Agriculture Bill

Debate between Lord Gardiner of Kimble and Lord Russell of Liverpool

Committee stage & Committee: 7th sitting (Hansard) & Committee: 7th sitting (Hansard): House of Lords
Tuesday 28th July 2020 Lords Chamber

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

My Lords, I thank all noble Lords for contributing to this interesting debate, and particularly the noble Lord, Lord Foulkes, for his amendment. I declare my farming interests, as set out in the register.

Part 6 of the Bill allows regulations to be made to ensure compliance with the United Kingdom’s obligations under the WTO Agreement on Agriculture. I should say immediately to the noble Lord, Lord Grantchester, that Defra and the Defra Secretary of State will be responsible for the WTO Agreement on Agriculture. To be clear, the Agreement on Agriculture is an international treaty that sets out a number of general rules and commitments on agriculture trade practices, as agreed by WTO members. These measures fall under three pillars, the domestic support pillar being the focus of Part 6. The regulations will set out procedures and arrangements to ensure that the UK as a whole complies with existing obligations under this international treaty.

We have a bilateral agreement in place with the Welsh Government on the making and operation of regulations under Part 6, and we have offered to extend this agreement to the Scottish Government and DAERA Ministers in Northern Ireland. In practice, we are already working very closely with officials from all Administrations on drafting regulations under these powers. As the noble Lord, Lord Grantchester, raised it, I can report that good progress has been made and that officials from all four Administrations are working together to finalise a draft of the regulations. A concordat will shortly set out the detail of administrative arrangements and other routine matters, in order for these regulations to be in place for the end of the year.

Furthermore, my honourable friend the Farming Minister, Victoria Prentis, placed on record in the other place a commitment to consult with the devolved Administrations on the making of the regulations under Part 6. We have therefore already given strong assurances of our commitment to consult with the devolved Administrations on the making of regulations under these powers.

In reply to the noble and learned Lord, Lord Hope, I reiterate that the Government fully recognise the devolved status of agriculture. That is why Clause 40(1) makes it clear that regulations can be made only for the narrow purpose of ensuring WTO compliance, a function that is reserved to the UK Parliament. Consultation with the devolved Administrations in cases such as this is a matter of good practice, and is done regularly on many matters. While it is usual practice to place commitments to consult on the record, as we have done in this case, we certainly do not wish to signal that consultation with the devolved Administrations will be carried out only where there is a legislative requirement. Indeed—and I hope noble Lords will understand this and will have seen this—Defra has a strong record of consulting the devolved Administrations where appropriate.

Amendment 265 seeks to remove the part of the clause which will allow functions to be conferred or delegated by the Secretary of State, or provide for a person to exercise discretion in dealing with matters relating to Part 6. Again, this was a point that the noble Lord, Lord Grantchester, raised. This amendment would prevent the Secretary of State delegating routine matters, such as the collection and collation of information related to support schemes for agriculture. It is quite proper that routine matters such as data gathering can be delegated to independent bodies. For example, certain data on farm subsidy payments is currently collected for all four Administrations by the UK Co-ordinating Body—an arrangement that works well for all parties. The intention of Clause 40(3) is to mirror existing arrangements as far as possible, to ensure a smooth and efficient process for all Administrations.

In our debate on these amendments on Thursday, the noble Lord, Lord Purvis of Tweed, asked about the policy framework for limits on the regulations. I can confirm that discussions have been held with the devolved Administrations outlining our intention to put in place limits which will enable them to maintain existing levels of agricultural support spending, if they wish to do so. Any impact on the design and implementation of schemes will therefore be limited to measures to ensure that schemes do not breach WTO obligations. The opening subsection makes it clear that the power can be used only for ensuring compliance with WTO rules.

The noble Lord, Lord Purvis, also asked about the future classification of agricultural support. As an independent WTO member, the UK will continue to have the same rights and obligations as the EU under the WTO Agreement on Agriculture, and will retain the same avenues for challenging disputes raised by other WTO members. It is of course important that we get classifications right to avoid any risk of challenge. That is why Clause 42(3) allows for provision to be made for a process for the appropriate authorities to decide how different types of domestic support should be classified.

The noble Lord, Lord Purvis, also asked about the status of the LCM in the Scottish Parliament. In May, the Scottish Government recommended legislative consent for all provisions that apply to Scotland and that those we maintain are in scope of the Sewel convention, except subsections (4) and (5) of Clause 42, which have now been removed by Amendment 268, in my name. Defra Ministers have written to their counterparts to inform them of the changes. We await the view of the Scottish Parliament, which is currently in recess.

On Amendments 266 and 269, and in response to the question raised by the noble Lord, Lord Purvis of Tweed, during Thursday’s consideration, Part 6 deals exclusively with ensuring UK compliance with the WTO Agreement on Agriculture, as laid out in Clause 40(1). None of the areas cited in Amendments 266 and 269, or raised by the noble Lord, Lord Purvis of Tweed—including animal welfare, food labelling, animal health, hygiene standards, plant health standards, food safety and traceability for agricultural products, and environmental standards—are within scope of the Agreement on Agriculture. As such, it would not be possible for regulations on these amendments to be made under Part 6. In reply to my noble friend Lady Neville-Rolfe, my understanding is that the amendments are compatible with WTO matters. However, I hope that the pragmatic points I have raised on the amendments in this group assure her that the Government seek to ensure the very important compliance with the WTO rules.

