(4 years, 6 months ago)
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It is a real pleasure to respond to my hon. Friend the Member for St Ives (Derek Thomas), who represents a neighbouring constituency. I am very familiar with many of the farmers in his constituency, and I am aware of the abattoir he mentioned.
Bovine TB is the most pressing animal health problem in the UK. Although the recent statistics show an encouraging decline in TB incidence and prevalence rates in cattle herds in high-risk areas, there is no room for complacency. The west of England still has the highest levels of bovine TB in Europe. Over the last 12 months, over 32,000 cattle have been slaughtered for TB control reasons in England—that is an appalling waste. The disease is damaging our rural businesses and causing much distress to farmers and rural communities, and it impacts businesses operating in all parts of the food production chain, including, as my hon. Friend has highlighted, abattoirs.
The individual case of the abattoir that my hon. Friend mentioned is unusual in that the animal had not been condemned by DEFRA vets as a result of a test; it had been sent for slaughter and to be sold, but was deemed by the official veterinarian working for the Food Standards Agency to be unfit for human consumption and was condemned. The farmer then took the abattoir to the county court, which found in his favour. It is important to note that the judgments made by county courts in such situations do not set any legal precedent in the way that those made by the High Court do.
I will clarify the approach that we take to this issue. Under the provisions included in the Animal Health Act 1981, the Government pay compensation only when the compulsory slaughter of disease-affected animals is required. All cattle herds are regularly tested for TB, and most infected cattle are disclosed through that on-farm testing programme
As the Minister just mentioned, this is not just about compensation but about testing. Any cow—or any bovid, such as the bison in Nether Broughton in my constituency—that is diagnosed with bovine TB comes at a huge economic cost to the farmer, so we must get the test right. Does he agree that it is a good thing that farmers in my constituency are partnering with the University of Nottingham to develop a more accurate phage test, and that DEFRA should look into that further, because it directly affects the compensation scheme and, in particular, the viability of the farmers in my constituency?
My hon. Friend makes a very important point; none of the tests that we have are perfect. TB is a difficult, insidious and slow-moving disease that is sometimes difficult to detect. We are doing a big piece of work to try to improve diagnostics, including by looking at options such as the phage test, and in recent years our use of the interferon gamma test—the more sensitive blood test—has been more widespread.
A relatively small additional number of animals fall into the category highlighted by my hon. Friend the Member for St Ives. Around 550 animals per year are picked up through routine post-mortem inspections during commercial slaughter, either because they became infected between tests or because they were missed by less than perfect tests.
Since 2006 compensation for TB-affected animals is determined through table valuations, whereby the compensation paid for the animal mirrors the average price paid on the open market for similar types of cattle. There are around 51 different table value categories, which are based predominantly on the subdivision of non-pedigree beef cattle from pedigree beef cattle, and non-pedigree dairy from pedigree dairy. There is a whole range of subcategories based on the age of the animal.
My hon. Friend the Member for Congleton (Fiona Bruce) made the important point that farmers will sometimes say that the table valuation does not represent the value of the animal. That can be difficult, and we are constantly looking to refine the tables, because the value of a small pedigree Dexter cow might be very different from that of a pedigree Hereford or a pedigree South Devon, which are larger animals. We recognise those issues and are constantly trying to refine the tables. It is also important to recognise that we went to a table valuation system, because prior to 2006 there were individual valuations for each animals. Unfortunately, however, we found that land agents would often tend to value up animals, and the taxpayer was not getting good value for money as a result of individual valuations. That is why we introduced a table valuation system. It is different in Wales, which remains on an individual valuation system.
We have had a large number of bovine TB outbreaks in Northern Ireland, especially in my constituency of Strangford. We want to make sure that the compensation scheme to which the Minister refers is uniform across the whole United Kingdom of Great Britain and Northern Ireland. I want to be sure that, for any potential legislative changes to the compensation scheme that result from this debate, discussions will take place with the Northern Ireland Assembly and, in particular, with the Department of Agriculture, Environment and Rural Affairs, to ensure a uniform response across the whole United Kingdom of Great Britain and Northern Ireland.
Disease control and dealing with epidemiological outbreaks, including TB, are devolved matters, so each part of the UK has a different approach. In Scotland there is not currently a TB problem as it does not affect the badger population. Wales has a severe problem but is not using culling at this stage. In England we are starting to make significant progress through culling. Northern Ireland is trialling different approaches, such as “test, vaccinate or remove”, although that is rather expensive. It is a fully devolved matter that is decided by the relevant Administration—we are delighted that there is a new Administration in Northern Ireland.
To support and inform the table valuations, we collect data for around 1,250,000 animals every year from the sales of store cattle, calf sales, breeding and dispersal sales. That ensures that the table values are based on real sales data and are as accurate as possible. I take on board the point made by my hon. Friend the Member for Congleton and others about the table valuations, but I hope that she understands why we switched to that system over individual valuations.
To return to the specifics of this case, decisions on whether meat is fit for human consumption are made by the official veterinarians who work for the Food Standards Agency in the slaughterhouse. Their decisions are based on findings from the post-mortem inspections that they carry out, as enshrined in the food hygiene regulations. Those involve a set of criteria and an approach very different from what a DEFRA or Animal and Plant Health Agency vet would use on-farm.
When post-mortem inspection reveals lesions indicative of TB in more than one organ, or in more than one anatomical region, the whole carcase is declared unfit for human consumption. As my hon. Friend pointed out, that occurs in a relatively small number of cases, but I appreciate the significance to the farmer affected. About 6% of such cases are picked up in that way. However, when a TB lesion has been found in only one organ or just one part of the carcase, only the affected organ or part of the carcase is rejected. In the vast majority of cases, therefore, when an animal goes to the slaughterhouse and is not condemned entirely, there is generally a significant salvage value.
DEFRA only pays statutory compensation when it has deprived someone of their property to help eradicate a disease. The reason involves DEFRA requiring that an animal be killed as a disease-fighting requirement. DEFRA uses legal powers under the Animal Health Act 2002 to dictate that an animal must be seized, and it has enforcement powers to seize and remove an animal if, as sometimes happens, a farmer resists. In such instances, it is deemed appropriate that the farmer should be compensated.
When a farmer has an animal that has been picked up not by a test—therefore not compulsorily slaughtered by DEFRA—but only on arrival at the slaughterhouse, that situation is much more in the realm of commercial risk. An animal can be condemned for many different reasons for which a farmer would not be compensated, and it is regarded as an issue of commercial risk.
The situation can be addressed in two ways. First, in the specific case of the abattoir concerned, perhaps abattoirs need to be clear in their contracts with farmers and stipulate who is liable in the event that a carcase is condemned. If an abattoir wanted to make it clear that it would not pay for a condemned carcase, stating that in a contract could mean that the county court might find in a different way.
Secondly, we have done some work with NFU Mutual. The National Farmers Union and NFU Mutual are working on an insurance policy product to deal with such situations—either an abattoir can take out insurance to cover the cost of an animal where that happens, or the farmer could arrange to take out some insurance to cover such issues.
To go back to the intervention of my hon. Friend the Member for Congleton (Fiona Bruce), many farmers who have highly prized show-winning cattle—not just pedigree beef or dairy cattle, but ones that have a huge value—privately insure them, to top up the difference between the table value and the actual value. The commercial insurance market will help farmers to cover those costs and to protect them against loss of their prize-winning bloodstock.
I accept the point made by my hon. Friend the Member for St Ives about the need to share more effectively the details of how the TB compensation system works. We are looking to address that by publishing a briefing note on TB compensation, which will go on to the TB information hub operated by the Agriculture and Horticulture Development Board. More generally, there is always room to improve communications, so we will continue to work with the farming unions and others to meet the needs of those who deal with such difficult situations. We invested £25,000 in that TB hub website to improve information available to farmers and give them other practical advice on aspects of their TB programme.
I hope that I have been able to address some of the issues raised by my hon. Friend. He will be disappointed that I have not announced at the Dispatch Box that cases such as his will in future be compensated, but I hope he understands that to do so would be a leap from what we have always done as a nation, in particular since the Animal Health Act 1981, in which the clear concept was of a duty on Government to compensate when we required animals to be destroyed for disease-fighting reasons. Unfortunate cases in which we have not required compulsory slaughter are very much in the realm of commercial risk. It is for abattoirs and farmers through their contracts, or for both through insurance products, to cover their risk.
Finally, I make an offer to my hon. Friend the Member for St Ives, given that he is a close neighbour all the way down in west Cornwall. I am more than willing to meet the particular abattoir owner concerned and to discuss the matter with him. My hon. Friend mentioned the Godfrey review, and we will be responding to that imminently. It will include some proposals to do with TB compensation but, alas, not the one that he is seeking for me to confirm today. However, we have had a good debate and covered many different areas. Again, I thank my hon. Friend for bringing the issue to my attention.
Question put and agreed to.
(4 years, 7 months ago)
Commons ChamberClause 1 provides the legal basis for the Government and devolved Administrations to make payments to farmers under the direct payment scheme for 2020. The clause is needed because article 37 of the withdrawal agreement means that the EU legislation governing the 2020 common agricultural policy schemes will no longer apply in the UK on exit day. This was fully intended; it is part of extracting the United Kingdom from the European Union’s next multi-annual budget cycle, which starts in 2021, and it allows us to take back control of agriculture policy and domestic agricultural funding.
