EU Trade and Co-operation Agreement: Fishing Industry
Lord Gardiner of Kimble Excerpts(3 years, 10 months ago)
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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.
Environmental Land Management Schemes
Lord Gardiner of Kimble Excerpts(3 years, 11 months ago)
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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(3 years, 11 months ago)
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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(3 years, 11 months ago)
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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.
Plant Health (Phytosanitary Conditions) (Amendment) (EU Exit) Regulations 2020
Lord Gardiner of Kimble Excerpts(3 years, 11 months ago)
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Lord Gardiner of Kimble
That the Grand Committee do consider the Plant Health (Phytosanitary Conditions) (Amendment) (EU Exit) Regulations 2020.
Plant Health (Amendment etc.) (EU Exit) Regulations 2020
Lord Gardiner of Kimble Excerpts(3 years, 11 months ago)
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Lord Gardiner of Kimble
That the Grand Committee do consider the Plant Health (Amendment etc.) (EU Exit) Regulations 2020.
The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Gardiner of Kimble) (Con)
My Lords, I hope it will be helpful to your Lordships if I speak to both instruments, given that they are closely interrelated. Protecting biosecurity is of paramount importance, and the operability amendments in these instruments provide a strong basis for our future regime, including bringing the EU within the scope of our controls on third-country imports. While the overall policy does not change, there will inevitably be some adjustment for those businesses involved in importing plants from the EU. The devolved Administrations have given their consent to introduce these regulations on a GB basis.
The first instrument implements a new UK plant passport in place of the current EU plant passport. The UK plant passport will be used for movements of regulated plant material within GB and provides assurance that relevant phytosanitary regulations have been met. From the end of the transition period, GB will no longer use the EU protected zone arrangements, and will instead move to using pest-free areas and internationally recognised classification. GB will designate two pest-free areas: one for oak processionary moth, a pest which is concentrated around London while being absent from the rest of the country, and one for bark beetles, which are absent from an area in the west of Scotland. Other protected zones will not need to be carried forward to pest-free areas as the whole of GB is free of these pests, meaning that existing protections will be retained but specific geographic designations are unnecessary.
The transition provisions in this instrument require high-risk items from the EU—those assessed as presenting a significant risk of introducing harmful pests and diseases—to be subject to import checks and to be accompanied by phytosanitary certificates from 1 January 2021. This represents only a limited range of the plant material imported from the EU, but they are our immediate priority because they are linked to known threats or, in some cases, previous interceptions. These systematic checks will provide additional assurance about the status of these goods compared to what is currently achievable through targeted checks of goods arriving in GB from the EU. Import requirements for lower-risk plant material will be phased in from April, with physical checks of these goods from July. Import checks will be conducted on a risk basis, with the highest risk goods, such as hosts of Xylella, receiving the most intensive scrutiny. Products such as houseplants and bulbs for retail sale, for example, represent a lower threat, so the frequency of import checks will be less.
This instrument also makes operability amendments to correct references to EU legislation, remove redundant EU obligations and revoke previously laid EU exit legislation that is now redundant. It also makes consequential amendments to fees legislation, including amendments to allow charging for services related to exports to the EU.
The second instrument sets out four categories of regulated plant pests for Great Britain based on international standards. Each list provides for different situations. “Quarantine pests” are those where we have a comprehensive risk assessment to support permanent import requirements to maintain the whole country as free of those pests. Secondly, “provisional GB quarantine pests” provides such protection on a precautionary basis while the necessary evidence is developed and assessed. Thirdly, “pest-free areas” protects against the introduction of harmful pests into new areas. Lastly, while regulated, “non-quarantine pests” allows ongoing protection to prevent the further spread of pests via planting material.
The instrument also sets out measures in relation to the introduction of plants, plant products and other objects into GB, and the movement of plants, plant products and other objects within GB to reduce the risks in connection with those pests to an acceptable level. I would like to cover a few examples which I hope will be helpful to your Lordships. The GB quarantine pest list has been amended to focus on pests which pose a risk to Great Britain. This has included the deregulation of pests which pose a risk only to citrus, rice and other tropical fruits which are not grown in GB. The regulation of all non-European fruit flies has been removed, and requirements will now focus only on fruit flies which pose a risk to crops important to GB—for example, tomatoes, pepper and cucumbers. These deregulations will increase efficiency for the trade and movement of goods through the border by removing checks on produce which does not pose a risk to GB, also freeing up time of our official inspectors to focus on the more significant risks.
