Agriculture Bill

Baroness Bloomfield of Hinton Waldrist Excerpts

Report stage & Report: 2nd sitting (Hansard) & Report: 2nd sitting (Hansard): House of Lords
Thursday 17th September 2020 Lords Chamber

Perhaps when the Minister replies, she could clarify by what date we can expect to achieve access for all rural properties to full fibre broadband and say whether she is confident that this programme is on track and will meet that deadline. I look forward to her response.

[Baroness Bloomfield of Hinton Waldrist (Con)]

I thank the noble Lord, Lord Holmes, for tabling this amendment which seeks to use the Agriculture Bill to provide for new socioeconomic support programmes to help fund improved broadband connectivity and digital skills in rural areas beyond the end of the current rural development programme. He is indeed a champion of addressing the very real digital divide.

I reassure this House that we recognise the importance of the issue that this amendment raises. This Government are determined to connect every home and business to the fastest broadband speeds available. As the noble Baroness, Lady Jones, has just said, access to digital is key to helping all rural communities build resilient modern businesses, as well as supporting them in their daily lives. Indeed, the Covid-19 pandemic has shown the integral role that digital connectivity plays in our daily lives, economically, socially and in continuing to deliver essential public services. The Government are investing record amounts to level up digital infrastructure across the UK. We are already connecting some of the hardest-to-reach places in the country, including through the superfast broadband programme and the £200 million rural gigabit connectivity programme. The Government want nationwide coverage of gigabit-capable broadband as soon as possible.

We have also announced £5 billion of public funding—not just in principle; it has been announced—to close the digital divide and ensure that rural areas are not left behind. Only last week, we announced that more than £22 million of additional funding is being invested in the UK Government’s broadband voucher scheme, which subsidises the cost of building gigabit-capable broadband networks to hard-to-reach areas. The Government are working with mobile network operators to deliver mobile connectivity improvements through a shared rural network. Much is therefore already in place to improve connectivity in rural areas, and we have already started the 5G rollout.

We also recognise the importance of improving digital skills in rural areas. There is a wide number of initiatives to support this, including the digital skills partnership launched by the Department for Digital, Culture, Media and Sport in 2017, to bring together organisations from across the public, private and charity sectors to work together to close the digital skills gap at a local level. Although the current rural development programme allows for support for broadband and digital skills, these wider government initiatives are the key funding mechanisms for broadband connectivity and digital skills. However, we are also committed to supporting rural communities through post-EU exit funding and the UK shared prosperity fund, which will play a vital role in supporting rural and coastal communities in recovery and renewal from Covid-19.

As set out in the manifesto, the Government intend to introduce the UK shared prosperity fund to replace EU structural funds. Defra officials are working closely with the Ministry of Housing, Communities and Local Government, which leads on its development, to ensure that its design takes account of the dynamics of rural economies and the challenges faced by rural communities. The final decisions about the quantum and design of future socioeconomic funding will take place after the upcoming cross-government spending review.

With these assurances, I hope that the noble Lord, Lord Holmes, will feel able to withdraw his amendment.

[The Deputy Speaker (The Earl of Kinnoull) (Non-Afl)]

I have received no requests for further short questions. Accordingly, I call the noble Lord, Lord Holmes of Richmond.

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[Lord Grantchester (Lab)]

I thank the noble Lord, Lord Carrington, for returning to the subject of crisis management in his amendments. The clauses in Chapter 2 bring further into domestic legislation the powers that the European Commission exercised to provide emergency assistance in extreme market circumstances. The Secretary of State may modify the retained direct EU legislation from the withdrawal Act. This would usually involve intervention on storage. At this stage, once again, as I join another day’s proceedings on the Bill, I declare my interest as recorded in the register as being in receipt of funds from existing systems derived from the CAP.

We noted the Minister’s reply in Committee that

“farmers already manage the effects of fluctuating everyday weather conditions”,

and that the existing powers contained here and elsewhere

“are sufficiently broad to ensure that agricultural producers will be covered”

should it be necessary to provide emergency financial assistance

“due to exceptional market conditions”—[Official Report, 21/7/20; col. 2184.]

brought about by unforeseen economic, environmental or welfare factors.

