Rules for Direct Payments to Farmers (Amendment) Regulations 2020

Debate between Lord Gardiner of Kimble and Baroness Byford

Tuesday 3rd March 2020 Grand 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. I hope that it will be helpful to your Lordships if I speak to both the Rules for Direct Payments to Farmers (Amendment) Regulations 2020 and the Financing, Management and Monitoring of Direct Payments to Farmers (Amendment) Regulations 2020, given the close connection between the two instruments. These instruments amend retained EU law governing the direct payment schemes for farmers for the 2020 scheme year. This EU law was brought into domestic law on exit day by the Direct Payments to Farmers (Legislative Continuity) Act 2020, which, as noble Lords will remember, we have debated.

These statutory instruments address operability issues in retained EU law so that it can continue to function effectively in the United Kingdom for the 2020 scheme. The instruments make purely technical amendments to fix inoperabilities, and I should emphasise that they do not make policy changes. They use the affirmative procedure and I would like to explain why this was necessary. They could not have been made any sooner as they could be made only after the parent Act received Royal Assent, which was just before exit day. The instruments needed to be in force on exit day, at the same time as the relevant direct payments legislation was brought into UK law. This has ensured a seamless transition from EU law to UK law. It has meant that the Government and the devolved Administrations can continue to operate effectively the 2020 scheme, which began on 1 January, therefore avoiding any disruption to farmers. Significantly, these instruments ensure that the UK Government can meet their commitments to funding in the agriculture sector. The Government have announced nearly £3 billion in funding for direct payments to UK farmers for the 2020 scheme year.

The Rules for Direct Payments to Farmers (Amendment) Regulations 2020 make operability amendments to the retained EU Regulation 1307/2013, which is the main direct payments regulation establishing the high-level framework required to make direct payments to farmers. It also amends two delegated and implementing Acts under this regulation which together set the detailed scheme rules for direct payments. Finally, it makes minor operability amendments to an existing statutory instrument related to direct payments in England. It is worth making it clear that the direct payments legislation being amended by this regulation was brought into UK law only for the 2020 scheme year, not for prior years, so this instrument makes amendments only in relation to 2020 direct payments.

The Financing, Management and Monitoring of Direct Payments to Farmers (Amendment) Regulations 2020 make amendments to the retained EU Regulation 1306/2013. This is the main “horizontal” regulation that sets the overarching framework for how the CAP is administered, including direct payments. It also amends four delegated and implementing Acts under the main regulation, which together set the detailed rules necessary to finance, manage and monitor the delivery of the CAP schemes. Finally, it makes minor operability amendments to an existing statutory instrument in relation to direct payments in England.

It is important to recognise that the EU legislation being amended by this regulation was brought into UK law only in so far as it relates to 2020 direct payments and not to other parts of the CAP. Therefore, this statutory instrument amends only the parts of the legislation which relate to the 2020 direct payments. The list of regulations amended by these instruments can be found in paragraphs 2.2 and 2.3 and Annexe 1 to the accompanying Explanatory Memorandum.

The amendments include replacing EU terms with domestic equivalents. For example, references to “Member States” have in most cases been replaced with the term “relevant authority”. The SIs define a relevant authority as meaning the Secretary of State, Scottish Ministers, Welsh Ministers and the Department of Agriculture, Environment and Rural Affairs in Northern Ireland. The instruments in most cases confer powers to make legislation which once sat with the European Commission on either the Secretary of State or the relevant authority.

The amendments also include removing provisions which are not applicable in the UK, such as references to the payment for cotton and administrative processes which lose their purpose outside the EU context; for example, the requirement to send information to the Commission.

More specifically, the Rules for Direct Payments to Farmers (Amendment) Regulations 2020 remove the power to fix spending ceilings for individual direct payment schemes. In a domestic context, it is unnecessary to set such individual ceilings in legislation, particularly given that the schemes are administered at the devolved level.

The Financing, Management and Monitoring of Direct Payments to Farmers (Amendment) Regulations 2020 remove from retained EU law the EU’s processes for managing its budget and remove or amend the EU’s auditing and accounting rules.

Except for the amendments made to the domestic statutory instruments, which apply only in England, these SIs cover all four parts of the United Kingdom. We have worked closely with the devolved Administrations to produce the instruments and they have given their consent to them.

In summary, the instruments allow the retained EU law to function effectively so that the Government and devolved Administrations can continue to operate the 2020 direct payment schemes for farmers. I beg to move.