I hope that, with the reassurances I have given, the noble Lord, Lord Foulkes, will feel able to withdraw his amendment.

[The Deputy Chairman of Committees (Lord Russell of Liverpool) (CB)]

I have received one request to speak after the Minister from the noble Lord, Lord Purvis of Tweed.

[Lord Purvis of Tweed (LD)]

My Lords, I am grateful for the Minister’s fulsome response, which is characteristic of him, as well as for the good news that the talks are progressing well. No doubt we will have an opportunity during the remaining stages of the Bill after the Recess to see how well they have gone.

I wanted to come back after the Minister. I hear what he said and we have heard, not only on this piece of legislation but previously on the Trade Bill—which we will come back to—Ministers saying from the Dispatch Box that they have good intentions of consultation with devolved Ministers. However, we have seen that they have had to apologise for not carrying out consultation, including on the continuity agreement on the Faroe Islands, which was so obviously an issue which linked with Scottish Ministers, and which was not carried out. That is why this House is right to continue to press this case.

I have two questions, which arise from the Minister’s full response. The first relates to the fact that the determination for these regulations will still be made by a UK department, which means, in effect, an English department. Are the Government closed to there being a distinct process, separate from a UK government department, which would look at WTO and state aid compliance? The noble Lord, Lord Grantchester, was correct to say that these issues are linked with state aid issues. I know there is an ongoing question as to whether this should be dealt with by a UK government department or a separate body that looks at compliance. Is the Government’s mind closed on that?

The second question relates to the WTO. As Clause 40(5) states, this is about compliance with

“’the Agreement on Agriculture’ … (as modified from time to time).”

The noble Lord, Lord Grantchester, indicated that there are live discussions at the moment, especially with those developing countries that seek both changes to the Agreement on Agriculture and potentially a new agriculture agreement. With regard to the Trade and Agriculture Commission which is launching today, can the Minister indicate whether, as part of its remit to report to the Government, it will consider the ongoing discussions at the WTO about either a successor to the Agreement on Agriculture part of the WTO agreement or significant modifications to it? If there are modifications to it, there will have to be a new set of regulations to ensure that the UK is also compliant.

Agriculture Bill

Debate between Lord Gardiner of Kimble and Lord Russell of Liverpool

Committee stage & Committee: 5th sitting (Hansard) & Committee: 5th sitting (Hansard): House of Lords
Tuesday 21st July 2020 Lords Chamber

[Lord Gardiner of Kimble]

My Lords, I am most grateful to all noble Lords who have taken part in this debate, which goes to the heart of the rural economy and how rural communities play their essential part in it. I turn to Amendments 155, 156 and 157. Clause 16 provides for the continued payment of long-lasting Rural Development Programme for England agreements where they will extend well beyond the end of the current programme in 2020. This is needed because agri-environment and forestry agreements can last for many years. Some will still be active in the 2030s. The Bill does not deal with socioeconomic schemes, because these are short agreements and all payments will have been made by the time the EU rural development funding has been exhausted. Under the withdrawal agreement, Defra will continue to deliver the RDPE under the terms of the EU regulations. It therefore remains the case that all projects agreed under the RDPE will be fully funded for their lifetime. For multiyear agri-environment and forestry agreements, domestic funding will be used to honour commitments once EU funding ceases after programme closure.

I agree with the noble Lord, Lord Thomas of Gresford, and all noble Lords. The Government absolutely recognise the invaluable contribution that rural areas make to our national life, economically, socially and culturally, and are committed to supporting rural communities through post-EU exit funding and wider government initiatives. It is essential that future generations see a future in the countryside, in agriculture or in a wide range of other elements and components of the rural economy. I am minded of what the noble Lord, Lord McConnell of Glenscorrodale said. I have experienced my first Zoom meetings with an agronomist and an arable contractor and so forth. Things that I never thought would happen are happening regularly, so I understand all these things.

A lot of the matters raised in this debate are dealt with separately from the Bill, and I will expand on that. As set out in our manifesto, the Government intend to introduce the UK shared prosperity fund to replace EU structural funds. As the Rural Affairs Minister, I do not identify with the commentary on rural-proofing from the noble Lord, Lord Cameron, who was helpful to us in revising the rural-proofing guidance. We have officials working to ensure that rural-proofing is entrenched in every department. We have been working extremely closely with the MHCLG, which leads on the development of the UK shared prosperity fund, to ensure that its design takes account of the dynamics of rural economies and the particular challenges faced by rural communities. Both departments have been engaging with rural stakeholders to support development of the evidence base around what rural communities and businesses need for the fund. Final decisions about the quantum and design of the fund will take place following the spending review.

