Agriculture Bill (Sixth sitting)

George Eustice Excerpts

Tuesday 30th October 2018 Public Bill Committees

[Martin Whitfield]

I hark back to the vote we previously had on the difference between “must” and “may” and probably leave it at that.

The only other point that I want to raise is that the producers, as well as being under an obligation to produce, would, under amendment 70, be allowed funding for research and development for improved crop varieties and cultivation methods. That will be important going into the future.

[The Minister for Agriculture, Fisheries and Food (George Eustice)]

I want to take the amendments from this group in turn, starting with amendment 51. Elements of the policy and the purposes that we have spelled out will often lead to incidental improvements in and contributions to public health, which I will come to describe.

A number of hon. Members have pointed out that this is predominantly a consumer choice issue. The Department of Health and Social Care and Public Health England do a lot of work to promote healthy eating.

[Sandy Martin]

I said on Second Reading that certain horticultural products, such as broad beans, are not easily found in the shops. We may well have a situation where, because of a change in demand and education in this country, people want to move to different foodstuffs, but it is not easy for farmers to change over. Does the Minister accept that there may need to be investment in farms to enable them to change over to other foodstuffs? Where does he see that investment coming in this Bill, if not in this amendment?

[George Eustice]

I was going to say that that could be provided for under clause 1(2), which enables us to support businesses to improve their productivity if that were necessary. Broad beans, as a leguminous crop, often need less or no fertiliser at all, so that can be an environmental benefit. The current EU scheme enables broad beans and other leguminous crops to be used as one of the contributory factors to the environmental focus area. That is already recognised in the existing scheme, and there would be nothing to prevent us from recognising that in a future scheme.

Under subsection (2), a lot of things can be done to support the delivery of the local sustainably produced food objective. In the last 20 years, there has been exponential growth in consumer interest in food provenance, large growth and expansion of farm shops, and growth in box schemes and farmers markets—I know the hon. Member for Stroud has a well known farmers market in his constituency. There has been huge growth in consumer interest in this area. Under subsection (2), it would be possible for the Government to design a grant scheme to support farmers to open farm shops and to develop their own marketing and box schemes.

Subsection (1) is on the purposes for the delivery of environmental goods. We can pursue a lot of policies under those purposes and objectives that would deliver increased health outcomes. For instance, under subsection (1)(f) on animal health, we could support schemes that lead to a reduction in the use of antibiotics, which would have an impact on public health and safeguard some of our critical antibiotics for the medical sphere.

Under subsection (1)(a), as I described earlier, it would be absolutely possible for us to support an integrated pest management approach, leading to a reduction in the use of pesticides where they were seen to be of concern. Under subsection (1)(a) we could also support a pasture-based livestock system; there is some evidence, although mixed, that livestock such as sheep and cattle raised on pasture and grass have higher levels of omega-3 oils, which are good for public health. There are a number of areas where the purposes we have set out under clause 1(1) also reinforce public health measures.

[Martin Whitfield]

I apologise for my slight slowness; the Minister discussed subsection (2) and suggested that productivity extended beyond the productivity of the field or produce to a wider concept of the word. Is that correct? The end of that paragraph mentions

“agricultural, horticultural or forestry activity.”

Should that not therefore read “business” rather than “activity”, which suggests the activity of growing and maturing livestock?

[George Eustice]

I discussed that with parliamentary counsel. The issue is the subject of a later clause and no doubt we will debate it in more detail then: this is not a narrow economist’s definition of productivity—it is not part of the so-called “productivity puzzle” that people are trying to solve. We are using productivity in its rounder sense, which could include reducing costs, reducing inputs, adding value and increasing the price of things. It could also include—it is very explicit about this—setting up a new business, which could be a retail business allied to a farm business.

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[Jenny Chapman]

In the Minister’s desire to resist our amendment, he keeps referring to the clause, saying that he could do this and it is possible to do that already, and therefore our amendment is not necessary. He does not seem to want to have his boss’s hands tied—his boss to be told that he ought to do something or that he needs to do something. I just want to know why that is.

[George Eustice]

As a Government, we have set out our approach and what we intend to do with these powers. We have already published some policy papers alongside this Bill, which address many of those issues. The Secretary of State has talked about public access to the countryside and the role of farms in educating children, so we have set out clearly in the policy documents that accompany the Bill what we intend to do with these powers. Come the next election, I am sure that the Opposition will have manifesto commitments that will set out their approach and what they intend to do with the powers.

Another issue was raised by a number of hon. Members: that, fundamentally, the decisions about public health and healthy eating are very much around consumer understanding, consumer knowledge and consumer choice. That is why Public Health England has the “Eatwell” plate that it promotes. We have obviously already implemented the first chapter of the childhood obesity plan. We have introduced a levy on sugary soft drinks. We are currently working on the sort of second chapter of the childhood obesity plan.

We take the issue very seriously. Work on it is led by the Department of Health; it is very high up on that Department’s agenda. It is for the Department of Health to lead on and for us to support, and it goes outside the scope of this particular Bill, which is very much about schemes to support farming, the farmed landscape and our environment.

