Fair Dealing Obligations (Milk) Regulations 2024

Lord Grantchester Excerpts

Monday 25th March 2024 Lords Chamber

[Lord Curry of Kirkharle (CB)]

My Lords, I too warmly welcome these regulations. It is interesting and rather ironic that the farmers are protesting in Parliament Square while we are addressing this topic. When I saw the tractors outside, I felt rather envious. I wished I had brought my own tractor from Northumberland, although it might have taken most of the weekend.

This has been an issue for a very long time. I have been involved in trying to encourage better relationships within the dairy and other sectors for at least 25, if not 30, years. This is an important development. I welcomed it when the then Agriculture Bill came into the House. It was a big step forward for the Government to bring this in as part of that Bill.

I have two questions for the Minister. First, did the Government seriously consider whether to extend the existing GSCOP and Groceries Code Adjudicator to include the elements contained in that Bill? There have been at least two reviews of the scope of GSCOP during the years. Many of us have been keen that that scope should be extended down the supply chain to provide greater protection and support for primary producers.

Secondly, if the answer to that is, “Yes, we have considered it but have decided to go it alone and establish our own adjudicator within the dairy sector”, are the Government likely to extend that scope to other sectors? Many of the issues dogging the dairy sector dog other sectors too. Relationships within supply chains are nothing like as good as they should be and, in many cases, degenerate into confrontational relationships. In my view, it is important to look at other sectors. When the adjudicator is appointed, it should be made clear that—if it is government policy—the remit is likely to be extended to include other sectors.

[Lord Grantchester (Lab)]

My Lords, I thank the Minister for his explanation to the House today. This is an incredibly important measure to help resolve deep-seated problems at the producer end of the milk supply chain.

I declare my interests and experiences from being involved in a supply chain, as I have owned a dairy farm and received payments for over 40 years. I supplied milk in the beginning to Milk Marque and subsequently to several other processors, as well as chairing a producer group and the milk co-op Dairy Farmers of Britain. I was also a shadow Agriculture Minister in the Lords during the passage of what became the Agriculture Act, opposite the noble Lord, Lord Gardiner. I thank him for committing Section 29 into the Act.

The milk industry is extremely competitive. It has evolved with the rise and consolidation of supermarkets. Their dominance in the grocery trade has migrated milk away from doorstep deliveries. The consolidation of the top, supermarket end of the supply chain has driven consolidation in the processing sector. I liken it to the challenge of playing musical chairs, whereby the number of processors is successively reduced by the expanding supermarkets, which channel the supply chain towards expanding processors. An example of this business is the Co-op, which, at that time, expanded by acquisition. It reduced its milk suppliers from two to one, whereby the Co-op’s amalgamation costs of £6 million were, in effect, paid for by the dairy supply chain competing to be the one supplier of milk, without much regard to fair dealing.

By contrast, the service sector can be equally unstable and volatile, supplying milk to outlets such as Starbucks and others. In the other place, the debate mentioned the possibility of waste. I agree with the Minister in the other place, Mark Spencer, that there is virtually no waste in the milk chain. The recent example of so-called waste, when Covid shut down such outlets, resulted from those dairy suppliers being suddenly told that there would be no collection of their milk for the foreseeable future, and they faced the problem of safe dispersal immediately, with full tanks and cows needing to be milked again. I pay tribute to Dairy UK and Defra, led at that time by the Secretary of State George Eustice, for rectifying the situation.

Direct Payments to Farmers (Reductions) (England) Regulations 2023

Lord Grantchester Excerpts

Tuesday 28th March 2023 Lords Chamber

[The Lord Bishop of St Edmundsbury and Ipswich]

My Lords, I shall follow the comments that we have just heard. I declare a new interest as the president-elect of the Suffolk Agricultural Association, where we see the issues that have just been described in the uplands similarly in small family farms in Suffolk.

By and large, the farmers that I speak to want to embrace the ELM scheme and many of them are doing so. What those who are embracing it are saying to me about those who are not yet doing so is that somehow the scheme needs to be made more attractive, the incentives need to be increased—particularly for the smaller family farmers—and the process simplified in some way so that they can gain access to the scheme. I understand that His Majesty’s Government are seeking to achieve 80% take-up of ELMS by 2030. I ask the Minister where we are with that at the moment and what he sees as the possibilities of accelerating and incentivising the take-up by those who, as we heard earlier, might need hand-holding in that process.

[Lord Grantchester (Lab)]

My Lords, I declare my farming interests as set out in the register, being a farmer in receipt of payments. I shall speak from a grass-roots perspective and perhaps be a little more critical.

On 26 January this year, the Minister in the other place introduced the Government’s agricultural transition plan with the words:

“We will learn from the past”.—[Official Report, Commons, 26/1/23; col. 1191.]


I regret that the Conservatives are slow to do so. The errors of the common agricultural policy will not absolve them of their mistakes, repeatedly made. That is not to say that I am not in favour of the new approach towards payments for environmental benefits; it is the poor way in which they are being introduced that I regret.

I regret that Conservatives still insist on basing environmental payments on the income-foregone model, long discredited since the start of Pillar 2 payments many years ago. I had thought that, under the new post-EU system, farmers were to be rewarded for the value of the benefits for the public good of enhancing the environment. Under the cross-compliance features of the CAP it made some sort of sense, but it makes no sense where schemes replace elements of agricultural production and payments go nowhere near the value of cropping, hence the poor uptake in many of the schemes under Countryside Stewardship.

I regret that the Conservative Government paid little attention during the passage of the Agriculture Act to calls that payments need to be worth while under new ELM schemes and that it would be foolish to reduce payments aggressively during the transition before there were meaningful ELM alternatives that could be understood and planned for in future farm business plans. This approach is not a way to build confidence. Conservatives tend to like to reduce, restrict and restrain rather than to undertake positive provisions for growing the market and providing inclusive initiatives.

Against the background of climate change, energy price rises and the war in Ukraine, food security and the lack of certain products on supermarket shelves have highlighted the reduction of support to, and confidence of, farmers. The disastrous trade deal with Australia and New Zealand, agreed by the discredited Liz Truss as Trade Secretary, is not welcomed.

The CAP was an agricultural policy, not an environmental one. Payments were made only to farmers. NGOs and environmental charities were envious that they did not qualify. The Government will say that the same budget of £2.5 billion is still being maintained, but it no longer goes only to farmers. No wonder the NGOs are enthusiastic in their praise. While the money is cut from BPS payments to farmers, can the Minister give the figure for the amount returned to farmers—as distinct from NGOs—from environmental land schemes? Is he able to break down that amount between farm types to clarify the effect of reductions to the uplands, perhaps the most stressed and vulnerable agricultural sector?

I will use another word beginning with R: could the Minister “refrain” from saying it is up to farmers to apply for the new schemes that were introduced in late January? The Minister’s department set itself the ambition of attracting all 80,000 farmers under the BPS to be involved in environmental land management schemes. The department would also need to include tenants, now able to take part under the Rock reforms. That would show the Government’s full commitment to have the countryside in a better state as we drive our ambition to achieve net zero by 2050. As a baseline, can the Minister say how many farmers—not NGOs—participated in schemes last year?

I urge the Minister to learn from the past and develop schemes that are simple and effective. Farmers do not want 100 pages of bureaucracy. Could communication be improved and directed at each qualifying farm in a determination to be inclusive and encouraging, as part of the 30 by 30 commitment? The ambition must be to include all the farms, with their farmers, in schemes at the end of the transition period that began in the Agriculture Act 2020.

Getting the wider 30% of land well-managed for biodiversity by 2030 is a huge challenge. I draw attention here to the fact that all farmers would want to be included, respond positively to challenges and can bring huge benefits across all types of land, in addition to those already protected under designated protections.

Paragraph 7.6 of the Explanatory Memorandum states that the Government intend the 2023 claim year to be the

“last year of the … Direct Payment scheme”.

In the new system for 2024, will the Government repeat the mistakes they committed previously, with a lack of timely detail, a lack of funding and the same philosophy of reduce, restrict and restrain? Perhaps the Minister can be encouraging this evening

[Baroness Bennett of Manor Castle (GP)]

My Lords, I find myself in the entirely familiar position of agreeing with everything said by the noble Baroness, Lady Boycott, particularly her reflections on the stranglehold that supermarkets have over farmers’ lives in this country. However, I find myself in the unusual position of disagreeing with both the Liberal Democrats’ fatal amendment and the regret amendment from the Labour Benches. At base, that is because, if we were not to take the steps that this SI delivers, the shift away would see £770 million—as calculated by the RSPB—taken away from helping farmers to take action on climate change, reduce water pollution, plant trees and restore nature.

It is worth noting that, under the Environmental Improvement Plan, 90% of the funding for tree planting —to meet the target of 16.5% of England being covered by trees by 2050—depends on ELMS funding. Some 80% of progress on nitrogen, phosphorus and sediment pollution from agriculture depends on ELMS funding. Of course, that is not to say that there are not huge problems with where we are, as the right reverend Prelate, the noble Duke, the Duke of Wellington, and others pointed out. The Carbon Brief website has a useful interactive table that lists the 270 activities that farmers can undertake to earn payments, particularly from SFI and CS schemes; 39 of those 270 are still at the planning stage, yet the base payments are being cut away.

The Minister will be surprised to hear that I will pass a small bouquet in his direction: the Soil Association has just acknowledged that payments for organic farming are rising by an average of 25% via the Countryside Stewardship scheme, which is a recognition of the benefits of organic production. But, picking up the points about small farms, it is worth noting—perhaps the Minister can write to me about this—that in Wales they are looking to reduce the size of farms eligible for farm payments to three hectares, or, alternatively, to farming businesses that rely on 550 hours of labour per year. Will the Government look at helping those smaller producers, particularly in horticulture, and perhaps small-scale livestock producers, to do that?

But—I suspect the Minister knew there was a “but” coming—my reason for regretting the Labour regret amendment is, as the Minister identified, the fact that farmers and land managers in the UK now need certainty about the future for long-term plans. If you are going to plant trees or herbal leys, you need to know what is happening not just this year or next year but in the long term. Given where we are in the electoral cycle, the Labour regret amendment will deliver to farmers a degree of uncertainty about where they might be in two or three years, in terms of the schemes that the current Conservative Government introduced—

Agriculture (Financial Assistance) (Amendment) Regulations 2023

Lord Grantchester Excerpts

Tuesday 14th March 2023 Grand Committee

[Baroness McIntosh of Pickering (Con)]

My Lords, I am grateful to my noble friend the Minister for setting out the detail of and background to the regulations before us today. I simply want to probe him on a couple of points, if I may, including on how these regulations will apply, especially to English farmers, and particularly tenant farmers.

The guidance was published in March 2022, and the path to sustainable farming was set out earlier. Has the guidance been updated since 2022? I do not see that in the Explanatory Memorandum, paragraph 11. If they are just technical changes, that may not be so important.

Why was no impact assessment done? As my noble friend said, this is year three of the seven-year transition and where the finances will start to bite quite dramatically. I state at the outset that English farmers will feel unfairly treated. My understanding is that the direct payments will continue in Scotland, so those farms in North Yorkshire, Durham, Cumbria and Northumberland will look across the Scottish border and see a slightly more familiar scheme to that which they have now and which is being taken away from them. Is that something that concerns my noble friend the Minister?

My real concern is the transition from basic farm payments to ELMS. My noble friend concentrated very heavily on the advantages to the environment. I press him on how this will impact on hill farmers, upland farmers and small farmers everywhere, in particular those who produce grazing stock such as spring lambs and, indeed, fatstock cattle.

In a Financial Times article on 5 March, it is calculated that a drop in farm business income—a measure of net profit—of almost two-thirds is expected in this financial year. That amounts to a drop in profit of £16,300. When I was an MP next door—as indeed was my noble friend—I worked very closely with the graziers. I would hazard a guess that that £16,000 per grazier was their total income. The question is this: what alternative money will they seek? They tend to have the rights in perpetuity but they tend to be tenant farmers elsewhere. If they do not get direct farm payments because the landowner, where they farm elsewhere, is taking it then obviously they will not be getting any compensation.

My noble friend the Minister will be familiar with the work of Julia Aglionby, a Professor of Practice at the University of Cumbria’s Centre for National Parks and Protected Areas. Her projection is that income will recover to £22,900 in two years before slumping back to £16,700; this would place it at just above a third of its 2021-22 level. I understand that of particular concern to the president of the NFU is the fact that at the heart of this squeeze on government payments is the decision to calculate payments on the basis of income foregone plus costs, meaning paying for green improvements at rates aimed at recompensing farmers for the resulting fall in agricultural income.

According to the president of the NFU, Minette Batters, for some farms that took part at the pilot stage, the work was simply not cost effective. As my noble friend the Minister will be aware, upland farms are particularly affected because they tend to produce less food than lowland sites, meaning that they are considered to have foregone less income and are paid lower rates. As I understand it, most farmers will receive £151 a hectare for managing grassland with minimal fertiliser, but those doing the same work in so-called severely disadvantaged areas or upland farms will be paid only £98. That is a severe drop in income and this is only the third year of seven.

Can my noble friend the Minister address those points? How are these farmers meant to survive? What are the department’s projections for the fourth, fifth, sixth and seventh years? Where the farmers in the uplands are tenant farmers, as many of them will be—I appreciate the fact that, in North Yorkshire, where I served as an MP, and in County Durham, where I grew up in the Pennines, probably 50% of the farming community is made up of tenant farmers—what hope do they possibly have of farming in future if they are not eligible for food production grants going forward? I realise that they will get money for stonewalling, which is a tradition that we want to keep, but they are hardly contributing to food security or sourcing more food—as the Prime Minister would like them to do—for our schools, hospitals and local garrisons. What future does my noble friend see, even in this coming year, for upland farmers and, separately, for tenant farmers?

[Lord Grantchester (Lab)]

I declare my agricultural interests as recorded on the register, in that I own agricultural land and am in receipt of payments. I thank the Minister for his introduction to the regulations before the Committee and welcome my noble friend Lady Anderson of Stoke-on-Trent to her new Defra responsibilities.

I had thought that we would be debating two instruments today: this one and the one on direct payments to farmers. The disastrous mess being created by the Government on food production is evidenced by the loss of that second instrument today; it is to be debated later this month through separate fatal and regret Motions.

