Agriculture Bill

Baroness Bloomfield of Hinton Waldrist Excerpts

Report stage & Report stage (Hansard): House of Lords & Report: 1st sitting & Report: 1st sitting: House of Lords
Tuesday 15th September 2020 Lords Chamber

[Baroness Jones of Whitchurch (Lab)]

My Lords, I thank my noble friend Lady Young for moving this amendment and making the case so persuasively. She is raising an important point about what will happen when the environmental standards, which are currently required through cross-compliance, no longer apply when we leave the EU and the existing payments regime is phased out. We agree that it is vital that the standards that apply, such as to hedgerows and buffer strips to watercourses, should not be lost by accident or intent.

It all forms part of the promise made when we left the EU that our environmental standards should be at least on a par with what went before. It is also part of the bigger promise of the Government that they will leave the environment in better shape than when they inherited it. So we cannot afford to go backwards on this issue.

As my noble friend has made clear, these issues are part of a bigger project to review standards and develop a new regulatory regime. This is fine as far as it goes, but the clock is ticking and we know that these reviews take time. The review will be taking place against intense activity to get the new ELMS regime up and running, with all the supportive secondary legislation that will be required to make that happen.

So there is a real danger that the provision of new regulations will be delayed, and a regulatory gap will occur. My noble friend’s amendment provides a neat solution to ensure that those standards not yet required by UK law will be safely assured for the future.

To be honest, as other noble Lords have said, we do not understand why the Government have not put something similar in the Bill, and there is still an opportunity for them to accept this amendment today. But if the Minister is not so minded, I would be grateful if she could provide sufficient reassurance that the review and its outcomes are on a fixed timetable. Can she also guarantee that our environmental standards achieved by cross-compliance will not be compromised in the meantime? I look forward to her response.

[Baroness Bloomfield of Hinton Waldrist (Con)]

The primary effect of this amendment would be to provide a new lever to oblige recipients of financial assistance under Clause 1 to meet cross-compliance requirements. This includes parts of the cross-compliance regime where there is no backing in domestic legislation.

A large proportion of the rules currently contained in the cross-compliance regime are replicated in domestic legislation. Rules such as those in the Wildlife and Countryside Act, the Control of Pesticides Regulations and the Reduction and Prevention of Agricultural Diffuse Pollution (England) Regulations will continue to provide protection for our valuable wildlife, soils and watercourses. It will remain mandatory for individuals to continue to comply with all domestic regulation, irrespective of whether they qualify for financial assistance.

We understand the important role that regulatory standards play in trade, in protecting our environment and in protecting the health and welfare of animals. That is why the Government will take a proactive approach to engaging with industry. Responses to our landmark Health and Harmony consultation, our wide-reaching review led by Dame Glenys Stacey, and our discussion document on the ELM scheme have informed, and will continue to inform, our regulatory framework. This autumn, we intend to launch an engagement package—the intensive consultation to which the noble Baroness referred—which will provide an update on the thinking around the future regulatory system. We want to use this to start a co-design process with industry, opening the conversation with stakeholders on the best approaches to designing a future regulatory system.

The Government are exploring other possible levers that we could use to encourage more effectively industry compliance, which would deliver improved environmental outcomes. The ELM scheme will cover a range of environmental outcomes to ensure that farmers and land managers improve their practices and are rewarded for doing so. We are considering a range of measures to ensure that we deliver these outcomes, including, for example, requiring individuals to meet certain requirements as a condition of entry within the scheme itself.

Finally, I assure noble Lords and emphasise that we should take the time to get this right—and we have the opportunity to do so. Individuals will be expected to continue to comply with all current cross-compliance regulations until we delink payments from the land or direct payments end, and until not before 2022. The noble Baronesses, Lady Jones of Whitchurch and Lady Bakewell, and the noble Earl, Lord Devon, worried about the regulatory gap, but we are striving hard to ensure that this does not occur. Through our engagement process and the development of our ELM policy, we will ensure that our high environmental and animal health and welfare standards continue to remain world-leading.