I will give a final example about sugar, which was raised by some Members. When quotas on sugar beet production were removed, some people said, “Shouldn’t we keep sugar beet quotas? That would be a way of restricting the growing of things that we think are bad for public health.” However, the reality is that the most powerful thing was the introduction of a levy on soft drinks; the value of the sugar that goes into a soft drink is actually tiny, and messing around with the price of sugar is not what delivers the outcome. What delivers the outcome is a levy on sugary drinks that drives policies of reformulation, and that is why the levy has been a success.

We know that some of these measures to try to mess with the supply side of the chain are actually blunt instruments when it comes to delivering public health outcomes.

[Kerry McCarthy (Bristol East) (Lab)]

I mentioned in the few moments that I had earlier the recent research into food deserts. Particularly in urban areas, there are vast estates where it is very difficult for people to get access to healthy food. As I suggested, we could use this Bill to address that. It is not about the growing of the food; it is perhaps about setting up shorter supply chains, so that the food can get to these places. Maybe it could be about setting up farmers markets in local areas that do not normally have access to them. That would also help local farmers who produce the goods to find a market that would probably pay them a bit more than the supermarkets might.

[George Eustice]

There will be a place for those sorts of enterprises, although not for all. However, as I said earlier, we are looking at what we could do alongside, for instance, a county farms offer to support some of those peri-urban schemes. Sometimes they are box schemes, but they are community-led schemes in particular areas, quite often in our cities. I made it clear earlier that we believe we would be able to support those farms, under both subsections (1) and (2). That option exists, so it is there already if we should want to support it. We have been clear that we are exploring this idea and considering it. It will not be for everyone. There will always still be a place for larger-scale productions supplying the supermarket multiples where most people will get their food and where there is already quite a wide choice. However, it will be an option for some and we have kept the door open to supporting it.

To conclude, these are unnecessary amendments and many of the health benefits we have alluded to in our White Paper are dealt with through the existing measures in clause 1.

[Kerry McCarthy]

The Minister does not seem to have mentioned the food policy or food strategy or whatever it is called. I heard on the grapevine that it has been kicked into the long grass. Will he confirm that that is not the case and that work is still being done?

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[George Eustice]

The food strategy is alive and well. The hon. Lady is right and it is in my notes and I intended to mention it. We have a food entrepreneur, Henry Dimbleby, from the Leon food chain, who is doing a piece of work at the moment on the food strategy that will obviously complement what we are doing here. However, we believe we have the powers in the Bill to do the things that we want to do in this space.

On that basis, I hope that those who have spoken to amendment 51 and 70 will consider withdrawing them, because I believe that the issues they are trying to cover are already covered in the Bill.

[Dr Drew]

To start with, I declare an interest: my wife has a stall on Stroud farmers market every fortnight. Please come along to see the wonderful wares that she sells. I had to get that on the record.

This has been an interesting and wide-ranging debate. Clearly, we are not going to come to a meeting of minds, but the issue will come back. I keep reiterating the fact that the White Paper, “Health and Harmony”, and the issue of public health which it identified as a crucial element in the way in which the food chain functions in an Agriculture Bill, are not going to go away. It may be that this is not the time to force a Division. I make that clear, but we make no apology for saying that we will come back on this because it is important that we understand that people out there may not understand the legislative process but they understand what they think should be the elements of what we do for the future of the policy.

I hear what my hon. Friend the Member for Bristol East says on the food strategy. It would be helpful if the Government were clear on when it comes forward, as it should be with the environment Bill, because these are interrelated. This is the problem with legislation. We only have one side of the coin, when we need both sides to make sense of the totality of the Government’s approach.

It is important that somehow health is in the Bill and I hope the Minister will reflect on this. Public health matters because what people eat depends entirely on their access to food and its availability and what they can afford. It is also to do with the fact that to some extent we have an influence, through production and distribution.

I hope the Minister has listened to the debate. We will not push the matter to a Division at this time, but it will come back because people feel very strongly about it, whether it concerns food poverty, or purely obesity and diabetes, or the reality of how food is increasingly the reason people’s life expectancy is determined. I understand what the Minister has said and I know there are lots of contingent points in his argument. However, I hope we can extract that and at a future time clarify where public health is in relation to the Bill. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

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[Jenny Chapman]

I note that that is because we are in a customs union. That is my point: we have those high standards now, and I want to ensure that we have them in the future, and I do not see any way of doing it other than putting it on the face of a Bill—I accept that it does not need to be this Bill, but we need to know that this will happen.

[George Eustice]

On a point of clarity, my right hon. Friend the Member for Scarborough and Whitby is right that we have border inspection posts around the UK. They are a port of entry currently for the EU, and when we leave the EU they will still be a port of entry, with all the broader inspection facilities we need, for countries outside the EU.

[Jenny Chapman]

That very much depends on the terms on which we leave the EU. Whatever those terms are we need to be absolutely clear about our standards on animal welfare, food safety and all the rest of it. If we are not, there is scope for these very high standards of which we are all proud to be watered down in some way. That is the sole motivation behind the amendment. It is not intended to ridicule the Government, or to try to show that we care more about animals than Government Members do or any of that. It is about making sure that, in the future, the UK maintains its position as a world leader on these issues.