These amendment regulations, albeit seemingly on technical administrative measures, have the potential to add greater confusion for food producers while taking away parliamentary oversight and giving more powers to Ministers. The regulations will minimise the references to specific financial assistance schemes and definitions in the original 2021 regulations to allow future changes to be made to the design of specific schemes, seemingly without due consideration and process and without the need for amendments to have parliamentary approval. Seeming to be subject to constant flux cannot instil confidence in the agricultural community to align long-term business planning with the perceived lack of consistency of government objectives on environmental sustainability. Are there are guidelines regarding the duration period? How many reinterpretations of schemes might the Minister’s department pursue without necessitating a fresh mandate? Will the Government commit to undertaking consultations on every change?

The instrument proposes extending exemptions for agricultural holders, under animal and plant welfare measures, to have to publish certain information. This administrative ease brings added complexity if an agreement holder is only partly involved in such schemes, as well as others. Can the Minister give an assurance that all agreement holders will be notified in advance of all the information to be published? Will that notification be subject to challenge?

On the wider issue, will changes of personnel within an agreement holder—for example, in the case of farm partnerships—necessarily have to be notified to Defra for legitimacy and the maintenance of agreements? I presume that this would have implications where the Secretary of State is required to publish the aggregate of financial assistance paid under the schemes, necessarily adjusted for exemptions.

Government Food Strategy

Lord Grantchester Excerpts

Monday 13th June 2022 Lords Chamber

[Lord Benyon (Con)]

The noble Viscount raises a really important point: our food industry and food distribution network is one of the 13 items listed in our critical national infrastructure. It was shocking, in 2010, when we came into government to find that there was no national infrastructure database and no drawing together of all the important points, including the ones made by the noble Viscount. I am sure that it is not right yet; we have to connect up where we need things to be in this country with the best and most sustainable means of getting there. This will continue to mean that we will have to move things on roads. Hopefully, we will move things in a much more environmentally friendly way in years to come, but there are alternatives as well. We should be building for the future to fit in with our net-zero ambitions.

[Lord Grantchester (Lab)]

I declare my interests as set out in the register. It is to be welcomed that the Government recognise the importance of food, but the strategy should be more dynamic. There are widespread problems throughout the food system which Henry Dimbleby has done well to identify and express in his report, but they have not been dealt with adequately by the Government. There is great anxiety from the widespread uncertainty engendered by government policy across many areas.

I will concentrate on one area for integration across government—quality food—and say that farmers are very good at responding to opportunities, once co-ordinated into quality marketing schemes. How is the Minister’s department working with farmers, growers, processors and the food chain to ensure that domestic initiatives—such as quality branding, product of designated origin schemes and other marketing schemes—are better integrated with the Department for International Trade to develop export opportunities in food and trade deals, where deals are not to be focused merely on opening up the UK to imports? Will Defra set up a new taskforce to build on this integration, reducing emissions and adapting to climate change? These are both key challenges for sustainability.

[Lord Benyon (Con)]

The noble Lord is absolutely right. We need to ensure that we are not only feeding ourselves, and maintaining the dependability of what we grow ourselves, but looking at markets abroad. There are a number of shining examples of our export potential, including exports of quality food from these shores. I hope that, in the years to come, we can see exports—not just to the European Union but to the rest of the world—benefitting from a new trading environment where farmers can benefit as a result. I am not sure that it requires a new taskforce to be set up, because I consider that taskforce to be the Department for Environment, Food and Rural Affairs working with the Department for International Trade. However, I am open to any ideas that will oil the wheels of export potential for our farmers and growers.

Fisheries Bill [HL]

Lord Grantchester Excerpts

Consideration of Commons amendments & Ping Pong (Hansard) & Ping Pong (Hansard): House of Lords & Ping Pong (Minutes of Proceedings): House of Lords
Thursday 12th November 2020 Lords Chamber

[Lord Teverson (LD)]

What a delicious irony, as the noble Baroness, Lady Jones of Whitchurch, said. We were told that this Bill could not be amended by ourselves due to devolution—look at all the amendments here—and now we have found out the United States can change this Bill but we cannot. It is a great irony, and interesting arguments about territoriality are coming out. What is interesting is that there is no better ammunition than this to show, if we have a trade deal with the United States, that we should not be having chlorinated chicken or the other things we talk about, given that we have had to concede on seal welfare—not that I do not welcome sea welfare.

What I welcome in particular is the transparency element that comes in. This is important for making it absolutely clear who receives grant schemes or other schemes to help the industry, as any other industry, and how those are received, so we can have a good audit of that process. I welcome that very much.

In terms of the landing in north-west waters, that is an illustration where I agree with the Government. There has to be pragmatism around how we operate the landing of fish. That is why making the detail of that in future, as we discussed in the last group, will be quite complex but essential. Do I take it from that that the exemption is for only one year? Is that exemption there only until the Government have decided what the broader landing rules are? That is my real question.

[Lord Grantchester (Lab)]

I thank the Minister for his introduction to this group of amendments and for the letter dated 3 November explaining the Commons amendments to your Lordships’ House, where the Bill started. Many of these amendments followed up on suggestions and inquiries initiated here, which the Government have had time to consider further during the Summer Recess, including in several consultations.

Once again, this House had a serious impact, delivering improvements to government legislation. These amendments provide examples of that work and could be categorised as important but may be more minor policy changes, drafting improvements and corrections.

Amendment 2 is one such amendment where, following probing, the initial provision for publication of the joint fisheries statement was set at 18 months after Royal Assent. The new proposal is to extend this to 24 months, as the noble Lord said. The pandemic and a succession of pre-election purdahs have resulted in slippages. I am glad that the Government have been able to be realistic—something it is often difficult to praise them for. However, having said that, it is frustrating that we will not get to see the outcome of that process for quite a while. Perhaps the Government will not need all the extra time that they have given themselves; we remain ever hopeful.

Amendment 5 is another example where, following debates and then amendments in the Agriculture Bill, the Government have come forward to provide explicit clarity that this extra provision does not contravene compliance with data provisions in the GDPR. We welcome this consistency and Amendment 66, regarding Scotland, Amendment 67, regarding Wales and Amendment 68, regarding Northern Ireland, which follow up with the devolved Administrations.

Amendments 13 and 27 and new Schedule 9 in Amendment 77 on the conservation of seals would strengthen protections to comply with the US Marine Mammal Protection Act, as necessary before 1 March 2021 to be able to export fish products to America. While this provision gave rise to some controversy concerning seals specifically, I, like the noble Lord, Lord Teverson, pick up on the fact that to encourage exports the UK is prepared to change how it does business. However, when challenged on maintaining standards provisions on imported food in the Agriculture Bill, the Government claim that they cannot require compliance with UK provisions for imports. The shadow Secretary of State, Luke Pollard, mentioned trade from New Zealand, which does not have these added protections and from where we will continue to import product. Does the Minister see any double standard here?

He might like to dance on the head of a pin—we will enjoy that—saying that this compliance is with conservation of seals provisions, not food standards. What if there is any re-export of food products to the US? Alternatively, I recognise Monday’s conversion in the Agriculture Bill that, under CRaG amendments, it is now recognised that there will not be a non-regression of standards and the Government should no longer be peddling that line.

Amendment 17 is a further amendment of second thoughts on drafting. It would make a small change to the definition of “minimum conservation reference size” to specify individual fish in terms of their maturity size and not the size of the marine stock. We support this amendment and also support Amendment 8 in relation to sea fishing of boats. I note that Amendment 28 in this group removes financial privilege from the legislation as the Bill started in your Lordships’ House.

The remaining amendments are technical corrections and additions to Commission-delegated regulations, which will avoid further secondary orders. With those comments, we are entirely content with the amendments proposed.

--- Later in debate ---

[Lord Grantchester (Lab)]

I thank the Minister for his introduction to this group of amendments and for his explanations. I am also grateful for the comments of the noble Lord, Lord Teverson. This group relates mainly to the carve-out for the Faroe Islands temporary foreign vessel licences and other minor technical provisions. Amendments 9, 70, 74 and 76 are technical and replace references to the devolved Ministers in Clause 41 with “sea fish licensing authorities” instead.

Amendment 11 and the consequential Amendment 26 update compliance with the 1999 treaty with Denmark and enable the Scottish Government to manage this shared area and issue licences to permitted foreign vessels as the Faroes, while in the UK’s exclusive economic zone, are exclusively in Scottish waters. I am not sure that there should be the difficulties that the noble Lord, Lord Teverson, envisages, but I await the Minister’s reply.

Amendment 44 and the bulk of the amendments in the sequence in the middle of this group concern the definition of “temporary foreign vessel licence” and how this will apply on a contingent basis when the UK becomes an independent coastal state with an agreement with the EU concerning the UK’s exclusive economic zone and licensing arrangements. Necessarily, this could take some time—meanwhile, fishers need to be able to continue activities. I agree that the flexibility this provides is commendable. In the Commons, the shadow Secretary of State Luke Pollard asked whether secondary legislation would need amendment to specify these arrangements. The Fisheries Minister Victoria Prentis said that she would need to check this position. Will the Minister be able to confirm today that this has indeed been done and that no further orders are required?

The point of these provisions is made on the assumption that the UK will be able to negotiate a continuing relationship with the EU after 31 December this year. That is not that far in front of us. Many of us are beginning to count down the remaining parliamentary sitting days, during which timetable the various relevant trade treaties will need to be examined and approved by Parliament. On an earlier amendment, the noble Lord, Lord Lansley, spoke on the likely outcome of the way forward in relation to the landing requirement. The Minister replied that the Bill is neutral on any outcome of negotiation. I will not pursue this any further, as I sympathise with him when he says that any comment from him may not be helpful at this stage.

The remaining amendments are technical, tidying up various provisions. For example, Amendment 64 concerns the timing of differing legislation at different times of the tortuous Brexit debates. Amendments 21 and 42 concern provisions in Schedule 4 regarding the Channel Islands and the Isle of Man and the extent of Section 2 of the Fishery Limits Act, as the Crown dependencies did not confirm their approach until the beginning of August. I am very glad that this bit was achieved with them. The remaining amendments tidy up retained direct EU legislation. This and all the amendments in this group are agreed.

We will all look forward to the necessary announcements on the conclusion of successful negotiations with the EU. I contend that they should now become easier following the amendments to the Agriculture Bill to secure a non-regression of standards so necessary to the attainment of a level playing field with Europe.

[Lord Gardiner of Kimble (Con)]

My Lords, I am most grateful to the noble Lords, Lord Teverson and Lord Grantchester. We are into a technical range of amendments. The noble Lord, Lord Teverson, asked about the Faroe Islands. While the 1999 treaty permits either party to license foreign vessels to fish in this small section of shared sea, it does not mean that there are no rules. Many of the licence conditions will be similar for either party issuing a licence. The UK will still exercise standard control and enforcement. The 1999 treaty also includes a commitment by both parties to co-operate on marine protection measures which further preserve this area.

Considerable work has been done. Certain discussions could obviously be undertaken only once we had left the EU, so negotiations with the Faroe Islands Administration have been taking place this year. I reassure your Lordships that in no way does this mean that there is not proper responsible control. As I said in my opening remarks, we are working with the Faroe Islands because both countries share an ambition for strong governance and custodianship of what is a very small but very important part of our UK EEZ. We should be consistent throughout.

I will look at any further points, but I am not going to embark on any commentary on negotiations and standards. This has been well and truly aired. Standards are supreme.

Agriculture Bill

Lord Grantchester Excerpts

Consideration of Commons amendments
Monday 9th November 2020 Lords Chamber

Moved by

[Lord Grantchester]

At end insert “and do propose the following amendments to Amendment 18C—

18E: In subsection (1) leave out “the Secretary of State has first laid a report complying with subsection (2) before Parliament” and insert —
“(a) the Secretary of State has laid a report complying with subsection
(2) before Parliament, and
(b) the House of Commons has approved that report by a resolution on a motion moved by a Minister of the Crown.”

18G: In subsection (7) insert ““Minister of the Crown” has the same meaning as in the Ministers of the Crown Act 1975;””

[Lord Grantchester (Lab)]

My Lords, the Agriculture Bill is before your Lordships’ House once more. We do not apologise for that, as food standards remain a clear priority for the great British public. I declare my interest and my farming background as recorded on the register.

I start by thanking the Minister and the Minister in the Commons, Victoria Prentis, for the extensive discussions conducted with me and my colleagues, my noble friend Lady Jones of Whitchurch, the shadow Defra Secretary of State Luke Pollard and the shadow Minister for Food and Farming Daniel Zeichner, which were conducted immediately before the tabling deadline for amendments in the Commons. They were difficult discussions because the Government would not share the text of their amendment with us, as well as deeming it non-negotiable. We all know that Governments do not conduct negotiations. It was a bit like wandering around in the dark looking for a bag to be able to release the cat. When the full light of day came, there was no cat to be found. However, those discussions identified what the cat should look like, and it was very disappointing to discover that the amendment did not resemble what we thought had been agreed between us.

--- Later in debate ---

[The Deputy Speaker (Baroness Garden of Frognal) (LD)]

I now call then noble Lord, Lord Grantchester, to press or withdraw Motion A1.

[Lord Grantchester (Lab)]

I beg leave to withdraw the Motion.

Motion A1 (as an amendment to Motion A) withdrawn.

Agriculture Bill

Lord Grantchester Excerpts

Consideration of Commons amendments & Ping Pong (Hansard) & Ping Pong (Hansard): House of Lords
Tuesday 20th October 2020 Lords Chamber

[Lord Gardiner of Kimble (Con)]

My Lords, with the leave of the House I will speak also to Motions E, E1, G and G1.

It is entirely right and proper that your Lordships should sometimes ask the other place to think again about a given issue. However, the House of Commons has voted on this matter twice already. An amendment with a similar effect to Amendments 12 and 16 was rejected by the other place in its earlier deliberations on Report, and its view on the noble Lord’s amendment has been made equally plain more recently.

We have looked very carefully at Amendment 16B in lieu, proposed by the noble Lord, Lord Grantchester, which seeks that we ask trading partners to demonstrate equivalence across a range of policy areas. The intention here is well understood, but this amendment still amounts to seeking additional, and potentially expansive, conditions from trading partners. Conditions such as these are not a feature of any other country’s trade policy. I was very struck by this when I took further advice—because obviously this is not my specialist area. I repeat that conditions such as these are not a feature of any other country’s trade policy.

Demonstrating and agreeing equivalence of rules is a complex, technical and resource-intensive task. For example, agreeing equivalence of a range of animal health and food safety rules with New Zealand has taken years. So, in theory, it is possible. However, we believe that doing so in the manner set out here would be disproportionate and in practice would likely mean adding years of such processes ahead of any ratifications. So this amendment could result in pressure to pursue an unrealistic negotiating objective.

