Leaving the EU: Agriculture

Alistair Carmichael Excerpts

Thursday 1st February 2018 Westminster Hall

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

I beg to move,

That this House has considered the policy framework for agriculture after the UK leaves the EU.

As ever, Mr Bone, it is a pleasure to serve under your chairmanship.

Before I start, I should say that I am very grateful to the Backbench Business Committee for having allowed the House the opportunity to debate this subject today. I see a reasonable number of Members in Westminster Hall, so I shall try to keep my remarks fairly short, to ensure that everybody gets a chance to have their say.

First of all, however, it is worth noting the context for this debate. For the 40-plus years that the United Kingdom has been a member of the Common Market, the European Economic Community and ultimately the European Union, the common agricultural policy has been the dominant force in shaping agricultural policy in the United Kingdom. As is often the case when there is such a dominant force, we can get dragged down into the weeds. We can lose sight of the higher purpose—I suspect that, if pressed, any of us could come up with lots of things that we dislike about the CAP.

The moment of our leaving the European Union will be, of course, an opportunity to change much of that and to do things differently, if that is what we choose. However, it is worth reminding ourselves about the context of what has been achieved and the nature of the agricultural industries—I use the plural advisedly—that we have had for the last 40 years as a consequence of our membership of the EU.

Some would say that this is a moment for moving away from financial support for agriculture completely—the New Zealand “cold turkey” approach. That is a respectable view; it is not one that I happen to share, for reasons that I will explain. However, it is a statable case, and if we are sensible it is one that we should address. When the Secretary of State recently made a speech at the Oxford Farming Conference, he spoke about the CAP being a mechanism for subsidising inefficiencies. One man’s inefficiency may be another man’s lifestyle, so I listen to terms such as that being bandied about with some caution, shall we say.

What would be the consequence, though, of ending the support there has been for agriculture? The most obvious consequence, in my view, would be food price inflation. There is a cost attached to maintaining an agricultural business, and if farmers are not to get the money they need through the mix of what they get at the farm gate and financial support from Government, then of course a higher price will have to be paid by the consumer in the supermarket.

In fact, earlier today it was put to me that the most obvious victims of the end of the era of cheap food—the era in which we have lived and continue to live—would be those on the lowest and fixed incomes. That is a good point: people on low incomes spend a higher proportion of their disposable income on food than on anything else. Ending support would also have very profound implications for our countryside. Many of the things that we value most about our countryside come about because people live there—because they can work there and make a living there. The countryside is not just a glorified retirement home.

I have seen a lot of farms’ books in my time as a Member of Parliament, for a whole variety of reasons. When it comes to farmers in my constituency and throughout the highlands and islands—and doubtless those in other parts of the country—there simply would not be a living to be made without the farm subsidy payment coming into their businesses every year. We would lose the farms, then the shops and the post offices. The country schools would close, which would lead to the loss of professional support, such as the lawyers, accountants and the vets. With that loss, we would start to lose the mix that a rural community needs to sustain itself. Thereafter, it is pretty easy to see where we would go.

The alternative to food price inflation, of course, would be to import cheap food from other parts of the world. However, I caution hon. Members about that. One of the reasons why our costs of production are high in this country, relative to other parts of the world, is that we maintain very good standards of animal welfare, traceability and biosecurity. Those all come at a price. We are told that such things are valued by the consumer, and there is a price attached to that. If our farmers are to compete on a level footing, we should expect the same standards in those countries from which we would envisage importing food. At that point, one would wonder whether the price difference between food produced here and imported food would be as marked as it is now.

In that context, the CAP and support for agricultural industries have given us considerable stability in recent decades. There is then the question of what will follow the CAP. If we take away the framework that we have had since the mid-1970s—the CAP—we will inevitably have to replace it with some other sort of framework: a UK-wide one, if that is to be the extent of our regulation. I am pleased to note an emerging consensus between the UK Government and the devolved Administrations: that the creation of a UK-wide framework is a desirable and necessary event, which will have to be taken seriously.

