Agriculture Bill (Fourth sitting)

Debate between Fay Jones and Deidre Brock

Committee stage & Committee Debate: 4th sitting: House of Commons
Thursday 13th February 2020 Public Bill Committees

[Fay Jones]

Q Correct me if I am wrong, but my understanding is that the Scottish Government still maintain a headage payment system, particularly for the beef sector. Would that sort of measure remain on the table as you design a future agricultural policy?

Jonnie Hall: We have had a beef calf payment since 2005 under the CAP. There are strict rules on how much money can be spent on that. It is about how important the suckler herd is to the socioeconomic fabric of rural Scotland. It certainly has not driven production, because suckler cow numbers have continued to decline over that period. If anything, it has slowed the decline down, so I would not call it a production support. It recognises the additional cost of suckler production in our hills, in particular, and therefore it is a very important piece of the policy toolkit. It enables the retention of suckler beef in Scotland, and that has significant implications further downstream and into the supply chain, as I am sure Alan Clarke would agree.

Alan Clarke: Absolutely.

[Deidre Brock (Edinburgh North and Leith) (SNP)]

Q We do not have much time, so could you let us know quickly the main areas you have concerns with in the Bill? You have expressed some of them—governance frameworks is one, of course, Jonnie. One of the things that was brought up was the livestock information provision. An organisation is being set up, and this morning our Welsh counterparts expressed real concern about that. They said that that section of the Bill rang alarm bells and raised important operational issues about whether this could indeed be overseen and directed through England, through the Agriculture and Horticulture Development Board and the Department for Environment, Food and Rural Affairs. That is a starting point, but are there are any other areas of the Bill that you have concerns about?

Jonnie Hall: In our evidence we cite a number of areas. If you look at the Scottish Bill going through the Scottish Parliament and the Bill that you are considering now, there are clear overlaps, not just on animal traceability issues but marketing standards and other things. Many of those issues are devolved, but our concern goes back to the operation of the internal UK market. It is quite right that those things are devolved, but how do we ensure that there is consistency in application of those devolved issues across the United Kingdom? If there is not consistency, there has to be at least co-ordination of those things. It is right that the capacities are devolved. It is right that the Scottish Bill is doing what it does and the UK Bill does what it does, but it is about where those things might rub together to create problems in the UK internal market. There are a number of examples in there. [Interruption.] I am not saying that it will happen, but we need to have consistency if not co-ordination across the UK.

George Burgess: From the Scottish Government’s perspective, the Bill is something of a curate’s egg. The provisions that we like include the red meat levy provision, which we played a large part in developing at the outset. We very much welcome that, and we would like to see a commitment from the UK Government to its swift implementation.

Other provisions in the Bill on food security and fertilisers make a great deal of sense, but we have some difficulties with others, including the livestock information provision, which has already been mentioned. Again, the concern is really about governance and the appropriate role of the Scottish, Welsh and Northern Ireland Governments.

Similarly, the organics clause to some extent recognises devolved competences, but we are concerned about the power that is given to the Secretary of State to act in devolved areas without seeking the consent of the Scottish Parliament. Other concerns of long standing from the previous Bill relate to producer organisations, the World Trade Organisation agreement on agriculture, and fair dealing in supply chains, where we have a very different view on devolved competence from DEFRA.

Alan Clarke: I will pick two, Deidre, because I am conscious of time. In relation to the LIP system that we talked about, I think there has always been a history, if there has ever been a disease breakout, that everybody has worked extremely well together and come together and shared all the information. I think it is important that that is retained and that anything that is developed in England must read across to the rest of the UK. ScotEID, again, has been leading the way on that in Scotland. There must be those links. I know the meetings happen regularly every month with the devolved associations and the developers of it, but the mechanism that George talked about is one to consider.

The second issue is levy repatriation. I have been working very closely with AHDB and HCC towards getting a scheme of operation, which can be put to Ministers, showing what the long-term solution for levy repatriation would look like. We have identified, using that scheme, the numbers involved. It would mean that every year, £1.2 million of producer levy that is currently trapped in England would come back to Scotland, and £1.1 million of Welsh levy currently trapped in England would come back to Scotland—to Wales. Apologies—Wyn will not forgive me for that one. Essentially, the scheme has been agreed by the three levy bodies. It has now gone to each of the boards, and we hope to be in a position to put that to the Ministers in a short period of time.

Behind the scenes, we have been looking at the interim solution of the ring-fenced fund—the £2 million that has been ring-fenced for the benefit of levy payers in England, Wales and Scotland. We hope to make an announcement in the next few weeks on greater working relationships between the three levy bodies. This gives us a really good opportunity. We would like to see a date put into the Agriculture Bill to say when the legislation must be passed and the scheme be in operation by. The three levy bodies are working to a date of 1 April 2021 for a long-term solution to be in place, meaning that this is the last operational year of the ring-fenced fund that we will be coming into in April. It would be nice to have that enshrined in law.

--- Later in debate ---

[Deidre Brock]

Q You were speaking just then about the conflict between natural heritage and cultural heritage, and you will know that the highlands in Scotland still have a wonderful cultural heritage, despite what was at times a quite systematic depopulation of the area. I wondered what sort of future you envisage for the people who live there now if they turn from being farmers on the uplands, which, as you know, are basically largely suitable for rough grazing—that is one of the reasons why sheep, and to a lesser extent cattle, are grazed there. If they do that, what do they then become? Just on a practical, day-to-day level, what do they then become—just land managers, because they get subsidies for food production, which only supplements part of their income? What do those people do, and how do we keep them there so that we still have communities in the highlands?

