamic. They attend the UK Organic Certifiers Group, and we regularly discuss in that forum ways in which to take the UK’s world-class standards to a further level. I will take back and write about the minor drafting points; I do not have them to hand.

I had a number of points about Northern Ireland. GB applications can now be made to the EU scheme, so long as they are first protected in GB, while Northern Ireland applications can be made directly to the EU schemes as well as to the GB schemes.

My noble friend Lord Kirkhope asked about EU GIs. The UK schemes welcome new applications from around the world as long as they are first protected as a GI in their own country of origin—there is more on that, which I shall write about to my noble friend.

The noble Lord, Lord German, asked about wine and the VI-1. The Wine and Spirit Trade Association welcomed our plans to issue an easement on the need for VI-1 certificates to accompany imports of wines from the EU, as set out in agreements. Similarly, it also welcomed the introduction of simplified VI-1 certification arrangements for the EU and UK.

There was a question on electronics. I absolutely agree that we need to find ways in which to ensure that anything that we can do digitally, we do in that way.

I should say, on eels, that nothing in this instrument prevents the sale of eels in the UK. As I have said, I shall look into that.

The USA wine trade agreement has been carried over and is in force to cover trade between the US and the UK. Again on the question of VI-1 requirement, which my noble friend Lady McIntosh and the noble Lord, Lord German, raised, we will be able to look critically at the laws that we have inherited through retained regulations to ensure that they remain fit for purpose. In due course, we will consider whether there is a case to revisit the requirement for VI-1 certification. The requirement was retained as indications were that the EU would require VI-1 forms to accompany UK exports. Furthermore, VI-1s are already established for imports of wines for other non-EU sources. We will look at that, and I shall come back to noble Lords with further details.

On the Northern Ireland protocol, NI producers will continue to apply to the EU schemes to have new products protected in Northern Ireland across the UK. To protect their new product names in GB, Northern Ireland producers will need to apply separately under the UK GI schemes, and I would of course encourage that.

I have to conclude soon. However, while on the subject of Northern Ireland, I can say to the noble Baroness, Lady Ritchie, that we have introduced an easement, as she knows. We are monitoring the situation and investigating all options to ensure smooth movements from GB to Northern Ireland.

I can take away many points from today’s debate. Frankly, in the time I have, I have not dealt with some of the technical points, but it may be better if I answer them in long form in letters. I am very conscious of some of the key points that have been made on some of the technical points on wines and other matters. However, I hope that this instrument commands support.

Motion agreed.

Fertilisers and Ammonium Nitrate Material (Amendment) (EU Exit) Regulations 2021

Lord Gardiner of Kimble Excerpts

Tuesday 26th January 2021 Grand Committee

Moved by

[Lord Gardiner of Kimble]

That the Grand Committee do consider the Fertilisers and Ammonium Nitrate Material (Amendment) (EU Exit) Regulations 2021.

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

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

This instrument has two main purposes. It makes technical amendments to the Fertilisers and Ammonium Nitrate Material (Amendment) (EU Exit) Regulations 2019, which I will refer to as the exit SI, to correct deficiencies that have arisen in light of the Northern Ireland protocol. It also applies the provisions of the retained EU law version of Regulation (EC) No. 2003/2003 to Northern Ireland, subject to modifications. This will enable the marketing of UK fertilisers in Northern Ireland, which was the original intention of the exit SI before the Northern Ireland protocol was agreed. The exit SI made in 2019 amended the retained version of EU Regulation (EC) No. 2003/2003, so it operates effectively in the UK now, after EU exit. It replaced the “EC fertiliser” label with a new “UK fertiliser” label, which will function in the same way.

The UK fertiliser regime would have operated across the whole of the United Kingdom from the end of the transition period. However, it was made in February 2019, before the Northern Ireland protocol was agreed. As a consequence of the protocol, the EU law version of Regulation (EC) No. 2003/2003 and the EC fertiliser regime it provides for will continue to apply in Northern Ireland, and the UK fertiliser regime provided for in the retained EU law version of this regulation will not. I hope it will be helpful if I say that, to remedy this, this instrument applies the provisions of the retained EU law version of Regulation (EC) No. 2003/2003 in GB to Northern Ireland, subject to modifications, in order to enable UK fertilisers to continue to be marketed in Northern Ireland.

By way of context, the regulatory framework for the manufacture and sale of fertilisers is unusual, compared to other agricultural products, as fertilisers are partially harmonised at EU level. This means that member states can operate their own domestic regulatory regimes alongside the European regulation of the EC fertiliser regime provided for in the EU regulation. Accordingly, alongside the EC fertiliser regime, Great Britain and Northern Ireland have historically operated separate domestic regulatory regimes under the Fertilisers Regulations 1991 and the Fertilisers Regulations (Northern Ireland) 1992, respectively. Manufacturers in both Great Britain and Northern Ireland are free to choose which framework they use to market their products, although they must comply with the requirements of that regime—for example, they would need to be established within the EU or Northern Ireland to sell EC fertilisers in Northern Ireland.

The key provision of this instrument is to ensure that the retained GB version of EU Regulation (EC) No. 2003/2003, which allows products to be marketed as a UK fertiliser, applies in Northern Ireland, as was originally intended in the exit SI made in 2019. Because of the partial harmonisation of fertiliser legislation, making the UK fertiliser regime applicable in Northern Ireland does not affect the continued application of the EU version of Regulation (EC) No. 2003/2003, which will continue to apply in Northern Ireland by virtue of the protocol.

This statutory instrument is important, as a common route to market across the UK for fertilisers is required so that a manufacturer in Great Britain who trades only in the UK can market products across Great Britain and Northern Ireland and use one label to do this. If products labelled as UK fertiliser could no longer be marketed in Northern Ireland, there could be significant costs for businesses in an industry with low profit margins. There are particular concerns that, without this SI, the supply of certain products that are specifically regulated under this regime—for example, DMPSA, a nitrification inhibitor—would reduce, and this could impact on the sustainability of food production. Failure to provide for this may also result in a general reduction in the supply of fertiliser products to Northern Ireland from manufacturers who are established in Great Britain and who are no longer able to place EC fertilisers on the market. It is therefore necessary to ensure that UK fertilisers can be marketed in both Great Britain and in Northern Ireland.

In summary, the technical amendments this instrument makes relating to the Northern Ireland protocol are straightforward. Under the protocol, the EU law version of Regulation (EC) No. 2003/2003 continues to apply in Northern Ireland following the end of the transition period. This instrument reflects its GB application by removing references to Northern Ireland that are no longer relevant from the retained EU law version, such as in the definitions of “appropriate authority” and “enforcement authority”. The remaining provisions in this instrument enable the marketing of UK fertilisers in Northern Ireland.

We worked with the devolved Administrations on this statutory instrument, and they have given their consent. This instrument is necessary because it makes technical amendments in light of the Northern Ireland protocol and will ensure that we can continue to operate a unified fertiliser regime across the UK. I beg to move.

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[Lord Gardiner of Kimble (Con) [V]]

My Lords, I am most grateful to all noble Lords for a compelling debate. I agree with the Lord, Lord Clark of Windermere, that it is complicated and intricate.

Clearly, we are dealing with materials that we need to treat extremely cautiously, so I wanted to take the opportunity to address the safety of ammonium nitrate and its storage. Ammonium nitrate is classed by the Government as a controlled good, which means that there are extremely strict rules on its handling in GB. Its import and handling are covered by the Ammonium Nitrate Materials (High Nitrogen Content) Safety Regulations 2020.

The noble Lord also asked about fertiliser shipped from GB to Northern Ireland and labelling, if it were to end up in the Republic. We have updated the published guidance to reflect the changes and new actions needed to market fertilisers in GB, Northern Ireland and Europe from 1 January this year, and circulated the changes to industry before publication. The Agricultural Industries Confederation published guidance for its members based on our updated GOV.UK guidance. On this basis, there is clarity over labelling and where fertilising products can be sold.

The noble Baronesses, Lady Bennett and Lady Bakewell, raised environmental issues. Again, I should like to address a key point. In having fertilisers to enhance agricultural production, feed the nation and feed the world, we need to be extremely conscious of the environmental issues. Although it is essential to maintain and, wherever we can, increase yields for both food and non-food use, fertilisers can have a significant negative impact on air quality, water quality and emissions, as well as habitats and soils.

That is why the Government are very clear about the need to uphold high standards now that we have left. This will be reflected in any new regulatory regime for fertilisers introduced under the new powers included in the Agriculture Act 2020. The powers in the Act allow for the establishment of an assessment, monitoring and enforcement regime to ensure fertilisers’ compliance with composition, content and function requirements that will be set out in regulations, and for otherwise mitigating risks to human, animal or plant health or the environment presented by fertilisers. I absolutely recognise the dynamics of what we need to do and that, as has been said, the careful monitoring of fertilisers’ use is well known by those who will use them.

My noble friend Lady McIntosh mentioned cost. The whole purpose of the GB, Northern Ireland and UK fertiliser label was to minimise manufacturing costs. She mentioned, as I have, the Agricultural Industries Confederation. It is very much aware of and content with the provisions of the original exit SI that created the UK fertiliser label. As I said, the policy objective of this SI is to maintain that common route to market across the UK in the light of the Northern Ireland protocol.

