Agriculture

Dave Doogan Excerpts

Wednesday 2nd December 2020 Commons Chamber

[Dave Doogan (Angus) (SNP)]

There are three instruments before us today. I will not touch on the Agriculture and Horticulture Development Board (Amendment) Order 2020, which affects England and Wales, but I will discuss the provisions relating to the World Trade Organisation and direct payments to farmers.

Before I do that, I predict that the Minister, as she often does, will cite the consent that she enjoys from colleagues in the Scottish Government on these matters. I will expand a little on what the shadow Minister, the hon. Member for Cambridge (Daniel Zeichner), has said —that there is sometimes a huge difference between consent and delight, or even between consent and something remotely similar to what we would do if we had the legislative authority to do it. That is sometimes the space in which our Ministers in the devolved Administrations find themselves.

The World Trade Organisation Agreement on Agriculture (Domestic Support) Regulations 2020 set a limit of 12.67% of total UK amber box support for Scotland. This reliance on a percentage of the total UK quantum means that while Scotland remains within the UK, we must remain subject to the vagaries of the total UK figure. It is not inconceivable that in a mixture of ill winds and fair, high yields and low, we could see the figure to which that 12.67% relates reduce at a UK level—at a time when Scotland may need to increase the support to its growers and producers that is satisfactory even at a conceptual level. In addition, the Secretary of State holds the final say and authority to determine the classification of support as blue, green or amber box support. I am interested in better understanding the principles of consent and safeguards for fairness that will uphold that authority justly.

It is fortuitous that the hon. Member for Devizes (Danny Kruger) is here. During the agricultural transition plan statement on 30 November, many Scottish MPs pressed the Secretary of State for assurances that state aid principles in the United Kingdom Internal Market Bill would not be used to prevent the Scottish Government from providing agricultural support in the way that they choose. No such assurances were provided, yet in answering a subsequent question during the same debate from the hon. Gentleman, who was concerned that Scottish farmers may be able to undercut Wiltshire farmers because of a difference in devolved Government support, the Secretary of State was quick to make an assurance and a commitment to the hon. Gentleman that that would not be possible—I must apologise to the hon. Gentleman for not giving him prior notice that I would mention him in this debate —so perhaps the Minister could address some of these points.

As regards direct payments to farmers, the comprehensive spending review made clear that Scotland will be short-changed, especially rural Scotland. Support for rural Scotland will be £117 million short of what was promised by 2025, despite the fact that the Government made a manifesto commitment to match EU support. The Secretary of State announced that, by 2028, support for farmers in England will move away from the direct payment scheme based on the amount of land farmed, with the initial budget of £1.8 billion dropping to half that by 2024. To be clear, we fully support the move away from rewarding land ownership to rewarding output, productivity and land stewardship. Nevertheless, that leaves several years in which farmers will face a shortfall in payments. That will not happen in Scotland, because the Scottish Government have committed independently to continuing payments at the same level as currently. The National Farmers Union president, Minette Batters, said:

“Expecting farmers to run viable, high-cost farm businesses, continue to produce food and increase their environmental delivery, while phasing out existing support and without a complete replacement scheme for almost three years is high risk and a very big ask.”

The wisdom of pursuing such changes at a time of such broad upheaval is a challenge for the industry and perhaps deeply questionable.

It is also necessary that the UK Government clarify that there will be no undermining of the Scottish Government’s ability to set and administer support for agriculture in whatever way they see fit. The statutory instrument makes changes concerning the new system of direct payments for farmers in England, including setting a ceiling on payments in England. Can the Minister assure me that that will result solely in positive consequences for Scotland through Barnett consequentials?