Leaving the EU: the Rural Economy

David Rutley Excerpts

Tuesday 17th January 2017 Commons Chamber

[Andrea Leadsom]

Scotland has a rich and varied agricultural heritage, including the grain-producing lowlands in the east, and beef and lamb production in the uplands. It is no surprise that Scotland has a number of world- beating brands, including Scotch beef, Shetland lamb, Stornoway black pudding and Orkney Scottish island cheddar. On my last trip to Scotland, I met representatives from key industries and trade bodies that are vital to the Scottish rural economy, including NFU Scotland and Scotland Food and Drink. I was given a guided tour of Paterson Arran, which has grown into one of Scotland’s best-known independent food companies, with a turnover of almost £24 million in 2015. I was also fortunate to be shown around the Glenmorangie bottling plant in Livingston. Scotch whisky is a phenomenal global success, accounting for about one fifth of all UK food and drink exports, worth £3.9 billion in 2015.

On working with the devolved Administrations, I regularly meet my ministerial counterparts in Scotland, Wales and Northern Ireland, and I look forward to welcoming them to London for further discussions next week. I am determined that we secure a deal on leaving the EU that works for all parts of the UK and recognises the contribution that all corners of this country make to our economic success.

Leaving the EU is DEFRA’s biggest focus, as it is the Whitehall Department most affected by the EU, but alongside this, the day-to-day work of DEFRA continues to focus on achieving the right conditions for a thriving rural economy. Although much of rural policy is devolved, in August 2015 we published the rural productivity plan for England to set the right conditions for businesses in rural areas in England to prosper and grow. Across the board, Government policies will help rural communities: having an industrial strategy that works for all areas; delivering 3 million apprenticeship starts in England by 2020, including trebling the number in food, farming and agri-tech; and building more homes and providing better access to services.

[David Rutley (Macclesfield) (Con)]

My right hon. Friend is making an important point. Does she believe, as I do, that the huge opportunities for rural diversification will strengthen our rural economies and communities? Not the least of those opportunities are outdoor recreation and other activities, which can create meaningful experiences for people, that will help the rural economy, as well as physical health and wellbeing?

[Andrea Leadsom]

My hon. Friend is exactly right. Reconnecting with nature and the outdoors is incredibly good for wellbeing. We expect and anticipate that the success of rural tourism will continue as we seek to become a more outward-looking nation.

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[David Rutley (Macclesfield) (Con)]

There is an active and interesting debate going on about farming and agriculture in our rural communities. I was reminded of just how active on Friday, when I had the privilege of visiting the Plant House farm in Prestbury to find out more about dairy industry issues. We had a wide-ranging debate that completely captivated us for an hour and a half. I barely had time to see the new milking parlour, which had been the underlying reason for the visit, and the wonderful cakes on the kitchen table went untouched. Such are the sacrifices we make—unbelievable.

I recognise that this is a time of uncertainty for farming, but it is also a time to define new opportunities. The Prime Minister was clear today that although we are leaving the EU, we are not leaving Europe, so we need to define ongoing trading relationships with the EU. There are in her ambitious strategy new opportunities in broader markets, which will have positive implications for all industrial sectors and benefits for UK farmers as well.

Some may want the relative certainty of the common agricultural policy, but few would argue that it is a perfect system—far from it. It is quite the opposite. For too long, it has had all the hallmarks of a system created in the 1950s. It is over-bureaucratic and designed for the needs of 28 states, not the primacy of the UK national agricultural interests that we need to have in mind. Brexit will bring us a huge opportunity, so the passing of the CAP will not be mourned. We will create a better approach. The Prime Minister has already said that there are going to be protections for pillars 1 and 2 of the CAP until 2020.

Like the wider UK economy, the fundamentals of the UK agriculture sector are in good shape. We can compete with the best in the world, so we must now look forward to realise the opportunities before us. Like the wider economy again, though, it is not all about Brexit. Brexit should be a spur to action to tackle long-standing challenges and realise opportunities that have been with us for some time. I mentioned rural diversification in my intervention on the Secretary of State; we must realise those opportunities. That is particularly true for tourism and the visitor economy, which will be pivotal. Outdoor recreation also has a part to play in that particular debate.

We need to help young people to build careers in farming and develop their livelihoods in agriculture. I am impressed by the work I have seen done by young farmers clubs in and around Macclesfield, and by the enthusiasm that they bring to agriculture. As the Secretary of State develops her Green Paper and thinks about her 25-year DEFRA strategy, will she please not forget the other opportunities outside Brexit, such as rural diversification and, of course, the prospects for young farmers, who are pivotal for future success?