Leaving the EU: the Rural Economy

Andrea Leadsom Excerpts

Tuesday 17th January 2017 Commons Chamber

[The Secretary of State for Environment, Food and Rural Affairs (Andrea Leadsom)]

I beg to move an amendment, to leave out from “House” to the end of the Question and add:

“recognises the importance of the rural economy to the UK, not least the food, farming and fishing sector which is worth £108 billion to the economy and employs 3.8 million people in communities across the whole of the UK; welcomes the continuity and certainty the Government has provided by guaranteeing the same level of funding to the agricultural sector that it would have received under Pillar 1 of the Common Agricultural Policy until the end of the current Multiannual Financial Framework in 2020; further welcomes the Government’s undertaking that all structural and investment fund projects, including agri-environment schemes and schemes under the European Maritime and Fisheries Fund that offer good value and fit with domestic objectives and are signed while the UK remains a member of the EU will be honoured for their lifetime even when this is beyond the UK’s departure from the EU; welcomes the opportunity that leaving the EU will bring to improve the management of fisheries in UK waters and to champion sustainable fishing; supports the continued investment in superfast broadband and the introduction of a Universal Service Obligation; shares the Government’s commitment to securing a deal in leaving the EU that works for all parts of the UK; and notes that one of the best ways of supporting rural communities is by having a strong economy that works for everyone.”

It will not surprise the hon. Member for Berwickshire, Roxburgh and Selkirk (Calum Kerr) that I do not quite see it in the same way that he does. I thank him for giving us the opportunity to debate the rural economy, which is a vital part of our national economy. Hon. Members of all parties will know how diverse the rural economy is, and much of it is underpinned by our food, farming and fisheries sectors. Those industries have shaped all four parts of the UK and continue to do so. They are central to our heritage, landscapes and economic wellbeing, generating £110 billion for the economy each year and employing one in eight of us in all parts of the UK. We should all be proud of the world-class food and drink those industries produce and the role they play in our national life. The rural economy matters enormously.

Although leaving the EU offers huge opportunities to the farming and fisheries sector, it is vital that we provide the industry with as much continuity and certainty as we can. That is why we have already provided reassurance to all farmers across the UK that they will receive the same level of financial support under pillar one until 2020. For rural development programmes, agri-environment schemes and the European maritime and fisheries fund, we will guarantee projects that are signed before we leave the EU for their lifetime, even when this stretches beyond our departure from the EU.

The Government will also ensure that the devolved Administrations are funded to meet the commitments they have made under current EU budget allocations. Given that the administration of EU funding is devolved, it will be for those Administrations to decide the criteria used to assess projects.

[Ian Blackford (Ross, Skye and Lochaber) (SNP)]

I would like to believe the promises the Government are making, but, of course, the Government have form. If we go back to the convergence uplift criteria, Scotland was supposed to be rewarded with £223 million of funds from the EU, but we are getting only 16%. We were promised a review in 2016—it has not happened. When will it happen, and when will our crofters and farmers get what is due to them? The real question on the devolution of agriculture to the Scottish Government and Scottish Parliament is about making sure we get the correct funding—it is about what happens not up to 2020 but after that.

[Andrea Leadsom]

I do recognise the hon. Gentleman’s point, and it is something I continue to look closely at in my Department. I will keep him up to date with progress on it.

Leaving the EU will give us the chance to develop policies for the rural economy that are bespoke to the needs of this country rather than the different approaches and circumstances of 28 different member states. As Secretary of State, I have made very clear my two long-term ambitions: first, to make a resounding success of our world-leading food, farming and fisheries industry—producing more, selling more and exporting more of our great British food; and, secondly, to become the first generation to leave the environment in a better state than we found it in. These ambitions look far beyond tomorrow; they are about long-lasting change and real reform. They form the bedrock of a balanced approach to policy, and the success of one is integral to the success of the other.

[Dr Daniel Poulter (Central Suffolk and North Ipswich) (Con)]

My right hon. Friend will be aware that one of the difficulties the agricultural sector faces under current EU legislation is with honest food labelling. Some food sold as British in this country is not, under EU regulations, necessarily grown in Britain—it may well have been grown or farmed a long way overseas. One real opportunity on leaving the European Union is that we can have honest food labelling so that we know that food is genuinely grown, farmed and produced in this country.

[Andrea Leadsom]

I share my hon. Friend’s concerns. This is something we have improved on greatly through voluntary and compulsory schemes for labelling, and we continue to look at that, particularly as we leave the EU, so he is right.

