Agriculture Bill

Baroness Finlay of Llandaff Excerpts

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

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

We now come to the group beginning with Amendment 59. I remind noble Lords that Members other than the mover and the Minister may speak only once and that short questions of elucidation are discouraged. Anyone wishing to press this, or anything else in this group, to a Division should make that clear in debate.

Clause 18: Declaration relating to exceptional market conditions

Amendment 59

Moved by

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[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?

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

I remind noble Lords that, other than the mover of an amendment or the Minister, Members may speak only once and that short questions of elucidation are discouraged. Any Member wishing to press this or anything else in this group to a Division should make that clear in debate.

Amendment 62 not moved.

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

My Lords, it is a pleasure to follow the noble Baroness, Lady Ritchie of Downpatrick. I have added my name to Amendments 63 and 64 in this group, as I believe that the Bill needs to be much clearer on who will take responsibility for complaints into alleged non-compliance.

Fair dealing in agriculture is vital to the reputation of the farming industry, and the public need to be reassured that there is someone watching their backs. I thank the noble Lord, Lord Grantchester, for setting out the argument so clearly. The aim is to widen the remit of the Groceries Code Adjudicator, who is a truly independent person.

A “specified person”, as stated in the Bill currently, could be anyone. Can the Minister say who the Government had in mind to be this person? Would there be open recruitment, with advertising, or would this be an appointment through the old boys’ and old girls’ networks? The Groceries Code Adjudicator is a far better choice: a nationally recognised person who has a reputation and inspires trust and confidence. This is the proper person to take forward alleged non- compliance.

Amendment 64 sets out how the Groceries Code Adjudicator will interact with the Agriculture Bill in determining a complaint being carried out. I have not added my name to Amendments 65 and 66, but I fully support them. It is somewhat surprising that the Bill just refers to functions being conferred on “any” person. This does not fill me with confidence. Of course, this person must be competent and appropriate, and this should be in the Bill; otherwise, it might be somebody like me.

The noble Lord, Lord Grantchester, has spoken about fairness and contracts. Dairy farmers are at the start of the supply chain and need to be considered carefully. The noble Baroness, Lady McIntosh of Pickering, has tabled an amendment which would also give the Groceries Code Adjudicator responsibility for the supply chain in the regulatory clauses of the Bill. There seems to be a wish to achieve the same aim, as has been reiterated by the noble Baroness, Lady Ritchie of Downpatrick.

Given the very reasonable arguments which have been put forward this evening, I hope the Minister can give a positive response to this debate. I look forward to his response.

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

My Lords, the noble Baroness, Lady Jones of Moulsecoomb, had requested to come in, and I understand she has not been able to. Therefore, I now call the noble Baroness, Lady Jones, before the Minister responds.

[Baroness Jones of Moulsecoomb (GP)]

Thank you— I was scrubbed by mistake. I am sure your Lordships are very happy that I have been slotted back in.