Sewage Pollution

Debate between George Eustice and Robert Goodwill

Tuesday 6th September 2022 Commons Chamber

[Mr Speaker]

We now come to the Chair of the Environment, Food and Rural Affairs Committee, Sir Robert Goodwill.

[Sir Robert Goodwill (Scarborough and Whitby) (Con)]

Before privatisation, every single gallon of Scarborough sewage was pumped into the sea untreated. Since privatisation, we have seen investment in the Burniston water treatment works, which has been upgraded with ultraviolet treatment to increase its capacity, and in a 4 million litre stormwater tank at the end of Marine Drive that captures the majority of heavy storms. Would the Secretary of State agree that the bathing water off the Yorkshire coast has never been cleaner, and that while there is more work to be done, particularly on some of our inland waterways, private sector investment is the way to deliver that?

[George Eustice]

My right hon. Friend is absolutely right. We have prioritised investments through the new strategic policy statement for Ofwat, which means that this issue is being prioritised for the first time ever. He is also right that private capital has helped to raise the money to lead to infrastructure improvements. Things were not perfect in the days of nationalisation. Indeed, we did not even understand the scale of the problem because there was not the monitoring in place, which we have now required, to recognise it.

Government Food Strategy

Debate between George Eustice and Robert Goodwill

Monday 13th June 2022 Commons Chamber

[Sir Robert Goodwill (Scarborough and Whitby) (Con)]

I welcome the direction in which the strategy takes us, but will the Secretary of State comment on what I might suggest are a couple of omissions? First, he rightly says that, in terms of the food that we can produce, we produce about three quarters of what we consume. However, in recent years, we have seen a dramatic reduction in the amount of vegetable oil we produce, making us more reliant on sunflower oil and rapeseed oil from Ukraine and on unsustainable palm oil from the far east. What can we do to address that? Secondly, on the location of photovoltaic installations, more regard seems to be given to the proximity of an electricity substation than to the quality of the land on which they are installed. Could the Secretary of State perhaps look at that issue again?

[George Eustice]

First, may I take this opportunity —my first at the Dispatch Box—to welcome my right hon. Friend to his new post on the Environment, Food and Rural Affairs Committee. He was a predecessor of mine as a Minister for Agriculture, Fisheries and Food, and I know that he will bring considerable expertise to his new job.

On the two points that my right hon. Friend raised, planning guidance already sets out a clear presumption against building solar farms on the best and most versatile agricultural land, which is classed as grade 3b and above. I am aware that there have recently been instances where BMV land has been built on, and we are discussing that with Government colleagues.

On the second issue that my right hon. Friend raised, around our dependence on imported sunflower and rapeseed oil, the rapeseed crop has declined in recent years due to the withdrawal of the use of neonicotinoids. It has recovered in the last year, and prices are strong, but the ultimate solution probably lies in the Genetic Technology (Precision Breeding) Bill, which will be introduced in the House later this week and bring forward our ability to tackle some of these agronomic challenges.

UK Shellfish Exports

Debate between George Eustice and Robert Goodwill

Monday 8th February 2021 Commons Chamber

[George Eustice]

The reality of the trade and co-operation agreement is that its fisheries section delivered a 25% uplift in fishing opportunities, a rebalancing of the sharing arrangements and an abandonment of relative stability as the quid pro quo for granting the EU continued access to our waters for five and a half years. We are free to review it after that. We also have the freedom to set our own regulations in this area. But we recognise that there have been teething problems. That is why the Government announced a new £23 million fisheries disruption fund to support those businesses that struggled with the paperwork in the initial weeks.

[Mr Robert Goodwill (Scarborough and Whitby) (Con)]

Fishermen who land scallops into Scarborough and Whitby have been told by their wholesalers that there is no market for their fish, so they are currently tied up, despite approaching peak season, which ends at the end of April. Is the situation with regards to the European Commission—this flies in the face of the advice it gave in September 2019—an example of its vindictiveness, or its incompetence? Will the Secretary of State write to the chair of the European Parliament Fisheries Committee, whose job it is to hold the Commission to account?

[George Eustice]

My right hon. Friend makes an important and a good suggestion, so I will indeed write to the chair of the fisheries committee to ensure that they are apprised of the discussions that we are also having with the European Commission. I am happy to do that.

My right hon. Friend invites me to comment on why the EU might have done this. I am afraid I am not going to be drawn on that, since I do not know. We very much hope that on reflection the European Union will look at this again and realise that the judgment it has made on the legal position is wrong and that it can adjust it at this late stage.