That brings me to the mechanics of our departure from the EU. The great repeal Bill will transpose the body of EU legislation into UK law. We will then be able to change or amend it, as UK law, at our leisure. We will soon be publishing a Green Paper consulting on a framework for our 25-year plan for the environment. This will help to inform our decisions, better connect current and future generations to the environment, and ensure that investment is directed to where it will have the biggest impact on the environment. I am sure all hon. Members will agree that our constituents want clean beaches, clean air, clean water, good soil and healthy biodiversity, whether we are a member of the EU or not, and I can assure hon. Members of my full commitment to that.

[John Redwood]

Will my right hon. Friend also make it a priority to publish proposals for a British fishing industry that will allow us to catch more of our own fish and protect our fishing grounds for the future?

[Andrea Leadsom]

My right hon. Friend makes a good point about the potential for all UK fishing. I hope that our policies, when we come to them after consultation, will enable us to deliver exactly what he asks for.

[Dr Eilidh Whiteford (Banff and Buchan) (SNP)]

Today, the Prime Minister made a passing reference to Spanish fishermen and their interests when she was talking about doing a deal with the EU. That suggests that fishing is already in play in these negotiations, so can the Secretary of State clarify what the Prime Minister is offering Spanish fishermen and why our fishermen are being used as pawns in this process already?

[Andrea Leadsom]

I can assure the hon. Lady that, as she will appreciate, we are not entering into any negotiations until we have triggered article 50. We are, however, consulting our colleagues very widely in the devolved Administrations, and any negotiating positions will be discussed with them, so she does not need to worry about that.

A healthier environment will enable our world-leading food, farming and fishing industry to go from strength to strength. As pledged in our manifesto, our upcoming Green Paper on food, farming and fisheries will set out a framework for the future of these industries over the next 25 years. We will consult widely on that Green Paper.

[Jake Berry]

Clearly, in relation to the environment, there are decisions that may still properly be made at a European level, but some decisions made in Europe damage our farming industry in Lancashire. A perfect example is that in Rossendale and Darwen: farming of commons is what most upland farmers do, and each movement of the cattle between commons is counted. A farmer may have 15 movements in the life of his herd, reducing the price that he gets at market. Will my right hon. Friend commit to making sure that this is altered?

[Andrea Leadsom]

There is a lengthy answer to that but also a much shorter one, which is that the opportunities that arise from leaving the EU include points such as that which my hon. Friend raises. During consultation on our food, farming and fisheries Green Paper, there will be the opportunity to make those points and to seek remedies.

I want to give a few examples of how our departure from the EU gives us some very specific opportunities: first, to design a domestic successor to the common agricultural policy that meets our needs rather than those of farmers across the entire European Union; secondly, to ensure that our fisheries industries are competitive, sustainable and profitable; and, thirdly, to make our environment cleaner, healthier and more productive. Ours will be a system that is fit for the 21st century, tailored to our priorities and those of our farmers, our fishermen, and our environment.

The UK guarantee on funding was my first priority on arriving at DEFRA in the summer. It provides crucial certainty to farmers and the wider rural economy. I am conscious, however, that many farmers and rural businesses plan much further ahead and work to much longer investment cycles, so it is vital that we start planning now for life beyond 2020. It is important that we think carefully about what happens next and develop the ideas and solutions for a world-leading food and farming industry and an environment that is left in a better state than when we inherited it. That will involve focusing on the industry’s resilience, unlocking further productivity, and building environmental considerations into our policies from the outset.

I believe that the fundamentals of our food and farming sectors are strong. Food and drink is the largest manufacturing sector in the UK—bigger than cars and aerospace combined—and leaving the EU will provide more opportunities for the sector to thrive. [Interruption.] It is important to take stock of how much we already export beyond the EU: 69% of exports of Scotch whisky go to non-EU countries; 59% of salmon exports, which are predominantly from Scotland, go to non-EU countries; and non-EU dairy exports are up by over 90%. Leaving the EU will allow us to shape our own trade and investment opportunities, encourage even greater openness with partners, in Europe and beyond—[Interruption.] I sincerely hope that the hon. Gentlemen who keep shouting are going to read this in Hansard since they are obviously not interested in any of my words in the Chamber.

[Several hon. Members rose—]

[Andrea Leadsom]

I will give way once they have listened to me for a moment.

Leaving the EU will allow us to shape our own trade and investment opportunities, encourage even greater openness with partners, in Europe and beyond, and put Britain firmly at the forefront of global trade and investment. The recent launch of our international action plan for exports, with nine campaigns across a number of global markets, demonstrates our ambition in this area—an ambition that builds on our strength as a great, outward-looking trading nation.

Scotland has always been at the heart of this success, accounting for 30% of the UK’s total exports of food, feed and drink in 2015. One of the highlights of my trip to Vietnam last year was a lunch to promote fabulous Scottish smoked salmon and Aberdeen Angus beef to Vietnamese food importers.