The term “chronic conditions” is interesting, as this would suggest exceptional circumstances becoming endemic and longer lasting. This would suggest that the market would need to adapt on a wider basis after any exceptional market disturbances caused by economic or environmental factors had been provided. It would suggest that the adverse effect on the price achievable for agricultural products may not return to normal. This circumstance would become subject to far more extensive dialogue and analysis, and when such a situation may warrant the actions wanted by the noble Lord, Lord Carrington, needless to say it would be controversial and subject to much debate.

We understand that Welsh Ministers are aware of these details and have not drawn attention to any aspect with which they are uncomfortable. The Minister has advised the House that the Welsh Government have agreed to these provisions; that would be our position also. We are generally content with the current drafting. I thank the noble Baroness, Lady Scott, for her remarks, which reflect many of our thoughts.

[Baroness Bloomfield of Hinton Waldrist (Con)]

I thank noble Lords for their contributions to this short debate.

I recognise the concern to ensure that farmers in England and Wales are protected against acute and chronic disturbances, including those caused by natural phenomena. The exceptional market conditions powers could be used to address acute and severe market disturbances caused by natural phenomena, such as extreme weather, so long as there is an adverse effect on the price achievable for one or more agricultural products. I hope that that reassures my noble friend Lord Northbrook.

The UK Government and Welsh Ministers are confident that the existing powers are sufficiently broad to ensure that agricultural producers will be covered should they need financial assistance due to exceptional market conditions caused by economic, environmental or other factors. The current Covid-19 pandemic is a disturbance caused by environmental factors and is exactly the type of exceptional circumstance that these new powers are intended to address. We could not have foreseen that this pandemic would be as wide-ranging or prolonged as it has been, and farmers could not have been expected to prepare for the disturbances in daily life that it has caused. I feel confident in saying that if these exceptional market conditions powers were at our disposal now, the Government could have used them to support farmers during these difficult times.

The particular powers in respect to England, in Clauses 18 and 19, and in respect to Wales, in paragraphs 6 and 7 of Schedule 5, are framed to deal with unforeseen short-term shocks to agricultural markets rather than chronic conditions. These powers allow Ministers to act swiftly to deal with a crisis situation. These amendments would lower that bar and risk creating open-ended powers that allow the Secretary of State to make payments to farmers in much wider and undefined circumstances.

In most cases, farmers already manage the effects of fluctuating weather conditions. There are also powers in existing legislation that allow the Government to act in exceptional circumstances to support farmers in the event of extreme weather conditions. For example, the Natural Environment and Rural Communities Act 2006 could be used to make one-off payments to farmers affected by extreme weather. In response to recent flooding, as my noble friend Lady McIntosh acknowledged, the UK Government launched a new farming recovery fund for England, using powers under the NERC Act.

I have some details about the fund because I was interested to find out why some claims were not being met. I am afraid that I do not have the numbers here for my noble friend but I commit to writing to her with the details of the scheme, which are quite complex, and to furnish the numbers on how many grants have been made available. When I write, I will of course let noble Lords have a copy.

The Government want to encourage farmers to manage their own risk and become more resilient to foreseeable and longer-term disturbances. Elsewhere in the Bill, there are provisions to support farmers to improve their productivity, as well as to provide financial assistance for the delivery of public goods. For example, the Government will help farmers to invest in equipment, technology and infrastructure, and will support high-quality research to promote innovation and productivity in agriculture, horticulture and forestry. Part 3 also sets out powers to strengthen fairness and transparency in the supply chain. This will enable food producers to respond more effectively to market signals, strengthen their negotiating position at the farm gate and seek a fairer return.

I hope that I have given sufficient reassurance and that the noble Lord will feel able to withdraw his amendment.

[The Deputy Speaker (Baroness Finlay of Llandaff) (CB)]

I have received a request from the noble Lord, Lord McCrea of Magherafelt and Cookstown, to ask a short question of elucidation.

