Single Payment Scheme

Neil Carmichael Excerpts

Wednesday 8th June 2011 Westminster Hall

[Jeremy Lefroy (Stafford) (Con)]

It is an honour to serve for the first time under your chairmanship, Mr Scott.

I will keep my remarks shorter than normal, because several of my hon. Friends wish to intervene and comment on the subject, which is important. It is a great pleasure to see the Minister, who is such a doughty champion for agriculture.

I am pleased that we have the opportunity today to debate this important subject, which is vital not only to farmers in my constituency and throughout the country but to ensure that food is on the table of every person at an affordable price. Food production has long been taken for granted in this country and elsewhere in the world, at least since the green revolution. Until recently, it has not been the subject of much political debate in Europe, but it is no coincidence that this year President Sarkozy has made food a top priority at the G20, which is particularly appropriate for a Frenchman.

Recent headlines from around the world highlight the importance of food production: “Devastating food shortage said to be looming in Kenya”—all these headlines are from the past week or two—“Tanzanians debate rising food prices”, “Drought affects rice production in two central China provinces” and “Regional bank warns Caribbean of impact of rising food prices”. At last, we are waking up to the importance of food security, and it is about time, too.

In our own country, according to the Office for National Statistics, the population is expected to reach 65 million by 2018 and 70 million by 2028. With 7 million more people to feed in the UK alone over the next 15 years, we must act now to ensure that we can meet our needs sustainably. We cannot consider our own needs alone. Another 2 billion will be added to the world’s population in the next 40 years, yet uncultivated land is perhaps as little as 10% to 12% of what is currently cultivated, leaving little room for manoeuvre. That presents a huge challenge, which will only be met by better yielding crops, irrigation, fertiliser and so on. It also brings opportunities for the UK.

The UK has a competitive advantage in food production. We have a temperate climate, excellent yields, efficient farmers, high standards and a strong food manufacturing industry.

[Neil Carmichael (Stroud) (Con)]

I completely agree with my hon. Friend that we need to focus on food production, which it is appropriate to discuss in the light of reform of the common agricultural policy. We need to focus on our profitability and the production of food, as well as, correctly, on protecting the environment. We have to strike the right balance. Does he agree?

[Jeremy Lefroy]

I entirely agree with my hon. Friend, and I will come on to that in a moment.

The strong food manufacturing industry is the largest manufacturing sector in the country and a vital customer for our raw materials. My own county of Staffordshire, along with Gloucestershire, Devon and many other counties represented in the Chamber today, views agriculture and food production as a business of the future and not of the past. Whereas other counties have sold off much of their farm estate, Staffordshire has largely retained its own, and continues to invest in it.

I have to declare a local interest, as about half of the county-owned farms—some 50—are in my constituency. They provide a start for the many young people who wish to farm but do not have the land or capital to do so. South Staffordshire college recognises the need for training young people on the land, and I welcome its application to establish a land-based academy at Rodbaston in my constituency, along the lines of the excellent JCB academy for technical subjects in nearby Rocester.

Last year, UK food and non-alcoholic drink exports topped £10 billion for the first time. If ever we needed a reminder of the importance of Ireland to our economy, it lies in the fact that Ireland is our No. 1 customer, followed by France, the Netherlands and Germany. Our recovery depends substantially on export growth, and agriculture is making a strong contribution. We also import £31 billion a year in food and non-alcoholic drinks, leaving plenty of room to increase market share at home. Food is also of increasing importance to the cost of living, in particular for those on low incomes. As with fuel, the more we produce ourselves, the less we depend on sources of supply over which we have no control on price, quantity and, I must say, quality.

Given the apparently rosy outlook for agriculture, why am I concerned about the single payment scheme or direct payments to farmers? Surely agriculture can survive on its own, without support. I have no doubt that it will, eventually, but that day has not yet come.

--- Later in debate ---

[Jeremy Lefroy]

I entirely agree with my hon. Friend. That is why the Bill that proposes a supermarket ombudsman is welcome, but we need that as soon as possible, because in some parts of the dairy industry, despite recent small improvements in prices, there is a crisis, with people going out of business every week.

[Neil Carmichael]

Does my hon. Friend agree that it is surprising that only Government Members are here today to support this debate?

[Jeremy Lefroy]

I thank my hon. Friend, but I will not comment on what he has said. This is an extremely important matter, and I am sure that many hon. Members who would have loved to be here are not in their seats because they are otherwise detained.

I shall conclude, because I know that at least one other hon. Member wants to speak, and I must rightly give him time. The discussions about the future of the CAP after 2013 are critical for Britain. If the outcome is right, British agriculture will thrive and deliver high-quality, fairly priced food to the British people and to the world. There will be increasing employment in rural areas, with increasing exports and a narrowing of the trade gap. We will also ensure our own food security and that of those to whom we are net exporters of cereals, as we are in many years. Essential to getting the CAP right, in my view and that of many others, is the maintenance of direct payment to farmers, which keeps so many of them in business through the ups and downs of farm-gate prices.