Direct Payments to Farmers (Reductions and Simplifications) (England) (Amendment) Regulations 2021
Baroness Jones of Whitchurch Excerpts(3 years, 8 months ago)
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Baroness Jones of Whitchurch (Lab) [V]
My Lords, I thank the Minister for his helpful introduction to these SIs and thank all noble Lords who have contributed to this debate this afternoon.
As the Minister said, the SIs represent an important step in the transition from the old CAP regime to the new financial assistance proposals based on public money for public goods, which we spent many happy hours debating during the passage of the Agriculture Bill. Undoubtedly, the Government have taken on a huge task in attempting to draw up the details of a new funding regime, which needs to be robust in its systems of accountability but also fair to those who have to navigate it.
The Path to Sustainable Farming, published last November, and now of course the launch of the sustainable farming incentive pilots, are useful first steps. However, as many noble Lords have illustrated in this debate, as each building block of the transition is announced, it answers many questions but raises even more. With that in mind, I have a number of questions which flow from these SIs.
First, the direct payments to farmers SI provides for the reduction in direct payments of between 5% and 25% in 2021. I think it is fair to say that this announcement last year was received with some dismay by the farming community, given that they were being asked to take a payment cut without any chance of claiming under the new sustainable funding regime until 2022; in other words, it is an absolute cut. I would be pleased if the Minister could explain why it was necessary to proceed on this basis rather than to run down access to one fund and increase access to the new fund on a balanced basis. It seems rather provocative at a time when the good will of the farming community to embrace the new regime is absolutely essential. Can we be clear: have those savings gone into a ring-fenced pot of money, and can we be assured that they will be used only for funding the three tiers of ELMS as they are rolled out in the coming years?
Also, as the Minister knows, the details of the sustainable farming incentive pilots announced this month have only eight categories of activities for which payments can be made via the pilots. These seem quite limited in scope. Can the Minister update us on whether the timetable for the rollout of other schemes, which might provide other new opportunities for farmers to access grant funding, is still on track? In particular, given the economic hardship being experienced by many farmers, can he confirm that details of the farm resilience scheme—phase 2—which was announced earlier, will still be provided this month, with a start date of May 2021?
Also, as has been said, this SI deals only with the reductions in direct payments for the year 2021. We know that the original plan was for this to be a progressive reduction year on year. Is it still the plan that future years’ reductions will come before us each year as the transition continues to be rolled out, rather than allowing it to be done on a more obvious long-term planning basis, perhaps grouping a number of years at a time?
The Agricultural (Financial Assistance) Regulations 2021 set out the principles on which financial payments will be administered. I think it is fair to say that this is an enabling SI which puts all the onus on the Secretary of State to devise a scheme with more flexibility and fairness than was perceived to be applied by the CAP regime. However, the devil is in the detail, and we do not have that detail before us today. There is a great deal of trust resting on the shoulders of the Secretary of State to create a less bureaucratic and less burdensome system for applying and checking claims. In fact, as my noble friend Lord Rooker pointed out, rather worryingly, it says on page 4 of the EM:
“The instrument does not impose duties that are significantly more onerous than before”.
I hope that the opposite will be the case and that people applying for financial assistance will find the regime more accommodating and user-friendly. However, if I am honest, the track record of Defra does not bode well on this, and the recent experience of hauliers and exporters to the EU is testament to that.
Also, I think I am right to say that the Rural Payments Agency will administer the claims. Can the Minister explain what extra training and support it will receive to ensure that the envisaged light-touch regime is actually in place? Does it have sufficient staff to make individual determinations of claims on a more flexible and common-sense basis? Who exactly will provide the independent appeals process for those who feel that they have been dealt with unfairly? Can we be assured that they will be truly independent? Is the “public-facing Defra database” of payments already in existence, or will this require a new database separate from CAP, with all the ensuing problems that we have had with databases in the past?
Finally, as the noble Baroness, Lady Bakewell, says, we are told that the consultation on the SI ran from 4 August to 1 September 2020. By any stretch of imagination, this was a short consultation, of about three weeks.
I hope that the Minister can assure us that the proposals before us today have the confidence of the farmers and land managers who will be expected to roll out the new regime and make it a success. I look forward to his response.
