Agriculture Bill

Baroness Bakewell of Hardington Mandeville Excerpts

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

[Lord Inglewood (Non-Afl) [V]]

My Lords, I declare my interests as in the register. I will speak briefly to Amendment 146 but will refer in passing to quite a number of other amendments.

Before the CAP was even a glimmer in the eye of the founder of the European Union, the agricultural sector was operating in a regulated marketplace, which makes it quite different from almost all other kinds of business and commerce. In such a marketplace there is a need for all those involved to have a degree of certainty, which is as important from the Government’s perspective as it is from the agricultural sector’s. The parties need to know what the lie of the land might be, if I may put it thus. That is why Clause 4 is so important, because it sets the framework of the way the land lies for the transitional period and points to the world beyond it.

It seems that the problem surrounding Clause 4 is essentially twofold. First, the process of Brexit has been so drawn out that the length of time to effect a seamless move to the new era is too curtailed for it to be achieved as originally envisaged. Secondly, the coming into being of the ELMS—the environmental land management scheme—which was intended to replace the basic payment scheme, has been so delayed, as a number of noble Lords have said, that it is no longer available for farmers and land managers to transition into it and into the new economic and agricultural environment, which is the heart of the new era. As well is it seeming inherently unjust, it is not part of the basic political and policy proposition that was put to the British people as to how we left the CAP.

Moreover, there is a real risk that it may end up causing a muddle in terms of public policy outputs. If you oversimplify it, under the basic payments scheme, the public goods which the state paid for were farming, and everything else was a kind of bolt-on extra. We are now moving into a brave new world where everything else is public goods and food production is a bolt-on extra. That is quite a turnaround.

Against that background, there is, as several noble Lords have said, a chasm—or what might be described as the valley of the shadow of death—that lies between the two eras and into which a significant amount of both farm businesses and land may fall. This will get in the way of implementing the policies we are discussing; indeed, it may put certain parts of them into reverse.

Although, as the noble Lord, Lord Lucas, said on a previous occasion when discussing the Bill, we must not be frightened of failure, surely the underlying intended purpose is to effect a successful transition from the old to the new. That is why the amendment of the noble Lords, Lord Carrington and Lord Curry, is important, as is that of the noble Baroness, Lady Rock, because they recognise, as was recognised by the noble Lord, Lord Clark of Windermere, that things may not actually turn out as planned and intended. You need to build into your system a way of modifying your arrangements, and an escape route.

It is clear from our discussion of this clause that the present transitional process is flawed, and those flaws need ironing out, because if we are to make a successful journey from the old world to the new, we have to get to the destination in one piece and not have a car crash.

[Baroness Bakewell of Hardington Mandeville (LD) [V]]

My Lords, my noble friend Lord Teverson has tabled Amendments 130 and 142, which would reduce the transition period between farmers receiving direct payments under the CAP and moving on to the ELM scheme. He is concerned about the length of time that will elapse before the farming community has become fully environmentally aware and responds to the Bill’s ethos of public money for public goods. Both COPs 26 and 15 have been postponed. The number of species facing extinction is growing, and biodiversity, which includes pollination and soil quality, is very important. The current financial systems work against biodiversity. This is not satisfactory.

Most Peers are concerned that the period before ELMS becomes fully operational should be further away, giving farmers more time to adjust to the change. The noble Baronesses, Lady McIntosh of Pickering and Lady Jones of Moulsecoomb, and the noble Earls, Lord Devon and Lord Caithness, support this view. The noble Lord, Lord Carrington, spoke about the gap between phasing out direct payments and introducing ELMS, and said that no farmer should have more than a 25% cut in their direct payments until ELMS is introduced.

The funding of less favoured areas has again been raised by the noble Duke, the Duke of Wellington, and I fully support him in in his concerns. I ask the Minister to give a categoric undertaking that the so-called less favoured areas will receive funding. Unless he does, noble Lords on all sides of the House will continue to raise this important subject.