I hope that I have given sufficient reassurance on this important matter, and that the noble Baroness, Lady Young, will feel able to withdraw her amendment.

[The Deputy Speaker (Baroness Morris of Bolton) (Con)]

My Lords, I have received no requests from noble Lords to ask a short question, so I call the noble Baroness, Lady Young.

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[Baroness Northover (LD) [V]]

I, too, would also like to thank the noble Lord, Lord Grantchester, for moving this amendment. He and other noble Lords are surely right that it will be vital to have training and guidance available in this way. We have heard a great deal about the changes that may be coming down the track and, of course, the ELM schemes will mean a lot of change. It is important that those receiving financial assistance are assisted in delivering the purposes identified, as the noble Lord, Lord Cameron, said.

There has been some discussion today about tenant farmers. We must look in particular at the smaller players in this regard; they are far less likely to be able to access advice, and this will be an important contribution to what they will be able to do and to ensure that they are indeed acting in the public interest. The noble Lord, Lord Carrington, rightly points out that the average farmer is not well-off—he or she. As the noble Lord, Lord Inglewood, put it, almost all the rules of engagement will have changed. Both the noble Earl, Lord Caithness, and the noble Lord, Lord Lucas, pointed out how farms and local circumstances already vary, and now we have massive change added on top.

There can be various sources for guidance, not least from our outstanding agricultural colleges, Natural England, mentioned by the noble Baroness, Lady McIntosh, whom I owe much for advice, and experienced farmers in a local area. The noble Baroness, Lady Bennett, rightly warns about taking advice from commercial sources with a vested interest, and we looked at that in detail when we looked at pesticides.

There will be a vital need for guidance from the Government because—as the noble Lord, Lord Whitty, said—they have a key responsibility here. ADAS did play an important role, as he said, whatever its shortcomings. We support this amendment and look forward to seeing what the Minister says in response.

[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, I am grateful to noble Lords for their almost universal acknowledgement tonight of the importance of advice in a time of significant change to the industry. The rules of engagement have, indeed, changed fundamentally.

I reiterate the Government’s view that expert advice and guidance is critical to the successful delivery of future schemes. As currently drafted, the Bill already gives the Secretary of State the necessary powers to fund the provision of advice, guidance and other means of support to recipients of financial assistance under Clause 1. The Government certainly intend to use this ability; advice and guidance is one of the priority areas in the 40 live tests and trials that are feeding into this theme.

I will give some examples of how this could be done. For future tree health schemes, we are looking to refresh and improve our offer of plant health advice to ensure that land managers have the information they need to manage and respond to tree health issues. For animal welfare grants, these one-off payments could cover investment in equipment, infrastructure, technology and training. For animal health schemes, we are also looking at ways to increase advice given to farmers, both from vets and other agricultural advisors, to help them improve animal health. We also want to increase peer learning between farmers through, for example, facilitated farmer groups. The Government have also stated their intention to offer advice to those applying for productivity grants to help them decide which investments would achieve the greatest improvements in business performance.

In Committee, reference was made to the ongoing ELM scheme tests and trials. We are using these to identify the most effective means of providing advice and guidance to farmers and land managers, which will enable them to deliver on their funding agreements with confidence. Since then, the number of ELM tests and trials looking at the provision of advice and guidance has increased to 40, demonstrating the Government’s commitment to designing a scheme that works for farmers and land managers. Evidence shows that, for advice to be effective, it must be trusted, consistent, credible and cost effective. The Government are considering how these principles can be embedded into advice for all schemes and working with farmers and other land managers to do so.

The noble Lord, Lord Cameron of Dillington, asked specifically about the availability of training schemes. The ELM trials are exploring ways in which skills and qualifications for environmental land management can be improved.