I am also very conscious of what the noble Baroness, Lady Ritchie of Downpatrick, and the noble Lord, Lord Dodds, said about the difficulties. That is why not just Defra but the Government as a collective are doing everything we can, case by case, in the Defra areas and beyond, to work with producers, hauliers and Governments to ensure that these issues are resolved company by company. I know, as will noble Lords, from the work we have done on many Northern Ireland regulations over time, of the very strong relationship that Defra has with DAERA. I register for all noble Lords, particularly those from Northern Ireland, that I am acutely aware of some of the difficulties. Yes, we want a smooth passage of trade, but we need to recognise —as we do—that there are requirements because of the protocol. We seek to ensure a pragmatic approach within the principles of the protocol so that businesses in all parts of the United Kingdom can thrive and consumers get the goods that they need and get them speedily.

The noble Baroness, Lady Jones of Whitchurch, mentioned the importance of UK standards and asked about any differences with what may be EU standards. At the moment, the retained UK fertiliser regime will adopt the same standards as the EU. That is our position. The EU is implementing a new fertiliser products regulation to improve standards, and this new law will become fully operational in July 2022. As I mentioned, we have taken powers under the Agriculture Act to ensure that we, too, can modernise our domestic system and improve standards in fertiliser regulation.

As the noble Baroness, Lady Ritchie, mentioned, there is a consultation on urea fertiliser that will close today. We launched a consultation on reducing ammonia emissions from the use of solid urea fertilisers because ammonia emissions are harmful to sensitive habitats as well as to human health, with 87% of ammonia emissions coming from farming. We need to address that, and the farming industry is very conscious of it. I do not have any further detail, I am afraid, because the consultation closed today.

My noble friend Lady McIntosh raised a point on labelling. This SI will implement a unifying label for the UK. Both Northern Ireland and GB can trade under EU regulation as long as they comply with those requirements.

On any new system of assessment under the regulations, raised by the noble Baroness, Lady Bakewell, and others, we have already started moving towards adopting conformity assessment for fertilisers, a risk-based system commonly used for manufactured products. This means that we can use appropriate testing standards depending on the risk posed to the consumer and the environment. It offers regulatory assurance for consumers that fertilisers deliver the nutrient efficiency claimed by manufacturers, but also allows us to set limits for contaminants, such as plastics, in organic products. This will ensure that products not currently regulated, such as soil improvers, will be safe for the consumer and the environment. It should stimulate both demand and development for less polluting types of fertilisers, such as biostimulants.

I also say to the noble Baroness, Lady Bennett, that we will use every opportunity we can in a new Session of Parliament to get the Environment Bill before your Lordships as soon as possible. We will be working to reduce peat. I will take that away and work on all other points that were made. As I said, the role of DAERA is extremely important, and it will be for the Northern Ireland Administration to work on these matters, but we will co-operate on matters such as the reduction of use of urea.

I fear my Whip is sending me a message that means I may have gone beyond the time allocated, but noble Lords raised some very important points. I will write fully on some of the more detailed points but, in the meantime, I commend the regulations. They are important for the whole purpose of what we want to do within the United Kingdom and working with our Northern Ireland colleagues.

Motion agreed.

Rural Landlords and Land Letting: Reform

Lord Gardiner of Kimble Excerpts

Thursday 21st January 2021 Grand Committee

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

My Lords, I start by declaring my farming interests as set out in the register. With agricultural tenancy matters being devolved, I speak from an English perspective. I express my gratitude, along with other noble Lords, to my noble friend Lady Rock for raising this matter for debate as we start the transition towards a new domestic agriculture policy—a transition that we believe will help our farmers to stay competitive and produce high-quality food, for which they are renowned, while protecting and enhancing the environment, on which a sustainable and productive future depends.

To put the importance of the debate in context, as has been said, a third of all farmland in England is tenanted, with 13% of farms wholly tenanted and 33% with a mixed tenure, both owning and renting land. This variety in land tenure and the ability to rent land flexibly is important, because it enables tenants and owners to expand, responding to market changes by renting out additional parcels of land. It also provides a route into farming for new entrants, bringing new skills and ideas into the sector.

I say to the noble Lord, Lord Clark, and my noble friend Lord Inglewood that I am fully seized of the points made about Newton Rigg. I am in dialogue with the Department for Education and I understand that feelings are running high in Cumbria.

The Government believe that a vibrant and flourishing tenant farming sector is vital. The legislative framework for agricultural tenancies must enable the development of successful farm businesses for tenants and an appropriate rental return for owners. This is how we will maintain confidence in the let sector and ensure ongoing opportunities for tenants and new entrants to land.

As many will recall, we discussed during the passage of the Agriculture Bill the importance of new entrants and the role that renting land through the county farm system has played in facilitating that. In the agricultural transition plan, the Government have set out plans for a new funding scheme to create lasting opportunities for new entrants to access land, infrastructure and support to establish successful and innovative businesses, working with county farm estates and other landowners. We have started work to develop this new entrants scheme through a co-design process, with the aim to provide further details by September and introduce the scheme in 2022.

My noble friend Lady Rock highlighted the role of the Tenancy Reform Industry Group. Defra has regular meetings with TRIG to discuss tenancy policy and legislation. I express my personal thanks to all TRIG members for their work over many years in providing expert insights and advice, but it is the responsibility of government to decide policy.

I hope everyone would agree that developing consensus is the best way forward. A number of points have been made on this. I think the noble Lord, Lord Curry, raised partnership. No contractual arrangement flourishes if one or both parties are unhappy. That is why having the confidence to let more land is key to the route to getting more entrants into the let farming sector. If confidence is undermined, what is to prevent owners withdrawing let land and reducing the opportunities we all dearly want for existing and future tenants to come into the sector?

The tenancy reforms the Government delivered through the Agriculture Act 2020 had widespread support from TRIG and other respondents to our 2019 public consultation. These reforms have helped to modernise and update the Agricultural Holdings Act 1986. They give tenants greater flexibility on when to apply for succession on retirement, modernise the suitability test for incoming tenants, and provide a balanced dispute process for tenants who would be unreasonably prevented from varying outdated, restrictive terms that might be a barrier to entering into future schemes.

The focus of these tenancy reforms is specifically on the older, 1986 legislation, not on the more modern farm business tenancies. This is because agreements under the 1986 Act were negotiated more than 30 to 40 years ago in a very different commercial and policy environment. My understanding is that, with 19,400 AHA holdings and 17,600 FBT holdings, we are seeing a reduction in AHA holdings and an increase in FBT holdings. Of course, we want modern commercial agreements, which the FBTs can provide, negotiated more recently with freedom of contract. They are reviewed more regularly, giving tenants the opportunity to renegotiate terms if that is deemed necessary. That is why the responses to our public consultation, in terms of reform of dispute provisions, for example, were very much concentrated on AHA holdings tenancies.

The Government are working with TRIG to develop the supporting regulations to implement the 1986 Act dispute reforms and to modernise the suitability test criteria for tenants who apply for succession. This will make sure that a fair dispute process is put in place that considers the interests of the tenant and the landlord and that incoming succession tenants show that they have the farming and business skills needed to build viable businesses in future. Following two recent constructive meetings with TRIG, we are making good progress with developing these regulations and, subject to parliamentary time, we intend to implement them later this year. When this focused work on the new tenancy regulations is completed, we will continue our engagement with TRIG to explore whether there is industry consensus on the need for further legislative reform and to consider whether non-legislative options might be effective.

I turn to taxation. One of the first things that I was told when I went on the Front Bench was, “Be very cautious if engaging in taxation matters and always say, ‘This is a matter for the Chancellor’”. I would say to noble Lords that, in my briefing for this debate, I was very pleased to be joined by, as well as my officials, Treasury officials. I will be passing back to the Treasury and assessing the points that have been made in this debate on taxation and I am grateful to all noble Lords for raising those matters. I recognise that the fiscal framework plays an essential role in owners’ decisions whether to let land and on the length of tenancy terms offered. However, I think that other factors are important, too, such as the size, quality and location of the land and personal motivations for owning it.

I am aware of the work that TRIG has done to investigate tax issues, suggesting that tax changes might help to incentivise the letting of agricultural land and encourage longer-term tenancies—for example, through limited income tax relief on farmland rents. The Government are committed to a fair and sustainable tax system and keep all taxes under review as a matter of course—that is the Treasury bit. The impact and potential unintended consequences of tax reform need careful analysis, as I hope everyone would agree.

For example, the proposal from the Tenant Farmers Association to limit the availability of agricultural property relief to owners who let land for 10 years or longer could result in owners instead using other ways—for instance, contract farming or taking the land back in hand—to retain the benefits of that relief. I am mindful of wanting to have the right climate for owners—I think particularly of smaller parcels of land. Unfortunately, there is a historical feeling that this is always about the big estates and small tenant farmers. I think that the opportunities for more land coming on to let will be from medium and smaller-size farmers who no longer want to farm and want to have someone, possibly a neighbour or a new entrant, coming into the industry. Relationships are again essential.

