East Anglian Fishing Fleet

George Eustice Excerpts

Wednesday 16th November 2016 Westminster Hall

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

I congratulate my hon. Friend the Member for Waveney (Peter Aldous) on securing the debate. He is a long-standing champion of the fishing industry generally and the under-10 metre sector in Lowestoft in his constituency specifically. Lowestoft is also home to CEFAS, the world’s greatest centre of excellence for fisheries science, and long may it continue to be so.

My hon. Friend described some of the history of the decline of fishing in areas such as Lowestoft and along the east coast. The reasons are varied. He highlighted the decline of the herring industry, for example, and the fact that herring became a less popular fish in this country. Further north, the decline of fishing in places such as Grimsby can be plotted against the cod wars and the UK long-distance fleet being displaced from the waters around Iceland. Now that we are leaving the European Union, however, we have many opportunities to reform and change the way we manage fisheries in our exclusive economic zone.

My hon. Friend made it clear that he had campaigned to remain. I should probably point out that I campaigned to leave, and one of my reasons for doing so was my experience as a Fisheries and an Agriculture Minister over three years, which meant that I saw up close how EU law works in practice, as well as in theory. That made me conclude that we would do better if we took back control and made our own laws—we could get things done and change things when they needed changing.

In the specific context of fisheries, I highlighted two issues in the referendum campaign. First, at the moment we allow the EU to lead for us in important negotiations on pelagic species such as mackerel, and on the North sea with countries such as Norway. Those negotiations would be more effective if we had a seat at the table. Secondly, leaving the EU gives us an opportunity to revisit the allocation of quotas, which in some cases is unfair—parts of the fleet do not get a fair share of the agreed international quota.

Now the referendum is over, however, it is important that we all stop fighting the referendum campaign. For me, the real challenge is to put together a new type of partnership to recognise what the people of this country were telling us: they want us to take back control, although they also want us to put in place a close working partnership with other countries. They want us to be an outward-looking country, which we certainly will be as the UK.

In the referendum campaign, I was also clear that some things would not change. First, we will still fish sustainably and in line with the science. The UK has been the champion of sustainable fisheries. Secondly, we need to have some kind of quota or effort regime to restrict fishing effort, because in a mixed fishery that is the only way to have sustainable fisheries. Thirdly, I was very clear that we must continue to strive to end the shameful practice of discarding perfectly good fish back into the sea. That remains a manifesto commitment and an objective of future policy. Finally, the reality of fisheries is such that there will always need to be a large degree of international negotiation. That will not change.

We are working on new policy, and a huge amount of analysis is going on. My hon. Friend will be reassured to know that many of the issues that he highlighted towards the end of his speech are indeed ones that we are looking at—I will touch on some in more detail. Broadly speaking, however, we have a good starting point in the United Nations convention on the law of the sea, which sets down certain principles on how we should manage fisheries in our exclusive economic zone—inside 200 nautical miles or the median line—and requirements such as the duty to co-operate with other countries, which we of course would do. They, in turn, have a duty to co-operate with us. The convention sets it down that we should have regard for historic access rights, but other countries should have regard for ours. Crucially, however, in our exclusive economic zone we will have the opportunity to change technical measures when they need to be changed, far more quickly.

My hon. Friend raised a number of issues specific to Lowestoft that I will touch on. First, he highlighted the fact that many of the vessels in the Lowestoft Fish Producers Organisation are foreign-owned—many are Dutch—and that a large amount of the catch is landed in the Netherlands and in Scotland. We are looking at that issue. We are about to review what is called the economic link, which is a set of conditions and criteria with which foreign-owned vessels must comply. We are looking at strengthening the link so that more benefits can be returned to local fishing ports such as Lowestoft, for whose vessels the quota was intended. We are planning to consult on the link and we will be looking at it as part of our longer-term review of things such as the concordat with other parts of the UK and as we develop future fisheries policy.

[Sir Henry Bellingham]

Will the Minister comment briefly on the point I made about the shrimp fishery and the Wash, and the damage that could be done by the MSC?

[George Eustice]

My hon. Friend has raised the issue with me. It is a matter for the IFCA, but I have asked officials to keep me informed.

My hon. Friend the Member for Waveney drew attention to the under-10s. As he knows, we have a manifesto commitment to rebalance quotas towards the under-10 metre fleet, because the historic problem from when the quotas were set is that the under-10s probably did not get a fair enough share of the quota. We are already delivering on that manifesto commitment. Only this year, we made it clear that in the discard uplift of the quota, the first 100 tonnes and then 10% thereafter would go to the under-10s. That means that this year alone they have already had 1,000 extra tonnes of fish, 573 tonnes of which are in the North sea, including more than 200 extra tonnes of haddock, 100 tonnes of saithe and 159 tonnes of plaice. We have already started to deliver on that and, as we roll out the discard ban, there will be further increases for the under-10 fleet—notably, cod is likely to be added for the North sea.

My hon. Friend mentioned access to the six-to-12 nautical miles zone, which dates from the London convention of 1964 and so predates us entering the CFP. We have had strong representations from the industry, however, that it would like to see that reviewed and to have exclusive access for our inshore UK vessels in the nought-to-12 zone. We are looking at that, but we have not yet taken any final decisions.

My hon. Friend mentioned the challenge of pulse trawlers. Indeed, I visited Lowestoft in his constituency back in June and I met local fishermen, who expressed that concern to me. I then asked CEFAS to do some work urgently to review the impact of pulse trawling, because there are potential issues of concern—countries such as Japan have already taken action to curtail or prevent pulse trawling. I therefore assure him that CEFAS is looking at the issue.

My hon. Friend mentioned flagship issues. A lot of that goes back to the important Factortame test case, which was a big tussle between the sovereignty of Parliament and EU law. There is an opportunity to re-examine that as we leave the EU, but again we have made no prior decisions. The area is complex and we should recognise that the licences, vessels and attached quotas were sold by UK fishermen—we have to recognise that—but I also believe that through the changes to the economic link, which we are planning to consult on, we can go some way towards addressing that concern.

I agree with my hon. Friend about the importance of trade. It is important to note that for countries such as Norway, which are in the European economic area, the customs union does not cover fisheries. Norway and Iceland, for example, therefore have separate preferential trade agreements with the EU. We will obviously be seeking to do something similar as we negotiate future trade agreements with our European partners. We are also keen to open new markets in countries such as China, Japan and others in the far east.

I agree with my hon. Friend about the importance of science. We will continue to engage CEFAS closely on that. We are committed to sustainable fisheries. When it comes to adding value to fisheries in the supply chain—something else he mentioned—we have set up a seafood working group led by Seafish, pulling together industry to see how we can improve the structure of the industry and the value it gets for its catch.

Finally, I confirm to my hon. Friend that as we approach Brexit the Department is working closely with every other Department, including the Department for Communities and Local Government, and he is absolutely right that we have a great opportunity as we negotiate future policy to get something that works for our coastal communities.

Question put and agreed to.

English Wine Industry

George Eustice Excerpts

Wednesday 16th November 2016 Westminster Hall

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

I congratulate my hon. Friend the Member for Tiverton and Honiton (Neil Parish) on securing this popular debate. I studied commercial horticulture at college, and one thing I learned was how to spur-prune vines. I remember people saying in the early ’90s that English wine could become a great, world-beating industry. At that time, although we were starting to win awards and break through, that still felt a long way off and a little far-fetched, but in the past two decades English wine has been a fabulous success story. It has become one of the most entrepreneurial areas of our food and farming industry. As many Members have said, there are lots of fantastic niche products out there.

My hon. Friend said that he thought there were some 500 vineyards. I am reliably informed that there are now 640 registered vineyards and 133 wineries, which shows how fast the industry is growing. I thought at one point that we were going to hear them all listed. Many of them were, and it is clear that hon. Members have a lot of pride in the vineyards in their constituencies.

English wines have picked up around 28 awards, including one gold award at the 2016 International Wine Challenge and three silver awards at the Effervescents du Monde. In August, a container bound for the USA left Southampton with more than 5,000 bottles of English sparkling wine from key producers across the country, including Digby Fine English, Hush Heath Estate, Bolney Wine Estate and Camel Valley. That is the beginning of a great export business, which we hope will grow.

Earlier this year, the former Secretary of State, my right hon. Friend the Member for South West Norfolk (Elizabeth Truss), held a roundtable event at which the industry committed to and said that it expected a tenfold increase in wine exports—an increase from 250,000 bottles to 2.5 million, or from £3.2 million to more than £30 million in value terms—by 2020. English producers also have an ambition to grow the area planted from 2,000 hectares to 3,000 hectares. This industry is growing in leaps and bounds.