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[George Eustice]

I will begin with amendment 75, as the other two amendment both pertain to animal welfare. This amendment effectively says that people have to abide by retained EU law before they can be eligible for any assistance. Retained EU law is coming across through the European Union (Withdrawal) Act 2018. It will apply to everyone, whether or not they are in a scheme. We do not believe the amendment adds anything or is necessary, as retained EU law will become UK law and will be enforceable as such to everyone. The important thing about the new schemes from our point of view are the conditions attached to them. We deal with that very differently, in clause 3, which we will no doubt debate later and which has all sorts of provisions for checking, enforcing and monitoring. It requires provisions for the keeping of records and allows us to impose penalties, establish appeals processes and refer powers of entry, for instance. Clause 3 sets out clear enforcement powers and the ability to set conditions on access to such schemes, which in our view is the right way to approach this.

There is also a technical problem with amendment 75. The hon. Member for Bristol East at least said that everybody should abide by the legislative baseline, whether that be retained EU law or any other domestic legislation. The problem I have with the amendment is that it treats retained EU law as if it were the only law that matters. It is mute on other national law. If we were to require people to abide by the law—which they might believe they would be required to do anyway—why would we require them to abide only by retained EU law, rather than any other class of law? To me, that does not make much sense.

[Jenny Chapman]

We do not want it to be retained EU law; we want it to be primary UK law. That is our point, because we think that has a different status to retained EU law.

[George Eustice]

The provisions that I am reading are very much around EU law and retained EU law, but I take the hon. Lady’s point that she may have intended the measure to be broader.

There is a third point, however. We are clear that we accept some of these principles. We will provide for a new environmental body to police them. We have already said that we are committed to those principles coming across. There is a difficulty, however, in the practice of a scheme where financial incentives are being paid. It is not always black and white. For instance, the “polluter pays” principle sounds great in theory, but what if there is a diffuse pollution incident somewhere in a water catchment that might involve small contributions from a number of farms that are difficult to locate? It is not always easy to just say, “We need regulation,” or, “We need enforcement,” on this farm or that farm.

In recent years we have successfully paid farmers to support them in investing to improve slurry infrastructure. We have had a successful scheme in the past two years to pay farmers to put lids on slurry stores, so that they can reduce ammonia emissions, for instance. If we are serious about tackling complex environmental issues such as diffuse pollution, we have to be willing to venture beyond what can be achieved with a blunt regulatory instrument and instead be willing to have financial incentives, rewards and grants to support good practice. A requirement to abide by the “polluter pays” principle will often be used, as in this case, by people who want to sit on their hands and not spend money. If we are serious about doing payment for public goods properly, we must be willing to exercise judgment and to support schemes that may fall into the grey area between what would normally be covered by regulation and what would be covered by an environmental purpose.

Amendment 74 relates to animal sentience, on which we have already published draft legislation. The Government are absolutely committed to making the necessary changes to UK law to ensure that animal sentience is recognised. This country has always been a leader in the field. In 1875, we were the first country in the world to pass legislation to regulate slaughterhouses. The Protection of Animals Act followed in 1911, and in 1933 we updated a lot of our regulation, particularly of slaughterhouses. The Animal Welfare Act 2006 recognises animal sentience. We would never have passed any of that legislation if we did not believe that animals were sentient beings. That is beyond question; both sides of the House and all Governments have believed it for at least 140 years. We are committed to introducing a Bill to recognise animal sentience.

[Dr Drew]

Will the Minister assure us that that Bill will be introduced before March? If not, what will the status of farm welfare be if we crash out of the EU, for example?

[George Eustice]

I cannot guarantee that that Bill will be introduced by March, but obviously we are working on the basis that there will be an implementation period, in which case all those principles will apply. More importantly, however, I can guarantee the hon. Gentleman that all retained EU law—the entire body of legislation that governs everything from slaughterhouses to transport regulations—will be brought across. That is already happening in a large wave of statutory instruments made under the European Union (Withdrawal) Act 2018. Every single piece of EU animal welfare legislation will be effective and on our statute book by the end of March.

[Dr Drew]

There is the rub. We know that something like 80 SIs are coming our way. We may not choose to object to them all, but even if we object to only eight or 10, it will wear the Minister out, wear me out and have huge implications. Effectively, it will mean that we cannot do anything else, because that is what the nature of the SI process implies. It is all well and good saying that secondary legislation is the way forward, but it will not necessarily be very practicable.

[George Eustice]

rose—

[Mr Dunne]

May I help the Minister on that point?

[George Eustice]

I think it is probably best if I answer one intervention before I take another.

We are in the middle of a huge decision to leave the European Union. An enormous amount of work is needed under the withdrawal Act to ensure that we have a functioning statute book on year one; we all recognise that, and it will necessarily take priority in the months ahead. However, I reassure the hon. Member for Stroud that all the EU regulations that bind us on this issue will still be in force in UK law when we leave the EU at the end of March. That will be unaffected by whether a Bill that recognises animal sentience has been introduced, because none of the regulations that we are bringing across are contingent on the overarching principle of animal sentience.