Food Prices: Agricultural Policy
Baroness Jones of Whitchurch Excerpts(3 years, 8 months ago)
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Lord Gardiner of Kimble (Con) [V]
My Lords, we will champion free and fair trade and lower barriers at every opportunity. There are great opportunities for British food to be exported. In all the trade agreements that we negotiate, we will stand up for British farming and we will always ensure that the UK FTAs are fair and reciprocal. There is great opportunity for our domestic producers to export as well as have very strong production. Yes, I agree that free trade has been a great success over the centuries.
Baroness Jones of Whitchurch (Lab)
My Lords, as we know, the sustainable farming proposals are for England only. The devolved nations are drawing up their own proposals for reform, which could lead to differential food prices across the UK. Can the Minister update the House on the progress of the joint working group set up to carry out market surveillance and ensure that the UK internal market does not end up with winners and losers in the food price sector?
Lord Gardiner of Kimble (Con) [V]
My Lords, we have set up the UK agricultural support framework precisely to ensure that there is non-legislative collaboration and co-operation on agricultural support between the four UK Administrations. We will continue with this effective co-ordination and dialogue, so that the internal market of the UK is secure.
EU: Fishing Industry Negotiations
Baroness Jones of Whitchurch Excerpts(3 years, 8 months ago)
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Lord Gardiner of Kimble (Con) [V]
My Lords, until the TCA has been ratified in the European Parliament, the Partnership Council and its specialised committees will not start to function. We in the UK are ready for them to be operational and are making our plans.
Baroness Jones of Whitchurch (Lab) [V]
My Lords, in February last year the Secretary of State wrote to the EU Commissioner raising concerns about its decision to ban the import of class B live bivalve molluscs. In a subsequent letter to food exporters, dated 10 December 2020, it was confirmed that exports of these molluscs would be prohibited. So, why did the Secretary of State claim in a parliamentary Statement this January that he had only recently been made aware of the situation, when, seemingly, he had known and done nothing about it for a year?
Lord Gardiner of Kimble (Con) [V]
My Lords, I will look into this because that is entirely contrary to my understanding, which is that the European Commissioner made it clear that this was an acceptable trade. We were most surprised to hear that the export of live bivalve molluscs from class B waters would not be accepted. We think that that is not well founded in law and we have sought a meeting with Commissioner Kyriakides on this matter.
UK Shellfish Sector
Baroness Jones of Whitchurch Excerpts(3 years, 9 months ago)
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Lord Gardiner of Kimble (Con) [V]
My Lords, I agree with my noble friend’s tone. We seek to have a quick discussion with Commissioner Kyriakides about how this trade can resume. We do not believe that the legal interpretation that they are putting on the class B waters is correct. We are working very closely with stakeholders and the devolved Administrations: my right honourable friend the Secretary of State will have further discussions with the Welsh and Scottish Ministers tomorrow. We wish to resolve this matter. Of course, we want to ensure the smooth passage of exports of our excellent produce.
Baroness Jones of Whitchurch (Lab) [V]
My Lords, yesterday, the Minister was uncharacteristically reluctant to answer my question about compensation, so I will ask it again today: will the fishers affected by this EU ruling have access to the £23 million disruption fund, made available to other fishers whose markets have been disrupted? Will the Government consider increasing that fund now that so many fishers seem to be in need of that kind of compensation?
Lord Gardiner of Kimble (Con) [V]
My Lords, of course I shall seek to answer the noble Baroness’s question. The £23 million fund for financial assistance announced today is for those businesses that suffered a financial loss because of
“delays related to the export of fresh or live fish and shellfish to the EU during January”.
With our dialogue with the Commission, we seek to resume this valued trade from class B waters, which we think is completely justified under the law. What is more, many EU businesses have invested in depuration facilities, and that is what they wish.
UK Shellfish Exports
Baroness Jones of Whitchurch Excerpts(3 years, 9 months ago)
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Baroness Jones of Whitchurch (Lab) [V]
My Lords, in the Commons yesterday George Eustice once again tried to portray the fishing settlement as a good deal, whereas the truth is that it is unravelling as we speak. It is no wonder UK fishers feel angry and betrayed. You would have thought that the negotiations of the trade and co-operation agreement would have tied down the future access of live bivalve molluscs to the EU at the time of the agreement, rather than as an afterthought when damage to the sector has already been done. As a result, hundreds of tonnes of stock have had to be dumped and the multi-million-pound industry has ground to a halt.
