Agriculture Bill

Lord Wigley Excerpts

Committee stage & Committee: 4th sitting (Hansard) & Committee: 4th sitting (Hansard): House of Lords
Thursday 16th July 2020 Lords Chamber

[Lord Cameron of Dillington [V]]

My Lords, I have added my name to Amendment 131 because of the worry that political short-termism could interfere with what is a very long-term and often unstable industry. In farming, when you buy a bull, you are not likely to sell the progeny of that animal for at least three years. If you buy a dairy calf, it is two years before it produces its first litre of milk. If you invest in projects such as a new grain building or new milking equipment, you are likely to be taking out a 15-year mortgage, so that enterprise has to last for 15 years before you start to get any real return.

All this means that it would be incredibly helpful if you had a long-term perspective from whatever Government are in power or will be in power; you need a degree of certainty that the rug will not be pulled from under your feet after only five years. Of course, no business expects to operate in a world of total certainty, but farmers have enough uncertainty as it is without Governments removing key building blocks at short notice. Not only do we farmers get floods, droughts, pests and diseases, but our farm product prices sometimes literally halve overnight, dropping some 20% to 30% below the cost of production. It is difficult to make a decent living from a small farm.

All I am saying is that I think we owe it to our farmers to take government backing for agriculture, in whatever form that currently happens to be, out of the five-year political cycle and allow farmers the comfort of a seven-year, multi-annual financial plan. I realise that no Parliament or Government can bind their successor, but it would be politically much more difficult for them to change the rules if a seven-year term for a financial plan were in this Bill.

[Lord Wigley (PC) [V]]

My Lords, I very much agree with the noble Lord, Lord Cameron, when he spoke a moment ago about the dangers of short-termism. That issue is vital when we are talking about long- term investment. I draw attention to my registered interests.

I have put my name to Amendment 134, tabled by the noble Baroness, Lady McIntosh. It requires financial provisions to be linked to strategic priorities, addressing the same issue as that referred to by the noble Lord, Lord Cameron, and the noble Baroness, Lady Ritchie. The central message of this and other amendments in this group is to ensure that the good purposes in the Bill and as committed to by Ministers at the Dispatch Box are tied to the financial mechanisms—that one links to the other, and there is certainty.

The lead amendment in this group, Amendment 105, moved by the noble Lord, Lord Grantchester, focuses on the need to ensure adequate finance—specifically, no less than has been provided in the recent past. Given our present economic plight, it is clear that assurances along these lines are very much needed.

Amendment 112 deals with carry-over, as does Amendment 128, in the name of the noble Baroness, Lady Rock. This question is one that we really need to give some attention to. We had difficulties in the National Assembly, as it then was, in Cardiff a few years ago when the Welsh Government very sensibly arranged not to spend money at year-end for the sake of it, but to carry it over into a consolidated fund for strategic purposes. That money was immediately taken back by the Treasury. If ever there was an example of short-term thinking and punishing people for sensible approaches to financial planning, that was it.

Maintaining the level of cash support for agriculture is clearly regarded by the farming fraternity as a key issue. A plethora of general commitments may well have been given to assuage their fears, but we need a specific commitment in the Bill, if possible. That is why I believe these amendments are important for the House.

[Baroness Jones of Moulsecoomb [V]]

My Lords, it is a pleasure to follow the noble Lord, Lord Wigley. He feels passionately about these issues and I enjoyed his speech very much.

I agree with others who have said that this Bill is an enabling Bill. In essence, it gives the Government a lot of power and trusts them to go off and implement what we have decided without many checks and balances. I cannot imagine that there are that many people left in the UK who actually trust the Government any more, so why should members of your Lordships’ House trust them?

The collective theme of the many great amendments in this group is that they would, in one way or another, force the Government to show their working and allow Parliament to mark their homework. I think this is something that we need to take very seriously.

Turning to the amendments to which I have attached my name, Amendments 127, 134 and 137 are important because they will tie the Bill to the Environment Bill and ensure that funding is sufficiently allocated to achieve the environmental aims. There is little written into either the Environment Bill or the Agriculture Bill —two enormous Bills—to create a cohesive framework; both seem rather to create their own stand-alone systems. It is as if two teams drafted them and they were not allowed to speak to one another but just got on and produced their own Bill. Both Bills are setting up very long-term systems that will spread their tendrils throughout huge parts of our economy, and it makes sense to bring these together now, or we will be back here in a few years’ time, trying to close the gaps.