As my hon. Friend the Member for Tiverton and Honiton said, there was also discussion at that roundtable event about soils and how the weather in this country was improving. DEFRA committed at that event to make available 3D LIDAR data to help the industry pinpoint the best areas for production. That was announced in October 2015. We are also compiling data on soil moisture content. Following the event and at the industry’s request, DEFRA appointed a single Government contact point for the industry to discuss funding matters, which several hon. Members raised.

We are working with the UK Vineyards Association in two key areas: simplifying and streamlining vineyard and production data collection with the Food Standards Agency, and providing a forum with the Health and Safety Executive to allow the sector to discuss concerns about pesticide availability, which was also raised by several hon. Members. Perhaps the most notable response at that event was the industry’s confident commitment to a tenfold increase in exports and a dramatic increase in hectares grown.

The sector’s growth and the outstanding quality of our wines have not gone unnoticed by the international wine production community. Earlier this year, I was given the honour of opening the International Cool Climate Wine Symposium in Brighton. That was the first time that the UK had been chosen to host that major international event, and only the second time that it had been hosted by an EU country. I am pleased to say it was an outstanding success, attracting more than 30 international speakers and experts from some of the most innovative and forward-thinking wine producing regions, and more than 500 visitors from across the globe, all wanting to learn and share their knowledge and experience.

The Government have played a big part in promoting our wines. A number of hon. Members asked what we are doing, and we are trying to ensure that all our embassies stock English wines. I take on board what my right hon. Friend the Member for Arundel and South Downs (Nick Herbert) said about ensuring that we spread it around and do not choose just a single brand, but celebrate all the great brands that we have. Our Great British Food unit has designated 2016 the year of Great British food. While I was in Japan at the G7 Agriculture Ministers meeting earlier this year, I took the opportunity to promote our sparkling wines at the British embassy, and we have hosted similar events in the USA and Paris, and indeed at No. 10, to raise awareness of our excellent wines and top-quality British produce.

I want to move on to some other issues that hon. Members raised. Many hon. Members invited me to get involved in the issue of duty on wine. They will all know that that is a matter for the Chancellor. A number of hon. Members mentioned the idea of a small producers’ scheme. I understand that if we were to do something similar to what pertains for beer and cider, there may be some state aid rules involved, but, given that many hon. Members raised that, I am sure Treasury officials will study the debate and look at some of the representations made.

My hon. Friend the Member for Tiverton and Honiton also mentioned the International Organisation of Vine and Wine—the OIV. One of the issues with that is, under the duty of loyal co-operation, which was a requirement while being in the EU, even if the UK had been on the OIV it would have been required by EU law to do what the European Commission told it to do. That, for a number of years, meant that the benefits of rejoining were questionable. However, obviously as we leave the EU, regain our seat on many international forums and are able to speak freely again, that is something we will look at again.

A number of hon. Members mentioned protected food names. English and Welsh wines are protected. I believe that, as we leave the EU, third countries can continue to use protected food names, and this will be one area of all those we have to discuss where it will be relatively straightforward to roll forward some kind of geographic recognition similar to what we have now. We are also exploring the possibility of using trademark regulations and the Intellectual Property Office to protect certain brands and certain specific recipes.

My hon. Friend the Member for East Worthing and Shoreham (Tim Loughton) mentioned Plumpton College. I commend the work it does in training, which is important. He also mentioned some of the restrictions on growing, which he put down to the EU. I am told that, actually, the EU restrictions on planting do not apply to the UK. I have to say that, like him, I was on the leave side and normally I would not pass up the opportunity to blame the EU for things, but, in the spirit of all being nice to one another in future, I feel I should point out that those restrictions do not apply here.

Finally, a number of hon. Members mentioned the issue with British wine, including my hon. Friend the Member for North Cornwall (Scott Mann). The practice of introducing vines dates back to Roman times—right back to the beginning—but, as well as a provision in EU law for British wine to be recognised with imported grapes, there are also horizontal regulations in UK law that require it to be clearly labelled for what it is and for the ingredients to be labelled. I am however conscious that there has been increasing conflict and pressure given the advent of English wine and Welsh wine and, as we leave the EU, there may be opportunities to introduce clarity there.

We have had a fantastic debate in which we have covered many different issues. I am out of time, but I hope that I picked up many of the issues raised by hon. Members.

Environment Council: November 2016

George Eustice Excerpts

Tuesday 8th November 2016 Written Statements

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

Agriculture and Fisheries Council will take place on 14-15 November in Brussels. I will represent the UK.

As the provisional agenda stands, the primary focus for fisheries will be a political agreement on fishing opportunities for EU vessels for certain deep-sea fish stocks, and an exchange of views on establishing a multi-annual plan for demersal stocks in the North sea.

On agriculture there will be an exchange of views on: a report from the agricultural markets taskforce; EU agricultural research and innovation; and a study on the impact of concessions in free trade agreements on agricultural products.

There are currently nine confirmed Any Other Business items tabled for this Council:

Implementation of the landing obligation, including the potential issue of fisheries choke (tabled by the United Kingdom)

Completion of action plans for EMFF specific ex-ante conditionalities (tabled by the Commission)

Outcomes from the informal EU forest directors general meeting (tabled by the presidency)

Animal welfare during transport (tabled by Sweden)

Animal welfare platform (tabled by the Netherlands)

Endocrine disruptors (tabled by the Netherlands)

Ministerial conference on lumpy skin disease (tabled by Bulgaria and Austria)

Anti-microbial resistance (tabled by Denmark)

Use of geographical indications on foods which imply customary name (tabled by Greece).

[HCWS242]

October Agriculture Council

George Eustice Excerpts

Tuesday 1st November 2016 Written Statements

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

The UK was represented by deputy permanent representative to the European Union, Shan Morgan, at the Agriculture and Fisheries Council on 10 October in Luxembourg.

Commissioner Vella gave a presentation on the International Commission for the Conservation of Atlantic Tuna (ICCAT), which focused on the poor and deteriorating state of the swordfish stock. He noted that immediate and remedial action was needed, including the introduction of a catch quota. A number of member states intervened with differing support or opposition. The presidency concluded by noting the positions, and said a more detailed preparation of the EU position would take place at working group level.

Commissioner Vella promised full transparency for the EU/Norway fisheries negotiations, as well as discussions with coastal states which feed in to this. He wanted to ensure a balance between the interests of different member states, in particular those who wanted to maximise the quota for arctic cod and those who have traditionally had to pay for it in terms of exchange of quotas with Norway. A number of member states, including the UK, underlined the importance of accessing additional quota for choke species, to avoid any disruption connected to the introduction of the landing obligation.

The Council also agreed on the 2017 catch quotas in the Baltic.

Commissioner Hogan presented the omnibus regulation, as a tool for simplification of the four common agricultural policy regulations. The Commission wants the regulation to enter into force by 1 January 2018, so that there are three years of stability before the next multi-annual financial framework. The main proposals include: a sector-specific income stabilisation tool; simpler rules for loans and financial instruments aimed at young farmers; an optional national flexibility of the “active farmer” definition; and easing the process for undue payments. Most member states indicated that they needed more time to assess the details and submit comments, but noted some proposals were not simplification. The UK welcomed flexibility on the active farmer definition, and wider access to the income support tool. Commissioner Hogan underlined that this regulation was a big opportunity but that all comments would be taken on board.

Any other business items

Items on the market situation and sugar were taken together. Commissioner Hogan made a presentation on the current market situation, noting that the milk market observatory had reported an improvement in the dairy market, and the milk production reduction scheme will further improve the situation. He also made it clear that sugar quotas will come to an end in October 2017.

Poland presented a joint statement which it had co-ordinated outlining concerns of new greening proposals. This was supported in advance by 18 other member states, including the UK. Commissioner Hogan understood a number of measures were not supported, and offered four concessions which will be discussed at the next Special Committee on Agriculture.

Austria argued that international financial institutions are not taking animal welfare in to account when they make lending decisions.

Slovenia reported from their conference entitled “The Customer has the Right to know”, which highlighted the advantages of country of origin labelling.

The Council took note of the Dutch presentation outlining the conclusions of the 39th conference of directors of paying agencies.

Commissioner Hogan gave a short explanation on a European Court of Justice case (C-113/14), and confirmed that the necessary amendments to the fixing regulation were being arranged as quickly as possible.

[HCWS228]

Oral Answers to Questions

George Eustice Excerpts

Thursday 13th October 2016 Commons Chamber

[Mr Philip Hollobone (Kettering) (Con)]

4. How many (a) cattle have been slaughtered and (b) badgers have been culled as a result of efforts to prevent the spread of bovine tuberculosis since 2010.

