Agriculture Bill (Fourteenth sitting)

Debate between George Eustice and Colin Clark

Committee Debate: 14th sitting: House of Commons
Tuesday 20th November 2018 Public Bill Committees

[George Eustice]

I am grateful for this opportunity to set out our position on the funding of agriculture. As hon. Members will know, we have a manifesto commitment to keep the cash total spent on agriculture for the UK at exactly the same level until 2022—the end of this Parliament. That commitment goes further than the current spending review period. Not every other Department has that, but we made that commitment, because we recognise the importance of giving farmers clarity and certainty that the Government intend to still support them financially during this transition from the old system to the new.

Our manifesto also made a commitment that after 2022 we would roll out a new agri-environment policy, which would be funded. The Bill is explicit that there will be a transition period of seven years until 2028, as we gradually wind down the single farm payment—or basic payment scheme. It is implicit in the Bill and our manifesto commitment that there will be a funded agriculture policy after 2022. We have not put a precise figure on that, but we have done more than we do for most other Departments, which is to give a guarantee until 2022.

As the hon. Member for Edinburgh North and Leith will be aware, the allocations for Scotland have been a contentious issue as a result of the convergence uplift and debates around that. For that reason, we have asked Lord Bew to lead an independent review of intra-UK allocations. That review is now underway. The outcome of that review will inform allocations for 2020 onwards.

The answer to this particular new clause is that this work is already being done and it is being led by the review that Lord Bew is undertaking, which will inform intra-UK allocations after 2020. That will enable us to take account, for instance, of severely disadvantaged area and to take account of the emerging policies that we have in different parts of the UK, but also to have regard for the fact that probably every part of the UK will want to have a transition from the old system of the basic payment scheme to the new, so there would need to be some understanding of how much money people will need as they move in transition from the old scheme to the new.

The hon. Member for Darlington made points about the ability of the Scottish Government to make payments. We covered that in an earlier debate, but to clarify, we introduced new clause 3 to the Bill in Committee, as well as subsequent equivalent clauses for the schedule for Wales and the schedule for Northern Ireland. The purpose of new clause 3 and those two connected provisions for Wales and Northern Ireland was to give the Government the power to set financial ceilings, so that the legacy schemes that come across through retained EU law could still be paid. Unless the power exists to set financial ceilings, the existing financial ceilings that underpin the payment legislation in the EU scheme will fall away. Therefore, unless the Scottish Government took action to introduce a clause such as new clause 3, they would not have legal authority to make payments in 2020.

[Colin Clark]

May I seek clarification? Have the Scottish Government approached the Department to introduce a new clause 3, and is the Minister aware that NFU Scotland is supportive of a new clause 3 for Scotland?

[George Eustice]

Yes, I am aware that NFU Scotland has now said that it believes that, as a minimum, there should be something like new clause 3. I discussed the issue with Scottish Ministers yesterday at the meeting that we had in Wales, where it came up. We established that it is relatively easy to rectify. This is a single clause. We could put it in a schedule to this Bill if it were the wish of the Scottish Government for us to do so. We could add a schedule to the Bill that replicated new clause 3 for Scotland but did nothing else, and we could do that at later stages of the Bill, or of course it is open to the Scottish Government to add new clause 3 to an alternative piece of primary legislation, going through the Scottish Parliament. The issue is not complicated to fix; it does not necessarily need a fully worked-up, fully detailed Bill, but they do, as a minimum, need something equivalent to new clause 3. I think that they understand that now, and they are considering whether it is best to do it as a schedule to our Bill or as an addition to one of their own Bills.

I hope that I have been able to explain that we have a review under way that is looking at intra-UK allocations, that is designed to address the needs of every part of our United Kingdom as we consider funding the provisions in this Bill and provisions that other, devolved Administrations might bring forward in the future.

Agriculture Bill (Seventh sitting)

Debate between George Eustice and Colin Clark

Thursday 1st November 2018 Public Bill Committees

[George Eustice]

The amendment deals with an incredibly important issue. As the hon. Member for Bristol East said, if we want to feed a growing population and tackle issues such as climate change, doing all we can to bear down on and reduce food waste is essential. I remember being at an OECD event where there was discussion around some of the African countries that have big problems with a lack of chill chain distribution, which can really affect food waste in their countries. It is a very important issue and I am going to explain what the Government are doing about it, but I hope that the shadow Minister will understand that I do not think the Bill is the right place to address it.

The UK is already leading the way in the EU and internationally on food waste. Food waste in the UK reduced by 14% per person between 2007 and 2015. We have seen a 19% reduction per person in the amount of food thrown away that could have been eaten. There have been some important changes. Food labels used to give the advice “freeze on day of purchase”, which made no sense and meant that people threw away food that could have been frozen instead. There has been a growing and better understanding of the difference between use by dates and best before dates, which means that people are willing to eat food that goes past its best before date because it is still perfectly good to eat.

