Agriculture Bill

Alan Brown Excerpts

Wednesday 10th October 2018 Commons Chamber

[Michael Gove]

I absolutely agree with the hon. Gentleman that consumers are increasingly demanding, and rightly so, about the provenance, quality and standards of the food being produced. As my right hon. Friend the Member for East Devon made clear, we have the opportunity to reform our labelling system, to ensure both that human health and safety are better protected than ever before and that people have a guarantee of the circumstances in which their food has been produced.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

The Secretary of State is well aware that the UK Government withheld £160 million of convergence uplift money that was due to Scottish farmers. How much lobbying have Scottish Tory MPs done to recover that £160 million? How much of that money have they secured for Scottish farmers?

[Michael Gove]

I mentioned earlier that an enjoyable part of my job is visiting agricultural shows, where I have had the opportunity of meeting Scottish MSPs, but I have never met a Scottish National party MP at any agricultural show in Scotland that I have visited. I have seen my hon. Friend the Member for Banff and Buchan (David Duguid) standing up for Scottish farmers. I have seen my hon. Friend the Member for Ochil and South Perthshire (Luke Graham) standing up for Scottish farmers. I have seen my hon. Friend the Member for Gordon (Colin Clark) standing up for Scottish farmers. I have seen my hon. Friend the Member for Stirling (Stephen Kerr) standing up for Scottish farmers. I have visited farms with my hon. Friend the Member for Angus (Kirstene Hair). We can tell by the representation of Scottish Conservative Members here today, and by the dearth of SNP Members, who stands up for rural Scotland. The hon. Gentleman makes a signal and it shows exactly what the Scottish Government are doing for Scotland’s farmers—sweet zero.

Food production is critical, and making sure that farmers get a fair price for their products is important. For too long, farmers have been price takers, because there has been inadequate information about how supply chains work and inadequate powers to intervene. The Government have a duty to step in to support farmers, and we have in this Bill powers to ensure that the data is there for farmers to get a fair price at the farm gate for their produce and, in the event of severe market disturbances, that we can also intervene to ensure that farmers get a fair price.

There is one other critical thing. I mentioned the role of producer organisations earlier. Collaboration is critical not just in delivering environmental improvements at landscape scale, but in making sure that farmers get a fair price for what they produce. This Bill makes provision for increased collaboration.

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[Sue Hayman]

Well, I think that more powers are provided in this Bill for some Welsh Ministers than for English Ministers. I have had a long discussion with my counterparts in the Welsh Government and will continue to work with them to discuss these points.

[Alan Brown]

Will the hon. Lady explain why the Welsh Government appear to be supporting this Bill and the European Union (Withdrawal) Act 2018, yet her colleagues are opposing this legislation?

[Sue Hayman]

As I have said, we believe that greater powers are provided for Welsh Ministers than English Ministers in this Bill; there is more certainty. It is really important that we bring that back.

On Sunday, I attended a harvest festival at my local church, and I am sure that many hon. Members did something similar. I know that the whole House will join me in expressing our thankfulness for everything that the farming community in this country achieves to help feed the nation, often against the odds. After the extreme weather that farmers endured last winter and this summer, they are probably more affected by climate change than any other sector.

However, agriculture now accounts for 10% of UK greenhouse gas emissions—a larger share than at any time since 1990—and the Committee on Climate Change has reported that there has been virtually no change in agricultural emissions since 2008. This means that agricultural emissions are not on track to deliver the carbon budget savings required by 2022.

Net carbon sequestration from forestry has flatlined but the Bill provides only for mitigating or adapting to climate change. It seems that the Secretary of State has not heard the Committee’s call, made only in June, for this Bill to link financial support to agricultural emissions reduction and increased carbon sequestration.

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[Alan Brown (Kilmarnock and Loudoun) (SNP)]

It is a pleasure to follow the right hon. Member for Wokingham (John Redwood), who outlined his vision of a socialist protectionist England in the future, which certainly surprised me.

This has been billed as an historic Agriculture Bill, the first since 1947, but the truth is that it feels like a missed opportunity. I realise that it is an enabling Bill, but there is not enough clarity on other matters, particularly future funding and common UK frameworks. The farming unions across the nations have made it clear that there is insufficient reference to agricultural activity and how it will be supported and incentivised going forward.

I realise that only clauses 22 to 26 cover Scotland, and there is no doubt that policy decisions taken for England can have funding implications for the devolved nations. It is therefore critical that we get to know what the arrangements will be for agreeing future funding settlements. I say to Scottish Tory MPs that the NFUS wants the budgets to be devolved to Scotland to get the clarity that it seeks—the clarity that the Tory MPs say that they are demanding.

We know that Scottish farmers are not getting the £160 million convergence uplift money that they should have received, but Scottish Tory MPs have stood by and achieved nothing on that. How is that deficit going to be addressed? The NFUS has also highlighted the red meat levy, which is costing Scottish farmers £1.5 million a year. How is that going to be addressed? These precedents confirm why we and the Scottish Government are concerned about the direction of policy and funding, yet we are supposed to be relaxed about the power grab and the UK Government’s ability to legislate for Scotland.