Fisheries Bill [Lords]

Debate between George Eustice and Robert Goodwill

Ways and Means resolution & 2nd reading & 2nd reading: House of Commons & Money resolution & Money resolution: House of Commons & Programme motion & Programme motion: House of Commons & Ways and Means resolution: House of Commons
Tuesday 1st September 2020 Commons Chamber

[George Eustice]

My hon. Friend is a long-time expert in fisheries policy, with direct experience of all the difficulties and shortcomings of the CFP, and she makes an important point. We have a particular problem, due to the unfair sharing arrangements under relative stability, of what is called choke species affecting our fleet, where there simply is not enough quota for fishermen to even be able to land their by-catch. As she says, the lack of quota for choke species causes a risk that the fleet has to tie up because they simply do not have the quota available to them. We set out in our White Paper a fairer sharing arrangement, so that there will be fewer choke species, but also an approach to managing discards that will enable us to charge a disincentive charge on fishermen who land out-of-quota stock, rather than force them to discard it at sea in a very wasteful way—so we remove the incentive to target vulnerable species but give fishermen left in a difficult position an option that they can exercise.

[Mr Robert Goodwill (Scarborough and Whitby) (Con)]

Will the Bill allow us to give grant aid to fishermen to have more selective fishing tackle, to enable them to not catch the choke species that cause these problems?

[George Eustice]

My right hon. Friend makes a very important point. I know that he was involved in crafting some of these measures during his time in DEFRA, and I can confirm that those measures remain in place. We have powers in the Bill to make grant payments to fishermen, in particular to support them in fishing in a more sustainable way and investing in the gear that enables them to do that. I was about to come on to that point.

As we plan for our future, we need to recognise the immense value of fishing to our local communities, and we want to ensure that our own industry is able to benefit from the new opportunities that will arise. The powers in clause 35 mean that we can set up new funding schemes and grants to support the development of port infrastructure, the development of our fishing industry and its capacity to manage an increased catch and to manage those sustainability issues.

Agriculture Bill (Second sitting)

Debate between George Eustice and Robert Goodwill

Committee stage & Committee Debate: 2nd sitting: House of Commons
Tuesday 11th February 2020 Public Bill Committees

[Mr Goodwill]

Q I am trying to get my head around the deal in payments with respect to an early retirement scheme. When answering an earlier question, you talked about the way it could affect the value of the land. Could there be a situation in which a tenant takes the money and runs, and then the landowner is looking for a new tenant but without the agricultural support? It is difficult to attract one. How will the environment be managed if the payments that would have been forthcoming for the environmental land management schemes were not there? What would happen in practice in a situation where a tenant takes early retirement and takes the money, and then expects the landlord to pick up the pieces?

Jake Fiennes: There could be a technical mechanism relating to tenant’s dilapidations from the landlord’s perspective. The landlord could seek to recoup that if he was going to devalue the land by taking those future payments away. There is a technical mechanism that allows that to happen. That strengthens the landlord’s ability to retain that land to rent to others or to new entrants. It is important that there is some kind of mechanism within the Bill for that. Potentially there would be land abandonment because it has no value, or we would see deep intensification of land areas that have no support mechanism. Then we are trying to deliver environmental land management on a landscape scale, and we have these blackspots in between with no support mechanism. That would be my concern.

[George Eustice]

Q On that point: do we want land rents to stay as high as they are? Would it not potentially be beneficial for landlords to have to fight one another to attract tenants on to their land?

Jake Fiennes: Land rents are artificially high based on the support mechanism. We will see that slowly diminish. Commodity prices will periodically affect land prices. The horticultural sector does not rely on support at all. The average age of the British farmer is 62: land rents are overly high and they will be reduced, thereby suddenly allowing new entrants to come in who will be more open to environmental land management and public goods proposals. We will see a wholesale change. We are expecting a recession in agriculture through this transition period, for all the reasons being discussed today. Where there is change there is opportunity, and the opportunities are there for another generation to move in and manage land environmentally, economically and sustainably.

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[Mr Goodwill]

Q Chapter 2, clause 8 deals with the possible extension of the period. I may not understand it particularly well, but it does not make it clear whether, if there is an extension to the seven-year period, that would pause the transition from BPS to ELMS, or whether that would just continue, but at the end of the seven years there would be an extra year or two under the full ELMS system. If there was an extension, at the same time, could that be coupled with a freeze in the transition for a number of reasons, including that the ELMS was not being taken up as quickly?

George Dunn: Yes, and I think that is what the Bill intends. My reading of the Bill would suggest that that is what would happen under those circumstances. To go back to the previous question, if money was taken out of the system that was not able to be spent through the new arrangements, that would have to be paid back, in our view.

[George Eustice]

Q A previous witness said that if a tenant farmer exercised an option that we set out under clause 13 to take a number of years payment in lieu as a lump sum, under the way tenancy agreements tend to be drafted, the landlord would say that was a dilapidation and would take compensation off the tenant farmer. That seemed a rather extraordinary extension of the conventional interpretation of dilapidation. What would your respective views on that be?