The noble Baroness, Lady Rock, has tabled a number of important amendments related to timescales, cash flows and delinked payments—all extremely important in reassuring the farming community of just how and when they will receive financial assistance—which the right reverend Prelate the Bishop of St Albans has supported. The noble Baroness, Lady Jones of Moulsecoomb, again raises the issue of animal welfare, supported by the noble Lord, Lord Randall of Uxbridge. We have debated animal welfare on previous amendments, and it is essential that that theme be a thread that runs through the Bill and thus be included in a number of clauses.

The noble Earl, Lord Devon, believes that Defra will not be ready in 2021 to move to ELMS, and so wishes to put this off until 2022, and he is supported by other Peers. I share his concern about Defra’s preparedness. However, giving it more time is unlikely to assist. Moving deadlines does not always produce results, as the noble Lord, Lord Naseby, said. The noble Lord, Lord Cameron, lets Defra off the hook for not having met the deadlines; I am afraid I am not quite so generous.

Finally, farmers are left in the dark on what is approaching, despite its being trailed well in advance. I fully support the move to ELMS, but I am very concerned that insufficient information is available to give your Lordships and farmers confidence that their future will be secured. The Minister needs to provide reassurance that Defra and the RPA can cope, because from what I have heard this afternoon, I do not believe they can.

[Lord Grantchester (Lab)]

This is an interesting group of amendments, the various areas of focus being multiannual plans and the transition period. As is customary, I declare my agricultural interests as recorded on the register.

The first cluster of amendments concerns the start date and duration of the multiannual plans. Amendment 130 and, consequentially, Amendment 142, tabled by the noble Lord, Lord Teverson, would reduce the initial multiannual plan to five years starting from 2021. Moving from a previous group to this group, Amendment 131, in the name of the noble Earl, Lord Devon, and the noble Lord, Lord Cameron, would extend the subsequent multiannual plans to seven years, in the opposite direction, but leave the start date at 2021. Amendment 143, in the name of the noble Baroness, Lady McIntosh of Pickering, and others, delays the start of the transition phase of seven years until 2022, but technically, this seems to leave hanging the oddity under Clause 4(3) that the first planned period of seven years—the transition phase—starts in 2021 and will give rise to two competing seven-year periods.

Amendment 146, in my name, appears to involve a similar anomaly to the amendment of the noble Baroness, Lady McIntosh, regarding Clause 4(3), by delaying the start of the transition phase to 2022. However, under proposed new subsection (4) in our Amendment 146, flexibility is provided to shorten the transition phase if this becomes necessary. The whole amendment, drafted to replace Clause 8, is designed to provide flexibility. Proposed new subsection (2) would provide that flexibility by accommodating the disruption caused by the coronavirus pandemic this year through a one-year delay. It would also accommodate the possibility of a subsequent further disruption should a second spike strike, as further misfortune, it has recently been argued, may well be a possibility or even a likelihood.

Is there Minister confident about the readiness to implement the first planned period as soon as 2021? Last year, the National Audit Office was concerned that the Treasury and Defra had not built in enough time to implement the new funding system. Certainly, there are doubts that farmers and land managers would be able to accommodate the change to the support system in order to start next year. However, it could be argued that it may not be necessary to require a further full seven-year period for the first planned period, having had a delay to the start. The planned period could be shortened by the flexibility provided by proposed new subsection (4).

I merely comment to the noble Lord, Lord Teverson, and the noble Earl, Lord Devon, that the first planned period being longer than subsequent planned periods would appear to make sense in order to allow the trials, pilots and designs of the new ELM scheme to be properly understood, responded to and taken up, in time for any reassessments to be thought through for subsequent planned periods.

I do not know whether we really need to be concerned about election cycles, debated last week, should the plans to change the five-year Parliament Act be taken up. Clause 4(4) of the Bill merely stipulates that subsequent planned periods must not be less than five years.

The Minister will be aware from the UK’s membership of the EU that one multiannual plan is often barely in operation before plans come forward to improve it to ignite responses in the member states.

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[Lord Cormack (Con) [V]]

My Lords, I well understand why Members who are in the Government are anxious to move this Bill forward as quickly as possible, but if anything ever illustrated the value of this House and the limitations of another place, it is this Bill. The other place barely considered this Bill, and certainly not in any detail. Your Lordships’ House has sought to scrutinise, which without filibustering has still taken a long time, but it is a crucial Bill which will affect the lives of all of us, directly or indirectly, in the coming years.

