Direct Payments to Farmers (Legislative Continuity) Bill

Daniel Zeichner Excerpts

2nd reading & 2nd reading: House of Commons
Tuesday 21st January 2020 Commons Chamber

[Daniel Zeichner (Cambridge) (Lab)]

It is a pleasure to wind up for the Opposition on the very wide-ranging debate that we have had. I echo the words of my hon. Friend the Member for Plymouth, Sutton and Devonport (Luke Pollard) about some of our predecessors in the shadow Front-Bench team: the former shadow Secretary of State, Sue Hayman; my good friend and near neighbour, Sandy Martin; and the inestimable David Drew. As Members may note, we have suffered a few casualties along the way, which is why I find myself at the Dispatch Box today.

Some may have thought that this Bill seemed like a warm-up lap for the Agriculture Bill, which we will be coming back to. However, we have had some excellent contributions, including three hon. Members making their first speeches in this House. The hon. Member for Brecon and Radnorshire (Fay Jones) gave a very exciting and vivid account of a beautiful constituency, speaking about the importance of tourism and farming to its economy, the huge cultural contribution it has made, and the very important contribution made by the military. We heard another moving account from the hon. Member for Angus (Dave Doogan)—witty, but also with quite a political sting in the tail that I am sure will be noted by many.

We also heard from the hon. Member for Eddisbury (Edward Timpson), mark 2. I echo much of what the hon. Member for Westmorland and Lonsdale (Tim Farron) said in his thoughtful speech, but particularly his words about the hon. Gentleman. He was a Minister early in my time here, but he was, I think, a highly regarded Minister. Although it is not customary for Labour Members to welcome some people back, I think he knows what I am getting at. It was an excellent speech very much painting the picture of a lovely constituency.

Alongside those speeches, we had a number of very powerful contributions, including perhaps some warnings from the Conservative Benches that there are certain views about these issues, particularly the importance of producing food in our agricultural system, the difficulties around currency fluctuations, and some of the difficulties around the Rural Payments Agency. I was particularly struck by the contribution from the former Chair, and aspiring Chair, of the Select Committee, the hon. Member for Tiverton and Honiton (Neil Parish), who spoke in his customary wide-ranging style across the whole range of issues. He made some telling points, particularly about the complexities of the stewardship schemes that the future models may well be based on, and—most importantly of all, as we heard from others as well—the issue of standards, which I suspect will dominate the debates ahead.

Looking back to the election campaign, I cannot help but reflect on the fact that, throughout, the Prime Minister described his plans as being “oven-ready”. I am not sure about his culinary prowess, but looking at this Bill, it seems that the plans have been far from oven-ready. In fact, I would say that the bird was in very, very deep freeze, if not a long way from its conception, because far from being ready to go, the very first thing this Government are doing is introducing legislation to make sure that nothing changes. All that excitement about 31 January, and nothing changes—you really couldn’t make it up.

But on this point we actually do agree with the Government; I think we can all agree on it: financial certainty for our farmers as the Government take us out of the European Union is extremely important. That is why this Bill matters and why we will be supporting it today. There is a clear funding gap between the ending of direct payments to farmers under the CAP and the Government’s only-just-reintroduced Agriculture Bill, which will introduce a new system. That Bill, as we have heard, has been languishing on the sidelines for over 14 months. The question has to be asked: why the delay? Why the 14 months of inactivity, indecision and uncertainty, with payments not set to begin until 2021? So while it may not be desirable, it is right that farmers should not have to be made to pay for this Government’s shortcomings and that this Bill be brought forward to continue CAP direct payments for this year. Of course, not much has been said to farmers about what the future is going to look like. Last summer’s five-page glossy document, “Farming is changing” was a fairly brief account, frankly, and for people who are planning on a longer-term cycle, how difficult that must be.