The Bill is needed because of a quirk in the way that the EU common agricultural policy is funded. Pillar one payments—the so-called basic payment scheme payments —are funded from the following year’s budget, unlike pillar two payments for things such as countryside stewardship, which are funded from the budget year in which they apply.
Does clause 1(3) include the higher level stewardship regime, or is that part of a separate settlement?
It includes the basic payment scheme. Only direct payments are in the Bill’s scope, and that includes the annual area payments that most farmers would receive.
As we are not contributing to the next multi-annual financial framework, we have decided that we should fund this year ourselves to provide farmers with continuity. The withdrawal agreement therefore disapplied the direct payment scheme to the UK. The European Union (Withdrawal Agreement) Act 2020 applies that agreement, and disapplies the direct payment scheme, so to pay farmers for this year, we have to provide this regulation.
Chelmsford is largely an urban constituency, but when I visited one of my local farms just before Christmas, it was devastating to see that, because of the wet weather, people there had not been able to plant any of their winter wheat. They are doing some fantastic work with new crops such as millet, so that we do not need to import that. Will the Bill help to give farmers across Essex and the east of England the certainty they need at this challenging time?
The Bill will absolutely give them that certainty. The Bill is essential if we are to give farmers their direct payments—those area-based payments—in December. If this direct payment regulation did not come into UK law, we would be unable to do that.
Will the Minister confirm that as we move on to the new policy, there will be an emphasis on growing more food at home for import substitution, so that these general moneys can lead on to moneys that help us to build a bigger domestic food industry?
My right hon. Friend will be aware that we have presented a separate Agriculture Bill, which has had its First Reading. It sets out all the powers we would need to reform agriculture policy. The direct payment regulations before us bring the CAP into UK law and on to the UK statute book, and in the Agriculture Bill, there are powers to modify these regulations, so that we can remove the rough edges and simplify them. There are also powers in the Agriculture Bill to strike a very different course for our agriculture—a course based on payment for public goods, but also on providing farmers with grants to invest in new technology, so that they can improve their profitability or add value to their produce. That Bill also recognises that our food security is vital, and commits the Government to reviewing it every five years. That, however, is obviously a matter that we will debate in the coming weeks and months; I want to return to this direct payments Bill.
My hon. Friend the Member for Chelmsford (Vicky Ford) mentioned the need for certainty in her arable sector. We have a strong arable sector in North Dorset. Does the Minister agree that the certainty that this Bill provides to our farmers is of particular importance to those involved in the dairy and beef sectors, both of which are incredibly strong in North Dorset?
I very much agree with my hon. Friend. The Bill will give certainty and clarity about this year to all farmers who currently make a BPS claim and have done for some years. That will include, of course, dairy farmers and beef farmers. Beef farmers in particular have been through a rather difficult year, in which beef prices have been suppressed, and the knowledge and clarity that there will absolutely be continuity this year, and that payments will be made, will be very welcome to them.
The Minister’s own Department’s figures recognise that 85% of livestock farm income comes through basic payments. Of course, this 12-month stay of execution will be welcomed by many of my farmers, but from next January, he is planning to phase out BPS, and the danger is that there will be no certainty about its replacement before 2028. Does he not worry that we will lose many livestock farmers during that seven-year transition, and does he agree that he should therefore delay the phasing out of BPS?
It is important to recognise that a significant proportion of sheep farmers in particular do not receive the basic payment scheme area payment, because they are on contract farm agreements and the landlord receives that money. Nevertheless, the hon. Gentleman makes an important point. I think the principle of investing in public goods has support across the House, but we need to strike this new course sensitively and ensure that agriculture remains profitable. We want a vibrant and profitable agriculture industry, which is why the Agriculture Bill also makes provision for payments to improve productivity, and sets a quite long transition period of seven years, so that we can gradually phase out the old legacy scheme. He will be reassured to hear that the Bill before us makes no changes at all for the coming year. Farmers in his constituency can rest assured that once this Bill is passed, the direct payment scheme will operate this year in exactly the same way as it has in previous years.
Does the Minister agree that there is a balance to be struck between incentivising productivity and rewarding farmers for their role in looking after our countryside—the hedges, copses and spinneys that make England, and indeed Scotland, Northern Ireland and Wales, so unique in their character, and so different from some intensive agricultural operations in European and beyond? If we are to remain competitive and our land is to remain productive and profitable, we need to find a system that balances those priorities, protecting what we love about our countryside, while recognising the wonderful contribution our farmers make to our agricultural economy.
My hon. Friend makes a very important point. It is all about striking the right balance. The premise behind the direction of agriculture policy is this: rather than trying to put on a sticking-plaster, and masking poor profitability in agriculture, we ought to have a coherent policy that rewards farmers properly for their work to improve the environment, create new habitats and so on, and that makes them able to become more profitable by investing in new equipment, adding value to their product and improving transparency in the supply chain. That is our approach—tackling the causes of poor profitability, not masking them with an arbitrary area-based subsidy.
My hon. Friend is being characteristically generous in giving way. I hope he will agree with me, and probably most people in this House, that as important as this Bill is—so, too, is the Agriculture Bill, to which he referred—it will be for nothing if we do not have some form of equivalence clause on food imports to ensure standards of animal welfare and public health. All of the Minister’s good intentions, both for this Bill and the Agriculture Bill, will come to nothing if we suddenly find ourselves swamped by cheaper imports that make all the countryside issues to which my hon. Friend the Member for Milton Keynes North (Ben Everitt) referred absolutely irrelevant.
My hon. Friend makes an important point. Obviously, that is not a matter for this Bill, but our party’s manifesto makes a clear commitment to our maintaining standards as we approach new trade deals, and to our ensuring that we do not water down our standards or undermine our producers.
The Minister says that there will be complete continuity of the basic farm payment over the coming year. Does that include continuity of the three crop rule and all the regulation that goes with the present system? Farmers will need to know that. They have got used to the system, and so has the Rural Payments Agency, so we need to know whether the system will be exactly the same, or whether there will be some changes.
My hon. Friend makes an important point, and I will come on to that when I describe some of the regulations that will be brought across by the Bill. The system will be exactly the same, including the so-called three crop, or crop diversification, rule, the requirement for environmental focus areas, all the scheme deadlines for getting forms in, and the penalty matrix. I am not a huge fan of many of those things, and have been critical of them in the past, but we have taken a decision that charting a different course is a matter for the Agriculture Bill. This is a short Bill that is about providing farmers with immediate continuity and legal certainty that they will get their payment in exactly the way they used to—for this year only; then we will set out a different approach and a different course.
Can the Minister remind the House how, in the implementation period, we will avoid having to pay twice—both sending money to Brussels and paying direct?
As my right hon. Friend will be aware, under the financial settlement in the withdrawal agreement, we did not make a contribution to the next multi-annual financial framework, so the UK will not contribute to the EU budget from 2021 onwards, and will therefore not contribute to the budget that would fund this current year of BPS. We will fund it domestically, and that is why the direct payments regulation must be brought on to a UK regulatory footing.
There is an argument that for many years the UK has actually contributed much more to the common agricultural policy than we have received from it. Can the Minister assure me that as we will not make those payments, we should save some money for the Exchequer?
My hon. Friend will remember the debate that took place in 2016. The UK has typically received back roughly half of what it put into the EU budget, and our contribution to the common agricultural policy on average has been double what we have received from it, historically.
Further to the intervention from my right hon. Friend the Member for Wokingham (John Redwood), and so that I understand this point, am I right that in this transition year we effectively pay as if we were members, but we are also funding domestically this farming payment under the Bill? Is it netted off, or are we in effect paying more for this year overall? Does that make sense?
It is complicated—as ever—with the common agricultural policy, but I tried to explain this point in my opening remarks. It is a quirk of the way that the EU budget works that the EU borrows the money for the pillar one payment—the BPS and area payments—from next year. Because the payments are made typically from December onwards, the money comes out of the 2021 budget. The pillar two payments come out of the 2020 budget—the year in which the money is spent. Put simply, we have not contributed to the 2020 capped budget because it is borrowed from 2021. I know that is complicated, but in essence we are not paying twice.
Am I right in saying that the Welsh Government take 15% of the direct payment away from farmers and transfer it into pillar two, and that that is the most that any Government across the European Union can take?
Yes, my hon. Friend is right. Under the common agricultural policy, there is provision for something called modulation, under which member states are able to transfer a chunk of money from pillar one to pillar two. Wales transfers 15%, or modulates by 15%, from pillar one to the pillar two budget. England modulates at the rate of 12.5%, and Scotland and Northern Ireland modulate considerably less, but still a little bit. There is a provision for that, and the Bill brings that regulation into UK statute.
Without clause 1, neither the Government nor the devolved Administrations would be able to continue to operate the 2020 direct payment schemes, and that would severely affect the agricultural industry, threatening the financial viability of agricultural producers who have planned on the basis of continuity of payments for this year. The direct payments basic legislation, and the implementing and delegated legislation, will become domestic law on exit day, as opposed to at the end of the implementation.