[Lord McCrea of Magherafelt and Cookstown (DUP) [V]]

To clarify, does the Minister believe that the term “exceptional adverse conditions” covers exceptional events such as extreme weather and serious diseases, which can cause major financial problems for farmers and food security? Does this Bill cover them?

[Baroness Bloomfield of Hinton Waldrist (Con)]

I assure the noble Lord that this Bill will cover those situations.

[Lord Carrington (CB)]

My Lords, I thank all noble Lords who have participated in this short debate and, of course, the Minister.

I say to the noble Baroness, Lady Scott of Needham Market, that, in moving this amendment, I have the support of the CLA, the NFU and the TFA, so it is a matter of general concern to all farming organisations.

We have heard several examples of problems that have required assistance, whether in Richmond, Sri Lanka or elsewhere. The contribution made by the noble Lord, Lord Inglewood, was extremely interesting. His emphasis on farmers’ reliance on income from farming is certainly something that we should bear heavily in mind, because that is what the whole industry is about; it is not about ELMs. As I understood it, the noble Lord’s concern was very much to do with making quite sure that the Government understand the cash-flow implications of these issues and the need to work fast to resolve them.

As has become clear from all the questions we have heard, my real point on this issue is that there is a lack of understanding of what is covered by this clause. The last question very much indicated that that is the case. However, we have received assurances from the Minister. I do not believe that it is worth my taking this any further, so I beg leave to withdraw the amendment.

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[Lord Grantchester (Lab)]

I thank the noble Lord, Lord Empey, for his amendments, for the significance in which he holds them as necessary for the Bill, and for leading the House in returning to Clause 27 on fair dealing obligations. I am sorry he has not been able to stay tonight to make his case due to personal circumstances, and I hope all continues well. Nevertheless, I thank the noble Baroness, Lady McIntosh, for stepping in and moving his amendment. I concur with much of what she said. The distribution of market returns from food between the primary producer and the rest of the supply chain, especially in regard to the retail sector, certainly appears unbalanced. The proportion returned to the farmer has steadily declined over many years.

That regulation is needed to ensure further provision to introduce a greater measure of fair dealing obligations on the supply chain is recognised in Clause 27. Following the establishment and workings of the Groceries Code Adjudicator, the specific task of monitoring relationships between the UK’s largest supermarkets and their direct suppliers has proved very effective. I would go so far as to say it has proved critical in delivering effective change down the supply chain.

We would not be able to support the noble Lord should he wish to press his amendment. The specific details of each statutory code are being developed in consultation with industry and will be set out in secondary legislation. It will be extended across all sectors of agriculture. This is already in progress.

[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, I am grateful to my noble friend Lady McIntosh for introducing this amendment on behalf of the noble Lord, Lord Empey. I confirm that my noble friend Lord Gardiner has agreed to meet the noble Lord, Lord Empey, at the earliest opportunity.

There is no doubt that the Government will use these powers. The introduction of fair dealing obligations is vital in the creation of a more equitable supply chain. This is a point on which there is wide agreement. However, the Government believe it is equally important that these obligations are appropriate and proportionate and produce the right outcomes.

To ensure this, the Government intend to consult industry before regulations are made, to ensure that they are properly tailored for the issues at hand. In this regard, a UK-wide consultation exploring contractual issues in the dairy sector has recently been concluded. The consultation invited a broad range of views about future regulations, asking specific questions about various issues. Some of these issues, such as contractual exclusivity, are almost unique to the dairy sector. The Government intend to repeat this approach for any future exercise of the powers in Clause 27, allowing the views from industry and other stakeholders, often about very detailed sector-specific issues, to inform final decisions.

The introduction of blanket obligations across the whole of UK agriculture would hinder the ability to reflect the specific nuances of each sector and potentially fail to address the specific problems experienced by particular types of producer. Also, given that certain agricultural sectors are far better integrated than others, comprehensive obligations could ultimately lead to provisions being introduced into sectors where they are simply not required.