The noble Lord, Lord Grantchester, also asked how agricultural colleges could be drawn upon to provide advice and dispense information. The Government are supporting the work of the skills leadership group in exploring ways to address the fragmented nature of the existing skills, education and advice landscape. Representatives of the agricultural colleges have been involved in these conversations.

Defra is currently running a £1 million grant funding project to explore how it could provide resilience support to farmers and land managers in England to help them prepare for reductions in direct payments in the transition period. The project, which is targeting some 1,700 farmers and land managers, aims to identify how, where and when they may need to adapt their business models and resilience as a result. Evidence coming from this project will help inform the design of a national scheme, which is currently in development for launch in early 2022.

I was asked about the availability of broadband in some areas. We are connecting some of the hardest-to reach places in the country, including through the SFB programme and the £200 million rural gigabit connectivity programme. We have also announced £5 billion of funding to close the digital divide.

I hope that I have managed to give some reassurance that advice and guidance are already considered in the scheme design, that the Government are committed to their provision and that we have the powers we need to deliver in this area. I hope the noble Lord, Lord Grantchester, will feel able to withdraw his amendment.

[Lord Grantchester (Lab)]

I thank all noble Lords who have spoken on this amendment, especially the noble Lord, Lord Lucas, and the noble Earl, Lord Caithness, for their additional reasons for supporting this amendment. As everyone has expressed, this is a fundamental change to the rural landscape and agricultural industries support.

The possible lack of an impact assessment, mentioned by the noble Baroness, Lady Neville-Rolfe, could be identified as a challenge of detail for what may be required for the successful launch and promotion of this scheme not being fully appreciated. We would want the scheme to be a success.

The amendment is not prescriptive on how the Government may go ahead and deliver that advice. The Minister’s confidence need not be at the expense of caution. My noble friend Lord Whitty drew attention to the withdrawal of advice that, as I was reminded, has reduced the level of the UK’s agricultural productivity in comparison to other EU countries.

The noble Lord, Lord Cameron, emphasised the importance of training to achieve farmers’ engagement. The noble Baroness, Lady Bennett, reflected on the quality of advice that could come from more commercial sources, which could be a further challenge. The noble Lord, Lord Carrington, mentioned the digital divide. The noble Baroness, Lady McIntosh, emphasised, if I am interpreting correctly, that advice must be part of participating in schemes. My noble friends Lady Young and Lord Judd also spoke of the importance of advice in expressing their support.

With all this support, I could be tempted to press this amendment. The Minister assures us that the Government have the power, under Clause 1, to provide advice. This intention should perhaps be promoted more clearly to the agricultural sector. I thank her for her remarks and wider explanations. However, in agreeing to withdraw this amendment, I call on the Government to keep it in mind as the Bill is returned to the other place for further consideration.

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[Baroness Bloomfield of Hinton Waldrist (Con)]

On Amendment 31, I reassure the noble Baroness that the Government will fully take into account the proposed steps and goals of environmental improvement plans, including the 25-year environment plan, when they determine the strategic priorities that will sit within the multiannual financial assistance plans, so the amendment is simply not necessary.

The Government are absolutely committed to achieving their aim of leaving the environment in a better state than when they found it. That is why they are seeking to legislate for environmental improvement plans in the Environment Bill that is currently in the other place in order to drive forward long-term improvements to our natural environment. The 25-year environment plan will be adopted as the first statutory environmental improvement plan and the Government expect it to set the benchmark for future EIPs.

The noble Lord, Lord Krebs, asked a characteristically cogent question about the lack of a proper system of measurement, as identified by the Natural Capital Committee. We are engaging with stakeholders, scientists, economists and environmentalists, including the Natural Capital Committee, to develop comprehensive indicators to measure progress towards the goals set out in the 25-year environment plan.

