Agriculture Bill (Twelfth sitting)

Chris Davies Excerpts

Thursday 15th November 2018 Public Bill Committees

[Colin Clark (Gordon) (Con)]

I will be mercifully brief, as other hon. Members have covered many of the matters.

I have been a farmer and been involved in agriculture for a number of years. We work in cycles of five, seven or 10 years. As the hon. Member for Stroud has just said, a multi-annual financial framework is an essential part of agriculture. As we mentioned in earlier debates, it is particularly important that we do not allow the agricultural budget to become politicised and subject to annual discretionary spending decisions, and that parties of all colours are able to recognise the long-term commitment to agriculture.

The Scottish NFU is supportive of the amendment. The Minister is obviously influenced by the Treasury, which influences everything, and I hope that we give power to his elbow. It is important that the Treasury understands that the long-term commitment, as in many other industries, is very important for the farming industry.

We are not going to press the amendment to a vote, but it is noteworthy that a Welsh colleague, an English colleague and a Scottish colleague support it. In seeking to represent Scottish farmers, I reiterate that I very much want to see a multi-annual framework.

[Chris Davies (Brecon and Radnorshire) (Con)]

I am sure that there is a good story in there somewhere about a Welsh MP, an English MP and a Scottish MP, but we shall not go down that route at this moment. [Interruption.] It is after lunch, after all.

I am delighted to support the amendment. My hon. Friends the Members for Ludlow and for Gordon have made very convincing cases, and I am pleased to see the hon. Member for Stroud also making a convincing case. Farming, as we all know, is a long-term measure, and there are many farmers among Conservative Members. We have not just visited a farm on the recommendation of the NFU; we are involved in farming on a daily basis. I know that my hon. Friend the Minister, who is from a farming family, will be well aware of the need for long-term funding, which is important in farming for breeding and planting.

I am chair of the all-party parliamentary group on forestry, and long-term funding is vital for the future of the forestry sector and the wood industry. With softwood, the period from planting to profit is probably 40 years. With hardwood, it is 80 to 100 years. It is very important that schemes are in place to ensure the correct funding. I am delighted to support the amendment and I am sure and very much hope that the Government will look on it positively.

[George Eustice]

Like my hon. Friends the Members for Ludlow, for Gordon and for Brecon and Radnorshire, I understand that this is a critical issue. I agree with the sentiment that we can put into the Bill all the powers we like and come up with all the creative policy we like, but that they will not mean anything without money to underpin them.

For reasons that the Committee will understand, I will not support the amendment. Before I come on to that point, however, it is important to recognise what we have already done to acknowledge the importance of clarity on funding. At the last general election, we made a commitment to keep the total cash spent on agriculture at the same level for the duration of this Parliament until 2022. That breached and went beyond a Treasury spending review period, but the Conservative party took the decision that it was right and proper to prejudge the spending review process so that we could give clarity and certainty to farmers.

The challenge, as I understand it, is that the scheme is currently funded in a roundabout way by our sending money to Brussels and then getting it back. The concern that some farmers will have is whether the Government will be willing to support the scheme. My view is that the approximately £3 billion that we currently spend every year on agriculture and the farmed environment is relatively modest in the context of other areas of Government spending. Some Departments—perhaps including a Department that my hon. Friend the Member for Ludlow is familiar with—regularly accidentally overshoot their national budget. Given what it delivers for the farmed environment that covers 70% of our land, for habitats, for water and air quality, and for our important environmental objectives, £3 billion is a fairly modest sum.

As the policy returns home and we take back control, there will be a responsibility on Parliament—and on political parties in their manifestos—to demonstrate their commitment to our farmed environment and wildlife. We know that wildlife organisations have huge memberships: the RSPB and the Wildlife Trust each have between 1.7 million and 2 million members. We know that the British public are passionate about their countryside, wildlife and environment and want us to give them due priority and support.

We have therefore not only committed to keeping the cash total the same until 2022 but made a manifesto commitment to implement and fund a new environmental land management scheme after that. We have not described the total quantum of funding after 2022, but there is an absolute commitment for there to be a funded policy. We have also made it clear that agreements entered into by the end of 2022 under the existing pillar 2 schemes—some of which will run for a decade—will all be funded for the duration of their terms. I believe that we have done a lot in the area already.