George Dunn: My view is that the answer you were given was nonsense. There would have to be a very specific clause in a tenancy agreement that provided for the circumstances that you are describing—for a landlord to be able to dilapidate a tenant for taking away the payment, which is rightfully theirs anyway, because it is their entitlement to do with that what they will.

We are actually quite excited by the provisions on the lump sum and the extent to which that could generate some really good restructuring within the sector. I do not think there will be an impact on land values as was suggested, because land values are driven by much more than the agricultural return, which is about 2% of the average land value, when you look at how agriculture operates. There might be an impact on rent, which could be a good thing for the sector in terms of productivity and margin and efficiency, but we think that the lump sum elements are certainly something worth pursuing.

Judicaelle Hammond: I think we are a little bit more cautious without more detail. We look forward to the consultation that will happen on the secondary legislation. It is hard to say how it would work and whether there would be any unintended consequences without more detail. The same thing is true of the lump sum. We can see opportunities, both for retirement and investment in the farm, but at the moment, we also see that it could have all sorts of unforeseen consequences. We really do need to have a thought-through view of how the system would work.

Animal Health and Genetically Modified Organisms (Amendment) (EU Exit) Regulations 2019

Debate between George Eustice and Robert Goodwill

Monday 7th October 2019 General Committees

[Mr Robert Goodwill (Scarborough and Whitby) (Con)]

Does this instrument have any bearing on the issue of carcass splitting and the specified risk material, namely spinal cord, that needs to be removed from certain lambs? I think both the Government and many sheep farmers wish to move from a system of aging the sheep through their dentition to one of using a date in the calendar.

[George Eustice]

My right hon. Friend mentions a request that, as a former incumbent of my post, he will know the industry has been making for some time. It is under consideration, and is something that we progressed with the European Union during my previous time as Minister. I do not think that this particular change addresses that topic; it is much more about the use of certain animal by-products, which are not category 1, in fertilisers or soil improvers. This amendment covers a much narrower issue.

The instrument amends the provisions regarding harmonisation of the lists of approved or registered establishments, plants and operators and the traceability of certain animal by-products and derived products. The Commission introduced new legislation to create a transition period for those to come into force, and those lists were due to be altered by the Trade Control and Expert System—TRACES—an IT system run by the EU. This instrument simply changes those provisions to give us the flexibility to use either TRACES or our own, new import system, depending on the scenario we end up in.

The second change amends provisions to permit the export of products containing processed animal protein derived from ruminants and non-ruminants. In June 2018, the European Food Safety Authority updated the quantitative assessment of the bovine spongiform encephalopathy risk posed by processed animal proteins, and concluded that the total BSE infectivity posed by processed animal protein was a quarter of that estimated in 2011. Following the opinion delivered by EFSA related to processed animal protein, it was felt appropriate to include organic fertilisers or soil improvers containing processed animal proteins derived from ruminants in the derogation laid down to permit export, and the EU regulation on transmissible spongiform encephalopathies was amended accordingly.

The third change makes technical changes to the provisions as regards the imports of gelatine, flavouring innards and rendered fats. The amendment adds Egypt to the list of third countries from which gelatine may be imported into the European Union; aligns the list of third countries eligible for the import of flavouring innards with a reference to the list of third countries authorised for the import of wild game meat for human consumption; and allows imports of rendered fats to be used for the production of renewable fuels using a method that has been assessed by EFSA.

In addition, regulation 5 of the instrument corrects minor inconsistencies in the language used in an earlier EU exit instrument, the Genetically Modified Organisms (Amendment) (EU Exit) Regulations 2019, as identified in 50th report of the Joint Committee on Statutory Instruments. To exemplify the change in language recommended by that Committee, where the word “countries” was used in some references, it has been amended to “constituent nations”, and where the word “notification” was used, it has been amended to “consent”.

Aquaculture

Debate between George Eustice and Robert Goodwill

Wednesday 17th July 2019 Westminster Hall

[George Eustice (Camborne and Redruth) (Con)]

There are huge economic opportunities in aquaculture—indeed, Scottish salmon is one of our biggest food exports—but, as my right hon. Friend says, there are some environmental consequences. One of those is the plight of the wrasse, a species of fish found in Cornish waters. Is he aware that Scottish vessels go to Cornwall, kidnap live wrasse from Cornish waters and take them to the North sea to eat sea lice on their farms, which has a big impact on wrasse? Will he ask his officials to look at the impact on and the plight of the Cornish wrasse?

[Mr Goodwill]

I pay tribute to the work that my hon. Friend did, as my predecessor, in getting to grips with these issues. He is a hard act to follow. I was aware of the wrasse being kidnapped and taken to harvest the lice, and of the impact that has on the ecology in the south-west of England.