The planned introduction of the ELM scheme under Clause 1 of the Bill clearly demonstrates the Government’s commitment to look at wider environmental objectives when setting their strategic priorities for funding under their multiannual financial assistance plans. Indeed, the ELM scheme will be a key mechanism for delivering the environmental goal set out in the 25-year environment plan by providing farmers and other land managers with public money for the delivery of multiple public goods.

There are six key public goods that the ELM will help to deliver that correspond directly with goals set out in the 25-year environment plan: namely, clean air, clean and plentiful water, thriving plants and wildlife, a reduction in and protection from environmental hazards, mitigation of and adaptation to climate change, beauty, heritage and engagement with the environment. Defra’s ELM team is currently working on understanding the full range of actions that the scheme could pay for in order to deliver across all the goals in the 25-year environment plan.

Should there be any changes to the plan or a future environmental improvement plan, the Government will review the ELM scheme to ensure that the public goods that it is funding remain in line with delivering the priority goals and commitments that the Government have set out in the plan. The Government will be publicly accountable for the delivery of the strategic priorities in both its multiannual financial assistance plan and the environmental improvement plans. This House will of course have the opportunity to scrutinise the drafting of provisions for the environmental improvement plans when the Environment Bill reaches this House.

I had hoped that with this reassurance I would be able to persuade the noble Baroness, Lady Jones of Whitchurch, to withdraw her amendment. However, I cannot make the commitment that she seeks to table a government amendment at Third Reading.

[Baroness Jones of Whitchurch (Lab)]

My Lords, I thank all noble Lords who have added their support today. As the evening gets later, we seem to be finding more and more consensus around the Chamber, which is very welcome.

I particularly thank the noble Lord, Lord Krebs, who rightly reminded us that, as the Natural Capital Committee flagged up, proper systems of measurement are absolutely crucial in terms of the future of environment plans and the crossover with our agricultural activities. We have to have proper measuring systems to measure outcomes and to measure success, but at the moment those links are not obviously made through legislation.

I thank the noble Baroness, Lady Parminter, for reminding us of the State of Nature report and the RSPB report. They make very depressing reading but show the scale of the task ahead and why the sorts of measures that are in our amendment are so important.

I am very grateful to the noble Earl, Lord Caithness. He is absolutely right that we do not know what the future holds, but we need to get farmers more guarantees and security for the future, and that is why we are attempting to build in those long-term connections. I am also grateful to him for pointing out that the amendment would not cost the Government anything; indeed, there is a very strong case for saying that the integrated policies that we are suggesting should be introduced might actually save the Government money. That should be a welcome outcome.

I say to the Minister that the Government can make commitments but, as noble Lords have often been reminded on other occasions and in other debates, the Government cannot commit future Governments. We are trying to build in a long-term connection between these two separate arms of Defra’s activity. Yes, I absolutely agree that ELMS will be a crucial part of delivering the 25-year environment plan, which is why it is important that that is in the Bill and that it has long-term resonance to it. The Minister was right to anticipate that I would not be happy with her response. I am sorry to say that I am not. I therefore wish to test the opinion of the House.

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

My Lords, I congratulate those taking part in this group of amendments on their stamina. Given the late hour, I will be brief. These two amendments in the names of the noble Lord, Lord Cameron of Dillington, and the noble Earl, Lord Devon, deal with assisting farming families through wider rural economy means. I have listened carefully to the interesting and informative debate we have had, and can agree with the majority of the comments made.

However, as the noble Lord, Lord Cormack, said during his contribution on the first group of amendments, this is the Agriculture Bill and should be primarily about land cultivation and management. This is a view shared by many, but not all, noble Lords who have spoken during the first day of Report.

I believe that the shared prosperity fund should support those in very rural areas and provide for them through RDPs, but wish that this should be confined to the transition period. I look forward to the comments on this group by both the noble Baroness, Lady Wilcox of Newport, and the Minister.

[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, I beg to move that we adjourn the debate on Amendment 43.

Consideration on Report adjourned.