On Amendment 18 and Amendment 18B in lieu—Motion G1—in the name of the noble Lord, Lord Curry of Kirkharle, like Amendment 16B, this raises the subject of parliamentary scrutiny. Once again, I make it clear that, under the Constitutional Reform and Governance Act 2010, trade deals under negotiation now and in the future must be laid before Parliament. As was confirmed by the International Trade Secretary in a Written Ministerial Statement on Monday 12 October, there will be a full scrutiny process. I have now read it in full, and I urge noble Lords to read it after this debate, because I thought it was a very comprehensive statement. This includes publishing objectives and initial economic assessments prior to the start of talks, and providing regular progress updates to Parliament; updates on the conclusion of negotiation rounds with the United States and with Australia are recent examples.

We will share a full impact assessment covering the economic, social, environmental and animal welfare aspects of each trade deal. This will be independently scrutinised by the Regulatory Policy Committee. We will also engage closely with the relevant Select Committees and will endeavour to ensure that they have at least 10 sitting days’ advance sight of all agreements, on a confidential basis. The final agreement text will be laid before Parliament for 21 sitting days, giving Parliament time to scrutinise deals.

I am also pleased to be able to say that the Government are already conducting extensive consultation beyond Parliament, with a range of groups in place to advise on trade policy. These include the Department for International Trade’s agri-food trade advisory group, which was renewed in July and which includes over 30 representatives from the food industry, and Defra’s supply chain advisory groups. Of course, this scrutiny is enhanced by the Trade and Agriculture Commission. Recently, the commission launched a call for evidence to 200 relevant parties, covering several questions, including how standards can best be upheld while securing the benefits of trade.

Finally, I should also mention the important role that the FSA and FSS play in regulating imports. Indeed, I concentrated on some of this at a meeting last week with the chair and others in the FSA. The FSA draws on the expertise of 100 scientific experts and support staff and has recruited 35 additional members to its advisory committees. It also takes wider consumer interests into account, such as the impact on the environment, animal welfare and food security, drawing on appropriate expertise and stakeholders to do so.

I can therefore confirm to the noble Lord, Lord Curry of Kirkharle, that the approach envisaged in Amendment 18B is already under way. With these remarks, I beg to move.

[Lord Grantchester (Lab)]

First, my Lords, I apologise to the House that I was not present at Third Reading; I was engaged in Committee on the Trade Bill. I would also have liked to have thanked the Ministers, the noble Lord, Lord Gardiner, and the noble Baroness, Lady Bloomfield, for the patient and receptive way in which they guided the Bill through the House. I also pay special regard to Nathalie Sharman and her Bill team for the excellent advice they gave us on the many calls the Minister facilitated to fill in the gaps in our appreciation.

We are now down to the final key issues on which the future of British agriculture must be built. Once again, I declare my interests as having been in receipt of EU funds, and with interests as recorded in the register.

I thank the Minister for his introduction to this group of amendments and for explaining the Commons’ reasons why it has chosen not to agree with your Lordships’ House. However, the reason given is to misunderstand the amendment. I do not consider the amendment to create new requirements for imports to meet particular standards. Is that really the right answer, when the Government claims that the withdrawal Act puts into UK law all the present standards inherited as a previous member state? Of course, they can no longer claim that, as future standards can be changed through technical statutory orders. This reveals the direction of travel the Government wish to take in agreeing to a US trade deal. We seek to put in primary legislation what the Government have claimed is in the withdrawal Act. The answer comes back, “Why do you wish to legislate for what the Government have no intention of doing?” Well, that is the stated intention. We are all warned of unintended consequences, and it is not the intention of the previous amendment to be misinterpreted. So we have drafted the amendment in lieu for your Lordships’ consideration.

It is clear that the amendment does not exclude cheaper products. It is open to other countries to sell food to the UK, provided that it meets the same legal thresholds in standards that presently pertain in the UK. Certainly, we can raise standards in time, but we cannot lower them. Price is for the market and for consumers to consider.

--- Later in debate ---

Moved by

[Lord Grantchester]

At end insert “but do propose Amendment 16B in lieu—

16B: Insert the following new Clause—
“Duty to seek equivalence on agri-food standards in relation to future trade
(1) When negotiating any international trade agreement containing provisions relating to the importation of agri-food products into the United Kingdom, it shall be a negotiating objective for Her Majesty’s Government to secure terms that provide for equivalence with standards applicable to domestic producers in the areas of—
(a) animal health and welfare,
(b) protection of the environment,
(c) food safety, hygiene and traceability, and
(d) plant health.
(2) Before an international trade agreement can be laid before Parliament under section 20 of the Constitutional Reform and Governance Act 2010 (“the 2010 Act”), a Minister of the Crown must lay before both Houses of Parliament a statement confirming—
(a) that Her Majesty’s Government has, in the Minister’s opinion, fulfilled the requirement under subsection (1),
(b) whether equivalence with domestic standards has been achieved,
(c) any exemptions provided for individual products, and
(d) in relation to subparagraphs (b) and (c), the Minister’s reasons for this being the case.
(3) Subsections (1) and (2) shall not apply if—
(a) the international trade agreement is a continuation or revision of an agreement to which the United Kingdom was a party prior to IP completion day, whether as a direct signatory or by virtue of membership of the European Union, or
(b) the international trade agreement is with one or more least developed countries and, in the Secretary of State’s opinion, seeking equivalence on standards would present an unfair impediment to trade for the country or countries.
(4) In addition to the requirements under the 2010 Act, chapters of a relevant international trade agreement may not be ratified unless the conditions in subsections (5) and (6) have been met.
(5) The condition in this subsection is that the chapters have been approved by a resolution of the House of Commons on a motion moved by a Minister of the Crown.
(6) The condition in this subsection is that a motion for the House of Lords to take note of the chapters has been tabled in the House of Lords by a Minister of the Crown and—
(a) the House of Lords has debated the motion, or
(b) the House of Lords has not concluded a debate on the motion before the end of the period of five Lords sitting days beginning with the first Lords sitting day after the day on which the House of Commons passes the resolution mentioned in subsection (5).
(7) In this section—
“chapters” means any individual section or sections of an international trade agreement;
“international trade agreement” means—
(a) an agreement that is or was notifiable under—
(i) paragraph 7(a) of Article XXIV of the General Agreement on Tariffs and Trade, part of Annex 1A to the WTO Agreement (as modified from time to time), or
(ii) paragraph 7(a) of Article V of the General Agreement on Trade in Services, part of Annex 1B to the WTO Agreement (as modified from time to time), or
(b) an international agreement that mainly relates to trade, other than an agreement mentioned in paragraph (a)(i) or (ii);
“least developed countries” means any country on the United Nations Committee for Development’s List of Least Developed Countries, as amended from time to time;
“Lords sitting day” means a day on which the House of Lords is sitting (and a day is only a day on which the House of Lords is sitting if the House begins to sit on that day);
“Minister of the Crown” has the same meaning as in the Ministers of the Crown Act 1975;
“ratified” has the same meaning as in the Constitutional Reform and Governance Act 2010.””

Agriculture Bill

Lord Grantchester Excerpts

Report stage & Report: 3rd sitting (Hansard) & Report: 3rd sitting (Hansard): House of Lords
Tuesday 22nd September 2020 Lords Chamber

Moved by

[Lord Grantchester]

89ZA: Clause 35, page 32, line 45, at end insert—
“( ) where a product is imported, a statement of compliance with the relevant domestic standards and regulations specified under section (Requirement for agricultural and food imports to meet domestic standards).”

[Lord Grantchester (Lab)]

At the start of the House’s considerations on day three of Report, I declare my interests as stated in the register, and that I am in receipt of funds under the CAP system.

I rise to move Amendment 89ZA in my name, and I thank my co-signatories to Amendment 93—the noble Baronesses, Lady Bakewell and Lady Boycott, and the noble Lord, Lord Krebs—for transferring their support to this amendment as well. This amendment relates to subsection (2) of Clause 35, “Marketing standards”, in Part 5. That imported food products comply with British domestic standards needs to be backed up with certainty for the British consumer. Clause 35 also specifies Schedule 4, where agricultural products are made relevant to marketing standard provisions.

It is vital that the Bill sets the vision for the future approach of the UK’s agricultural and food policy. It can also signal to existing and future trading partners that the UK is committed to championing high quality and high standards in food around the world. While the establishment of the Trade and Agriculture Commission may have calmed some people, the temporary and limited nature of that body—which we will discuss in a later group of amendments—has served only to energise others.

There was a lot of debate in Committee on labelling, and this will be reflected today in discussions on amendments in the next group. In the UK, there are several quality schemes—the Red Tractor mark, Freedom Food, British Lion, organic and many others—which allow consumers to know at a glance that the products they are purchasing meet certain requirements. While these should continue to act as identifiers of quality British product, rather than being extended in their scope, Amendment 89ZA would allow the department to introduce the merits of some form of “meeting UK standards” badge. However, labelling would not work universally in practice, as 50% of food is consumed outside the home. The importance of the food service sector has been highlighted repeatedly throughout discussions on the Bill. That is why the amendment is linked intrinsically to Amendment 93 in this group, which I shall speak to now.

I am grateful that the Government agree that Amendment 93 is understood to be consequential to Amendment 89ZA. I begin by thanking the noble Baroness, Lady Bakewell of Hardington Mandeville, for adding her name to this amendment, signalling how important this is to her and her party. I also thank the noble Lord, Lord Krebs, and the noble Baroness, Lady Boycott, for consistently championing high standards in production methods, the environment and the importance of nutrition.

The strong theme running through your Lordships’ deliberations on the Bill is that of standards. This is not just a matter of food safety. Standards are important in husbandry methods—agricultural, horticultural and forestry—environmental and climate aspects, food nutrition and labelling, and imported foodstuffs marketed in this country. This group of amendments will determine how the UK’s standards will be set at the outset of our EU exit, and how they will be maintained.

Low-quality food cannot be allowed to jeopardise rural communities by undercutting UK farmers with product made using methods that would be illegal here. The National Farmers’ Union mounted a campaign on production standards that attracted over 1 million signatures. A Which? report found that British people really care about their food and expect that the UK will maintain high standards and, with time, enhance them—95% of respondents agreed with such a statement.

Consumers care about the welfare implications of, for example, US production methods that necessitate that chickens need chlorination to be made safe. They do not want chlorinated chicken or hormone-treated beef to be permitted to be imported and available on supermarket shelves. Voters who voted to get Brexit done can be forgiven for thinking that this was going to be enshrined in legislation—after all, it was in the Conservative Party manifesto. Now certainly is the chance to get it done here. In the Commons, a previous Conservative Government Minister, Neil Parish, proposed a similar amendment. He is now chairman of the prestigious Environment, Food and Rural Affairs Select Committee.

This amendment makes various key improvements. It prevents any agri-food chapters of a trade agreement being ratified unless, first, the Secretary of State has laid before Parliament a statement confirming that any products imported into the UK will meet the minimum production standards of British law at the time of entry into the country. Secondly, the Secretary of State must lay regulations specifying a process for determining that the standards to which an imported food product has been produced or processed

“are equivalent to, or exceed, the relevant domestic standards and regulations in relation to animal health and welfare, protection of the environment, food safety, hygiene and traceability, and plant health”.

Thirdly, the House of Commons must approve the relevant trade deal chapters, and your Lordships’ House must debate them, in much the same fashion as it did the Brexit withdrawal deal.

Supermarkets have also endorsed the commitment to protect British food standards from dilution in trade deals. Waitrose and Aldi have committed to not stock lower-standard imported food. Just recently, the first stage of the Defra-commissioned national food strategy, chaired by Henry Dimbleby, also called for such a verification programme of core standards for imported food.

I turn now to Amendments 94 to 96, in the name of the noble Viscount, Lord Trenchard. His explanatory statements claim that Amendment 93 as drafted is inconsistent with the WTO’s sanitary and phytosanitary agreement as it refers to domestic, not international, standards. I hope noble Lords will indulge me if I read a short extract from the WTO’s own guidance on SPS agreements:

“The Agreement on the Application of Sanitary and Phytosanitary Measures sets out the basic rules for food safety and animal and plant health standards. It allows countries to set their own standards. But it also says regulations must be based on science. They should be applied only to the extent necessary to protect human, animal or plant life or health. And they should not arbitrarily or unjustifiably discriminate between countries where identical or similar conditions prevail. Member countries are encouraged to use international standards, guidelines and recommendations where they exist. However, members may use measures which result in higher standards if there is scientific justification. They can also set higher standards based on appropriate assessment of risks so long as the approach is consistent, not arbitrary.”


Finally, the last part says:

“The agreement still allows countries to use different standards and different methods of inspecting products.”

--- Later in debate ---

Given the measures outlined, the Government believe that sufficient protections are already in place. Along with very respected and independent bodies, whose duties I have spent some time outlining, we are committed to ensuring that trade agreements do not compromise our high standards, and we will continue to take into account the views of relevant stakeholders across the food supply chain on the impact of trade deals. We already have in place in the UK rigorous processes to protect our standards. With that, I very much hope that the noble Lord will feel able to withdraw his amendment.

[Lord Grantchester (Lab)]

I am very grateful to all noble Lords who have spoken in this debate. I am encouraged by all the support I have received, and many cogent points have been made. I know that several noble Lords, especially from the Cross Benches, have been unable to speak today, which has been very unfortunate at a very crucial stage of the Bill. Their contributions would have been very worth while.

I thank the Minister for his response. I know from previous meetings that this is a subject that he feels very passionate about, and he has done his best to present the line endorsed by the Secretary of State. I did my best to count, but I am not sure that I heard full cogent answers to the six tests asked by the noble Lord, Lord Krebs, in his remarks.

Remarkably, this is about the Government being unwilling to enact all of their own manifesto promises, due to their ideological obsession with realigning with a trade deal with the US—a deal which increasingly looks to be in peril, given the recent uproar over the internal markets Bill, which threatens to break international law, and the consequential interventions from members of the US Senate and Congress.

The Minister mentioned that the European Union (Withdrawal) Act carries into UK law the existing safeguards from being a member state. However, these provisions can be quickly and dramatically weakened through secondary legislation, which carries far less public and parliamentary scrutiny and amendment, and I would suggest that the noble Lord and his department are aware of this. If the Government think they can break international law, they will not worry about breaking electoral promises.

The most secure way to protect standards is to put them directly into the Bill. Without that, negotiations are left wide open to pressure for Ministers to agree that a trade deal is good for Britain on balance, while sacrificing what so many hold so dear: how we produce our food. UK standards will not be protected through higher tariffs, to price out lower-standard imports. This will merely invite tit-for-tat tariff wars, damaging UK exports. Stability for food producers and a supply chain are best achieved by certainty, by writing our standards into law.