These are more than teething problems. The future of the sector is at stake. The Minister has described the negotiations as technical discussions, but what is to stop the EU reopening other aspects of the fishing deal in return for a settlement on live molluscs? In the meantime, can the Minister clarify exactly what compensation will be made available to those whose livelihoods are affected by the loss of that EU market? Will they have access to the £23 million disruption fund made available for other fishers whose markets have been disrupted? Will the Government consider increasing this fund now that many more fishers appear to need compensation?
The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Gardiner of Kimble) (Con) [V]
[Inaudible]—to Commissioner Kyriakides, because we want to restore the trade in undepurated live bivalve molluscs. That is the issue here. We think that the interpretation that the Commission has come to is not correct, and we wish to have discussions with the Commission about it. A 25% uplift in fishing opportunities is an important part of the trade and co-operation agreement, and we will be working on that. As the Government have announced, not only is there a £23 million fund for those who have been in difficulty in these early stages but we will invest in a £100 million fund for fishing over the next three years. There is a lot of promise and a lot of opportunity for British fishing interests and the shellfish industry as well.
Genetically Modified Food
Baroness Jones of Whitchurch Excerpts(3 years, 9 months ago)
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Lord Gardiner of Kimble (Con) [V]
My Lords, GMO legislation is based on a precautionary principle that states that GMO environmental assessments must be risk-based. Evidence gathered during the consultation will inform risks on both action and inaction.
Baroness Jones of Whitchurch (Lab) [V]
My Lords, I declare an interest in Rothamsted Research as recorded in the register. We welcome the Government’s consultation on gene editing and the distinction drawn between genetic modification and gene editing. Can the Minister assure us that any changes in the regulation of gene editing will be balanced alongside policies to minimise the use of artificial pesticides and artificial fertilisers so that there will be a net gain for the protection of public health and the environment from any changes?
Lord Gardiner of Kimble (Con) [V]
My Lords, what the noble Baroness has said is why we believe there could well be environmental benefits from gene editing, whether they are reduced use of neutron additions, reduced use of chemical pesticides, increased crop yields or crops that are more resilient to climate change. These are the areas that, in an honest endeavour, we should be looking into and why the consultation is so important as part of the first phase before any change may occur.
Brexit: Farmers
Baroness Jones of Whitchurch Excerpts(3 years, 9 months ago)
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Lord Gardiner of Kimble (Con) [V]
My Lords, it is important that we have new entrants coming into farming. That is why we will consult and work on plans to introduce exit schemes for farmers who wish to retire, along with schemes to support new entrants. As part of the much wider advice and guidance, we will enhance the support to farmers, particularly as we champion skills and innovation. Many schemes are coming forward and it is very important that farmers understand what is available.
Baroness Jones of Whitchurch (Lab) [V]
My Lords, when launching the sustainable farming statement in December, the Government said:
“The changes will be designed to ensure that by 2028, farmers in England can sustainably produce healthy food profitably without subsidy”.
Is it this Government’s intention that 2028 will mark the end of subsidies for English farming, to be replaced by reliance on the market?
Lord Gardiner of Kimble (Con) [V]
What we said was that that would be the end of the direct payments system. We are now concentrating on a system of agri-environment and other support mechanisms, which we think are value for money. They will reward farmers for the provision of public goods.
Agricultural Products, Food and Drink (Amendment) (EU Exit) Regulations 2020
Baroness Jones of Whitchurch Excerpts(3 years, 10 months ago)
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Baroness Jones of Whitchurch (Lab) [V]
My Lords, I thank the Minister for his introduction and for his helpful briefing with officials beforehand.
This SI was approved using the procedure in place for reasons of urgency but it is nevertheless important that we give its content due scrutiny. As noble Lords have said, it covers a range of trade issues, focusing on their designation of origin or geographical indications. These can be hugely important in adding value to agricultural products, so it is important that we do all we can to protect the trading opportunities of UK producers. That point was very well made by a number of noble Lords in the debate, and we all have our own local produce that we hold dear.
The point on the particular problems across the Northern Ireland border, which was well made by the noble Baroness, Lady Ritchie, and the noble Lord, Lord Empey, seems to be a running theme in some of the debates we are having around Defra SIs. I hope that the Minister in his response will be able to provide reassurance that what I hope are teething problems across the border in the Irish Sea can be addressed in short order.
