Agriculture Bill

Lord Hain Excerpts

Committee stage & Committee: 5th sitting (Hansard) & Committee: 5th sitting (Hansard): House of Lords
Tuesday 21st July 2020 Lords Chamber

There is nothing controversial about these amendments, because if future reports on food security are to have any value, they will inevitably include detailed figures on water, loss of agricultural land, urban development, expected changes in domestic population levels, and on shifts in world food consumption and transportation. I accept that my drafting is unlikely to be good enough, so I invite my noble friend to take these amendments away and bring them back in a redrafted form for debate on Report. I hope that it may be possible for me and other interested parties to meet my noble friend and his officials for a moment to discuss these matters in depth.

[Lord Hain (Lab) [V]]

My Lords, I echo the comments of the noble Lord, Lord Hodgson, who spoke with such authority. I wish to speak to my Amendments 164, 167 and 170, to Amendment 160 in the name of my noble friend Lady Jones of Whitchurch, and to Amendment 166 in the name of the noble Baroness, Lady Boycott, and others. They seek to ensure that food security is properly recognised in the Bill, in a way that takes full and explicit account of the legitimate interests of all the devolved Administrations. I am grateful for the support of colleagues who have put their names to my amendments.

The tragedy of the Covid pandemic has demonstrated the links between access to nutritious food and public health. Conditions such as obesity and diabetes, which are linked to poor nutritional standards, have been associated with a higher risk of severe illness, hospitalisation and death from Covid-19.

The panic buying we saw in anticipation of lockdown reminded many of us of the importance of the sustainability, resilience and security of our food supply. However, for many people panic buying is not an option, as poverty means that a secure and nutritious food supply is an everyday challenge. A decade of austerity has widened the gap between the haves and the have-nots in our society, and the recent loss of earnings due to Covid-19 has added massively to the numbers struggling with food insecurity.

The pressures on food banks have increased, and it is estimated by the Food Foundation that over 8 million people, including 2 million children, in the UK have faced food insecurity of some kind during the pandemic. Recently, it took the intervention of Premier League footballer Marcus Rashford to elicit a response from this Government on the need to continue free school meal vouchers over the school holidays. However, as the Children’s Society pointed out, the Government should make the extension of free school meal vouchers over the holiday permanent, whether or not there is a pandemic. The Government need to take much more responsibility for ensuring that all UK citizens have access to adequate supplies of nutritious food.

In a nation where 50% of food is currently imported—30% from the European Union—the importance of protecting high standards of nutritional value, and of the security and quality of both our domestic production and the high-quality fresh produce we import from the EU, cannot be overestimated. The subsector is very dependent on imports, as only 16% of the fruit and 53% of the vegetables we consume are grown in the UK. In this situation, retailers will face potential shortages of supplies if trade barriers are introduced because of a hard Brexit.

Our reliance on fruit and vegetable trucks coming across from Europe reminds us of the importance of securing an extension to the Brexit transition period to allow time to recover from the impacts of the pandemic and for the negotiators to strike the right Brexit deal. However, on the contrary, the Government appear to be prioritising trade deals with countries far beyond Europe, such as the United States, with its inferior food production and unsafe animal welfare standards. If such trade deals are allowed, with no requirement to preserve the high standards that Britain and the European Union have maintained, they will undercut our farmers with poorer-quality cheap food.

For agriculture and the food industry, and for both imports and exports, the continuation of European Union trade, where we have a level playing field, is vital. We need to ensure that Brexit does not mean that supply lines of fresh food from the EU are interrupted because of tariff barriers, or that our farmers lose their important export markets in the EU. In the post-Covid world, to meet nutritional and environmental goals, we need to trade more, not less, with our nearest neighbours.

A legal guarantee of future food, animal welfare and environmental standards would safeguard all UK consumers from unhealthy and unsafe food, while also protecting British farmers at risk of being undercut by poor-quality imports. However, so far, the Government have failed to support calls for such amendments to the Bill. The Bill is an opportunity to protect all British consumers and farmers from food imports of dubious quality, and to maintain current nutritional, environmental and animal welfare standards for vital imports of fresh food.

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[Baroness Jones of Moulsecoomb [V]]

My Lords, the noble Baroness, Lady McIntosh of Pickering, has explained this issue extremely clearly. Essentially, Amendments 174 and 285 would greatly improve the definition of when exceptional market conditions exist, which would be a very sensible thing to include in the Bill.

My Amendment 176 would prevent financial assistance in exceptional market conditions being given to producers who do not meet animal welfare standards. I set out the arguments for restricting this assistance in the debates on previous groupings but, in short, public money should not be given to producers who fail on animal welfare—in fact, such producers should not be in business at all.

[Lord Hain [V]]

My Lords, it is always a pleasure to speak after the noble Baroness, Lady McIntosh, who speaks with such authority and passion on these agricultural questions.