I understand the point made by many noble Lords about longer-term tenancies. It is recognised that they provide security for many tenants to invest and grow their businesses. It is also important to understand that shorter-term tenancies can sometimes be more suitable for businesses—I have heard that from certain quarters, including my noble friend Lord Taylor of Holbeach, who is engaged in a number of these matters. Short-term lets may be more appropriate for some new entrants looking to rent land on a short-term basis to gain experience without committing to long-term potential risks. Short-term lets can also be more suitable for some seasonal horticultural businesses. The flexibility over the length of tenancy and maintaining owners’ confidence in the let sector can only encourage more agricultural land into the let sector. However, I understand the points that have been made about longer tenancies and their dynamic.

Turning to ELM, raised by many noble Lords—my noble friends Lord Caithness and Lady McIntosh, the noble Lords, Lord Greaves and Lord Redesdale, and the noble Earl, Lord Devon, among others—what we are doing here is co-designing. It is essential that we work across the piece with tenant farmers and those working on common land. As part of our co-design process with industry, we are considering questions about the need for landlord consent to tenants entering schemes and the length of scheme agreements to ensure that our future schemes are broadly accessible, as well as providing the stability needed to support the delivery of public goods, such as environmental improvements. Indeed, one of the tests and trials includes six areas where landowners and tenants are working together. An example is an estate in County Durham and North Yorkshire covering an area of more than 7,000 acres. This is about a collaborative system of planning and delivering environmental management on land that encompasses a variety of farming systems and a tapestry of habitats. We want to ensure that the collaboration between tenants and owners can be supported and incentivised.

Many noble Lords asked about further legislation. I would not be straightforward with your Lordships if I did not say that the pressure on primary legislation at the moment across Whitehall is intense. Therefore, it would be wrong of me to make a promise to my noble friend Lady Rock on the timing of any further legislative proposals. We want to get through what we have said we will do with the Agriculture Act 2020 and see how that works. We want to work with TRIG and all interested parties to see how we can have a dynamic tenanted relationship and system. It would be wrong of me to say that I can promise primary legislation in the foreseeable future. I say that candidly because I simply do not have command of the legislative programme. We want to find ways to resolve the points that have been raised today so that there is a genuinely benign and dynamic relationship between owners and what I hope will be an increasing number of new entrants. That is why the work that we are doing with the county farms is so important.

A number of noble Lords raised the issue of trees. Obviously, we want to ensure, whether on owned or tenanted land, that it is the person engaged in the outcome of this, whether the tenant or the landlord, and the person who will be undertaking the work who should have the reward. Where tenants are undertaking that, of course they should be rewarded.

I am starting to get messages of concern from our gallant Whip about the time that I am taking. I assure all noble Lords that these matters are current and live. I am grateful to my noble friend for raising this important matter, as reflected by the considerable number of your Lordships who have participated in the debate, and I will follow it up with a letter in the usual manner to cover some of these important points in further detail.

[The Deputy Chairman of Committees (Lord Faulkner of Worcester) (Lab)]

As this debate has now concluded, the Grand Committee stands adjourned until 3.45 pm. I remind Members to ensure that they have sanitised their desks and chairs before leaving the Room.

Heritage Organisations: Coal Supplies

Lord Gardiner of Kimble Excerpts

Thursday 21st January 2021 Lords Chamber

[Lord Faulkner of Worcester (Lab)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper and remind the House of my interest as president of the Heritage Railway Association and vice-chair of the All-Party Parliamentary Group on Heritage Rail.

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

[Inaudible]—of the heritage sector. The legislation, which will come into force from May 2021, will end the sale of bituminous coal to households in England and lead to significant health benefits. While we acknowledge the indirect impact that this may have on the supply of coal to businesses, it is vital that the Government and the sector continue to work together to transition to cleaner alternatives.

[Lord Faulkner of Worcester (Lab)]

My Lords, I know that the Minister appreciates the value of the heritage rail sector, but how does he envisage that heritage steam will continue to have access to high-quality bituminous coal if no UK-mined coal is available after next year? Transporting coal great distances from countries such as Russia or Australia adds to CO₂ emissions and is expensive. Would it not make more sense for the mining of modest amounts of steam coal to continue in areas such as the north-east and south Wales?

[Lord Gardiner of Kimble (Con) [V]]

My Lords, the legislation that Defra is bringing forward relates to households, and therefore we are working with the sector. It is important that we work with it not only through policy development but in looking at alternatives. Also, I understand that heritage rail has taken steps to improve efficiency and mitigate emissions. Therefore, as I said in my earlier reply, it is important that we work together on this, but this legislation relates to domestic consumption.

[Viscount Ridley (Con) [V]]

My Lords, I declare my interest as someone from whose land in Northumberland coal was being extracted until last year, including for heritage railways. The Minister will know that the Government refused permission for a further surface mine at Highthorn in Northumberland, disagreeing in the process with the county council, the planning inspector and the courts. I had no interest in that project, but I know some of the men who lost their jobs as a result. Given that this country has a continuing need for 5 million tonnes of coal a year, mostly for the cement and steel industries, as well as for the heritage rail industry, and that more of it now comes from Russia than any other country, with a far higher carbon footprint, why do the Government prefer to give jobs to people in western Siberia and take them away from people in Northumberland, and to increase emissions as a result while rewarding the persecutors of Alexei Navalny and Sergei Skripal?

[Lord Gardiner of Kimble (Con) [V]]

My Lords, the National Planning Policy Framework is very clear that planning permission should not be granted for the extraction of coal unless the proposal is environmentally acceptable or, if it is not environmentally acceptable, provides national, local or community benefits which clearly outweigh the likely impacts. Clearly we are moving into a situation where in this country we are reducing the use of coal for the very important reason of human health.

[The Earl of Clancarty (CB)]

My Lords, I declare an interest as a vice-chair of the All-Party Parliamentary Group for Craft. Craft industries have long prided themselves on their commitment to a green economy. However, coal is required for the firing of certain heritage bricks which have a unique quality. Does the Minister agree that such uses, including coal for steam, are the exceptions proving the rule for the future green economy, and are necessary if we are to preserve our industrial and architectural heritage?

[Lord Gardiner of Kimble (Con) [V]]

My Lords, again, we are working across departments with the heritage sector, because we want to have a long-term future for it. However, we need to find alternative ways of securing the heritage sector while having a cleaner and greener economy and reducing emissions, which are making a significant impact on people’s health.

[Baroness Hayman of Ullock (Lab) [V]]

My Lords, we have heard concerns about the importation of coal, and I understand that some heritage rail organisations are currently importing coal, including from Germany. Can the Minister clarify how much coal is currently imported for this purpose, whether the amount is expected to increase, and what the impact of new border controls will be now that we have left the European Union?

[Lord Gardiner of Kimble (Con) [V]]

My understanding is that, of the 26,000 tonnes of coal used for heritage rail, 90% comes from four British open-cast mines, and therefore any requirements will be about negotiating a suitable ongoing domestic supply. As I said, we want to work with the heritage sector on these matters. My understanding is also that coal imports are overwhelmingly not from EU countries.

[Lord German (LD)]

My Lords, the Great Little Trains of Wales, Snowdonia, Talyllyn, Llangollen and others, are critical for the hospitality offer, yet heritage trains as a whole emit only just about half of the CO₂ that people use in their domestic barbeque charcoal briquettes. The challenge is to find a solution to this problem to keep the trains running. I note that in his responses so far the Minister has not yet offered what the potential solutions might be. So will he support research into this matter and, in particular, into whether the residue steam coal in our unsafe, above-ground coal tips can be manufactured into the lump coal needed to ensure that these trains and the jobs they support survive into the future?

[Lord Gardiner of Kimble (Con) [V]]

My Lords, I have been very clear that we are working with the heritage sector. Indeed, the legislation that relates to domestic consumption is being phased in so that we can work not only with consumers but with the heritage sector. So I reject the tone of the noble Lord’s question, because this is an area we want to work on. I remind your Lordships that we are doing this because fine particulate matter is very damaging to people whose health is vulnerable. To work on a cleaner health agenda, we need to apply our minds to how we can find alternatives.

[Lord Snape (Lab)]

Has the Minister ever travelled behind a steam locomotive? Has he no sense of soul about Britain’s steam heritage? Is he not aware that steam locomotives are temperamental creatures that depend on a certain supply of bituminous coal to work effectively and efficiently? Is he, as a member of a Government who have frozen fuel duties for the past 11 years and done far more damage to the environment than any steam locomotive, really trying to tell us that 35,000 tonnes of coal will damage the environment to such an extent?

[Lord Gardiner of Kimble (Con) [V]]

My Lords, I am sure the noble Lord heard my first reply. This legislation is about domestic consumption. In people’s houses the increase in fine particulate matter from domestic consumption has caused concern, and we will not meet our legal and binding obligations unless we attend to this. I should also say that two villages away from where I am sitting is the Mid-Suffolk Light Railway, affectionally known as the “Middy”. I am well aware of it, I have travelled on it and I enjoy it very much, but we need to work across the heritage sector, not only with the rail sector, because this is a very important health issue.

[Lord Randall of Uxbridge (Con) [V]]

My Lords, while I have genuine sympathy with heritage railways and others, such as the owners of traction engines and the like, does my noble friend agree that this should certainly not be a reason for opening any new coal mines in this country while importing the type of coal required is still possible? As my noble friend said, it is worth reminding other noble Lords that this is being done for health reasons.