Climate change is a threat that we must all take action to tackle, and my constituents and farmers care deeply about it. Does my hon. Friend agree that the Agriculture Bill and these changes will provide us with a great opportunity to encourage greener practices in the world of agriculture?
Yes—my hon. Friend makes a very important point. As we chart a new course on agriculture policy, one key objective set out in the Agriculture Bill, which was recently published, was on climate change. It is absolutely the case that we should support farmers to farm more sustainably and reduce their greenhouse gas emissions, and that will be a matter for future policy. This Bill does not envisage radical change compared with what has gone before. Some provisions—the so-called “greening provisions” that are brought across by the Bill—will potentially have a modest impact on our carbon emissions and climate change, but addressing that issue properly will be a matter for future policy.
Clause 1(3) sets out the regulations that are covered. That includes the direct payments regulation, apart from article 13. Article 13 of the direct payments regulation is still there in retained EU law, because the withdrawal agreement Bill brought that element of the regulation across, so we do not need to do that a second time. We need that state aid provision because the withdrawal agreement committed us to an equivalent approach to the EU for this year. There is also the Commission delegated regulation (EU) No. 639/2014, which supplements the direct payments regulation, and Commission implementing regulation (EU) No. 641/2014, which lays down rules for the application of the direct payments regulations.
In Beaconsfield, we are still very keen to receive these payments, and the Minister is right to bring forward the Bill. Many of my farmers would like to produce more, but that is currently restricted under the CAP. Does the Bill deal with that? For example, I have a chicken farmer who would like to increase the number of chickens and eggs that they produce, but there are restrictions because of the common agricultural policy payments. Is there anything in the Bill that will allow them to increase productivity as we move out of the EU?
If my hon. Friend writes to me on the specific issues for the chicken producer that she mentions, I am happy to look at that. As a general rule, poultry producers tend not to qualify for the basic payments scheme, because it is area-based. Of course, it could be a mixed enterprise, where the producer has a poultry unit and some land on which they claim BPS. There are also some domestic environmental regulations and a licensing scheme that the Environment Agency runs that would affect certain establishments in the poultry sector.
The Bill brings across existing legislation exactly as it is and does not envisage any change. The only change might come from the absence of EU auditors, as this is no longer an EU budget. Therefore the absence of the risk aversion that is a feature of Whitehall—where we have perpetual legal jeopardy and the constant threat of infraction, of disallowance risks and of arbitrary fines slapped on by EU auditors—means that we may be able to have a margin of appreciation in how we interpret some of these regulations, so that we can, for instance, send farmers a warning letter, rather than stinging them with a fine as we are required to under EU law.
It is very welcome to us in Cheltenham that in future the Government plan to use state support to promote biodiversity on farms to a far greater extent than is permissible under the CAP. However, will the Minister indicate how we can expect our landscape to change as a result of these very welcome policy changes?
The Agriculture Bill, which is a matter for future discussion, envisages in clause 1 that we would support, for instance, measures to reduce climate change and carbon emissions and measures on carbon sequestration. We have a commitment to establish additional new woodland areas. In some areas, I suspect that there would be some land-use change. We also want to use our future policy to support a more sustainable approach to farming, for instance getting more farmers involved in catchment-sensitive farming schemes, integrated pest management, better soil husbandry and better stewardship of our hedgerows. All these issues will have an impact on our environment and its biodiversity.
The Minister talked about having a lighter touch, in terms of moving to a warning letter rather than having fines, and many farmers will breathe a huge sigh of relief at that. What scope does he see in the Bill to build on the trend of performance improvement, which we have started to see from the RPA but where there is still headroom for further improvements, therefore hopefully further de-stressing the art of agriculture in this country?
My hon. Friend makes an important point, which links to something I said earlier about the removal of the perpetual legal jeopardy that Whitehall has been subjected to while we have been an EU member. The issue, particularly in the CAP, is that there is a system of fines relating to what is called disallowance risk. The UK typically pays around £100 million a year in disallowance risk fines, often for very trivial errors such as a supposed lack of accuracy on maps, with a requirement that we map fields to four decimal points of accuracy, and issues about how things are recorded—even though they may be recorded, it may not be in the form that the EU auditors require. Some EU audits retro- spectively make things up, so we never know how an auditor will interpret the regulations in front of us. That means that officials who work very hard in DEFRA to make sense of these complex regulations will often take a view, have legal advice and interpret a regulation in a particular way. Subsequently, auditors will come along with a different view and that creates a disallowance risk. It is a very difficult situation to have a constant sense of legal jeopardy, which leads to risk aversion and people being very cautious and sometimes quite draconian in how they deal with farmers. That has been a constant problem with the existing scheme.
As a former Parliamentary Private Secretary to my hon. Friend, I am pretty forensic on these matters, as he will know—I am grateful to him for his indulgence. What plans do he and our right hon. Friend the Secretary of State have for communicating, monitoring and embedding the change of culture in the RPA? I do not say this to be rude to the RPA, but it will have been trained in a certain way of doing things and, rather like people who have been held prisoners for 40 years, will have no idea how to deal with its freedom once it is released. How will he ensure that the lighter touch that is now available as a result of the domestic legislation is communicated to all levels of the RPA so that as soon as possible, from day one, farmers will feel the benefit? A legislative change, if not implemented by the practitioners, is no change at all.
My hon. Friend makes an important point. All of us—officials in Whitehall, Members of this House, and indeed, generally as a country—have to get used to our freedom and to enjoying it, and develop the confidence to exercise judgment in all fields as we leave the European Union and become a genuinely self-governing country again, which is what we will do.
I have already had a meeting with the chief executive of the RPA. It has made considerable progress over the past 18 months in improving its performance, but I have tasked him with looking at any changes in process—anything that could be adapted, removed or changed—that would make the application of the scheme easier once we have removed the constant threat and legal jeopardy caused by EU auditors, so we are doing a piece of work on this.
I just want to say well done to the Minister. It is really uplifting that there is something positive and that we can save some money.
I thank my right hon. Friend for that comment. He and I have taken a similar view of pan-European legislation for some time, and obviously there will be many opportunities as we leave.
Many upland sheep farmers, particularly in my constituency, will welcome not only the extra year of payments and the confidence it will give them, but the less draconian approach that the Government seem intent on taking. With the Agriculture Bill coming, can the Minister further reassure farmers in my constituency that there will be a phased approach so that they have time to get used to the new measures?
Yes, my hon. Friend makes a very important point. Today’s Bill today simply brings across the existing schemes, including, as I have pointed out, all the so-called greening rules, all the cross-compliance rules, and so on. There is a small margin of appreciation that we can apply to interpret these sensibly and proportionately, which we have not been free to do to date. That said, we recognise the importance of a gradual transition to our new agriculture policy, which is why that policy envisages a seven-year transition, with a gradual phasing out of the BPS and with support to ensure that farmers have a prosperous and profitable future.
Now we are getting rid of the cosh of legal threat hanging over our hard-working farming community, including in Rother Valley, can we use this as an opportunity to help, educate and upskill our farming community on the importance of biodiversity and so increase the flora and fauna in our beautiful areas? The farming community in Rother Valley already knows this, but what other support can the Government provide to encourage these things?
There are several important schemes, such as the Government-funded Farm Advisory Service and the various wildlife campaigns that also support farmers to farm in a more environmentally sensitive way. The future agriculture policy envisages that we will provide advice and support to farmers—direct on-farm advice—about what might work on their particular holding, with their particular soil, landscape and topography. It is an exciting future, and having the right technical advice will be an important part of it, so my hon. Friend makes a good point.
The Minister will have seen the Scottish Affairs Committee report on agriculture in Scotland. It recommends that in considering the funding envelope across the UK he support less-favoured areas and that the funding follow the quality of the land. He was not particularly enthusiastic about that suggestion. I wonder if he has changed his mind. If not, on what central tenet does he see the distribution of funding across the UK being based?
Obviously we will work with the devolved Administrations on future funding. The Bill—in later clauses, so I will not dwell on it now—deals with recommendations for the allocation of funding this year, pertinent to the conclusions of the Bew review, which I will come on to. More generally, future policy envisages payment for public goods, but it also envisages a long transition towards that. We have given a commitment to keep the agriculture budget the same at least for this Parliament. [Interruption.] Within the UK, yes, there will be some discussions on allocation, but every component of the UK is likely to adopt a transition period during which they would want to keep, at least for a time, something akin to the current system as they move to a new one. That said, the funding settlement is for a future day and discussion, not for the Bill today, which covers this year only.
The Minister talked about public goods. As a veterinary surgeon, I am proud to say that in Penrith and The Border, in Cumbria and across the UK we have the highest standards of animal welfare and farming. Does he agree we need to articulate the fact that those standards will not be watered down and that these Bills are an opportunity for the UK to become a beacon for the rest of the world and that we will be able to raise animal welfare standards in our future trading partners?