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

Between the start of 2010 and the end of 2015, some 160,393 cattle were slaughtered and 3,961 badgers were removed under licence in England to prevent the spread of bovine TB. We will publish figures for 2016 in due course.

[Mr Hollobone]

The loss of animal life as a result of trying to prevent this disease is absolutely horrendous. The Government are in the early years of a 25-year strategy to eliminate bovine TB. When does the Minister expect the low-risk area to be declared free of bovine TB?

[George Eustice]

We expect to have the low-risk area declared officially TB-free in the next four to five years—probably by the end of this Parliament. My hon. Friend makes a good point: this is a long haul. TB is a difficult disease to fight; it is slow-growing and insidious. That is why our strategy is very broad. The badger cull is one element, but we are doing many other things, including vaccination and putting in place cattle movement controls.

[Mr David Hanson (Delyn) (Lab)]

Not one single badger was culled in Wales due to the actions of the Welsh Government in supporting vaccination, but they face the same problem as authorities in England: a shortage of the vaccine. What steps is the Minister taking to ensure that we can maximise the use of vaccines in England and Wales?

[George Eustice]

I ensured that we continued to have vaccine available for important trial work that we are doing, specifically on developing an oral vaccine that we could deploy on badgers, which could give us an exit strategy from culls, once that was complete. However, the right hon. Gentleman is right: the World Health Organisation has asked people to prioritise use of the available vaccine on humans. It is worth noting that the dose needed for a badger is sometimes 10 times higher than that for an infant, so we have to be careful about how we use the vaccine. That is why we have suspended the use of vaccines for the time being.

[Danny Kinahan (South Antrim) (UUP)]

Minister, will we make sure that we work with all the devolved Governments, and the Irish, and learn from their expertise, so that we can know what, apart from badgers, may be carrying the disease, so that we can continually learn from each other, and so that we can deal with the problem really effectively?

[George Eustice]

Yes. The hon. Gentleman makes an important point. The chief veterinary officers in all the devolved Administrations work closely with our chief veterinary officer and veterinary teams to share experience and learn lessons. We know that Northern Ireland is using a “trap, vaccinate and remove” strategy, and the strategy in Wales is slightly different from ours in England. We are pursuing a wide range of strategies and do what we can to share evidence between the Administrations.

[Mary Glindon (North Tyneside) (Lab)]

Tragically, the social costs of bovine TB fall largely on the farming community, but the enormous financial burden is shared with the taxpayer. Given that DEFRA has stated that there is considerable uncertainty in the value-for-money figures for the new cull, how will the Minister justify them to the general public?

[George Eustice]

I welcome the hon. Lady to her post. She and I served on the Environment, Food and Rural Affairs Committee for a number of years in the previous Parliament, so she has had a good grounding for the role that she takes on. The disease is costing us £100 million a year to fight. Doing nothing is not an option; we cannot put our head in the sand. That is why we need to pursue a broad comprehensive strategy. There is no evidence that any country in the world has managed to eradicate bovine TB without also tackling the reservoir of the disease in the wildlife population.

[Mr Laurence Robertson (Tewkesbury) (Con)]

5. What recent assessment she has made of the efficiency of the Rural Payments Agency in making basic farm payments on time.

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

We are expecting payments under the 2016 basic payment scheme to be considerably improved from last year’s. The Rural Payments Agency received more than 86,500 BPS applications for 2016. A record proportion of these claims—over 80%—were received online, which will enable the RPA to process them more quickly. The agency is currently focused on paying 90% of farmers by the end of December.

[Mr Robertson]

The Minister will be aware that this is not a new problem; it has been going on for a long time. Non-payment or even partial payment causes a great deal of hardship to farmers. Given that the situation has been going on for so long, what more can he do to make sure that there is an improvement in the forthcoming year?

[George Eustice]

As my hon. Friend knows, we had tremendous challenges in year 1. This was an incredibly complex common agricultural policy with all sorts of additional auditing and recording requirements, and which carried with it complexity and caused problems for payment agencies right across the European Union. On his question about what we are doing to improve things, now that we have gone through last year’s difficult task of getting all the data on to the computer system, and now that we have 80% of claimants applying online, we believe that we are in a good position for the coming year because all the difficult work was done last year.

[Angela Smith (Penistone and Stocksbridge) (Lab)]

When the chief executive of the Rural Payments Agency came to the Environment, Food and Rural Affairs Committee earlier this year, he made a commitment to pay the majority of claims by 1 December, not 90% by the end of December. Four weeks is a long time for a farmer. Will the RPA make the majority of those payments at the beginning of the month?

[George Eustice]

The commitment was to pay 90% by the end of December. That has gone into the business plan for the RPA and is one of the targets that it is working to. The payment window does not open until early in December, but clearly we will be trying to pay, as we always do, as many farmers as quickly as possible.

[Chris Davies (Brecon and Radnorshire) (Con)]

Yes, the chief executive of the Rural Payments Agency has appeared in front of us several times at the EFRA Committee and promised to make payments by certain dates. There are cross-border farmers in my constituency and they are always at the back of the queue. Some of them were paid only last month, well outside the payment window. What more can my hon. Friend do to make sure that that does not recur?

[George Eustice]

With the complexity of the new system, there are always issues relating to cross-border claims, where farms have some of their holding in one Administration and some in the other. It is important that we share information as quickly as possible. We had a particular problem on the Scottish borders because Scotland had far deeper problems with managing the scheme than we had in England, and getting the data to make those payments was particularly challenging. I am aware that there were issues in Wales as well, and we will do all that we can to ensure that we do not encounter such problems in future.

[Rachael Maskell (York Central) (Lab/Co-op)]

Thousands of farmers have been pushed into acute financial hardship, anxiety or stress owing to the failure of the Rural Payments Agency. In the past year, 62% of payments were very late and many have still not been paid. Now the Government are planning further delays of payment, which is unacceptable. Why will not the Minister recruit the staff needed to pay everyone all they are owed by this Christmas and, in the interim, institute bridging loans?

[George Eustice]

We are not planning to cause any further delays, as I made clear. Last year when we had a difficulty we recruited some 600 additional people to process the claims and pay them as soon as possible. As I have already said, this year we are in a better position. We have 80% of claimants applying online and we have committed to pay at least 90% of claims by the end of December. In any normal year there will always be some cases that are incredibly complex, such as those put forward by the National Trust, whose large, complex claims always take longer to process.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

6. What plans she has to promote (a) local and (b) British produce through food labelling.

--- Later in debate ---

[Henry Smith (Crawley) (Con)]

8. What discussions she has had with the Secretary of State for Foreign and Commonwealth Affairs on UK representations made to the Japanese government on the Taiji dolphin hunt.

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

DEFRA leads on the conservation and management of whales and dolphins, keeping in close contact with the Foreign and Commonwealth Office, and the UK has always taken a leading position on promoting conservation. The Government raise their opposition to Japan’s hunting of whales and dolphins at every appropriate opportunity. Most recently, I raised this issue with the Japanese Fisheries Minister during an official visit to Japan in April this year.

[Henry Smith]

The international whaling ban has been extremely successful for many decades, but the minority of countries that do not respect it are looking to erode it. What further steps will my hon. Friend take to ensure that it is rigorously enforced?

[George Eustice]

I completely agree with my hon. Friend. The UK strongly supports the global moratorium on commercial whaling and continues at every appropriate opportunity to call on all whaling nations to cease their whaling activities. I currently plan to attend the International Whaling Commission meeting in Slovenia later this year, when we will reiterate our opposition to commercial and scientific permit whaling and work constructively with other like-minded countries to secure the correct outcomes.

--- Later in debate ---

[Mr Philip Hollobone (Kettering) (Con)]

T7. The common fisheries policy is among the very worst aspects of our membership of the European Union. Our waters have been invaded by European trawlermen and there has been vast overfishing. What plans do the Government have to repatriate Britain’s territorial fishing waters and revive the great British fishing industry?

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

My hon. Friend makes an important point. As we leave the European Union, there are opportunities to manage our fisheries differently. We will work with colleagues in the Department for Exiting the European Union on these matters, as we develop a negotiating position. He may be aware that under the UN convention on the law of the sea, it is accepted that we would have an exclusive economic zone going out to 200 nautical miles or the median line. That will be the starting point for discussions.

[Chris Elmore (Ogmore) (Lab/Co-op)]

T3. In Wales, the common agricultural policy provides £200 million a year, in part to protect the long-term future of the Welsh countryside. Will the Secretary of State or one of her Ministers be meeting representatives of the Welsh Government, including the Cabinet Secretary for Environment and Rural Affairs, to ensure that EU funding to protect the Welsh environment is replaced pound for pound by the UK Government?