In the meantime, I have some specific questions. First, the Minister made reference to the trade and co-operation agreement. It is a lengthy document but can he clarify how we will implement its contents? Will there be a succession of SIs to deliver all the references to food and agriculture trade in the agreement and how do the Government intend to roll that agreement out?
Secondly, as has been said, the SI sets out the interim bridging arrangements to protect third-country GIs where a trade continuity agreement has been made but not ratified. There is no date for the end of the bridging arrangements, so can the Minister clarify when he anticipates that these interim arrangements will cease?
Thirdly, the Minister explained the actions necessary to protect Kumamoto rush as part of the UK-Japan trade deal. This involved having to create a separate GI project category. Given that that seems a rather bureaucratic way to approach this issue, has the department given any thought to rationalising and simplifying the GI product categories for the future so that we do not have to have a lot of separate categories for specialist products?
Fourthly, I was interested to read that a UK-USA wine agreement will into force on 1 February 2021—I had not been aware of that up until that point. I am sure that that is very welcome, but can the Minister explain how it feeds into the overall UK-USA trade negotiations? As we know, they have been subject to much press attention and remain unresolved. Is the plan that there will continue to be separate individual product agreements outside the main negotiations, along the lines of the one that clearly has been made on wine?
Fifthly, with regard to the trade and co-operation agreement, it seems that the proposal that EU wine will need to have a VI-1 certificate to be imported here is overly bureaucratic and not in the UK’s interests. Indeed, as a number of noble Lords said, the Wine and Spirit Trade Association has been in touch, saying much the same thing. In its briefing, it says that while it understood the need to have an import certificate from third countries while we were part of the EU, now that we have left it makes no sense for the EU legislation to be automatically rolled over, particularly when it disadvantages British importers and consumers. It goes on to say that annexe TBT-5 of the TCA says that either party “may” introduce wine certification but not that it is necessary. Can the Minister explain why it was felt necessary to introduce these measures at this time, and can he explain the timetable for renewing that decision given that there is so much disquiet about it?
Also, there are proposals in annexe TBT-5 for a self-certification system to be put in place. Can the Minister clarify when those arrangements will come into effect and whether he feels that this will indeed address some of the concerns that have been raised today? The annexe also states that no later than three years from the agreement, the parties will consider further steps to facilitate trade in wine between the parties. Does the Minister accept that, given the strength of feeling on this issue that has been raised in the debate today, that review should happen sooner rather than later?
We will return to the issue of organics in the debate later, when I will make my comments on that. I am pleased, however, that separate arrangements have been put in place to protect the EU market for UK organic exports. Part of this will need to be developing an identifiable UK organic logo in the longer term. In the meantime, I want to ask the Minister about the views of the UK Organic Certifiers Group. The EM says that it has been consulted on the proposals, but it does not say that it has approved them. Can the Minister clarify its views on the proposals before us today? I look forward to his response.
Organic Production (Organic Indications) (Amendment) (EU Exit) Regulations 2020
Baroness Jones of Whitchurch Excerpts(3 years, 10 months ago)
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Baroness Jones of Whitchurch (Lab) [V]
My Lords, I thank the Minister for his introduction and for the helpful briefing with officials beforehand. As he said, this is an important issue for the thriving organics sector in the UK and it is important that we do everything we can to support and grow the market, particularly in the EU. As the SI makes clear, this sector is worth £2.3 billion per annum to the UK economy, with exports worth £250 million a year. The UK undoubtedly has a respected reputation globally for the quality of its organic produce; it is vital that this is maintained.
As has been said, this SI was signed off on 31 December and appears before us on the “made affirmative” basis, as there was an immediate need at the end of the transition for continuity. We understand that argument, but I have a number of questions about the post-implementation of the SI.
On dates, we have seen several times in previous SIs a provision for a six-month transition before new customs and border control certifications come into effect, but this SI, at the end of paragraph 2.5 of the Explanatory Memorandum, refers to the UK recognising the EU and EEA as equivalent for the purposes of trade until 31 December 2021. Can the Minister explain why those dates differ from other applicable dates?