Yes, my hon. Friend makes a very important point. As I have said, we have a manifesto commitment to protect animal welfare and food standards in future trade deals. Moreover, future policy envisages our being able to make payments to farmers—for instance, those who enter into a high welfare or high animal health scheme. We have an exciting opportunity to support high health and welfare schemes that could, for instance, reduce our reliance on antibiotics, which has been identified as a clear public good for future policy.
I will return to clause 1, as I realise there have been many interventions, which I have taken because clause 1 contains the meat of the Bill in that it brings across all the regulations.
Order. For the sake of clarity and because new Members are present who might be concerned about sticking to the rules, I should explain that in addressing clause 1 the Minister is perfectly in order and absolutely right to address all the other aspects of the Bill because we have grouped all the clauses and amendments together, and any Member may at this point refer to any aspect of the Bill they wish to raise.
Thank you, Dame Eleanor.
The Bill also covers the horizontal regulation, which governs the way paying agencies should operate; Commission delegated regulation 907/2014, which supplements the horizontal regulation with regard to paying agencies and other bodies, financial management, clearance of accounts, securities and use of the euro; Commission implementing regulation (EU) 908/2014, which lays down the rules for the application of the horizontal regulation with regard to paying agencies and other bodies, financial management, clearance of accounts, rules on checks, and securities and transparency; Commission implementing regulation 809/2014, which lays down rules for the application of the horizontal regulation with regard to the integrated administration and control system—the so-called IAC system—rural development measures and cross-compliance; and Commission delegated regulation 640/2014, which also supplements the horizontal regulation with regard to the IAC system and conditions for refusal or withdrawal of payments and administrative penalties applicable to direct payments, rural development support and cross-compliance.
Does my hon. Friend agree that these proposals show how the Government are leading the fight on climate change while also protecting our precious farming community? Not only will this Bill safeguard our payments for the next year, but the whole thrust of the Agriculture Bill is to allow our farmers to farm in a sustainable, environmentally friendly way that rewards them for protecting and helping our environment, which has to be applauded.
Yes, my hon. Friend makes a very important point, and that is why we have set a very different course with our future agriculture policy, though it is based on payment for public goods. It is important that we support our farmers and properly reward them for the work they do for the environment.
Farming in South Suffolk is fairly horizontal—fairly flat—so I welcome these regulations. On a key technical question, under all those regulations the top level of payment awarded at EU level is in euros, whereas, of course, the allocation for the payment in UK law is in pounds sterling. Is there therefore any currency risk through the year to the payments that will ultimately be received by our farmers?
There is no currency risk for British farmers in this year, because the total size of the budget has already been set by the Treasury, and it has been set at the same level as last year. Under the regulations, we have to go through the formal process of setting the exact payment rate, but, because the budget has been guaranteed and it has been guaranteed that the payment system will be the same, farmers have a high degree of confidence that—barring any minuscule changes—their payment will be the same as it was last year.
My hon. Friend has put his finger on an important problem with the common agricultural policy. It introduced an entirely unnecessary exchange rate risk for our farmers, in that money was sent to the European Union in pounds and was then denominated in sterling at a fixed point in time, typically in September each year. That meant that if the pound had had a good year and had rallied against the euro, farmers found that their payment would be lower, whereas sometimes when the pound fell, as it did after the 2016 referendum, they had an early Brexit dividend and received a higher payment than they might otherwise have expected. That unnecessary exchange rate risk has now gone, and the budget is set for this year.
I do not want to bore people too much with these regulations. I have listed them all in detail, and there is a reason for that. In the European Union, particularly in the context of the CAP, there are three types of regulations. There are the basic regulations, which the Council of Ministers has quite a bit of involvement in shaping, and on which, through working groups, the member states have a vote. There are delegated Acts or regulations, in which there is far less involvement for the member states. They collectively have a kind of veto power, but have less of an amending role. Then there are the implementing Acts or regulations, which the Commission pretty much just makes up without any particular involvement of the member states.
That said, I am conscious that Members will never have debated any of these regulations. Ministers will have been aware of debates and discussions taking place in working groups as the basic regulation was formed, and they will have received submissions letting them know that something alarming had been handed down in an implementing Act and we could not do anything about it. Obviously, as we make regulations in future, the scrutiny of the House will be brought to bear, and Members will be able to engage in and scrutinise every bit of the detail of future agricultural policy.
The regulations that I read out earlier may have seemed like a list of rather meaningless numbers, but I can tell Members who are interested in what they mean collectively, in terms of what the farmer is required to do, that basic payment scheme rules are published annually by the Rural Payments Agency. Let me give Members a flavour of those.
The publication “Basic Payment Scheme: rules for 2019” sets out the key dates during that scheme year to which farmers must have regard. It includes, for instance—and all this is born out of the regulations that are being brought across today—the setting of 1 January as the official start of the year. The period between 1 January to 30 June is regarded as the
“EFA period for EFA fallow land” .
That is the period during which land must be fallow if farmers want to claim it. On 13 March, the “window opens”, and farmers can start sending in their applications. Between 1 May and 30 June, the so-called three crop rule kicks in, along with the
“EFA period for nitrogen-fixing crops”.
During that period, farmers must demonstrate that in that window and that window only, they have three crops on their farms. Another rule states that one of those crops can be fallow land, but the qualifying period for that type of fallow land is different from the one for the type that is covered by the EFA period.
There is a deadline of 15 May for farmers to submit their BPS application forms. They are then given a couple of weeks’ grace during which they can make changes, and they have until 31 May to do that. There is then a “late application” deadline, which means that farmers are effectively given 21 days to submit late applications, but will lose, typically, 1% of their payment for each late application day.
Will my hon. Friend tell us a little more about the legal provisions enabling amendments and corrections to be made after we have left the EU, and how it can be ensured that the Bill is operable and can continue to be implemented?
My hon. Friend has made an important point. Let me say two things. First, clause 3, which I was going to come on to—I understood that you wanted me to address all the clauses simultaneously, Madam Deputy Speaker—deals with that issue in respect of the claim year 2020, in that it gives us powers akin to those that were in the European Union (Withdrawal) Act 2018 to make particular modifications and changes, simply to make this body of law operable. For instance, it enables us to replace the words “European Commission” with the words “UK Minister”, or, indeed, “devolved Administration Minister”, and it gives us the power to introduce subsequent statutory instruments to make the legislation operable.
Secondly and more broadly, for the purpose of future policy, the Agriculture Bill includes a power to modify policy. This Bill does not modify policy, but it gives us the power to make operable changes akin to those in the European Union (Withdrawal) Act.
I think it important to learn the lessons of our involvement in the common agricultural policy over the years, and to consider some of the things that have gone wrong with it. In the context of implementing future changes in regulation, we should recognise that, for example, the set-aside rule—which those of us who were in farming in those days know and love—would sometimes represent the difference between profit and loss for a farm. To put it bluntly, the difference between the farm being viable and not viable was what the EU paid farmers not to grow anything. How can we incorporate that balance between productivity in our land and a viable economic agricultural and rural sector in our future legislation? I am heartened to hear that we are keeping that option in this Bill.
I agree that we must learn the lessons of the common agricultural policy. Having dealt with it for some seven years in total, I know that it is something of a bureaucratic quagmire. It is very difficult to navigate, and we tend to find that the more rules we invent, the more rules we need in order to make sense of the ones that we already have. That is why we end up with all sorts of complexity, as set out in the 127-page document containing guidance and rules for farmers.
The real lesson to be learnt is that whatever we do in future should be less rules-based and more based on delivering outcomes, and should also be tailored to the needs of an individual farm. When farms have poor profitability, we should try to tackle the causes of that poor profitability by helping farmers to invest and improve fairness in the supply chain, rather than by means of an arbitrary area-based payment. That is the direction of travel that we have set out.
Does my hon. Friend agree that those like me who have smallholdings are often overwhelmed by the body of rules, and end up not claiming money that they should rightly claim? Has that been a problem historically, and are there any records that show how many people are covered by this?
Every month I have to deal with appeals lodged by farmers following decisions made against them involving, for instance, penalties or disqualifications for their particular claim year, perhaps because they were late in submitting their claim. There is often a tragedy behind those stories, and the scope for a Minister to address that within the boundaries of EU law is often quite limited, but we will have the chance to address it in the future.
I do not think that anyone will disagree with the Minister about the need to get rid of overt bureaucracy, but on Friday I attended a farmers’ breakfast with representatives of the Farmers Union of Wales, and I know that my local farmers fear that they will lose access to their biggest export markets. Over 90% of Welsh lamb and beef goes into the European single market. What assurances can the Minister give that access to that market will remain unfettered following the completion of the negotiations?
The hon. Gentleman makes an important point—a number of others have raised it—about the importance of trade. That can be about protecting our standards in respect of the trade deals that we do, but it can also be about access to the European market, which is particularly important for some sectors, notably the sheep sector. That is why the political declaration that was agreed as part of the withdrawal agreement—effectively a heads of terms—sets out the ambition to move to zero-zero tariffs on all goods. That is the approach that we will be taking, as outlined in the political declaration, but it is not dealt with by this particular Bill.
I know I am pushing the boundaries slightly, but was the Minister at all concerned by the comment by the Chancellor of the Exchequer about a week ago that there would be no alignment with European standards? If that is the case, there will be no access to EU markets, will there?