[George Eustice]

The hon. Gentleman will be pleased to know that I met Lesley Griffiths last week to discuss these issues, and the Secretary of State plans to meet her shortly. We intend to work very closely with all the devolved Administrations as we devise a new agriculture policy for after we leave the European Union. We recognise the importance of that to every part of the UK and will engage every part of the UK.

[Mr David Nuttall (Bury North) (Con)]

T8. Parts of my constituency were devastated by the Boxing day floods last year, and the council is still struggling to restore the damaged infrastructure. It calculates that even after the £750,000 it has received from the Department for Transport, it faces a £2.6 million shortfall in repairing the damage. Will my right hon. Friend speak with Ministers across Government to see what further help they can provide to speed up the reinstatement process?

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

T5. Will agriculture and fisheries powers be devolved to the Scottish Parliament after we leave the European Union—or do the Government want to repatriate those powers to Westminster, bypassing the Scottish Parliament?

[George Eustice]

As I said in response to an earlier question, we will work very closely with all the devolved Administrations and, indeed, industry groups throughout the UK as we devise a policy for after we have left the European Union. Some elements are already devolved, but the general consensus is that there will have to be some kind of UK-wide framework. We have made no decisions on this yet and will work very closely with all the devolved Administrations.

[Mr Speaker]

I would call the right hon. Gentleman who is intently studying his iPad, but as he does not seem keen to engage we will leave him out for now. I am giving him due notice—he had his opportunity.

[James Cartlidge (South Suffolk) (Con)]

When the former Secretary of State for Environment, Food and Rural Affairs, the current Lord Chancellor, visited my constituency in May, she visited the Orwell food enterprise zone and heard about the skills challenges faced by local small and medium-sized businesses in the food sector. She said that the Government were considering a proposal to allow large food businesses to share their apprenticeship levy with the local supply chain to encourage local buying of food and local skills. Has there been any progress on that?

[George Eustice]

My hon. Friend makes an important point. I have been arguing for that to happen for some time, because some large food producers are caught by the levy but would rather use it further up their supply chain. In August, the Department for Education published proposals for funding apprenticeships in England from May 2017, which propose that from 2018, employers will be able to transfer up to 10% of their levy funds in any year to another employer with a digital account. That deals with this issue.

[Margaret Greenwood (Wirral West) (Lab)]

Marine habitats are a matter of real concern to my constituents, who are very concerned about the threat of underground coal gasification in the Dee estuary, so I welcome the Secretary of State’s earlier response on marine protected areas but would like to push her further on this point. Over the past two Parliaments the Government have created only 50 marine protected areas when their own advisers have recommended 127. Will she confirm that in the third tranche that she alluded to we will reach the recommended 127?

[Victoria Atkins (Louth and Horncastle) (Con)]

Several farmers in my constituency of Louth and Horncastle have complained to me that the Rural Payments Agency has made mistakes in the land maps that determine how much they are paid. Will my hon. Friend help me to advise them on what can be done to address that, now and in future, so that farmers in my constituency receive fair payment for the land that is actually theirs?

[George Eustice]

My hon. Friend makes an important point. Lots of farmers have been affected by the challenges we face in this first year of the new, more complex common agricultural policy scheme. A number of farmers —several thousand—had to go through a reconciliation process where we had to match some of the land-use codes they had with the land maps, which caused some complexity. I believe that the issue has now been resolved, but if she has any specific cases that are still a problem I am happy to meet her to discuss them.

[Nick Smith (Blaenau Gwent) (Lab)]

Given the recent discovery of a livestock strain of MRSA in British meat products in UK supermarkets, what action is the Secretary of State’s Department taking to stop the emergence of resistant bacteria? Will she increase support to UK farmers on the use of antibiotics in meat production, to address real concerns about food safety and exports?

[George Eustice]

The hon. Gentleman makes an important point. He will be aware that the UK is the world leader on getting out the agenda that we need to reduce our use of antibiotics in agriculture and tackle the problem of antimicrobial resistance. The Government have a strategy that sets targets for reductions in the use of antibiotics in some livestock sectors. We are also investing in research to support other approaches to husbandry that reduce the need for antibiotic use. This is an important agenda that the Government take very seriously.

The right hon. Member for Meriden, representing the Church Commissioners, was asked—

Badger Culling/Bovine TB

George Eustice Excerpts

Wednesday 7th September 2016 Westminster Hall

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

I congratulate the hon. Member for Caithness, Sutherland and Easter Ross (Dr Monaghan) on securing this well-attended debate, which shows the importance of the issue.

Scotland, of course, has a very low badger population density. Scotland is also the only part of the UK to be officially TB free, but England, Wales and Northern Ireland have this big challenge. TB is a difficult disease to fight. It is a slow-growing, insidious disease. Diagnostics are difficult because the disease does not show up quickly. The only vaccine we have is the BCG vaccine and, despite decades of research, no one has come up with a more effective vaccine—the BCG vaccine is only partially effective. TB is having a huge impact on our agricultural industry and is causing huge trauma for farmers, with some 28,000 cattle a year being slaughtered.

We have put in place a comprehensive 25-year strategy to address bovine TB, and cattle control is at the heart of that strategy. Several hon. Members have said that cattle control is the answer, but I will explain what we have. We have annual testing in the high-risk area and four-yearly testing in the low-risk area. We have annual testing in the edge area and six-monthly testing in hotspots in the edge area, and we continue to consider rolling that out. We have contiguous testing in the high-risk area where there is a breakdown, and we have radial testing in the low-risk area, going out to 3 km, where we have a breakdown. We are now consulting on greater use of the gamma interferon test so that we can pick up the disease faster. We are also looking at what more can be done in other species. We are constantly trying to refine and improve our cattle movement controls, but I put it to hon. Members that for years we have been doing everything that everyone has said we should be doing.

We continue to work on vaccination. We are spending millions of pounds on trying to develop an oral vaccine for badgers because I believe that could give us an exit strategy from the cull once we have completed a reduction in the population of some areas. We are also continuing to work on cattle vaccination to develop a DIVA test. That work takes time and costs millions of pounds, but we are doing it.

In recent years we have set up an edge area vaccination programme, with a number of volunteer groups taking part. As my hon. Friend the Member for Totnes (Dr Wollaston) said, the World Health Organisation has asked everyone to stop using the vaccine we have on badgers, and we followed the Welsh Government’s lead in doing so. We will resume our testing when those stocks come back on stream.

We are doing a huge amount of work to improve biosecurity. In a few weeks’ time I will launch a cattle health certification standards—CHeCS—accreditation scheme to try to incentivise farmers to do more for biosecurity. We have grants available so that farmers can invest in water troughs that make it harder for badgers to gain access and in fencing to keep badgers away from farmyards. We are constantly trying to improve the management of slurry, and there is already a suite of measures on farmyard manure management. We are also looking at other novel things, such as genetics. Holstein UK is working on whether genetic improvement might be able to breed partial resistance into the dairy herd in particular. I have already asked our chief scientific adviser to find out whether further work could be done to enhance that.

The badger cull is just one part of our strategy but, as I have said before, there is no example anywhere in the world of a country that has eradicated TB without also addressing reservoirs of the disease in the wildlife population. A number of hon. Members have raised questions about the science. TB was first isolated in badgers as long ago as 1971. In 1974 a trial was conducted to remove badgers from a severely infected farm, with the result that there was no breakdown on that farm for five years. Between 1975 and 1978 the Ministry of Agriculture, Fisheries and Food funded extensive work that demonstrated conclusively that there is transmission and a link between badgers and cattle, and subsequent work in Ireland has reaffirmed that finding.

The Krebs review observed that between 1975 and 1979 TB incidence in the south-west fell from 1.65% to 0.4% after the cull, a 75% reduction. Subsequently, in the late ’70s and early ’80s, more extensive work was done in three exercises. One was in Thornberry, where the TB incidence fell from 5.6% in the 10 years before culling to 0.45% in the 15 years afterwards, a reduction of 90%. In Steeple Leaze there were no breakdowns for seven years after badgers were cleared. In Hartland the incidence dropped from 15% in 1984 to just 4% in 1985, a reduction of more than two thirds.

There were claims that those experiments lacked a control, which is why the randomised badger culling trial took place. Despite having the challenge of the foot and mouth crisis smack in the middle of it, the RBCT concluded that in the four years after culling there was a significant reduction in the incidence of TB. The RBCT supported what the previous trials had shown. In fact, 18 months after the culling ended in the RBCT there was a 54% reduction in the incidence of the disease, so I am afraid that hon. Members who say that we have not followed the science have themselves not read the science. The science and the veterinary advice are clear.

[Angela Smith]

Will the Minister give way?