The National Farmers’ Union has now come out and called for support for this amendment. When it comes to trade standards and taking legislative action to prevent the importing of inferior food products that undermine our own standards, there has been an unprecedented alliance between farmers, consumer groups, charities such as the RSPCA and the National Trust, supermarkets, the Green Alliance UK, and even a previous Conservative Secretary of State for Defra.

I have listened very carefully to the noble Viscount, Lord Trenchard, and I do not agree that there is a contradiction between subsections (2)(a) and (2)(b) in the amendment. After all, imports should also comply with WTO and SPS agreements. I maintain that our amendment does not fall foul of WTO regulations, and that it stands up.

I wish to say to the noble Baroness, Lady Noakes, when she says that the amendment is unnecessary as it is in the Government’s intention: what of other Governments? Her disagreement falls.

The EU directorates on behalf of member states already come to audit and do many of the actions that the noble Lord, Lord Lilley, claims are not undertaken internationally—those of inspecting food and denying access to the EU market, which those that do not comply have to abide by. We must be assured this continues. I also thank my noble friend Lord Rooker, with his ministerial experience, for his explanations of the vital work of the Food Standards Agency.

This is a case of delivering on promises made to the British people and preserving the high standards that make British agriculture what it is: that is, among the best in the world. I call on all Members of your Lordships’ House to support the amendments, starting with Amendment 89ZA. I now wish to test the opinion of the House.

--- Later in debate ---

[Lord Grantchester (Lab)]

I thank the noble Lords who have returned with these amendments from the debates in Committee on provisions in Part 5, Clauses 35 to 37, on marketing standards. Regulations around marketing, labelling, traceability, country of origin and GI schemes remain critical to providing accurate and appropriate information to the consumer.

The complexities behind the list of EU Commission delegated directives cover various product sectors, including wine, and are the subject of Amendment 89A, in the name of the noble Lord, Lord Holmes. These regulations under the withdrawal Act also include country of origin, protection of designations of origin and geographical indicators, and traditional terms are important to facilitate frictionless trade with the EU and enhance the future of UK exports, which have been established so successfully.

The noble Lord, Lord Tyler, and the noble and learned Lord, Lord Wallace, return with their Amendment 92A on the importance of geographical indicator schemes not only for fantastic products for Cornwall but for many artisan food products, such as Lincolnshire Poacher cheese and Melton Mowbray pies. The House also discussed these schemes on the Trade Bill proceedings in the last Session, as spoken to by the noble Lord, Lord Tyler. The adding of value to local specialisms is a crucial element in encouraging skill, pride and prestige in rural entrepreneurship. We agree that it is of considerable importance that a successful trade deal is concluded with the EU. It is also great that my noble friend Lord Foulkes is able to be with us in the Chamber; his words were gin-clear on the merits of Scottish produce.

These regulations will be subject to the affirmative approval procedure, which should not only contain an impact assessment but be subject to consultation. I thank the noble Baroness, Lady Neville-Rolfe, the noble Earl, Lord Lindsay, and the noble Lord, Lord Curry, for highlighting the importance of a widespread and exhaustive consultation on their Amendment 91. Alteration of existing requirements should proceed only on the basis of proper and widespread consultation with producers, the supply chain and the consumer to ensure an appropriate balance.

I am sure that the Government appreciate the merit behind these amendments and that the Minister will provide additional reassurances to satisfy the House.

[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, I will start with Amendment 89A. Marketing standards establish detailed rules on the quality of agricultural products and the provision of product information to consumers. They are intended to make sure that products offered to consumers are accurately and consistently labelled and of acceptable quality, and that unsatisfactory products are kept off the market. They are overall in the interests of producers, traders and consumers. They encourage high-quality production, improve profitability and transparency and protect consumer interests. At present, certain agricultural products marketed in the EU must conform to marketing standards and associated labelling requirements set out in EU law. The marketing standards apply at all marketing stages, including import and export.

The noble Lord, Lord Holmes, asked why we could not do nothing. We all despise unnecessary bureaucracy, but VI-1 forms are needed until the end of the transition period under the terms of the withdrawal agreement. We will be looking at these rules again at the end of the transition period. I reassure him on digitalisation: the administration of maintaining marketing standards of imported wine products, including the digitalisation of VI-1 forms, is included in the current scope of Clause 35(1). These provisions do not therefore need to be explicitly added into the clause. The scope to replace VI-1 forms with an electronic document is also covered under retained EU law, specifically Article 27 of retained EU delegated regulation 2018/273. Therefore, the purpose of this amendment is already covered. The Government cannot digitalise unilaterally, but it is already an option under retained EU law, and we are looking at introducing it. It is likely that South Africa will be the first partner we seek to do this with at the end of the transition period.

I turn to Amendment 91. Clause 35 will give the Secretary of State the power to make regulations and amend existing EU and domestic legislation concerning marketing standards to ensure that they are tailored to meet the needs of domestic farmers, retailers and consumers. A full review of the marketing standards is going to be undertaken. As part of this, detailed policy thinking, stakeholder engagement and consultations will need to take place. Any changes would be made with the purpose of tailoring the marketing standards to fit the needs of the domestic farming sector.

I can confirm unequivocally that any use of the powers in Clause 35 would be covered by an existing duty to consult. As for the question about the bias towards consultation, I say that the Government’s preference is to consult the public on these matters. We would never rely solely on the views of representative bodies, and we will not bias our consultations towards one group.

Marketing standards are covered by food law, and a duty to consult is contained in Article 9 of regulation 178/2002. This regulation states that

“There shall be open and transparent public consultation, directly or through representative bodies, during the preparation, evaluation and revision of food law, except where the urgency of the matter does not allow it.”


This regulation will become retained EU law via the European Union (Withdrawal) Act 2018.

One of the principles of good law making is not to repeat law which already exists, in order to protect the coherence of the statute book. We are aware that there is an exemption for urgent situations in Article 9 of Regulation 178/2002 and I place on record that there are no plans to make any urgent amendments using the Clause 35 power. Urgent changes would usually be made under food law instead. There are specific regulations which cover food information and safety and there is no future intention to broaden the powers in Clause 35 to cover any such areas.

It is standard procedure that a summary of the responses to a consultation be published on GOV.UK within 12 weeks of it closing. Further to this, any statutory instruments made using the power will also be accompanied by an Explanatory Memorandum and a proportionate analysis or full regulatory impact assessment where the net direct cost to business is above £5 million. The Explanatory Memorandum will include details on the outcome of any consultations which have taken place. A more detailed analysis of the consultation outcome will also be published on the departmental website at the time the statutory instrument is laid before Parliament. The impact assessment will provide the rationale for government intervention, details of all the options considered and the expected cost and benefits, particularly for businesses. Clause 35 is subject to the affirmative procedure. Any statutory instruments which are introduced must be actively approved by both Houses of Parliament. This procedure ensures that Parliament can properly scrutinise the statutory instrument before it comes into force.

Turning to Amendment 92A, I assure the noble and learned Lord, Lord Wallace of Tankerness, that we fully expect all 88 geographical indications from the UK to remain protected in the EU after 31 December this year. I understand the point made by the noble and learned Lord, and the noble Lord, Lord Foulkes, about the relevance of these to the Scottish economy, particularly whisky and smoked salmon. I am not sure I got the reference to potatoes. Geographical indications do not have to originate from EU member states to be protected under the EU’s geographical indications scheme. The EU currently protects products from many non-EU countries such as Japan and China.

If the EU wanted to remove UK geographical indications from its register, it would have to go through the burdensome process of changing its rules. Of course, the Government cannot guarantee what the EU will do, but it has given no indication whatever that it is considering such changes. It would be, in the words of the noble and learned Lord, “capricious” of the EU to try to do so.

If the UK does not secure a new trade agreement with the EU, we will, under the withdrawal agreement, continue to protect EU GIs in the UK. There would therefore be no incentive for the EU not to reciprocate. The noble and learned Lord, Lord Wallace, and the noble Lord, Lord Foulkes, asked me to be more specific on that point. I cannot, because we are in the process of negotiating these issues. The UK is definitely not seeking to loosen its GI rules. GIs are very important to the UK and the Government will establish robust GI schemes at the end of the transition period. All UK GIs will continue to be protected in the UK from 1 January 2021. The Government’s objective in trade negotiations with the EU will be to secure the best outcome for UK GIs and, obviously, the UK economy as a whole.

I hope that I have given enough reassurance, and that the noble Lord, Lord Holmes of Richmond, will feel able to withdraw his amendment.

--- Later in debate ---

Moved by

[Lord Grantchester]

93: After Clause 42, insert the following new Clause—
“Requirement for agricultural and food imports to meet domestic standards
(1) Chapters of an international trade agreement that contain provisions relating to the importation of agricultural and food products into the United Kingdom may not be ratified unless the conditions in subsections (2) to (5) have been met.(2) The condition in this subsection is that a Minister of the Crown has laid before Parliament a statement confirming that—(a) the agreement contains an affirmation of the United Kingdom’s rights and obligations under the World Trade Organisation Sanitary and Phytosanitary Agreement, and(b) any agricultural or food product imported into the United Kingdom under the agreement will have been produced or processed according to standards which, on the date of their importation, are equivalent to, or exceed, the relevant domestic standards and regulations in relation to—(i) animal health and welfare,(ii) protection of the environment,(iii) food safety, hygiene and traceability, and(iv) plant health.(3) The condition in this subsection is that the Secretary of State has by regulations specified—(a) the process by which the Secretary of State will determine—(i) that the standards to which any agricultural or food product imported into the United Kingdom under a trade agreement is produced or processed are equivalent to, or exceed, the relevant domestic standards and regulations in relation to animal health and welfare, protection of the environment, food safety, hygiene and traceability, and plant health, and(ii) that the enforcement of standards in relation to any product under subsection (3)(a)(i) is at least as effective as the enforcement of the equivalent domestic standards and regulations in the United Kingdom;(b) the “relevant domestic standards and regulations” for the purposes of subsections (2)(b) and (3)(a)(i).(4) The condition in this subsection is that the chapters have been approved by a resolution of the House of Commons on a motion moved by a Minister of the Crown.(5) The condition in this subsection is that a motion for the House of Lords to take note of the chapters has been tabled in the House of Lords by a Minister of the Crown and—(a) the House of Lords has debated the motion, or(b) the House of Lords has not concluded a debate on the motion before the end of the period of five Lords sitting days beginning with the first Lords sitting day after the day on which the House of Commons passes the resolution mentioned in subsection (4). (6) A Minister of the Crown may, where the Minister considers appropriate, make regulations amending any regulations made under subsection (3).(7) Regulations made under subsection (3) or (6) are subject to affirmative resolution procedure.(8) In this section—“chapters” means any individual section or sections of an international trade agreement;“international trade agreement” means—(a) an agreement that is or was notifiable under—(i) paragraph 7(a) of Article XXIV of the General Agreement on Tariffs and Trade, part of Annex 1A to the WTO Agreement (as modified from time to time), or(ii) paragraph 7(a) of Article V of the General Agreement on Trade in Services, part of Annex 1B to the WTO Agreement (as modified from time to time), or(b) an international agreement that mainly relates to trade, other than an agreement mentioned in paragraph (a)(i) or (ii);“Lords sitting day” means a day on which the House of Lords is sitting (and a day is only a day on which the House of Lords is sitting if the House begins to sit on that day);“Minister of the Crown” has the same meaning as in the Ministers of the Crown Act 1975;“ratified” has the same meaning as in the Constitutional Reform and Governance Act 2010;“World Trade Organisation Sanitary and Phytosanitary Agreement” means the agreement on the Application of Sanitary and Phytosanitary Measures, part of Annex 1A to the WTO Agreement (as modified from time to time);“WTO Agreement” means the agreement establishing the World Trade Organisation signed at Marrakesh on 15 April 1994.”

--- Later in debate ---

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, it is a pleasure to follow the noble Baroness, Lady Young of Old Scone, and I agree with her comments on the TAC. This group of extremely important amendments completes our debates on this issue. A large number of your Lordships have spoken knowledgeably and passionately on the subject.

During previous debates on this subject, many noble Lords reiterated the inadequacies of the Trade and Agriculture Commission as currently proposed. It is advisory only; there is no compunction on the Government to follow its advice or recommendations. The noble Baroness, Lady McIntosh of Pickering, asked the Minister whether the Government are satisfied with the temporary commission or whether an amendment to make it permanent would be better, so that it had some teeth and would therefore be able to respond to the first Dimbleby report.

There are no members representing the views of environmentalists or animal welfare or consumer groups. Can the Minister say how the commission as set up will inspire and maintain the confidence of the public, given that its chair referred to public concern over chlorinated chicken and hormone-treated beef as “alarmism”? Making such a statement does little to reassure the public of his independence.

Amendment 101 from the noble Lord, Lord Curry of Kirkharle, sets out how the TAC should be established and operate. This is very specific, and I will avoid making a Second Reading speech. It is bizarre that the Government do not wish the TAC to continue its work into the future. This amendment will not create a barrier to trade. The majority of farmers’ income will come from producing and trading food.

The noble Lord, Lord Randall of Uxbridge, in his Amendment 102, seeks to correct the deficiencies of membership of the original commission and ensure a more inclusive membership. This is an amendment to the splendid amendment of the noble Lord, Lord Curry of Kirkharle. The noble Earl, Lord Dundee, has similarly spoken to his amendment on membership of the TAC.

My noble and learned friend Lord Wallace of Tankerness has reminded us of the view of the NFU in Scotland that the standards of our farmers should not be undercut by trade deal standards and should be safeguarded.

The noble Lord, Lord Rooker, and the right reverend Prelate the Bishop of St Albans made powerful speeches. The noble Lord, Lord Rooker, reminded us that the NFUs of England, Scotland, Wales and Northern Ireland, together with the CLA, all support this amendment, which respects the primacy of Parliament.

With a few notable exceptions, every speaker is in favour of the Trade and Agriculture Commission, which had enormous support during previous stages of the Bill.  Ensuring the TAC is independent, representative and has the necessary legislative backing is vital if it is to be successful.   

 This group of amendments is all about protecting farmers and ensuring that the public can feel confident in the food we buy and eat. I feel certain that the Minister understands the strength of feeling in the House on this issue. I trust that his response to the questions posed this evening will be positive, and that those of us concerned about this subject can be reassured. And I apologise for my croaky voice.

