Agriculture Bill (Fourth sitting)

Debate between Martin Whitfield and Colin Clark

Thursday 25th October 2018 Public Bill Committees

[Colin Clark]

Q I have a question for Mr Clarke: would you welcome an amendment to the Bill to deal with the meat levy with regard to Scotland?

Alan Clarke: The meat levy has been a major issue not only in Scotland, but in Wales. For a number of years—probably from time immemorial—animals have always moved around the UK. Our figures identify that the leakage from Scotland of animals that are born and reared there but then processed in England means that about £2 million of levy money that should be Scottish is trapped in England. On average, 75% of that comes from producers and 25% from processors, so even if the producer levy could be repatriated to Scotland, it would still be a figure in the region of £1.5 million.

A lot of work has been done behind the scenes on this. The Scottish Government in particular have been leading on it and trying to put some of the processes and procedures in place that could help with it. We have an interim solution at the moment, which is called the ring-fenced fund. The ring-fenced fund is £2 million of levy collected in England by the Agriculture and Horticulture Development Board. It has to be ring-fenced and used for the benefit of levy payers in England, Scotland and Wales. If we look just at having an equitable part of that £2 million, in theory £666,000 could be valued to Scotland, to Wales and to England respectively. In reality, the money does not change hands.

That is only part of the issue. We would very much welcome a long-term solution that had the opportunity to look at the size of the issue; as I say, Scotland on its own is a minimum of £1.5 million annually.

[Martin Whitfield (East Lothian) (Lab)]

Q Just to pursue that point regarding the red meat levy, it is my understanding that to make the amendments you need a piece of primary legislation. Has there been any primary legislation since, shall we say, 2006? That was not the start of the challenges with the levy, but certainly problems date from then. Has there been any opportunity to change it until the Bill that is before the Committee?

Alan Clarke: I joined Quality Meat Scotland 16 months ago, so I came in during part of this. It has been an issue for many years. We have a real example of the three levy bodies—QMS, the Agriculture and Horticulture Development Board, and Hybu Cig Cymru, or Meat Promotion Wales—working together really well, this year in particular. We are working on a range of projects. I have just come back from SIAL—Salon International de l’Alimentation, or Global Food Marketplace—in Paris, where we have been exhibiting together on joint stands. We are doing market access work. We have just signed off a £500,000 programme to promote the benefits of red meat in England, Scotland and Wales.

There is certainly evidence that we can work together, but it is not the long-term solution that we need. I am comfortable saying that in the long term the three levy bodies will continue to work on pre-competitive issues, but at the moment we do not have full control over all that money. Approximately 34% of the money is coming back to Scotland at the moment. There is now a real opportunity. The Bill is here, and the engine is running, to quote Jonnie, so let us get on with it.

Agriculture Bill (Second sitting)

Debate between Martin Whitfield and Colin Clark

Tuesday 23rd October 2018 Public Bill Committees

[Martin Whitfield (East Lothian) (Lab)]

Q This a very straightforward question, but I am not sure you are the person to comment on it. Do you think in this primary legislation an opportunity could be taken to resolve the red meat levy discrepancy between Scotland, Wales, Northern Ireland and England?

Andrew Clark: For fear of breaking into devolved discussions, I suspect that the Agriculture Bill is not the right place. I suspect that the reform of the Natural Environment and Rural Communities Act 2006 that set up the Agriculture and Horticulture Development Board in the first place, might be the appropriate place. Whether legislation is the way to sort that out or having the parties sit round the table and come to agreement, it is part of a wider issue, which again is perhaps not covered in the Agriculture Bill as much as it should be.

Scotland is absent, as we know, from the schedules, which from a UK farming perspective is concerning. We would like to see a common framework in agreed areas across the whole country, because that benefits every farm business and allows the free flow of goods and services and agricultural activity across the whole UK economic area.

[Colin Clark (Gordon) (Con)]

Q World Trade Organisation rules have come up as a potential concern—that could constrain payments such as less favoured areas or coupled support. It has been said that the Secretary of State could potentially limit devolved Administrations or even England. In earlier evidence, the Royal Society for the Protection of Birds said that WTO concerns were a red herring. Is it a concern you share, considering that we have an aggregate measure of support in the amber box? Are you concerned about the WTO being an issue?

Andrew Clark: There is clearly an obligation on the UK to be a responsible party to the WTO. However, the measures that have taken place that can influence that compliance and participation are devolved to individual parts of the UK and the Governments there. I think that devolution should be respected, but the Governments in each part of the UK need to come together, compare and agree an approach that works for every part of the UK.

We are concerned that, although there might be no intention at the present moment for some of these powers that are granted under the Agriculture Bill to be used by Ministers, this Bill could last 40 years. It could be another decades-long power. Those powers could be used very differently by different Administrations in future. In terms of the WTO obligations and powers, we are not sure how those powers might be used in future.

It is clear that we need to get some more clarity about the powers. That applies not just to the WTO provisions but to many other powers. I think the House of Lords Delegated Powers and Regulatory Reform Committee counted 26 new powers granted to Ministers across the Agriculture Bill. We need to have clarification about how those powers are going to be used, in order to have the full sight of Parliament and stakeholders such as the NFU on those detailed concerns.