Amendments have also resulted in some strengthening of biosecurity protection against certain pests. There have been additions to the GB quarantine pest list, including Phomopsis canker, which causes dieback of blueberries, and apple proliferation phytoplasma, which can affect fruit quality and yield as well as tree vigour. These are present in the EU and are treated as regulated non-quarantine pests, which limits the level of control possible. The new category of provisional GB quarantine pests includes the two-lined chestnut borer, a pest of oak and chestnut in North America which has recently spread to Turkey, and the oak longhorn beetle, which is causing damage to oaks in China.
I think we would all agree that protecting biosecurity is not only of supreme interest to this Government but of supreme importance to our environment, the country and particularly—if I may say so—the horticultural sector and the businesses which we want to prosper, and which frankly give so much pleasure to so many people. I remind your Lordships that there are reputedly 3 million more gardeners this year because of the current health crisis; we want that to continue.
What we have brought forward here in these instruments is that we wish to facilitate import and movement of plant material, but I hope that your Lordships will agree that we need to do it on a risk-basis manner and in a biosecure manner. For these reasons, I recommend these instruments and I beg to move.
Lord Gardiner of Kimble (Con)
My Lords, I am most grateful to all noble Lords for this really very absorbing debate. I say categorically to all noble Lords, particularly my noble friend Lady Altmann, that there is absolutely no weakening of our resolve on biosecurity—quite the reverse. In fact, in other quarters I may be accused of raising the bar and that is exactly what we are seeking to do in terms of immediate—from 1 January—requirements for high-risk plants coming in from the EU, precisely because we are concerned that there is a biosecurity risk. I emphasise that.
I say also to all noble Lords, but particularly my noble friends Lady Fookes and Lord Taylor of Holbeach and the noble Lord, Lord Walney, that it is absolutely imperative that we work in partnership with businesses engaged in this matter. I know that that is what all the officials I have been working with want to do, and everything that we are doing is on a risk basis, based on sound science, as to what is affecting this country. I should also say that given the time allocated and the number of questions, there may be some questions that I would like to respond to in rather more detail, but we have listened to the concerns of industry to ensure that the new requirements are as practical, proportionate and risk-based as they possibly can be.
Import controls on EU-regulated goods will be phased in over six months from 1 January. Regulated goods will not be held at the border for import checks during this initial period but will instead be inspected on a risk-targeted basis at places of destination. I say to the noble Lord, Lord Teverson, who made the legitimate point about whether there is a gap, that, in fact, we are ensuring that there is no gap with regard to high-risk goods that are coming here at the moment. We are using the opportunity from day one of ensuring that high-risk goods, where we have already had interceptions, will be inspected and checked. As I said, it is designed on the basis of risk. Our focus is on those goods from the EU which have been deemed to represent a significant plant health threat.
I say to my noble friends Lady Fookes and Lady Altmann that Defra has been engaged in numerous trade events and has distributed extensive guidance directly to around 2,200 businesses by email. All known trade associations have been involved in Defra events and have been provided with detailed guidance to circulate to their members. The APHA Defra helplines are actively responding to queries to support business readiness. The devolved Administrations have been involved in similar processes and activities to ensure business preparedness. This is a continuing matter, pre 1 January and post 1 January.
The noble Lord, Lord Walney, asked about what we are doing in the phasing. The purpose is to work with businesses so that we engage on the high-risk plants and plant products first, and from April 2021 all regulated goods will be pre-notified and accompanied by a phytosanitary certificate. We will be extending physical import checks to other regulated goods from July 2021. We will be continuing our risk-based programme of inland surveillance as a further check that requirements are being met.
I say also to the noble Lord that we are working closely with other departments and agencies to ensure that there is a good join-up. We have also listened to the concerns of industry to ensure that new requirements are practical and appropriate, and are working to ensure that there are not blockages of fresh produce.