To my mind, there are something in the region of four different objectives that such a new framework would need to have built into it. First, and most importantly, it would need to preserve the functioning and integrity of the UK internal market. That is important for consumers and producers across the length and breadth of the country. Secondly, it would need integrity, to ensure that the UK was in a position to enter into trade agreements with other countries. Thirdly, it would have to ensure that the United Kingdom could continue to meet its existing international obligations, never mind those that we may seek to take on. Fourthly, it should provide for effective management of common resources. As I say, the first of those four objectives—preserving the integrity of a UK internal market—is the most important.

As the National Farmers Union Scotland has put it in one of the many briefings that have been provided for today’s debate,

“animal welfare and traceability, public health, pesticides regulation, and food labelling”

should all be part of a “commonly agreed ‘framework’”. That is in the interests of all parts of the United Kingdom.

Of course, once an overarching framework has been agreed, everything else that remains should be devolved to the constituent parts of the United Kingdom. For the purposes of England, that would obviously be the Department for Environment, Food and Rural Affairs; the Scottish, Northern Irish and Welsh Assembly Governments would have control and responsibility for their own respective jurisdictions. The thinking that needs to be done now about how we design that framework is important. We need something that will allow each Administration to implement it as is appropriate for their area.

As one who was always a keen supporter of the idea before it happened, I think that devolution since 1999 in Scotland has been very good for Scottish farmers. They say that the administration of agricultural policy from a dedicated Department in Edinburgh has been better for them: it is closer to their needs and better able to design a system that is suitable for the farmers in our constituency.

I am sure that that is true across the whole United Kingdom, so the framework must provide a structure without tying the hands of the devolved Governments. They should be able to continue to do as they currently do: look after the less favoured areas such as the highlands and islands, and perhaps then the beef farms and dairy farms; I am thinking not only of Orkney and such places, but the north-east of England—I see the hon. Member for Dumfries and Galloway (Mr Jack) from the south-west of Scotland—or the south-west of England.

There are upland farms in Yorkshire and Cumbria. All the different industries have needs that are best met by devolved Administrations delivering policy in their own jurisdictions. For that reason, when the framework is constructed, it has to deal with those matters in a way that that can be commonly agreed. If the Minister has not already had representations from the NFUS, although I suspect he probably has, he should consider its proposal for the creation of a strengthened joint ministerial Committee. The mechanisms of devolution already make provision for that sort of thing, but as we move to the next phase of our constitutional change, it is pretty clear that something of that sort will be necessary.

The idea posited to get a commonly agreed mechanism is that something such as qualified majority voting, as is often used in the Council of Ministers, could be engaged. The advantage would be to create something that was genuinely a common agreement, rather than a top-down approach where control would still be vested in DEFRA and in London.

Inevitably, one comes on to the question of finances. Currently the United Kingdom remits money to Brussels, which then pays the respective Administrations money that goes in a dedicated way to farm support. Obviously, after our departure from the European Union, that supply line will be significantly shortened and we shall look to the Treasury. I do not see any other mechanism than that the money should come from the Treasury, but perhaps the Minister has other ideas about how that would work. More importantly even than that, we need to know the mechanism by which that funding will be distributed across the different parts of the United Kingdom. For most public spending purposes, we currently have the Barnett formula, but that takes into consideration a whole range of different matters that would not really be relevant, so some sort of thinking at this point will clearly have to be done.

On the brass tacks of this, when the Minister comes to reply to the debate today—I realise we are in the early stages of the thinking and we can look only for broad principles—will he confirm that the pie that we will slice up by whatever mechanism we devise will remain the same size as the one we currently have? The one thing that consistently comes through to me, from talking to farmers and crofters in my constituency and to the farming unions, is that at this stage our objective should be continuity and stability. Farmers really need to know what the future holds for them. If we do not have early confirmation of what the future holds, we cannot expect them to have the confidence to keep investing.