[George Eustice]

I will not give way.

This is an evidence-based policy. We cannot remove and eradicate TB without addressing the reservoir of the disease in the wildlife population. I would not sanction a cull of badgers unless it were necessary. Apart from anything else, it is incredibly expensive but I am also not the sort of person who wants to kill wildlife for fun. I would not sanction this unless it were necessary, and I believe that it is necessary.

I urge hon. Members to show some sense of perspective. I live next to Bushy Park and at this time of year, every year, a sign goes up on the gates saying, “We are afraid that the park will be closed for the next few weeks because we are having a deer cull.” Nobody bats an eyelid. They go somewhere else to have their picnic. We do not get protesters running around the park at night. Is that really so different? The level of scrutiny that we put on the culls and the requirements that we attach to licensing are incredibly thorough. We have rules on the distance that hunters have to be before they can take a shot and on precisely the type of rifles that they should have. We have rules saying that the badger must be stationary before a shot is taken. We are doing our utmost to ensure that the badger culling and shooting are done in the most effective way, more effective than for any other wildlife.

In conclusion, I believe that this is necessary. It is an evidence-based policy, which is why we continue to roll out the cull.

Cockling: Dee Estuary

George Eustice Excerpts

Tuesday 19th July 2016 Commons Chamber

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

I congratulate the hon. Member for Wirral West (Margaret Greenwood) on securing this debate and the hon. Member for Ellesmere Port and Neston (Justin Madders). Both have been heavily involved in trying to raise their constituents’ concerns.

The cockle fishery within the Dee estuary is managed through the Dee Estuary Cockle Fishery Order 2008, a regulating order giving exclusive rights to manage the fishery resource. In 2004, the Environment Agency made an application under the Sea Fisheries (Shellfish) Act 1967 to the Secretary of State and Welsh Ministers for a regulating order in respect of cockles in the Dee estuary to grant them a right of regulating a fishery for 20 years. As the fishery straddles the border between England and Wales, the application was progressed jointly by the Secretary of State and Welsh Ministers, and a single order was made for the designated area.

The 2008 order was created to enable the Environment Agency to carry into effect and enforce regulations and restrictions relating to the dredging of, fishing for and taking of cockles within a designated area of the Dee estuary. The order allowed the Environment Agency to manage and conserve the wild fishery by the use of licences to control the number of people who fish there and make regulations and levy tolls for the benefit of the fishery. Unlicensed persons are excluded from the regulated area except for individuals taking no more than 5 kg of cockles daily by hand for personal consumption. That is similar to how inshore fisheries and conservation authorities would manage cockle fisheries in their waters. For example, the North Western Inshore Fisheries and Conservation Authority would manage its cockle beds via a byelaw, with permit holders fishing only during an open season based on the IFCA’s stock assessments.

Natural Resources Wales took on the functions of the Environment Agency Wales in 2013, including the regulatory responsibility for the 2008 order. NRW currently acts on behalf of the Environment Agency to deliver their statutory functions for the English side of the 2008 order. While NRW and the Environment Agency are joint grantees of the 2008 order, NRW manages all operational and management aspects of the order. That arrangement is enshrined in a service level agreement between NRW and the Environment Agency.

Before the 2008 order, the cockle fishery operated on a boom-and-bust cycle, with the beds often shut for a few years owing to very low cockle stocks. Once stocks had built up, the beds would open, but that would often result in hundreds of cocklers operating on the beds, resulting in stocks sometimes being cleared out quickly—within days or weeks—and consequently the beds being closed for several more years in some cases. From 1996, the beds were closed except for brief periods in 1997, the years 2001 through to 2003, and 2005. Since the introduction of the 2008 order, the beds have opened every year and have provided up to six months’ lucrative employment for 53 licenced cocklers. Additionally, during a bumper year, the fishery could be opened to a number of short-term non-renewable licence holders issued on a points system, using the NRW stock assessment to estimate the total allowable catch.

NRW estimates that licensees can earn somewhere in the region of £20,000 to £40,000 during a six-month season, depending on variables such as the cost per kilo of cockles. In 2013, 545 tonnes of cockles were landed and the fishery was worth an estimated £650,000, and 2014 was a bumper year with approximately 1,500 tonnes landed, giving an estimated value of £1.5 million. The cockling season was shorter in 2015 with just 250 tonnes of cockles landed, giving a value of £500,000. The amount of cockles landed and their value therefore varies from year to year.

The cockle season usually opens in July for six months and is subject to harvest limits derived from stock assessments that take place between April and July. Carrying out those stock assessments is one of the key costs covered by the licence. In 2015, early concerns over stock levels meant that the fishery was not opened until 21 September, but NRW reduced its annual licence fee in recognition. This year, the Dee estuary cockle beds opened on 1 July.

Fifteen licence holders are located in England and the remaining 38 in Wales. Many of the English licence holders have expressed concerns about the management of the fishery, which resulted in a letter of complaint to the Public Services Ombudsman for Wales about NRW earlier this year. It does, however, make sense for a single body to be responsible for the management of the Dee cockle fishery. It is not practical for the estuary to be divided in half between English and Welsh authorities, as the England-Wales boundary runs through the middle of some of the beds and cockle stocks move around the estuary. That means that in some years the English beds are heavily stocked and Welsh beds have no stocks, and vice-versa. Performing surveys, liaising with cocklers and carrying out enforcement would all be more complicated and less efficient if two management bodies were involved.

Following the complaint about the NRW to the ombudsman regarding the management of the fishery, its resulting decision, given in May, was that the complaint should not be investigated. I do believe, however, that there must be a good level of quality consultation and dialogue between the NRW and those affected by its management decisions. I understand that there is a Dee Estuary Sea Fisheries Liaison Group, which meets regularly and includes both cocklers and the NRW. I am aware that the most recent meetings of this group were held on 12 May and 17 June, and that an annual general meeting of licence holders was held on 23 June, with five attendees from interested parties. I am unaware of any contentious issues being raised at this AGM.

The hon. Member for Wirral West raised the issue of EA attendance. During the past year or so, the EA has increased its frequency of attendance at these meetings. Following today’s debate, and the points she and the hon. Member for Ellesmere Port and Neston both made, my officials will reconfirm to the agency my belief that it should attend all these meetings in future, in order to represent the views of their constituents. I also understand that they met the EA in January 2016, together with local licence holders. The licence holders were given contact details of EA staff who could assist should they have concerns, and the EA has said, when I made inquiries, that it has not received any concerns to date but it stands ready to assist should concerns be raised directly with it.

The hon. Lady raised the issue of licences and the transparency of licence fees, and I should point out that that was looked at by the ombudsman. To clarify the position, the 53 licensees pay an annual fee to the NRW, which is currently set a £1,500. In the previous three years, it had been set at £1,300, but it was reduced in 2015-16, in part owing to the season being shorter than usual. I am told that in 2015-16 the fishery cost the NRW more than £100,000 to regulate, with the cost primarily being made up of salary costs for liaison, surveys and enforcement. There are also some capital costs associated with equipment, hire of boats and so on. In 2015-16, the licence fee brought in £63,000, because of the reduction, and the EA therefore contributed the shortfall of £18,000—an additional £20,000 was made up in grants from NRW. So there is a shortfall, but there is transparency on the costs of the fishery.

The hon. Lady also asked how the licence fee is calculated, and I have been given a wonderful formula:

A is the annual number of working days on survey, enforcement or administration, B is the staff cost per working day and N is the number of licences. So a transparent formula is used, and I have been given the figures that she requested. Secondly, she made a point about prosecutions for illegal cockling. Although that is a responsibility of the NRW and the Welsh Government, I can confirm that at the end of last year I had a conversation with Carl Sargeant, the then fisheries Minister in the Welsh Government. He discussed his concerns about enforcement on this fishery and checked whether I was happy for certain actions to be taken. So we do discuss these issues.

Finally, the hon. Gentleman raised the issue of the changes that were made to the bird food model. I am told that two different approaches have been taken. Previously, the West model was used, under which some 4,500 tonnes of cockles had been set aside, particularly for oystercatchers, whereas under the new Stillman model, which was introduced, that figure went up to 6,900 tonnes. But there are also some advantages to that model, as the West model would not allow any exploitation of the fishery unless there were at least 100 cockles per square metre.

In conclusion, hon. Members have made some important points, and I hope I have been able to reassure them that we take this issue seriously. I have asked the EA to attend all future meetings, and I hope that this clarifies some of the points that they have requested.

Question put and agreed to.