At the Conservative conference, the Secretary of State announced a new pilot scheme aimed at reducing food waste further from retail and manufacturing, backed by a £15-million fund. The scheme will be developed over the coming months in collaboration with businesses and charities and will launch in 2019-20.

As hon. Members will know, the Waste and Resources Action Programme works closely with DEFRA. The Institute of Grocery Distribution also does some very good work in this area. Working with them, we have published a food waste reduction road map, which lays out ambitious milestones for food waste measurement that will be vital in achieving national policy objectives and targets on food waste reduction, including Courtauld 2025 and sustainable development goal 12.3. The Courtauld commitment, launched by WRAP and supported by DEFRA in 2016, is a commitment out to 2025 to see an ambitious reduction of 20% per capita in food and drink waste in the UK. The target already exists—it was set in 2016 by WRAP—and, as I have explained, we have made good progress already in the last 10 years.

Because we take the issue so seriously, further initiatives will be included in DEFRA’s forthcoming resources and waste strategy, which will be published later this year. The hon. Member for Stroud asked whether the food strategy will cover this issue. I can reassure him that before we get to the publication of the food strategy, we will have the publication of the resources and waste strategy, which will include a great deal of consideration of the issue of food waste.

Apart from the fact that the amendment is unnecessary because these important issues are being picked up through other Government initiatives, as my right hon. Friend the Member for Scarborough and Whitby pointed out, there is a problem in requiring the recipients of financial assistance to take steps to avoid food waste and the waste of food products. Food waste is often out of the hands of farmers. In evidence, George Dunn of the Tenant Farmers Association gave an example of a lettuce grower who had grown a crop in good faith, had cut the crop and was ready to sell it, and then the purchaser changed their mind at the last minute. He was left with a perishable good for which he had no market.

[Colin Clark (Gordon) (Con)]

The Minister reminded me of my carrot production—we grow them. It is not a carrot factory; we do not make them in a machine. If carrots get carrot fly or another disease, they have to be ploughed back in. If someone grows broccoli, they will grow various stages of broccoli, and some of those stages of broccoli will have to be ploughed back in. That is a decision the farmer makes—it is not because the supermarket rejects it. The food industry is a very advanced industry and for 30 years, we have been making use of the by-products. Putting this point in the Bill underestimates the fact that, particularly in vegetable farming, we grow a whole programme of vegetables and we may plough some back in. It is a by-product; it is not waste.

[George Eustice]

My hon. Friend makes an important point. I was going to turn to waste in the primary production area later.

To finish the point about contracts and fair dealing, we will deal with that at a later stage in the Bill and debate it. We will try to address some of the problems in the supply chain where perfectly good food goes to waste because it has the wrong label or a purchaser has changed their mind at the eleventh hour. There is a limit to what farmers can do to control such food waste in the supply chain. That leaves us with the question: where could they control waste? The answer, of course, is at the primary production stage.

As my hon. Friend the Member for Gordon pointed out, if a farmer grows carrots and has the great misfortune to get carrot fly, there is already quite a financial penalty without then having somebody come along and say, “Now we are going to take all of your financial assistance away as well, because you have had a problem with your crop and there is some waste.”

As some Members know, I worked in the farming industry for 10 years before going into politics. We used to grow winter cauliflowers in Cornwall. We used to pray for frost in Kent to kill the cauliflowers there and hope that we did not get frost in Cornwall. However, there were times when we had severe weather in Cornwall that devastated the crop, and we would have to rotavate the cauliflowers into the ground and plough them in. The financial penalty was considerable. I can assure hon. Members we never wanted that to happen, but occasionally it does.

Nevertheless, we have commissioned WRAP to do a study of waste rates in primary production. It will report on that later this year. The area is complex, as I said, because of the weather, pests and disease, which tend to be the main contributors to the waste, but WRAP is looking into that.

I hope I have reassured the hon. Member for Stroud that the Government take the issue incredibly seriously. We have made some progress in the past decade. We have targets already out until 2025, and we will publish an updated resources and waste strategy that will include food waste later this year.

--- Later in debate ---

[George Eustice]

Scotland has one of three options: it can bring forward its own primary legislation or it could add a schedule. Its content could range from something similar to what Wales has done, which is a full suite of powers, or it could take the approach of Northern Ireland, which is broadly the powers to roll-over the existing scheme and make modifications but not to make changes beyond that. Finally, it could pass legislation or ask us to add a schedule that gave it the power to continue to make payments but nothing else—not even to modify. There is a range of options, but Scotland needs to do something and have primary legislation or its power to make payments will fall down at the end of 2020.