In response to my noble friend Lady Fookes, I say that have been in regular engagement with industry. More particularly, day in, day out, there has been work between officials and the Horticultural Trades Association and others. Most recently, we have undertaken a series of feasibility sessions with more than 300 participants, and equivalent export sessions. Alongside these feasibility sessions, Defra is hosting a series of webinars, open to all, on the new plant health requirements.
Northern Ireland, mentioned by the noble Baroness, Lady Jones of Whitchurch, and my noble friend Lord Taylor of Holbeach, will maintain alignment with EU regulations. These instruments focus on Great Britain’s biosecurity and the pests that threaten it. Northern Ireland will retain its own separate legislative arrangements in relation to the continued application of the EU’s sanitary and phytosanitary rules. A further instrument is under development to set out the arrangements for qualifying Northern Ireland goods which are regulated plants or plant products and can move from Northern Ireland to and within Great Britain under the Government’s unfettered access arrangements. We expect to lay this instrument before the end of the year.
My noble friend the Duke of Montrose and the noble Lord, Lord Walney, referred to the length of these SIs. I have considerable sympathy: combined they are 343 pages. They are simply amending the retained EU legislation to reflect risks to Great Britain so that measures against the introduction or spread of harmful organisms continue to remain effective and operable following the end of the transition period.
My noble friends the Duke of Montrose and Lady Altmann asked about pests. Of the 20 pests on the EU priority pest list, 11 already have UK contingency plans and five relate to tropical fruit flies and citrus pests; for the remaining four, contingency plans have been prioritised for development. I say to my noble friend Lady Altmann that our risk assessment is of the risk to Great Britain now and our responsibilities for biosecurity.
I say to the noble Lord, Lord Walney, that protecting against Xylella remains a priority. We have intensified our surveillance, inspection and testing regime for Xylella host plants because they present a considerable danger.
On IT, raised by the noble Lord, Lord Teverson, all essential deliverables are ready for 1 January, including essential IT system amendments, solutions for inland checks for transit material and UK passports, and all external content and guidance. Recruitment is under way in the APHA. On the resources point, the Government are investing £705 million to ensure that our border systems are fully operable by 1 January. The APHA is well on track to have in place more than 200 new inspectors and administrative staff by the end of the year, and we expect this number to increase to 250 full-time equivalents by July 2021. The Government in Scotland are also boosting resources.
On audits and the audit functions carried out by SANTE F, these have already been incorporated into the UK-wide plant health risk group arrangements. That includes a process on audits to scrutinise third countries exporting to the UK and manage the scrutiny from third countries to which we want to export.
On the other point from my noble friend Lady Altmann, the UK plant health risk group identifies, assesses and manages plant health risks. This working group will provide an equivalent level of technical scrutiny. On the question of general powers in the event of a significant plant health risk, general plant health powers are available.
On TRACES, although linking to TRACES remains an option, with third countries able to manually input data to the EU system, during 2021 we are aiming to use the International Plant Protection Convention hub as a single platform to exchange electronic phytosanitary certificates instead of unnecessarily doubling our own efforts by creating multiple interfaces for the rest of the world trade and the EU.
The noble Baroness, Lady Jones, asked about devolution. We are working closely with officials. Separate but parallel domestic legislation is being made in Scotland and Wales, which will ensure that plant health regulations are completely aligned in Great Britain, while respecting devolved arrangements. The plant passport numbers will be compatible. Our experts continue to enable horizon scanning, undertaken by the European and Mediterranean Plant Protection Organization and other organisations.
On the question of the basis of the review and further reviews of legislation, the UK intends to ensure that its SPS regime remains appropriate to address the risks that it faces. Defra has a dedicated team of specialist plant health risk analysts and managers working with the devolved Administrations, monitoring emerging and revised threats.
I am fully aware that, in a period of change, there will be businesses that are worried. I want to reassure all businesses that this is a very important task for Defra and the APHA. We are working on these matters daily and will continue to do so. This is a great opportunity for UK businesses. I understand the difficulties and we are working with them. But on the basis of these instruments being about UK and GB biosecurity, I beg to move.
