Oral Answers to Questions

Caroline Spelman Excerpts

Thursday 24th November 2011 Commons Chamber

[Mr Peter Bone (Wellingborough) (Con)]

What recent steps she has taken on reform of the common agricultural policy.

[The Secretary of State for Environment, Food and Rural Affairs (Mrs Caroline Spelman)]

Having just heard the writ being moved, I am sure it would be the right thing to do to express our condolences to Alan Keen’s wife, Ann, whom we all remember, on behalf of the whole House.

The Government have commenced negotiations on the CAP reform proposals, which the Commission published on 12 October and which, for the first time, require the co-decision of the European Parliament. I recently met Agriculture Commissioner Ciolos, together with the Agriculture Ministers for the devolved Administrations, to ensure that all parts of the United Kingdom are taken into account.

[Mr Bone]

Our net contribution to the European Union in the last five years of the Labour Government was £19 billion, and in the next five years of this coalition Government it will be £41 billion—an increase of 116%, because Tony Blair gave away Mrs Thatcher’s EU rebate. At the time, he said that our net contribution would not increase because the European Union had promised massive reform of the CAP. Who was lying, Tony Blair or the European Union?

[Mrs Spelman]

That is precisely why the UK Government have expressed their disappointment that the proposed CAP reforms lack ambition. Although the commissioner correctly identifies food security and climate change as the two key challenges that agriculture faces, I regret that the proposals do not really address the great challenge. Therefore, we will seek to improve them to get the best possible outcome for taxpayers, consumers and farmers alike.

[Mr Denis MacShane (Rotherham) (Lab)]

The Secretary of State will recall that that great European, Socrates, said that a politician who does not know the price of a bushel of wheat should not be in the job. If we got rid of the CAP, we would have to have a BAP—a British agricultural policy. Knowing our farming community—a landowning community—and its control of top Tories, I suggest that the BAP would be far more expensive than the CAP.

[Mrs Spelman]

I think we are speculating wildly about the future of Europe. My job is to concentrate on getting an improvement in the reforms. It is important to appreciate that the underlying objective of the CAP is to provide good-quality food at a reasonable price. My Department is committed in its business plan priorities to producing more food sustainably, precisely to achieve that objective.

[Andrew George (St Ives) (LD)]

I am sure that the Secretary of State will agree that a primary objective must be a move from market-distorting production supports to supporting public goods, such as the environment and amenity. How much progress does she believe the CAP reforms are making in that direction? How do we ensure that that general direction of progress can be accelerated?

[Mrs Spelman]

That is a helpful question, as it enables me to share with the House the fact that we are on a journey with these proposals. We welcome the fact that the Commission wants to “green” the CAP. Taxpayers have every right to expect other public goods for the subsidy they provide. We feel that the “greening” proposals also lack ambition, and we want proper recognition of the fact that UK farmers go a lot further than those in a lot of other member states in providing stewardship schemes that make a real difference and provide environmental benefits that address problems such as the demise of species.

[Kelvin Hopkins (Luton North) (Lab)]

There is much talk of returning powers from Brussels to this Parliament and the British Government. Would the CAP not be a good policy to bring back to Britain? Could we not subsidise British farmers, even at the current levels, and save billions of pounds from our budget every year?

[Mrs Spelman]

The nature of the supplementary questions is ranging much wider than the remit of my Department. As I have said, my job at each one of these Council meetings is to get the best possible deal for consumers, taxpayers and farmers in the hon. Gentleman’s constituency. That is my duty.

[Michael Connarty (Linlithgow and East Falkirk) (Lab)]

2. What recent discussions she has had with the Secretary of State for the Home Department on the consultation on dangerous dogs.

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[Sheila Gilmore (Edinburgh East) (Lab)]

3. What recent discussions she has had with ministerial colleagues on the introduction of mandatory reporting of carbon emissions by businesses.