A whole range of imponderables will come from our decision to leave the European Union. Access to export markets, the terms on which imports will be allowed from other countries, and the availability of labour for both the production and processing of food are just a few of them. All those matters are outwith our control, but the creation of a UK-wide framework is one element entirely within our own control; more than anything else, it will give our farmers the opportunity to continue their planning for future investment.

In his speech at the Oxford Farming Conference, the Secretary of State guaranteed support payments to 2024. That was a welcome announcement and I do not want to diminish the importance of it in any way, but in doing that he prayed in aid the need for long-term certainty.

I speak as a farmer’s son. I know two things about farming. First, I knew I was never going to be one; that is partly why I am here today. Secondly, I know that six years for a farmer is nothing like the long term. The long term is what agriculture is built on and what our farmers and crofters need to hear about. I hope the Minister will at least give an indication that we have started the process of giving it to them.

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[Kerry McCarthy (Bristol East) (Lab)]

It is a pleasure to see you here, Mr Bone.

The debate is very welcome. It has obviously been a long time since agriculture policy was in such a period of transition, and where there was so much up for debate and needing to be decided; as we come out of the common agricultural policy we look towards the negotiation of new trade deals, and there is an agriculture Bill on the horizon, I hope. The Environment Secretary has made some welcome statements at the Oxford Farming Conference and the Oxford Real Farming Conference—I attended the latter—which were restated in the 25-year environment plan, about trying to shift to the use of public money for public goods. That must be the backbone of the approach. I welcome his clarity about the ending of subsidy per acre, and using it to pay for public goods. It is encouraging that the direction of travel on that is so clear. Farmers want to do much more to conserve their land for future generations; the structure should be there to support that.

We need to do a much better job of internalising the external costs of the damage we do to the environment, including soil degradation, deforestation, biodiversity loss and the impact on public health of the routine use of antibiotics. Those have been disregarded for too long. I am sure that we all agree on the desirability of the new regime supporting the public goods that the Environment Secretary identified, such as planting woodland and restoring habitats for endangered species, and restoring and enhancing soil. I would add other things, but the direction of travel is good.

As chair of the all-party group on agroecology for sustainable food and farming, I would also like specifically to promote the benefits of agroecological approaches. They are sometimes seen as backward-looking, because they can involve reviving some old-age systems, but I am not personally anti-innovation. I think that agroecological measures can be adopted without a reduction in productivity. As the former UN special rapporteur on the right to food, Olivier De Schutter, said, the approach has been shown

“to improve food production and farmers’ incomes, while at the same time protecting the soil, water, and climate”.

That is the balance we need.

I want to focus my comments on two areas about which little has been said so far. The first is post-Brexit agricultural policy, which urgently needs to address how we increase our food sustainability and, given global pressures, ensure long-term food security. The second is the growth of diet-related ill-health and widening health inequalities. As to food security, leaving the EU potentially puts UK food security at greater risk. At the moment we produce less than 60% of the food we consume and rely on the EU for almost 30% of our imports. Post-Brexit, shortages of farm labour and a more volatile market could make that situation even worse. I am vice-chair of the all-party group on fruit and vegetable farmers. Witnesses from the sector, and the wider horticulture sector, gave evidence to the Select Committee on Environment, Food and Rural Affairs a while ago; the sector is already starting to suffer from the Brexit effect. Last year, there were reports of produce rotting in the fields in Cornwall from a lack of EU workers to pick it, put off by poor exchange rates and uncertain future employment. I know that the Minister has attended the all-party group and the Select Committee to hear our concerns. I am sure that the Committee Chair, the hon. Member for Tiverton and Honiton (Neil Parish), will mention that later.

Nothing was said about the workforce in the 25-year plan. Although the Environment Secretary has said that he recognises the need for seasonal agricultural labour, we do not have a clear indication of what he intends to do about that. We need to ensure that agricultural policy addresses the prevalence of low pay, insecure employment and the exploitation of workers in the food and farming sector. I do not think that that is too much to ask.