[Baroness Byford (Con)]

My Lords, I thank the Minister for introducing the regulations. I thank him, too, for the Government’s commitment to give £2.852 billion to ensure that the programme continues. I should declare a family interest in farming in Suffolk, where we are recipients of basic farm payments and stewardship funding.

The instruments speak for themselves. I have no queries with them; the legislation as it stands is fine. However, is the Minister confident that the payments will be made at the right time and in the full amount? I refer not just to the basic payments but to payments on the stewardship side, which has not had a good record in recent times. I understand from farming colleagues around the country that they are still waiting for some of those payments to be made. Perhaps the Minister can tell us how many are outstanding and when they will be paid. My worry is that the Government will find that fewer people enter those schemes because they fear that they will not be paid at the right time. That would be a great shame because we are trying to encourage a greater number of environmental projects within food production.

Given the flexibility within the instruments, might the Government rethink their stance on the three-year crop rule in the light of recent circumstances? I have in mind particularly the flooding that we have had. At the moment, we are supposed to rotate crops within a three-year period, but given the flooding—which remains a key issue in Lincolnshire, Yorkshire and other areas where crops are still standing in the fields, with little chance of farmers getting them out or being able to plant spring crops—is there flexibility within the system to make any allowances for that?

I have a direct question for the Minister on flooding. I know that emergency payments are allowed, and that some may have already been paid of which I am not aware. Within these rules, may some flooding assistance be given to the farmers who are in such dire straits at the moment?

I noticed in particular Regulation 7(10). I think the exchange rates are undecided at this time. Can the Minister tell us whether the exchange rates will be honoured in the same way between the four devolved Administrations? Clearly, it would surely be wrong to have one system in England and another in Wales and in Scotland. Will he comment on that?

On Regulation 7(6), I see that the Government of Wales have paid an amount to small farmers, and in Scotland beef and sheep farmers have been given assistance. Where will that balance take us? Are there plans to assist farmers in England, who are not represented in that way?

Lastly, I turn to payments. The Minister has a farming background and I am sure he realises that we need to ensure that payments given to farmers this year, let alone next year, are equal across the four devolved Administrations; otherwise, we will have unfair trading circumstances, which I know the Minister would not want to encourage.

Having made those few comments, I return to where I started: I welcome these regulations, and it is important that they are passed by the House. I have no difficulty with what is in them, but they raise other questions, which I have been able to ask this afternoon. I thank the Minister for introducing them.

--- Later in debate ---

[Baroness Byford]

My Lords, I am very grateful for my noble friend’s responses to the various questions raised. I am not surprised, but I am really pleased to hear him champion the need to produce food above all else. He kindly referred to the recovery funds following flooding and such things. My understanding is that, in the past, some of those payments have not been made until after the recovery happened. I do not know whether there has been a change of thought on that, because they need those payments most when flooding happens, not when they have recovered, if the Minister follows my line of thought. If he cannot answer today, I am quite happy for him to write to me, because this is crucial. As he knows so well, there is immense pressure on the health and well-being of many of our farmers. For some of them this is nearly the tipping point. It would be very helpful if he could clarify that.

[Lord Gardiner of Kimble]

My Lords, I obviously cannot make any commitments today, given the changing situation and floods in parts of the country that were not part of the further announcements. However, the unprecedented flooding in many agricultural parts of the country has obviously affected many towns and villages, as well as farmland. I will write to my noble friend, put a copy in the Library and send it to all noble Lords who have spoken in the debate. Providing an up-to-date version of what we plan to do on farm recovery would be the most helpful way to deal with that.

Fisheries Bill [HL]

Debate between Lord Gardiner of Kimble and Baroness Byford

Committee stage & Committee: 1st sitting (Hansard) & Committee: 1st sitting (Hansard): House of Lords
Monday 2nd March 2020 Lords Chamber

[Baroness Byford (Con)]

My Lords, I apologise that I did not speak earlier in the debate, but I will read Hansard very carefully tomorrow. From what I gather, my noble friend has indicated that, for some stocks, we do not have data available, and some of the data we do have is 12 years old. I agree with the view of the noble Lord, Lord Grocott: I am excited by the Bill because it gives us an opportunity to move forward in a sustainable way. However, we need information on which we can base our assumptions. Will the Minister indicate where there are gaps in that information and what is being done about it? Referring to my noble friend Lord Caithness’s comments on the whole question of trade and standards, it is essential that we have information on which we can base the decisions we have taken. I have listened carefully to my noble friend and know that an enormous amount of work has gone on with the devolved Administrations—I am perhaps happier about that than some other Members of the House are—but we need as much information as we can get at this stage.