There is no more important industry in our country than farming, and certainly no industry more productive or upon which we all depend so much, yet it faces a period of unparalleled uncertainty. I pay tribute to the Minister for listening so carefully and replying so sympathetically, but it is crucial that the Government display sensitivity and flexibility. This was illustrated very well indeed by the noble Lord, Lord Greaves, who did himself a disservice by talking about “convoluted amendments”. Frankly, we must address this central issue of public goods and public money. I would prefer “public” to have a capital “P”, and to have “good” and “benefit” in the singular, because although the phrase may come trippingly off the tongue, the public good is very different in the farmlands of Lincolnshire from the farming of the Scottish borders. Of course, the farming duty goes with farming, the responsibility for wildlife, the countryside and the overall appearance of the environment, but the fundamental public good is the quality of what is produced, and this is where I cross swords with the Minister.

We touched on this in our debates last week. There is no greater public good and certainly no greater public responsibility than producing food to sustain the nation. Last week we also touched on the fact that the defence of the nation itself depends on the amount and quality of food that our farmers are able to produce. I hope that between now and Report the Minister—I address this to him personally and specifically—will seek to produce in the Bill a schedule or clause that defines “public good”, setting out precisely what it means and precisely what it is.

I will not go on at greater length. I am limiting my contributions to the debates on the Bill because I understand the Minister’s wish to move forward as quickly as possible. However, it must not be speed at the expense of scrutiny and, when we come to Report, ultimately the Government must help to put the Bill into better shape than it is in at the moment.

[Baroness Bakewell of Hardington Mandeville [V]]

My Lords, my noble friend Lord Greaves has set out his case for the inclusion of Amendments 140 and 141, supported by my noble friends Lord Tyler and Lord Addington, both of whom pressed the case for an assessment of what constitutes “public goods”.

Amendment 140 would require financial assistance to be provided on the basis of public money for public goods, and it requires the regulations to be subject to the affirmative resolution. More examination is needed of exactly what the Government mean by “public goods” and how that will be defined. It could mean myriad things.

Amendment 141 would give clear instructions to the Secretary of State to order owners and managers of land to take part in a project—that is, a coastal marsh creation or a large-scale moorland restoration—in which they do not wish to participate.

The noble Baroness, Lady McIntosh of Pickering, supports both amendments. She is aware that there are often disputes between tenants and landlords that need to be sorted out. My noble friend Lord Addington said that even small landowners and not just large ones are very wary of change and will often object to taking part in projects. The noble Lord, Lord Cormack, raised the importance of scrutinising the Bill and of taking time to do it. I do not think that we can be accused of not doing so. As he said, farming is extremely important.

It is important that such vital projects for land improvement are not thwarted by individual landowners, but I am less clear that the degree of compulsion is in the spirit of the Bill. I look forward to the Minister’s response on this issue.

[Baroness Wilcox of Newport (Lab) [V]]

I thank all noble Lords who have spoken. We have had a varied debate but I wish to raise some further points and questions.

The Government’s communications on the Bill have focused on the principle of public money for public goods—a principle of almost total consensus. However, our current understanding of what constitutes “public goods” is fairly limited and, although widely used in this debate and the previous one, it is not a term used in the Bill. Although Chapter 1 outlines the purposes for which money can be given, our understanding of “public goods” probably differs according to our political emphasis. For example, my party would have a greater focus on food as a public good. It is a long time since I studied A-level economics, but I am sure that I remember a discussion centring around the fact that public goods are particularly apposite to sustaining a well-ordered society. They contribute to social inclusion and strengthen a shared sense of citizenship. In fact, it was debates such as those that fired my interest in politics and led to a lifetime spent working in public service. Therefore, will the Minister seek to define the phrase for the purposes of this legislation?

Amendment 141 proposes introducing an ability for the Secretary of State to order a landowner to participate in a large-scale tier 3 scheme. The Bill already represents a huge shift in how farmers are funded and this process will be much easier if it has the consent of landowners. Can the Minister therefore outline what powers are already available in the event of an owner or land manager refusing to participate in a scheme, even when there is a clear public interest in that scheme going ahead?