Import of, and Trade in, Animals and Animal Products (Miscellaneous Amendments) (EU Exit) Regulations 2020
Lord Gardiner of Kimble Excerpts(3 years, 11 months ago)
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Lord Parkinson of Whitley Bay
That the draft Regulations laid before the House on 14, 20, 22 October and 2 November be approved.
Relevant documents: 32nd, 33rd and 34th Reports from the Secondary Legislation Scrutiny Committee. Considered in Grand Committee on 2 December.
World Trade Organisation Agreement on Agriculture (Domestic Support) Regulations 2020
Lord Gardiner of Kimble Excerpts(3 years, 11 months ago)
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Lord Gardiner of Kimble
That the Grand Committee do consider the World Trade Organisation Agreement on Agriculture (Domestic Support) Regulations 2020.
Relevant document: 36th Report from the Secondary Legislation Scrutiny Committee
Direct Payments to Farmers (England) (Amendment) Regulations 2020
Lord Gardiner of Kimble Excerpts(3 years, 11 months ago)
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Lord Gardiner of Kimble
That the Grand Committee do consider the Direct Payments to Farmers (England) (Amendment) Regulations 2020.
Relevant document: 35th Report from the Secondary Legislation Scrutiny Committee
Agriculture and Horticulture Development Board (Amendment) Order 2020
Lord Gardiner of Kimble Excerpts(3 years, 11 months ago)
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Lord Gardiner of Kimble
That the Grand Committee do consider the Agriculture and Horticulture Development Board (Amendment) Order 2020.
Relevant document: 35th 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)
My Lords, I declare my farming interests as set out in the register. The matters in these instruments are closely related, as they are the first produced using the powers of the Agriculture Act 2020. They lay the groundwork for our new agricultural policy.
First, the Agriculture and Horticulture Development Board (Amendment) Order 2020 assigns additional functions to the Agriculture and Horticulture Development Board, or AHDB, enabling it to run the new livestock information service—LIS—effectively. The LIS will operate in England, while the AHDB will be able to collect, manage and make available information regarding the identification, movement and health of animals, and to allocate unique identification codes for the means of identifying animals.
Livestock are currently identified through three separate livestock traceability services: one for cattle, one covering sheep and goats, and one for pigs. As existing systems are species-specific, keepers with more than one species of livestock must switch between databases. The LIS replaces these separate systems with a single multi-species system. The existing sheep service in England is expected to transition to the new arrangements in spring 2021. Cattle and pig services are due to transition in 2022. The service will be more cost-effective and user-friendly; it will allow faster, more accurate livestock traceability, enabling us to manage disease and protect human health better, giving confidence to trading partners. The LIS will use cloud-based IT infrastructure, ensuring that the system has capacity to scale up response when user demand is high.
Although the LIS operates in England, an important part of the service is working with the devolved Administrations to ensure that we can share data, allowing seamless livestock movement and traceability throughout the UK. Defra and the devolved Administrations will enter into an agreement to control and share data. Each territory’s traceability systems will be able to communicate with each other, supporting day-to-day business operations such as cross-border moves. This is called the UK view. The ability for veterinary officials across the UK to be able to access the UK view is essential to ensuring a rapid, targeted response in disease-control situations.
The AHDB will also run a unique number identification service on behalf of England and Wales, controlling the issuing of official individual identification numbers to animals. The new system will also allow for value-added services where submitted data can be used to generate information in wider areas, such as livestock productivity and disease management.
The Direct Payments to Farmers (England) (Amendment) Regulations 2020 amend and update direct payments legislation as it applies in England. The legislation governing direct payment schemes contains financial ceilings to calculate direct payments to farmers. However, it only includes financial ceilings up to and including the 2020 claim year. This instrument specifies how the Secretary of State will set financial ceilings for England beyond 2020. Once these provisions on financial ceilings have come into force, 2021 ceilings for England can be set. This will be done by the end of this year. Ceilings for future years will be equivalent to England’s share of the 2020 UK national ceiling. This is because the ceilings are the starting point for payment calculations, before any reductions are applied to payments to phase them out.
