Leaving the EU: the Rural Economy

Lisa Cameron Excerpts

Tuesday 17th January 2017 Commons Chamber

[Rachael Maskell (York Central) (Lab/Co-op)]

If I may, as this is my first opportunity to do so, I would like to pay my personal respects to Katie Rough. Katie lived in my constituency and died tragically in York just over a week ago. The whole city has been shocked and saddened by the loss of such a precious little life. Yesterday would have been Katie’s eighth birthday, and I joined with her community in Westfield to celebrate her life alongside her parents and friends. I am sure the whole House would want Alison and Paul Rough to know that they are very much in our thoughts and prayers. May Katie rest in peace.

We live in challenging times, in which it is often difficult to see over the horizon, and yet we have a duty to steer a steady path to achieve the best outcome for our nation. The country voted to leave the European Union on 23 June, so we now have a responsibility to take the whole country forward together—the 100%— to provide economic and national security for all, and to cut deals with the EU and others to ensure that our export focus remains robust.

Seven months have passed since the vote, and negotiations are due to begin in just a couple of months’ time, so where is the plan from the Department for Environment, Food and Rural Affairs? I have heard plenty of platitudes from the Conservative party. I have listened to dogmatic ideology about cutting red tape. There have been utterances about aspiration and the “fantastic opportunity” before us, but all is meaningless without even a shred of a DEFRA plan being shared. Those words no longer wash with farmers. Farmers do not work with esoteric concepts; they live in a real, tough, cut-throat and challenging world where straight talking is what matters. So where is that DEFRA plan we have been promised? Of course we should have had it before the referendum, and we continue to hear talk of the two seriously delayed 25-year plans, but farmers need a plan now, so that they can shape their agribusinesses and give them the best possible chance to succeed. The year 2020 is just around the corner and provides little security for so many.

The whole food and farming sector needs security now, security through transition and security for the long term. It is challenging enough for the farming community at the best of times. That is why so many voted to leave the EU, in the hope that surely things could not be worse, but being kept in the dark, not knowing what the Government plan to do, is even more worrying. Farmers at the Oxford farming conference showed their vote of confidence in the Secretary of State; only the Minister of State, Department for Environment, Food and Rural Affairs, the hon. Member for Camborne and Redruth (George Eustice), eventually came to her rescue by putting a sole arm in the air to show support for his boss.

Farmers need clarity. The success of the food and farming industry, which we must celebrate, has been down to the sheer grit and determination of farmers in making a success of their businesses, but let us not get away from the fact that it is tough out there: incomes are falling and debts are rising. Incomes were down by a shocking 29% last year, and a fifth of farmers are struggling just to pay their bills. The average debt for a farming business is now £188,500, and too many have gone out of business altogether, including more than 1,000 dairy farmers in the last three years. Not all farmers are thriving, or even surviving.

Not every problem can be blamed on the EU. For sure, there are some regulations that farmers would happily see the back of. With 1,200 regulations to analyse, of course we would want to see some go, but rather than picking out one or two by name, the Secretary of State should first set out the strategy, and then test each regulation against the criteria, not take a piecemeal approach with no systematic logic applied. Ever since I was appointed to my brief, I have been asking how the Government will police regulations and prosecute those who breach them outside the EU framework. Answers are needed, as this will be a matter for the UK alone.

All this has little relevance, however, if the big question is not answered: what will replace the common agricultural policy? What succeeds CAP is not subject to any negotiation with the EU, so what has been agreed with the Treasury? With subsidies accounting for over half the income and investment resources of farmers, they need to know what will take its place. What will the criteria be, how will they access funding and how can they start shaping their businesses now, in line with the new criteria, so that by 2020 they can be on the firmest financial footing possible? What has the Treasury agreed? What has the Secretary of State determined?

If Labour were in power today, we would be launching our rural investment bank, and building sustainability for businesses and the environment, and resilience across farming. We would be giving farmers the stability and security they need to plan their future, along with the business support they need and the infrastructure and technological investment to drive productivity.

[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)]

Does the hon. Lady agree that there are grave concerns about early pest and disease intelligence from Europe, which might become much less accessible, alongside investment in research and development, which might fall without access to EU funding?

[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.