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[Baroness Bakewell of Hardington Mandeville [V]]

My Lords, rural development programmes are extremely important and any delay in their implementation would be a very retrograde step. I support the arguments put forward by the noble Earl, Lord Devon, and my noble friend Lord Addington on the shared prosperity fund and look forward to the Minister’s response. The noble Lord, Lord Cormack, also supports proper rural development and businesses to encourage young people and others to share in rural prosperity.

The noble Lord, Lord Cameron of Dillington, has, as usual, made a very powerful case for assisting farmers and the rural communities to deliver agricultural, food and environmental services. Living as I do in a rural area, but within easy reach of two market towns, I am painfully aware of the issues around the rural economy. With no single farm payment, some farmers on poor land will not survive. They depend on the wider rural economy. I look forward to the Minister’s response to the many questions from the noble Lord, Lord Cameron.

The noble Baroness, Lady McIntosh of Pickering, objects to Clause 16 being included in the Bill. I have listened to her arguments and can understand where she is coming from. Support for rural development is important; the Agriculture Bill may not be the perfect place to include this, but we have an opportunity to enshrine the rural economy and development in this Bill and ensure that those of us living in rural areas are considered in a more holistic way.

The noble Earl, Lord Dundee, pressed the case for locally produced goods and food, both through farmers’ markets and supermarkets. I fully support this, as it is extremely important to bring locally produced quality food to a much wider audience.

My noble friend Lord Clement-Jones and the noble Lord, Lord Holmes of Richmond, have an amendment to add broadband connectivity and digital literacy to the list of support for rural communities. Farmers and their families need access to decent broadband to fill in the various forms and licences required to carry out their activities, and their children need access to complete homework and, currently, to take part in lessons. Going to McDonald’s to gain access to broadband is completely unacceptable. We have no access to 5G in my rural area. As someone who struggles with the strength of the broadband signal—or lack of it—and my own level of expertise, I can confirm that assistance with digital literacy is a vital element in improving connectivity. I look forward to the Minister’s response on this subject. Can I personally hold out any hope of better broadband connectivity in the near future?

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[Lord Carrington]

My Lords, I declare my interests as a farmer and landowner as set out in the register. I support the proposal in the name of the noble Earl, Lord Devon, to remove Clause 34 and Schedule 3 covering agricultural tenancy provisions. I agree wholeheartedly with everything said by the noble Baroness, Lady Neville-Rolfe.

As drafted, the clause is neither fish nor fowl nor good red herring, in that—despite the important work of the Tenancy Reform Industry Group—the prospective legislative reform is not balanced and reflective of both parties’ interests, and runs the risk of damaging relationships and increasing anxiety and uncertainty. Although I welcome some of the proposals of Schedule 3—such as the removal of the minimum retirement age of 65 from AHA tenants, the widening of the pool of arbitrators and the paragraph to protect both tenant and landlord in new investment—others are more contentious.

In particular, I welcome the introduction of a strengthened condition of suitability for those succeeding to a tenancy, but the detail has not been agreed by the industry and should not be left unclear. Until the regulations are drafted, landowners cannot be certain whether the “improvement” suggested will diminish the effect of the loss of the commercial unit test. Neither is it clear how landowners’ interests are protected in the assessment of reasonableness.

The NFU has welcomed the reforms but also urges that other reforms under discussion at TRIG, such as landlords’ consent on variation of terms under the tenancy Act, are taken forward. Please could the Minister consider separate legislation on tenancy reform, rather than rushing it through as part of the Agriculture Bill? The issues are different, and it is clear from this Bill that what is proposed is only a first step and lacks detail. TRIG has been united on supporting landlord-tenant relationships, and this should be built on.

[Baroness Bakewell of Hardington Mandeville [V]]

My Lords, this large group of amendments—and, indeed, large group of speakers—concentrates on new entrants into farming. I have added my name to Amendments 237 and 245. My noble friend Lady Northover has added her name to Amendments 241 and 244 but, due to unforeseen circumstances, is not able to be present this evening.