[The Secretary of State for Environment, Food and Rural Affairs (Mrs Caroline Spelman)]

I have had recent discussions with ministerial colleagues on the issue and I know that there is a lot of interest in it. There is an appetite in Government for it but, as the House will be aware, any policy has to undergo an impact assessment, which we are in the process of clearing.

[Sheila Gilmore]

There are only four months until the Government are obliged either to introduce carbon reporting or to explain why they have not. When the Members who previously sat on the Opposition Front Bench supported the proposal, they said that it would help economic growth. Why, in the present economic crisis, is it not being pursued more vigorously?

[Mrs Spelman]

Two things have emerged. We had more than 2,000 replies to the consultation, which showed that carbon is reported in very different ways. One challenge is to find a way in which it can be reported meaningfully so that investors know which company to invest in, because they understand the information they receive. Secondly, the Department for Business, Innovation and Skills is consulting on the content of company accounts—narrative reporting, as it is known. We need to synchronise the issue because carbon reporting would be in a set of company accounts. I perfectly understand the requirements of the Climate Change Act 2008 in that regard.

[Mary Creagh (Wakefield) (Lab)]

Climate change is the biggest market failure the world has seen and the Secretary of State’s decision on whether to introduce carbon reporting to correct the failure is imminent. That decision is a once-in-a-Parliament opportunity to create green growth and drive the development of low-carbon products and services across UK plc. With youth unemployment at record levels and mandatory reporting supported by Britain’s largest employers, how many jobs does she estimate would be created in the UK’s green economy if it was introduced?

[Mrs Spelman]

The hon. Lady shares entirely with me an appreciation of how important it is that we make progress in that area. She will have seen how the coalition Government have committed to challenging targets in order to change our economy to a low-carbon basis. In the spirit of being on the same page on this matter, I can say that I am keen to do what I can to transition the economy in that regard. On this specific question, however, I hope that the hon. Lady will appreciate that, as I said in my reply to the hon. Member for Edinburgh East (Sheila Gilmore), we need to synchronise carbon reporting in a way that investors can understand. At the moment, there are different requirements on companies to report in different ways. We need a meaningful measure of carbon reporting in the spirit of achieving that low-carbon economy.

[Mary Creagh]

The Secretary of State signally failed to answer my question. There is no estimate in the impact assessment of the number of jobs that the new products and services would create. When the global recession struck in 2008, Labour’s future jobs fund created green jobs for young people in wildlife trusts, country parks and green charities across the country, but they are now on the dole. Carbon reporting will help us to move to the low-carbon economy. When did she last sit down with the Chancellor, one to one, to discuss the autumn statement that he will make on Tuesday and how DEFRA will play its part in creating the conditions for green jobs and growth to tackle the crisis?

[Mrs Spelman]

I do not think it is my job to share in advance with the hon. Lady the content of the autumn Budget statement. As I just said, I share with her the clear vision about opportunities to create jobs if our economy is transitioned into a low-carbon economy. If her party felt so passionately about that, why did it not proceed with what she now claims we should be doing during its 13 years in office?

[Amber Rudd (Hastings and Rye) (Con)]

4. What recent discussions she has had with her EU counterparts on reform of the common fisheries policy.

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[Nick Smith (Blaenau Gwent) (Lab)]

7. What estimate she has made of the number of green jobs that will be created by implementation of the waste review.

[The Secretary of State for Environment, Food and Rural Affairs (Mrs Caroline Spelman)]

Britain’s waste and recycling sector is valued at more than £12 billion, employs 120,000 to 150,000 people and is forecast to grow by between 3% and 5% per annum over the next seven years. The waste review set us on the path to a zero-waste economy. It will support the sector’s transition from focusing on disposal to landfill to the greater reuse, recycling and recovery of waste material.

[Nick Smith]

If the Secretary of State adopted a 70% recycling target, as the Welsh Assembly has, an extra 50,000 private sector jobs could be created over the next four or five years. Why does England have a lower recycling target than Wales, Scotland and Northern Ireland? It has the weakest targets in the UK.