The regulations also make minor changes to ensure that schemes continue to work effectively in England beyond 2020. This includes replacing dates specific to the 2020 scheme year with equivalent dates that are not year specific. The regulations also remove rules that are not applied in England, such as those relating to voluntary coupled support, which is operated in Scotland.
No substantive policy changes are made by these regulations. They ensure that direct payment schemes in England can continue beyond the end of the 2020 scheme and are largely technical. The Government remain committed to beginning to phase out direct payments from 2021 as part of their ambitious agricultural reforms in England. We will bring forward a separate instrument to apply reductions to the payments so that we can phase them out over a seven-year transition period. Devolved Administrations plan to make their own legislation in relation to their direct payment schemes.
The World Trade Organisation Agreement on Agriculture (Domestic Support) Regulations 2020 are UK-wide. The instrument ensures that after the end of the transition period, the UK continues to comply with its international obligations under the WTO Agreement on Agriculture in relation to classification and notification of domestic support and its commitment to reduce its aggregate measurement of support. Compliance with the agreement was previously managed by the EU on the UK’s behalf. This instrument is limited in scope to ensuring continued compliance with the agreement. This is a reserved issue because individual nations of the UK do not have legislative competence to act in these matters for other parts of the UK.
The Agreement on Agriculture divides domestic support into “green box”, “blue box” or “amber box”, depending on the potential to distort trade. Under the agreement, each country must limit the amount of trade-distorting amber box domestic support given to agricultural producers. The UK’s overall amber box spending limit remains unchanged after EU exit. These regulations specify the amounts of amber box payments that may be given in each UK nation. Limits have been set, following consultation with devolved Administrations, at a level not constraining policy choices, meaning that there will be no impact on farmers.
The regulations also outline the procedure for classifying such schemes and permit the Secretary of State to request information from devolved Administrations where needed to enable the UK to satisfy Agreement on Agriculture obligations. The regulations outline the transparent and objective process by which UK constituent nations will share information on proposed support schemes in order to establish their classification and ensure timely and accurate notification of domestic support to the WTO.
These instruments implement provisions provided for by the Agriculture Act 2020 and I beg to move.
Lord Gardiner of Kimble (Con)
My Lords, I thank all noble Lords for contributing to this debate. I think we all regret that my noble friend Lord Naseby was not in the earlier consideration debate on plant health and plant products. I agree with him that there is considerable opportunity for growing in Britain. What I would say is that this particular instrument relates to adding further functions for the AHDB, but of course the AHDB currently serves six agricultural and horticultural sectors. From that point of view, today’s work is about the livestock information service specifically. Bees and poultry are not engaged in this order, and in fact the existing AHDB order does not include bees or poultry.
I turn to some of the questions, particularly on the governance structure. The noble Baronesses, Lady Jones of Whitchurch and Lady Bakewell of Hardington Mandeville, raised this. The LIS will be run by Livestock Information Ltd—LI Ltd—a subsidiary body of the AHDB. LI Ltd is wholly separate from AHDB levy schemes, and it is not funded by them. LI Ltd is a not-for-profit company, limited by guarantee by the AHDB and Defra. It will not charge fees to keepers for providing livestock traceability services. Movement reporting is a statutory requirement, and the service will be fully paid for by Defra, as existing services are now. LI Ltd may in the future charge for offering value-added services above and beyond statutory requirements. Any such services would be agreed with industry. It could thus include services which could help reduce or eradicate endemic disease.
I absolutely understand the point the noble Baronesses made about a new system and its readiness. The underpinning information technology has been in development over a longer time period ahead of the new company launching in October 2019. Defra receives regular updates, and LI Ltd is currently on track to lead with live services in spring 2021. Defra actively monitors delivery and would not decommission existing traceability services until the new one was ready. Indeed, I say to both noble Baronesses that the transition to the new service will be incremental, so there will be periods with old and new systems running. All changes will be carefully managed so that keepers will have to enter their data only once; in other words, a pragmatic solution.