Also, in annexe 4 of the trade and co-operation agreement there are specific and separate arrangements for fostering trade in organic produce. It refers to the provision for labelling and equivalence being reassessed by each party by 31 December 2023. Could the Minister explain what is due to happen between 2021 and 2023? Is it intended that we would need a separate SI to provide that continuity for organic trade until December 2023?
Organic Farmers & Growers has signalled that, although the continuity until 2023 is welcome, it is only 36 months away and will leave many UK organic businesses unable to secure long-term supply contracts. Can the Minister say when the work to secure a long-term agreement will begin and when he thinks he will be able to give the growers the long-term certainty they need to access the markets?
Organic Farmers & Growers also raised concerns about the end of the UK trader scheme on 31 March, which facilitates the movement of goods from GB to Northern Ireland. It argues that it is not practical to produce daily certificates of inspection for every shipment. Can the Minister say whether it is intended that this scheme should be extended? Otherwise, many retailers will simply stop transporting organic goods to Northern Ireland.
As a number of noble Lords have said, it seems a missed opportunity that we do not yet have a UK organic logo agreed. While we understand the complexity of reaching agreement, it is hoped that this work can proceed at pace. However, we welcome the fact that the trade and co-operation agreement undertakes to protect the use of the EU’s organic logo and any UK logo when it is finally agreed. Indeed, continued use of the EU logo would enable UK producers to continue to use the well-recognised routes to market.
Meanwhile, could the Minister update us on any discussions he has had with the devolved Administrations on this issue? Have we had an indications as to whether they would be content to have one UK logo, or do they envisage having separate ones for each nation?
Whatever the outcome, I hope the Minister agrees that any solution should optimise our marketing and trade opportunities, and should therefore have widespread recognition and impact. This is particularly important in the context of the EU’s new €182 million fund to promote agri-foods outside the EU, much of which will focus on its Green Deal ambitions and the farm to fork initiative. Can the Minister say whether a similar UK fund is being considered to capitalise on our reputation for high standards and integrity, which are integral to our good farming practice? This should particularly benefit the organics sector. As other noble Lords said, if we do not move fast, we will get left behind in this area.
I do not have anything further to say. I look forward to the Minister’s response.
Fertilisers and Ammonium Nitrate Material (Amendment) (EU Exit) Regulations 2021
Baroness Jones of Whitchurch Excerpts(3 years, 10 months ago)
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Baroness Jones of Whitchurch (Lab) [V]
My Lords, I thank the Minister for his introduction and for the helpful briefing beforehand. As noble Lords have said, this is a hugely complicated issue. We accept that this SI in its current form is necessary to ensure that the marketing and trade of fertilisers with Northern Ireland can continue effectively in the short term.
We accept that it is important that UK manufacturers can trade products across GB and Northern Ireland using the same label. Can the Minister clarify that the existing regulatory standards will remain the same in GB and Northern Ireland? Can he also update the Committee on the checks currently taking place on the Northern Ireland border? We all have some sympathy with the points made by the noble Lord, Lord Dodds, and the noble Baroness, Lady Ritchie, about the problems occurring on the Northern Ireland border. I hope the Minister can assure us that urgent action is being taken to iron out some of the blocks and complexities at the border and that these will be resolved in short order.
The Minister has explained that we are in a period of transition regarding controls over future fertiliser policy and that a consultation is being drawn up. Although it goes beyond the scope of this SI, we would welcome such a review and an opportunity to ensure that the regulations are fit for purpose. As the noble Baroness, Lady Bennett, and other noble Lords have said, there is clearly potential for modernisation, based on the best science available, together with a greater understanding of the need to protect and enhance our soils. Can the Minister reassure us that any new proposals will maintain our commitment to the precautionary principle and to our high environmental standards?
As this is the first SI with which I have been concerned since the trade and co-operation agreement was signed in December, I wonder if the Minister can help me on a couple of other issues. Can he say how that detailed agreement will be dealt with going forward? Will it require us to revisit many of the SIs that we have already agreed? As noble Lords know, the trade and co-operation agreement is a very long document. Will its content have to be broken down in due course into primary and secondary legislation? In other words, will we have to go into the detail of this agreement at some point or will it be signed off as a whole? We are interested in the Defra elements, but it has a much wider spread. We would appreciate it if the Minister could help us regarding the state of that document, and I look forward to his response.