Oral Answers to Questions

Debate between George Eustice and Robert Goodwill

Thursday 20th June 2019 Commons Chamber

[George Eustice (Camborne and Redruth) (Con)]

9. What plans his Department has to support (a) rare and (b) native breeds in future agriculture policy.

[The Minister for Agriculture, Fisheries and Food (Mr Robert Goodwill)]

Our rare and native breeds are an important genetic resource. There are several purposes under clauses 1 and 2 of the Agriculture Bill for which financial assistance could be provided to support our genetic heritage.

[George Eustice]

I declare my interest in that my family are long-standing breeders of both the British Lop pig and pedigree South Devon cattle, but genetic diversity is critical to maintaining resilience in our livestock sectors, and protecting genetic resources is a primary responsibility DEFRA. Will the Minister therefore agree to convene a meeting at DEFRA of representatives of our native and rare breeds to discuss what support would be appropriate for them under future policy?

[Mr Goodwill]

I was already aware of my hon. Friend’s considerable interest in this policy area. I am pleased to tell him that a workshop with breed societies will be taking place in London on 12 September to look at the issues that he has in mind. Later today I will be visiting the Lincolnshire show, where I hope to see some of the rare breeds that are bound to be there.

Draft Common Fisheries Policy (Amendment etc.) (EU Exit) Regulations 2019 Draft Common Fisheries Policy and Aquaculture (Amendment etc.) (EU Exit) Regulations 2019 Draft Common Fisheries Policy (Amendment etc.) (EU Exit) (No. 2) Regulations 2019

Debate between George Eustice and Robert Goodwill

Monday 25th March 2019 General Committees

[Mr Goodwill]

As far as I am aware, this is one of the issues that needs to be dealt with during the implementation period.

[George Eustice]

Does my right hon. Friend agree that, with other countries outside the European Union, such as Norway, we have in place framework agreements that set out our approach to joint fisheries management; that those agreements include provisions on data sharing; that the European Union has created a mandate for there to be a continuity agreement for the remainder of this year, which would cover such issues; and, indeed, that the Department already has advance plans for a future framework agreement to cover such matters?

[Mr Goodwill]

I thank my hon. Friend—having had five years in this job, he is well aware of the intricacies of some of the issues. However, the point that I am making is clear: the Prime Minister negotiated a 20-month implementation period to allow this and other measures to be agreed.

The hon. Member for Motherwell and Wishaw, who speaks for the SNP, said that we want to see continuity. That is precisely what this measure does: it ensures continuity. The measures agreed at the Fisheries Council before Christmas will continue past the date on which we leave the European Union. It has always been clear that that will be the case. I have to say to her, however, that members of the Scottish fishing industry—those to whom I spoke, anyway—are fully behind Brexit. They relish the opportunity we have to be an independent coastal state and to exploit the resource available to us.

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[Mr Goodwill]

I thank the hon. Gentleman for the question; Hartlepool is an important port just up the coast from my constituency. As I said, only three authorisations are in place for UK vessels. We are proposing to review that, with a view to withdrawing them. I am confident that we may well be in a position to be ahead of the EU in getting that ban in place.

[George Eustice]

Does the Minister agree that the UK has led the calls in the EU for that change? Far from responding and reacting to what the EU is doing, we will implement, through the changes he outlines, a ban on the majority of pulse trawling in our waters far sooner than the European Union.

[Mr Goodwill]

My hon. Friend is absolutely right—I can think of several instances where the UK has wanted to move ahead on environmental or animal welfare legislation. I am digressing slightly, but we are looking at dry sow stalls, battery cage legislation and veal crates. The UK moved ahead of, and faster than, the rest of the EU—it was not moving at the same speed as us. Although people say that leaving the EU will result in a degradation of our environmental and animal welfare legislation, that has no regard to our track record as a nation. Both parties have been keen to promote those topics and to move faster than the rest, so leaving the European Union will give us the opportunity to do that, rather than dragging behind.

Agriculture Bill (Fourteenth sitting)

Debate between George Eustice and Robert Goodwill

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

[George Eustice]

I hope I will be able to persuade the shadow Minister that he does not need to press the new clause to a Division. We rehearsed in an earlier discussion on clause 1 the fact that the Government are actively looking at holistic schemes to support and incentivise what could be called integrated pest management. We are considering whether we can reduce our reliance on synthetic chemistry by using more natural predators and different agronomic approaches and being willing for the first time to incentivise farmers financially to do that.