[Mr Dunne]

I have the distinct privilege of serving on the European Statutory Instruments Committee. The Leader of the House has reassured us that the volume of work for us in determining whether the forthcoming statutory instruments should be laid under the negative or the affirmative procedure will be very similar to that of scrutinising the routine number of statutory instruments that the House considers year on year. The forthcoming SIs should not give rise to the kind of concerns that the hon. Member for Stroud has voiced.

[George Eustice]

As a member of that Committee, my hon. Friend has to digest those points, so he probably has a clearer idea of the work that will be involved, but we recognise that it is a big exercise.

The hon. Member for Darlington raised an important point. I can reassure her that the Government are committed to publishing legislation that will recognise animal sentience. We do not believe, however, that it is right to bring that into the Bill in the way that she has by linking it only to the narrow issue of how payments are made, when we are talking about purposes that inevitably recognise animal sentience, because that is why we are incentivising farmers to adopt high standards of animal welfare.

Amendment 71, tabled by the hon. Member for Bristol East, also seeks to establish an additional rule that says broadly that financial assistance cannot be given unless it is over and above the regulatory baseline. I understand her point, and it is a legitimate question to ask, but it is wrong to try to prescribe it in that sort of amendment, for reasons that I will explain.

As a country, we have done something new in including animal welfare as a public good. I have been clear that I wanted to do that for the last couple of years. I have worked closely with the RSPCA, Compassion in World Farming, Farmwell and other organisations. We are trying something new. Just last week, I met Peter Stevenson from Compassion in World Farming.

We are considering several things in the design of a future animal welfare scheme. One of those is the possibility that we could financially reward farmers and incentivise them to join some kind of United Kingdom accreditation service-accredited higher animal welfare scheme—perhaps the RSPCA one or others that may form. We may also choose to support farmers to invest in more modern housing that is better for animal welfare. In the pig sector, there are some issues with outdated housing that does not lend itself to providing for modern welfare needs such as enriched environments and straw in barns. We may also have a third category of payment for the adoption of particular approaches to husbandry, such as lower levels of stocking density, systems that are more free range or even pasture-based systems.

Finally, we are interested in the potential for payment by results. Farmwell has done some work on that. The hon. Member for Bristol East mentioned Compassion in World Farming and its view about payments for curly tails. If pigs go to slaughter with intact curly tails that have not been damaged, that is a good indicator that they have had a higher-welfare existence. Likewise, Farmwell has developed a feather-cover index for a depopulated flock of laying hens, which is a good indicator as to how well people have approached farm husbandry. In a free-range system, there can be good and poor farm husbandry.

It is a complex area. If there is a mixture of payment for capital items to renew housing, which may have higher welfare outcomes, payment for joining accreditation schemes and, potentially, payment by results, it is not always obvious how that would be benchmarked against a regulatory baseline, which by definition does not cover everything.

If the hon. Lady is concerned about money being spent in that area in a way that simply pays farmers for what they are already doing to comply with the law, I guarantee that there will be no shortage of push-back and pressure from within the internal machinery of Government—the civil service, the Treasury, the Cabinet Office and other Departments—to ensure that money is spent only to get additionality. We will not have the problem that she perceives, which is that we would spend money on things that are already a requirement by law, but if we were to accept her amendment, we might have a different problem, which is that we would place barriers in the way of policy innovation. For that reason, I hope she will not press amendment 71.

[Mr Goodwill]

The Minister talks about paying farmers for what they are doing already, and having had experience of the entry-level environmental scheme, that is precisely what it did. He might recall, however, that one of the questions I asked the farmers unions was how we should get the balance right between rewarding people who have always been doing the right thing and incentivising improvements on land that has not been looked after in the same way.

[George Eustice]

My right hon. Friend makes an important point. I am conscious that on animal welfare and in the agri-environment schemes, a lot of farmers have already done a huge amount of work, and it is important to recognise that and to continue to reward them for that. The baseline, such as it is, should be anchored somewhere around the regulatory baseline. Even then, I do not think we should have a hard and fast rule, for the reasons I have explained on issues such as investment in slurry management. In this innovative new field of animal welfare, there are grey areas, and it is not always right to have a hard and fast rule.

The hon. Member for Bristol East mentioned the issue of cross-compliance. The conditionality on new schemes is provided for in clause 3. If somebody enters a new scheme and is in breach of it in some way, there are provisions for financial penalties and for the powers that we would need to be able to do that.

Having been farming Minister for five years, and having wrestled with cross-compliance, I am not a great fan of how it works in practice. It is a rather dysfunctional system. There is literally nothing—bar one thing—in cross-compliance that is not already in our domestic law. All the requirements on ear tagging, animal health and animal welfare, or the issues around TB testing and good environmental condition for land, are already requirements in our national law. All that cross-compliance really gives us is a sort of easy and rather unjust way to claw penalties out of farmers without really giving them a chance for a fair hearing in court. In my view, it is not a very satisfactory system. We would need some sort of system of fixed penalty notices in future, so that there are ready remedies for minor breaches, but we could design something far better. Cross-compliance will remain in the legacy scheme that we will come on to debate, but we will have the opportunity to modify and improve it and to remove some of the rather unnecessary administrative burdens that can get in the way.