Oral Answers to Questions

George Eustice Excerpts

Thursday 7th July 2016 Commons Chamber

[Luke Hall (Thornbury and Yate) (Con)]

1. What assistance the Government have given farming businesses to increase their resilience.

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

We have put in place a range of measures to support our farmers and help build their resilience. Government investment in flood defence improvements will provide better protection for 1 million acres of agricultural land. We are investing in innovation, skills and capital items to boost the sector’s resilience, and we are working to introduce a dairy futures market to help farmers manage price volatility.

[Luke Hall]

Volatility in global markets and weather conditions often dramatically affects farmers’ incomes year on year, sometimes by up to 30%. What steps are the Government taking to help farmers manage that risk?

[George Eustice]

My hon. Friend makes an important point and we have acted to deal with that problem. From April this year the Government extended tax averaging for farmers to five years, up from the previous two years, so that they can better offset good years against bad years. In addition, Her Majesty’s Revenue and Customs has a number of schemes, such as the time to pay scheme, which means that it shows forbearance to farmers who are suffering cash-flow difficulties.

[Rachael Maskell (York Central) (Lab/Co-op)]

Eleven years ago this morning, terrorist attacks were unleashed on our city. We pay our respects today.

As an environmentalist, someone who campaigned in the aftermath of the floods, and a lover of the great outdoors, I am proud to represent Labour as shadow Secretary of State for Environment, Food and Rural Affairs. Many farming businesses depend on trade with the EU. Following the outcome of the referendum, the resilience of farming will be keenly tested. What immediate steps has the Secretary of State taken to ensure that trade relations with EU partners will remain unchanged for the foreseeable future?

[George Eustice]

I welcome the hon. Lady and her colleagues to the Front Bench of this diverse Department, and I associate myself with her comments about the terrorist attacks.

Following the decision to leave the European Union, we are holding a number of meetings with officials to plan for our next steps on trade—indeed, we will have a meeting today to hold such discussions. It will be a matter for a new Prime Minister and the Cabinet that they put in place, but early thinking and planning work is going on across the Government.

[Rachael Maskell]

I am concerned that resilience was not planned for by the Minister in advance of the EU referendum. Trade and regulations for our food and farming industry are linked to the EU more than in any other sector, yet the Government’s cuts to DEFRA up to 2020 will total a 57%—yes, 57%—reduction in its budget. In the light of that, will the Minister explain how his Department will have capacity to analyse the impact of the EU referendum, build resilience, and negotiate the way forward?

[George Eustice]

For the time being we remain in the European Union, and all existing arrangements continue. Only once we have concluded negotiations and left the European Union will we put future measures in place. On capacity in the civil service, some areas and some EU dossiers have a long-term horizon with which we will perhaps be less engaged and involved, and that will free up capacity for some of the planning work that we need for our own domestic policy.

[Mrs Caroline Spelman (Meriden) (Con)]

I record my thanks to my hon. Friend the Member for Colchester (Will Quince) for providing us with a taste of Colchester yesterday. One of his constituency’s soft fruit farmers emphasised his concern about his resilience, and his dependence on EU migrant labour. Are plans in place to ensure that farmers are supported should migrant labour be reduced?

[George Eustice]

As my right hon. Friend will know, I have worked in the soft fruit industry, and I am familiar with the challenges that certain agricultural sectors face with seasonal labour. Ultimately, the decision that she refers to will be for a new Prime Minister, the Cabinet they choose, and the negotiations that they seek. In recent years we have had models such as seasonal agricultural worker schemes, and there are ways to ensure that the required labour is available.

[Kerry McCarthy (Bristol East) (Lab)]

I tabled five written questions in the past week asking what assessment had been made of the impact of Brexit on a range of DEFRA-related areas, from air pollution to waste, water, rural payments, fisheries, food standards and food safety. I got one answer back that basically said that everything remains in place and the negotiations are up to the future Prime Minister, which to me shows a shocking degree of complacency. DEFRA, almost more than any other Department, will be affected by Brexit, and I am not reassured by what I have heard this morning that that work has started.

[George Eustice]

I disagree with the hon. Lady. The Government put forward an assessment of the potential impacts of leaving the European Union, which was hotly debated during the referendum. Ultimately, the British public made an assessment of what they wanted to do, and the assessment is that they want to leave the EU. The job of the Government now is to implement that decision.

[Kevin Foster (Torbay) (Con)]

2. What steps the Government are taking to prevent hunting trophies from threatened or endangered species being imported to the UK.

--- Later in debate ---

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

6. What assessment she has made of the potential effect of the UK leaving the EU on rural development programmes.

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

Until negotiations conclude and the UK leaves the EU, all existing arrangements remain in place, including rural development programmes across the UK. It will be for a new Prime Minister and his or her Cabinet to consider the future shape of rural development once the UK leaves the EU.

[Martyn Day]

The Minister may recall that Scotland voted to remain in the EU in the referendum. Will he commit that nobody in Scotland who benefited from the Scottish rural development programme will lose out on funding?

[George Eustice]

As I have said, while we remain in the EU, all existing arrangements remain in place, including our current rural development programmes. Nothing changes until negotiations have been concluded and a new partnership with the EU is put in place.

[Patricia Gibson]

Agriculture plays a major part in Scotland’s £14 billion food and drink industry. Following the uncertainty created by the EU referendum result, what reassurances can the Minister give today to ease the concerns that the result has caused among Scotland’s farming communities?

[George Eustice]

I can give farmers throughout the UK the reassurance that, for the time being, we remain in the EU, and all existing arrangements remain in place, including all existing support payments, until we leave the EU, and until a new type of partnership and a new domestic agriculture policy are put in place.

[Mr Philip Hollobone (Kettering) (Con)]

I congratulate my hon. Friend on the energy, enthusiasm and intelligence he brought to the leave campaign. Having met farmers in my constituency in Kettering before the vote, it was clear to me that the senior leadership of the National Farmers Union had signed up to “Project Fear” and was trying to scare farmers and rural dwellers into voting for remain. Now that the result has been decided—in Kettering, we voted overwhelmingly to leave—can we make sure that everyone involved in rural communities and farming talks up rural communities and farming, because we have a very bright future ahead of us?

[George Eustice]

I thank my hon. Friend for his kind comments. It is important, now the debate has concluded and the country has made its decision, that we move on and focus on next steps and the future. This week, I visited the Livestock Event and had meetings with many farmers. What I find interesting is that once we get past the initial shock—for some—of the decision, people engage with the detail of what might be possible in the future and become more excited about the potential for our future.

[Mr David Nuttall (Bury North) (Con)]

Does the Minister agree that leaving the European Union will provide us with a tremendous opportunity to develop a tailor-made package of measures designed to support and help UK farmers? In fact, there is nothing to stop us starting to work on putting that package together right now.

[George Eustice]

My hon. Friend makes a very important point. I can reassure him that while no decisions will be made until there is a new Prime Minister who has chosen a new Cabinet, the Department is working on options that might be presented to the new Prime Minister.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

One claim from some leave campaigners was that Brexit would lower food prices. Now that Brexit is the decision the country has made, will the Minister tell us what options are available to deliver them?

[George Eustice]

Food prices are driven by a range of factors, most importantly energy prices, developments in weather around the world and exchange rates. Those are the key drivers of our food prices. I have always made clear that while food prices go up and down—they are down 7% over the past two years—they are driven by bigger events than EU membership.

[Rebecca Pow (Taunton Deane) (Con)]

Many farmers and landowners are about to sign higher-level stewardship contracts, but there is a dilemma for Natural England. Many are 10-year contracts and in these uncertain EU times they are being put on hold. Will the Minister give assurances that these precious pieces of environmental biodiversity will not be at risk and that something will happen to protect them?

[George Eustice]

My hon. Friend puts her finger on an important point, which is that there will be areas and elements where we need continuity. We are having discussions across Government about how to ensure we secure that continuity without prejudicing what a future Prime Minister might want to do.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

Meirionnydd is the Sir Nawdd-Feature County at the Royal Welsh agricultural show this month and I hope Ministers will be able to attend. Will the Minister reassure the farmers of Meirionnydd and Wales by explaining what discussions he has had with colleagues in the Welsh Government regarding the funding of rural development and agricultural schemes in Wales?

[George Eustice]

I have regular discussions with my opposite numbers in the devolved Administrations. I hope I will be able to meet the new Welsh Administration when I next go to Council in Europe, which is in about two weeks’ time, and discuss these issues in more detail. I also hope to attend the Royal Welsh show this year.

[Calum Kerr (Berwickshire, Roxburgh and Selkirk) (SNP)]

I welcome the shadow Minister and her team to their place. Will the Minister confirm that his plans to ensure the fair allocation of the convergence uplift are on track? Will he tell us when Scottish farmers should expect to receive increased payments?