One of the things we are looking at is an incentivised integrated pest management scheme to advance this policy agenda. We also set out in our 25-year environment plan the idea of moving forward and embracing integrated pest management more than we have done previously. The new clause deals with publishing reports and measuring impacts—I have said previously that DEFRA needs no encouragement to produce reports through statutory requirements; we love reports. As I explained, I regularly have to read and sign off reports and I sometimes question whether anyone else is reading them. For some reason, many reports seems to congregate around June, so during that month my box is weighed down with annual reports of one sort or another.

I will share with the hon. Gentleman some of the reports that we have received. I have a lot of reading here that he can take away as a memento of this Committee. The UK Expert Committee on Pesticides—the ECP—which gives us advice on emergency authorisations and on some of the tricky chemical issues. It is a standing advisory committee to the Chemicals Regulation Directorate. I have with me its annual report for 2017, all 22 pages of it. The Expert Committee on Pesticide Residues in Food produces a separate annual report, on top of the one by the Expert Committee on Pesticides, so we have two expert committees in the pesticides space, one on residues and one on broader environmental impacts, both of which produce a report. The report on pesticide residues lists all the findings and surveillance on residues on a wide range of imported products and products produced domestically. It runs to 48 pages and is an annual report.

If that is not enough for the hon. Gentleman, the pesticide usage survey report, is produced by the National Statistics Office and focuses on all sorts of different icrops. I have with me the 2016 report for arable crops, all 92 pages of it, with lots of tables demonstrating exactly what is produced. That key survey already monitors the use of pesticide-active substances on each crop.

[Mr Goodwill]

In addition to that, does my hon. Friend the Minister recognise that farm assurance schemes carry out detailed scrutiny of the records kept by farmers on the pesticides that they use within the rules?

[George Eustice]

My right hon. Friend is correct: schemes such as the red tractor assurance scheme have additional checks and enforcement to ensure that there is nothing out of order, and on top of that they generally require MOTs, for instance, for sprayer equipment.

The pesticide usage survey covers the frequency of application, which picks up the measures in subsection (1)(c) of the new clause, and the area treated, which covers subsection (2)(d), as well as the weight of active substance. It also includes figures on some of the alternatives to chemicals, such as the use of viruses that can target insect pests. In addition, the National Poisons Information Service collects and considers reports of possible harm to people, which covers subsection (2)(b). Results are not published, but they are reported to DEFRA and other interested Departments, as well as to the UK Expert Committee on Pesticides.

Finally, the Wildlife Incident Investigation Scheme looks at reported incidents of possible harm to wildlife, which I think is what subsection (2)(a) of the new clause is trying to get at. Results of the Wildlife Incident Investigation Scheme are published on the Health and Safety Executive website, and the Environment Agency also monitors levels of pesticides in water.

I understand that there are very good intentions behind the new clause, but I hope that I can reassure the hon. Member for Stroud that we have a plethora of reports that cover pesticide use and pesticide issues in great detail. I hope he will withdraw his new clause at this stage, take some time to read the reports, which I would be happy to leave with him, and consider whether he still feels the measure is necessary on Report.

Agriculture Bill (Thirteenth sitting)

Debate between George Eustice and Robert Goodwill

Tuesday 20th November 2018 Public Bill Committees

[George Eustice]

There is a very good reason for having the thorough process outlined by the Department for International Trade that I am describing to the hon. Gentleman.

[Mr Goodwill]

There has been much talk about trade deals in terms of what others might send us, but does the Minister not agree that trade is a two-way process? If, as he suggested, the Americans are becoming much more discerning in the quality of the products they buy, there are great opportunities to export products such as Wensleydale cheese or British beef to these new markets.

[George Eustice]

That is a very important point. We are working at the moment to try to get access for British beef to the United States because it is a premium product and their beef tends to be lower grade. There is also a good market for British dairy products, particularly our famous cheeses, in the United States where they largely have a standard cheddar that is not particularly good. There is a market for those. There are offensive opportunities in some of these trade deals, which we should always bear in mind.

Agriculture Bill (Ninth sitting)

Debate between George Eustice and Robert Goodwill

Tuesday 13th November 2018 Public Bill Committees

[Mr Goodwill]

I was in the European Parliament for some time, and it strikes me that the way EU regulations are drafted makes the assumption that every farmer is a crook who is trying to dodge the system; in the UK, we have a long tradition of great honesty from the agricultural community in the way they work through these schemes.

[George Eustice]

My right hon. Friend makes an incredibly important point.

Agriculture Bill (Tenth sitting)

Debate between George Eustice and Robert Goodwill

Committee Debate: 10th sitting: House of Commons
Tuesday 13th November 2018 Public Bill Committees

[George Eustice]

The only way that a processor could do that would be if they literally became a farmer. Setting up a sham subsidiary company that buys from the farmer and sells to a middle man would still be caught by these provisions, because the vehicle company would still be required to abide by the terms that are set out through these regulations. We thought about this hard and our conclusion was that if the challenge is the fact that farmers are too often price takers, are too fragmented and do not have sufficient clout in the supply chain, let us have a very targeted, focused approach to ensuring that we address that unfairness.

