Agriculture Bill

Lord Burnett Excerpts

2nd reading & 2nd reading (Hansard) & 2nd reading (Hansard): House of Lords
Wednesday 10th June 2020 Lords Chamber

[Lord Burnett (LD) [V]]

My Lords, I declare my interests as set out in the register. I live in a rural area and for many years I used to farm on my own account. I had the honour to serve as Member in the other place for Torridge and West Devon, where I still live. It is one of the most rural constituencies in England and part of it comprises a large swathe of the Dartmoor National Park. I have observed over many years how the United Kingdom’s agricultural industry has made substantial investments of time and money into animal welfare and environmental protection. We rightly have high animal welfare and environmental standards. We concentrate whenever possible on the extensive rearing of livestock and we produce high-quality products.

Given the time constraints in the debate, I shall concentrate on the beef and sheep sector. If there is no agreement with the European Union by the end of this year—and media reports suggest this is likely; even the Governor of the Bank of England has warned banks to prepare for no deal—then the prospects for UK agriculture are extremely bleak.

The sheep sector faces a very damaging period, lasting for years. Approximately 40% of our total sheepmeat production is exported to the European Union. We import very little sheepmeat from the European Union. If we leave the EU without a deal and on WTO terms, our exports to the EU will carry an ad valorem tariff of between 40% and 60%. This product is very price sensitive. Exports will be severely cut and there will be chronic oversupply in the UK. The price of sheepmeat will plummet, leaving our sheep farmers’ stock values decimated. The continuation of the basic payment scheme and other support will not even start to make up the difference.

As to beef, we are net importers from the EU. I understand that we are proposing an ad valorem tariff of approximately 12% on imports of beef into this country from the EU, whereas our exports of beef to the EU will carry an ad valorem tariff of between approximately 40% and 60%. This means that we shall be in the ludicrous position of subsidising imports. Trade in beef products will be severely disrupted, and with dire consequences for our farmers. Stock values may drop substantially.

The pressure will be on the Government to make alternative tariff-free or low-tariff arrangements with non-EU countries. There will be overwhelming pressure on the Government from other sectors of the economy to complete a trade agreement with the United States. My understanding is that any trade agreement would have to be ratified by both Houses of Congress. Senators and members of the House of Representatives from rural areas could refuse to ratify the agreement if the necessary access for their constituents to agricultural products from the UK was not included. The pressure on the Government to conclude an agreement with the US will be overwhelming. Despite their fine words, Ministers come and go. Unless we impose the most compelling and robust statutory prohibitions on the Government, we shall be flooded with cheap, hormone-fed beef that is reared with scant regard for animal welfare and with other products that are equally substandard. For example, there are many crop sprays permitted in the United States which have been outlawed in the EU, and therefore in Britain, for years.

The Government should agree an extension on the transition period until satisfactory arrangements between us and the EU have been agreed, for all businesses in the country not just the agricultural sector. It is not in our interests to import substandard food that will be damaging to the British people. Agriculture in the UK employs, directly or indirectly, approximately 4.1 million individuals. If the Government do not heed those of us who counsel caution, there will also be substantial consequential losses for rural and urban Britain, of jobs, business and other opportunities.

Our farmers produce, and should be encouraged to produce, the basic necessity of life: namely, food.

[Baroness Bloomfield of Hinton Waldrist]

Please can I remind the noble Lord of the speaking limit?

[Lord Burnett [V]]

We owe it to everyone in our country to ensure that we maintain an agricultural sector that continues to provide high-quality, safe food and which continues to respect the environment and animal welfare.