The political declaration was very clear, and it is implicit in the withdrawal agreement that we have now put in place that there will be no alignment with EU law. We are seeking agreement on the recognition of equivalence and understandings based on equivalence. It is understood that, yes, there could be some border checks and some additional paperwork, because we will not be aligning with EU law and those rights. I was not alarmed by what the Chancellor said, and I was not surprised by it, as it has been in our manifesto and it is also in the political declaration. I fully support that approach.
A moment ago, my hon. Friend was setting out the timetable for applying for the new basic payment. Could he, for the benefit of the Committee, set out in a little more detail when farmers can expect to receive those payments, on the presumption that an application has been legitimate and cleared all the necessary hurdles in order to secure that payment? Are we just going to mirror what exists at the moment, or are we going to create something different?
For this year, the 2020 year, the payment window will be exactly the same as in previous years. The payment window opens on 1 December. Last year, the 2019 year, we paid around 95% of farmers by Christmas or the end of December, and the latest intelligence I have is that up to 97% of farmers have now been paid. So the vast majority of farmers—well over 90% and probably more like 95%—can expect to be paid in December 2020.
On that point, I have a farmer in my constituency who is still waiting for his basic payment from last year. Rural Payments Wales is in a mess over a degree of payment. Will there be any opportunity, either in this Bill or in the forthcoming Agriculture Bill, to include a measure to allow compensation when farmers’ payments are delayed by Rural Payments Wales or the Rural Payments Agency?
That is a matter for the Welsh Government. I know that the RPA has had its issues in the past. All paying agencies in all parts of the UK are dealing with an incredibly complex body of law with a complex audit structure around it. As I say, with that being removed, I anticipate that all parts of the UK will find it easier to get payments out in a timely fashion by the end of this year.
I want briefly to touch on some of the other types of rules that are covered by this body of regulation. It sets out all the eligibility criteria—for instance, for common land and how to apply for it. It sets out specific requirements for areas such as the New Forest, which has a separate type of approach. It also sets out all the rules on transferring entitlements. There is a feature of EU law that states that someone can only claim on an area of land on which they have also lodged a so-called entitlement attached to that land, and there is a market in the transferable entitlement. The body of regulation also sets out all the so-called greening rules that were added in the last CAP reform. That includes the crop diversification rules for arable land, which stipulate that such land must have at least three crops. It includes the environmental focus area, which is the calculation someone can apply for their hedges to count towards that area. It lists the types of crops that qualify as leguminous crops for the purpose of the EFA rules. It sets out all the rules on buffer strips, including how wide a buffer strip must be when it is alongside a watercourse, and whether someone is allowed to have arable land or pasture alongside and adjacent to that buffer strip. The list goes on. It lists the types of crops that can count towards the three crop rule. For instance, it stipulates that a cabbage can be deemed to be the same as a cauliflower for the purposes of the three crop rule because they come from the same family. In other cases, it stipulates that certain crops are to be treated as separate.
Hon. Members may well be asking why on earth we will be bringing across regulations of this clunky nature. The answer, as I said at the beginning, is to provide clarity and certainty to farmers for this year only. The common agricultural policy, as currently designed, is a bureaucratic quagmire and we have no intention of retaining it for the long term. However, we recognise that evolving from the system that we have to the one that we want will take some years, and in this particular year we are proposing no change at all.
I am grateful to the Minister for this information and for the insight, albeit at a slightly higher level, about how we are to proceed from the Bill into a future relationship between Government and the agricultural sector. How will he detail the relationship between Government, the devolved Administrations and the industry? Can they look forward to a two-way communication whereby they can have confidence that the Government fully understand the ambitions and pressures in the sector as we develop further legislation?
I can say that, for the Bill before us today, we have received legislative consent motions for every part of the UK, including Scotland. It is universally in the interests of every paying agency to have this Bill agreed and on the statute book so that they can pay for this year. Future policy will be a matter for the devolved Administrations, and I know that the Scottish Government will be charting their own course and setting out their own legislation. I know that the Welsh Government, while seeking some provisions in a schedule to the Agriculture Bill, will also now be predominantly striking their own course and making legislation in their own Parliament. It will be very much an issue for the Scottish Government to work with Scottish farmers, but of course we have procedures to co-ordinate around the UK and to set up frameworks where necessary. We also have Joint Ministerial Committees, which I regularly take part in it with my opposite numbers in the devolved Administrations.
Regarding tribunals and disputed claims, are we going to set up a temporary agricultural tribunal or legal system to handle the processing of such claims or disputes? For example, there could be disputes over a buffer strip or over payments or claims, or perhaps when a family member of a deceased farmer has to make a new claim. Will a process be put in place as a temporary measure to handle the necessary legal framework?
My hon. Friend makes an important point. The short answer is that we have an appeals system in place. We have the independent agricultural appeals panel, which is drawn from agricultural experts, lawyers, land agents and farmers. It is a lay panel, but it hears complaints and legal objections to penalties coming from farmers. Once the appeals panel has made a recommendation, it comes to the relevant Minister, which is me. I have spent seven years dealing with these appeals, and I can reassure my hon. Friend that I leave no stone unturned in ensuring that farmers who lodge an appeal are given a fair hearing and that the issues they raise are taken into account.
On the matter of disputes, when it comes to funding allocations between the different Governments of the United Kingdom, how does the Minister envision any disputes on that level being resolved?
In terms of our discussions with the devolved Administrations, these are issues that we resolve through the Joint Ministerial Committee. We have frame- works to do that.
I will take no further interventions, because I want to address the other clauses before we move on to other speeches. I am sure that other hon. Members have a great deal to say. Clause 2 applies the provisions in the European Union (Withdrawal) Act 2018 to the direct payments legislation. This is simply about interpretation, to ensure that our courts interpret this legislation in a way that is consistent with that Act.
Moving on, clause 3 contains regulation-making powers for the Secretary of State and the devolved Administrations in relation to the retained direct payments legislation. The parliamentary procedures that apply are covered in schedule 2, which is about the power to make operability changes to correct deficiencies, such as changing the words “European Commission” to “the relevant authority in England” and so on. It is simply about making the particular provisions that are brought across operable. I will address the amendments to schedule 2 when winding up, because the shadow Minister will want to make his points before I deal with them.
I have very much enjoyed the observations from around these islands in this debate. I would like to reflect on the answer that the Minister gave me, and offer him an opportunity to expand on it a little in his summing up. I asked how Ministers in the UK Government would interact with the agricultural sector, its representative bodies—the NFU and the National Farmers Union of Scotland—and Ministers in the various devolved Administrations on how we take forward the next cycle of developing a post common agricultural policy, post-EU agricultural framework for the United Kingdom.
Although the devolved Administrations have substantive authority and control over many of these issues, they are necessarily subsidiary to the UK. I definitely wish that that was not the case, but in so far as it remains the case, it is incumbent on Ministers to take a co-operative and collegiate approach to setting objectives for developing, and delivering the very best for, our agricultural sector. I would like to hear how the Government intend to do that.
In the Minister’s response to a question from the hon. Member for North West Durham (Mr Holden), we heard about the phasing of the changes as we evolve after the common agricultural policy, and about how that phasing would be undertaken. That is a key element of understanding exactly what farmers and representative bodies wish to see. As the Chair of the Select Committee pointed out, there are elements of the CAP that are worth keeping, and the Minister would do well to ensure that he liaises with people on the frontline of agriculture about what those elements are. There must be recognition that although the Bill bridges a gap, it does not give an opportunity for the meaningful transition of long-term planning. Many colleagues across the House have spoken about the need for investment in capital equipment and machinery because of the changes in the produce of farms. It is important that there is some indication or signposting about transferring and evolving the post-CAP scenario into something that will really deliver meaningful material change for agriculture.
I wish to address some of the points raised by hon. Members, including the shadow Minister, who tabled some amendments.
On the claim that the Bill has been rushed, the reason that we need to get it through Parliament now is that we cannot allow an air gap to open up in the application of these regulations. We leave the EU at the end of January. Members will be aware, from what I said earlier, that the scheme year is already open. Farmers are already making decisions about cropping and how much land they must leave fallow. Many of the deadlines are already upon us. The scheme window opens in March, so we must have the legislation in place to ensure that the schemes can be implemented. That brings me to my main point, regarding Opposition amendments 8 and 9 to schedule 2, which would remove the made affirmative procedure. The regulations must be made by exit day so that there is not an air gap. If we waited for the affirmative procedure, these necessary regulations would not be in place in time; there would not be operable law in place. That is why the made affirmative procedure is appropriate for clause 3(1) and (3).
The shadow Minister suggested that we needed a provision to extend the Bill. We do not need such a provision because the Agriculture Bill will replace these arrangements. As far as compensation and late payment penalties are concerned, the simple fact is that we need to simplify the scheme to ensure that people are paid on time, not to have lots of complex remapping. That is what we intend to achieve through this legislation.
Question put and agreed to.
Clause 1 accordingly ordered to stand part of the Bill.
Clauses 2 to 9 ordered to stand part of the Bill.
Schedules 1 and 2 agreed to.
