Draft Rural Development (Amendment) (EU Exit) Regulations 2019 Draft Rural Development (Rules and Decisions) (Amendment) (EU Exit) Regulations 2019

Chris Law Excerpts

Thursday 21st March 2019 General Committees

[Dr David Drew (Stroud) (Lab/Co-op)]

I am delighted to serve under your chairmanship, Mr Gapes.

I am glad that I am with the Minister; he and I spend a lot of time, in one place or another, on SIs. I have to say that, of the many that I have been involved with, this one concerns me the most. As the European Statutory Instruments Committee said in chapter 5.4 of its report in December 2018:

“The Committee believes that the issue has significant financial implications and is of particular importance to rural communities. Although the amendments are required in a no deal scenario to implement the commitments made by the Government on funding, we consider the significance of the instruments and interest in the subject is such that the additional safeguard of affirmative resolution is appropriate.”

That is why we are here to discuss the instruments.

I am glad that the Minister mentioned that this is about £430 million for existing programmes. My concern is what will happen at the end of 2020. There is no clarity at all from the Government on their rural policy, because it does not really have one, despite needing a rural strategy. What will the Government do then? That matters because, as the right hon. and learned Member for North East Hertfordshire made clear, a panoply of different schemes are encapsulated within the catch-all of the EAFRD.

The Minister may correct me, but I believe it remains the sad state of affairs that we have never drawn down and match-funded the full amounts of rural development moneys that are available for the UK Government to spend—certainly that is the case for the rural development programme for England. That matters, because there is no other rural programme out there. I have severe concerns that what we are beginning to see here is a programme that is already underfunded, and rural areas need funding—they do not need huge amounts, and they certainly do not need great dollops of money in particular places, but they need some funding.

This particular scheme has been one of the strengths of the EU, partly because, through things such as the Erasmus programme, different higher education institutions—such as the one in my area, the Countryside and Community Research Institute at the University of Gloucestershire—have done clever work across different parts of the EU to allow rural development to work in parallel in so many different countries. Of course, all that finishes. We have nothing left. Now, it is possible that we could do some bilateral work, and a number of institutions are looking to relocate at least some of their offices in order to remain within the EU. I do not quite know how that will happen, but they have gone to those extreme lengths to keep some of those programmes going.

I worry about what is left. When this goes, what is left in rural England? The hon. Member for Dundee West will no doubt have a lot to say about Scotland too. These funds are the building blocks of what happens in rural communities. They cover a huge range of things, from countryside stewardship to support for particular initiatives in villages and other small market towns. I am left with the view that we may well start again, but what are we starting with? We are starting with something that does not exist at the moment.

I am taken, again, by those who have commented; there has been quite a lot of say-so from organisations that feel they have not been consulted, particularly in areas such as this, where there is such a diverse range of organisations that it would be difficult to know who to consult. Because, again, there is no regulatory impact assessment, it is difficult to know who the Government went to in terms of rural consultation. That is important, because it is all about the money. It is about the things we do with the money, but unless we have money, we cannot do the things we want.

Among those who have written to me about this, the Landworkers Alliance has been clear that it is worried that some of the land-based initiatives it is involved in will suffer and that the money for existing services such as schools, pubs and shops, which have hidden subsidies—perhaps not directly, but through good organisations such as the Plunkett Foundation that are able to find ways of helping to keep those services alive in those communities—is now highly questionable. The Landworkers Alliance is very unhappy about some of the things that are currently run on a shoestring, but on a shoestring of which much of the money comes from the European Union.

[Chris Law (Dundee West) (SNP)]

I thank the hon. Gentleman for noting the situation in Scotland. Much of this is devolved and I hope it will continue to be devolved, but I want to highlight one particular issue about money, particularly the rural economy and the rural support that is needed. Research by the Conference of Peripheral Maritime Regions shows that the highlands and islands region, which has benefited hugely from EU resources over recent years—as a result of which, the population of Inverness city has actually grown—will miss out on more than £160 million in EU regional development funding for the period from 2021 to 2027. The UK Government have still not brought forward a plan for the proposed replacement fund, and have failed to give any assurances that the funding will be replaced at the same levels. I look forward to hearing the reply, but I wanted to raise that because it is just one example with this Government of where we do not know what the long-term plans are.

[Dr Drew]

I thank the hon. Gentleman for that intervention, because in a nutshell that is where we are; we just do not know. One of the sad things about the loss of these moneys is that it has been targeted at particular groups—young farmers, for example, who desperately need investment into the way they come into the farming industry. I do not like to use the term “funny money”, but there have been ways we have been able to fund it through the various different grants that the EU has made available. Where will those grants come from in the future? People of ordinary means cannot, sadly, enter the land, because of the costs—not just of securing the land, but of investing in the way they intend to farm, particularly if they are going to be a livestock farmer. Those are very expensive and punitive impositions on them when they are in the infancy of trying to get on the land.

Before we decide how we vote, it would be useful to hear from the Minister about what the Government’s strategy is. I am aware that we have done very little in this House, which is to our shame. The Lords does a lot more work on rural economies: there is the Cameron report, which came out about nine months ago, and a report that is just about to be released by Lord Foster, which has looked at some of the impacts of rural development.

I am aware of the Rural Services Network’s call for a rural strategy, which I totally support. This is against the background of next year being the 20th anniversary of the then Labour Government’s 2000 White Paper, which was a very good piece of work because it was accompanied by a billion-pound budget. Sadly, it was all frittered away. Such things happen in Government, but many of the good initiatives that were set in place have been lost for good, which is wrong. As the then rural tsar Stuart Burgess talked about, there is £347 billion of untapped capacity in rural England. I know that is a magical, mystical figure, but it shows the capacity there is in rural England—I cannot comment on Scotland, because when I was on the Select Committee I was able to look only at rural England—to do some interesting work.

--- Later in debate ---

[Chris Law]

Will the Minister confirm that, when the Agriculture and Fisheries Bills are introduced, the powers that belong to Scotland will be devolved back to it? On funding for the highlands and islands, it looks like we will be £160 million short from 2021 to 27. He might not be able to give me the numbers just now, but will he look into that and write to me about what he will do about that shortage?

[Mr Goodwill]

The hon. Gentleman is absolutely right to make the case on behalf of not only his constituents but his nation. We certainly look forward to robust exchanges about the way funding is brought forward, but I repeat that, as we leave the European Union, the money that we previously paid into the coffers in Brussels will be available for us to deploy here. England is embracing the opportunities of leaving the European Union, and the Agriculture Bill is one clear example of that. The Scottish Government need to engage more widely in those opportunities and must not be in Brexit denial. Many of the hon. Gentleman’s right hon. and hon. Friends seem to think that it is not going to happen. It is important that they realise that the result of the referendum in the United Kingdom was to leave the European Union. The Government of the United Kingdom are determine to deliver our promise.

As further changes to the way we deploy and deliver the agri-environmental and other schemes in this SI emerge, we will of course consult. We will evaluate the way that schemes have worked in the past. We will need to see how we can balance and incentivise new schemes, particularly in connection with the environment, to ensure we get the balance right between rewarding those who were in the vanguard of delivering these environmental schemes and incentivising new entrants. Getting that balance right will be one of the important challenges for us.