Common Agricultural Policy

Kerry McCarthy Excerpts

Thursday 1st November 2012 Westminster Hall

[Kerry McCarthy (Bristol East) (Lab)]

As ever, it is a pleasure to serve under your chairmanship, Mr Chope. I want to focus on the concerns being raised by environmental organisations about this issue, and particularly on the views expressed by the Royal Society for the Protection of Birds, the Campaign to Protect Rural England, and the Wildlife and Countryside Link. It is important to note that although this matter is immensely important to our farmers, it is not only about them, as everyone should have a stake in the countryside, whether they own land, make money from it, work on it, or not.

[Huw Irranca-Davies]

May I commend my hon. Friend, Mr Chope, on introducing to the debate the concept of a one-nation CAP reform?

[Kerry McCarthy]

I thought for a moment that my hon. Friend was congratulating you, Mr Chope, on introducing that concept, and I wondered whether I had missed something. Yes—a one-nation CAP reform. That is our slogan for today.

If the concerns raised by environmental organisations are not addressed, there is a danger that the CAP, which has demonstrably made some progress over the past 20 years—albeit painfully and slowly at times—could, as part of a process intended to improve its environmental performance, perversely be taken backwards. I am glad to say that there is general agreement on the need to green the CAP, which I regard as absolutely necessary if we are to achieve three objectives: first, to support more long-term sustainable food production; secondly, to address the ever-increasing challenge of global food security; and, thirdly, to meet our environmental goals, which range from halting and reversing biodiversity declines by 2020, to meeting our climate change targets.

Greening of pillar one payments must happen and, at the same time, pillar two must be fully protected or ideally, increased. The added justification for those changes is, in the words of the RSPB’s evidence to the Committee’s inquiry, to

“legitimise expenditure of €300 billion over the next seven years.”

That is a huge sum of money. We know from yesterday’s debate on the EU budget just how much concern there is in this place, and among the wider public, about EU spending, of which the CAP is the largest single component. I agree with the Committee’s conclusion that it is a concern that greening may be seen by the Commission as a way of justifying the significant public expense of its policy on direct payments, rather than a way of delivering environmental improvements across the EU. I hope that the Minister will devote some time to that concern in his response.

There is also concern, as there is in relation to other areas of Government policy, that this could become an exercise in so-called greenwashing—greening in name, but not in outcome. Greening must be designed and implemented in a way that secures genuine environmental improvements at farm level and across all member states. There are worrying signals that the member states want to maintain the status quo but to repackage the status quo as green when it is clearly not. The Luxembourg paper contains some strong examples of that. The measures suggested by 16 member states in that working paper, published in April, are even worse in delivering environmental outcomes. In particular, the section on farmers who are “green by definition” has raised concerns. Arguing that a farm is automatically green just because a certain proportion of it is grass is nonsensical, as there is huge variation.

[The Minister of State, Department for Environment, Food and Rural Affairs (Mr David Heath)]

indicated assent.

[Kerry McCarthy]

I am glad that the Minister is nodding. I hope that he repeats that when he comes to make his speech at the end of the debate. Grassland can be managed in a way that is good for the environment, but can also include reseeded and extensively managed grassland, which does not deliver comparable environmental benefits. The UK was one of the member states involved in that document. I am pleased that the Government have since distanced themselves from it, saying that the UK was not a co-signatory, but just wanted to move the Commission’s thinking forward. I hope that the Minister will use this opportunity to clarify that again.

One argument that we are hearing a lot, including from the Country Land and Business Association and the NFU in the UK, is that farmers in agri-environment schemes should be counted as “green by definition”. It is true that there are many good examples of what those schemes are achieving in the UK, but there are two problems. First, there would be no environmental additionality from such an approach, and that is badly needed. Secondly, it would in effect involve double funding. Farmers would be paid once via their agri-environment scheme payment—paid for under pillar two—and paid again from their new greening payment, when the new CAP comes into force, under pillar one. Therefore, although it is important that greening and agri-environment schemes work coherently together, I do not think that “green by definition” is the answer.