One example that could affect farmers is trade and trade resolution. The UK Government have refused to allow devolved representation on the Trade Remedies Board. During the Bill Committee, the then Trade Minister stated that devolved representatives would not necessarily be impartial. He was effectively saying that the UK Government did not trust our representation and that we should just let them get on with it and deal with this for us. Other recent indicators include the early pulling of the renewables subsidy, the broken promises of amendments to the European Union (Withdrawal) Bill and the fact that the UK Government are taking the Scottish Government to court.

Then there was the 2014 campaign, in which we were told that the only way to stay in Europe was to vote no. Well, we know how that has worked out. Scotland voted to remain within the EU, but the referendum result is now having an impact on the fruit and vegetable sector as well as on the food processing sector. The response from the UK Government has been completely inadequate. It was stated earlier that the seasonal agricultural workers scheme is pathetically shy of what is required. Let us bear in mind that the current Secretary of State was the one offering Scotland powers over immigration as a supposed Brexit dividend. What has happened to those powers? It is quite clear that the Tories cannot be trusted. It is therefore imperative that we see what a UK framework for funding will look like, and we need guarantees that it will not be imposed on the devolved Administrations. The NFUS has sought a legal opinion on part 7 of the WTO clauses, and it completely backs up our concerns.

Going back to the UK-wide frameworks, the Farming Minister talks of protecting the UK internal market, yet during questions in the same Committee he intimated that existing funding levels were such that the Scottish Government could not actually skew the internal market. So what is the concern? Why the reluctance? Let us work with the Scottish Government to get the UK frameworks agreed. Some of the more laudable aims of the Bill include the provision of payment for the greater good and environmental improvements. This is logical, although further clarity is required on what the funding arrangements will be and how the different measures will be prioritised.

Positive change can happen. A farmer in my constituency, Bryce Cunningham, farms at the historic Mossgiel farm, which was previously home to Rabbie Burns. He has managed to turn his farm into a fully organic dairy farm in just a few years. He started producing and selling his own milk from the farm as a financial cash-flow necessity during the milk price crisis. Since then, he has undergone the full organic conversion. He has now gone plastic free, and his product is in demand all over Scotland. His is a great story, and Scotland has a great story when it comes to the quality of food and produce that we make and supply. That is why we want to protect and grow those sectors further, and why we want the levers of power to be retained at Holyrood and not to be interfered with by Westminster. At the same time, we are happy to work with the UK Government to agree on frameworks that are in the best interests of the nations.

[Mr Deputy Speaker (Sir Lindsay Hoyle)]

I call Richard Drax.

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[The Minister for Agriculture, Fisheries and Food (George Eustice)]

It is a real pleasure to close this debate, in part because, as the Secretary of State set out at the start, I worked in the farming industry for 10 years and my family have farmed in Cornwall for six generations, and in part because that time spent farming and my five years as Farming Minister have shown me that the common agricultural policy is dysfunctional, frankly, and that we can do far better. The Bill creates the framework to do things better and to set a more coherent course for our policy.

As power returns to Parliament as we leave the European Union, it has been genuinely encouraging this afternoon to hear so many hon. Members take part in the debate. It shows that Parliament is ready for the task. We have heard many powerful speeches from Members with farming experience, including my hon. Friends the Members for Tiverton and Honiton (Neil Parish), for York Outer (Julian Sturdy), for North Herefordshire (Bill Wiggin), for South Dorset (Richard Drax) and for Banbury (Victoria Prentis), my right hon. Friend the Member for Newbury (Richard Benyon) and my hon. Friend the Member for Gordon (Colin Clark)—apologies to any Members I have missed out. We have also heard many other passionate speeches from hon. Members in rural constituencies who work in close partnership with farmers in their constituencies and who have championed their interests today.

The shadow Secretary of State and many others said that they did not believe that there was enough about agriculture and food in the Bill. I want to address that point. Let us start from the top. The Bill is called the Agriculture Bill. The long title says that it is a Bill to

“Authorise new expenditure for certain agricultural and other purposes…to make provision about the acquisition and use of information connected with food supply chains; to confer power to respond to exceptional market conditions affecting agricultural markets,”

and

“to make provision for the recognition of associations of agricultural producers”.

I therefore do not agree that there is nothing about food or agriculture in the Bill. What is true is that part 1 is predominantly about delivering environmental goods, but parts 2, 3, 4, 5 and 6 are predominantly about other issues that will assist farmers in their key task of producing food for the nation.

What the Bill does not envisage, however—this is true—is a long-term place for old-style subsidies of the sort that we have seen in recent decades. There are a number of key points to recognise here. First, our current area-based system is not about food production either, but is an arbitrary area payment paid to farmers regardless of what they produce. Decoupling took place some 50 years ago. The current system is not about food production. We should also recognise that some of our most successful and vibrant food-producing sectors of agriculture have never been subsidised. Look at the poultry industry, the pig industry, the horticulture industry or fruit and veg producers. They have never had subsidies.