[George Eustice]

We have always had a commitment to review the allocation of common agricultural policy budgets—the so-called convergence uplift, as the hon. Gentleman refers to it—during 2016. I had a meeting and early discussions with NFU Scotland in January. Now that the Scottish elections are over and we have passed the referendum purdah, I would expect to be able to progress those discussions with the Scottish Government in the autumn.

[Craig Whittaker (Calder Valley) (Con)]

4. What progress her Department and its agencies have made on making data publicly available in the last 12 months.

--- Later in debate ---

[Ann Clwyd (Cynon Valley) (Lab)]

8. What assessment she has made of the effectiveness of recent badger culls.

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

During 2015, badger control operations in Somerset, Gloucestershire and Dorset were all successful in meeting their targets. According to the Chief Veterinary Officer’s advice, the results show that industry-led badger control can deliver the level of effectiveness that will enable us to be confident of achieving disease control benefits.

[Ann Clwyd]

Badger culling in England costs about £7,000 per badger killed. In Wales, the badger vaccination programme costs about £700 per badger vaccinated. Lord Krebs, who is a renowned expert on the subject, has continually said that

“rolling out culling as a national policy to control TB in cattle is not really credible.”

Does the Minister accept that?

[George Eustice]

TB is costing the country £100 million a year, and that is why we have to act. The veterinary advice is clear—we cannot have a coherent strategy to eradicate TB without also tackling the disease in the wildlife population. Following advice from the World Health Organisation, the vaccination operations in Wales, as in England, have been suspended because there is a lack of vaccine.

[Angela Smith (Penistone and Stocksbridge) (Lab)]

9. If the Government will underwrite basic payment scheme payments at current levels until the end of 2020.

--- Later in debate ---

[Jessica Morden (Newport East) (Lab)]

11. What assessment she has made of recent trends in food prices.

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

DEFRA monitors retail food prices through the consumer prices index. Year on year, food prices have continued to fall, with a 2.8% fall in the year to May 2016. We also monitor trends in household expenditure on food through the family food survey. Following a period of higher food price inflation, retail food prices have fallen by 7% since their peak in February 2014.

[Jessica Morden]

Last week I visited a very successful food supplier in my constituency that told me that it was already putting up its prices because of changes in the exchange rate hitting imports, and predicted food inflation of up to 8% within months, following the leave vote. Clearly there are real impacts now. How will the Minister respond to a spike in UK food prices, which is a crucial issue for consumers?

[George Eustice]

As I explained earlier, one of the factors that has an influence on food prices is exchange rates. A number of analysts have been saying that in fact the pound has been unsustainably high against the euro for some time, caused by concerns about the weaknesses of the eurozone, and that the correction we have seen was overdue anyway. Exchange rates go up and down, but the crucial thing is that we have a competitive food supply industry in this country.

[Huw Merriman (Bexhill and Battle) (Con)]

12. What recent steps the Government have taken to work with industry to increase the number of apprenticeships in the food, farming and agri-technology sector.

--- Later in debate ---

[Luke Hall (Thornbury and Yate) (Con)]

T3. Our farms have some of the highest livestock welfare standards in the world, so how will that be recognised in upcoming trade negotiations? We will be doing our farmers a disservice if cheap imported food produced with very little regard for livestock welfare comes into the UK.

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

My hon. Friend makes an important point. He will be aware that we have a manifesto commitment to recognise animal welfare standards in our trade negotiations. That is particularly important in sectors such as poultry meat during Transatlantic Trade and Investment Partnership discussions, and I can assure him that we make these representations to the European Commission.

Dog Fighting

George Eustice Excerpts

Wednesday 29th June 2016 Westminster Hall

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

It is a pleasure to serve under your chairmanship, Sir Roger. I congratulate the hon. Member for East Kilbride, Strathaven and Lesmahagow (Dr Cameron) on securing this debate on what is obviously an important issue that the House cares deeply about, which is why we have had so many Members here. Dog fighting is an absolutely repugnant activity. As the hon. Lady made clear in her opening remarks, it has been banned in this country since 1835. It is certainly depressing to think that it persists to this day. The cruelty is not limited to the dogs directly involved in the fighting; the animals are sometimes used as bait, as various hon. Members have pointed out. One hears distressing anecdotes sometimes about older dogs that end up being used as bait after being advertised for rehoming by elderly owners. That is utterly appalling.

I pay tribute to the League Against Cruel Sports for its work in highlighting the issue and for its work in helping with enforcement to bring prosecutions against the evil people who engage in dog fighting.

Around five years ago, when I served on the Environment, Food and Rural Affairs Committee, I read a detailed academic study into the phenomenon of dog fighting, and other more recent reports suggest that the practice of dog fighting takes place at different levels, as various hon. Members have pointed out. They can range from one-off, one-on-one dog fights in urban parks and housing estates—sometimes called “street rolling” or “chain rolling”—to more organised events behind closed doors, often involving illegal gambling. As other hon. Members have pointed out, that is often linked to other crime. There is also the continued desire for certain individuals to acquire so-called status dogs, which has a link to this problem. They have no concern for the dog’s welfare or the safety of other people, including their own family members.

I want to touch briefly, however, on some good-news stories on dogs. In general, the trend for stray dogs is decreasing, and the latest figures published in September last year showed 102,500 stray dogs in 2015, down from 110,000 the year before and 126,000 five years ago, so we have made some progress. The successful roll-out of compulsory dog microchipping in April will help to reduce that further. We have now got 91% of dogs microchipped as of the end of April. Also, the number of stray dogs being euthanised is down to 5%, which is the lowest figure ever, down from a high of 16% around 20 years ago.

In addition, we have achieved a lot of success in our work with the Pet Advertising Advisory Group. Six of the main pet advertising websites have signed up to the PAAG minimum standards for adverts, which has led to a huge number being removed and no longer appearing, including adverts involving prohibited breeds. Gumtree reported to me that the number of pets being advertised on its website following its signing up to the code has gone down by more than 70%. PAAG members put filters on their websites to identify potentially problematic adverts, which are then tracked and removed. Information is also supplied to authorities such as the police and local authorities to assist them with enforcement action. Key words can range from obvious terms such as “pit bull” to less obvious references to “gameness”, “red-nosed dogs” and “Staffie cross”, which is often code for “pit bull”. Those are all now terms that flag alarms with the websites, and that is an important step forward.

In addition to this work, the Animal Welfare Act 2006 was strengthened to make it far easier to bring prosecutions for dog fighting. There is now a long list of things that make it an offence to cause an animal fight, receive money for admission to an animal fight, publicise an animal fight, provide information about an animal fight, make or accept a bet on an animal fight, take part in an animal fight, possess anything designed or adapted to be used in an animal fight, keep or train an animal for use in an animal fight, keep any premises used in an animal fight and be present at an animal fight. So a wide range of criteria make it easier to bring prosecutions. The maximum penalty for any of those offences is six months’ imprisonment or an unlimited fine, or both.

Before the Animal Welfare Act came into force in 2007, the maximum penalty for causing or assisting in an animal fight was reserved for the people arranging the fights and the fine for other related offences was capped at £2,500. A year ago, we removed the upper cap and there can now be an unlimited fine for animal cruelty. We changed that just a year ago.

I am told there are around 20 prosecutions a year and several custodial sentences, but I understand the calls for the maximum penalty for dog fighting to be increased. Several hon. Members, including my right hon. Friend the Member for Meriden (Mrs Spelman), made that point. I can say that in the closing stages of the previous Parliament we looked at this issue and considered the case for increasing the maximum sentence for animal fights, but we did not have a legislative vehicle to do so at that point. The view now—this is a Ministry of Justice lead—is that we should look at all animal cruelty because there may be a case for changing the sentences for other types of animal cruelty as well. The Government keep the issue under review, and my colleagues in the MOJ—

[John Pugh (Southport) (LD)]

Will the Minister give way?

[George Eustice]

I will not give way; we are tight on time.

A second issue is equally important. As the hon. Member for Mansfield (Sir Alan Meale) pointed out, we need not only to have the maximum sentences set at the right level, but to give the right guidance to magistrates when sentencing, because we still only have a handful of custodial sentences. Such decisions are set by the independent Sentencing Council, and the guidelines on animal welfare offences, including those on dog fighting, are available on its website. I can tell hon. Members today that a review is ongoing. A consultation on sentencing guidelines for animal cruelty offences is now open and will close on 11 August.

I want to say a brief word on enforcement, which is carried out by the police, working with the RSPCA. The RSPCA has been tackling animal cruelty, particularly dog fighting, for years. It has a great track record. The threshold on puppies, raised by my hon. Friend the Member for Taunton Deane (Rebecca Pow), is an issue we are looking at in an animal establishment consultation that has closed. We will respond to that shortly. On the register of people convicted of animal offences and banned from owning animals, the police are looking into that to see whether it will be possible, without publishing information, to give certain agencies greater access to it.