Let me move on to talk about flexibility. The Select Committee and the Government agree that a one-size-fits-all approach is not appropriate. The Select Committee Chair, the hon. Member for Thirsk and Malton (Miss McIntosh), talked about that in some detail today, as did the hon. Member for Banff and Buchan (Dr Whiteford). It is only practical for there to be flexibility so that environmental measures can be tailored to local environmental and agricultural conditions. I would very much support that approach. However, there are some dangers with too much flexibility.

I can see that, for the UK, a flexible approach makes most sense, as we are leading the field with our higher-level stewardship schemes and would most likely use that flexibility to deliver positive environmental outcomes. However, if member states are allowed the full flexibility that they are calling for to implement greening in their own way, that flexibility could extend even to determining what counted as green. That could allow member states to kick out the Commission’s greening proposals and do what they liked, and sadly in many EU countries that could amount to next to nothing. The NFU has also raised concerns about that, but from a different perspective. As the report outlines, the NFU is concerned that DEFRA may impose more stringent greening measures on UK farmers that would not apply in other EU countries.

As I think the hon. Member for Tiverton and Honiton (Neil Parish) said, it is very important that we achieve the level playing field that is talked about so often when it comes to EU matters. I therefore support the calls from a number of environmental bodies that there should be a common framework that every member state must deliver, with flexibility to tailor implementation to local circumstances. A free-for-all on greening is not the best outcome for the environment in the EU.

Let me deal briefly with ecological focus areas. It is perhaps in the Commission’s proposals for EFAs that a common approach has best been mapped out and could make the best contribution to realising the ambition of greening the CAP. There is criticism outlined in the report about the proposed percentage of a holding that would be included in EFAs, with concern that that would mark a return to set-aside and severely limit increases in food production and competitiveness. However, as many environmental organisations have pointed out, because it could include a wide range of landscape features and low-grade agricultural land, which may already be under some form of environmental management, it would not necessarily mean taking significant areas of high-quality arable land out of production.

EFAs could have significant potential to make the direct payments that farmers receive from pillar one of the CAP deliver more for the environment. By including in EFAs important landscape features of the countryside, such as hedgerows, and ensuring that EFAs help to protect and maintain them, the character of our farmed landscapes and their wildlife could be greatly enhanced. However, the proposals would not achieve that aim and would need to be carefully designed and implemented to deliver real environmental benefits.

Lastly, I would like to raise an issue outlined by the CPRE. It stresses the need to ensure that the environment does not lose out when it comes to allocating funding to rural development measures under pillar two. Ensuring that pillar two is adequately funded is essential not only for green farming schemes, such as environmental stewardship, but to ensure that enough rural development funding is available for measures that support local food producers to boost economic sustainability in rural areas. The CPRE recently mapped the links between those who produce, process, buy and sell food sourced locally. It found that local food networks could be contributing £6.75 billion of value to local economies.

That is particularly important in Bristol, one of whose seats I represent. We recently held a mini food summit, bringing together organisations such as the CPRE and the people running Bristol’s green capital bid, which I very much hope we succeed with next year—it may be third time lucky. We were talking about how we could bring together people working in the food sector across Bristol as a hub for the south-west. The shadow Farming Minister, my hon. Friend the Member for Ogmore (Huw Irranca-Davies), was there, and I think that he would agree that it was a productive discussion in terms of how we can look at sustainability issues, encourage people to grow food locally and tackle food waste, which I have not mentioned today, but have spoken about on many other occasions. Obviously, that is also an issue in the EU. It is important to us locally that we look at how we can support local food networks.

The Select Committee says that DEFRA must redouble its efforts

“to find, engage and secure reliable allies across the European Union”

and have the resources in place

“effectively and persuasively to put the UK’s case that the CAP should support…the agricultural sector and provide environmental protection.”

I totally support that conclusion. I am somewhat pessimistic about what can be achieved, but I urge the Minister to throw his weight—his much-diminished weight, it must be said—behind our efforts to ensure that real progress on environmental issues can be made as part of this process.