I hope that I have managed to persuade hon. Members that the Government remain absolutely committed to amendment 74 animal sentience, but we believe it should be in another Bill. We have already published draft legislation. On amendment 75, retained EU law will already be binding on anyone, whether or not they are in a scheme. I hope that the hon. Member for Bristol East will not press amendment 71, as it would be counterproductive to the cause that I know she believes in very strongly.

[Jenny Chapman]

I am not surprised by any of the Minister’s comments. His attempt to reassure the Committee on EU retained law and SIs was not particularly effective. As we said at great length during the passage of the withdrawal Act, the ability to amend the Act is of deep concern to us. We think it is far better that the provisions should be in the Bill now, so that everyone can see exactly where we are. We are not happy with the approach that the Government have taken, and not just in these areas but in many others.

The Minister invited me to look to clause 3 for reassurance. Again, we come back to the powers that have been given to the Secretary of State, which are so wide-ranging. Although there are suggestions in the Bill about what those powers may be used for, the lack of precision is astonishing. Clause 3(2) states that “under subsection (1)” the Secretary of State

“may (among other things) include provision”.

It is extraordinary that the Government are attempting to proceed in this manner and expect the Opposition to go along with it. We are just not going to do that.

I might not be minded to press the amendment to a Division today, but I do not want the Committee to interpret that as demonstrating any kind of satisfaction on our part; it absolutely does not. We intend to return to these issues, which is one of the reasons why we will not press the amendment today. That might increase our chances of being able to return to the issues, which are fundamental to why we think the Bill is so flawed. I take the point about linking the issues to financial assistance. There might be something in that, although taxpayers want to know the principles by which their hard-earned cash will be spent in this area. I do not think that the Minister has responded adequately to our concerns. I expect that in the other place, and on Report, we will go over those issues again.

As for amendment 74 and the promised new Bill, we want and need to see the Bill, not just assurances that it is on its way. The Secretary of State said, “I want this to happen because I too am a sentient being.”

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[Deidre Brock]

Forgive me, but I am speaking about amendment 90, which makes it clear that it would impose financial restrictions on the schedule. I am objecting to it because, from the Scottish Government’s point of view, that is not desirable.

I note that paragraph (b) would allow payments to be made to landlords and others who have an interest in the land but do not actually produce anything, rather than farmers. That is certainly a concern. I feel strongly that these kinds of decisions should be made by the Ministers setting up the scheme, rather than by people in this room.

[George Eustice]

I will take each amendment in turn. I am delighted that the shadow Minister described amendment 52 as a probing amendment. I will explain why the Government have chosen not to take that approach for England. He asked what Wales did to get this. I can clear up the mystery: there is no mystery. This is a fully devolved matter. The Welsh Government have the power and ability, if they want, to introduce their own Bill. They have taken, in my view, the very sensible decision to say that, for the time being, they want to make sure they have legal clarity, so they wanted a schedule that effectively mirrored the Bill for England. At a later date, they will consider additional primary legislation. The clause is in the Bill not because they won an argument; it is simply because they asked for that additional clause.

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[Dr Drew]

I go back to my original remarks: pillar 2 was all about the rural underpinning of what happens in rural areas as well as agriculture. Is the Minister saying we are precluding any form of support for things that relate to the rural?

[George Eustice]

No, not at all, and I will return to that point. We have an alternative plan for rural support and support for rural communities.

Paragraph (c) of amendment 52 states that financial assistance can be used for

“supporting persons who are involved in the production, processing, marketing or distribution of products deriving from an agricultural, horticultural or forestry activity.”

That could open the door to Unilever being paid grants for its manufacturing or a haulier with a chill chain operation being paid to take food to Tesco. It would even enable money to be paid to Tesco itself. I am not sure that the amendment would achieve what those who suggested and promoted it hope to achieve. In fact, it would open the door to a severe dilution of the Bill’s intention.

That said, we understand from our discussions with the Welsh Government that they are a little uncertain how they will use the power. They wanted it as a fall-back provision and envisaged using it for a short time until they could replace it with something else. It may be a provision in the Welsh schedule that is used in a very limited way, if at all, depending on the development of Welsh policy.

I turn to our plan for delivering for these areas, which is the shared prosperity fund. It will have a rural strand. The shared prosperity fund will replace the plethora of EU structural funds. We are working very closely with the Ministry for Housing, Communities and Local Government and other Government colleagues to ensure that there is a rural programme within that shared prosperity fund and to ensure, for example, that LEADER and other grants have some kind of successor scheme.

[Dr Drew]

I hear what the Minister says. Does he agree that there should therefore be some ring-fencing? Rural always gets crowded out. Does he agree to negotiate outside this space on what ring-fencing could mean?

[George Eustice]

One Bill at a time. When legislation is introduced on the future shared prosperity fund—I understand that there will be a consultation later this year—everyone will then have an opportunity to participate in that debate, but it is a debate for another time. We have enough issues on our hands at the moment.