I hope I have given sufficient reassurance and ask my noble friend to withdraw the amendment on behalf of the noble Lord, Lord Empey.

[Baroness McIntosh of Pickering (Con)]

I am most grateful to those who have contributed to this debate and am sure the noble Lord, Lord Empey, is grateful for the opportunity to have put forward his views and the sentiments described in these two amendments.

My noble friend is absolutely right that the consultation with the interested parties that has just concluded will be crucial in the development and implementation of the regulations. It would be helpful to have confirmation that these responses will be available on the web so that we can look at them when it comes to implementing regulations before the House at that time.

At this moment, given the confirmation of a meeting with my noble friend Lord Gardiner, I am sure it is the wish of the noble Lord, Lord Empey, with the leave of the House, to withdraw the amendment.

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

We might not strictly be noble friends but I am grateful to my noble compatriot Lord Wigley for tabling Amendment 68, allowing a brief discussion of how the changes contained in Clause 32 will impact on the devolved Administrations. I agree with my noble friend Lord Rooker that, despite the better efforts of some people—Ministers and officials in his Government—generally people do not do devolution 20 years on.

I am also grateful to the noble Duke, the Duke of Montrose, for his Amendment 68A, which is designed to probe how these traceability provisions will work as animals or their meat move across the UK’s internal borders. I understand that, although agriculture might have always been devolved in a theoretical sense, the UK Secretary of State has, in many areas, tended to act on behalf of all four nations.

These provisions on the identification and traceability of animals are important, and I am sure that the current drafting has the approval of the devolved Administrations. Indeed, I will pass on the Minister’s earlier kind comments to my good friend the Minister for Environment, Energy and Rural Affairs in the Senedd Cymru. However, I would be grateful to the Minister if, in her response, she could shed greater light on the points of detail raised by those who have tabled these amendments.

[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, I thank the noble Lord, Lord Wigley, for his amendment, and I am very grateful to him for his advance notice of the points that he made. I will deal with Amendment 68A, in the name of my noble friend the Duke of Montrose, at the same time.

As the noble Lord, Lord Wigley, rightly observed, Clause 32 provides that the Secretary of State may assign functions to a body relating to, first, collecting, managing and making available information regarding the identification, movement and health of animals, and, secondly, the means of identifying animals. These functions are vital for the purposes of disease control, for complete movement traceability of all animals across UK borders and for UK trade negotiations with international partners. The meat and livestock sectors have championed this new service and are strongly supportive of it.

In Committee, we introduced a government amendment providing that the Secretary of State secure approval from the devolved Administrations for orders assigning functions exercisable in relation to Wales, Northern Ireland or Scotland to the AHDB, such as the handling of movement data shared with the AHDB by those Administrations. We have always said that we would engage intensively with the devolved Administrations prior to making any UK-wide orders.

The wording in Section 89A(2) of the Natural Environment and Rural Communities Act 2006, as inserted by Clause 32, requires the Secretary of State to seek approval from the devolved Administrations for making orders assigning functions exercisable in those Administrations. Where any such function is assigned, it will be following full discussion with, and approval from, the devolved Administrations. These discussions will give the opportunity for any further concerns to be raised. Therefore, any appropriate limitations on species covered or geographical extent for any function relating to identification and traceability of livestock will be specified in the order and, I repeat, subject to approval from the devolved Administrations.

Regarding how livestock traceability will work between UK Administrations, each Administration will run its own multi-species traceability service. Currently, there is a GB-wide service for cattle and a service for pigs in England and Wales, but in the future, traceability will be fully distributed. The Agriculture and Horticulture Development Board needs to be able to process movement data on animals that are not in England, or that have crossed borders within the UK, to provide a complete picture of an animal’s lifetime traceability in disease-control situations. This is termed “the UK view”. It will enable livestock identification and movement data collected by each Administration to be seen by others and to be available to veterinary officials in all UK Administrations. I hope that this reassures my noble friend the Duke of Montrose.