The problem with broadening the provision to anyone in the supply chain, so it could be a haulage company transporting lettuces or someone who has bought something and sold it on, is that it is broadened to many more relationships. Then it becomes difficult to justify all the requirements and purposes set out, because they are very much designed for farm businesses.

[Mr Goodwill]

We have heard about the case where milk crosses the Irish border on a number of occasions—it was almost like trying to hit a moving target. That is why these amendments are not really practical.

[George Eustice]

My hon. Friend makes a good point. We should remain focused on the challenge we are trying to address: why do farmers not get a fair price for the food they produce? Why do they end up too often being price takers and why do they need public support and subsidies in order to break even? The answer is often in the way the supply chain works to their disadvantage. Let us tackle the causes of that disadvantage and have an Agriculture Bill that is specifically targeted at agriculture.

Agriculture Bill (Eighth sitting)

Debate between George Eustice and Robert Goodwill

Thursday 1st November 2018 Public Bill Committees

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

I turn my attention now to Opposition new clause 10. I recognise that there is a very big issue behind the new clause—funding. We completely understand that. We need to ensure that we have the funding in place to support the purposes we outline in clause 1 in particular. We are absolutely clear about the importance of that. That is why we made a manifesto commitment, which we will honour, to keep the cash totals we spend on agriculture policy the same for the duration of this Parliament—we hope until 2022.

There is also provision in the Bill for a long, seven-year transition. Although we have given no concrete undertaking about the exact quantum of funding after 2022, it is implicit in the Bill and in the nature of the transition that there will be ongoing funding thereafter. We also made a manifesto commitment to introduce new schemes to replace the current common agricultural policy, and that is what the Bill is all about. On 16 October, the Government announced that they will review the intra-UK allocation for domestic support, which will go some way to giving consideration to how we allocate funds within the UK and set the ground rules for allocations after 2022.

At the moment, we spend around £3 billion a year on the CAP. In the scheme of things, compared with the spending of many other Departments, that is a relatively modest sum, particularly if we refocus those resources to delivering public goods—improving the quality of our soils and water, enhancing the beauty of our landscapes, and supporting key Government objectives, such as promoting biodiversity and wildlife on farmland and reducing our climate change emissions to mitigate the impact of climate change.

However, new clause 10 is less about the size of the budget—no doubt we will discuss that later—than about annual reporting on the budget. There are two reasons why it is unnecessary. The first is technical. The new clause would create a legal requirement to list the total funding for each of the purposes outlined in clause 1. As I made clear on Tuesday, the difficulty with that is that many of the interventions we seek will cross multiple purposes. We may have schemes that enhance animal welfare but also the environment, or that enhance the environment but also mitigate the impacts of climate change. It would be difficult to separate those things out and report on the basis of individual purposes.

Strangely enough, it would be far easier to report even more granularly—to report how much money we spent on integrated pest management schemes, catchment-sensitive farming schemes or schemes to enhance farmland birds or pollinators, for instance. We would probably be able to extract that information from individual agreements and aggregate it for reporting purposes far more readily than we would be able to pigeonhole expenditure within the purposes outlined in clause 1.

The second reason—the hon. Member for Stroud may have forgotten this, but he was in the House at the time—is that the last Labour Government introduced the Government Resources and Accounts Act 2000, under which the Department for Environment, Food and Rural Affairs already has a statutory duty to present an annual report and accounts to Parliament, detailing all our expenditure. These days that includes quite a comprehensive list, as well as reporting of the Department’s priorities and how it is delivering, for example, on its business plan.

[Mr Robert Goodwill (Scarborough and Whitby) (Con)]

Is it not also the case that hon. Members who might have an interest in such things may table parliamentary questions and need not wait for the publication of an annual report?

[George Eustice]

That is absolutely the case, as my right hon. Friend points out. We have scrutiny by the National Audit Office, the Environmental Audit Committee and the Environment, Food and Rural Affairs Committee, for example, and I always enjoy the many parliamentary questions I receive on every piece of detail about DEFRA’s spending priorities.

A statutory requirement to do annual reporting on DEFRA is in place already. However, this is an important point, so at a later stage of the Bill—perhaps on Report—I might be willing to explain to the House in a bit more detail what information we would envisage publishing as part of our requirements under the Government Resources and Accounts Act. In a world in which we want transparency about how we spend money in this area and what it is delivering, it may well be possible for us to decide to adopt a convention on the particular format of these annual accounts. I am more than happy to return to the House on Report to say a little more about that. On that basis, I hope the hon. Gentleman will not press new clause 10.

