Leaving the EU: the Rural Economy

Kerry McCarthy Excerpts

Tuesday 17th January 2017 Commons Chamber

[Rachael Maskell]

The hon. Lady is absolutely right. It is our co-operation across Europe that has built the resilience of farming, and the huge knowledge base that we all take advantage of, so of course the relationships we maintain with the science and research base across the EU will be absolutely vital to the success of farming in the future.

Of course, our fishermen and women are searching for answers, too. I have always believed that honesty is the best policy to abide by. It is time the Government clearly set out for those working across the fishing industry what they can expect to change after we leave the EU. The building of a sustainable fishing industry in an international context is vital if the industry is to survive, but as has always been the case, it is the responsibility of the UK Government to make sure that small fishing fleets have access to stock.

Accessing global markets is vital for the future of the UK food and drink and farming sectors, but again I have to ask the Secretary of State what the strategy is. It surely cannot be her role to conduct the global auction on every food product, promoting her favourite brands, such as Snowdonia cheese or Walkers shortbread. What is the approach to help every farmer to access tariff-free global markets? She cannot skip over the EU as if it no longer exists. Some 72% of our food and non-alcoholic drink exports go to the EU, and farmers want the security of knowing that they will have tariff-free access to this market. That is why Labour has been explicitly clear: “We want you to have access to the single market and tariff-free trade.” We must warn the Prime Minister, who, from what she has said today, is steering towards a hard Brexit, not to create more barriers or impossible competition for the agricultural and food sectors.

The other pressing issue is labour. Free movement has enabled 98% of the UK farmers’ seasonal workers to come from the EU—80,000 people coming to pick our fruit and veg each year. On this point, we must be clear. This is absolutely not about taking anybody’s job from anyone else. These are jobs that failed to be recruited for locally. This is not an issue on which farmers can afford to wait and see what happens, because they need to know what they will reap before they sow. Seasonal labour is already in short supply as a result of last June’s vote, and the fall in the pound has made other countries more attractive to seasonal workers. The xenophobia is keeping some away—and xenophobia has no place anywhere in our country. We owe it to those who come here to make it clear not only that they are welcome, but that we recognise the valuable role they play in our food and farming sector and in the wider economy.

For those in the EU who have made the decision to work in the UK, the Government should grant them the right to stay now. Indecision and delay is resulting in many leaving and keeping others away. I know that the meat sector has highlighted the serious risk that the dithering over these rights is causing to its sustainability—and the meat sector is not alone. Today, the Prime Minister had the opportunity to provide businesses and workers from the EU with the stability they need, but when she was asked specifically on the point, she yet again ducked the question.

[Kerry McCarthy (Bristol East) (Lab)]

Does my hon. Friend share my disappointment that, apart from a passing reference to the word “agriculture” in the preamble to the Prime Minister’s speech, there was nothing about the environment, food or farming in the 12 objectives that she set out? Does my hon. Friend think that the Prime Minister should be according these subjects far more importance?

[Rachael Maskell]

I thank my hon. Friend for that point, and I have certainly scoured the speech to try to find the word “environment” in it, but it was not there. I have serious concerns that the environmental protections that we currently enjoy from the EU will not be there for the future. Of course, as we go forward and the EU makes more progress in these areas, there was no guarantee in the Prime Minister’s contribution today that that will be part of her 12-point negotiating plan or strategy. [Interruption.] I hear the Secretary of State saying that it is non-negotiable, but if it is a key point on which we expect to make progress, we need to see it in the 12-point plan. Clearly, the Prime Minister missed the opportunity to make clear the importance she would place on the environment; that was not stated.

--- Later in debate ---

[Mary Creagh (Wakefield) (Lab)]

I want to speak about the Environment Audit Committee’s report, “The Future of the Natural Environment after the EU Referendum”, which is tagged in this debate. I pay tribute to my hon. Friend the Member for Bristol East (Kerry McCarthy) and to the hon. Member for Taunton Deane (Rebecca Pow), both of whom are in the Chamber today. Our report, produced by a cross-party group of MPs, found that changes from Brexit could put our countryside, farming and wildlife at risk, that protections for Britain’s wildlife and special places currently guaranteed under European law could end up as “zombie legislation”, even with the great repeal Bill, and that the Government should safeguard protections for Britain’s wildlife and special places in a new environmental protection Act. I will talk a little about that, but first I will address the issues around agriculture.

The Committee found that farmers face triple jeopardy from leaving the EU. Let us not forget that farms and farm businesses account for up to 25% of all UK businesses. First, the CAP provides 50% to 60%, on average, of UK farm incomes, and the figure will be much higher for certain farmers. The loss of the CAP threatens the viability of some farms.

Secondly, the new trade agreements could threaten incomes if they result in tariff or non-tariff barriers to export. At the moment, 95% of lamb exports go to the EU. If we are exposed to a common EU customs tariff, it could mean charges of up to 30% according to the Country Land and Business Association. Thirdly, any new trade deals with the rest of the world, such as that proposed yesterday by Mr Trump, could lead to competition from countries with lower animal welfare, environmental and food safety standards.

The Secretary of State for Exiting the European Union told the House that he will do everything necessary to protect the stability of the financial services sector, and again we heard reassurances to the car industry in the UK, but there have been no such reassurances to the 25% of UK businesses that are classed as rural businesses. The Secretary of State for Environment, Food and Rural Affairs said during a question and answer session at the Oxford farming conference that farm exports to the EU will decline post-Brexit. She also did not give my Committee any clarity on whether there will be subsidies for farmers after we leave the EU, and the Committee wants to see clearly defined objectives for future subsidies, such as promoting biodiversity, preventing flooding and repairing peat bogs.

[Kerry McCarthy]

Does my hon. Friend share my concern that, when the Environment Secretary gave evidence to the Committee, she said that up to a third of environmental legislation will not be covered by the great repeal Bill? That leaves a huge vacuum for environmental protection.

[Mary Creagh]

My hon. Friend is right. Our Committee discovered that copying EU legislation into UK law will not be enough for up to a third of the UK’s environmental protections. There is a risk that the legislation will be transposed but will no longer be updated because there is no body to update it, will not be enforced because there is no body with the legal duty to enforce it and can be eroded through statutory instruments with minimal parliamentary scrutiny.

Of course, we have had calls from some parts of the Conservative party for a sunset clause in the great repeal Bill, which is another thing from which the Secretary of State did not distance herself when she appeared before our Committee. That is why we want a new environmental protection Act to be passed before we leave the European Union. If the Government are to achieve their manifesto commitment for this to be the first generation to leave the environment in a better state than it found it, they must set out how they will provide an equivalent, or hopefully better, level of protection when we leave the EU. This House will have a vital role in providing clear-sighted scrutiny, rather than cheerleading, as that debate goes forward.