The Deputy Speaker resumed the Chair.
Bill reported, without amendment.
Third Reading.
I beg to move, That the Bill be now read the Third time.
I thank the House for the debate on this Bill, which is so vital for the agricultural sector across the UK. I recognise the frustrations that some Members might have had because of the need for the Bill in the first place, given that the Agriculture Bill is on its way. Let me reaffirm that this Bill makes no policy changes; it is about continuity. It is a small, technical Bill to ensure that the Government and devolved Administrations are able to pay direct payments to farmers for the 2020 scheme year. Our future intentions for agriculture in England have been laid out by the Government in our Agriculture Bill, which was introduced on 16 January. We know that farmers need stability, certainty and a smooth transition to our new system of public money for public goods, so we will not switch off direct payments overnight. That would be irresponsible. There will be a seven-year agricultural transition period, allowing a system of public money for public goods to be introduced gradually.
I acknowledge that the Bill is being passed according to a tight timescale. However, it is imperative that it and the necessary secondary legislation are in place and in force by exit day, which will be upon us at the end of this week. The withdrawal agreement will stop the CAP direct payments legislation applying in the UK for the 2020 scheme year. This was intended so that the UK would not have to pay into the EU’s next budget cycle, which funds the 2020 direct payment year.
I am going to try once more to get an answer from the Minister. We will not be paying into the common agricultural policy money that comes back to us, but will we be paying the amount that we paid before, which contributed to the CAP across the rest of the European Union?
I am sorry that I was not able to address my hon. Friend’s point previously. We will not be contributing to the next multi-annual financial framework or the 2021 budget. Therefore, not only will we not be contributing and getting back money for our farmers—we will pay that ourselves—but we will not be paying into this scheme year for EU farmers, because we will not be contributing to that part of the budget.
I am pleased that the Bill is becoming law so that we can ensure that farmers in each and every part of the UK have the certainty they need as we leave the CAP, and embark on our new and ambitious programme. The Bill has received legislative consent motions from every part of the UK, including Northern Ireland, even though the new Administration formed only recently, and I concur with the point made earlier by the hon. Member for Strangford (Jim Shannon).
(4 years, 7 months ago)
Written StatementsThe Agriculture and Fisheries Council takes place in Brussels on 27 January.
As the provisional agenda stands, the main item for agriculture will be an exchange of view between EU Ministers on the regulation on common agricultural policy transitional rules. The Commission will also present on the agricultural aspects of the Green Deal, followed by an exchange of views on this.
This will be followed by a presentation from the Croatian presidency on the work programme during the presidency.
[HCWS62]
(4 years, 7 months ago)
Commons ChamberWe have had a good and comprehensive debate, with a number of excellent maiden speeches along the way.
Many Members talked about the future of agriculture policy after the implementation period. That is a matter for the Agriculture Bill, which was presented to the House last week and will be debated in due course. A number of hon. Members made reference to trade deals and the vital importance of maintaining our standards as we enter them. I agree with that, and our manifesto set out clearly the Government’s approach to maintaining standards as we negotiate future trade deals. These issues will be reflected in future trade mandates.
The Bill before us is about a very simple issue and covers one year only—namely, the year 2020. It is required as a consequence of the withdrawal agreement, because article 137 disapplied the direct payments regulation and the horizontal regulation. The reason it disapplied that particular regulation is down to a quirk of EU CAP funding, in that the basic payment scheme payments for 2020 are funded out of the 2021 budget year. The UK will not be part of the multi-annual financial framework from 2021. It will therefore not contribute and must fund the scheme domestically for this year. The Bill simply makes the common agricultural policy, as we have it today, operable for the current year.
Secondly, the Bill addresses the issues highlighted in the Bew review. It creates the powers necessary to change the financial ceilings to implement in full the recommendations of the Bew review, so that there will be an uplift in funding for Scotland and Wales to reflect their severely disadvantaged area status. The shadow Secretary of State asked whether that fund would be new money or whether farmers in England and Northern Ireland would have their funds top-sliced to pay for it. I can confirm that the uplift for Scotland and Wales will be paid for with new funds. There will therefore be no loss to the BPS payments for English or Northern Ireland farmers.
The shadow Secretary of State, whom I welcome to his position as a fellow west country MP, claimed that the Bill before us would have been unnecessary had the Agriculture Bill passed in the last Parliament. However, he will be aware, having debated these issues with me in the Bill Committee, that in the last Parliament it was envisaged that the withdrawal agreement would be concluded, agreed and implemented before the Agriculture Bill concluded.
For reasons I am sure no one in this House need be reminded of, the withdrawal agreement became a quite protracted debate. In the event, because certain forces in the last Parliament came together to try to block Brexit altogether, that issue had to be resolved before Bills such as the Agriculture Bill could progress. I am pleased to say that it was eventually resolved through the general election. This Government now have a clear mandate to leave the European Union at the end of this month, and to do so with the withdrawal agreement that the Prime Minister negotiated in October.
It is also wrong for the shadow Secretary of State to say that had we passed the Agriculture Bill earlier, we would have been in a position to begin the agricultural transition sooner. Both our White Paper and the Agriculture Bill always envisaged the transition period starting in the 2021 scheme year. We are back on course. There is therefore no need for the Bill to cover anything other than the current year. The Agriculture Bill, which we will debate shortly, will deliver everything we need for future years.
I very much welcome what the Minister is saying, because the transitional period from 2021 to 2028 is exactly the way to do it. The key will be making sure that we have the new policies in place in time for farmers to take up the new payments.
My hon. Friend makes an important point. Obviously, the transitional period is a feature of the Agriculture Bill that we will debate in the coming months.
The performance of the Rural Payments Agency was highlighted by the shadow Secretary of State and a number of other hon. Members. I pay tribute to Paul Caldwell, the chief executive of the RPA, and his team for the huge progress that they have made to get the current CAP system stabilised and back on track. They have just lodged their best performance for many years, with more than 93% of farmers paid by the end of December and many more paid since then. The environmental and countryside stewardship schemes have been stabilised, with those payments back on track too. In recent years, making sense of a hopelessly bureaucratic common agricultural policy has certainly had its challenges, but I urge Members to refrain from criticising the RPA while it tries to deal with those bureaucratic challenges, and I thank it for the work that it has done.
That brings me to the point raised by my hon. Friend the Member for Tiverton and Honiton (Neil Parish) about the scope to simplify schemes. The truth is that, in this particular year, the horizontal regulation and all the CAP regulation will come across, and the scope to change or simplify is very limited. There will, however, be a margin of appreciation, with the absence of draconian EU audit requirements, for us to consider how we implement those things. There will be some modest changes, but the big changes he seeks, such as addressing the problems of the three-crop rule and wider regulatory problems in the scheme, will be provided for in the Agriculture Bill and are a matter for the future.
The shadow Secretary of State and a number of other Members alluded to rare breeds. I am sure that the shadow Secretary of State has read the new Agriculture Bill, and I am sure he will read it again closer to its Second Reading. He will presumably have noted that we have made an addition to the list of objectives for public goods, to include native breeds and genetic resources, so that we will be able to directly support and recognise the public good value of rare and native breeds.
The hon. Member for Edinburgh North and Leith (Deidre Brock) made the point that this legislation is important for all parts of the UK. I am pleased to say that both the Scottish Parliament and the Welsh Assembly have granted a legislative consent motion. This Bill is uncontentious. We will have many disagreements on elements of the Agriculture Bill, but this piece of legislation is necessary for all parts of the UK.
The hon. Lady also mentioned wider issues, including seasonal agricultural workers. I would like to pay tribute to Kirstene Hair, the former Member for Angus, for the considerable work that she did on that issue. The Conservative party and the Government are now committed to quadrupling the size of the seasonal agricultural workers scheme from 2,500 to 10,000. That was largely due to the work done by Kirstene Hair. I am pleased to welcome the hon. Member for Angus (Dave Doogan) to his seat, and I am reassured to hear that he has already picked up on this issue, since the soft fruit industry in his part of the Scotland is vital. I commend him on an admirable speech.
I also commend the excellent maiden speech by my hon. Friend the Member for Brecon and Radnorshire (Fay Jones). She spoke with passion about her constituency, and I know that she will be a champion for it. As a former DEFRA official, she will certainly bring plenty of expertise to the House on Bills such as this.
It is a great pleasure to welcome back my hon. Friend the Member for Eddisbury (Edward Timpson). I have fond memories of the month that I spent assisting him in the Crewe and Nantwich by-election in 2008, the first time he was elected, and it is great to have his expertise back in the House. My hon. Friend the Member for North Cornwall (Scott Mann) raised issues about the rolling up of payments in future agriculture schemes. That is provided for in the new Agriculture Bill. I know that he is passionate about public access for schoolchildren and perhaps even cycling, and I will discuss those issues further with him.
My hon. Friend the Member for North Herefordshire (Bill Wiggin) is a committed enthusiast for our native breeds, the pasture-based livestock system and food labelling. We will debate those issues further on Second Reading of the Agriculture Bill. The hon. Member for Ceredigion (Ben Lake) asked an important question about whether this money will be required to be spent on the BPS. It has to be paid and spent within the parameters of the direct payment regulations. In theory, there is some discretion in how the Welsh Government spend it. In practice, the rules of the direct payment scheme are so prescriptive that the scope to do anything different is very limited. I point out that, under the Bew review, there has been an uplift for Wales, albeit less generous than the one for Scotland.