As a former Minister, my hon. Friend the Member for Ludlow knows that in the long term these matters are ultimately dealt with through the spending review process. A spending review process is under way, and we expect it to conclude next year. By their very nature, spending reviews are multi-annual; they tend to set a financial envelope within a period such as five years. Departments also have other processes, such as single departmental plans and Supply estimates applied at departmental level, so that we have some continuity and multi-annual understanding in our approach to funding, rather than a stop-go process from year to year.

Finally, our new environmental land management scheme is predominantly designed around multi-annual agreements. There will not simply be one-off yearly payments; we envisage farmers entering into an agreement for three, five or possibly 10 years. It is implicit in the design that we have outlined for the scheme that a multi-annual understanding of funding will be needed.

I hope that I have been able to reassure my hon. Friend that I share his view that this matter is important and that I view the current spending on agriculture and the farmed environment as a relatively modest sum of money. We could deploy it far more effectively to achieve far more, but the spending review process is the right place to identify funding post 2022. I am sure that he and other colleagues will be making representations to the Chancellor and the Treasury on this matter.

--- Later in debate ---

[Colin Clark]

I rise simply to thank the Minister for supporting the amendment and to echo the hon. Member for Edinburgh North and Leith—this has been called for for quite some time, and it is good that just over £1.5 million will be spent on promoting Scotland. We have to remember that the vast majority of red meat is exported south of the border, and we are very grateful that the promotion will continue for the entire country.

[Chris Davies]

I follow my hon. Friend the Member for Gordon, who is a joint signatory to the amendment. We both thank the Minister for supporting the amendment, discussing it with us and agreeing a way forward. This has been called for—not just by the farming unions, but by farmers themselves—for a very long time in Wales and, as we have just heard, in Scotland. I am sure that it is the same in England.

As somebody whose constituency is right on the border, I feel that what the Minister said is very appropriate. Sadly, so many slaughterhouses have closed that people cross borders with their stock. In Wales, we have lost a lot of revenue across Offa’s Dyke. Money has perhaps been spent not on Welsh land promotion, but on other things.

Opposition Members will certainly know how the meat levy is worked out: it is a jointly funded levy that is paid by both the producer and the slaughterer or exporter. Under Hybu Cig Cymru, the current price paid per head of cattle in Wales is £5.67. It is 83p per sheep, and £1.30 per pig. That may not sound like a great deal per item, but when one considers how many animals are slaughtered each year for consumption, both in this country and across the world, it adds up to a considerable amount of money that is sometimes not correctly spent on the area that the animals come from. This has been called for for a very long time, and I am delighted that the Government are supporting it under new clause 30.

[Dr Drew]

It is good to see how cross-party collaboration can have an impact. I congratulate Conservative Members on getting the Minister to move—it is important. I am not an expert on this part of the Bill; we do not have that much beef farming in my part of the world, but some dairy cows get slaughtered and it is important that we know the impact of the levy boards. I am interested in what happens in Northern Ireland, which is not part of the scheme. Can they be brought in?

I am interested to know to what extent the separate boards—the Agriculture and Horticulture Development Board, Hybu Cig Cymru operating in Wales and Quality Meat Scotland—will maintain their independence, given that the Bill, which is primary legislation, is making a change to how the moneys will be devolved. It would be useful to know to what extent the different organisations will maintain complete independence or whether the administration of the funding will become more complex. I suppose the AHDB would take over all responsibility and devolve the moneys down to the different organisations.

It is good. This is what primary legislation is for: to improve what we have at the moment and do it differently and better. It is pleasing that it seems that all the farming organisations are in favour of the proposal, so I cannot see any reason why the Opposition would not be in favour of it. Again, I would like some clarity about exactly how the scheme operates at the moment and the changes that are, hopefully, going to make it better. We support what is proposed and hope that this good bit of the Bill will receive unanimous support at every level of debate, both in this place and the other place.