Welsh Rural Economy

Dave Doogan Excerpts

Tuesday 22nd June 2021 Westminster Hall

[Dave Doogan (Angus) (SNP)]

Thank you, Mrs Cummins, for your indulgence, given my slightly late appearance at this debate. I apologise to colleagues in the debate and especially to the right hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts) for being slightly late—demonstrating to colleagues that it is literally impossible to be in two places at once.

I am very pleased to take part in this debate, but I will proceed with caution because, despite a very happy 18 months living and working in the Vale of Glamorgan, I recognise my limited knowledge of matters Welsh, and there is nothing more irritating to a Member of Parliament than somebody talking about our part of the world with less than comprehensive knowledge. But there are very many similarities between the situation that the rural Welsh economy finds itself in and the rural Scottish economy.

I represent a rural ward in Angus in Scotland. There is not so much difference between the Welsh valleys and the Angus glens. I would contend that neither are being particularly well served by the UK Government at the current time, a classic example of that being the Australia trade deal. I will not labour this point. It is a hot topic in the Chamber and in the media. Suffice it to say that the reassurances—if we can call them that—coming from the Department for International Trade and, to a significantly and tellingly lesser extent, from the Department for Environment, Food and Rural Affairs are very hollow indeed. The supposed safeguards for Welsh producers, Scottish producers and Cumbrian producers of lamb are paper thin. There is also the fact that, watery as they are, they are timebound over a maximum period of 15 years. I wonder what the Government will tell Welsh farmers is going to happen after 15 years. Is the scale of Welsh farming suddenly going to increase after 15 years to the extent that farmers will be able to compete with the colossal enterprises in Australia and, by that time of course, New Zealand, Mexico, Brazil and many other colossal producers?

[Liz Saville Roberts]

Does the hon. Gentleman share my concerns about the anticipated trade agreement with New Zealand, which we expect to be announced in August? It has seen the precedent set with Australia and, in terms of lamb, this deal looks even more damaging than the present agreement.

[Dave Doogan]

The right hon. Member is exactly right. We are looking at the thin end of the wedge. I will come on to why this is a function of a disconnect in the current set-up of the United Kingdom, but of course she is right. With my hon. Friend the Member for Edinburgh North and Leith (Deidre Brock), I met the Australian high commissioner to the UK about a year ago, and we were assured by him that Australia was not particularly interested in bulk volumes, in terms of exporting lamb to the UK. I did not believe it then and I do not believe it now; it is inconsistent.

New Zealand will follow where Australia leads. Such is the unseemly haste with which the UK Government are pursuing any and all opportunities for international trade, as though it somehow validates the ridiculous and reckless Brexit course, they will do deals with New Zealand and we will see further attrition in the markets that we currently satisfy from domestic production. It is a very damaging prospect that faces us now.

Yesterday I met NFU Scotland members in Angus. Their issues include the arbitrary discussions around journey times for animals; the trade deals we have touched on today; welfare standards that we must adhere to in this country but that our competitors are not similarly held to; and the availability of seasonal agricultural workers because of the Conservative Government’s fundamental ideology of not wanting people to come from outside to support our industries and enhance our communities, despite the negative effect that that has on the rural economies of the constituent nations of the UK. Likewise food standards are now a lottery, depending on the food we buy and the market it comes from.

I had an interesting meeting recently with a renewable energy company that has floating wind farms. It has a tremendous pilot project off the Pembrokeshire coast, and it wants to do something similar off the North sea coast, off Peterhead. The dialogue that it had with the Department for Business, Energy and Industrial Strategy was so slow that it represents a golden opportunity lost by the Government to open up rural and very rural parts of our economy and to meet our net zero and renewable energy targets. There is a level of disconnect. Even if the company did get the project going, like many renewable projects in mid and west Wales, the feed-in tariffs, although not so bad in Wales, are still appalling, whereas we have energy producers around London paid to connect to the grid. In Wales they will have to pay a couple of pounds per unit, and in Caithness in Scotland, very, very rural communities will have to pay £6 or £7 per unit. BEIS just holds up its hands—“It’s not us. It is Ofgem.” Such levels of disconnect from central Government in London are not acceptable. They hold our economies back.

As a member of the Environment, Food and Rural Affairs Committee, I take part in good faith and in good spirit when discussing issues that are of no consequence to my constituents because I am a Member of the UK Parliament. I would rather not be, but I am—I wish I was a member of a sovereign Scottish Parliament. What has come through loud and clear is the disconnect and the asymmetry in the representation of the people of the United Kingdom. There is no English Government, but DEFRA is little more than an English Government Department. It has very little locus in the United Kingdom at large, and where it does, it exercises it with indifference and ambivalence. It is a great impediment to our rural communities.

--- Later in debate ---

[David T. C. Davies]

My officials are following that specific issue with interest at the moment. I suggest that they may wish to draft the right hon. Lady a response, because it seems a perfectly reasonable point to be making.

The hon. Member for Carmarthen East and Dinefwr also mentioned the importance of physical fitness during the pandemic. He is a fine exemplar of that, given that the last time I met him he was just coming out of the gym in the hotel that I had also been in. He practises what he preaches, which is very good.

I shall move on to the support the Government have given to farmers—the bedrock of our rural community. Various Members raised the Australian trade deal, so I will come on to that in a second. I believe that some misinformation has been put out about agricultural funding. Like EU structural funding, it will of course continue to come from the EU for the next couple of years. The UK Government have rightly made the commitment to match the agricultural funding we received before we left the European Union and to ensure that the same amount is received going forward.

The hon. Members for North East Fife (Wendy Chamberlain) and for Angus (Dave Doogan) raised the Australian trade deal, along with various other Members, and I have written down a couple of notes about it. Of course, we received beef imports from Australia as members of the European Union and the total amount that came in last year was about 560 tonnes. According to the AHDB, the amount that we imported in total was around 238,000 tonnes—about 400 times the amount that was coming from Australia. Most of that came from the Republic of Ireland. So if anyone is starting to get a little bit worried about an Australian trade deal, it should be the Irish Government, not British beef farmers. I think the hon. Member for Angus suggested that it could go up six times if we sign the trade deal. Well, we will sign the trade deal, and even if it did go up six times—even if it went up 10 times—it would still be an absolutely tiny fraction of the total amount of beef that we import from Ireland each year.

[Dave Doogan]

Does the Minister accept that the detail and nuance of this crisis is what it displaces? The volume in itself is one element of the factor, but it is what it displaces because our production costs are far higher than Australia’s.

[David T. C. Davies]

The hon. Gentleman says that, and I have also heard it, but I am not sure I entirely accept it. He appears to have a smartphone in front of him, and I suggest he has a look at the prices for cuts of beef in Coles or Woolworths, which are the two major supermarkets in Australia, and compare them with Tesco. To be honest, by and large the same cuts of beef cost more in Australia. Australian beef costs more on the shelves of Australian supermarkets than British beef does on the shelves of British supermarkets. The idea that Australian beef is ridiculously cheap does not really stand up to much scrutiny.