[Mr Carmichael]

The issue of labour availability is important, but it is not confined to low-paid workers. The hon. Lady should be aware that the veterinary profession relies heavily on vets who come to work in this country from other parts of the European Union, especially for meat inspection.

[Kerry McCarthy]

I think that I am right in saying that about 85% of the vets from overseas who work in this country have not been in the UK more than five years; so they would not be captured by the arrangements being put in place to enable people to apply for status to stay in the country. That is an important issue.

On the question of horticulture and healthy eating, we need to ensure that our agricultural policy not only maintains but widens access to healthy, nutritious food for everyone. Analysis by the Food Foundation, which was of course set up by a former Conservative MP, who is doing excellent work, shows that a British family of four could be spending up to £158 per year more on fruit and veg after Brexit, as a result of tariffs, inflation and increased labour costs. That is a huge amount of money for those already struggling to put nutritious food on the table. Ninety-two per cent. of teenagers in the UK already struggle to get their five-a-day, and diets low in vegetables are linked to 20,000 premature deaths every year. We had a debate in Westminster Hall the other day about the links between junk food and childhood obesity. Cancer Research provided inspiration for that debate, and the other side of the healthy eating coin is obviously the consequences of unhealthy eating.

--- Later in debate ---

[Peter Grant]

It would be nice if the Government’s approach to Brexit was based on evidence, facts and proper analysis, rather than ideology. The hon. Gentleman also welcomed the opportunity to have what he described as an informed debate about immigration. I think it would have been nice if we had had an informed debate about immigration, rather than the desperately ill-informed debate we had up to, through and since the referendum. We have not heard enough about the enormous benefit that immigration brings to these islands and will continue to bring if we allow it to do so.

The hon. Member for Gordon reminded us at Brexit questions this morning that, as far as agriculture is concerned, one size does not fit all. In fact, the danger is that one size very often does not fit anything, so nobody gets the result they need.

Anyone can work out that the needs of a hill farmer or crofter in the highlands of Scotland or in Wales are very different from the needs of a dairy farmer in the south of England, or indeed of a fruit grower in lowland Scotland or lowland Perthshire. That means that whatever framework is put together has got to be capable of being adapted and applied flexibly to ensure that the decisions taken are those that are most suited to where they are being applied.

I do not have an issue, and neither does the Scottish National party, with recognising that in some areas of public policy there are huge benefits to having one framework and one set of rules to apply everywhere. For example, animal welfare standards are common throughout the United Kingdom—good idea. Let us face it, they are going to be common throughout the United Kingdom and the European Union, because we will still want to be able to sell our stuff across the Irish border, so Northern Ireland will have to fit in with European Union standards in the longer term.

It is essential that a decision that something will be taken on a UK framework basis is a decision by consensus. I am waiting, as are a lot of people back home in Scotland, to hear the Government confirm that no UK framework policy will be decided without the consent of the devolved Administrations, and that once it has been agreed that something needs a UK framework, the content and detail of that framework will be agreed by consensus among the four equal partners in the Union, not simply imposed on us by a Government in Whitehall—nor indeed imposed on the farmers of England by a Government in Edinburgh.

[Mr Carmichael]

Will the hon. Gentleman give way?

[Peter Grant]

I will give way very briefly indeed.

[Mr Carmichael]

What view do the hon. Gentleman and his party take of the NFUS suggestion that any decision should be taken on the basis of some form of qualified majority voting?

[Peter Grant]

I am not convinced that defining a specific voting system now would be particularly helpful. I would not have a problem with the system being more devolved in England, if only there were a government structure to allow that to happen, because farmers in Devon do not necessarily need the same response as the farmers of east Anglia—but that is for the people and representatives of England to sort out. If decisions are to be taken that will affect farmers in Scotland, it is essential those decisions are the right ones for Scotland. The best place for decisions affecting Scotland to be taken is in Scotland—if we want to, we can replace Scotland with Northern Ireland, Wales or even Cornwall.