George Monbiot: I would see them as ecological restorers—people who have a different but very rich relationship with the land, bringing back wildlife and ecosystems. We would hopefully see a constant racking-up of ambition as time goes by.

It is hard to universalise it, but there is now quite a big literature on nature-based economies, showing that, certainly in some circumstances, they can employ a lot more people than farm-based economies, even in quite fertile areas. For instance, I was at Gelderse Poort in the Netherlands last year, in an area that was previously dairy and maize farms. For the purposes of creating more room for the river, the dykes were taken a mile or so back from the river and the land was rewilded. The farmers were saying there would be a loss of employment. In fact, it turns out that there was an increase of between five and six times the total employment as a result of the tourists who have come in to see the wildlife, the bed and breakfasts, the cafes and the rest of the things associated with that. The farmers have done very well out of it.

I do not know the answer to whether we can replicate that everywhere, but we should be urgently investigating other new rural economies based around the restoration of wildlife and nature. Given that we are competing here with a loss-making economy—an economy where the farmers would make more money if they took the subsidy and stopped farming—it is not a very steep competition that we have to win if we are to show that nature-based economies are more productive in terms of employment and income.

[Fay Jones]

Q My farmers would argue that food production and environmental delivery go hand in hand, and you cannot have one without the other. They would not be able to make any money if they did not have good soil, clean air and clean water, and they are responsible for maintaining that. If we did adopt your model of removing land from agricultural production, who would be responsible for ensuring those environmental benefits? Who would be safeguarding that?

George Monbiot: Yes, how did nature survive before humans came along? It is extraordinary, this idea of stewardship and dominion—this idea that humankind has to intervene to protect wildlife and ecosystems. We do not. We can do a lot to encourage the protection and to kick-start things, and we will always need a role as rangers to ensure that there are not too many conflicts between people and ecosystems. However, the idea that we are necessary to create healthy soils and healthy ecosystems—the best thing we can do in the great majority of cases is to remove extractive economies from the land and to let ecosystems recover. We need to bring back missing species, to take down fences, to kick-start woodland in places where there is not a seedbank left and stuff like that, but we need very little human intervention to get a healthy ecosystem going. While farmers are absolutely right to say that they need a healthy ecosystem to sustain their farming, we do not need farming to sustain a healthy ecosystem.

Agriculture Bill (First sitting)

Debate between Fay Jones and Deidre Brock

Committee stage & Committee Debate: 1st sitting: House of Commons
Tuesday 11th February 2020 Public Bill Committees

[Fay Jones]

Q The Bill amends the red meat levy system, in that it irons out an imbalance that has often penalised Welsh and Scottish farmers. Do you think that is sufficient, or should the Bill contain further reforms around the red meat levy?

John Cross: I had quite a lengthy history in the levy sector. The complexity around this issue is really quite deep, because it depends on where the benefit of the levy investment is secured, where the products derived from the industry are consumed and where the supported supply chains sit. As for the desire to capture and formalise a more even-handed distribution back to the devolved regions: from what I have seen of it, it does do enough. We live in a very complex domestic market; 50% of Scottish beef production is consumed within the M25. That illustrates how complex the mix is. The red meat levy is designed—yes, funded by farmers and processors—to make the best of a supply chain and to deliver business enhancement throughout for the good of consumers and producers. It is quite a complex issue and it is not just as simple as three separate lots of industry all wanting to do their own thing in isolation, because they are all interdependent.

[Deidre Brock]

Q This question is specifically for Mr Hall and Mr Cross, just about your organisations. Can you tell us, please, how you reformed; what your role is; what your governance rules are, and what jurisdiction you have in regard to Scotland and the devolved nations?

John Cross: I will leave some of the technical detail to Simon, but in principle, this is how we arrived where we are now. Yes, we have established traceability systems in this country and they work but, as we speak, they still tend to be a blend of paper and digital—sometimes both at the same time. They work but they are high-maintenance. They are sub-optimal and they take a lot of resource to keep them going. They were, of course, designed to hoard data on behalf of statutory obligations, as opposed to share data, so the design principle needed to be completely different.

I think it is fair to say that Government was faced with the reality of having to achieve an IT refresh at some stage, with some fairly urgent timescales. For a long time, industry has wanted to have the benefit of the use of its own data. Data was being collected about the industry, but the industry could not use it to enhance itself.

We came to a moment after the referendum where the industry and Government were faced with a series of scenarios that required them to think differently and start to think together—this is where the principle of co-creation came in—right across DEFRA and all its dependencies, the Food Standards Agency, the Rural Payments Agency and the others, and right across the industry to form a think-tank as to how you design, hopefully, the optimum traceability and information system that enables Government to fulfil its statutory obligations, but better and faster, while allowing industry to start adding value to itself with information.

If it is a matter of exploring global markets, you can evidence a brand vastly better. In the global marketplace, traceability is king. In that area, you have huge opportunity. Similarly, from the viewpoint of the industry looking to eradicate non-notifiable endemic production diseases, again, to tackle disease risk you need information—you need data. As soon as you have got a unique identification of any one animal, the information you can attach to that provides almost endless opportunity.