Common Agricultural Policy

Baroness Quin Excerpts

Thursday 18th November 2010 Lords Chamber

[Baroness Quin]

My Lords, I, too, congratulate the noble Lord, Lord Greaves, on introducing this debate today. Like many noble Lords, I agree that it is timely, although it might have been even timelier tomorrow after having a chance to look at the Commission’s latest communication. However, as the noble Lord, Lord Plumb, and others have reminded us, we helpfully had a leaked version of the paper some time ago. I do not know whether the Minister can inform us how similar the new document will be to the old one, but I imagine that there is a great deal in the leaked version that will continue to be in the version published today.

It has also been a very well informed debate with many Members of your Lordship’ House showing their knowledge of the subject, which in many cases goes back a long way. There has been reference to the past and the history of this policy. The noble Lord, Lord Williamson of Horton, gave us a particularly knowledgeable account of that. Certainly, he reminded us of some of the worst aspects of the old policy, particularly in terms of export subsidies, which harm third-world countries, surpluses and the environmental negative effects of many of its aspects.

We know, of course, that some farmers benefited very much from the old policy but I am also aware that many farmers in sectors such as the pig and poultry industries and horticulture not only did not receive support but frequently found themselves exposed to the full blast of EU competition rules limiting state aids and so on. Therefore, traditionally one aspect of the policy was that it was highly discriminatory, even within agriculture, and that often had very unfortunate effects.

My noble friend Lord Wills quite rightly said that often there is insufficient opportunity to scrutinise the policy as much as we would like. I certainly share the frustration of some noble Lords that, particularly in certain parts of the press, the debate seems not to have moved on at all and that the policy is frequently described as though it has not changed, whereas in fact many considerable changes have taken place over the years. Some of those changes have involved a significant switch away from production support—the decoupling process that has been referred to—and the emergence of the Second Pillar. That was a very important development in shaping people’s attitudes towards how the CAP might evolve in the future—certainly in terms of it being more of an agricultural and rural development policy, a way of rewarding and incentivising good environmental practice, supporting modernisation and diversification, helping farmers to develop new markets, bringing farmers closer to existing markets through marketing and commercialisation help, promoting energy crops and alternative energy systems, and in general promoting agricultural and rural development in a way that did not discriminate against certain sectors of agriculture and did not have the ossifying tendencies that the old agriculture system certainly had. We have also seen a reduction in export subsidies, although some of those regrettably persist and have negative effects. We have also seen a declining share for agriculture in the overall EU budget, and I hope that that process will continue.

We have to look at the Commission’s proposals in the current context, the first aspect of which is the financial crisis and the budgetary crises that Governments across Europe are facing. I think that the public are willing to pay for environmental and countryside policies, but they want to see clear benefits and a clear delivery of public goods in the process. Obviously they want a policy that helps meet the overall environmental commitments that we have entered into. Food security is another important issue, as the noble Earl, Lord Cathcart, said; and the need for increased food production if world food needs are to be met is a very important aspect of this debate.

In the few minutes that I have, I would simply like to press the Government on their view as they approach these negotiations. I rather agree with the noble Lord, Lord Dykes, when he says that people’s ideas on the future of agricultural policy are increasingly coming together. I think that there is more consensus than there used to be, and looking at some of the briefing provided to us today by the NFU, the CLA, the RSPB and so on, I was struck by many of the common aspects. There are certain differences, but there is more of a common approach than I recognise from the past. The Minister is therefore in a more fortunate position in starting these negotiations and finding an outcome which we hope will suit the UK and its needs.

In the leaked document—and I think it is likely to be maintained in the document today—there are basically three options, moving from an approach of very little change to one of more radical change. To which of the three approaches are the Government attracted at the moment?

Like one or two other speakers I would also like to raise the issue of co-financing. I understand that there is nervousness among our own farmers as well as farmers elsewhere that it could mean that if Governments do not put in their own share, funding could be at risk and there could be discrimination between countries of the EU. Yet at the same time we have seen some co-financing of regional and other schemes in the EU that can be successful. What is the Government’s thinking on this issue?

A number of noble Lords referred to large farms. I believe that we have to consider this question in a fairly subtle way. It is not just a question of big farms versus small farms but also of whether the subsidies to particular farms can be justified given the overall circumstances. I agree with my noble friend Lord Wills and the noble Lord, Lord Dykes, about what the public regard as unfairness in excessive payments. At the same time I would not want to say that it is the fault only of large farms as such. We have to look at this in a more subtle way and decide what should be supported and what should not.

I agree strongly on the point about agricultural research which a number of noble Lords mentioned. I hope the Minister will address that point. I would also like him to address the future for hill farmers and the LFA, a subject which I know is of great interest to the noble Lord, Lord Greaves, and many others around the Chamber. We would like the Government’s view on whether these new areas of natural constraints are the same thing, or whether this is a definition that might go wider. I would also like to say very strongly that we do not want any of the environmental payments to be jeopardised. I hope that the funding cuts for Natural England which the Government are introducing will not undermine the good work that Natural England is doing with farmers in delivering environmental benefits.

I wish the Government well in these negotiations because they are important to our consumers, our farmers and indeed to all of us who love and value our countryside and who want to see a thriving rural economy within the overall economy of our country.