My hon. Friend the Member for Sleaford and North Hykeham (Dr Johnson) asked about the budget and currency fluctuations. Article 13 of the state aid rules was retained through the European Union (Withdrawal Agreement) Bill, and we do not believe that there will be any implications of having fixed the exchange rate in the year just gone for the forthcoming year. My hon. Friend the Member for North Dorset (Simon Hoare) talked about the importance of profit in farming, which I concur with. In conclusion, I hope that I have covered as many of the different points raised as possible, and I commend the Bill to the House.
Question put and agreed to.
Bill accordingly read a Second time.
Direct Payments to Farmers (Legislative Continuity) Bill (Programme)
Motion made, and Question put forthwith (Standing Order No. 83A(7)),
That the following provisions shall apply to the Direct Payments to Farmers (Legislative Continuity) Bill:
Committal
(1) The Bill shall be committed to a Committee of the whole House.
Proceedings in Committee, on Consideration and up to and including Third Reading
(2) Proceedings in Committee, any proceedings on Consideration and any proceedings in legislative grand committee shall (so far as not previously concluded) be brought to a conclusion two hours after the commencement of proceedings in Committee of the whole House.
(3) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion three hours after the commencement of proceedings in Committee of the whole House.
(4) Standing Order No. 83B (Programming committees) shall not apply to proceedings in Committee of the whole House, to any proceedings on Consideration or to other proceedings up to and including Third Reading.
Other proceedings
(5) Any other proceedings on the Bill may be programmed.—(Leo Docherty.)
Question agreed to.
Direct Payments to Farmers (Legislative Continuity) Bill (Money)
Queen’s recommendation signified.
Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),
That, for the purposes of any Act resulting from the Direct Payments to Farmers (Legislative Continuity) Bill, it is expedient to authorise the payment out of money provided by Parliament of:
(1) sums required by the Secretary of State for making payments to farmers under the direct payment schemes provided for by the Direct Payments Regulation (Regulation (EU) No 1307/2013) as incorporated into domestic law by the Act;
(2) any increase in the sums required for that purpose where the increase is attributable to a decision made by virtue of the Act to increase the total maximum amount of direct payments in the United Kingdom;
(3) administrative expenditure of the Secretary of State incurred by virtue of the Act in connection with the operation of those direct payment schemes;
(4) any increase in the sums payable out of money so provided by virtue of any other Act where the increase is attributable to the Act and arises in connection with the operation of those direct payment schemes.—( Leo Docherty.)
Question agreed to.
(4 years, 7 months ago)
Written StatementsI represented the UK at the Agriculture and Fisheries Council in Brussels on 16, 17 and 18 December.
On fisheries, the focus of the Council was EU quota negotiations, involving decisions on fishing opportunities for the next year for quota stocks in the North sea, Atlantic, the English channel, Irish and Celtic seas. Fishing opportunities are set under the rules of the reformed common fisheries policy, which aims to have all stocks fished at sustainable levels by 2020 at the latest.
Prior to the Council, a number of negotiations had taken place with third countries, such as EUNorway, which set fishing opportunities for certain stocks. The EU share of these opportunities were endorsed at the Council.
This year member states agreed on significant cuts in cod quotas due to scientific concerns on the state of cod stocks in the Irish Sea, west of Scotland and Celtic sea.
The UK took a lead on setting zero total allowable catch (TAC) for Celtic cod, which ensured that the agreed quota would allow the Celtic sea fleet to avoid being tied up before they fished their target species quota.
To further protect vulnerable cod stocks, the UK has also successfully pushed for enhanced rules on sustainable fishing practices such as changing net sizes, to help cod stocks recover.
Concerning seabass, Ministers decided to slightly increase the by-catch levels in the northern areas and grant additional flexibility in their management. The bag limit for seabass recreational fisheries was set to two specimen per fisherman per day under certain conditions, and only from 1 March to 30 November 2020 for northern seabass.
Total fishing opportunities agreed for 2020 included increased quotas for:
North sea haddock (+23%)
Sole in the western channel (+19%)
The Commission also provided a general approach on regulations on Baltic cod and western fisheries herring. It announced that it will take measures to help fishermen cope with the harmful socioeconomic effects of the severe fishing restrictions on cod and western herring in the Baltic sea that are already in place and agreed for 2020.
The primary focus for agriculture was a debate on the post-2020 CAP reform package, including three legislative proposals: the first on CAP strategic plans; the second on financing, management and monitoring of the CAP; and the third on common market organisation (CMO) of agricultural products. The Commission proposed a new delivery model that would allow member states more flexibility in the way they use EU funds and would allow them to tailor their programmes.
In the discussion that followed, EU member states’ Ministers broadly welcomed the report, considering it as a good basis for continuing work under the incoming Croatian presidency. They indicated that the “new delivery model” and the “green architecture” were the main elements requiring further debate, the latter also in light of the recently published “European Green Deal” communication. Amongst further issues, interventions in certain sectors and coupled support were also mentioned as elements which should be discussed further. Ministers stressed the importance for the agricultural budget to be in line with the proposed enhanced environmental and climate ambition.
The Council also adopted a conclusion on EU action to protect the world’s forests during a ministerial lunch debate. Member states welcomed the Commission’s political guidance on protecting and restoring the world’s forests.
Five other items were discussed separately under “any other business”:
The presidency informed the Council of the issue with long-term funding of the EU minor use of pesticides co-ordination facility (EUMUCF).
The French delegation informed Council about their views on informing consumers about the origin of food products.
The presidency updated Council about the conclusions on the updated EU bioeconomic strategy.
The Spanish and French delegations updated Council about the impact of US tariffs on European agrifood products.
The Czech delegation informed Council of budget flexibility within the European maritime and fisheries fund 2014-2020.
[HCWS42]
(4 years, 9 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
We are all very privileged to be in the final Westminster Hall debate not only of this Session but of this Parliament, as we prepare for a general election. I congratulate my hon. Friend the Member for Waveney (Peter Aldous), with whom I have had many debates on these issues. He has been a champion for the inshore fleet, particularly around East Anglia. Of course, his constituency is also home to the Centre for Environment, Fisheries and Aquaculture Science, which is the national headquarters of our fisheries science agency and has a truly global reputation.
My hon. Friend was also with me on the Fisheries Bill Committee, which he mentioned, so he is familiar with our White Paper and our approach in the Bill. Sadly, that Bill has now fallen with the end of this Parliament. However, I believe that the principles we debated in Committee will be as relevant as ever when Parliament returns and when we leave the European Union. That is why the Government are committed to bringing back a fisheries Bill.
In the original Bill, we set out a number of important approaches. Clause 1 set out a whole series of fisheries objectives, including objectives for fishing sustainably and towards maximum sustainable yield. It was also very clear that we would take control of our exclusive economic zone, which means controlling access out to 200 nautical miles or the median line.
There were also ideas to improve the way in which the discard ban works. For example, a discard disincentive scheme would create a national reserve that fishermen with out-of-quota stock could access, and they would have to pay a penalty so that there was no incentive for them to target vulnerable stocks. In addition, we would have made it easier for them to avoid their current problem of choke species. Our fisheries White Paper was also clear that we would depart from relative stability—the EU sharing arrangements—and move to a new and more scientific sharing arrangement, based on zonal attachment, to which my hon. Friend referred.
We have also been clear that as we depart from relative stability and transition to this new and more scientific approach, under which we will have additional catching opportunities, we will use a different methodology to allocate any new quota coming into the UK. Although we want to keep some stability in the short term by keeping the current fixed quota allocation units for existing quota, additional opportunities will be distributed using different criteria. We are interested in giving additional quota to the inshore fleet—the under-10 pool, as it is currently described. We may tender some quota to existing producer organisations, based on their track record of sustainability. We will also, as I have said, keep some of that quota back for a national reserve.
Into the mix of this quite exciting change for our fisheries policy comes the Renaissance of East Anglia Fisheries initiative. As my hon. Friend said, there are many groups involved, including the local authority, Seafish and a number of local groups. I commend the work he has done in holding the ring and organising many events to promote its objectives. Indeed, I was very pleased to be able to attend the launch of the report.
The historic reason why relative stability does not work for many of our coastal communities, in particular those around East Anglia, is broadly as follows. During the 1950s, 1960s and 1970s, most of our fishing fleet were catching cod in Icelandic waters, we were fishing less in our own waters, and other countries—mainly near neighbours in Europe—were fishing in those UK waters. It was very unlucky for us, in the way that sometimes happens to our country, that just as we were driven out of our Icelandic fishing grounds, where we had historic rights—we were driven right out to 200 nautical miles, following our defeat in the third cod war—we had already given the European Union control of our waters. The sharing arrangements were therefore set in concrete. To compound matters, the catch data that some of our smaller vessels had was not as comprehensive and detailed as the data that other EU countries purported to have. That created an unfairness in the sharing methodology, which, as my hon. Friend pointed out, has continued to this day.