For me, sustainability has to be key: at the end of the day, you cannot fish if there are no fish. If we do not have the data and information that we need, how can we make the assumptions that we will be dealing with in the Bill? There is an amendment to come shortly on the question of discards, and we will return to this issue in that debate. I have one or two queries, but if the Minister cannot answer them at the moment, perhaps he will look into it—or somebody will—so that we have a better overall picture of the sustainability side before we come back on Report. That would be immensely helpful.

[Lord Gardiner of Kimble]

I made it clear that the precautionary objective already includes the clear objective to restore all marine stocks to sustainable levels. We are very clear that we need to work through all stocks—that is what the fisheries management plans are intended to do—so that for those stocks for which we do not have sufficient information, there is this precise precautionary objective. As my noble friend Lord Lansley referred to, there is a difficulty in trying to put these objectives in some order of priority. As I say, we are seeking to improve all stocks because the truth is that, at the moment, we do not have an assessment of all stocks. That is precisely why, picking up the point raised earlier by the noble Lord, Lord Grocott, it is an enormous opportunity for us to look now across the whole of the marine environment at all our stocks.

This will not be sorted out overnight; I do not think any noble Lord expects there to be a magic switch and, suddenly, we are now responsible and it can be turned around immediately. But the whole purpose of the structure that we have put in place is precisely to address the sustainability of all stocks.

Fisheries Bill [HL]

Debate between Lord Gardiner of Kimble and Baroness Byford

Committee stage
Monday 2nd March 2020 Lords Chamber

[Lord Gardiner of Kimble]

All the organisations that I have referred to are organisations rather than statutory bodies. Clearly, bodies such as Natural England have statutory functions and interests, and obviously are part of the work. The Environment Agency, Natural England and other such bodies would all have an interest in marine areas and so on. As to the part they will play in the expert advisory group—I will try not to mislead your Lordships—clearly all such statutory organisations and bodies would have a locus in this.

As to the initiatives from the industry itself that the UK Government are supporting to manage fisheries, these include, for example, the work of the Scallop Industry Consultation Group and the newly created shellfish industry group. We have also held a call for evidence on how we allocate additional English quota.

In addition—the noble Baroness, Lady Jones of Whitchurch, referred to this and we shall have discussions about it—the Bill includes statutory provisions requiring consultation and parliamentary scrutiny of proposals in the joint fisheries statement, any Secretary of State fisheries statement and fisheries management plans. The provision for consultation in these three areas—particularly when we get down to the fisheries management plans, which are about each and every stock—shows the level of ability and the importance of consultation. Its purpose is to get these matters right and to have sustainable fishing.

Given the complexities of fisheries management, the different interests and the different levels at which advice and engagement need to take place—be it at national, administration or local level—a one-size-fits-all body is unlikely to work. Consultation and collaboration will need to flex and adapt as we improve our fisheries management.

In addition, I am advised that, as drafted, the amendment would present some challenges given the devolution settlements. Officials in the UK Government have worked very closely with their counterparts in the devolved Administrations to develop and draft this new set of fisheries objectives. We appreciate the level of engagement that the devolved Administrations have shown in this work. The objectives are truly shared ambitions for our future fisheries management. I am pleased to report that the devolved Administrations already collaborate and consult widely in developing their own future fisheries management policies.

As I say, we will come to discussions on consultation at a later stage but I hope it has been helpful to my noble friend that I have set out in slightly more detail than I might have intended the organisations that are part of the expert advisory group. As we all know, we need to base what we do on scientific advice—and we are seeking the best scientific advice we can.

With those extra words, I hope my noble friend will feel able to withdraw her amendment.

[Baroness Byford]

My Lords, I thank the Minister for his response, and the two other noble Lords for supporting—in principle, I think—the ideas behind this amendment. Obviously, we look forward to looking at theirs in greater detail as well.

The one thing that slightly concerns me, as the Minister rightly said, is that there is no one size that fits all. I understand that but, on the other hand, if we have lots of little bits doing different things, surely you need something overall, like an umbrella, which brings it together. This is the thought behind the amendment. It is an ongoing consultation: it is not that you go out to consult on one issue, but that it would be something that goes on into the future. As my noble and learned friend Lord Mackay could not be here tonight, I say at this stage that I will obviously read Hansard very carefully, as I know he will. I beg leave to withdraw the amendment.