Amendment 88, tabled by my hon. Friend the Member for Ludlow, is similar to amendment 52, with the exception that he has added a paragraph (d) that would effectively require us to have regard for self-sufficiency. I note that he has borrowed the language in paragraph (d) from section 1 of the Agriculture Act 1947. Obviously it was a very different time—1947 was immediately after the second world war. We still had rationing books; we did not end rationing in this country until 1954. Our levels of self-sufficiency in the run-up to the second world war had been woefully low.

To put that in context, self-sufficiency today is very high by historical standards. In the late 19th century, and up until the second world war, our level of self-sufficiency hovered between 30% and 40%—far lower than it is today. It was a series of interventions, including the 1947 Act and others, that meant that it peaked at somewhere close to 70% in the late ’80s. As a number of hon. Members pointed out, there was a cost to self-sufficiency at that level: appalling levels of intervention, perfectly good food being destroyed, and production subsidies to produce food for which there was no market. The old-style production subsidy regime that used to pertain to the common agricultural policy was totally dysfunctional and severely discredited, and was therefore dismantled some time ago.

It is important to recognise a distinction between self-sufficiency and food security. Sometimes people conflate those terms. Food security depends on far more than self-sufficiency. We know that to deliver genuine food security both nationally and internationally, vibrant and successful domestic production and open markets are necessary. Just look at this summer, when we had an horrendous drought and crop failures across the board. That happens. It is the nature of farming, and it is therefore important, in order to protect food security, that we have open markets and trade. That has always been the case.

The other reality is that in a modern context the greatest threat to food security is probably a global one. We have a rapidly growing population, set to reach 9 billion by 2050, and we have the countervailing force of climate change and a lack of water resources, which means that in parts of the world where we are currently producing food it may be more difficult to do so in 10 or 15 years’ time. Scarcity of water could be a global challenge. The issue of food security is less about national self-sufficiency in case there is another world war—our negotiations with the EU are challenging but we do not envisage it getting to the state of our requiring something like the Emergency Powers (Defence) Act 1939. The challenge on food security, insofar as it exists, is ensuring that we can feed the world.

Another question is how best to deliver food security and a successful farming industry. Is it best to do so through direct payments—subsidy payments based on how much land farmers have? Direct payments were decoupled from production some 15 years ago, so those who suggest that direct payments are somehow a guarantor of food security are wrong. Many hundreds, or possibly thousands, of people own a bit of land, have a job in the City where they earn their income, mow the grass a couple of times a year and keep a few pet sheep on the land, but nevertheless hit the collect button on their single farm payment. That cannot be a viable, long-term approach.

The question therefore is how do we best support a vibrant and successful farming industry? Our view is that we should not do it through subsidies of the old style, but by supporting farms to become more profitable, to reduce costs, and to produce and sell more around the world. That is why the approach that we have taken to deliver food security, such as it is, is included in subsection (2), which covers the power to give grants to help farmers to invest, and the power to support research and development so that we can see the next leap forward in plant breeding or in animal genetics. There are powers later in the Bill that we will debate at a future date to allow producer organisations to be formed so that farmers have more clout in the marketplace and get a fairer price. There are powers to improve fairness and transparency in the supply chain. Where we want to end up is with a successful, vibrant, profitable farming industry that is able to produce more food.

[Sandy Martin]

I am listening carefully to what the Minister is saying, but subsection (2) does not mention food. It mentions some of the activities that may be invested in in the production of different foods, but there are all sorts of people who would want to produce very good, sustainably produced, healthy food, who would not be able to get any support whatsoever from the Government under subsection (2).

[George Eustice]

I do not agree. Subsection (2) is very clear. It gives us the power to

“give financial assistance for or in connection with the purpose of starting, or improving the productivity of, an agricultural, horticultural...activity.”

It could not be clearer. It gives us the power to invest in the way that I have described.

[Jenny Chapman]

This is problematic. I do not think the Minister knows how to answer his own questions about how best to support farmers. Clause 2(2) says:

“Financial assistance may be given subject to such conditions as the Secretary of State considers appropriate.”

I do not know how much wider we could get, and my hon. Friend the Member for Ipswich is worried about its being too narrow. That is the problem with the Bill.

[George Eustice]

I do not accept that criticism of the Bill. We have discussed many times the romantic attachment of some hon. Members to the 1947 Act. Let me just read from it again. It describes Ministers being able to do things that they deem “expedient”. We have a concern about giving the Government and Ministers power to get things done, but that is what has been missing in our time in the European Union. We should embrace the fact that we are now able to get things done as a country.

My final point on food security is that, if we look at the evidence, the sectors that contribute the most to our self-sufficiency as a nation are the ones that are unsubsidised, not those that are subsidised. We are 96% self-sufficient in carrots, which is traditionally an unsubsidised sector for which the current single farm payment is irrelevant. We are 92% self-sufficient in cabbages and 95% self-sufficient in peas. We have seen a big increase of 15% in the production of vegetables since 2010 and a 50% increase in top fruit and soft fruit production. The unsubsidised sectors have been the most innovative and have done most to contribute to our self-sufficiency.