[Colin Clark]

To be absolutely clear, is there any legal framework in the EU (Withdrawal) Act that would cover Scotland to carry on make payments beyond a date? Would there have to be primary legislation?

[George Eustice]

Yes, that is correct. We may be straying into an issue that I will explain in more detail later under Government new clause 3. Although the basic payment scheme regulations come across through retained EU law, there is a natural sunset clause on the financial ceiling—the payment powers underneath it. Unless an amendment is put down to extend the financial ceiling, that power falls away. That is not addressed in the EU (Withdrawal) Act. At the very least, a single clause is needed to create a financial ceiling beyond 2020.

Agriculture Bill (Fourth sitting)

Debate between George Eustice and Colin Clark

Thursday 25th October 2018 Public Bill Committees

[Colin Clark]

Q Do you perceive a risk of divergence? Is that not fundamentally the point, whether it is on the frameworks or on the producer organisations?

George Burgess: If we look at the producer organisation provisions that we have here, and at the amendments that we have proposed, none of them would create that risk any more than it exists at the moment.

Jonnie Hall: I agree with Mr Burgess.

[George Eustice]

Q Mr Clarke, the Government are under pressure from the other Mr Clark around the table, my hon. Friend the Member for Gordon, and from my hon. Friend the Member for Brecon and Radnorshire, to give consideration to an amendment that would enable some transfers of levy payments between levy bodies, but only with the agreement of the relevant Governments or of the Secretary of State and the Scottish and Welsh Ministers. It is a bit problematic in the absence of a legislative consent motion, because it would explicitly affect something that Scottish Ministers could do. If that amendment were to get some support, should the Scottish Government bank that advantage and grant the LCM on the Bill?

Alan Clarke: I made the point earlier, when I was asked whether there was a particular vehicle that could be used, that I thought the amendment was a really good vehicle, because it is timely and it is opportune. The reality is that we need a solution.

We have shown that the three organisations can work really well together, but we are not maximising our potential. If we can get the full £1.5 million back to Scotland, and the same value back to Wales, using a mechanism that the three organisations would agree, we will have a real opportunity. If that amendment were made to the Bill, and a process was put in place to make it happen, that could happen very quickly. That would be a real benefit, particularly to us in Scotland, and to Wales. We can show evidence of what we have done working together over the last 18 months, and, as I said earlier, we would continue to do that.

George Burgess: The Scottish Government have been seeking an amendment to deal with the red meat levy issue, as Mr Clarke said earlier, and have been asking for the Agriculture Bill to be used for that. I prepared a detailed policy paper on the subject more than a year ago and I have been discussing it with DEFRA officials since.

We do not yet have a commitment from the United Kingdom Government to use the Bill as a vehicle to deal with the red meat levy, but we hope that that commitment will be forthcoming. I have heard that two amendments deal with the subject, and we will look at those with great interest. It is certainly something that the Scottish Government have been seeking.

Jonnie Hall: May I add the weight of NFU Scotland to that, to support the Scottish Government and Quality Meat Scotland? The Bill is a clear opportunity to resolve an issue that has been ongoing for several years. We have waited for the right legislative vehicle. This is a clear moment to get the right amendment in the Bill and make it happen.

Oral Answers to Questions

Debate between George Eustice and Colin Clark

Thursday 7th December 2017 Commons Chamber

[George Eustice]

Such discussions are part of our planning. We want to put in place a close new partnership with our European partners, and trying to get an agreement on mutual recognition of some of these qualifications would be on that agenda.

[Colin Clark (Gordon) (Con)]

When we leave the EU, the UK will be able to set its own farm support policy. What assessment has the Secretary of State made of whether, if the EU continues farm support, the UK will have to do so, because otherwise British farming could be severely disadvantaged?

Oral Answers to Questions

Debate between George Eustice and Colin Clark

Thursday 20th July 2017 Commons Chamber

[George Eustice]

Some of these matters are obviously already devolved. I think that everybody recognises that there also needs to be some kind of UK framework to protect the integrity of the UK single market. On leaving the EU, we will take control of our agriculture policy, and there is an opportunity to give all the devolved Administrations more control than they currently enjoy to be able to do that while protecting the integrity of the single market.

[Colin Clark (Gordon) (Con)]

Does my hon. Friend agree that after leaving the EU we must have a risk-based regulatory system based on sound science to ensure that UK farmers are world leaders?

[George Eustice]

Yes; my hon. Friend is absolutely right. We believe that there should be careful risk-based assessment when it comes to regulation. We also have a great opportunity to change the culture of regulation. The reality of the common agricultural policy, as it exists now, is that there are far too many complex rules against which farmers are judged. We have an opportunity to simplify that and have a much more effective system going forward.