I wish to speak to my Amendment 175; I am grateful for the support of the noble Lord, Lord Cormack. The agricultural sector has always been subject to the whims of nature and climate. However, recent years have seen an increase in disruptive weather patterns, such as prolonged, unseasonal periods of flooding, extreme cold and heat, and drought—often with different challenges at the same time in different areas of the country. We have also experienced the impact that invasive diseases, such as bird influenza, blue tongue and ash dieback, can have on plants and animals.

These unexpected, often catastrophic, events can deliver significant damage to our agriculture businesses, both individuals and whole sectors. A year’s worth of income can be decimated by one bad storm or a few rain-free months during a growing season. In Wales, the 2013 heavy spring snow is a good example; by the way, England was even worse hit then. Another example in Wales is the long summer droughts of 2018 and 2019 that caused even secure water sources to dry up and arable yields to drop significantly as water for irrigation was unavailable. These farming “natural disasters” are at such a scale that there is a case for state sector intervention of the kind that this amendment proposes—especially with the growing impact of climate change, which is undoubtedly a cause of them.

These uncontrollable factors uniquely affect the products that we grow from our land. Increasingly, it is not just the market conditions of the globalised agricultural commodity markets that affect our core industry of food and farming; it is the untameable elements of nature that are getting increasingly erratic and wild. This new reality, already acknowledged and understood when we look at actions around climate change adaptation, needs to be extended into the thinking on how we support farming businesses affected by these situations. The drivers of exceptional circumstances have changed, and we must change with them. I hope that the Government take heed of that.

Indeed, that imperative is underlined by official Defra statistics showing that our food sector is heavily reliant on imports. We export £2.1 billion of meat but import £6.6 billion, and we export £1.3 billion of fruit and veg but import a massive £11.5 billion. We are so vulnerable as a nation over our food supplies; that is made worse by the ravaging effects of climate change.

The policy objective of this Bill is admirable. It is to encourage and incentivise our farmers, the custodians of our countryside and the managers of our land, to deliver more environmental benefits from their land use and use new trade opportunities and markets to increase economic sustainability. This ambition must be balanced with a fresh look at how, when and why the Government are willing to provide additional support to a key economic sector in crisis. That means looking beyond the traditional and narrow definition of what drives economic failures. It also means acknowledging and providing emergency support tools to deal with the reality that our climate, our weather and our environment are changing and that businesses operating in the natural environment will be detrimentally impacted by factors completely beyond their control—indeed, beyond our control—including the Covid-19 pandemic, an unexpected crisis that has shaken the world economy beyond anybody’s imagination. We should be using this opportunity to make sure that we have the tools and powers in place to allow us to support those businesses if and when a natural crisis occurs, which is what Amendment 175 seeks to do. I hope that it finds favour with the Minister, who has played such a constructive role in his sympathetic handling of this Bill.

[Lord Carrington]

My Lords, I declare my interests as a farmer and landowner, as set out in the register. I had great pleasure in putting my name to the important Amendment 174, and to Amendment 285, proposed by the noble Baronesses, Lady McIntosh of Pickering, Lady Jones of Moulsecoomb and Lady Ritchie of Downpatrick. This amendment has the support of the Tenant Farmers Association, the National Farmers’ Union and the CLA, together with a high proportion of farmers. They have the invaluable experience of farming the land and are well aware of the many unpredictable factors that can quickly turn a crop from profit to loss or livestock from asset to liability.

Amendment 174 widens the definition of “exceptional market conditions” to make sure that as many circumstances as possible are covered. It moves beyond global market changes to other triggers, such as severe weather and disease. The intention is not to provide an easy escape route for farmers to claim that circumstances have conspired against them. The definition remains tighter than many would wish. It is particularly important that we get this right, in view of the removal of the overall safety net of the basic payment scheme, which has protected farmers from so much volatility, often caused by exceptional market conditions, for over 40 years.

The importance of the amendment is shown by the events earlier this year when rain caused devastating flooding. Happily, the Government stepped in and support was given to flooded farms. However, the effects of this—hopefully exceptional—weather event were felt much more broadly, and the result can be seen across the country: land left fallow, patchy crops and much more. Most farmers have relied on the BPS to cover their fall in income. This sorry situation was compounded by the length of time it took the Government to repeal the three-crop rule. Desperate farmers drilled crops in unsuitable conditions to adhere to the rule, and this has caused environmental damage to soil structure and more.

It is also vital that a process exists to ensure that there are no delays in triggering intervention. The impact of Covid-19 on the dairy industry is a good case in point. Although a support scheme was implemented, it took an inordinate amount of lobbying by the industry to achieve a positive result.