I turn to amendment 89, which is in the name of my hon. Friend the Member for Ludlow and is supported by my hon. Friend the Member for Gordon. It seeks to limit the eligibility for financial assistance across the board to people who are in farming or food production. I understand the intention behind the amendment. The concern, if I could caricature it, is that in future a Government may just give all the money to green non-governmental organisations, which will buy a large fleet of Land Rovers and employ a large army of regional officers to go around chivvying farmers to do things differently. That is not our intention at all.

We have been very clear that we envisage a future where there will be an environmental land management contract principally with the farmer or the landowner. There is a very important reason for that. We cannot deliver any of the public good benefits unless the landowner or the occupier of the land—the tenant—are fully on board and fully signed up to do so. That is why virtually every one of the paragraphs of clause 1(1) refer to the farmland or the farmed environment and managing land in such a way as to promote the environment. To do that, the landowner or the tenant has to be the main recipient of that funding and the person with whom we have the contractual arrangement.

What we do not want to do is rule out the scope for there to be, for instance, some lower level facilitation work to get regional level co-ordination, which a group such as the RSPB or the Wildlife Trusts might engage with. There could be a role to design schemes to have some facilitation funding, as we do now under the EU schemes, for some of those third-sector organisations. In some national parks or areas of outstanding natural beauty, we might find that there is a collective body that could do that in partnership with farmers.

While we cannot accept this particular amendment, I understand the concern of my hon. Friend the Member for Ludlow. With the policy papers that we have launched, I can reassure him that we absolutely intend that it will be farmers, landowners and tenants who receive the lion’s share of these funds. They might choose to subcontract certain responsibilities and tasks to third-sector organisations, but if we want to ensure that there is delivery, our relationship must be with that landowner or land occupier.

--- Later in debate ---

[Dr Drew]

I have very little to add to what my hon. Friend has said. Basically, the amendment seeks to clarify what is meant by “productivity”. We believe the Government have quite a narrow definition of productivity that undermines the environmental sustainability that the Bill is based upon. We hope the Minister will say how he would interpret productivity and that he will take a wider view since we are looking at different aspects of productivity besides the purely agricultural and limiting definition that could be implied. For us, the issue is about improving quality and efficiency, but also about how we go about doing that. Again, that is the weakness of the Bill. It says a lot about what it might want to do, but not much about how it will do it, so we want that clearly defined. Reducing dependence on pesticides, weedkiller and fertilisers is implied in the way in which the Bill is being promoted, but exactly how that will be attained is not in the measure.

Sustainability, a primary feature of the Bill, needs to be spelt out more clearly in terms of how the legislation is entailed, otherwise there will be a misuse of public money. For example, we are not really spelling out how we want to minimise the carbon impact of agriculture. We know that agriculture could achieve carbon sequestration much more fully than it currently does.

On climate change, we are looking at issues to do with restocking levels and how they would impact on emissions levels, and at the antibiotic issues that my hon. Friend the Member for Bristol East identified. Amendment 53 would require a proper consultation on the meaning of “productivity” and a much broader understanding of sustainable productivity.

[George Eustice]

I will try to be brief in dealing with the two important points. First, the impact of amendment 73 would be to subordinate subsection (2) to the purposes in subsection (1), which is problematic on numerous levels. I can reassure the hon. Member for Bristol East that when it comes to the payments that we will make for the delivery of public goods, which we envisage being the cornerstone of the future policy under subsection (1), there will be conditions attached to those and requirements for entering such schemes. There will be enforcement provisions, as I said, in clause 3 to deal with that.

I understand the hon. Lady’s concern that we do not want to support something on the one hand that might undermine objectives on the other, but it is inappropriate to link the two in the way that she does because the right way to do it is to apply conditions on both. It is possible for us to apply entry-level conditions for the payment of productivity grants so that they explicitly do not undermine some of our other objectives. That will change from case to case depending on what is being supported. If there was something that dramatically improved yields but had an impact on the environment, we might be cautious about supporting it. If we supported, for instance, robotic technology to aid harvesting, it might not have any natural crossover with the provisions in subsection (1). I think the correct way to approach this is to put the right conditions on schemes under both subsection (1) and subsection (2), so that they complement rather than undermine one another. The amendment is unnecessary.

--- Later in debate ---

[The Chair]

With this it will be convenient to discuss new clause 7—Environmental land management contracts—

‘(1) The Secretary of State shall, by regulations, make provision for environmental land management contracts.

(2) A person who manages land may enter into an environmental land management contract with the Secretary of State to deliver one or more benefits under section 1(1).

(3) A person who manages land and who seeks to enter into an environmental land management contract with the Secretary of State must first submit a land management plan.

(4) The Secretary of State must approve a land management plan submitted by a person who manages land before entering into an environmental land management contract with that person.

(5) Regulations under this section may provide for—

(a) one or more persons or bodies to act on behalf of the Secretary of State for the purposes of entering into an environmental land management contract, and

(b) requirements which a land management plan must meet if it is to be approved by the Secretary of State under subsection (5).

(6) Regulations under this section are subject to affirmative resolution procedure.’

This new clause would require the Secretary of State to make provision for environmental land management contracts.