[Lord Gardiner of Kimble (Con) [V]]

I have said what the National Planning Policy Framework states, and I agree with my noble friend on why we need to do this and why we also need to work with the heritage sector.

[Lord Mann (Non-Afl)]

Does the Minister not realise that if you go to places such as the north of England on a weekend and see thousands of people stood around, waiting, you know that a steam locomotive is going to be travelling through and people are waiting to view it? Does the Minister agree that there is no finer sight in this country than such a vision? Will he guarantee that it will be there for my grandchildren?

[Lord Gardiner of Kimble (Con) [V]]

My Lords, that is absolutely what we are working on with the heritage sector because we want a viable future for these great heritage assets of our country. However, I go back to the fact that this is legislation reducing and changing our requirements for domestic consumption. I fear that some noble Lords are misinterpreting that. We are working with the heritage sector because we want a long-term, viable future for it.

[The Deputy Speaker (Lord Lexden) (Con)]

My Lords, the time allowed for this Question has elapsed. I apologise to those noble Lords I was unable to call. We now come to the third Oral Question.

EU Trade and Co-operation Agreement: Fishing Industry

Lord Gardiner of Kimble Excerpts

Tuesday 19th January 2021 Lords Chamber

[Baroness Jones of Whitchurch (Lab) [V]]

My Lords, would the Minister like to join me in condemning Jacob Rees-Mogg’s flippant comment about fish being happier in the UK at a time when the fishers’ jobs are once more on the line? Does he understand the sense of betrayal they feel now that the reality of the Government’s broken promises becomes apparent? As they say, they are furious that the Government have tried to present the agreement as a major success, when it is patently clear that it is not. To begin to make amends, would the Minister like to clarify how much compensation in total will be made available to them? When will the fishers currently tied up in port or delayed in getting their fish to market start to receive the compensation they deserve for this shambles?

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

My Lords, the Prime Minister announced that £23 million of funding is being made available to support the seafood sector. It will support those parts of the sector that have suffered genuine loss, through no fault of their own, as a result of disruption and delays of seafood exports to Europe. Details will follow shortly. I would say to the noble Baroness that I think there is an uplift in quota for UK fishers equivalent to 25% of the total value taken by EU vessels from UK waters over the five-and-a-half-year period, and 15% of that uplift is in the first year, so I do not identify with her view. What we want to do is work with all parties to ensure there is a smooth passage for this very important sector, and that is what we are doing, with very regular communication and meetings.

[Lord Teverson (LD) [V]]

My Lords, I note that the one area where Brexit could have been a real success, and important to one of our important industrial sectors, has been a complete failure in its negotiation. I have two very brief questions for the Minister. First, is it true that EU fleets will continue to have unfettered access to our EEZ to fish species for which there is no quota? Secondly, given the urgency and the crisis there is at the moment for the fishing industry and its exports, have the Government called a meeting of the specialised committee on fisheries with the EU? Has it already done that to resolve these issues urgently?

[Lord Gardiner of Kimble (Con) [V]]

My Lords, on the specialised committee on fisheries, those matters are being worked through and there will be an update on that in due course. What I would I say to the noble Lord is that we have been working with industry and also, particularly, with Dutch, French and Irish officials to resolves issues with documentation, which is the key point. On the issue of the trade agreement, I disagree with him. With a 25% uplift in quota, what we want to do is to work with industry, and that is why we have said there is this £100 million fund programme to modernise fleets and the fish processing industry, precisely because we think there is a great future for UK fishing.

[Lord Kerr of Kinlochard (CB) [V]]

It seemed very odd at the time, but maybe it is just as well that the Prime Minister chose to focus on fish not finance. The City survives, while the fishing industry is on its knees. I really would not advise the laid-back Mr Rees-Mogg to repeat his uncaring quips on the pierhead at Peterhead. In my day, the UK team in Brussels Fisheries Councils always included an expert Scottish Minister. The autumn negotiations might not have ended in such a disaster if that precedent had been followed. Why was it not followed?

[Lord Gardiner of Kimble (Con) [V]]

My Lords, my experience, having been at Fisheries Councils where I have been with the Scottish Fishing Minister—and, indeed, the Welsh and Northern Irish—is the close collaboration that we have with all part of the United Kingdom as we, in this case, work towards a more successful future for fishing. All I can say is that my experience is precisely that: that there is a very close dialogue across the United Kingdom.

[Lord Holmes of Richmond (Con) [V]]

My Lords, I ask my noble friend the Minister what urgent work the Government are undertaking to roll out a digital solution to this largely paper-caused crisis. We have the technology, and it is on public record that the EU is prepared to accept digital certification, not least for capture and other requirements. If it is good enough for other nations, what digital means currently available to us can we put in to unblock the border?

[Lord Gardiner of Kimble (Con) [V]]

My Lords, we will look at all ways to improve the passage of goods from this country to the EU and for a digital solution wherever possible. I understand that there will be requirements for paperwork, but this is a sensible way forward and I am grateful to my noble friend. We should be working on this area, as we all want an improved flow.

[Lord Liddle (Lab) [V]]

My Lords, I have the greatest respect for the noble Lord, Lord Gardiner, but his answers on this real crisis in the fishing industry at the moment are inadequate. When Michael Gove introduced the Government’s negotiating strategy for Brexit, in the House of Commons last spring, he said, with great enthusiasm, that Brexit would bring tens of thousands of new jobs in fishing to Britain. Does the Minister now regret that those promises were made?

[Lord Gardiner of Kimble (Con) [V]]

My Lords, I said that there would be a £100 million programme to modernise fleets and improve and increase the fish-processing industry. I also said that the agreement involved the equivalent of 25% of the total value taken by EU vessels from UK waters going to UK fishers. This is a feature of the first section, of five and a half years, of our new relationship as a sovereign state. I am sorry if the noble Lord thinks that my answers are not adequate, but the investment we intend to undertake is because we think there is a very strong future for British fishing.

[Baroness McIntosh of Pickering (Con) [V]]

Will my noble friend join me in regretting that fish are going to rot, having made their way to a French port? Will he join me in pressing for training, so that the computer problems experienced on both sides of the channel can be resolved as soon as possible? Does he agree with me that, once again, inshore fishermen are the poor relations? They do not have exclusive access up to 12 nautical miles, as they were promised; nor have they been given an additional quota, which we did not need to leave the European Union for them to receive.

[Lord Gardiner of Kimble (Con) [V]]

My noble friend is right that we should bear down on any waste, particularly on this issue. That is why, at official and ministerial level, there have been meetings with the Dutch, Irish and French to ensure that there is flow of food from this important sector, as well as a recognition that we need to ensure that companies know what documentation is required. On the issue of six to 12 nautical miles, access by EU vessels to the UK is limited to a number of ICES areas—the southern North Sea, the channel and the Bristol Channel. We want a vibrant future for all parts, but we understand that the inshore sector is important and will work with it on this.

[Baroness Wheatcroft (CB) [V]]

My Lords, we were promised that Brexit would free the UK from EU red tape. Having seen the troubles of our fishing industry, the New York Times describes that promise as “a macabre joke.” The chief executive of the Scottish Seafood Association describes the situation now as “red tape gone crazy.” The Minister acknowledges that there will be continuing requirements for paperwork, so could he tell the House how he equates the former promises with the current reality?

[Lord Gardiner of Kimble (Con) [V]]

As I have already said, there is obviously work to be done on this side of the channel and with our neighbours to improve some early problems, which we need to resolve. Officials are working with individual companies to ensure that the situation improves rapidly, and I have already said that there will be a compensation package. Pulse trawling, for instance, is no longer permitted in the UK EEZ from 31 December. As a sovereign country, we will be able to resolve issues such as these now that we are able to make our own decisions about sustainable fishing in our waters.

[The Deputy Speaker (Lord Alderdice) (LD)]

My Lords, I am afraid that the time allowed for this Question has elapsed.

Plant Health (Amendment) (EU Exit) Regulations 2020

Lord Gardiner of Kimble Excerpts

Tuesday 19th January 2021 Grand Committee

Moved by

[Lord Gardiner of Kimble]

That the Grand Committee do consider the Plant Health (Amendment) (EU Exit) Regulations 2020.

Relevant document: 40th Report from the Secondary Legislation Scrutiny Committee

Motion agreed.

Official Controls (Animals, Feed and Food, Plant Health etc.) (Amendment) (EU Exit) (No. 2) Regulations 2020

Lord Gardiner of Kimble Excerpts

Tuesday 19th January 2021 Grand Committee

Moved by

[Lord Gardiner of Kimble]

That the Grand Committee do consider the Official Controls (Animals, Feed and Food, Plant Health etc.) (Amendment) (EU Exit) (No. 2) Regulations 2020.

Relevant document: 41st Report from the Secondary Legislation Scrutiny Committee

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

My Lords, I hope it will be helpful to your Lordships if I speak to both instruments, given that both deliver legislation addressing requirements for the movements of UK sanitary and phytosanitary goods.