Our approach has therefore been to say that we should look at the underlying causes of why some farmers are dependent on the single farm payment and a subsidy. If there is a lack of fairness and transparency in the supply chain, let us bring forward provisions to address that, so that farmers can get a fair share in the value chain. If we need farmers to invest to become more competitive and reduce some of their costs, let us make available the powers to give them grants and financial support to invest in the future and in technology. If we should help new entrants into the industry and, as my right hon. Friend the Member for Newbury (Richard Benyon) pointed out, assist others who should retire to do so with dignity, let us make provision for that in the Bill, and we do.

There has been a lively discussion about the uplands. My hon. Friend the Member for Tiverton and Honiton and the hon. Member for Westmorland and Lonsdale (Tim Farron) both spoke about the precariousness of the uplands and raised questions about their financial viability. However, organisations such as the Uplands Alliance are telling us that they believe that they can create a viable and successful model based on the delivery of public goods and that if we are serious about what we say—that we want to reward farmers based on what they do for the environment—the uplands can help with flood mitigation, water quality, carbon sequestration, public access and tourism. They believe that they can do a great deal by way of public goods.

We have had a number of lively exchanges about provisions for Scotland and some powerful contributions from Scottish Conservative Members. The hon. Member for Edinburgh North and Leith (Deidre Brock) is in a slightly difficult position, because her colleagues in the Scottish Government currently have no plan. We are setting out a plan for England in this Bill. Wales has a plan, set out in schedule 3, and Northern Ireland has a plan, set out in schedule 4, and it does not even have an Administration. Scotland is alone in not having a plan. We have been clear with the Scottish Government that we will reserve a place in the Bill to add a schedule, should they want us to on their behalf, but if they do not want to do that, they must make time in their own Parliament to introduce their own legislation.

The shadow Secretary of State raised the issue of climate change. This is explicitly provided for in clause 1(1)(d), which recognises climate change as a purpose. She also complained that this was too much of a framework Bill and that there was not enough detail, but she went on to praise the Agriculture Act 1947. The 1947 Act was also a framework Bill, which made lots of provision for new orders. If she reads it, she will see that its sections are peppered with the words “the relevant Minister may”. I believe there is no difference. This is a framework Bill in much the same way as the 1947 Act was.

My right hon. Friend the Member for North Shropshire (Mr Paterson), who was the very first Secretary of State I had the pleasure of working with in the Department, raised two important issues. First, we agree on the need to invest in technology and agri-tech. Clause 1(2) provides for that to happen. Secondly, he raised the importance of soil. The very first purpose of managing land and water in a way that protects and improves the environment is intended to cover soil. I can also tell him that the policy statement we published alongside the Bill explicitly states that soil health is one of our key objectives. I would like to commend the great work my hon. Friend the Member for Taunton Deane (Rebecca Pow) has done in this area. We are working with a number of academic institutions, including Cranfield University, Rothamsted and others, to develop a soil health index. I believe that paying greater attention to soil health, as we design future policy, will be very important.

A number of hon. Members, including my hon. Friend the Member for Brecon and Radnorshire (Chris Davies), my right hon. Friend the Member for Derbyshire Dales (Sir Patrick McLoughlin) and my hon. Friend the Member for Berwick-upon-Tweed (Mrs Trevelyan), highlighted the difficulties of regulation. Some pointed out the current frustrations we have with the administration of existing EU schemes. Some perhaps pointed the finger at the Rural Payments Agency and Natural England. I would say to hon. Members that our agencies can only deal with the legislation they are given currently by the European Union. It is very dysfunctional. It is very onerous. We have an opportunity to sort it out, as this House takes back control. Clause 6 will provide a very clear power to give us the ability to modify retained EU law, knock off some of the rough edges and remove some of the unnecessary provisions and unnecessary audit requirements.

[Alan Brown]

Will the Minister give way?

[George Eustice]

I am not going to give way, because I am going to try to pick up on a few final points.

My hon. Friend the Member for Somerton and Frome (David Warburton) asked a question about clause 10, which is intended to modify the existing fruit and veg regime. The industry has some concerns with the regime. It does not work very well and often ends in litigation. We want to tidy it up and bring some clarity to it. He also asked about clause 7 and the transition. We have published our intention for year one of the transition. Smaller farms receiving under £30,000 a year would have a 5% cut. For larger farms, anything they receive over £150,000 would see a 25% reduction. We believe we have set out an approach that deals with that.

In conclusion, I believe we have had a very comprehensive debate. It has been a pleasure to close it. I am sorry that I have not been able to pick up on all the issues hon. Members have raised, but I am sure there will be opportunities to do so during the Bill’s later stages, or indeed before then should they wish to meet me. I commend the Bill to the House.

Question put, That the amendment be made.