Agriculture and Horticulture

Lord Gardiner of Kimble Excerpts

Thursday 7th July 2016 Lords Chamber

[Lord Gardiner of Kimble (Con)]

My Lords, my noble friend has long been a great champion of agriculture and horticulture and I join other noble Lords in congratulating him on securing this debate. As his successor at Defra, I am very conscious of the positive legacy he has left us.

This has surely been an exceptional debate and the experience that your Lordships bring to it is invaluable. I am delighted and honoured to reply to it. My noble friend Lord Plumb was rightly mentioned a number of times. I am very much reminded that he has been a constant in so many people’s lives. In fact, I remind him now and again that he knew my grandfather very well.

I declare my farming interests as a recipient of CAP funds, a member of the National Farmers’ Union and as vice-president of the Buckinghamshire Agricultural Association and the Suffolk Agricultural Association. I assure the noble Baroness, Lady Parminter, that I am tenacious. I am very grateful to the noble Baroness, Lady Jones of Whitchurch, for her remarks but I shall be robust on matters in the department and more generally because I passionately believe that agriculture and horticulture have a crucial role to play in our rural and, indeed, our national economy.

Farming directly added almost £10 billion to our economy in 2014. The right reverend Prelate the Bishop of St Albans described it as the backbone of the food industry. I decided that I would call it the seedcorn. Farming contributes to the UK’s £108 billion agrifood chain, which provides employment for one in eight workers. It is an industry renowned the world over for the quality of its produce and its high standards of animal welfare. Farming also dominates our landscape: 70% of UK land is classed as agricultural.

I am pleased that my noble friends Lord De Mauley and Lord Shrewsbury raised the issue of exports. The UK boasts some of the most diverse food and drink, ranging from Scottish beef to Yorkshire forced rhubarb, Kentish ale and Suffolk cheese. As my noble friend Lady Redfern is present, I had better include Lincolnshire Poacher cheese as well. Food and drink is the UK’s largest manufacturing sector, with exports worth £18 billion. I assure noble Lords that very much uppermost in the Secretary of State’s and all the ministerial team’s minds is how we enhance exports to China and America. If I had longer, I would advise your Lordships on the many areas that we are working on.

This Government are absolutely clear about the importance of vibrant and sustainable rural communities that are built on a strong economy, making them great places to live, work and visit. We also champion the way of life and traditions that make our rural areas so special. Sustainable rural communities need to be dynamic, resilient and ready to adapt for future generations. We should not look to preserve them in aspic, but instead provide them with a framework of support within which they can flourish. Last August the Secretary of State published a 10-point rural productivity plan. It will help us to create thriving towns and villages where generations of families can open and expand their businesses, buy homes and educate their children at first-class schools.

One of our plans—mentioned by a number of your Lordships—is to improve broadband, mobile and transport connections. The public investment in improving broadband is nearly £1.7 billion. My department is working closely with DCMS and its delivery body, Broadband Delivery UK, to press for improvements in coverage. It may be good in Lincolnshire, but there are still counties that are not where they should be and we need to work consistently to improve it across the country. We should also be improving planning and regulatory conditions for rural businesses, creating a highly skilled rural workforce, creating strong conditions for rural business growth, and making it easier to live and work in rural areas, particularly by overcoming housing constraints and improving access to affordable childcare for working parents.

As a number of your Lordships—my noble friend Lady Byford, in particular—mentioned, tourism plays an important role in the English economy as a whole and a vital one in many rural economies. Many of our most iconic landscapes, which attract millions of visitors from around the world, are landscapes that have been, and continue to be, shaped by farming. I am so pleased to endorse what the noble Lord, Lord Clark of Windermere, said: the Lake District would not look the way it does today without the presence of sheep and the careful management by hill farmers.

I also entirely agree with my noble friend Lord De Mauley about the importance of growth in the horticultural sector. The UK’s horticultural growers are embracing new technology to allow them to grow more while using less land. New growing techniques are being used for new varieties of apples, producing not 20 tonnes per hectare, but up to 100 tonnes per hectare. Meanwhile, growers use fewer pesticides because they use weather monitoring technology to determine when they need to spray. Our apples are the tastiest in the world and we are now selling this crisp, beautiful fruit into the middle of June. This is due to improved storage technology. The noble Duke, the Duke of Somerset, mentioned strawberries—another success story. In the 1980s, English strawberries were a treat for a few weeks of the year; the rest were imported. We are now nearly self-sufficient in strawberries and they are available from March through to November and, whatever the weather, for the whole of the Wimbledon fortnight. UK growers use various types of modern, innovative, hydroponic growing systems to produce fresh herbs and salad vegetables year-round. In addition to UK research and development, UK growers regularly visit other countries to learn from the technology used elsewhere and incorporate the best ideas into their own regimes.