[Mrs Spelman]

As I have explained before, targets in specific areas can play a role in achieving a zero-waste economy, but they can produce perverse consequences. I recently attended the Waste and Resources Action Programme conference, where it was clear that the waste industry feels that one of the things that has driven innovation and change is the landfill tax. There is no question but that the new capacity through new technology to recycle more materials is an engine of growth in the economy.

[Jo Swinson (East Dunbartonshire) (LD)]

I should like to press the Secretary of State a little further on recycling, particularly on the recycling of packaging, because the Government have been too timid in their packaging recycling targets so far. We have been promised a consultation this year on more ambitious targets from 2013 onwards. We are nearly in December, so will she tell us when that will happen?

[Mrs Spelman]

I think that the hon. Lady would agree that the Courtauld commitment has helped, through voluntary agreements with different sectors of the economy, significantly to increase recycling targets. We have recently concluded new responsibility deals on packaging with the hospitality and catering sector. As part of that ongoing progress, I remain committed to the Courtauld process further extending into the community, and of course we will consult shortly on new opportunities as they arise.

[Gavin Shuker (Luton South) (Lab/Co-op)]

The incoherence of those two answers serves as testament to the fact that the waste review comes from a Department of missed opportunity. Put simply, green growth creates jobs. The economy is in dire straits. Growth has flatlined; confidence has tanked; and 1 million young people stand unemployed. My question is simple: what will the Secretary of State do about it?

[Mrs Spelman]

The hon. Gentleman clearly was not listening to the fact that the waste industry is a bright star in the economy, with growth rates of 3% to 5% per annum. One of the reasons the industry is so successful is the constant stream of entrepreneurship and innovation, as we increasingly see waste as resource. There is continuous progress in this area, and I think that he would agree that the landfill tax has been an important regulatory driver in helping to encourage that innovation.

[Pauline Latham (Mid Derbyshire) (Con)]

8. What discussions she has had with (a) her EU counterparts and (b) ministerial colleagues on the implementation of the welfare of laying hens directive.

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[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

9. What discussions she has had with the Secretary of State for Business, Innovation and Skills on (a) food prices and (b) support for British food manufacturing.

[The Secretary of State for Environment, Food and Rural Affairs (Mrs Caroline Spelman)]

I have, in the normal course of business, discussed food prices and support for food manufacturing as part of the Government’s growth review, and we continue to work with the Department for Business, Innovation and Skills and UK Trade & Investment to help boost growth, exports and efficiency in the whole food chain.

[Catherine McKinnell]

I thank the Secretary of State for that answer. Food manufacturing is very important to the north-east, especially to my constituency; firms such as Nestlé, Warburtons and Greggs play a really significant part in the local economy. What specific plans does her Department have, working alongside BIS, to support that vital sector, including through research and development and capital allowances, and by increasing exports, thereby helping to support tens of thousands of jobs in the north-east?

[Mrs Spelman]

All the firms that the hon. Lady mentions are household names, and indeed the food industry contributes more than £80 billion to the UK economy. As I have said, I have had representatives from the Food and Drink Federation and from agri-food businesses in the Department to ask them what we can do to help them remove barriers to growth in trade. I have very good news to report: for the seventh year in a row, UK exports of food and drink have risen.

[Tim Farron (Westmorland and Lonsdale) (LD)]

Uplands are a vital source of food production in this country, and the Secretary of State will know that they are supported through the uplands entry level scheme. Does she share my concern that money from the scheme is often snaffled by absentee landlords, rather than going to the hard-working tenant farmers who produce the food?

[Mrs Spelman]

When we announced our £26 million uplands package, one of the things we said we would do is give priority to uplands farmers who want to take up entry level schemes. We specifically spoke about the need for landlords to back their tenant farmers who want to take advantage of the scheme.

[Huw Irranca-Davies (Ogmore) (Lab)]

Public procurement is a key way of supporting British food production and high food standards, yet the Department for Work and Pensions sources only 11% of its food from UK producers, DEFRA is failing on its own policy for sourcing sustainable fish and the new ethical standards for food served in public institutions were ridiculed in a report this week for being even weaker than those at McDonald’s. Will the Secretary of State please stop clowning around with food standards and UK food production jobs and at least try to keep up with Ronald McDonald?