The first instrument completes the suite of EU exit amendments set out in the Official Controls (Animals, Feed and Food, Plant Health etc) (Amendment) (EU Exit) Regulations 2020, which were debated on 2 December and came into force on 31 December. As with the earlier official controls instrument, this further instrument amends EU retained regulations governing official controls on imports to Great Britain of animals, animal products, plants and plant products, including food and other imports relevant to the agri-food chain.

The EU regulatory structure being retained and made operable by these amendments is complex and extensive. Due to the intricacy of the amendments required and a requirement set by the European Commission—that we should make and publish the first official controls instrument before mid-December, as a condition of it considering listing the United Kingdom as a third country for export to the EU—we took the decision to divide the necessary legislation into two instruments.

The earlier official controls instrument focused on operability amendments to the main body of EU official controls regulations. The instrument before your Lordships today makes similar operability amendments to more than 30 separate tertiary regulations, covering procedural aspects of the official controls regime. For example, Part 3 of the instrument amends the EU tertiary regulation governing the information management system for official controls, known as IMSOC. This amendment removes references to complying with EU-wide standards, which are mandated to enable member states to integrate their IT systems across the EU as a whole. The amendments do not change the policy requirement for the UK to maintain computerised information management systems to the standard necessary to deliver official controls information and processes.

This legislation ensures that we can continue to deliver robust, effective controls and checks on all food, animal and plant imports. As previously announced, we have now started to phase in border controls on imports from the European Economic Area. Our purpose is to ensure that, without compromising our biosecurity, we maintain the flow of import activity at the border and give business and industry longer to prepare for the full controls regime. Phasing is a temporary, pragmatic step to support international trade and mitigate border disruption, made necessary by the unprecedented impact of Covid-19.

From April, pre-notification and health documentation will be introduced for imports of EU products of animal origin and for all regulated plants and plant products. From July 2021, we will have controls in place for all imports of European Union SPS goods.

I turn to the second instrument, the Plant Health (Amendment) (EU Exit) Regulations 2020. Delivering unfettered market access for Northern Irish businesses moving goods into Great Britain is one of the key commitments in the Northern Ireland protocol and the United Kingdom Internal Market Act. The measures in this instrument reflect those commitments. They specify the mechanism to allow regulated plants and plant materials to move from Northern Ireland into Great Britain. This instrument does not introduce any policy changes.

The purpose of this instrument is to protect biosecurity and to support trade by ensuring that effective phytosanitary controls continue to operate between Northern Ireland and Great Britain, and within Great Britain, in relation to Northern Ireland qualifying goods. The instrument makes amendments to retained EU law to allow movements of qualifying goods into Great Britain under an EU plant passport. This means that for Northern Irish businesses trading with Great Britain nothing will change compared with the situation before 1 January.

Once in Great Britain, an EU plant passport can continue to accompany the qualifying goods, but an authorised operator will also have the option, as for other regulated plants being moved in Great Britain, to replace the plant passport with a UK plant passport where appropriate. An EU plant passport on qualifying goods may be replaced by an authorised operator if they choose to replace the plant passport for business reasons—for example, to include their own business details—or split a consignment where each trade unit, be it a pot, box, trolley or similar, is not already covered by an individual plant passport. In these circumstances, the provisions allow GB operators to replace the original EU plant passport with a UK plant passport if the characteristics of the qualifying goods have not changed, but they also ensure that the traceability requirements in relation to the goods are maintained. Provision is also made for the goods to be assessed against GB plant health standards where these are different from those of the EU, and for the authorised operator to have the option to issue a UK plant passport where the goods are assessed as meeting GB plant health requirements.

Under the terms of the Northern Ireland protocol, Northern Ireland will maintain alignment with the EU plant health regime rather than that of Great Britain. This instrument makes amendments to allow identification of qualifying goods on the GB market to ensure traceability in the event of any biosecurity issues arising which need to be addressed.

The format of UK plant passports is amended to include a country code of GB(NI) for all qualifying goods where replacement UK plant passports are issued once within GB. This will allow the goods concerned to continue to be identified as qualifying goods and will facilitate effective enforcement.

Devolved Administrations in Scotland and Wales have formally consented to both instruments and the Northern Ireland devolved Administration have also consented to the plant health instrument.

The basis of these instruments—and my concern—is to protect biosecurity, which is of supreme importance to the Government and to all, as well as to deliver on our commitment to provide unfettered market access for Northern Ireland. I beg to move.

--- Later in debate ---

[Lord Gardiner of Kimble (Con) [V]]

My Lords, this has been a very interesting debate, and I thank all noble Lords. Inevitably, with the time factor, there is much that I would like to say. I am going to send a substantial letter, and I will include the Government’s response to the points made by Friends of the Earth, because then one can see some of that in context. But I will run through some of the points made by noble Lords.

The noble Lord, Lord Rooker, asked about reference laboratories. Defra’s global animal health team has worked closely with the UK CVO, the devolved Administrations, the Pirbright Institute, Cefas, the APHA and the Agri-Food and Biosciences Institute—AFBI—in Northern Ireland to ensure that the UK’s animal health national reference laboratories are prepared for withdrawal from the EURL. The noble Lord also asked about vet training. Defra is working with port health authorities, the APHA and the Food Standards Agency to ensure that recruitment and training of the additional staff required is completed for each stage of the new import regime.

My noble friend Lord Caithness asked about communications on the work of the plant health risk group. This group publishes all pest risk assessments on the UK Plant Health Information Portal. The noble Baroness, Lady Hayman, asked about, on plants, the definition of “acceptable level”, and I should say, because these are matters of great importance, that the UK intends to ensure that its SPS regime remains appropriate to address the risk it faces. Defra has a dedicated team of specialists, plant health risk analysts and managers working with the devolved Administrations.

I should also say to the noble Baronesses, Lady Bakewell and Lady Bennett, and to the noble Lord, Lord Rooker, that the UK plant health risk group identifies, assesses and manages plant health threats. As part of the process of withdrawing from the EU, we have bolstered this group. The plant health risk group includes key experts from Defra and the devolved Administrations, and its outputs are published for scrutiny and comment and to help information making. I shall take back some of the points that have been made about how best to communicate that.

I agree with the noble Lord, Lord Rooker—affirmative and negative—and we now and again have discussions about this in the House and with legislation. We believe that many of these issues are technical and many of the needs we have to face are where speed is of the essence, but that is why we said to Friends of the Earth, and I will say now, that we thought it was appropriate to have that measure. But I will send all the details of Friends of the Earth’s comments to noble Lords.

I should also say to my noble friend Lord Caithness that, on the issue of the Northern Ireland back door, everything from the rest of the world coming through either Northern Ireland or the Republic of Ireland must complete border checks in the first place they enter—either the EU or Northern Ireland. We therefore believe that there is no increased risk compared with the position before the end of the transition period.

On diseases, whether they are in Ireland or here—or, indeed, in separate parts of Great Britain, where we have pests and diseases—we have our own systems, which ensure that we bear down so that we do not allow the spread of pests and diseases. I place great importance on that.

Another point was made about communications. Again, there were issues here. I understand why, in a period of change, it is essential for all businesses that communication is speedy and any necessary updates are made speedily. We have maintained regular engagement with industry on post-transition planning, both with individual operators and through key stakeholder groups. We have undertaken a series of feasibility sessions with more than 300 participants, and equivalent export sessions. Communications, especially regarding Northern Ireland-GB trade, have been shared with the Plant Health Advisory Forum as well as with key stakeholders such as the Horticultural Trades Association, the National Farmers’ Union and the Fresh Produce Consortium.

That work must continue. I am absolutely aware that there will be issues that continue and need to be resolved for people. I agree with the noble Lord, Lord Bilimoria, that we need to resolve these matters pragmatically and quickly. Speed is of the essence at both ministerial and official level. I know from talking to the Secretary of State and the farming and fisheries Minister only yesterday that all these matters are being addressed daily. Whether it is discussions with the French, the Dutch or the Irish—as noble Lords may have heard about during the exchange on fish—we need dialogue to raise all these points.

On antibiotics, I am grateful to the noble Lord, Lord Clark of Windermere. Resistance to antibiotics is of huge imperative for human and animal health, which is why I am proud that we have seen in this country significant reductions in the use of antibiotics in the animal world. That particularly goes for farmed animals; we must continue that through improved husbandry, vaccines and research. On that point— I picked this up only in the paper, so I caveat it—I noticed that, only today, the University of Oxford has made a significant investment in antibiotics. This is where that science hub, of which we should be proud and where we need to invest, will be an important part of our global approach.

I understand what my noble friend Lady Fookes said about the technicalities of changes to passports. I will write to her so that, in some detail, my noble friend and I can work together on why these changes are happening and why we need, again, to work pragmatically on these matters.

I say to the noble Baroness, Lady Bakewell: yes, by definition, these regulations apply to both food for humans and feed for animals. Again, that is really important. There is specific reference to animal feed in these regulations.

I say to the noble Baroness, Lady Hayman, on the infrastructure of border control posts, that as of 13 January, Defra has approved expressions of interest for 29 new capacity BCP applications from providers in England and Wales. These have been passed to APHA to progress. We are currently aware of expressions of interest from 14 Scottish BCPs.

The noble Lord, Lord Rooker, mentioned recruitment, which is also very important. We are working with port health authorities, the APHA and the Food Standards Agency to ensure that the recruitment and training of the additional staff required is completed for each stage of the new import regime.