Finally, I am not a lawyer, but I ask the Minister to clarify exactly what is meant by “prices achievable” in subsection (2)(b). It is surely a matter not just of price but of income too. Can the Minister confirm that it covers the situation where a farmer or grower cannot achieve the price because he does not have the product to sell, due to drought, flood, disease or other exceptional conditions?

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[Lord Hope of Craighead (CB) [V]]

My Lords, I wish to speak to Amendment 267, to which the noble Lords, Lords Bruce of Bennachie and Lord Wigley, and the noble and learned Lord, Lord Wallace of Tankerness, have very kindly added their names. It seeks to insert into Clause 40 a provision designed to protect the interests of the devolved authorities with regard to the exercise of the regulation-making powers conferred on the Secretary of State by that clause.

I express my support for Amendment 291, in the names of the noble Lords, Lord Wigley, Lord Bruce and Lord Thomas of Gresford. I am also very much in sympathy with the amendment that the noble Baroness, Lady Finlay, has just spoken to and to which my Amendment 255, which will be debated some time on Thursday, closely relates.

Turning to my own amendment, Part 6 of the Bill, of which Clause 40 forms part, concerns the WTO Agreement on Agriculture, which came into force in 1995. The agreement, reduced to its simplest terms, contains three pillars: domestic support, market access and export subsidies. The EU’s common agricultural policy has been subject to its discipline ever since the agreement was entered into. That responsibility, so far as the UK is concerned, will pass to the Government of the United Kingdom when the transitional period comes to an end. That, as I understand it, and in short, is what Part 6, and Clause 40 in particular, is all about.

It has been drafted on the assumption that it will be the responsibility of the Government at Westminster to ensure that all UK policies on domestic support, including those of the devolved Administrations, are compliant with the agreement. That is because, so the argument goes, the UK will be the signatory to the agreement, not the individual nations within it. As a matter of international law, there can be no argument with this approach, but the Bill is concerned with the exercise of this responsibility within the United Kingdom. This is a matter which needs to have regard to our own domestic arrangements, and especially to the fact that agriculture is devolved.

Indeed, agriculture is not, in the case of any of the Administrations, reserved to Westminster. Therefore, as these Administrations see it, the starting point for any system of regulation to ensure WTO compliance by the UK as a whole must be that it is the responsibility of each of the devolved Administrations to devise its own system for the support of agriculture with whatever resources may be available.

When one examines Part 6 in that light, it can be seen that it fails to respect these domestic arrangements. Clause 41(5) will enable the Secretary of State, in the exercise of the Clause 40 power, to set financial ceilings in relation to agricultural support provided by the devolved Administrations of a kind that is classified as “Amber Box” by the WTO, and to establish a decision -making process for the classification of agricultural support in accordance with WTO criteria.

The Secretary of State could set limits on the amount of domestic support targeted at specific measures that the devolved Administrations were seeking to apply to meet their own objectives. Those could be at a lower ceiling than exists under the current arrangements. Reducing the amount of support given to sheep farmers in Wales and Scotland, for example, would be a matter of very great concern, given the narrow margins within which hill farmers in those countries have to operate and the formidable challenges they now face due to the collapse of the export market for wool, to take just one example.

My amendment seeks to ensure that the Secretary of State will consult the devolved Administrations when he prepares regulations under this clause. It does not go so far as to require him to secure their agreement. In an ideal world, that would of course be desirable so that all parts of the UK could work together on this matter but, given the political tensions that currently exist, asking him to secure agreement may be asking for too much. I am not asking for that, but I stress the importance of consultation so that the Secretary of State is fully informed before decisions are taken and that this is written into the Bill.

It is good that, as can be seen from Amendment 268, the Government have departed from insisting on the provision of information by the devolved Administrations about their own proposed or existing farming support, as that is their business. But consultation about steps that the Secretary of State proposes to take is essential if serious misunderstandings and, worse still, a real sense of injustice and resentment are to be avoided. I should add that NFU Scotland supports this amendment, although it would prefer that decisions on financial ceilings should be taken not just after consultation but with the agreement of the devolved Administrations.

I recall that on 7 July, replying to an amendment moved by the noble Lord, Lord Wigley, the Minister said:

“Good progress has already been made by the United Kingdom Government and the devolved Administrations in developing an administrative framework for co-ordinating agricultural policy on the basis of co-operation and mutual consent.”—[Official Report, 7/7/20; col. 1043.]


I think he has said the same thing on a number of occasions this evening. I very much welcome that but I hope that, in that spirit, he will look favourably on my amendment and I look forward very much to his reply.

[Lord Hain [V]]

My Lords, it is a pleasure to follow the noble and learned Lord, Lord Hope, who made some compelling arguments, especially about the devolved question. I endorse the points made by the noble Baroness, Lady Finlay of Llandaff, about Wales and the Welsh Government’s needs.

