Leaving the EU: the Rural Economy

Mary Creagh Excerpts

Tuesday 17th January 2017 Commons Chamber

[Mary Creagh (Wakefield) (Lab)]

I want to speak about the Environment Audit Committee’s report, “The Future of the Natural Environment after the EU Referendum”, which is tagged in this debate. I pay tribute to my hon. Friend the Member for Bristol East (Kerry McCarthy) and to the hon. Member for Taunton Deane (Rebecca Pow), both of whom are in the Chamber today. Our report, produced by a cross-party group of MPs, found that changes from Brexit could put our countryside, farming and wildlife at risk, that protections for Britain’s wildlife and special places currently guaranteed under European law could end up as “zombie legislation”, even with the great repeal Bill, and that the Government should safeguard protections for Britain’s wildlife and special places in a new environmental protection Act. I will talk a little about that, but first I will address the issues around agriculture.

The Committee found that farmers face triple jeopardy from leaving the EU. Let us not forget that farms and farm businesses account for up to 25% of all UK businesses. First, the CAP provides 50% to 60%, on average, of UK farm incomes, and the figure will be much higher for certain farmers. The loss of the CAP threatens the viability of some farms.

Secondly, the new trade agreements could threaten incomes if they result in tariff or non-tariff barriers to export. At the moment, 95% of lamb exports go to the EU. If we are exposed to a common EU customs tariff, it could mean charges of up to 30% according to the Country Land and Business Association. Thirdly, any new trade deals with the rest of the world, such as that proposed yesterday by Mr Trump, could lead to competition from countries with lower animal welfare, environmental and food safety standards.

The Secretary of State for Exiting the European Union told the House that he will do everything necessary to protect the stability of the financial services sector, and again we heard reassurances to the car industry in the UK, but there have been no such reassurances to the 25% of UK businesses that are classed as rural businesses. The Secretary of State for Environment, Food and Rural Affairs said during a question and answer session at the Oxford farming conference that farm exports to the EU will decline post-Brexit. She also did not give my Committee any clarity on whether there will be subsidies for farmers after we leave the EU, and the Committee wants to see clearly defined objectives for future subsidies, such as promoting biodiversity, preventing flooding and repairing peat bogs.

[Kerry McCarthy]

Does my hon. Friend share my concern that, when the Environment Secretary gave evidence to the Committee, she said that up to a third of environmental legislation will not be covered by the great repeal Bill? That leaves a huge vacuum for environmental protection.

[Mary Creagh]

My hon. Friend is right. Our Committee discovered that copying EU legislation into UK law will not be enough for up to a third of the UK’s environmental protections. There is a risk that the legislation will be transposed but will no longer be updated because there is no body to update it, will not be enforced because there is no body with the legal duty to enforce it and can be eroded through statutory instruments with minimal parliamentary scrutiny.

Of course, we have had calls from some parts of the Conservative party for a sunset clause in the great repeal Bill, which is another thing from which the Secretary of State did not distance herself when she appeared before our Committee. That is why we want a new environmental protection Act to be passed before we leave the European Union. If the Government are to achieve their manifesto commitment for this to be the first generation to leave the environment in a better state than it found it, they must set out how they will provide an equivalent, or hopefully better, level of protection when we leave the EU. This House will have a vital role in providing clear-sighted scrutiny, rather than cheerleading, as that debate goes forward.