On computers, I should tell my noble friend Lady McIntosh that I am not very good with IT. As a general rule, we never use traces for parts. We will therefore continue to use the existing national IT systems of eDomero and PEACH. Indeed, new systems—IPAFFS and ECHO—will replace eDomero later in the year. Again, I agree that it will be imperative that the changes we bring forward are communicated early and that businesses are comfortable with them because—again, I agree with the noble Lord, Lord Bilimoria, here—we want to minimise burdens in the changes that will take place.

There were expressions of concern about Northern Ireland. I agree that we always want to take any concerns about that part of the United Kingdom very seriously. My understanding as of today is that the flow of goods between GB and Northern Ireland has been smooth—and remains so—and supermarkets are reporting healthy supplies into their Northern Ireland stores. Supermarkets and other authorised traders are exempt from certification requirements for three months. The Movement Assistance Scheme provides detailed online guidance for traders, a helpline for practical advice and reimbursements to cover the costs of certification. We will work with businesses because they need to be aware and need to do a lot themselves, and we want to be a helping hand rather than a heavy hand in all these matters.

The noble Baroness, Lady Hayman, made points about communication and the timescale of performance. I will send a note about all that because those things are very important.

On the derogation of neonicotinoids, it was an emerging authorisation with very considerable requirements for not using other crops thereafter, so it was a very distinct emergency derogation.

I much regret that my time is up, unfortunately, when there is so much more to say. I will therefore write fully to noble Lords.

Motion agreed.

Environmental Land Management Schemes

Lord Gardiner of Kimble Excerpts

Monday 14th December 2020 Lords Chamber

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

My Lords, I declare my farming interests as set out in the register. Plans for the ELM national pilot are progressing at pace. The pilot will build on the excellent work of 72 ongoing tests and trials, covering a wide range of sectors and geographies, including uplands, commons and tenant farmers. The pilot will extend over time. By 2022, it will cover all three components of the environmental land management scheme.

[Lord Greaves (LD)]

My Lords, I refer to the recent document, The Path to Sustainable Farming: An Agricultural Transition Plan, which sets out some of the ways in which this is going to be done. It is very welcome, although still very vague and lacking in the detail that farmers and lots of other people want. However, in all the areas—the three tiers of the sustainable farming incentive, local nature recovery and landscape recovery—certain public goods are almost completely absent. Those are the questions of public access and public education, particularly for young people. Will the Minister give a commitment that, in the national pilot that is going to be produced, building on the tests and trials, these matters will be given a prominent position in all three areas of the scheme?

[Lord Gardiner of Kimble (Con)]

My Lords, as we said in consideration of the Agriculture Bill, access will be part of the schemes, and work is under way in those areas. I look forward to working with your Lordships to ensure that there is a rollout of not only the environmental advancements but access where it will have considerable benefits for people.

[Lord Colgrain (Con)]

Can the Minister please confirm that all the information gathered from the ELMS pilot tests and trials will in due course become available to the public? Can he also indicate when sufficient information will become available about eligibility for tree planting under the schemes, given that we are already half way through this planting season?

[Lord Gardiner of Kimble (Con)]

My Lords, on the tree policy, anyone signing up to a grant agreement to plant woodland now will not be unfairly disadvantaged when ELM is introduced. It is very important that we proceed with planting trees. I think my noble friend referred to transparency. Yes, the whole point about the pilot is to be clear about learning which areas work well and which do not. This is so that, when we roll out ELM in 2024, all of these features will mean that it will work satisfactorily and well.

[Lord Curry of Kirkharle (CB) [V]]

My Lords, as the Minister is aware, many family farms in traditional livestock areas are going to find the transition from the current supported system to the new ELM scheme quite a challenge. Will he confirm that, in the pilots, there will be a specific targeting of livestock farms and that they will explore the challenges that these livestock farmers are likely to face?

[Lord Gardiner of Kimble (Con)]

My Lords, in brief, yes—but in the tests and trials it is very important that, for instance among tenant farmers, 62% were upland tenant farmers. We are working in areas where there is a very strong livestock farming tradition. We want that to continue, and that is why the tests and trials will be very important as we then move towards a national pilot, which will obviously include livestock farmers.

[Baroness Mallalieu (Lab)]

My Lords, I remind the House of my farming interests, as set out in the register. Since a high level of take-up is crucial to the success of the ELM scheme, will the Minister undertake not to repeat the errors of the countryside stewardship scheme, but make this one simple to join, flexible and, most importantly, with payment rates that are commercially attractive not just to the large-scale arable land manager but to small and medium-sized permanent pasture farms?

[Lord Gardiner of Kimble (Con)]

My Lords, I am a supporter of pastoral farming and can certainly confirm that the work we are doing, particularly the national pilot and the tests and trials, is to ensure that the payments will be fair but also attractive for farmers to take up on a wide participation. Clearly, our environmental goals cannot be achieved unless there is wide participation.

[Baroness Bakewell of Hardington Mandeville (LD) [V]]

My Lords, the Government are rightly setting great store by the environmental land management scheme to protect and enhance the countryside, and to increase biodiversity. However, the NFU has begun a surreptitious campaign to relicense the use of neonicotinoids on farmland. This tactic is not likely to encourage the public to support the NFU’s “Back British Farming” campaign. Does the Minister believe that the NFU campaign is in line with the government’s ELMS biodiversity agenda?

[Lord Gardiner of Kimble (Con)]

My Lords, as to any consideration in emergency cases of neonicotinoids, we are always guided by the best scientific assessment available. We will continue to do that and if there was an emergency application, it would be considered according to the science. Obviously, integrated pest management and all those things is another area where advancing the environment is absolutely key.

[Baroness Jones of Whitchurch (Lab)]

My Lords, given that the rollout of the ELMS pilots is happening later than we would wish, can the Minister confirm that any money not spent in one year will be rolled over to the next, so that farmers will not be disadvantaged by any delays?

[Lord Gardiner of Kimble (Con)]

My Lords, the whole purpose of the reductions in direct payments is that they will remain within the agricultural pot. I confirm that any surplus, if there was one, would be part of an agricultural budget.

[The Earl of Shrewsbury (Con) [V]]

My Lords, I refer noble Lords to my entry in the register. My noble friend will be aware of the excellent work carried out by the Game & Wildlife Conservation Trust over many years and in many areas, advising on land, habitat and a wide range of other matters within the environmental umbrella. Is not that organisation the obvious choice to advise Ministers on the administration, sustainability, development and efficacy of ELMS in the future?

[Lord Gardiner of Kimble (Con)]

My Lords, it is an excellent organisation and I can confirm that it is among a number of bodies engaged in tests and trials.

[The Earl of Sandwich (CB) [V]]

My Lords, does the Minister agree that some farmers, especially new entrants now receiving direct payments on arable land or pasture, could miss out after 2024? This could be if the land, as he says, is unsuitable for further stewardship, sustainable ELMS improvements or rewilding. Will they have to leave farming or will they, in that case, receive some form of compensation?

[Lord Gardiner of Kimble (Con)]

My Lords, I may need to look at Hansard to help the noble Earl. The new entrants’ support scheme, which we want to encourage, begins in 2022. The noble Earl may have been talking about retirement lump sums, but I think I had better get back to him as I was not quite sure of his question.

[Baroness Young of Old Scone (Lab) [V]]

My Lords, what measures will the Government put in place to ensure the environmental standards that farmers receiving payment under the sustainable farming incentive scheme will have to meet will be higher than the standards already obligatory through legislation or cross-compliance, and that the scheme will be properly monitored to make sure that they are delivered? There is a slight feeling developing that there is a risk that the sustainable farming incentive will be watered down to become simply a financial support scheme for farmers—a sort of basic farm payment in disguise.

[Lord Gardiner of Kimble (Con)]

My Lords, I can confirm to the noble Baroness that, while clearly we need to safeguard public money, we also think that the bureaucracy involved in the CAP was not proportionate. We want to work collaboratively with farmers but, clearly, we also want to ensure that there is delivery of the environmental benefits that will and must be engaged by these schemes.

[Lord Teverson (LD)]

My Lords, in a very helpful reply to me on a recent Written Question on ELMS and advisory services, the Minister said that the Government would set up an institute for agriculture and horticulture. I welcome that, but will they locate that institute in Cornwall, which is such an excellent example of horticulture and farming?

[Lord Gardiner of Kimble (Con)]

My Lords, I will take that back to the Secretary of State.

[The Lord Speaker (Lord Fowler)]

My Lords, the time allowed for this Question has elapsed. We now come to the fourth Oral Question.

Agricultural Transition Plan

Lord Gardiner of Kimble Excerpts

Tuesday 8th December 2020 Lords Chamber

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, I welcome the Statement on the agriculture transition plan. There is much to be commended in the document, which sets out some of the detail that was absent from the Agriculture Bill. However, it is clear that many aspects of the plan are still in a state of flux and are being worked out as the implementation begins.

