Leaving the EU: the Rural Economy

Liz Saville Roberts Excerpts

Tuesday 17th January 2017 Commons Chamber

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

Diolch yn fawr iawn. The Government amendment mentions continuity and certainty to 2020. That is three years away. People fear uncertainty, and the rural communities I represent are afraid that the certainties that underpin their way of life are to be swept away.

Farming is a difficult profession, requiring a commitment to a lifestyle that is almost unmatched. Yet, the economic impact of farming in communities in my constituency is far wider than is possibly appreciated. In Wales, upland farm profits fell last year to £21,900, meaning that about 60% of farms either made a loss or would have done so without farm support. However, despite their economic hardship last year, the 10,000 or so farm businesses in Wales paid employees and other businesses about three times as much as they made. Many Welsh communities are dependent on the rural economy for their year-round existence. The Welsh language, culture and traditions of Wales are rooted in these communities and their future is at risk.

That brings me to my next point, which is the much maligned—today, before and probably afterwards— EU common agricultural policy. Undoubtedly, this financial support mechanism is not perfect and its administration could clearly be improved, but what we have heard so far from the Government does not offer us much hope of an improved CAP-style model. Of course, farmers do not want to have to rely on direct payments, but a legacy of 60 years of policy making aimed at cultivating a plentiful, cheap and secure food supply means that the returns from the market are simply too low to sustain most livestock businesses. If we slash and burn the support mechanisms that we afford our already struggling farms, we risk not only our food supply, but the future of our rural communities and the industries they support.

Wales has about 5% of the UK population, but receives about 12% of the EU funds that flow to the UK. That is a result not only of its considerably more rural society, but of the less profitable livestock hill farms of Wales receiving a far greater share of CAP payments compared with the crop farms of southern England. Those farms, which are vital to our rural and national economy, must receive guarantees now that they will not suffer any loss of support. I call on the Government to do something radical—to slow down and think.

Policies must be evidence-based, rather than the product of idealistic aspirations and clever-sounding buzzwords. A “clean Brexit” chimes with a clean break, but no rhetorical flourish will ring true for those who end up broken. I therefore call on the Government to maintain direct payments and budgets, to ring-fence the moneys until we have found a realistic way to replace farm incomes, and to guarantee that there will be no power grab from the nation of Wales. As I was told recently,

“if they want to do to rural communities what was done to the miners, let them…do so with their eyes open.”