Tenant Farming

Calum Kerr Excerpts

Tuesday 10th May 2016 Westminster Hall

[Calum Kerr (Berwickshire, Roxburgh and Selkirk) (SNP)]

Thank you, Mr Hollobone, for the opportunity to participate in this debate. May I congratulate the hon. Member for Wealden (Nusrat Ghani) on securing it? I thought she made an excellent speech on the issues at play here. It is always welcome in a Westminster Hall debate, as in any debate, when constructive ideas and suggestions are put forward. This forum seems to lend itself better to that than the main Chamber, and that is something we should all consider.

The critical nature of the length and security of tenancies is emphasised by the fact that most tenancies are shorter than the Government period for averaging out profits. That speaks volumes about the need for action. The idea of bringing a long-term plan to farming made me smile. Hopefully it is a lot better than the long-term economic plan, which is clearly a work in progress. I congratulate the hon. Lady on kicking off the debate with lots of ideas, and I have no doubt the Minister was scribbling furiously.

The hon. Member for Strangford (Jim Shannon) is always a champion for Northern Ireland. I have not yet known him to get through a speech without mentioning a union. Quite often it is in my direction, but in this case it was the European Union. I congratulate him on being, as ever, a champion of Northern Ireland and giving us that important perspective as we consider what we should do.

The hon. Member for Eddisbury (Antoinette Sandbach) emphasised the importance of flexibility, and I agree. It is not necessarily a case of one size fitting all. Whatever we do, we should always consider that protection and support are needed for landlords as well as tenants. Rents are an important issue. I fear she is slightly more laissez-faire in her approach to that than I am, and certainly more than the Scottish Government are. I would like to see a lot more action from the Government.

Tenant farming plays a vital role across the UK, but in Scotland it is of particular importance. It accounts for 1.3 million hectares, amounting to more than 18% of our land mass. However, the sector has been declining for decades and has almost halved to just 24% of farmland since 1982. The new Land Reform (Scotland) Act 2016 is an attempt to breathe life into tenanting and to ensure that it thrives. It is also a critical component of the Scottish Government’s drive for a fairer, more equal and more socially just Scotland. According to the Scottish Tenant Farmers Association—they are not here today, but it is rather a longer journey for them—the new Act is

“the most significant reform to tenancy legislation since tenant farmers were granted security of tenure in 1948.”

A central part of the Act is ensuring fairness between tenants and landlords. The creation of a tenant farming commissioner will help with that process and, we believe, improve relations. There will also be a much fairer and more transparent system of rent reviews; improvements in end-of-tenancy compensation; a broadening of the class of relative entitled to succeed to a tenancy; and the creation of an exit route for 1991 tenants to assign their tenancies to new entrants or other farmers if the landlord does not want to buy them out. Assignations are a central feature of the Act, which seeks to protect them while accepting that it is an ongoing process that needs to be subject to regular review.

By taking those evolutionary and common-sense steps, the legislation will bring real and meaningful land reform, which will restore confidence to the sector, address many of the issues faced by tenant farmers and bring vibrancy and certainty. At the same time, and contrary to the claims of some, it should not deter landlords from providing new tenancies and will not materially disadvantage them.

Tenant farming and land reform will always be works in progress, but the Act is a highly positive step forward in Scotland. It will hopefully encourage investment in the sector, address long-standing concerns, build confidence and make our legislation fit for the 21st century. Tenant farmers deserve certainty, security and fairness. That needs to be embedded in legislation, and that is what we are doing in Scotland. Hopefully lessons can be learned for the rest of the UK too.