The document covers the period of 2021 to 2024, although the changeover from direct payments is scheduled to run for seven years. Farmers have been heavily dependent on area-based subsidies and it is welcome that these will reduce on a gradual basis. Next year, the reduction in basic payments of £30,000 will be 5%, followed by a further 15% reduction in 2022 and 2023, and 50% by 2024. For those with payments of over £150,000, the reduction will be 70% by 2024. This is a significant reduction and it is unclear whether it will be replaced by the three components of the Environmental Land Management scheme, especially since the landscape recovery component will not commence until 2024.

Can the Minister reassure us that farming incomes, which will become increasingly dependent on environmental measures, will be capable of sustaining both farmers and their families? I welcome the fact that all farmers will be eligible to apply for the first component of the sustainable farming incentive scheme. This is a step in the right direction in order to gradually introduce some farmers to the Government’s environmental agenda. However, there is no detail of how this will reward family farmers financially. The move by the Government to make all farms financially viable by the end of the transition period will need to be monitored very carefully, as some will see it as a leap of faith in the dark.

There is considerable mention of the environmental measures for which the Government will provide payments, including establishing animal health and welfare pathways. However, there is very little in the document that relates to food. Moving farmers from their previous way of working to a new environmental basis will be successful only if they are also able to produce food, whether in the form of animals or horticulture. Does the Minister agree that food production needs to be at the forefront of the reason for agriculture?

I welcome the scheme to help farmers who wish to exit from agriculture. Can the Minister give details of what the payments will be for this section of the scheme? Will it be funded from the £1.8 billion earmarked for agriculture over the next three years? Can he give reassurances that the land and farms thus released will be reserved for new entrants into farming? If the Government’s aim to transform our agriculture is to be realised, it will be vital that new entrants are given first preference for the farms of those who are exiting the sector.

The Government are clearly still at the development stage of their thinking on environmental land management reforms, and they promise to adapt the components as they go along. If some do not work, they will be altered and amended to improve them. This is to be welcomed but it does not provide certainty for farmers. Farming is not a short-term activity; it takes planning ahead and capital investment. The Government are looking to the private sector to help to finance some of their components, but the private sector is unlikely to come forward if it feels that the Government may be likely to move the goal- posts half way through the scheme. Can the Minister give reassurance that the three components of the Government’s agriculture policy will be fully tested before farmers are asked to commit their livelihoods to them?

The Government expect the environmental land management scheme to deliver the benefits of England’s peat strategy by paying for sustainable peatland management and restoration. Can the Minister provide the House with some more detail on exactly how and when that will be achieved?

I turn to the tree health pilot. It is vital that we protect our iconic trees from pests and diseases, which have decimated our hedgerows and forests in the past. There is evidence that huge numbers of saplings have been planted without any real sense of how they will be cared for and nurtured into adult trees. Can the Minister give reassurance that the thousands of trees that the Government quite rightly want to see planted will be the correct indigenous species to the area in which they are planted? As many as possible must survive to become the forests that the country will need to reach its zero-carbon targets.

I welcome this transition plan and look forward to more detail of the schemes to come, and to the Minister’s response.

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

My Lords, I declare my farming interests, particularly—as the noble Baroness, Lady Jones of Whitchurch, referred to—in a family farm. I therefore understand the importance of more detail. I also understand that change can be daunting, and therefore the importance of advice and guidance on what is a partnership. This will work only if the Government and other bodies working with landowners and farmers of all tenures and sizes, across the country, work together.

Although I am not permitted to repeat the Statement, I will say that my honourable friend the Secretary of State said:

“We want this to be an evolution, not an overnight revolution. That means making year-on-year reductions to the legacy direct payments scheme and simultaneously making year-on-year increases to the money available to support the replacement schemes.”


In a sense, that is my first response to the point about reallocation. It is very important that that is seamless. The first reduction is 5%, which is in the scheme because, very often, there are currency exchange rate fluctuations. That is precisely why, when it comes in in December 2021, there will be a range of other schemes and so forth, which I will elaborate on.

Among other things, there is more detail to come because it is absolutely essential that we co-design all of these schemes with farmers—the people who are going to have to work through them. That is why, picking up the point of the noble Baroness, Lady Bakewell, on new entrants and retirement, we want to co-design these schemes so that they can enable farmers who wish to retire to do so, but we also want to get it right for new entrants. The new entrants support scheme will therefore be developed as a co-design. We are working with organisations that have the capacity and interest to provide lasting opportunities; we want this to be a success to support the next generation. We will support the development of the detailed eligibility criteria through a consultative co-design process, starting by the end of 2020 and concluding by September 2021, with a view to introducing a scheme in, for instance, 2022.

It is very important to say that this is money within the agriculture budget, and it will be retained as part of the work that we want to do. It is money that we promised through our manifesto pledge and we will retain that amount of money.

The issue of uplands has obviously come up in our consideration of the Agriculture Bill. As I have said before, upland farmers are very well placed to benefit from environmental land management, which is going to be very important. In addition to other policies proposed in the agricultural transition plan, we are proposing a specific and time-limited package to support farmers and land managers so they can work with protected landscapes to deliver environmental outcomes. This scheme will deliver funding through the protected landscape bodies to support farmers—particularly upland farmers, 75% of whom live and work in protected landscapes —to make improvements in the natural environment and cultural heritage.

Clearly, long-term financial support under the productivity schemes, in reference to the farm investment fund, will be very important in incentivising and supporting the purchase of equipment, technology and infrastructure—for example, the farm equipment and technology fund and the farming transformation fund. We will work to help with on-farm water storage infrastructure precision. Agriculture equipment is also going to be so important in reducing chemicals and the impact on the environment.

Again, I emphasise the importance of food production, which will be an absolutely essential part, and will remain so, of this dual purpose. With 70% of land farmed in this country, we need to ask farmers to produce excellent food for us at home, and that will be assisted by the productivity grants that will start to come in next year. Work is under way on that and on ensuring that, in the long term, there is a very strong business profile for the production of food. If we remember, the fair dealings provisions that we worked on together also play their part in ensuring that farmers get a fair price and a fair deal for their products.

I think that the interconnection of the environment is an important feature. There are three components. We want a large proportion of farmers to join the sustainable farming incentive early on, as part of moving to the full rollout of ELM in 2024 and, before that, to national pilots. It is all to engage farmers in that work.

It is absolutely right to also mention the work that we are going to undertake on the tree health pilot. Again, eligibility is still under development. We know that we all benefit from trees, woodland and forestry. Eligible participants will be invited to apply for the pilot based on confirmation by the Forestry Commission of pest and disease issues on their land. If a land manager is eligible for a countryside stewardship tree health grant, they are unlikely to be eligible for a tree health pilot. We want to ensure that this makes a contribution, as all the ELM points are about more tree planting.

A point was made about the internal market. Another important element of the United Kingdom Internal Market Bill is that it will guarantee that companies can trade unhindered in every part of the UK. I have to say again that that Bill will not lower standards. The UK has some of the highest and most robust standards on goods in the world.

We have a strong future for agriculture and horticulture in this country, which have a dual purpose of food production and enhancing the environment. The work and responsibility of Defra is to ensure that farmers have the detail of the schemes. That is why work is already under way on codesigning them. Farming has a strong future, which we must ensure.

[Baroness McIntosh of Pickering (Con) [V]]

My Lords, I welcome the Statement and pay tribute to my noble friend for his patient and painstaking approach during the passage of the Agriculture Bill—now the Agriculture Act. I will focus in particular on how all three strands of support outlined in the Statement and White Paper are more of an environmental charter than perhaps sustainable farming and a move to food production, with potentially less reliance on imports.

I press my noble friend to understand the implications for upland farmers. He said that they would be well placed to benefit from land management systems, but how will that be when they do not own the land? Some 47% of farms in North Yorkshire are tenanted, so I would like to understand how this will be beneficial to them. Many have a bent towards livestock farming, at which they have been very successful, but they do depend on the current stewardship and payment schemes. Going forward, I would like to know that a heavy emphasis on food production will continue, so that farmers who do not own but tenant the land will continue to benefit from the proposals for sustainable farming set out in the Statement today.

[Lord Gardiner of Kimble (Con)]

I thank my noble friend. We have worked together on these matters, which is why I go back to the importance of codesign in the tests and trials. We have contracted 72 tests and trials involving 5,000 farmers and land managers. We have nine tests and trials in upland areas: three are taking place across multiple regions, two in the south-west, two in the north-west, one in the West Midlands and one in Yorkshire. We are working with a total of 811 farmers and land managers. Our portfolio of tests and trials involves at least 76 tenant farmers, of whom approximately 62% are upland tenant farmers.

Clearly, we want to ensure that there is a vibrant tenanted sector in this country. I am well aware of the importance of the uplands. I might diverge from my noble friend here. If we had more time, we could go through the many schemes that are coming forward, whether for owner occupiers or tenants, where productivity grants and environmental schemes will be extremely valuable, whatever the tenure. We want to ensure that these schemes are of value to farmers across the piece as they seek to produce excellent food and enhance the environment for us.

[The Lord Bishop of St Albans [V]]

My Lords, I declare my interest as president of the Rural Coalition and pay tribute to the Minister, who has worked so hard on getting this through. In the ELMS policy discussion document, Her Majesty’s Government recognised the bureaucratic burden that the CAP had placed on farmers and administrators. We were optimistic that the rollout of rural broadband would help a great deal, although the comprehensive spending review seems to have drawn back, and many people in rural areas are deeply concerned about how these new processes will be worked through. Can the Minister outline the plans for the ELMS application process and how it is intended to reduce bureaucratic constraints? Can he assure the agricultural community that there will be adequate helplines staffed by those who have been fully trained in these new processes?