[Lord Grantchester (Lab)]

This has been another good debate on another key issue in the Bill. I thank all noble Lords who have spoken on these amendments, which cover the key variances of opinion on approaches to food standards for imported product through the mechanism of a Trade and Agriculture Commission.

In Committee, I expressed anxiety about the approach of a Trade and Agriculture Commission, should this be the only way that UK food and production standards could be maintained as future trade deals are negotiated. From these Benches, we wanted to secure the enactment of the UK’s minimum level of food standards by enshrining it in legislation. That your Lordships’ House passed this measure earlier tonight has added to our confidence that the House of Commons is being asked to think again on this issue.

This allows us to approach these amendments with confidence that the Trade and Agriculture Commission could provide valuable insights and independent analysis on all trade deals concerning food standards, which would encompass the equivalents of production methods, welfare standards and environmental conditions that apply in the UK.

There are essentially two amendments from two very eminent Members of your Lordships’ House, although they are subject to further amendments. Amendment 97 is led by the noble Baroness, Lady McIntosh of Pickering. She has come into the House from the Commons, having served as a very successful chair of the other place’s Environment, Food and Rural Affairs Select Committee. I pay tribute to the way she steered that prominent committee.

Amendment 101, also with amendments, is proposed by the noble Lord, Lord Curry of Kirkharle, and others. It has the backing of the National Farmers Union, which has been prominent in discussions throughout proceedings both here and in the Commons. The NFU could not team up with a better proponent for agriculture. The noble Lord, Lord Curry, spoke of his reflections on his career in agriculture. Over many years, he and I met at several key moments of agricultural policy developments. They might be designated as crossroads for agriculture. Here is another: he will probably say that he has met me too often.

While I commend the amendment in the name of the noble Baroness, Lady McIntosh, we much prefer the reconsidered amendment in the name of the noble Lord, Lord Curry, and I am grateful for the remarks of my noble friend Lady Henig in her summary of the situation. We will support Amendment 101 rather than Amendment 97, should that be pressed to a vote.

We welcome the developments that took place over the summer and I can signal that we will approve the amendment, with or without the further amendment in the name of the noble Lord, Lord Randall of Uxbridge. Amendment 102 widens the representation on the commission and further enshrines its permanence beyond the temporary nature that was the Government’s very limited concession on this proposal. That amendment provides better clarity on Amendment 101 than Amendment 104 in the name of the noble Earl, Lord Dundee.

The amendment in the name of the noble Lord, Lord Curry, puts the commission on a statutory and permanent basis, with key powers to make recommendations to the Government and Parliament on all future trade deals. This key improvement should be taken back to the Commons for reconsideration, underlined by the widespread approval of this House. This key mechanism to adjudicate independently on trade deals is needed for consumer confidence and demanded by farmers, endorsed by all their unions in all parts of the United Kingdom. The NFU has secured the agreement of the British public through a petition signed by over a million people.

The potential loophole that exists for food that goes into the food service sector needs to be plugged by the commission. We would contend that your Lordships should return this amendment to the Commons with a powerful majority. The commission could build up considerable expertise that will be crucial for the future of food standards and an excellent resource in parliamentary scrutiny of future trade deals.

[Lord Gardiner of Kimble (Con)]

My Lords, I thank noble Lords for contributing to another thought-provoking debate. I will deal with the amendments as one because they are so interrelated.

As noble Lords will be aware, the European Union (Withdrawal) Act 2018 retains in law our standards on environmental protections, animal welfare, animal and plant health, and food safety at the end of the transition period. The independent advice of our food regulators, the FSA and FSS, and the rigorous processes they have developed, will continue to ensure that all food imports into the UK are safe and meet the relevant UK product rules and regulations, including imports under new free trade deals. A range of other government agencies, such as the Veterinary Medicines Directorate, the Health and Safety Executive and the Animal and Plant Health Agency, will ensure that the full range of standards and import requirements within their remits are upheld.

I am sure that the noble Lord, Lord Trees, will remember what I said in response to an earlier group of amendments, but I will repeat it. The FSA has doubled the number of risk assessors since 2017. It can draw on the expertise of 100 scientific experts and support staff and has recruited 35 additional members to its advisory committees. It also takes into account wider consumer interests such as the impact on the environment, animal welfare and food security.

The noble Lord, Lord Trees, also spoke about the Japan trade deal. The audit and verification function is currently being developed within Defra and will be in place and operational before the end of the transition period. All existing import standards will continue to apply to the new Japan trade deal, as they will for other trade agreements.

In addition, a range of established stakeholder groups is already in place to advise the Government on trade policy development. These include the DIT’s agri-food trade advisory group, which has a recently renewed membership of more than 30 representatives from the industry who will provide close technical and strategic advice to the Government as negotiations progress. This approach has been welcomed by these stakeholders as a way to input meaningfully into ongoing trade talks. Defra also continues to run various supply chain advisory groups, such as the arable group, the livestock group and the food and drink panel. These groups already provide valuable expert advice to help the Government develop trade policy and they will continue to do so.

In addition to this, the Government listened closely to valuable feedback from Parliament and stakeholders, most notably the NFU—of which I should declare my membership—to strengthen these existing arrangements. In July we established the Trade and Agriculture Commission, which operates under the auspices of the Department for International Trade. Defra is closely involved in this work and Defra officials are part of the commission’s secretariat.

Agriculture Bill

Lord Grantchester Excerpts

Report stage & Report: 2nd sitting (Hansard) & Report: 2nd sitting (Hansard): House of Lords
Thursday 17th September 2020 Lords Chamber

[Baroness Scott of Needham Market (LD) [V]]

My Lords, in 2016, before the referendum, I chaired the EU Energy and Environment Sub-Committee. We carried out an inquiry into resilience in agriculture, so I can say from the beginning that I agree with the noble Lord, Lord Carrington, that insurance is quite often not an appropriate solution for farmers, however it might appear to be so superficially.

Having said that, I find these amendments somewhat problematic. I will explain why. First, it is because the Bill as drafted talks about the disturbances being acute. The amendments would add “chronic” to the description of the disturbances, but all the interventions have been about the results of that disturbance. To my mind, that is quite an important distinction, because you could have a short-term problem with a long-term impact. I am not clear whether, as drafted, this talks about the original problem or the impact.

I am also genuinely unsure why existing provisions are not good enough. I heard with some interest what the noble Baroness, Lady McIntosh of Pickering, said, so I look forward to the Minister clarifying that, but this is one area where I feel the Government have farmers’ backs in the event of these sorts of disturbances. I do not recall seeing anything from the NFU on this so I am not sure it regards it as a big issue, but perhaps when he winds up the noble Lord, Lord Carrington, will enlighten me on that.

I am reassured that the amendment would provide a power, not a duty, because a duty to continue to offer support for a “chronic” disturbance could be for years and years. I do not think that would be appropriate; I would be pleased to see it as a power and not a duty. Nevertheless, the Government can move quickly when they need to, as they did in bringing in the furlough scheme, for example. I am not entirely convinced by these amendments, I am afraid.

[Lord Grantchester (Lab)]

I thank the noble Lord, Lord Carrington, for returning to the subject of crisis management in his amendments. The clauses in Chapter 2 bring further into domestic legislation the powers that the European Commission exercised to provide emergency assistance in extreme market circumstances. The Secretary of State may modify the retained direct EU legislation from the withdrawal Act. This would usually involve intervention on storage. At this stage, once again, as I join another day’s proceedings on the Bill, I declare my interest as recorded in the register as being in receipt of funds from existing systems derived from the CAP.

We noted the Minister’s reply in Committee that

“farmers already manage the effects of fluctuating everyday weather conditions”,

and that the existing powers contained here and elsewhere

“are sufficiently broad to ensure that agricultural producers will be covered”

should it be necessary to provide emergency financial assistance

“due to exceptional market conditions”—[Official Report, 21/7/20; col. 2184.]

brought about by unforeseen economic, environmental or welfare factors.

The term “chronic conditions” is interesting, as this would suggest exceptional circumstances becoming endemic and longer lasting. This would suggest that the market would need to adapt on a wider basis after any exceptional market disturbances caused by economic or environmental factors had been provided. It would suggest that the adverse effect on the price achievable for agricultural products may not return to normal. This circumstance would become subject to far more extensive dialogue and analysis, and when such a situation may warrant the actions wanted by the noble Lord, Lord Carrington, needless to say it would be controversial and subject to much debate.

We understand that Welsh Ministers are aware of these details and have not drawn attention to any aspect with which they are uncomfortable. The Minister has advised the House that the Welsh Government have agreed to these provisions; that would be our position also. We are generally content with the current drafting. I thank the noble Baroness, Lady Scott, for her remarks, which reflect many of our thoughts.

[Baroness Bloomfield of Hinton Waldrist (Con)]

I thank noble Lords for their contributions to this short debate.

I recognise the concern to ensure that farmers in England and Wales are protected against acute and chronic disturbances, including those caused by natural phenomena. The exceptional market conditions powers could be used to address acute and severe market disturbances caused by natural phenomena, such as extreme weather, so long as there is an adverse effect on the price achievable for one or more agricultural products. I hope that that reassures my noble friend Lord Northbrook.

The UK Government and Welsh Ministers are confident that the existing powers are sufficiently broad to ensure that agricultural producers will be covered should they need financial assistance due to exceptional market conditions caused by economic, environmental or other factors. The current Covid-19 pandemic is a disturbance caused by environmental factors and is exactly the type of exceptional circumstance that these new powers are intended to address. We could not have foreseen that this pandemic would be as wide-ranging or prolonged as it has been, and farmers could not have been expected to prepare for the disturbances in daily life that it has caused. I feel confident in saying that if these exceptional market conditions powers were at our disposal now, the Government could have used them to support farmers during these difficult times.

The particular powers in respect to England, in Clauses 18 and 19, and in respect to Wales, in paragraphs 6 and 7 of Schedule 5, are framed to deal with unforeseen short-term shocks to agricultural markets rather than chronic conditions. These powers allow Ministers to act swiftly to deal with a crisis situation. These amendments would lower that bar and risk creating open-ended powers that allow the Secretary of State to make payments to farmers in much wider and undefined circumstances.

In most cases, farmers already manage the effects of fluctuating weather conditions. There are also powers in existing legislation that allow the Government to act in exceptional circumstances to support farmers in the event of extreme weather conditions. For example, the Natural Environment and Rural Communities Act 2006 could be used to make one-off payments to farmers affected by extreme weather. In response to recent flooding, as my noble friend Lady McIntosh acknowledged, the UK Government launched a new farming recovery fund for England, using powers under the NERC Act.

I have some details about the fund because I was interested to find out why some claims were not being met. I am afraid that I do not have the numbers here for my noble friend but I commit to writing to her with the details of the scheme, which are quite complex, and to furnish the numbers on how many grants have been made available. When I write, I will of course let noble Lords have a copy.

The Government want to encourage farmers to manage their own risk and become more resilient to foreseeable and longer-term disturbances. Elsewhere in the Bill, there are provisions to support farmers to improve their productivity, as well as to provide financial assistance for the delivery of public goods. For example, the Government will help farmers to invest in equipment, technology and infrastructure, and will support high-quality research to promote innovation and productivity in agriculture, horticulture and forestry. Part 3 also sets out powers to strengthen fairness and transparency in the supply chain. This will enable food producers to respond more effectively to market signals, strengthen their negotiating position at the farm gate and seek a fairer return.

I hope that I have given sufficient reassurance and that the noble Lord will feel able to withdraw his amendment.

--- Later in debate ---

[Baroness Scott of Needham Market (LD) [V]]

My Lords, I had an exchange of emails yesterday with the noble Lord, Lord Empey, to make sure that I understood his amendments correctly. He basically put it to me that he wishes to place an obligation on government rather than for it to have a discretion, which is as the Bill is drafted, to make regulations on fair dealing. I have told him that I support the fair dealing provisions in the Bill—I said so in Committee—particularly with regard to food waste, which is often in effect forced on farmers, making them less competitive and environmentally more wasteful, by the requirements of supermarkets, which I do not think is fair dealing. I am all in favour of that, but I am less convinced about the placing of such an obligation on Ministers. However, these issues can be well discussed in the next set of amendments, about the role of the Groceries Code Adjudicator.

[Lord Grantchester (Lab)]

I thank the noble Lord, Lord Empey, for his amendments, for the significance in which he holds them as necessary for the Bill, and for leading the House in returning to Clause 27 on fair dealing obligations. I am sorry he has not been able to stay tonight to make his case due to personal circumstances, and I hope all continues well. Nevertheless, I thank the noble Baroness, Lady McIntosh, for stepping in and moving his amendment. I concur with much of what she said. The distribution of market returns from food between the primary producer and the rest of the supply chain, especially in regard to the retail sector, certainly appears unbalanced. The proportion returned to the farmer has steadily declined over many years.

That regulation is needed to ensure further provision to introduce a greater measure of fair dealing obligations on the supply chain is recognised in Clause 27. Following the establishment and workings of the Groceries Code Adjudicator, the specific task of monitoring relationships between the UK’s largest supermarkets and their direct suppliers has proved very effective. I would go so far as to say it has proved critical in delivering effective change down the supply chain.

We would not be able to support the noble Lord should he wish to press his amendment. The specific details of each statutory code are being developed in consultation with industry and will be set out in secondary legislation. It will be extended across all sectors of agriculture. This is already in progress.

[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, I am grateful to my noble friend Lady McIntosh for introducing this amendment on behalf of the noble Lord, Lord Empey. I confirm that my noble friend Lord Gardiner has agreed to meet the noble Lord, Lord Empey, at the earliest opportunity.

There is no doubt that the Government will use these powers. The introduction of fair dealing obligations is vital in the creation of a more equitable supply chain. This is a point on which there is wide agreement. However, the Government believe it is equally important that these obligations are appropriate and proportionate and produce the right outcomes.

To ensure this, the Government intend to consult industry before regulations are made, to ensure that they are properly tailored for the issues at hand. In this regard, a UK-wide consultation exploring contractual issues in the dairy sector has recently been concluded. The consultation invited a broad range of views about future regulations, asking specific questions about various issues. Some of these issues, such as contractual exclusivity, are almost unique to the dairy sector. The Government intend to repeat this approach for any future exercise of the powers in Clause 27, allowing the views from industry and other stakeholders, often about very detailed sector-specific issues, to inform final decisions.

The introduction of blanket obligations across the whole of UK agriculture would hinder the ability to reflect the specific nuances of each sector and potentially fail to address the specific problems experienced by particular types of producer. Also, given that certain agricultural sectors are far better integrated than others, comprehensive obligations could ultimately lead to provisions being introduced into sectors where they are simply not required.