At Second Reading, many of your Lordships spoke in favour of ensuring that the passage of new entrants is facilitated. The move from direct payments under the CAP to ELMS is likely to see some of our more seasoned farmers deciding to leave the land to retire or to move on to other, less strenuous occupations. The noble Baroness, Lady Young of Old Scone, and others have spoken against the community infrastructure levy being applied to new farm buildings, and I support her amendment.

It will be vital to encourage younger, more energetic men and women to enter the profession. Some will be the sons and daughters of existing farmers and able to take on the family farms. Others will be graduates from agricultural colleges who have always had an interest in the land and farming. All will need help, support and encouragement. The supply of those not inheriting farms will be an essential element of success. Without land, you cannot farm.

Given the very short timeframes of the average farm tenancy, as relayed to us by the noble Earl, Lord Devon, do the Government see larger landowners making some of their land available for new entrants?

Many county councils have been forced to sell some of their farms to raise money for other capital projects, and local authority funding is, as ever, problematic. I know from my own county experience that these farms come in a variety of sizes, from very small starter farms to large move-on holdings, but they are rarely very large holdings. For some, the starter units give a flavour of what is involved, but they are not always large enough for them to make a living. The role of the county farm estate is to give a helping hand to those starting out. Some tenants will stay until they need to retire; others will wish to move on to larger farms in other areas. Whatever their wish, the Bill needs to facilitate this.

On Thursday, we heard of the valuable contribution that prosperous landowners with huge holdings are making to the debates in this House. However, I believe that it is the smaller farmers—especially those on the edge, such as hill farmers and those on less productive soil—who need our special consideration. I agree with the noble Earl, Lord Devon, that a three-year tenancy is completely inadequate. Farming is a long-term business, and the noble Lord, Lord Curry of Kirkharle, made a powerful case for tenancies to be set at 10 years to allow a continuity of supply of starter farms.

Tenant farmers are potentially at the mercy of landlords. It is therefore important for them to be able to access funds and not to be dependent on what the landlord says. For example, there are cases where a landlord hopes to get planning permission and does not want the commitment of a grant attached to the land, especially if it lasts for a particular length of time. Sadly, on some occasions, although not all, they would rather their tenant went under than have a constraint preventing them obtaining planning permission. I support the comments of the noble Baroness, Lady McIntosh, on this amendment. I note that the noble Lord, Lord Marlesford, believes that the conversion of redundant farm buildings to homes is good, but we must be sure that the buildings are indeed redundant and that the farmer is not looking to make more money by converting them into dwellings.

It is important that tenants are protected from a landlord’s refusal to consent to enter into financial assistance schemes. It is for the tenant farmer to decide what he or she wishes for their farm. Can the Minister confirm that landlords will be prevented from blocking their tenants’ aspirations? The noble Lord, Lord Taylor of Holbeach, gave an example of the farming ladder. The ELM schemes need to work. Cropping licences are an important part of the local economy. This is a short-term licence, and I look forward to the Minister’s response.

The terms of inheriting farms are very different from those of other enterprises. Children grow up on farms and it is in their blood. They have developed skills throughout the years. They might not be the sons or daughters of the farmer; they might be the nephews, nieces or grandchildren. Should the farmer die suddenly, as has been the case with three of the farms in the village where I live, members will want to take over the farmer’s tenancy. I note the opposition of the noble Baroness, Lady Neville-Rolfe, to this amendment. Often landlords will be keen for this to happen, with continuity being provided. Immediate family might not be in a position to take on the tenancy, and nor might they wish to do so, but other family members of tenant farmers might absolutely want to carry on the farming tradition, having already invested a large part of their lives in the tenant farm. The noble Lord, Lord Judd, and the noble Earl, Lord Caithness, spoke of the selling off of hill farms to those living away from the land, with it not being farmed in the way intended but often being used as pony paddocks.

As has been said, the average age of a farmer is now over 60, and this is very concerning. We have to make sure that young farmers are able to get started. Given that it is almost impossible for someone without independent means to buy land or to borrow enough from a bank, as predicted profits are so limited, unpredictable and long-term, a tenancy is the only way to provide for young farmers. The noble Lord, Lord Cameron, gave a very powerful example of how elderly farmers are trapped on county farms that are no longer capable of providing a living. Diversification and new ideas are important so that these farms can be taken forward. Therefore, the amendment on widening the inheritance of tenancies seems very important. Can the Minister give an assurance that members of a farmer’s extended family will be able to inherit the farm? This is an important aspect of the Bill and I look forward to the Minister’s reassurance on these issues.