[Lord Gardiner of Kimble (Con)]

My Lords, broadband and mobile connectivity in the countryside is clearly very important, which is why the Chancellor announced the first £1.2 billion, as I recall, of the £5 billion scheme that we wish to roll out. Clearly, this is a project of huge importance in rural areas. As the Minister for Rural Affairs, I can assure the right reverend Prelate that I am constantly in communication with DCMS about this.

The right reverend Prelate is right in using word “bureaucracy”. That is why we have wanted to simplify the BPS and, as we move forward, remove some of its most complex aspects by removing greening rules and improving arrangements for cross-border farmers, and removing the complicated rule that required farmers to claim payments on their entitlements every two years.

I understand the frustration about whether there should have been more detail but, in our quest for a less bureaucratic ELMS—a less bureaucratic arrangement —I emphasise that we must co-design these schemes with farmers so that the farmer sees it is as their scheme, not the state scheme. We want to make sure that it is not bureaucratic. The advice, support and guidance that will be available to farmers will ensure that, while there will undoubtedly always be worry, they get a helping hand rather than a heavy hand, so that they understand what schemes are available and, I hope, will apply for them and be successful.

[Baroness Parminter (LD) [V]]

My Lords, the Statement refers to a modern approach to regulation. When will a formal timeline for farm regulatory reform be published so that taxpayers can have confidence that this new approach genuinely delivers public goods for public money?

[Lord Gardiner of Kimble (Con)]

We want to ensure accountability and value for money; we think that the situation has been unduly draconian under previous regimes. This came up with regard to regulatory models in the health and harmony consultation and, indeed, in the Dame Glenys Stacey review. There are key improvements that we can make next year: increasing the use of warning letters instead of resorting always to penalties, introducing a greater range of more proportionate penalties for some breaches, improving inspection experience and simplifying, for instance, the cross-compliance guidance. Of course, all this is predicated on ensuring that there is value for money. We will be consulting on this so that we get the appropriate regulatory regime and can ensure that the taxpayer—and anyone else—realises that not doing the right thing has consequences. However, we think that the previous regime was not proportionate.

[The Duke of Wellington (CB) [V]]

My Lords, as before, I declare my agricultural interests as detailed in the register. I have been most interested by the exchange this evening and, as other noble Lords have done, I commend the Minister for his total commitment to this new government policy.

My concern remains, as it always has been, for the small family livestock farm, and I have not yet heard enough to convince me that this matter is being sufficiently taken into account. In particular, I am not sure how these small farms can be sustained in the intervening period between now and the introduction of the environmental land management schemes in 2024. I am not as confident as the Minister that they will find it easy to adhere to either a widened countryside stewardship scheme or the sustainable farming incentive. And, of course, their income will be cut in 2021 by 5%, rising by 2024 to a cut of 50%, and we should never forget that the small livestock farms depend almost wholly on this taxpayer support.

As the Minister mentioned, they will undoubtedly need a great deal of advice on how to transform their businesses. It is, I fear, an uncomfortable fact that these small livestock farms in England will not be as well treated as their counterparts in Scotland and Wales, where the reduction in the basic payment will come later. I therefore ask the Minister to consult his ministerial colleagues as to whether more cannot be done to support small family farms in the next two to three years, as they are such an important part of so many rural communities in this country.

[Lord Gardiner of Kimble (Con)]

I agree with the noble Duke that the small family farm is an intrinsic part of our landscape and our rural culture. That is why it is important, on taxpayer support, that I should quickly run through the opportunities starting next year. Applications for new countryside stewardship agreements will open from February to March 2021. The farm resilience scheme will open in June 2021. The farming investment fund—equipment, technology and transformation—will open in December 2021. I mention those schemes in particular because obviously, as part of the work we want to do to ensure enhanced productivity, all farmers will be able to apply for them next year. With the countryside stewardship and the sustainable farming incentive, I think that upland farmers and small farmers are well placed to join. Further information is coming out on the sustainable farming incentive national pilot in spring 2021.

It is very important that advice and guidance is given, and I said in an earlier reply that that is part of what we will be doing to ensure that there is a vibrant future for small and livestock farms, not only in producing food but in their custodianship of the land, which I think the pastoral system has been very good at.

[Baroness Stuart of Edgbaston (Non-Afl)]

My Lords, a lump-sum exit scheme is envisaged, and it is assumed that this will bring in new entrants, because new holdings will become available. I am not sure I share the Minister’s confidence that that on its own will bring new entrants into farming. But one thing is for certain: we will need a skilled workforce. Can the Minister assure the House that he is talking to colleagues in the Department for Education, which is in the process of publishing a White Paper on further education apprenticeships, so that they will take into account the needs of agriculture in the years to come?

[Lord Gardiner of Kimble (Con)]

I wish that the noble Lord, Lord Curry of Kirkharle, was here because we have been working very closely on the skills leadership group and the imperative, as the noble Baroness has said, of having a skilled workforce as we enhance technology and innovation. Appropriate skills and the skills of countryside management are important. We need a range of educational opportunities at all levels, whether at agricultural college or in apprenticeships; the whole range is very important. This is an area where we in Defra are in touch with the department, because it is very important there is a skilled rural workforce now and in the future.

[Baroness Ritchie of Downpatrick (Non-Afl) [V]]

My Lords, reference has already been made to devolution settlements. I wish to refer to the ability of Northern Ireland to diverge from these ELM arrangements in order to meet the needs of our own localised system of agriculture, in terms of different farm patterns, land-leasing arrangements and now, of course, the operation of the Northern Ireland protocol. What can the Minister advise about his ongoing discussions with the Minister in Northern Ireland regarding the ability to diverge from these arrangements to ensure the proper delivery of good farm management for upland and lowland farmers?

[Lord Gardiner of Kimble (Con)]

I understand that today the co-chairs of the EU-UK joint committee have announced their agreement in principle on all issues with regard to the protocol on Ireland and Northern Ireland. I think this will have some impact on some of our areas, and further details will be given. I believe that the Chancellor of the Duchy of Lancaster is making a Statement tomorrow. I put that in the context of the recognition that agriculture is devolved. If one remembers, we included provisions in the Agriculture Act respecting the devolved arrangements of all parts of the United Kingdom, the importance of ensuring that Northern Ireland can make its own provisions as a devolved part of the UK and respecting the protocol on Ireland and Northern Ireland. Our manifesto pledge was to maintain the current annual budget to farmers, and that would mean that the total farm support provided to Northern Ireland farmers was £330 million. It is within the scope of the Northern Ireland Administration to ensure that they have the policies that they would wish for Northern Ireland farmers.

[Lord Inglewood (Non-Afl) [V]]

My Lords, I must draw attention to my agricultural interests in the register. Like all other speakers, I welcome the publication of the agricultural transition plan, but, like them, I also recognise that it leaves a huge number of questions still unanswered. Can the Minister confirm that all the money taken away from the BPS each year will be transferred to schemes which will pass it on in its entirety to farmers and land managers and will not be used for the government administration of the scheme? Furthermore, can he confirm that the new arrangements will not lead to additional bureaucracy imposed on the payees, which in turn will cost them money?

[Lord Gardiner of Kimble (Con)]

My Lords, as I said at the outset, and as my right honourable friend the Secretary of State said in his announcement, it is designed so that the reductions in the legacy direct payments will be transferred into a whole range of schemes within the agricultural budget. These might be productivity schemes, environmental land management schemes or slurry schemes, and this will ensure that farmers and land managers have that resource available within the amount of that budget that was promised for every year of this Parliament. The money being transferred from the direct payments will go into the schemes that I have outlined.

Picking up the point about bureaucracy, I assure noble Lords that all Ministers are determined not to replace one sort of bureaucracy with another. Complaints such as “We have not got the detail” are, I believe, precisely allayed by us wanting to ensure that at every turn—whether in simplifying the BPS or in having ways in which we do things differently—the schemes are not bureaucratic, and that their design is straight- forward. This is so that people such as me can understand them, and not have to read them three times or employ someone to help with that.

I assure my noble friend Lord Inglewood that the whole point of what we want from the codesign is for all farmers to feel that these are their schemes, because for so many it may involve retirement, new entry or productivity. It is about environmental land management in all its component forms. All the tests and trials in that area involve working with farmers, precisely to ensure that they are not bureaucratic and that we are not asking for mission impossible. We want farmers to have a sense of achievement not only because they produce public benefits, but because they feel that this is a worthwhile part of their joint endeavour in producing food for the nation.

Plant Health (Amendment etc.) (EU Exit) Regulations 2020

Lord Gardiner of Kimble Excerpts

Tuesday 8th December 2020 Lords Chamber

Moved by

[Lord Gardiner of Kimble]

That the draft Regulations and Order laid before the House on 10 and 12 November be approved.

Relevant documents: 35th and 36th Reports from the Secondary Legislation Scrutiny Committee. Considered in Grand Committee on 7 December.

Motions agreed.