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

The Secretary of State mentions planning and careful thinking going forward to 2020, but what planning and careful thinking have been done for the crofters of Na h-Eileanan an Iar and the west highlands, and what will post-2020 mean for them and their futures?

[Andrea Leadsom]

My hon. Friend the Minister of State met the National Farmers Union of Scotland yesterday, as I did recently, so we have taken informal advice. At the same time, I have made it very clear—unfortunately, the hon. Gentleman was not listening—that the consultation on our Green Paper on the long-term future of food, farming and fisheries is the perfect opportunity for him to represent his crofters’ interests and for them to feed into the consultation, and we would welcome such an opportunity. [Interruption.]

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. Hon. Members ought to have the courtesy to listen to the Secretary of State.

[Andrea Leadsom]

Scotland has a rich and varied agricultural heritage, including the grain-producing lowlands in the east, and beef and lamb production in the uplands. It is no surprise that Scotland has a number of world- beating brands, including Scotch beef, Shetland lamb, Stornoway black pudding and Orkney Scottish island cheddar. On my last trip to Scotland, I met representatives from key industries and trade bodies that are vital to the Scottish rural economy, including NFU Scotland and Scotland Food and Drink. I was given a guided tour of Paterson Arran, which has grown into one of Scotland’s best-known independent food companies, with a turnover of almost £24 million in 2015. I was also fortunate to be shown around the Glenmorangie bottling plant in Livingston. Scotch whisky is a phenomenal global success, accounting for about one fifth of all UK food and drink exports, worth £3.9 billion in 2015.

On working with the devolved Administrations, I regularly meet my ministerial counterparts in Scotland, Wales and Northern Ireland, and I look forward to welcoming them to London for further discussions next week. I am determined that we secure a deal on leaving the EU that works for all parts of the UK and recognises the contribution that all corners of this country make to our economic success.

Leaving the EU is DEFRA’s biggest focus, as it is the Whitehall Department most affected by the EU, but alongside this, the day-to-day work of DEFRA continues to focus on achieving the right conditions for a thriving rural economy. Although much of rural policy is devolved, in August 2015 we published the rural productivity plan for England to set the right conditions for businesses in rural areas in England to prosper and grow. Across the board, Government policies will help rural communities: having an industrial strategy that works for all areas; delivering 3 million apprenticeship starts in England by 2020, including trebling the number in food, farming and agri-tech; and building more homes and providing better access to services.

[David Rutley (Macclesfield) (Con)]

My right hon. Friend is making an important point. Does she believe, as I do, that the huge opportunities for rural diversification will strengthen our rural economies and communities? Not the least of those opportunities are outdoor recreation and other activities, which can create meaningful experiences for people, that will help the rural economy, as well as physical health and wellbeing?

[Andrea Leadsom]

My hon. Friend is exactly right. Reconnecting with nature and the outdoors is incredibly good for wellbeing. We expect and anticipate that the success of rural tourism will continue as we seek to become a more outward-looking nation.

[Rebecca Pow (Taunton Deane) (Con)]

The Secretary of State is making a very powerful point. Does she agree that there are huge opportunities in rural industries in relation to renewable energy, many of which are based in the rural economy, and that we should build on this and sell our technology and our innovation on the world stage, which will help with climate change across the globe as well?

[Andrea Leadsom]

My hon. Friend is quite right. The UK is the scene of incredibly successful renewable energy schemes. Many offshore wind projects are in fact in Scotland, and they have brought prosperity to some key areas in that nation.

Increasing connectivity right across the UK is vital both for businesses to be competitive and for communities to thrive. We are investing over £780 million to make superfast broadband of at least 24 megabits per second available to 95% of UK premises by 2017. Reaching the 5% that this figure does not cover is absolutely key and that is why I welcome the Better Broadband scheme. Under the scheme, those who cannot get a broadband speed of at least 2 megabits per second qualify for a subsidised broadband connection, with a grant of up to £350 available. I do encourage anyone who is eligible to contact their local authority.

We are also working to introduce a broadband universal service obligation by 2020, at a minimum of 10 megabits per second. An additional £442 million will make superfast broadband available to a further 2% of premises in the UK. This will be complemented by a further £1 billion broadband infrastructure investment, as announced in the autumn statement. For areas with poor mobile coverage, planning reforms came into force in November to facilitate the building of taller masts, and to make upgrading and sharing of infrastructure easier. I assure Members across the House that better connectivity, the key to unlocking the full potential and productivity of rural areas, will remain a priority for the Government.

In conclusion, our goal is to secure a deal that works for all parts of the UK. Promoting our great British food at the same time as improving our environment is central to building a strong economy that works for everyone.

[Several hon. Members rose—]