[Baroness Jones of Whitchurch]

My Lords, I have added my name to Amendment 158 and am very pleased to support it. My noble friend Lord Whitty and others have made an important case for restricting the disposal of county farms and, instead, for making good use of the smallholdings to bring new entrants into the sector, using the assets as exemplars of good environmental practice and providing greater public access. I agree with the noble Lord, Lord Cameron, that this is not about preserving the status quo; it is about providing a renaissance for the sector and the land that it covers. We would like to see these smaller farms have a direct link with their local communities, providing local fresh fruit and vegetables, as well as meat and dairy produce. This should be what “public money for public goods” is all about.

In the past, smaller farms of less than five hectares have been excluded from receiving direct payments, but I hope that the Minister will confirm that these thresholds will now be scrapped and that what will matter is what the farmer does with the land, rather than the size of it. We also hope that local authorities will be persuaded, through the process of a review, to see the potential of their county farms in the longer term and the potential that they can bring to their communities, rather than being a source of short-term cash on disposal.

I also have a great deal of sympathy with the concerns expressed by my noble friend Lady Young of Old Scone about the applications of the community infrastructure levy. I agree that it is in danger of inhibiting innovation and the encouragement of a range of activities in the sector.

I listened to the noble Earl, Lord Dundee, talk about creating smallholdings and work spaces. I agree with a number of noble Lords who have been excited about that prospect. I can see the potential, but I also think that it would depend very much on where the land and activities were sited. I have a feeling that the noble Earl mentioned that it might happen on the green belt, and I would certainly have concerns if he did say that. However, with good planning and good organisation, I can see that that could be a real asset among the range of options in the farming community.

The noble Baroness, Lady McIntosh, has a series of amendments about tenancy reform. We agree that such reform is long overdue. A number of noble Lords have, rightly, made the point that short-term tenancies inhibit long-term investment in farm quality and development, and this is one of the many reforms that needs to be addressed.

We welcome the first steps made in Schedule 3, but clearly they do not go far enough. Having listened to the noble Earl, Lord Devon, it may well be that the scale of the reform that is needed is not well served by being set out in a schedule to the Bill. This is a matter to which we need to pay full attention. For example, we believe that there needs to be a greater rebalancing of the power between the landlord and the tenant.

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[Baroness McIntosh of Pickering]

I will let you off, then. What is interesting about our debate so far is how little understanding there is of what constitutes common land and what activities are undertaken on it. My experience of the different activities undertaken on common land in North Yorkshire was not an entirely happy one. My noble friend Lord Inglewood absolutely hit the nail on the head in his advice to the noble Lord, Lord Greaves, that the approach to it should be multilateral, not bilateral.

I support Amendment 159A and thank the noble Lord for moving it—with the support of my noble friend Lord Inglewood and the noble Lord, Lord Addington—because I am particularly concerned about how the new schemes under ELM will take place where there is a dispute, which there inevitably will be. In summing up, can the Minister say what the dispute resolution mechanism will be? Is it not better to have a blanket one that covers all common land rather than leaving it to the parties of each individual agreement to agree it?

I grew up near to the most successful grouse shooting moors in England, on the upper parts of Teesdale. Grouse shooting was a small activity and did not create a lot of income; now, it has almost overtaken the income from the land. There is great concern that shooting and this obsession with tick control for sheep, as I discovered with one particular agreement, will negate many of the schemes that we hope will benefit under the ELM.

With those two questions, I hope that we will hear some encouraging words from the Minister on the use of common land and ELMS.