British cut flower growers are just starting to see a renaissance in interest in local seasonal blooms. With continuing support from consumers, they can continue to invest in the best production techniques and produce even more. Our garden designers are the best in the world and the impact on our economy is enormous; it is worth more than £10 billion. We attract visitors from everywhere to our world-renowned gardens and centres of horticultural excellence. I must mention Kew and Wakehurst, for which I am responsible, as well as Wisley, Sissinghurst and Alnwick, to name a few. In addition, we lead the world in flower shows. Many of us will have wondered at the displays at Chelsea, not least the gold-medal winning tribute to Her Majesty by New Covent Garden Market.

As my noble friend Lord Shrewsbury has observed, farmers quite clearly operate in a global market. The future promises further change; yes, some opportunities, but some current uncertainty, following the decision of the British people to leave the European Union, to which all your Lordships—I think it is fair to say—have referred. I am fully aware of the overwhelming importance of this decision to our farming and horticultural industries. The Prime Minister has been clear that the negotiation for Britain’s future relationship with Europe will need to begin under a new Prime Minister, who should also take the decision about when to trigger Article 50 and start the formal process of leaving the EU.

To address the points made by the noble Baronesses, Lady Jones of Whitchurch and Lady Parminter, and my noble friend Lord Caithness, Defra’s priority, as my colleague the Secretary of State has made clear, is to put our shoulder to the wheel to ensure we leave the European Union in the best way for Britain, which includes ensuring that Britain’s agriculture and horticulture sectors have a vibrant future. I assure noble Lords that Defra will play a very important role in these discussions. As we prepare to negotiate our exit, Defra will work closely with a new dedicated EU unit set up in the Cabinet Office to look at future support for farmers, future trade arrangements and the regulation of the food industry.

The Government will work with industry and the public to develop these new arrangements. As my noble friend Lord Caithness said, agriculture in the UK is a devolved issue, but we will continue to work closely with colleagues in the devolved Administrations. When I attended the Agriculture and Fisheries Council in Luxembourg last week, I had some very cordial discussions with the Scottish Government Minister. The noble Baroness, Lady Parminter, asked about the economic analysis on Brexit that Defra will receive. The Government will work with industry experts and the public to take into account all the important issues, particularly the advice on economics, as she highlighted.

My noble friend Lord Caithness, the noble Baroness, Lady Jones of Whitchurch, and my noble friend the Duke of Somerset asked about the future of CAP schemes. As the Prime Minister has made clear, while the UK remains a member of the EU, current arrangements for food and farming, trade and the environment remain in place. EU funding arrangements continue unchanged. We are considering the implications for multiannual schemes under the Rural Development Programme for England, including countryside stewardship, as a priority. We will advise stakeholders as soon as we have any further information.

In answer to the question asked by the noble Baroness, Lady Jones of Whitchurch, the existing rules of the CAP will continue to apply and inspections will be conducted as normal during this period. Looking to the future, the Prime Minister was absolutely clear that a system of agricultural support would be needed in the event of a decision to leave the EU. This will all have to be negotiated under the direction of a new Prime Minister, but it is vital that British farming is profitable and remains competitive. It is at the heart of the countryside, and it is the bedrock of the food and drink industry, which is Britain’s largest manufacturing sector.

My noble friends Lord De Mauley and Lord Jopling spoke about the dairy sector. It has been and still is a grave time, but there are some positive signs for the sector. The global dairy price has risen by 3.4% over the past year and dairy consumption globally continues to rise. To support dairy farmers through this volatility, we have extended tax averaging to five years, invested in technological advances to help farmers improve their productivity, and fought hard—I was at the Agriculture Council when this happened—to secure support from Europe for a £26.2 million aid package for our dairy sector. We paid this money promptly to provide some immediate relief. I should say that I am very conscious of all that has been said about the dairy sector, as my family has been steeped in the industry for so many generations.

The world’s population is expected to rise from 7 billion to 9 billion by 2050. Our world-class research and development has a role to play in contributing to global food security and international development. As has been acknowledged, the UK has enormous strengths in this area. A recent international survey placed us top in innovation in biosciences and environmental science. In the UK, as of 2012-13, the private sector is spending more than £500 million on research and development in agricultural technologies, while the public sector is spending around £300 million.