Before raising a few points of detail about the Bill, let me say that people across the world know that we are facing a climate emergency and environmental crisis. It may be an unfortunate add-on for some Members, but we also know that modern destructive agricultural practices are, in some cases, contributing to this. In the past year, oceans have recorded the hottest temperatures on record, and insects and farmland birds have continued to decline. The result of the Government dropping the ball on this is that we are still years away from moving to a system in the UK where farmers are paid and supported to protect our environment, and we are now legislating for another stop-gap year of the CAP, which, as has been acknowledged, was simply not designed to address these important environmental issues.

The Government could have been bolder and used this Bill to fast-forward some of the environmental land management pilots that are set to replace the CAP. But as the National Audit Office’s report, “Early review of the new farming programme”, has shown, these are far from ready to go. The Government’s plan, as outlined in the Agriculture Bill, is for a three-year pilot of the ELMs to start in 2021, but it seems that DEFRA’s ambition for the level of take-up expected has already been scaled back. It was initially planned for 5,000 farmers to sign up by the end of the first year of the pilot in 2022, but that is now reduced to just 1,250. As we have heard, there are very many questions around the environmental land management schemes to which answers will need to be found to ensure that they succeed, not least whether the reduced pilot that is being talked about will provide sufficiently robust evidence across the full range of farm types and locations to properly inform the development of the new payment system. These are all points that we will develop at the Second Reading and Committee stages of the Agriculture Bill.

We welcome the key recommendations of the Bew review, which are being applied in the Bill to address some historical inequalities that we have seen in the distribution of EU funding. That clearly disadvantaged some areas, particularly Scotland and Wales. Again, however, it is disappointing that the extra funds that the Government have found for this are not being used more quickly for environmental purposes. I draw attention to a couple of points in the Bew review. Its second wider observation was:

“Ministers should try to avoid giving farmers in any one part of the UK an unfair competitive advantage when deciding future allocations.”

That point was raised by the hon. Member for Ceredigion (Ben Lake). In their response, the Government acknowledge that post-2022 funding should avoid unfair competitive advantage, but quite frankly, it is very unclear what measures they intend to take to address this conundrum. Perhaps the Minister could clarify.

It is also unclear what the Government’s answer is to the review’s third wider observation, which advocates financially recognising both

“the social value of upland farming in particular and the challenges facing those practising it”.

In their response, the Government skirt around this issue. They do recognise the

“vital role upland farmers play as stewards of the countryside and the range of social benefits that they contribute.”

Some clarity on that would also be welcome. Do the Government agree with Bew on the social value of upland farming? What do they see as those “social benefits”? Again, could the Minister clarify?

Unsurprisingly, many farmers continue to be concerned about their future funding. The CAP undeniably had many flaws, and there is no doubt that environmental degradation in the past few decades has been severe. Indeed, I dug out a dog-eared copy of Labour’s rural White Paper from November 2000—I suspect the Minister is far too young to remember it. Even then, Labour was warning that:

“Subsidies which simply reward production have damaged the countryside and stifled innovation.”

What the CAP did do over many years, however, was give some financial certainty. As the Government push forward with the Agriculture Bill and a post-Brexit trade stance still swathed in unanswered questions, that is in danger of being replaced with the certainty of constant uncertainty. For this year at least, farmers and the rural economy are being spared that because, effectively, the CAP continues.

How ironic that the very first act of the Big Ben bongers is to keep things the same. Our fear is that far from bells of liberation ringing through parishes across our countryside, the real danger is that not a lot will happen nearly quickly enough. If things prove as complicated as seems likely, and the Government do not move swiftly on the Agriculture Bill, we may well find ourselves revisiting a sunset clause in this Bill and looking at a continuation of the current CAP direct payments yet again.

In conclusion, we support these proposals, although there will be much more to say when it comes to the detail of the Agriculture Bill. However, we do see this Bill as an early warning that the Government have already wasted years, and have moved too slowly and with insufficient urgency to tackle the key climate and environmental issues that we all now face.