[Baroness Bakewell of Hardington Mandeville [V]]

My Lords, my noble friend Lord Greaves spoke to his amendment on providing support for common land, supported by the noble Lord, Lord Addington, and the noble Baroness, Lady McIntosh of Pickering. During the 20 years when I was a county councillor, two of the parishes in my ward had common land. It was jealously guarded and protected from incursions of all forms. Sheep were often grazed on the common, but fencing to ensure that the sheep did not wander was frowned on by some villagers. As for parking on the common, this was a very serious misdemeanour. Some people have an idyllic picture of what common land looks like. In my experience, it is not a flat area around the local duck pond, with weeping willows dipping their branches in the water. As my noble friend said, it is often on sloping and unpromising land. Nevertheless, it is an important element of rural life in parts of England. It is important that it is preserved. I look forward to the Minister’s response on just how he sees it fitting into the Bill and whether it will qualify for financial assistance under the ELM scheme.

[Baroness Jones of Whitchurch]

My Lords, I will also speak briefly. I thank the noble Lord, Lord Greaves, for raising this issue. I had not considered it before so I am grateful to him for drawing our attention to it. I agree that we need provisions in force in the special circumstances of the use of common land; he made a very good case for the need for a multilateral approach to it. On that basis, I look forward to hearing the Minister’s response.

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[Lord Northbrook]

My Lords, I rise briefly to support Amendments 174 and 285 in the name of my noble friend Lady McIntosh of Pickering. As other noble Lords have said, Amendment 174 changes the wording in Clause 18 to remove “severe” twice and replace it with “acute or chronic”. Having checked the definition of acute—

“sharp and severe in effect”—

I think this is a better word than just severe. Chronic is even better, defined as

“persisting for a long time and constantly recurring”.

Adding at the end

“caused by economic or environmental factors”

defines more broadly the parameters when financial assistance may be given at times of crisis caused, as other noble Lords have said, by unpredictable natural phenomena such as the flooding earlier this year and drought more recently, and animal diseases. Amendment 285 extends this wording to Wales.

Amendment 175 partially covers ground covered in Amendment 174, but I prefer the broader aspect ofusb the former. I like the definition in my noble friend’s amendment of when exceptional market conditions exist.

[Baroness Bakewell of Hardington Mandeville [V]]

My Lords, this group of amendments deals with financial assistance under exceptional market circumstances. I have put my name to Amendment 285. All four amendments deal with what may happen in the event of an acute or chronic disturbance in agricultural markets. As the noble Baroness, Lady McIntosh of Pickering, indicated, this is not currently covered in the Bill.

These disturbances may be caused by economic or environmental factors. The most recent occurrence of a disturbance due to environmental factors was reflected in the rules for direct payments being relaxed due to the appalling wet weather in February, which prevented farmers sowing a second crop on their land. The noble Lord, Lord Hain, spoke about exceptional market conditions caused by meeting the needs of the environment, and gave some excellent examples of the wide range of extreme weather. The noble Baroness, Lady Ritchie of Downpatrick, also referred to changing weather patterns and their effect on climate change.

In Amendment 176 the noble Baroness, Lady Jones of Moulsecoomb, has returned to the issue of producers who do not meet animal welfare standards not being eligible for financial assistance under Clause 19. She is supported by the noble Lord, Lord Blunkett. I and many other noble Lords support this amendment. It would be unpopular in the extreme with the public if those who do not look after their animals in a humane way were seen to profit due to exceptional market conditions. Does the Minister agree with this amendment and will he accept it? If not, will he say why not?

I have put my name to Amendment 285, which seeks to ensure that the farming industry in Wales is treated on the same basis as that in England when it comes to exceptional market circumstances. There can be no separate treatment for those across the Welsh border.

I imagine that everyone is in favour of this group of amendments. The only point of discussion is likely to be what actually qualifies as a serious economic disturbance and an environmental disturbance. The noble Lord, Lord Carrington, reminded us of the catastrophic effect on the farming industry of outbreaks of animal disease. Are these likely to qualify? It is likely that an environmental disturbance will be fairly obvious to everyone in the country. Severe flooding affects a number of areas and the television ensures that we all see its devastating effects. Severe drought is sometimes less obvious but as fields and crops brown and are scorched by the sun, realisation will set in. An economic disturbance might go unnoticed to start with, but it will soon manifest itself—again, through social media, radio and television. No matter how this is brought to the public’s attention, they will nevertheless be interested in how the farming community is going to cope. I look forward to the Minister telling us how that is going to happen.