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[George Eustice]

This debate links to a discussion we had earlier about setting a clear direction during the transition period. I understand that the purpose behind the amendment is to try to tease out a bit more what we have in mind when it comes to the de-linking of payments.

We believe that many farmers—sometimes they are in upland areas, sometimes they are on tenancies; often they are in their 70s, sometimes they are even older—who probably should face the decision to retire should have support in doing so, but it is not always easy for them. Sometimes they will have some residual debt or an overdraft and always be hoping that next year might be the good year that will put them in a better position.

If we want to have a vibrant, profitable farming industry in the future, we think it is right to support new entrants and put in place the right schemes that will help some farmers retire with dignity. We will de-link the payment from the need to farm the land and for it to be connected to the land. There is provision in a separate part of the Bill for us to bundle up several years of payments into one lump sum. Through those measures, that 70-something farmer who probably should retire, or would retire if he felt he was financially able to, may take a lump sum as a voluntary exit package to sort out some of his liabilities, pay off his creditors and take that decision to retire with dignity. In doing that, we will create an opportunity for new entrants who are coming in while, equally, helping to safeguard good retirements for those farmers for whom it is right to step back. That is one of the thoughts behind de-linking.

Also, in the final stages of the transition period it might be the right thing to de-link everyone’s payments from needing to be linked to the land. Through that, people can have complete freedom over what they do with that money, whether they invest it in new equipment, choose to retire or put it into some crisis reserve to give them a buffer. We want to free them up to do that as we prepare for the move to a new system.

[Mr Goodwill]

On the point the Minister raised regarding the farmer who might want to retire and take three years’ payments, one question we tried to explore during the evidence sessions was what would happen to the new entrant coming on to that farm, who perhaps for the first two years on that farm would not receive any support, which might make it difficult for him to establish that business.

[George Eustice]

I understand my right hon. Friend’s point, but of course we must view all this in the context of a seven-year transition period, at the end of which it is our objective and our vision that there will be no basic payment scheme as it is known today. What we would envisage happening in those scenarios is that we would free up land for new entrants to come in, who would get used to working in a different way from the start.

It would be quite possible, for instance, to prioritise the roll-out of a new scheme to those new entrants coming on to land that had been exited and was no longer eligible for the BPS payment. I would also envisage that some of those new entrants coming on to that land would also be likely to qualify for the productivity support. We have to see all this in the context of the fact that we do not want a single farm payment to be carrying on forever. We have set a clear pathway to move to a different approach over a seven-year transition period.

--- Later in debate ---

[George Eustice]

I would almost say the opposite. If the market is such that a number of people choose to retire and there is no longer the inflationary pressure of a BPS payment driving up rents, rents might decline in some areas. That is not necessarily a bad thing. If rents go down, it is not great for landlords, but it creates opportunities for new entrants to come in with lower overheads and produce food for the country. There is a problem with the BPS scheme, which has inflated rents and made it difficult for entrepreneurs to get on to the land and make a sensible living.

Amendment 108, which was also tabled by the shadow Minister, puts explicit timescales on payments. I understand the frustration of many hon. Members who have had farmers coming to them in recent years and complaining that they have been unable to get the payment. We address the issue in a number of ways. First, under retained EU law, the existing timescales already set out in EU law would come across. I know that farmers will generally take the view that unless they are paid in December their BPS payment is late. In fact, the payment window opens at the beginning of December and closes in June, so there is quite a wide payment window under EU law. That will come across through retained EU law, but we have made some improvements in recent years in terms of getting money to farmers as quickly as possible. Last year more than 90% got to farmers by the end of December.

[Mr Goodwill]

Of course, in the past when payments have been delayed, fines have been payable to the European Commission. Under the new scheme, presumably there would be nobody to pay a fine to.

[George Eustice]

That is absolutely correct, but the scrutiny of Parliament will demand action. I was going to say that one of the strong features of the Bill is the fact that it gives the Government the power to act to sort out the dysfunctional EU auditing processes that create late payments.

Clause 9 gives us powers to sort out what is called the horizontal regulation. That is the regulation that sets out all the conditions on payment and the plethora of audit requirements, which often duplicate one another and are unnecessary. The primary cause of the problem we had last year in the BPS system was that under EU law we were forced to remap 2 million fields in one go, to try to get their area accurate to four decimal places. If we had not done, that we would have had a fine from the European Commission of more than £100 million, so we had to attempt the exercise. However, it inevitably caused problems on some farms. Many hon. Members will have had farmers reporting to them that fields had disappeared, or, in some cases, their neighbour’s fields had ended up on their holding. That is what happens when we try to remap 2 million fields. We would not have had to do that, had we had the powers to strike down those requirements.