My noble friend Lord Naseby and the noble Baroness, Lady Jones of Whitchurch, asked about the separation of traceability services for each Administration, and I absolutely agree: they need to be compatible, and I confirm that this is the case. Any livestock movement between UK nations should allow the full continuity of traceability. Defra is working closely with devolved Administrations and data-sharing agreements will govern information moving with the animals.
I turn to the direct payment instrument. The noble Baroness, Lady Jones of Whitchurch, asked about the direct payment legislation, the 2020 scheme and the earlier legislation. Indeed, the Direct Payments to Farmers (Legislative Continuity) Act 2020 provided continuity of payments for the 2020 scheme year. The Act was focused on providing direct payments for farmers as the UK left the EU, not on extending the scope of the regulations beyond 2020. This instrument uses powers in the Agriculture Act 2020, always designed as the vehicle for our agricultural reforms, including making substantive amendments to retained EU law. That allowed post-2020 changes, including the power to extend direct payments beyond 2020, to be debated together. To those who asked whether we will need new statutory instruments for direct payments each year, I say that the changes made via this instrument are not specific to 2021. It will not be necessary to lay further instruments to continue existing direct payment schemes for future years.
The noble Baroness, Lady Bakewell, and other noble Lords asked about the reductions in 2021 and thereafter. We intend to legislate for the reductions to 2021 direct payments in an affirmative statutory instrument early next year. Simplifications to the scheme will be made through a separate statutory instrument that was laid on 1 December.
The EU rules on active farmers have not been applied in England since 2017. They were thought to have added burdens and caused confusion for farmers. This statutory instrument does not change the requirement that you must be a farmer in order to claim direct payments.
Forgive me for being so punctilious about the impact assessment, but this statutory instrument allows existing direct payment schemes in England to continue beyond 2020. An impact assessment of this instrument is not necessary as the instrument does not introduce changes for farmers, make policy changes or set reductions for phasing out the payments for agricultural transition. I will take questions on this in a separate statutory instrument debate, but it is important to say it here.
The noble Baroness, Lady Jones, also asked about the UK internal market. We all know that agriculture is devolved. The approach to direct payments in each UK nation is a matter for each Administration. Direct payments are largely decoupled from production and should not, therefore, distort trade. There are already significant differences in the implementation of direct payment schemes within the United Kingdom.
On the WTO instrument, the noble Baroness, Lady Jones of Whitchurch, and my noble friend Lord Naseby asked about disputes between any of the UK nations. These regulations set out a transparent and objective decision-making process for classifying schemes according to WTO definitions. The devolved Administrations will be able to design their own policies and schemes, propose WTO classifications for these schemes and provide evidence in support of the proposed classifications. All four UK Administrations will then discuss their proposed support schemes and how to reach agreement on their classification according to WTO criteria before they are introduced. The provisions allow for a dispute resolution process, but this would be used only in the unlikely event that agreement could not be reached on classification of a new and amended domestic support scheme. If agreement cannot be reached there is provision for the Secretary of State to make the final decision. I should emphasise that it is expected that the vast majority of issues will be agreed. The objective is that any disputes should be resolved through discussion and collaboration between the four Administrations.
The noble Baroness, Lady Bakewell, asked how limits are calculated. The “amber box” limits are equivalent to the average annual level of all domestic support—green, blue and amber—given to agricultural producers in England, Wales, Scotland and Northern Ireland between 2014 and 2017. The amber box limits therefore accommodate current levels of green, blue and amber box support, meaning that policy choices in England, Wales, Scotland and Northern Ireland are not constrained. The limits are expressed as a percentage of the current UK aggregate measurement of support, as set out in the UK goods schedule at the WTO.
The noble Baroness, Lady Bakewell, also asked about direct payments. The English share of the UK direct payments financial ceiling is €2.07 billion, which equates to £1.8 billion and will be used as the basis for setting the direct payment financial ceiling in future years. Since agriculture is devolved, it will be up to each devolved Administration to determine their own approach to the direct payment schemes.
I will look at Hansard in case there are other points which I have missed. The noble Lord, Lord Bhatia, made one or two other remarks to which I shall attend. In the meantime, these instruments are worthy of your Lordships’ support. I beg to move.