My noble friend Lord Dundee spoke about relationships with supermarkets. Some noble Lords are keen on berating the supermarkets. When I spend time going around them, I look at the British produce and the relationship there often is with local farms. That important development of relationships with local produce is strong, whether in large retail outlets or small ones. Clause 1(2) could support productivity measures which could, for example, aid local food chains. In response to the noble Lord, Lord Thomas of Gresford, on the consultation requirement, this clause will only amend existing schemes, not create new ones. We have already consulted on the changes to existing schemes, as part of the Health and Harmony consultation.

Beyond the scope of the Bill, the Government are already taking steps to ensure that our rural communities can prosper. In response to my noble friend Lord Holmes of Richmond and the noble Lord, Lord Clement-Jones, through the outside-in approach, as part of the future telecoms infrastructure review, we are supporting the deployment of gigabit-capable broadband to the least commercially viable UK premises. We are already connecting some of the hardest-to-reach places in the country, including through the superfast broadband programme and the £20 million rural gigabit connectivity programme. We have announced £5 billion of public funding to close the digital divide and ensure that rural areas are not left behind. The Government are also working with mobile network operators to deliver mobile connectivity improvements through a shared rural network. I also highlight the Digital Skills Partnership, launched by DCMS in 2017, to bring together organisations from across the public, private and charity sectors to work together to close the digital skills gap at local level.

The noble Lord, Lord Clement-Jones, asked about 5G rollout in rural areas. The 5G Rural Connected Communities programme is looking at potential 5G test cases in rural areas. Through the Rural Connected Communities competition, the Government are funding up to 10 5G research and development projects to run over two years.

The noble Baroness, Lady Ritchie, asked about discussions between devolved Administrations and rural development. As all noble Lords know, rural development is devolved, but Defra officials meet counterparts in devolved Administrations to discuss rural policy and share experience.

Returning to digital, although the current rural development programme allows for support for broadband and digital skills, wider government initiatives are the main funding mechanisms for broadband connectivity and digital skills. These are delivered through DCMS, rather than Defra. The role played by me, as Minister for Rural Affairs, and the rural team at Defra, is to work closely with DCMS and, at ministerial level, make sure that there is a complete understanding of the fact that rural communities need to play their part in a modern economy, and of the need to improve that.

Clause 16 gives the power to continue making payments where agri-environment and forestry agreements have already been signed, using Exchequer funds once the EU rural development funding contribution has been exhausted. Without subsections (1), (2) and (5) of this clause, the Secretary of State will not have the powers required to continue making annual payments specified in existing agri-environment and forestry agreements, and farmers and land managers will not be compensated for the valuable benefits that they are delivering. Furthermore, without this clause it would be more difficult for agreement holders to move from a CAP scheme to new domestic schemes under the Bill. For example, subsection (3)(a) will allow agreement holders to terminate their agreements early if they successfully secure a place in an ELM scheme. The Government want to ensure that the environmental benefits delivered through these agreements are retained and built on as we move from the CAP to a new system of ELM, designed with farmers and land managers in mind.

The powers in subsection (3) of this clause facilitate the transfer of existing agri-environment and forestry agreement holders into new schemes operating under Clause 1, such as ELM or the simplified Countryside Stewardship scheme. For example, subsection (3)(c) could allow an existing environmental stewardship agreement holder who is managing a priority habitat to convert their agreement into a new domestic Countryside Stewardship agreement. Without subsections (1), (2) and (5) of Clause 16, we will be unable to pay farmers and land managers for the work they are undertaking, and we risk complicating the transition to ELM for land managers who are already participating in agri-environment schemes. We intend to offer domestic countryside stewardship agreements until 2024, at which point we want to ensure a smooth transition from both domestic Countryside Stewardship and EU agri-environment schemes into ELM.

I do understand and take on board all the points that have been made and our mutual desire to work to ensure that the UK shared prosperity fund is up and running and successful. From a rural-proofing point of view it is imperative that the needs of rural interests, communities and business are taken into account. However, I do hope that the noble Earl, Lord Devon, will feel able to withdraw his amendment.

[The Deputy Chairman of Committees (Lord Russell of Liverpool) (CB)]

My Lords, I have received requests to speak after the Minister from the noble Baroness, Lady Bennett of Manor Castle, and the noble Lord, Lord Cameron of Dillington. I call the noble Baroness, Lady Bennett of Manor Castle.

--- Later in debate ---

[Lord Gardiner of Kimble]

I am afraid that I cannot give a precise date other than what I said in my remarks, that the quantum and design of the fund will take place following the spending review; I cannot give any further detail. However, I can say that the efforts and the work of Defra with MHCLG are to ensure that there is a very strong rural component so that rural businesses are an intrinsic part of this fund.

[The Deputy Chairman of Committees]

I have received one further request to speak after the Minister. I call the noble Lord, Lord Holmes of Richmond.

[Lord Holmes of Richmond [V]]

My Lords, I thank my noble friend for his response to my Amendment 157. He referred to the £5 billion which was set in principle as a response from the Government to the Environment, Food and Rural Affairs Committee report. Can he tell the House what the pathway is for that in-principle commitment to be rolled out and an on-the-ground practical reality?