Secondly, the issues we have at the moment with the countryside stewardship scheme are largely due to the fact that the EU, under horizontal regulation, introduced a new requirement that every single agreement must commence on the same date; so whereas we used to spread the burden of administration across the year, with people able to start in any month, everyone had to start in January. That meant a huge pile of application forms coming in at the same time. Our agencies had to employ lots of temps to try to process the work; and we all know what happens if there is a surge of temporary agency workers to process work. There were inevitably errors and problems. Again, we could remove those rather ludicrous requirements that the European Union imposes on us—in that case under clause 11.

I hope that I have been able to provide some further information about how we would intend to use the clause 7 powers, both to de-link and to make lump sum payments available. I hope I have also reassured hon. Members that the answer to the problem of late payments lies in clauses 9 and 11, not in an amendment to clause 7.

Agriculture Bill (Seventh sitting)

Debate between George Eustice and Robert Goodwill

Thursday 1st November 2018 Public Bill Committees

[Mr Robert Goodwill (Scarborough and Whitby) (Con)]

My hon. Friend the Minister has mentioned the issue of ear tags, but we also potentially have the problem of sprayers that may have missed their annual MOT. When the sprayer ultimately comes for its test, it may well have been compliant all the time, but according to this amendment that farmer could be ineligible for payments. Perhaps the guy who was going to do the test was ill that day and the farmer ran out of time.

[George Eustice]

There can be lots of issues like that.

[George Eustice]

I disagree; I have thought it through. If the hon. Lady and a future Labour Government want to do precisely what they set out in amendment 84, the right place to do it would be under an affirmative resolution under sections 2 or 3.

[Mr Goodwill]

Perhaps I should clarify something for the benefit of the Opposition. I am not talking about the Ministry of Transport MOT, where people take their car to the garage; I am talking about the annual testing that sprayers must undertake as part of cross-compliance and as part of the schemes that farmers engage in. Indeed, slug pellet applicators need to be tested every five years, so it is quite possible that a farmer would forget when that five years was up.

[George Eustice]

My hon. Friend makes a good point. There is a complex issue around sprayer MOTs, as he knows, because there is a voluntary industry scheme underpinned by Red Tractor. The vast majority of farmers are required to do that as a condition of their Red Tractor membership.

I have come across examples. For instance, we have a cross-compliance rule that there needs to be a 2-metre buffer strip around fields. I have come across examples where in one small corner of the field the person doing the rotavating or operating the plough drifted slightly in, so that the width went to 1.80 metres instead of 2 metres. A farmer in that particular case received a fine of £10,000. That is clearly disproportionate to the scale of the offence and it is the kind of nonsense that we now have an opportunity to sweep away.

--- Later in debate ---

[George Eustice]

I am grateful to my hon. Friend for that intervention. I intend to address those issues in more detail when we get to part 2, because clause 11, in particular, gives us the power to modify the existing EU schemes. As I pointed out earlier, the difficulty that both the RPA and Natural England have with these schemes is the dysfunctional nature of the enforcement regime designed by the EU that sits behind them. We have an opportunity to clean that up once we leave the EU.

[Mr Goodwill]

My hon. Friend mentioned national organisations such as the RSPB. Does he see a role for local wildlife trusts? There are 47 up and down the country, including the Yorkshire Wildlife Trust, which currently not only manages 100 wildlife reserves but works closely with farmers to help them manage their land, and would, I think, like to work more closely with more farmers.

[George Eustice]

Absolutely. I am a huge supporter of the work of the wildlife trusts; we have one in Cornwall that does some good work. They often have local knowledge and very good working relationships with farmers because they are less of a campaigning organisation and more on the ground. There could well be a role for them. The purpose of clause 2(5) is to make provision for us to be able to engage some of those third sector organisations, and even independent agronomists farmers trust, so that we can design tailored local schemes.

Although the amendment is not pertinent here, I will briefly touch on clause 2(4) because it is a linked issue. It gives us the power to give financial assistance to an organisation that would administer a scheme directly. To be clear about the type of thing we have in mind, because it is a similar provision, the national parks have said that they would quite like to run a scheme for their members and administer the financing of that by delegating it down. There are some good examples, such as the Dartmoor hill project, where we have that kind of landscape-scale working around organisations such as national parks.

Local enterprise partnerships have expressed an interest in being involved in the administration of productivity grants. We want to have the option to subcontract some of that work, where it is appropriate, to bodies such as local enterprise partnerships or national parks. Again, that could assist in ensuring that these schemes run smoothly.

Agriculture Bill (Sixth sitting)

Debate between George Eustice and Robert Goodwill

Tuesday 30th October 2018 Public Bill Committees

[George Eustice]

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

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

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

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

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

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

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

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

[Mr Goodwill]

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