Agriculture Bill (Tenth sitting)

Chris Davies Excerpts

Committee Debate: 10th sitting: House of Commons
Tuesday 13th November 2018 Public Bill Committees

[Deidre Brock]

There are significant areas of dispute between the two Governments; it is not politicking. We are hearing from NFU Scotland that there are issues it would like to see pursued by both Governments—I am quite prepared to acknowledge that it is both Governments—and I will be raising some of those points later.

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

The hon. Lady’s description of Scotland could have been mistaken for a description of Wales—only Wales is a bit more beautiful perhaps. Is it not important for Scotland to align itself with Wales and support the Bill?

[Deidre Brock]

It has been said before that Wales has a different approach to the Bill. Of course, it is up to the Welsh Labour Government to choose to have a schedule inserted, but Wales voted to leave, and that puts a different spin on the Welsh Government’s approach.

--- Later in debate ---

[George Eustice]

The regulations that we can make under part 3 of schedule 1 give us the power to add additional things. Although I am Agriculture Minister, I do not cover forestry and timber, so I will need to discuss that with my ministerial colleagues. It is certainly an option and the provision is there to enable us to add products.

[Chris Davies]

There are concerns on this side of the House—as well as on the Opposition Benches—about the forestry and timber industry. I doubly emphasise the need for the Minister to look at that.

[George Eustice]

I feel that this will be one of those unexpected issues that returns on Report. I will undertake in the meantime to talk to my ministerial colleagues responsible for the forestry industry.

Amendment 65 is a similar provision to that which we discussed in an earlier debate on producer organisations. It seeks to ensure that we could make measures in that area only with the consent of Scottish Ministers. We have adopted that approach because it is a competition matter that deals with the ability to have contractual changes linked directly to competition law—that is why it is a reserved matter. We are not doing anything new in that regard. The current Groceries Code Adjudicator is a UK-wide body; it operates UK-wide and the legislation that underpins it is UK-wide. The EU milk package is an example of a contractual fair-dealing provision under EU law. It applies UK-wide and can only be switched on and implemented on a UK basis. It is therefore a well-established fact that such issues, which pertain directly to competition law, are a reserved matter to be handled by the UK Government. That is why we do not accept that the provisions are necessary or acceptable.

--- Later in debate ---

[George Eustice]

As I said, the GCA already has the powers to receive complaints anonymously and to investigate, where she has reason to suspect a breach of the code. That is already in place.

My point is not that this is not a legitimate issue—of course, as I said, the regulations can provide for anonymity—but that at some time we need people to have the confidence and courage to say, “I will not agree with that. It is against the code—you know it’s against the statutory code—and you shouldn’t be asking me to do it.” For such things to work properly, we need the farmers and sellers also to hold people to what is a legal requirement. They can play their part and, where they are willing to do so, that can make all the difference.

Amendment 87 is similar—it is about being able to launch investigations when there are reasonable grounds to suspect non-compliance, rather than when there is a complaint. Again, we believe that we can provide for that. It is important to note that whatever is set out as a legal requirement in clause 25(3) will be a legal requirement whether or not there is a complaint. Subsection (5) deals predominantly with complaints and how they are handled, we do not envisage the body as simply a complaints-handling one; we see it as an enforcement body that will enforce all the legal requirements introduced under the Bill, specifically clause 25. It will not only handle complaints and pass them on.

[Chris Davies]

Conservative Members, too, have concerns about the powers of the Groceries Code Adjudicator. Farmers and suppliers tell me regularly that the GCA’s teeth are not sharp enough. Will the Minister reassure me, as he has the Opposition, that there are provisions not only in the Bill but in other places where the powers are strong enough, and that if we need to increase the powers there is a mechanism to do so?

[George Eustice]

The clause provides quite strong powers, including those to impose penalties for non-compliance on the first purchaser of agricultural products. If such a first purchaser happens to be a major retailer— perhaps one not currently covered by the groceries code, because it is below a certain threshold—it will be covered by the Bill. By addressing the problem from both ends of the telescope, we have a workable solution that means we can really deliver for the interests of farmers while not losing the successes of the Groceries Code Adjudicator model.

Having given that reassurance that the issues raised by the hon. Member for Stroud in amendments 86 and 87 can already be addressed through regulations under subsection (5), I hope that he will accept it and withdraw his amendments.

--- Later in debate ---

[Chris Davies]

I thank the hon. Gentleman for his praise—as praise indeed it was—but, unlike him, I am happy with the Minister’s response and I shall be voting with the Government.

[Dr Drew]

Sadly—I thought we might have enticed the hon. Gentleman over to this side. It could have made all the difference, and the Government would have, in due course, thought that it was great that Back Benchers spoke for themselves and voted accordingly. One always has these hopes that might be dashed at a later stage. We will press the amendment to a vote, but we hope the Government will understand that we are willing and able to see how this can be improved on Report.

Question put, That the amendment be made.