[Lord Grantchester]

I thank noble Lords for tabling their amendments to Chapter 2 of Part 2, headed “Intervention in agricultural markets” under exceptional market conditions. These clauses—18 to 20—plus their application in Wales bring into domestic legislation the powers the European Commission had to provide emergency assistance in extreme, often weather-related, circumstances. The Secretary of State may modify this retained direct EU legislation by regulations and this would usually involve intervention on storage.

I am sure the Minister would wish to have these fallback provisions included in the Bill. Can she give any guidance as to how the Government might decide whether to intervene? While a member state, the UK was not noted for being eager to apply for these powers to be exercised and assistance to be provided. Do the Government have the inclination to utilise them and can the Minister give any general criteria?

I say to the noble Baroness, Lady Jones of Moulsecoomb, regarding welfare that in the wet weather period during the foot and mouth epidemic that struck the UK 20 years ago, the Government stepped in to provide welfare in buying up stranded animals that could not be moved because of the regulations. That was directly in support of welfare. I am not sure that all circumstances would pertain to the amendment she wishes to pursue.

In the past any support has been forthcoming only very late in an emergency and some considerable distance into a crisis. What assurance can the Government give about the exercise of these powers when a timely response to calls for support can be crucial to stabilise a market?

On the other hand, private storage can be notoriously difficult to bring into operation when required. Is the Minister sufficiently confident the UK has enough capacity in the various market sectors? Data on storage capacity could be included in the food security report. There was much debate and experience last year around storage in relation to stockpiling and the possibility, which still exists, that there could be no deal reached in time for the new trading relationship with the EU to be agreed. Can the Minister outline any conclusions and lessons learned regarding those circumstances?

--- Later in debate ---

[The Deputy Chairman of Committees]

Lord Clark of Windermere? No? Then I call the noble Baroness, Lady Bakewell of Hardington Mandeville.

[Baroness Bakewell of Hardington Mandeville [V]]

My Lords, these two amendments in the names of the noble Baroness, Lady Jones of Moulsecoomb, and the noble Lord, Lord Campbell-Savours, deal with the identification and traceability of animals. The highest standards of traceability are essential. The British public, whether they live in Northern Ireland, Wales, Scotland or England, are very interested in where the food they eat comes from. Does the pork in their sausages come from Denmark and Holland, or does it come from British pigs raised in outdoor fields? Does the steak they buy for supper on Saturday come from beef cattle raised in Hereford, in Devon or north of the border in Scotland? The purchaser is generally interested, so it is important that all animal food products are properly labelled as to the country of origin.

Small independent butchers and farm shops proudly announce where the meat they are selling that week has come from; which local farm has produced the lamb, which the pork, et cetera. The information is vital to their survival and to that of the farms that supply them with meat. The proper labelling of meat and meat products is going to be all the more important as the UK enters into trade deals with countries outside the EU. I hope the Government will rise to this challenge and provide the transparency that we are all seeking and set up an animal food traceability authority.

[Baroness Wilcox of Newport [V]]

I thank all noble Lords who have spoken in yet another detailed debate this evening, with expertise and enthusiasm equally displayed. The identification and traceability of animals is hugely important for a variety of reasons, including but not limited to food safety and consumer confidence.

Amendment 208 envisages the establishment of a dedicated public authority to carry out a variety of duties in relation to the identification, the movement and the health of animals, with a particular emphasis on enforcing marketing standards. Given the importance of how food is marketed, and the potential implications for public health should something go wrong, there is merit in having a body responsible for this. I am grateful to my noble friend Lord Campbell-Savours for bringing the House’s attention to the work he completed in another place many years ago on the movement and traceability of animals. He rightly asks what the purpose and construct of the new data collection service is, as well as several other important questions, seeking assurance that the current high-quality service already established in Workington is retained.

The power to establish such a body and confer functions exists in the current drafting, but it would help the Committee if the Minister could outline how it is envisaged this process would unfold, including indicative timings. Will the body be created from scratch, or will functions simply conferred on an existing organisation? Is there potential for different responsibilities to reside in different places—perhaps not Yorkshire—and, if so, how will day-to-day operations be co-ordinated?