I take issue with the assertation by the noble Lord, Lord Rooker, that this Government do not do devolution. As the Lords’ spokesperson for Wales and someone who is proudly Welsh, I assure him, and the noble Baroness, Lady Wilcox, that we pay careful attention to preserving the devolution settlement in all three departments of which I am Whip.

The AHDB will also run the livestock unique identification service on behalf of England and Wales. This controls the issuing of official individual identification numbers to animals. All data will be handled in accordance with data sharing agreements and protocols agreed by all UK Administrations. No Administration will be able to use data outside the terms of that agreement.

My noble friend Lady McIntosh of Pickering asked about the status of the negotiations on the common framework. In the last debate, my noble friend the Minister said that the UK Government have been working closely with the Welsh Government, the Department of Agriculture, Environment and Rural Affairs in Northern Ireland, and the Scottish Government, to develop a UK agriculture support framework. We expect to be able to agree this soon and we will update the House shortly.

I believe that this provides the assurance that the assignment of functions by the Secretary of State under this clause will be fully accountable to the devolved Administrations. With these assurances, and my belief that there is genuinely no clearing up necessary, I ask the noble Lord, Lord Wigley, to withdraw his amendment.

[Lord Wigley (PC) [V]]

My Lords, I am very grateful to the noble Baroness for her response, and to the noble Duke, the Duke of Montrose, the noble Baronesses, Lady McIntosh, Lady Northover and Lady Wilcox, and the noble Lord, Lord Rooker, for their input in this debate.

Quite clearly this is not a subject area where one is seeking controversy; rather one is seeking to resolve a practical problem which might arise if it is not planned for in a way that avoids such eventualities. There must be clear demarcation of responsibility for all four bodies within the UK that have various responsibilities in these fields. They have to know what their responsibilities are and how far they go. To the extent that from time to time there has to be some cross-border activity, by the nature of the market, there must be clear ground rules on who does what and who communicates with whom.

To the extent that the Welsh Government have indicated that they see a way forward on this, that is fine, provided that it is the same interpretation on the other side of Offa’s Dyke, and in Scotland and Northern Ireland in relation to their powers. If we can get a situation in which it is clear to all what their responsibilities are—where they start and where they end—we can avoid difficulties. If we do not, we will find ourselves in quite a complex situation with a lack of clarity with regard to responsibility.

I conclude with this. There is a saying, particularly in the farming fraternity, that good fences make good neighbours. In this instance, there has to be clarity, understood by all, on who is responsible for what fence and for what function. Having said that, I beg leave to withdraw the amendment.

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[Lord Inglewood (Non-Afl)]

My Lords, as a number of noble Lords may know, I am a livestock farmer, and if you are a livestock farmer you have to try to ensure that the animals in your care have the highest levels of welfare. It seems to me that that is axiomatic, and I believe that, as a general proposition, it is incumbent on all us to treat animals of all kinds properly, whether farmed animals, domestic pets or whatever other category they may fall into. My concerns about the previous three amendments are that, quite honestly, they are very blunt instruments and I could not support them in the form they were drafted, for the kinds of reasons that were made clear by the noble Duke, the Duke of Montrose, and the Minister.

I remember many years ago there was discussion, when I was a Member of the European Parliament, about whether it was appropriate to introduce the concept of sentience into the legislative codes of the Union in order to underpin and safeguard the position of animals. At that time, I am prepared to admit that I was unsure about that, but since then, I am beginning to think that I was wrong. I do not believe that animals have rights as such, certainly not in the sense that we have human rights, but I do think, as I have explained on previous occasions, that humans have responsibilities—indeed, they should be legal obligations —towards animals and that these should be enforced. Therefore, I have come to the conclusion that something along the lines that we are discussing tonight, and was debated inter alia in the general election campaign, is appropriate, because it means that we can deal with these issues in a much more targeted and specific manner. I think that this would be much more beneficial, both for the society as a whole and for animals, than just simple, very broad, blanket statements, which is the approach that some people have adopted.

[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, I beg to move that the debate on Amendment 74 be adjourned.

Consideration on Report adjourned.