Given that the Committee has thoroughly debated the amendments to clause 1, I hope that comments in the clause 1 stand part debate will be brief, and will not rework arguments that we have already heard today.

[George Eustice]

We have debated a wide range of topics and there have been amendments moved to, and discussions on, virtually every conceivable aspect of clause 1. The Government believe that clause 1(1) has a broad range of purposes and outcomes that enable us to deliver all the schemes we want, and that clause 1(2) has all the powers we need to support a profitable, vibrant and growing agriculture and horticulture industry.

[Dr Drew]

I shall not say that much more. We have our misgivings about “must” and “may” and some of the issues that arose in the wider debate. It was appropriate to debate clause 1 in considerable detail, because it is the clause that sets the Bill in the direction of travel that it is taking.

I shall confine my remarks mainly to new clause 7, which is important. Not least of the remarks I want to make is that the Government have been clear about setting a lot of store by environmental land management contracts. The White Paper, “Health and Harmony” contained a quite long piece on environmental land management. Hon. Members will be pleased to know that I will not quote the whole of it, but it does say:

“The government will work with farmers and land managers who wish to improve the environment by entering into environmental land management contracts, which could span several years.

These contracts will make sure that the environmental benefits farmers help deliver, but which cannot be sold or bought, are paid for by the public purse.”

This is about money and how we pay farmers and others to do things on the land. The White Paper gives lots of examples, including

“helping deliver high air and water quality”

and

“protecting and enhancing biodiversity on their land, by providing habitats for wildlife, for example”.

We feel that new clause 7 is worthy of inclusion because it tries to identify from the Government exactly how environmental land management contracts will operate and the way in which moneys will be paid. The danger is that such things will slip by if we do not draw attention to them. Various organisations support what we are trying to do, including the Uplands Alliance and the Joint Nature Conservation Committee for the lowlands. The Ramblers are keen to ensure that access to the land is a crucial part of any contract that is negotiated, so that when public moneys are granted, people have the right to access the land.

The previous Labour Government spent a lot of time on access arrangements. Sadly, we did not get as far as we wanted on coastal access, but land was made available for what is figuratively called “the right to roam”. That was done in perhaps a more persuasive manner than was necessary—the Countryside and Rights of Way Act 2000 introduced legislative bite—but there was solidity in how access was allowed. That is why it is important that we link access to the debate on clause 1.

I do not have much more to say about new clause 7. We are not happy with some aspects of how clause 1 has been dealt with. There have been lots of promises and good intentions, but there are holes in the Government’s approach to the Bill. It is not just me saying that; the House of Lords Committee was scathing about the way in which so much depends on statutory instruments, rather than being in the Bill. We will vote against the clause, because we feel that it is important to get some of the detail we have been arguing for into the Bill.

We have spent a lot of time—more than five hours—on clause 1, but it is effectively what the Bill is about. If clause 1 is not right, the rest of the Bill is pretty unimportant. We will be tabling other amendments, but we have spent a lot of time on the clause to try to get the Bill right. Sadly, the Government have not moved as far as we want them to. Hopefully, they will get other chances on Report and Third Reading, and things will happen to the Bill in the House of Lords. We are trying to be helpful. We not trying to wreck, but to improve. With that in mind, I hope the Government will understand why we are not willing to vote for the clause.

[George Eustice]

Briefly, the Government regard new clause 7 as unnecessary because clause 1, as it stands, gives the powers necessary to design schemes. The lesson we have learned from decades of working with these schemes is that the environment is inherently complex, so we often need an iterative approach to the design of schemes so that we can add, remove or refine options as we move forwards.

The system that we have had with the common agricultural policy has been completely dysfunctional and unsuited to that aim. We have ended up with a morass of regulations that define everything from the minimum and maximum width of a hedge, to the maximum width of a gateway, what size a buffer strip should be, what type of flowers people can grow, and what type of plants people can grow on top of a hedge. It is a ludicrous morass of regulation and we do not want to recreate it. We need the powers that will enable us to design contracts that really work, farm by farm, at local levels.

[Dr Drew]

I hear what the Minister says, but those environmental land management contracts will be even more complicated. A whole-farm approach is great—we want that to happen—but we are going to look at every bit of woodland and watercourse, and all the ways in which field boundaries are currently maintained. That will all be wrapped into the contracts, and somebody has to manage and monitor that. Will that be any easier than the current system?

[George Eustice]

Yes, I believe it will be easier, because our vision is that there will be an expert on the ground. That might be somebody from one of our agencies, such as Natural England, or it might be an agronomist with whom a farmer works, who visits the farm, walks the farm, and sits around the kitchen table with the farmer to help them put the scheme together. Having given it their assent, there is then a presumption that it is supported through the system.

We want less emphasis on mapping, and fretting about a bush in a field in Derbyshire and whether it is an eligible feature, and whether a farmer claimed something that he should not have claimed. We want to get back to a human relationship between an adviser and a farmer, and I believe that we can make the systems work far better. To do that, we must avoid trying to define too much in regulation, since it hampers the ability for judgment on the ground.

Question put, That the clause stand part of the Bill.