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

I congratulate the right hon. Member for Orkney and Shetland (Mr Carmichael) on securing this debate. Like him, I am a farmer’s son. Unlike my hon. Friend the Member for Tiverton and Honiton (Neil Parish), I am not farming now, but I did try farming for 10 years. It is a real honour to be farming Minister at an exciting time: we have an opportunity, for the first time in half a century, to design fresh thinking and coherent policy in agriculture.

As the Minister for Agriculture, I have wrestled with the common agricultural policy, and the rules and bureaucracy, for four years. It is stifling. Although there have been changes to the CAP over the years, in its current incarnation it is a bureaucratic quagmire. It attempts to regulate every single field and every feature in them. Our administrators spend their time fretting about the width of a hedge: whether it is too narrow or too wide, whether the gateway is too big and whether there are too many trees on a parcel of land. It goes on forever.

Every Administration in the UK feels deep frustration at some of the bureaucracy in the CAP. We have an opportunity as we leave the EU to do things differently and to design coherent policy. We set out our intention in the Queen’s Speech last year to bring forward an agriculture Bill later this year. Before that, we will publish further plans about our initial thinking—some time later in the spring or in early summer.

The right hon. Member for Orkney and Shetland and others talked about the importance of UK frameworks. We absolutely recognise that and I think that all other parts of the UK do, too. As he pointed out, when we consider the UK framework, we will be looking predominantly at two areas: first, what is required to protect the integrity of the UK single market. Clearly, we could not have one Administration subsidising sheep farmers in a way that would be to the huge detriment of farmers in other parts of the UK. There would have to be some boundaries. Secondly, everyone accepts the need for UK frameworks when we talk about what is necessary to secure international agreements, be they on trade or other matters: things like phytosanitary, food safety and traceability issues to protect our export market. We will have to have some kind of framework and common outcomes and objectives to deliver those things.

I reassure the hon. Gentleman and others that we are engaging regularly with Ministers in all the devolved Administrations. We have regular meetings with them and in some of those meetings, different devolved Administrations lead on particular aspects. They have been updating us on some of the work that they have been doing. At official level there has been a very in-depth analysis, both to deliver what is necessary for the current European Union (Withdrawal) Bill and for the detailed work on the principles and features that a future UK framework will need.

Picking up on the point that my hon. Friend the Member for Gordon (Colin Clark) made, our critique of the CAP is that it is a one-size-fits-all policy, and it does not work for that reason. I want to ensure that leaving the EU and the CAP is liberating for everyone in this country—for all the devolved Administrations and for farmers right across the UK. As he put it, it is not our intention at all to have a DEFRA-centric, top-down policy. Far from it: we want to protect maximum flexibility and ability for each individual devolved Administration to design policies that work for them.

I will give an example of the sort of thing that we have to put up with. About 18 months ago, the Welsh Government got into a legal dispute with the European Commission because the Commission did not like the size and shape of the ear tag that they used as the second tag on cattle. I would have no intention of trying to dictate to other devolved Administrations what the size, shape or colour of their ear tags should be. All I would want to know is that they had proper traceability in place.

[Mr Carmichael]

The Minister’s policy is all very well, but it is meaningful only if we have the money to go with it. Will the Minister address the position of the Treasury in relation to funding of it?

--- Later in debate ---

[Mr Carmichael]

I thank all hon. Members who have taken part in the debate. I feel that we will return to this subject many times. In particular, I thank the Minister, who has been assiduous in addressing the points; he took copious notes throughout, but despite that, he still managed to send me an email at 3.30 inviting me to a reception to mark Cornish Pasty Week. I accept his invitation with some pleasure and look forward to discussing with him there the importance of protected geographical indications, of which Cornish pasties, Orkney beef and Shetland lamb are but a few.