[Mrs Spelman]

There is no question but that the Government, through procurement choices, can make a big difference to the food and drink industry, which is one of the reasons we set additional requirements on all Departments to buy to higher standards, including sustainable fish, when we announced the guidelines for Government buying standards in September. We do not yet have figures for the most recent month, and no doubt it will take time to adapt to the changes, but the point is that there is a commitment right across central Government to buy to the highest standards that we expect from British food producers.

[Simon Hart (Carmarthen West and South Pembrokeshire) (Con)]

10. What progress she has made in reducing the administrative burden of inspection and regulation on farmers.

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[Mr Philip Hollobone (Kettering) (Con)]

T1. If she will make a statement on her departmental responsibilities.

[The Secretary of State for Environment, Food and Rural Affairs (Mrs Caroline Spelman)]

My Department takes responsibility for safeguarding the environment, supporting farmers and strengthening the green economy. In that context, I will attend important climate change negotiations in Durban next week. The items on the agenda include sustainable agriculture, as well as the protection of international forestry. In addition, I will have a series of bilateral discussions as part of the preparations for Rio plus 20, on which I will lead, and, of course, update the House on my return.

[Mr Hollobone]

Farmers in the Kettering constituency continue to complain about the difficulties that they encounter in obtaining their single farm payment, especially where there have been changes to farm boundaries. I know that much has been done to sort out the Rural Payments Agency, but what more can be done to sort out that wretched organisation?

[Mrs Spelman]

As I am sure the whole House is aware, the Minister of State, Department for Environment, Food and Rural Affairs, my right hon. Friend the Member for South East Cambridgeshire (Mr Paice) has been working hard to improve the performance of the Rural Payments Agency, and there is indeed a strategic improvement plan to help achieve that. The target was met in June for payments, and we are making good progress towards achieving the target that is required to be met by the end of this year.

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[Jeremy Lefroy (Stafford) (Con)]

T6. What discussions has my right hon. Friend had with Latin American colleagues to prepare for the forthcoming international conferences in Durban and Rio?

[Mrs Spelman]

I have had two in particular. I met Brazil’s Environment Minister, Izabella Teixeira, during negotiations in Nagoya, and as Brazil is the host nation I went down there to help the Brazilians with preparations for Rio plus 20 next year, and most recently, as the House will be well aware, we had a visit from the Colombian President and the Environment Minister, Frank Pearl, whom I met at the Department with a proposal for sustainable development goals, to which we have given our support in principle.

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

T3. When the Government’s long overdue water White Paper finally comes out, will the Secretary of State confirm that small businesses, not fat cat water utilities, will be at the centre of deregulation?

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[Neil Parish (Tiverton and Honiton) (Con)]

This week has seen the launch of the ecosystems market taskforce. What are the practical implications of that?

[Mrs Spelman]

That is one of the commitments that we gave in the natural environment White Paper. We have asked Ian Cheshire, the chairman of Kingfisher Group, to chair the ecosystems taskforce, together with a number of business leaders and scientists. This is an opportunity to help business in this country to take the chance, with the new green technologies and green growth, to grow our economy into a low-carbon economy, and beyond that, towards all the opportunities that realising the true value of natural capital can provide.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

Will the Secretary of State give an update on the progress being made by her Government to tackle international speculation in food commodities? That is a major factor in driving up food prices, which is affecting our constituents and others internationally, and it needs to be tackled as a matter of urgency.

[Mrs Spelman]

The evidence regarding the role of speculation in the rise of food prices is perhaps not as clear as the hon. Gentleman sets out. The main reason for volatility in prices is that supply and demand are tight, and the best way to address that is to improve the supply of food to the market. Transparency is the key to helping to reduce volatility. We, as a Government, support greater transparency so that people around the world know who is producing what, where, and how much they have in stock. That will help to buffer prices.