I hope I have given sufficient reassurance and ask my noble friend to withdraw the amendment on behalf of the noble Lord, Lord Empey.

--- Later in debate ---

Moved by

[Lord Grantchester]

63: Clause 27, page 23, line 15, leave out “a specified person” and insert “the Groceries Code Adjudicator”
Member’s explanatory statement
This amendment is intended to ensure that the role of regulating agricultural contracts is given to the Groceries Code Adjudicator’s office.

[Lord Grantchester (Lab)]

I thank the noble Baroness, Lady Bakewell of Hardington Mandeville, the noble Lord, Lord Curry, and my noble friend Lord Whitty for adding their names to this amendment and to many of my following amendments, which introduce the office of the Groceries Code Adjudicator as the mechanism by which these fair dealing provisions under Clause 27 will be administered. At this stage I will mention that the noble Lord, Lord Curry, asked me to express his disappointment that he has had to leave tonight because of the late sitting of our proceedings; he cannot get home without leaving immediately. He would have liked to have been present to make his remarks on this important series of amendments to this clause.

I introduced these amendments in Committee as probing amendments to draw out from the Government how they expected to take these provisions forward. As with many features of this framework Bill, so much of the detail and the governance arrangements are not being made explicit in the Bill.

That these provisions have been recognised as needed and necessary to the better conduct of a fair market is something that the Government can be congratulated on. The debate in Committee underlined how effective the GCA Act has been in setting out and policing business practice in the GSCOP, which now regulates the behaviour of the retail industry, which must abide by it in its relationships with its direct suppliers. There was universal praise for Christine Tacon on how she, as the adjudicator, successfully encouraged effective change to become embedded down the supply chain.

In response, the Minister explained that his department, Defra, would be the lead department in delivering these obligations. The Government intended to commence these regulations agricultural sector by sector, starting with the dairy industry. This has already started, with a consultation on the operation of contracts that is drawing to a close next week, as I understand it, on 24 September—that is, three months after the opening of the consultation in June. However, I may be corrected, as on a previous amendment the noble Baroness the Minister said that it has already closed. That it is on the cusp of closing or has already closed is regrettable in that we are not able to deliberate on the consultation in our considerations on the Bill.

I table these amendments again to give the House a chance to debate these important provisions and reflect further on the Government’s approach. I state again that Clause 27 is a very bold and ambitious step that the Government have taken. I express concern that, although the groceries code has proved very effective in stabilising fair dealing provisions in the retail sector, difficulties remain regarding whether this was the appropriate mechanism to cover the whole of the supply chain: the service sector as well as the retail sector, the widespread diversity of food products in the supply chain and how they are delivered across many forms of enterprise and business practice.

The Government are undertaking a huge task and care must be taken, as a one-size-fits-all regulatory regime may not fit all in the appropriate manner. The problems and solutions in one sector and the relative merits in the behaviour of various participants may not be suitable to be applied across the board to all sectors, each with differing market imperatives, regarding how the various markets may be made to work more effectively. That there is an imbalance in negotiating power between the primary producer through the processing, manufacturing and product development supply chain and the end market is not in doubt.

I shall not press these amendments tonight, nor support other amendments, including Amendment 87 should it be pressed. The Government have set out on the task and already started a consultation with the dairy sector. As I set out in Committee, I was concerned that these provisions had a narrow focus on contracts. Indeed, Clause 27(1)(a) specifically addresses contracts. Fair dealing provisions should examine the business relationship in its widest implication and interpretations that encompass many various circumstances that arise in primary production. However, it must be recognised that a first step is being taken, and it is starting at a very pertinent point—the contract.

In the interval between Committee and Report over the Summer Recess, I spoke to many in the dairy sector, especially those at the foot of the supply chain—the dairy farmer and his or her processor. I can tell the Minister that the department’s consultation has been widely promoted among the many sections of the industry: the farmer, the producer group representing the farmer’s suppliers, and the processing industry. Many have shared their submissions with me, and I am sure that the Minister’s department will receive a widespread response. Here and now is perhaps not the place to debate this further; I will add merely that the voluntary code of practice—VCOP—in contracts, introduced in 2012, has proved ineffective in improving fairness and transparency on a wider scale and, as has been experienced during this pandemic, urgency is needed to tackle the problem more extensively and in a comprehensive fashion.

I also note that this is a widespread problem throughout the industry that now extends across borders, with the overseas ownership structure covering the dairy industry in both the UK and Europe. The EU is also pressing on with its solutions, through directive 2019/633 on unfair trading practices in business-to-business relationships in the agricultural and food supply chains. Can the Minister make any comment, even though the consultation has barely closed, on the progress of the consultation, concerning the numbers, extent and general features beginning to become clear? Even in the immediacy of the lockdown, the retail relationship with the supply chain is today much better than it has been, due to the activities of the Groceries Code Adjudicator.

Will the department be separating out submissions from the retail sector and the service sector from this consultation? The consultation does not mention the wider farmer-processor relationship with the ongoing supply chain, and specifically with the retailer. Will the Minister give a commitment that further inquiries will be conducted as the submissions are considered? It may prove difficult to make immediate recommendations. Reflecting across other sectors in the industry, can the Minister give any indication as to when further consultations will be progressed? Which sector has the department next in mind? Furthermore, how might the various sectors combine to find comprehensive answers to this very difficult problem of fair dealing in the industry, a problem that is now being tackled by the Bill? I beg to move.

[Baroness McIntosh of Pickering (Con)]

My Lords, I congratulate the noble Lord, Lord Grantchester, and the co-signatories for bringing forward Amendment 63 and others in this little group. Amendment 67, in my name and that of the noble Baroness, Lady Ritchie of Downpatrick—I thank her for supporting this amendment —seeks to achieve precisely the same ends. I join with the noble Lord, Lord Grantchester, in expressing regret that the noble Lord, Lord Curry, is not able to speak to this group, but I entirely understand the circumstances in which he felt he had to head north.

Again like the noble Lord, Lord Grantchester, I pay tribute to the Groceries Code Adjudicator, who has done a sterling job in regulating the relationships between the major retailers and direct suppliers. I was most grateful to have the opportunity to discuss this amendment with my noble friend the Minister, who I understand may be able to signify some movement in this regard. I look forward to that with great interest.

I hope that the Government are minded to widen the remit to cover the gap that needs to be plugged by including the indirect supply chain, such as dairy, which is currently excluded from the process. For dairy producers and fruit growers, many of whom are quite small in size, it is extremely difficult to bring a complaint to the Groceries Code Adjudicator. That is why I am very keen—and it is something that we concluded some seven or eight years ago on the Environment, Food and Rural Affairs Select Committee next door—that it should be incumbent on the Groceries Code Adjudicator to bring forward, on her initiative, investigations in this regard. The indirect supply chain, as well as the direct, is extremely important for these small suppliers, and things do sometimes go awry. We should not be entirely reliant on complaints from small producers and growers who can too easily be identified and may, as a result, lose their contract, livelihood and mainstay of their income.

I very much support the Groceries Code Adjudicator taking over this role. I understand the difficulties, as she reports to a different department. If there has been some movement and my noble friend is able to see a way forward in this regard, I think it would be very welcome to the House.

--- Later in debate ---

[Lord Gardiner of Kimble (Con)]

My Lords, this has been an interesting debate, and I thank all noble Lords for contributing toward it. Of course, I regret that the noble Lord, Lord Curry of Kirkharle, is not with us. He sent me a note, and I will have further discussions and considerations with him, because I am very keen to hear what he would have said in this debate.

Turning to Amendments 63, 64 and 67, I would like to assure noble Lords that work is ongoing to determine the most appropriate mechanism of enforcement for the provisions under this part of the Bill. No decisions have been made about who will be appointed as the enforcement body for Part 3. It is important to note, with particular reference to Amendment 67, that while all the measures contained in this part of the Bill will collectively work to improve supply chain fairness, the Government believe enforcement will work best when each particular policy area in Part 3 can be addressed individually. I say that because it is very important that we get to grips with the issues in each sector, identifying those that are distinct as well as those that may be common. I think that would be a pragmatic consideration.

On the suggestion that the Groceries Code Adjudicator should be given enforcement responsibilities, it is important to note that one of the key factors in the adjudicator’s success is its targeted focus on the behaviours of the UK’s largest supermarkets with their direct suppliers. This has enabled the adjudicator to work closely with the industry in developing supply chain solutions. I join other noble Lords in acknowledging in the work of the Groceries Code Adjudicator. It has been a considerably successful tenure of office.

A government call for evidence in 2016 explored the possibility of extending the adjudicator’s remit beyond those directly supplying the largest retailers. The review found insufficient evidence of widespread problems further down the groceries supply chain and concluded that there was no justification to extend the remit. However, it did identify some remaining concerns. These were sector-specific and predominantly concerned with the first stage of the supply chain. Following on from this, we feel that such issues are best addressed with the appropriate and targeted interventions included in the Bill.

Preliminary analysis of the responses to the Government’s consultation on the dairy sector has shown that there are a range of views about appropriate enforcement. I emphasise that an adjudicator-style model is only one of many potential means to resolve contractual disputes and ensure compliance with any new regulations. Amending the Bill to appoint the Groceries Code Adjudicator as the enforcement body would serve potentially to tie the Government’s hands to only one of the many possibilities available. This would also preclude the ability to listen to the views of industry and respond accordingly, which is really important and, we think, critical in creating effective solutions.

The Government are, of course, aware of the issues that farmers face in the supply chain and that is not confined to the dairy sector. To answer one of the questions from the noble Lord, Lord Grantchester, the Government will carry out similar consultations to explore the issues facing other sectors in turn. Discussions with stakeholders have already begun, to look at the situation in the red meat sector and what sort of interventions could improve the position of producers in that supply chain.

On Amendments 65 and 66, I thank the noble Lord, Lord Grantchester, for highlighting the importance of a robust enforcement regime to ensure that the fair dealings obligations are effective and sustainable. It is important to state that no decisions have been made about the nature of enforcement, or the body responsible for enforcement. The reason is robust and strong: the Government want to work with industry and listen to its ideas and concerns before any final decision is made.

The noble Lord, Lord Grantchester, asked about the consultation on the dairy sector. To be precise, I can confirm that the consultation closed on Tuesday. The consultation included a specific question about dispute resolution and, while the detailed analysis is still being carried out, it is already clear—this is broad-brush, because I asked whether there are any indicators—that stakeholders have a broad range of views about the most appropriate form of enforcement and finding the best solution will obviously require some consideration. The Government aim to publish a summary of responses later this year, which will be very important and will provide greater detail about the views shared and the options available. I hope it will not be too long before there will be scope for that consideration. The Government will exercise due diligence in designing the enforcement regime and appointing a regulator.

I say to the noble Baroness, Lady Bakewell of Hardington Mandeville, that I do not recognise her description of the rigour with which I and other Ministers consider appointments to public bodies. It is a very serious matter; we recognise that it is a matter of people coming forward to help in the public service. I reassure her that it has no input other than that it must be done rigorously, and the right people need to be chosen.

The Government intend the fair dealing obligations to create positive change for the industry. That is why we are doing it and why this is such an important feature. I am very glad that the noble Lord and other noble Lords have raised this, because this is all part of the prism of this Bill. A lot of people are worried that we are talking too much about the environment, but a lot of the guts and detail of what will come out in the provisions of the Bill are designed to help the farmer in the great production of food, and so that we can help the farmer get fairer dealing.

I have a note relating to the remarks of my noble friend Lady McIntosh on the GCA launching its own investigations. The Groceries Code Adjudicator can launch its own investigations, if it has reasonable grounds to suspect that a large retailer has broken the code. Again, I think the adjudicator’s work has been essential. I think and hope that, in the spirit of this debate, the reason the Government would at this time resist putting forward a particular body, however successful the adjudicator has been in this area, is that the best way to deal with difficulties in certain sectors is to work with the sector to see what is the best mechanism for enforcement. Let your Lordships be in no doubt that these are provisions that we recognise must be attended to, and in short order, because they are the way that will help the farmer in this situation.

In that spirit, I very much hope that the noble Lord will feel able to withdraw his amendment.

[Lord Grantchester (Lab)]

My Lords, I thank all noble Lords who have come forward to speak tonight. I certainly appreciate the remarks of the noble Baroness, Lady McIntosh, in calling for the extension of the role of the adjudicator, and the various discussions with the Minister. I agree that the widespread experience of the Groceries Code Adjudicator should give rise to exploring how the role of that office may be extended.

I remind all noble Lords that agriculture can be characterised as unusual: it is almost unique in that producers invariably buy retail yet sell wholesale. I certainly appreciate the Minister’s comments and the gracious way in which he is going to include the noble Lord, Lord Curry, in further discussions. He has also come forward with a very helpful update on his department’s ongoing deliberations. I appreciate that the Government need flexibility to get the right solutions to each sector’s issues, and I look forward to clarity being provided in the publication of this consultation and to the debates we will have on that later. In the meantime, I beg leave to withdraw the amendment.

Amendment 63 withdrawn.

--- Later in debate ---

[Baroness Bakewell of Hardington Mandeville (LD) [V]]

My Lords, it is a pleasure to follow the noble Lord, Lord Inglewood. This is an important group of amendments, to which others have spoken eloquently. I added my name to Amendments 81, 82, 83, 85 and 86 in the name of the noble Baroness, Lady Rock. I congratulate her on her speech and agree wholeheartedly with her detailed comments.

The noble Earl, Lord Devon, moved Amendment 69 and spoke to Amendment 89, which would remove agricultural tenancies from the Bill. I listened carefully to his speech and I am afraid I cannot agree with him. Removing reference to tenant farmers from the Bill because insufficient importance is given to them is not the answer. Tenant farmers are a vital part of the patchwork of agricultural holdings across the country. If they are removed from the Bill, I am unclear on just how we can safeguard their survival. However, I agree that three years is far too short for a farm tenancy business.

The amendments I will speak to all apply to Schedule 3 and would ensure that those currently involved in agriculture on a tenancy basis can function effectively. I support the comments of the noble Lord, Lord Wigley, and those of the noble Baroness, Lady Rock, on financial assistance schemes. These must be open to all tenant farmers. It is unacceptable for their landlords to refuse consent for them to engage in these schemes. Those who work the land and do the back-breaking jobs involved should be able to reap the rewards. It is unacceptable for landlords to block the rewards, cream them off for themselves or alter the tenancies to the disadvantage of the tenant, as the noble Baroness indicated.