My noble friend Lord De Mauley launched the agritech strategy in 2013. Through that strategy, this Government are taking action to ensure that the products of our world-class science and research base are making it to our food and farming businesses. As my noble friend said, the Government have committed £160 million under the strategy to rebuild the pipeline of innovation from the research laboratory to the farm. To date, £77 million of government funding has been committed to almost 100 projects under the agritech catalyst. The projects cover every aspect of farming, from cereals production to horticulture and livestock. Examples of these research projects include the precision application of fertilisers using radar technology, and protecting crops without spraying insecticides by luring insects to traps coated in insect fungal spores.

Many of your Lordships raised the importance of the environment. I was struck by what my noble friend Lord Swinfen said about soil health. I spent last Friday on a farm looking at pollinator schemes because the national pollinator strategy group, for which I am responsible, is a key part of what we want to do in ensuring that we have the best environment. I assure the noble Duke, the Duke of Somerset, that black grass is prevalent in Buckinghamshire and is a very serious problem for us all.

This Government have also invested £80 million in four new centres for agricultural innovation, which will be enormously important. These centres are now open for business and I hope that we will soon see a positive impact.

The noble Baroness, Lady Jones of Whitchurch, asked whether a future farming strategy will have the same commitment to environmental protection and about the status of the food and farming plan. The outcome of the referendum clearly provides an opportunity to consider a long-term vision for the type of environment, and food and farming sectors we want in Britain. I also noted the comments made by the noble Baroness, Lady Parminter, on this. It remains essential that we have a thriving food and farming sector, with high environmental standards. We will continue to develop both our plans in partnership with the sector within this new context.

My noble friend Lady Byford and the right reverend Prelate the Bishop of St Albans mentioned employment. The land-based colleges and universities provide vital training for those joining the industry. I welcome the recent creation of the National Land Based College, through which many land-based colleges are working together to enhance their offer to the industry. For our part, we are working with the industry to treble the number of apprenticeships in food and farming. My noble friend Lord Arran spoke of the enormous opportunities. I endorse his words and very much hope that it will be a huge success in his part of the world, the south-west. We also need to join up innovation across the farm gate. To bridge that divide, last summer the Prime Minister announced that we are setting up a new industry-led food innovation network, which I believe will be of great assistance.

The Government recognise that GM technology is one option that could help to make agriculture more efficient and sustainable. We want our farmers to have access to the best technology available, so that they can remain competitive and contribute to the growth of the rural economy. The Government believe that policy on GM technology must be science-based and proportionate, taking full account of the available evidence. We also recognise the importance of the points raised by the noble Baroness, Lady Jones of Whitchurch, and the noble Countess, Lady Mar, about the need for a debate on new technologies to be informed by and to take account of any ethical considerations.

A number of your Lordships raised climate change, which is one of the biggest challenges we face in our future. We are committed to meeting our target for reducing the UK’s greenhouse gas emissions and supporting the agriculture sector in reducing those emissions through investment.

The noble Duke, the Duke of Somerset, raised the matter of TB. We are taking strong action to deliver a long-term plan to eradicate the disease and protect the future of the UK’s dairy and beef industries. Our comprehensive strategy includes strengthening cattle testing and movement controls, improving biosecurity on farms and when trading, and badger control in areas where TB is rife.

Food security is another key point. Meeting the challenges of global food security will require a multipronged approach to improving production systems. This has been highlighted in the Royal Society report, and endorsed by the Foresight report. We are investing in food security. The Government invest £450 million a year in food and farming research and, as I mentioned, a further £360 million to support agricultural technologies. We are working with farmers, manufacturers and retailers to enable UK producers to grow and compete.

I re-emphasise the vital economic importance of British agriculture and horticulture, and this Government’s commitment to supporting its continued growth, especially through the use of science, in the future. Our country has a proud history of leading bioscience research and farming innovation, alongside a strong history of environmental land management. Farming and horticulture will continue to be the heartbeat of our countryside. For many of us, the British countryside goes to the very core of our identity and culture—the challenges of the seasons and the custodianship of the land. We owe much to the rural communities up and down the kingdom: our food, water, energy, landscape, recreation and indeed tranquillity. We ask much of them.

My noble friend Lord Caithness spoke personally of the countryside’s place in terms of both physical and mental health. Whatever the analysis, which I do not have to hand, I suggest to my noble friend that all these benefits are without price. The vibrancy of those communities is essential, and not only to the rural economy. I sense what all your Lordships have felt in this really striking debate—which has brought so much experience to bear—which is that what we owe to these communities and to our country is absolutely essential to our national well-being. I assure your Lordships that my energies, and the energies of Defra, are devoted to that purpose.