In conclusion, we have had a good debate and many important points have been raised. I am sure my colleagues in the MOJ and in the Sentencing Council will take on board some of the points raised today.

[Sir Roger Gale (in the Chair)]

Dr Cameron, you have 60 seconds to wind up.

Tenant Farming

George Eustice Excerpts

Tuesday 10th May 2016 Westminster Hall

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

It is a pleasure to serve under your chairmanship, Mr Hollobone. I congratulate my hon. Friend the Member for Wealden (Nusrat Ghani) on securing this important debate. It is an issue that I have followed closely as Farming Minister over the past two and a half years. She is absolutely right: tenant farmers have a vital role to play in our countryside. Roughly one third of farms and one third of the land we have is tenanted. Farm tenancies are a vital route for new entrants coming into the industry. They help existing businesses expand and take on new land, and they are essential because the prohibitively high capital cost of land is a real bar and obstacle to new people entering the industry.

Every industry needs new talent, fresh thinking and new ways of doing things. Farming is no exception. In our 25-year food and farming plan, we will consider how to encourage alternative models of doing business in farming so that we do not think just about landowners, owner-occupiers and tenant farmers, but look at ways of expanding some of the contract farming models that have been very successful. Perhaps farmers could progress to share farming models where they have a stake in a business and earn in the business before taking on their own tenancy and perhaps even buying land at the end.

I come back to the crucial farm business tenancies. It is important to remember why they were introduced. The deregulatory measure was taken in 1995 because there was real concern that, as my hon. Friend the hon. Member for Eddisbury (Antoinette Sandbach) said, not enough land was coming to the market and that was restrictive and acting as a barrier. The burdens and obligations in the Agricultural Holdings Act 1986 prevented land from coming to the market but, generally speaking, the Agricultural Tenancy Act 1995 was judged a success. Between 1996 and 2003, 35,000 acres a year came on to the market. That has stabilised since and things have not changed as much, but it was undoubtedly successful in deregulating and bringing more land to the market, creating more opportunities.

However, I am aware that the Tenants Farmers Association and others have expressed concerns about the average length of some tenancies. Currently, they are around three and a half years. A couple of years ago they were around three years and have gone up slightly. As my hon. Friend the Member for Wealden pointed out, the challenge of having such short-term tenancies is clear. If someone has tenure of the land for only three years, they do not have the incentive to invest in that land.

I worked in the farming industry for 10 years and grew up on a farm. I know that if someone takes on a piece of land that has not been farmed adequately or properly for a period of years, it can take four or five years to turn it around and get the land back to its full potential by investing and putting on farmyard manure, and adding fertilisers, sand or lime to bring the soil to its full productive potential. That takes time and if someone is there for only three and a half years it can fuel short-termism, which is not good for the quality of our soils. We should be concerned about soil in agriculture because it is at the heart of everything we do and we must protect it.

We are interested in finding ways to incentivise longer term tenancies without losing the benefits of flexibility in farm business tenancies. I have had numerous discussions with agricultural lawyers and land agents, and with representatives from the Tenant Farmers Association and the Country Land and Business Association. The last two do not always see eye to eye on this issue, frankly. I recently met representatives from a selection of county farms around the country. I share the concern expressed by the shadow Minister about the potential loss of some county farms. About a month ago, we had an interesting session with representatives to discuss how to refresh that model in a way that recognises some of the pressures on local authorities.

The Government have no fixed view on the need for change to legislation or otherwise. Many of the issues raised by my hon. Friend the Member for Wealden are for the Treasury and she might want to have conversations with Treasury Ministers. The area is complex and I am mindful of the points raised by my hon. Friend the Member for Eddisbury that we must be careful when making changes that we do not create unintended consequences. Having caveated what I am going to say with those crucial points, I want to explain the context and texture of my discussions with some of the leading experts in the field and some of the ideas that we could consider.

The first thing to recognise is that although the average length of a farm business tenancy is three and a half years, there is a big division between bare land, which people rent for a short-term crop—perhaps potatoes —for a couple of years and a farm that has a farmstead, a yard and a house where people live. The average length of a tenancy of a farm with a farmstead is more than eight years, which is much closer to the 10 years that the Tenant Farmers Association is calling for.

The other thing to bear in mind is that short-term lets are important for some business models. Even in my part of the world—Cornwall—businesses often specialise in particular areas. Some may specialise in brassica crops—cauliflowers and cabbages—which can be grown on the land for only two to three years before a new rotation must come in. Often, a potato grower will follow for a period and a daffodil grower will follow that. Finally, when the land has been hammered for a few years of intensive cropping, a cattle farmer comes in and puts it into grazing for the best part of a decade. That model can work and can suit some farm enterprises.

I have had discussions with the Tenant Farmers Association about agricultural property relief. I subsequently had discussions with Treasury officials about the TFA’s proposal and I helped to facilitate a meeting between George Dunn, its chief executive, and Treasury officials to discuss his ideas further. The officials told me they will consider these ideas and feed back their thoughts to me. I am still awaiting that feedback. They have obviously been busy with the Budget recently, but I look forward to having their feedback about whether it is a good thing or not because it is a policy area for them. There is a danger that such a measure could restrict the market and that less land could come to the market for the agribusinesses that value flexibility.

A second matter raised was stamp duty land tax. Tenant farmers and landowners agree that they would like changes. Again, this is an issue for the Treasury, but the challenge is that the longer the term of the tenancy, the higher its value and the more likely it is to trip over the threshold for SDLT.

I have received proposals about considering the law on rules of forfeiture of farm business tenancies. At the moment, if there is a breach of a covenant, the only option open to the landlord is to go for full forfeiture, which is quite a high hurdle to clear in a court. That makes landlords nervous about longer-term tenancies and makes them more likely to go for a shorter term tenancy because there is less risk. One suggestion is that we may be able to borrow some of the other remedies and tenancies in the Agricultural Holdings Act 1986 and have options and measures that fall short of full forfeiture—for example, an enforcement notice to get a covenant in a tenancy abided by.

I have received some suggestions about borrowing elements of commercial property tenancies with a right to renew, which would stop short of longer term tenancies but might create some sort of soft presumption that someone who has been a good tenant for a three-year term should have priority to renew that tenancy—a right to renew rather than being held to ransom for a higher rent. Again, that is an interesting idea that I am keen to consider, although I have heard mixed opinions about how significant a change that would be and whether it would have much impact.

Going into more detail in these areas, I have had representations to repeal section 31 of the Agricultural Tenancies Act 1995. Under the Law of Property Act 1925, there has been a statutory right for a landowner to create a tenancy on their land. They did not have to have the permission of any moneylender who had a charge over that land to do so because it was deemed important that land was kept in productive capacity and that the interests of banks and moneylenders should not be placed ahead of food production for the country. Some deft lobbying by the British Bankers Association in 1995 resulted in a change to the flagship Law of Property Act 1925, which undermined landowners’ ability to put a tenancy on their land to the extent that to create a tenancy they now need prior permission from someone with a charge on that asset if that is in the mortgage deed.

The shadow Minister referred to county farms. There has been concern about those, particularly in Herefordshire, which prompted me to set up some discussions. The Agriculture Act 1970 gives DEFRA a role to work with local authorities to help them to refine their plans and I am considering that. We cannot block them from selling those assets—they have a statutory right to do that—but we have a role to play in working with them on any plans for reorganisation of their county farms. That is why I am keen to have discussions with them about how we can try to refresh the model and make it a real option for new entrants to the industry.

I want to give my hon. Friend the Member for Wealden a chance to come back on some of these issues, but on contract farming, there are some interesting models out there that enable new entrants, who perhaps do not have a huge amount of capital behind them, to get access and set up a new business. I will give just one example of the kind of thing that we are looking at in our food and farming plan. Tulip, which is a very large pig producer that accounts for about 20% of all pig production in this country, runs a system called franchise farming, whereby it owns the units and gives access to its animal genetics. It takes care of all the marketing and gives people access to its science and veterinary expertise. But on each unit it has a franchise farmer, who basically runs the unit for a fee, for a contract per pig completed, with all sorts of performance-related pay. That is a great way to give young people who want to farm, but have no capital behind them, the first stepping stone into the industry. It is also a model that can lead to better knowledge transfer and access to technology.

My final point, therefore, is that as we think about the future of farming in this country, we perhaps need to move beyond the traditional notion of tenancies and land ownership and look at some of those other, more creative models, which may actually have far more promise for new people trying to get into the industry.