I turn to the amendments that relate to the rights of succession to a tenancy on death. Many tenant farms will be run by extended family members. For some, the nephew, niece or grandchild of the farmer will have been helping to run the farm for some time and see it as the only way they themselves can get into farming. It is therefore imperative that they should be able to succeed to the tenancy. They have experience and expertise, often gained over many years, and the farm will be in safe hands. Similarly, those in civil partnerships or cohabiting should be able to succeed to the tenancy where they wish to do so.

We have on previous days on the Bill debated the importance of encouraging new entrants into farming. To shut out those who wish to carry on the family tradition by refusing succession to the tenancy would be both cruel and unwise. These are the very people the Government should be encouraging to take up the reins and carry on. They are also the ones likely to welcome a move to a more environmentally friendly way of farming. I disagree with the noble Lord, Lord Carrington: no one related to a farmer or his extended family could possibly think that farming is an easy option.

Lastly, I support the letting of longer farm business tenancies. In Committee, the noble Earl, Lord Devon, referred to the woefully inadequate length of farm business tenancies of three years. This is hopeless for anyone wanting to plan ahead and make the best use of the land.

While I accept that short tenancies mean that others can come on to the land, it is not likely to encourage proper management of the land if, at the end of three years, the tenant farmer has to give up and move on. Often, there are no farms for them to move on to, as the popularity of pony paddocks means that some farmers have sold off land piecemeal for this purpose. A longer tenancy agreement is vital if the Government are to ensure that ELMS are successful. The Government cannot insist that it will take farmers seven years to convert from CAP to the ELMS system and then legislate only for three-year farm tenancy businesses. These are all vital issues, and should the noble Baroness, Lady Rock, wish to test the opinion of the House, we will support her. I look forward to the Minister’s comments.

[Lord Grantchester (Lab)]

I thank the Tenant Farmers Association for its communications on these clauses. I also thank the noble Lords who have tabled these amendments for further consideration. They tackle many aspects of the two major Acts, the Agricultural Holdings Act 1986 and the Agricultural Tenancies Act 1995, following the Government’s consultations on their workings, on which there has been so much debate. I recognise the passion with which many speakers have spoken tonight. These relationships can certainly become fraught and I appreciate the experiences that the noble Baroness, Lady Rock, shared with the House. It is a difficult and complicated subject that has been deliberated on by the Tenancy Reform Industry Group over many years. The Bill delivers on many of its recommendations, and the Minister will see that they are drafted to balance the interests of tenants and owners.

I understand that many of the amendments were consulted on last year but did not receive enough support and that therefore further, more detailed work may be required. I understand that there remains an appetite in England and Wales to consider the situation further before coming to a conclusion by the enactment of these amendments. The amendments are certainly important and have our broad support, including Amendment 88 in the names of the noble Baroness, Lady McIntosh, and the right reverend Prelate the Bishop of St Albans. We agree that there should be parity between tenants under the 1995 Act and those under the 1986 legislation in objecting to a landlord’s refusal to enter into a specific financial assistance scheme. We wish generally that all farming operations, whatever the terms of their occupancy, should be encouraged to take up the various ELM schemes and make their contributions towards an environmentally sustainable agriculture.

We would also be receptive to the modern interpretation of relationships that could lead to wider inclusion in tenancies, in line with our general encouragement for new entrants to come into the industry, provided they can meet the various eligibility provisions. The noble Earl, Lord Devon, argues that these clauses should be excluded from the Bill, but we would not go along with such an approach. If improvements to the legislation have been agreed as part of the TRIG process, we would not wish to hold them up. However, regarding further amendments, we can see that these may not have received the more considered support as widely as may be necessary for enactment in the Bill. We await the outcome of a more comprehensive assessment throughout the industry.

[Lord Gardiner of Kimble (Con)]

My Lords, I thank all noble Lords. The noble Lord, Lord Grantchester, used the word “passionate”. It has been a passionate debate and I think that, whatever the tenure of ownership, tenancy or commonhold, the challenges of farming are very profound. Obviously, the Government need to work towards creating an environment in which all types of tenure are able to run a strong business.

Turning to Amendments 69 and 89, the noble Earl, Lord Devon, proposed that we should in effect decide not to take forward what we have banked in our work. The package of tenancy reforms included in Clause 34 and Schedule 3 were shown by public consultations in England and Wales to have broad support. They deliver on many of the recommendations from the Tenancy Reform Industry Group—TRIG. The noble Lord, Lord Grantchester, made that point rightly, because the Government have brought forward those recommendations which commanded broad support. These provisions will help to modernise agricultural tenancy legislation, providing tenants with more flexibility to adapt to change. That is why it is very important that they remain in the Bill, so that they can be delivered now.

I understand that the noble Earl, Lord Devon, would like to see tenancy reform delivered through a separate dedicated Bill, and I can assure him and noble Lords that both the UK and Welsh Governments are keen to engage in further discussions with members of TRIG to explore whether any further actions may be needed to ensure what we all want, which is a thriving tenanted sector.

On Amendment 84, the tenant farming sector remains, as the noble Lord, Lord Wigley, said, and as we all know, a crucial element of agriculture in Wales. Within last year’s consultation, the Welsh Government outlined their proposals for a new sustainable land management scheme in Sustainable Farming and Our Land. It also consulted on a series of measures to modernise the tenant farming sector in the agricultural tenancy reform consultation. Policy development on tenancy reform remains ongoing in light of the consultation responses received and is being carried out in conjunction with development of sector-wide proposals for future agricultural support.

The Welsh Government acknowledge the importance of ensuring that tenant farmers are able to access any new scheme, and their view is that a Senedd Bill would provide a more appropriate legislative vehicle for that purpose. Further consideration will be given to what provision is needed in due course. The Welsh Government intend to publish a White Paper later this year to pave the way for an agriculture (Wales) Bill to be introduced in the next Senedd term.

On Amendment 87, there can of course be benefits from tenants and landlords entering into a longer-term tenancy agreement. There has been a lot of talk of three years. As far as I am aware, the parties can, if they so choose, have any length of term they desire; in the same way as with arrangements with any other property, that is a matter for the parties. I was therefore a little concerned that there appeared to be among certain of your Lordships this idea that everything was for three years and there was no leeway. As far as I know, and from my experience, that is not the case.

However, when the Government consulted on this matter of longer-term tenancy agreements, the feedback gathered indicated that introducing shorter notices to quit would be unlikely to affect significantly landowners’ decisions about the length of tenancy to offer. Other factors such as the size, quality and location of the land, and personal motivations for owning land have a much greater influence on decisions about the length of the tenancy term offered.

It is also important to recognise that, while there are benefits to longer-term tenancy agreements, shorter-term tenancies can be more suitable for different business models. For example, short-term lets have been shown to be very often more appropriate for new entrants looking to rent land on a flexible basis to gain experience. They can also be more suitable for some seasonal horticultural businesses. However, I can assure your Lordships that the Government will continue to work with TRIG on this important issue. That includes exploring how the sector can encourage more landowners to offer innovative long-term agreements to tenants who would welcome them rather than defaulting to standard short-term agreements.

Agriculture Bill

Lord Grantchester Excerpts

Report stage & Report stage (Hansard): House of Lords & Report: 1st sitting & Report: 1st sitting: House of Lords
Tuesday 15th September 2020 Lords Chamber

[Baroness Bakewell of Hardington Mandeville (LD) [V]]

My Lords, it is a great pleasure to follow the noble Lord, Lord Rooker. This is an extremely important group of amendments. The House spent a long time debating financial assistance in Committee and there was a thorough airing of all the issues, some of which have come back in this group.

The noble Baroness, Lady McIntosh, has raised the issue of food security, a subject which concerns us all. Access to healthy, affordable food is the right of every child and promotes good health and well-being. The right reverend Prelate the Bishop of St Albans raised the issue of food poverty, which is also extremely important. The noble Baroness, Lady McIntosh, raised biodiversity and the role that pasture-fed grazing stock can play in promoting it. It was clear from watching David Attenborough’s programme “Extinction” on Sunday that biodiversity has come into sharp prominence —a point also raised by the noble Baroness, Lady Jones of Moulsecoomb. I shall be listening to the Minister’s response on this amendment.

My noble friend Lord Teverson raised whole-farm agroecology and agroforestry systems—a subject he is, quite rightly, passionate about. Trees are the green lungs of any country and we destroy them at our peril. It is therefore vital that we encourage agroforestry and tree planting, and that the financial rewards match the level of investment and management required. My noble friends Lord Addington and Lord Greaves are pressing the case for joint health and well-being strategies to be included in the financial assistance provision. Given the current health situation of the nation, I would hope that they are pushing at an open door.

Domestic production of food and agricultural products to ensure sufficient food security is a key element of the Bill. Nearly every sitting day we have a question about the impact of Covid-19 on the population, both elderly and young. The longer the pandemic goes on, the more the scientists learn about its impact, how to treat it and who are the most vulnerable of our residents. We know that exercise and a healthy weight and diet, while not a total fail-safe protection against infection, make a tremendous difference to our ability to survive and make a full recovery. As we enter a possible second peak, it is therefore paramount that the Secretary of State should have available to them sufficient information to ensure that food supply is stable and sufficient, and that food is produced in an environmentally friendly way. The whole thrust of ELMS is to move agriculture on to a more environmental footing. However, ELMS is not exactly just around the corner, and it is necessary to act now to protect both food supply and the environment. Can the Minister give the noble Lord, Lord Northbrook, and the Chamber the reassurance that we are seeking?

I have added my name to Amendment 11 from the noble Earl, Lord Dundee, on new entrants. Many of our long-standing farmers are considering whether now is the time for them to retire—as the noble Earl said, a third of our farmers are over 65 years of age. As we move from CAP to ELMS, it is vital that everything possible is done to encourage new entrants and young farmers to take up the reins. Entering farming is a very expensive venture; buying land is likely to be well beyond the reach of many young entrants, even if there is land available. Encouraging existing landowners to make land available will be vital to allow new entrants. Start-up capital will be needed to make a success of the new venture, alongside training and qualifications. Just talking of the list is intimidating and could put off some would-be hopefuls. The noble Lord, Lord Carrington, set out the case eloquently and was well supported by the noble Baroness, Lady Boycott. Like the noble Earl, Lord Dundee, I am looking for answers from the Minister as to how the Government intend to deliver on this vital element of continuing successful land management on behalf of the rest of the country.

The Minister made it clear in Committee that he was keen to limit the list of activities attracting financial assistance, and he is supported in this by the noble Baroness, Lady Young of Old Scone. However, I fully support the noble Earl, Lord Caithness, in his quest to gain support for nature-friendly farming. The activities listed in his amendment are all vital and inextricably linked. We cannot have biodiversity if we do not have good soil health and good water and air quality. We cannot protect species if we do not have sufficient flood-protection measures and climate change mitigation. If the Minister is not minded to accept this amendment, can he tell us just how the Government intend the activities in the list to be achieved and protected?

Similarly, I support the noble Earl, Lord Devon, in including wetlands as well as uplands. The different types of species that can be raised on the various types of farmlands all add to the rich cultural and natural heritage of our countryside. Not all farmers will be blessed with grade 1 agricultural land, but all types add to the variety of produce and the rich diversity of our land. I thank the noble Earl for raising the issue of the wetlands in Somerset.

Lastly, my noble friend Lord Greaves has made a thorough case for the inclusion of common land, supported by the noble Lord, Lord Inglewood. I look forward to the Minister’s comments on this important element of land management, as well as on the rest of the amendments.

[Lord Grantchester (Lab)]

My Lords, at the start of my remarks on Report on amendments to the Agriculture Bill, I declare my interests as recorded on the register, including as being in receipt of funds from the CAP under the present system. As with the first group of amendments, I thank noble Lords for tabling their further thoughts after Committee with these amendments today. Once again, they highlight the very broad nature of agriculture, which, in many ways, interacts with economic activity from many sectors and interests in the rural economy. This in turn has a bearing on many government departments.

Several of the amendments focus on matters related to food security and, indeed, insecurity. We agree that these are important matters that we will come to later in the Bill. In relation to the Minister’s concessions—which are very much welcomed—and to Amendment 58 on the national food strategy commissioned by the Government, I can add that I too was very impressed with the initial report recently published by Henry Dimbleby.

We consider that the Government have a very clear focus on the issue without requiring the specific Amendment 12 so eloquently spoken to by the noble Lord, Lord Northbrook, which we are unable to support from the Labour Benches. However, we have regard to Amendment 11 in the name of the noble Earl, Lord Dundee, and others, which overlaps with Amendment 70 in the name of my colleague and noble friend Lady Jones of Whitchurch on the Front Bench. Ensuring opportunities for young farmers and new entrants is incredibly important and underlines the future prosperity of the sector.

In outlining the purposes for which financial assistance can be given, we consider that Clause 1 gives a fair balance and appreciation of the many options that may be developed over time. It provides a good way forward, rewarding the production of food while protecting the environment. I am sure that the Minister will be able to provide the extra information and assurances that we are all looking for, and that he has taken due note of all the important points raised for sustainable agriculture into the future.

[Lord Gardiner of Kimble (Con)]

My Lords, I thank all noble Lords for contributing to what I think has been an extensive and very interesting debate. I turn to Amendment 6, which I shall address along with Amendments 9, 10, 12, 17,13 and 20. I will say—particularly to my noble friend Lord Northbrook and as a fellow member of the NFU, but to all noble Lords—that the Government agree absolutely that the production of food is of critical importance and that this will not be overlooked in the designing of our future schemes. Indeed, this is precisely why the Bill includes a duty for the Secretary of State to have regard to the need to encourage food production and for food to be produced in an environmentally sustainable way. So I say, in particular to my noble friends Lady McIntosh of Pickering and Lord Northbrook, that Clause 1(4) as drafted recognises the strong interdependence of farming and the environment.

--- Later in debate ---

Moved by

[Lord Grantchester]

29: After Clause 3, insert the following new Clause—
“Financial assistance: duty to provide advice
(1) The Secretary of State must make regulations to secure the provision of training, guidance and advice to persons receiving financial assistance under this Act, for the purpose of enabling those persons to deliver the purpose or purposes for which the financial assistance is given.(2) Regulations under subsection (1) may include provision for advice on matters which include but are not limited to—(a) the impact of any practice upon the environment,(b) business management, including the development of business plans,(c) the health and welfare of livestock,(d) the safety and health of workers in any agricultural sector,(e) innovation, including alternative methods of pest, disease and weed control,(f) food safety, insofar as it relates to the production of food or any activity in, or in close connection with, an agri-food supply chain,(g) the operation of any mechanism for applying for, or receiving, financial assistance under this Act, and(h) marketing of any product falling within an agricultural sector under Schedule 1.(3) Regulations under this section are subject to affirmative resolution procedure.”Member’s explanatory statement
This new Clause would require the Secretary of State to make provision for training, guidance and advice to be made available to persons receiving financial assistance.