I wish to speak to Amendment 284 in my name. The shape and political make-up of the UK have shifted significantly since the last time we laid domestic agriculture legislation 40 years ago. When the UK first adopted the common agricultural policy, it was on behalf of the whole UK. Now, as we seek to replace that policy, we are doing so as four distinct Administrations with overarchingly aligned but divergent interpretations of what the common agricultural policy is able to deliver.

Devolution developed within the context of the CAP. The Welsh Government were given competence for agriculture policy in 1999. The strength of devolution, for agriculture in particular, is that it gave the constituent parts of the UK—areas whose topography and climate have produced vastly different agriculture sectors—the ability to shape the policy and support to suit individual needs. The flexibility to tailor individual needs while working with high-level parameters and outcomes, laid out in the framework of the CAP, was a key component of what made the policy work in terms of its structure, while delivering the careful balance between divergence and uniformity. The common overarching objectives—the commitment to seven-year funding cycles, the broad agreements on spending limits and the overall breadth and intention of the policy framework —combined to produce a competitive but level playing field. It was a structure that enabled disparate areas with different agricultural systems to address local needs while working towards strategic goals.

As the UK Government and devolved Administrations develop new agricultural policy with new policy intent, we must surely take time to consider not merely what CAP delivered but how it delivered it. While the landscape and agricultural sectors of Wales may be different from England or Scotland—or Northern Ireland, for that matter—we are unified by the need to trade effectively both internally and externally. The fundamental need to unify areas of common interest should be accounted for in this Bill.

For Wales, the most pressing issue is the ability to agree and deliver a multi-annual funding arrangement with Her Majesty’s Treasury. Multi-annual funding is key to providing stability to a sector that takes time to see the impact of any investment or delivery of any environmental outcome.

Currently, the budget for Wales is set through the annual spending review negotiation between the Treasury and the Welsh Government. An annual funding mechanism for agriculture and land management will create too much uncertainty for Welsh farmers. This lack of stability will destroy the level playing field for farmers and agribusinesses in Wales and consequently the integrated food supply chain within the UK. This is a uniquely Welsh constitutional and political problem.

In this Agriculture Bill, we have a clear opportunity to put in place steps to design and deliver a multi-annual funding arrangement that can create a common structure with shared opportunity against shared UK objectives while allowing devolved Administrations to meet domestic needs. It is the first building block to ensuring that we can accommodate and build resilience into our agricultural sector, our food and drink sector, and the UK’s national security. This is the context in which I have spoken to my amendments.

[Baroness Ritchie of Downpatrick [V]]

I support the amendments in my name. Amendment 289 seeks to introduce a sunset clause so that provisions relating to Northern Ireland are timebound, while allowing suitable time for the development of bespoke legislation within the next Assembly term—some time post-2022—and taking into account disruptions in future planning as a result of the Covid-19 pandemic, providing a clear timeframe for Northern Ireland.

As the Minister has mentioned, Clause 45 and Schedule 6 refer to the devolved regions and, in that respect, to Northern Ireland. While the schedule provides much-needed certainty in the short term, Northern Ireland is still left without a long-term vision for how agriculture and the environment will be supported in the future and without clarity around what outcomes a future policy framework should aim to deliver.

This is despite widespread recognition from stakeholders that the current system is not fit for purpose. Northern Ireland is facing considerable challenges in terms of species and habitat loss, agricultural GHG emissions, poor water quality and marked volatility, among others. The way we manage our land use will directly impact on our ability to mitigate and adapt to climate change as well as helping meet a range of other environmental commitments.

There is a need to reform how we farm and manage our land and move towards a resilient, profitable and environmentally sustainable farming sector. The need to outline a future direction of travel for Northern Ireland is of paramount importance. Currently, a risk exists that the provisions within the Northern Ireland schedule could continue indefinitely, and this would result in the long-term continuation of direct payments in their current form, which have been criticised by a range of stakeholders and do little to address the numerous crises facing farming and the environment. While the provisions in the Northern Ireland schedule are similar to those that apply in Wales, there is an important difference: the Welsh provision will expire in 2024, while there is no sunset clause outlined for those relating to Northern Ireland. This is largely due to the fact that the Bill was created in the absence of an operational Assembly. We have now had an operational Assembly since 11 January this year and, in fact, this amendment has already been discussed by the DAERA Assembly Committee in Northern Ireland, which supports it. It is also supported by the Nature Friendly Farming Network.

In that regard, I thank the noble Lords who signed my amendment, including the noble Baroness, Lady McIntosh of Pickering, and the noble Lords, Lord Alderdice and Lord Hain. I know that other noble Lords also support it, so it is important to noble Lords that the presence of a sunset clause relating to the Welsh schedule creates an onus on the Welsh Government to develop domestic legislation in a time-bound manner. The absence of that sunset clause relating to the Northern Ireland schedule creates a risk of the development of a future agricultural policy framework for Northern Ireland being further delayed—hence my amendment. I beg to move.