I turn now to the points raised by my hon. Friend and the report. I have to say that he had many asks, but I will try to deal with as many of them as possible. First, there was a proposal to close the inshore pool and to have instead a system based on effort or hours at sea. As my hon. Friend knows, our White Paper was clear that we want to pilot such a system. When it comes to the inshore fleet, there is a case to be made that sometimes an effort-based regime is more appropriate for those smaller inshore vessels, because they have a small amount of quota for a large range of stocks, and a quota system does not work that well for them. There are, however, drawbacks to an effort-based system. A pilot in Ramsgate about seven years ago was not particularly successful, so we need to learn the lessons. Nevertheless, I am open to doing it. A quota system will always be the right approach for larger trawlers and offshore vessels, because an effort-based regime is not the correct approach when it comes to pelagic fish, which have very large stocks.
Secondly, my hon. Friend asked that we require offshore vessels to land their catch in the UK and to restrict their fishing within the 12 nautical miles. He will be aware that we have given notice to quit the London fisheries convention. That expired in July. Therefore, when we leave the European Union, the historic access rights that some foreign vessels have had to fish within the six to 12-mile zone will expire. It is our intention that the 0 to 12-mile zone—our territorial waters—will be predominantly reserved for British vessels, and we will seek to restrict the access of foreign vessels to those waters.
We are also reviewing the economic link. That could include requiring vessels to land a greater proportion of their catch in the UK, so that what they catch is of benefit to communities such as those in my hon. Friend’s constituency. We must, however, take into account certain considerations when adopting such an approach. Last year I visited the Faroes, which required 100% of catch to be landed in the Faroes. However, their fishermen complained that that meant that they were, in effect, captured by processors and did not have other market alternatives. There are, therefore, reasons for allowing some catch to be landed outside the UK, but we are seeking to strengthen the economic link.
A number of the other issues raised by my hon. Friend relate to funding. We will replace the European maritime and fisheries fund. We have also announced a new domestic maritime fund, precisely to support fish processing and harbour and port facilities to help projects such as that under discussion.
The report proposes that the inshore fisheries and conservation authorities and the Marine Management Organisation should be combined into a single force. There is a reason why IFCAs were created. Previously they did not have an enforcement role; they had a management role and the MMO did all the enforcement. There was criticism that individual localities did not get the attention that they felt they deserved, and that is why IFCAs were given an enforcement role. Nevertheless, my hon. Friend is right that there is a case for joining up more closely the efforts of the IFCAs and the MMO. That is why we formed the Joint Maritime Operations Coordination Centre, where everybody—from the coastguard to the MMO and IFCAs—can work together to co-ordinate their assets in a single approach to the issue of enforcement.
Finally, my hon. Friend says that we should manage stocks as a mixed fishery and implement more effective controls for fishing mortality. CEFAS, which is based in Lowestoft, has done a lot of groundbreaking work. Our chief fisheries scientist, Carl O’Brien, has been a leading light in developing some of the methodologies for mixed fisheries analysis, and this is something that the UK is keen to pursue.
In conclusion, I welcome the REAF report and commend my hon. Friend for his work. As for where we go from here, I stand ready to work with him in the future, should we both be returned to this place, to further develop the thinking. When it comes to administrative support for the project, I know that Seafish has been involved and I think it would also be good to engage the local enterprise partnership in the process, to help to support bids. The time will come, however, when REAF will, I presume, want to turn its ideas into a grant bid to one of our maritime funds—either an existing fund or a future one—and at that point my Department and the MMO would stand ready to assess that application. My hon. Friend will be fully aware that I cannot give any cast-iron guarantees that it will get support, but I can guarantee that it will be given full consideration. I thank my hon. Friend again for his work and I commend him for the points he raised.
Before I adjourn this sitting, I would like to thank, I am sure on behalf of all colleagues, the Clerks, the attendants and the security officers outside, the sound and broadcasting staff, who of course are never seen but do an excellent job every time we sit in Westminster Hall, and the Hansard staff for their excellent coverage of our debates. Indeed, I thank all the staff of the House in what has been a very short parliamentary Session following one of the longest parliamentary Sessions in the last 450 years of our history. I thank you all.
I can now say, for the last time in this Parliament, that the sitting stands adjourned.
(4 years, 9 months ago)
Ministerial CorrectionsWe allow eggs to be imported only if they meet our marketing standard, which is currently an EU marketing standard. If in future a third country were to meet that standard, which is set out separately in law, there would need to be a body that attests to the fact. That is a power that the Secretary of State must have in future, as the EU will no longer be able to do that for us.
[Official Report, Second Delegated Legislation Committee, 21 October 2019, c. 10.]
Letter of correction from the Minister of State, Department for Environment, Food and Rural Affairs, the hon. Member for Camborne and Redruth (George Eustice):
Errors have been identified in my response to the debate.
The correct remarks should have been:
We allow eggs that do not meet standards equivalent to EU marketing standards to be imported only if their packs are marked accordingly. If in future a third country were to meet a standard equivalent to the UK standard, which is set out separately in law, there would need to be an authority that attests to the fact. That is a power that the Secretary of State must have in future, as the EU will no longer be able to do that for us.
(4 years, 9 months ago)
Ministerial CorrectionsWe have consulted extensively with the devolved Administrations on the instrument to ensure that the legislation that it amends continues to work while, obviously, respecting the devolution agreements. Most areas covered by the instrument are devolved, with powers transferring to the devolved Ministers. In many cases, the Secretary of State can act on behalf of the devolved Administrations should they give their consent. In one or two areas relating to enforcement, Wales has chosen to introduce its own statutory instruments, for example in relation to the administration of an apiculture—beekeeping—scheme and some of the design elements of a school milk scheme.
[Official Report, Twenty-fourth Delegated Legislation Committee, 8 October 2019, c. 3.]
Letter of correction from the Minister of State, Department for Environment, Food and Rural Affairs, the hon. Member for Camborne and Redruth (George Eustice):
Errors have been identified in my opening speech.
The correct remarks should have been:
We have consulted extensively with the devolved Administrations on the instrument to ensure that the legislation that it amends continues to work while, obviously, respecting the devolution agreements. Most areas covered by the instrument are devolved, with powers transferring to the devolved Ministers. In many cases, the Secretary of State can act on behalf of the devolved Administrations should they give their consent. In one or two areas, Wales has chosen not to have such a mechanism in the legislation, for example in relation to the administration of an apiculture—beekeeping—scheme and legislative powers concerning some of the design elements of a school milk scheme.
(4 years, 9 months ago)
Commons ChamberI thought for a moment that for the first time in six years we might not get on to fisheries and agriculture at DEFRA orals. May I take this opportunity, Mr Speaker, along with others, to thank you for your chairmanship and stewardship of these occasions and wish you well for the future? May I also record a tribute to Reverend Rose, who is also leaving us? She not only presided over my marriage in St Mary Undercroft but baptised my daughter. Many Members have benefited from her pastoral support and advice.
I had a meeting with officials yesterday to discuss the issue of cod and the EU-Norway negotiations. Those negotiations will take place during November. I remain Fisheries Minister during the election period and will continue to monitor events. The right hon. Gentleman is right that the December Fisheries Council that formally adopts these proposals will be about three days after the general election. I hope still to be in place and to go there, but if I am not, I am sure that whoever my successor is will have a steep and enjoyable learning curve in coming to terms with the complexities of the December negotiations.
I completely disagree with the hon. Gentleman. The Scottish fishing industry wants to leave the CFP and take advantage of the sea of opportunity that we will have when we become an independent coastal state. It is his party that is standing against the interests of the Scottish fishing industry by wanting to remain in the European Union.
Mr Speaker, our careers have been somewhat in parallel. I had a slight interregnum in the middle of your speakership, but I am pleased to be here today, to top and tail it. We have remained good friends throughout.
The Government committed to keeping the current level of farm spending until the end of this Parliament, which will be in the next couple of days. The Labour party will commit to keep that level of spending and, indeed, even spending more under the new system, which will be expensive to introduce. Will the Government make that commitment?
The hon. Gentleman is right; the Government are committed to keep spending exactly the same until the end of this Parliament. He will have to wait to see our manifesto to find out what will happen in the next Parliament, but I will simply say this. It is implicit in the Agriculture Bill that there will be a transition over a period of seven years, during which we will roll out the new policy, and we have already committed to fund the objectives of the Agriculture Bill.
(4 years, 9 months ago)
Ministerial CorrectionsThere was discussion with the devolved Administrations earlier this year on exactly which matters were reserved and which devolved. These are the matters we have decided and agreed are reserved, which is why we made this instrument.
[Official Report, Second Delegated Legislation Committee, 28 October 2019, c. 6-7.]
Letter of correction from the Minister of State, Department for Environment, Food and Rural Affairs, the hon. Member for Camborne and Redruth (George Eustice):
An error has been identified in my closing remarks.
The correct wording should have been:
There was discussion with the devolved Administrations earlier this year on exactly which matters were reserved and which devolved. These are the matters we have decided are reserved, which is why we made this instrument.