--- Later in debate ---

[Lord Grantchester (Lab)]

My Lords, I have retabled Amendment 29 from Committee, as it could be said to reflect very well on the wide-ranging debate we had on the many challenges and opportunities faced by the rural economy as the focus changes towards providing support for production to be recognised for its environmental and welfare impacts. I am grateful to the noble Lord, Lord Lucas, and the noble Earl, Lord Caithness, for adding their names to the amendment after tabling their amendments in Committee, and to my noble friend Lord Whitty, who has widespread experience of the sector from his excellent service as an Agriculture Minister in a previous Labour Government.

All sides of the House and all shades of opinion acknowledge that, as we move to new funding schemes, there will be a lot of new information, terminology and conditionality that farmers and land managers will need to become familiar with, all accompanied by complex administrative processes that will need to be complied with. Of course, it will be understood that there will be pilots and guidance available to participants but, given the relative speed of the transition proposed, it does not seem unreasonable to expect Defra to recognise the responsibilities it should perhaps take towards those wishing to take part in the schemes by playing a more active role in educating, clarifying, guiding, encouraging and assisting the sector.

Many pitfalls could be encountered. In Committee, discussion also covered the sometimes disproportionate punitive actions that can be taken against farmers when they act in good faith but fall short in some small regard. I was particularly struck by the words of the noble Lord, Lord Lucas, who spoke of

“the importance of allowing failure”.—[Official Report, 14/7/20; col. 1654.]

The Government are well placed to step in, whatever the circumstances, should it be necessary. They can pick up on bad experiences and eliminate misconceptions that could quickly deter applicants through social media.

Of course, it is understood that participation in schemes is voluntary. However, we would wish to see the full participation of the agricultural community to enhance our environment and to benefit businesses.

--- Later in debate ---

[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, I am grateful to noble Lords for their almost universal acknowledgement tonight of the importance of advice in a time of significant change to the industry. The rules of engagement have, indeed, changed fundamentally.

I reiterate the Government’s view that expert advice and guidance is critical to the successful delivery of future schemes. As currently drafted, the Bill already gives the Secretary of State the necessary powers to fund the provision of advice, guidance and other means of support to recipients of financial assistance under Clause 1. The Government certainly intend to use this ability; advice and guidance is one of the priority areas in the 40 live tests and trials that are feeding into this theme.

I will give some examples of how this could be done. For future tree health schemes, we are looking to refresh and improve our offer of plant health advice to ensure that land managers have the information they need to manage and respond to tree health issues. For animal welfare grants, these one-off payments could cover investment in equipment, infrastructure, technology and training. For animal health schemes, we are also looking at ways to increase advice given to farmers, both from vets and other agricultural advisors, to help them improve animal health. We also want to increase peer learning between farmers through, for example, facilitated farmer groups. The Government have also stated their intention to offer advice to those applying for productivity grants to help them decide which investments would achieve the greatest improvements in business performance.

In Committee, reference was made to the ongoing ELM scheme tests and trials. We are using these to identify the most effective means of providing advice and guidance to farmers and land managers, which will enable them to deliver on their funding agreements with confidence. Since then, the number of ELM tests and trials looking at the provision of advice and guidance has increased to 40, demonstrating the Government’s commitment to designing a scheme that works for farmers and land managers. Evidence shows that, for advice to be effective, it must be trusted, consistent, credible and cost effective. The Government are considering how these principles can be embedded into advice for all schemes and working with farmers and other land managers to do so.

The noble Lord, Lord Cameron of Dillington, asked specifically about the availability of training schemes. The ELM trials are exploring ways in which skills and qualifications for environmental land management can be improved.

The noble Lord, Lord Grantchester, also asked how agricultural colleges could be drawn upon to provide advice and dispense information. The Government are supporting the work of the skills leadership group in exploring ways to address the fragmented nature of the existing skills, education and advice landscape. Representatives of the agricultural colleges have been involved in these conversations.

Defra is currently running a £1 million grant funding project to explore how it could provide resilience support to farmers and land managers in England to help them prepare for reductions in direct payments in the transition period. The project, which is targeting some 1,700 farmers and land managers, aims to identify how, where and when they may need to adapt their business models and resilience as a result. Evidence coming from this project will help inform the design of a national scheme, which is currently in development for launch in early 2022.

I was asked about the availability of broadband in some areas. We are connecting some of the hardest-to reach places in the country, including through the SFB programme and the £200 million rural gigabit connectivity programme. We have also announced £5 billion of funding to close the digital divide.

I hope that I have managed to give some reassurance that advice and guidance are already considered in the scheme design, that the Government are committed to their provision and that we have the powers we need to deliver in this area. I hope the noble Lord, Lord Grantchester, will feel able to withdraw his amendment.

[Lord Grantchester (Lab)]

I thank all noble Lords who have spoken on this amendment, especially the noble Lord, Lord Lucas, and the noble Earl, Lord Caithness, for their additional reasons for supporting this amendment. As everyone has expressed, this is a fundamental change to the rural landscape and agricultural industries support.

The possible lack of an impact assessment, mentioned by the noble Baroness, Lady Neville-Rolfe, could be identified as a challenge of detail for what may be required for the successful launch and promotion of this scheme not being fully appreciated. We would want the scheme to be a success.

The amendment is not prescriptive on how the Government may go ahead and deliver that advice. The Minister’s confidence need not be at the expense of caution. My noble friend Lord Whitty drew attention to the withdrawal of advice that, as I was reminded, has reduced the level of the UK’s agricultural productivity in comparison to other EU countries.

The noble Lord, Lord Cameron, emphasised the importance of training to achieve farmers’ engagement. The noble Baroness, Lady Bennett, reflected on the quality of advice that could come from more commercial sources, which could be a further challenge. The noble Lord, Lord Carrington, mentioned the digital divide. The noble Baroness, Lady McIntosh, emphasised, if I am interpreting correctly, that advice must be part of participating in schemes. My noble friends Lady Young and Lord Judd also spoke of the importance of advice in expressing their support.

With all this support, I could be tempted to press this amendment. The Minister assures us that the Government have the power, under Clause 1, to provide advice. This intention should perhaps be promoted more clearly to the agricultural sector. I thank her for her remarks and wider explanations. However, in agreeing to withdraw this amendment, I call on the Government to keep it in mind as the Bill is returned to the other place for further consideration.

Amendment 29 withdrawn.

--- Later in debate ---

We really must do better for our farmers, who are ensuring that the land is looked after and healthy food is produced. Given the extreme importance of this group of amendments, I hope that the Minister will have some encouragement for us.

[Lord Grantchester (Lab)]

My Lords, the lead amendment in this group, Amendment 36, in the name of the noble Baroness, Lady McIntosh, and others was subject to much debate in Committee. There were many alternative proposals for the transition period between the present system and the full implementation of ELMS being separated from landholdings. This amendment would delay its start for one year. I thank her for her amendment, as she has foreshadowed many of my remarks.

I will speak to my Amendment 41 in this group. However, before I do so I thank the noble Lords, Lord Carrington and Lord Curry of Kirkharle, for their Amendment 37. Further amendments to it have been tabled, in Amendments 38 and 39 by the noble Duke, the Duke of Wellington, and Amendment 40 by the noble Lord, Lord Carrington.

I understand the approach of the noble Lord, Lord Carrington, and his anxieties concerning cuts in direct payments. I appreciate the emphasis given by the noble Duke, the Duke of Wellington, to the organic sector by doubling conversion payments, and to the hill-farming sector in the less favoured areas by freezing their reductions below £30,000 per hill farm.

Amendment 40 specifies that the regulations in this amended clause are subject to the affirmative procedure. However, we could not consider supporting these amendments without extensive further information being available to apprise us of their merits.

I would also like to thank the noble Baroness, Lady Rock, for her amendment concerning the importance of cash flow and grants to the viability of farming businesses in today’s increasingly volatile business circumstances.

However, I propose an alternative approach to these amendments. Amendment 41 disapplies Clause 8. In Committee, amendments around a transition period and the multiannual plans were spread between groupings. This has been reflected today with the consideration of Amendment 32 from the noble Lord, Lord Teverson, and Amendment 33 from the noble Earl, Lord Devon, being in a previous group. This has meant that the debate has been at cross-purposes with Amendment 41, as these other amendments concern the length of multiannual plans only. However, I recognise that multiannual plans were subject to extensive consultation in the 2018 Bill and set for seven years in conclusion then. This has possibly overshadowed the merits of my Amendment 41. I thank the noble Lord, Lord Addington, for adding his name to this amendment and for his recent remarks. I also thank my noble friend Lord Judd for his remarks in support.

How the changes to the ELM system and the nature of each seven-year period between plans and a transition period interact can indeed be very confusing. This is why I have tabled my Committee amendment with a few changes. Having reflected on the debate, as well as on evidence both formal and anecdotal from recent trials and pilot schemes, we have revised our approach in a fair, common-sense way that is also flexible to circumstances. This is because so much is unknown and the results of any trials have yet to be considered. This appears to be recognised to some extent by the Government’s own Amendment 35.

Amendment 41 removes from the Bill the previous start date of the transition period and gives the Government a degree of flexibility by having a start date set in regulations. There is no need for the Government to define a start date in primary legislation which they could later regret, and which would set the legislation off into a period of uncertainty should ELMS not be adequately ready for implementation—as their Amendment 35 partially recognises. The amendment states that the start date would be set once the Government have confirmed that any scheme to operate in the first year of the transition was fully operable.

Everyone can agree that it is important to get started on the transition phase, but so much preparatory work is yet to be done. There is anxiety already that countryside stewardship schemes starting in 2021 can be withdrawn, yet schemes started this year, in 2020, cannot be withdrawn without penalty. There are also very considerable concerns being highlighted and heightened in relation to Covid-19 and the potential onset of any phase 2 consequences this winter.

I highlight that Defra’s plans are themselves being reconsidered in relation to the transition period. I understand that the department is now planning a new interim or stepping-stone scheme to bridge the gap that may appear between the BPS and the ELM scheme. The sustainable farming incentive, or SFI, will bring in limited elements of ELM tier 1, while avoiding the funding gap that will arise from the Government’s ill-considered cutbacks before full schemes are available. This is some- thing we drew attention to as early as Second Reading.

I understand that claimants are expected by Defra to have lost half of their payments by 2024, when full pilot schemes are expected to be rolled out. Can the Minister be transparent on this new scheme and the amount of cutbacks being envisaged? It is important to the credibility of the Government’s plans, so forcibly expressed by the Minister.

Is this SFI scheme under serious consideration, and where will the funding come from if funding cuts to BPS are to finance ELMS, as repeatedly expressed? Will the Countryside Stewardship entrants be excluded once again, as already mentioned? Surely Amendment 41 is preferable to the uncertainty, complexity and confusion that will arise if these reports are confirmed. I understand that the announcement is held up with the Treasury’s comprehensive spending review. It would be more than unfortunate if the Minister could not be forthcoming tonight when the House is considering this Bill.

[Lord Gardiner of Kimble (Con)]

My Lords, I thank all noble Lords who have contributed to this debate. I will be the first to say, coming from a farming background and being a farmer myself, that I know that change can present these great concerns, and that is why the Government are clear that they want to work with farmers to ensure we get the schemes right. I think we are doing that properly, and I would like to explain why.

On Amendment 36, with which I will also address Amendments 37, 39, 40 and 41, the Government are committed to introducing new schemes that will reward farmers for producing goods that are valued by the public. Our planned reductions for 2021 are intended to send a clear signal of reform. It is important that farmers have certainty about when the agricultural transition will begin. There may be some in this House who do not agree with this. But many people, including those in the farming community, will feel that direct payments are poorly targeted and offer poor value for money. This is something that I have been very seized of, as have many of us farmers who seek to farm well and look after our land. This is a conclusion we all have to draw from the current regime. Therefore, applying appropriate progressive reductions to these payments will free up money that can be used to support farmers better—I repeat, “to support farmers better”—and deliver public goods.

We believe it is important that this process is not delayed. The Government are on track to introduce new schemes from 2021 while continuing to fund new and existing Countryside Stewardship agreements which farmers can apply for until 2023. Signing a Countryside Stewardship agreement gives a viable, long-term source of income for providing environmental benefits. I assure the noble Lord, Lord Grantchester, and other noble Lords that no one in a Countryside Stewardship agreement will be unfairly disadvantaged when they move to new arrangements under ELM. I should also say to the noble Duke, the Duke of Wellington, that the Countryside Stewardship scheme includes a specific uplands wildlife offer.

We will also provide productivity grants to farmers for investments in equipment, technology and infrastructure, which will help their businesses to prosper while improving their productivity and enhancing the environment. These grants will be available from 2021. In addition, the national pilot of the future ELM scheme will also begin in 2021 and will be funded from the reductions in direct payments. The national pilot will be informed by the engagement with farmers, land managers and other stakeholders which is already well under way, including tests and trials.

I have to say again that I think we may sometimes be attending different webinars or whatever, because the impression I have been given is that many farmers have found it stimulating, particularly the younger ones, who have found talking about such matters, and the innovation of the new way forward, refreshing. As I have said before, they will be able to look the taxpayer in the eye and show that we are producing better for the public and better for farmers.

--- Later in debate ---

[The Deputy Speaker (Baroness Finlay of Llandaff) (CB)]

I understand that the noble Lord, Lord Grantchester, wishes to ask a short question for elucidation.

[Lord Grantchester (Lab)]

My Lords, I apologise to the House for asking the Minister a follow-up question. I listened carefully to his remarks but, by the time the communication channels had reached the Deputy Speaker, she had already intimated to the noble Baroness, Lady McIntosh, that she could have her consideration of the amendments. I had not heard any reference in the Minister’s remarks to the sustainable farming incentive, but the noble Baroness, Lady McIntosh, repeated that question to him. I understand now and am very grateful to him for the fullness of the reply that he can give tonight.

[Lord Gardiner of Kimble (Con)]

My Lords, I have been very clear that the Government are bringing forward schemes of a countryside and environmental aspect, which will be funded through reductions in the direct payments. This is what we want: to start sustainable environmental and countryside stewardship schemes. This is all about what we want to do with farmers, as part of a major plank of this legislation. I am beginning to wonder whether it is me or whether noble Lords do not want to press the receive button for what I am seeking to say.