Draft Rural Development (Amendment) (EU Exit) Regulations 2019 Draft Rural Development (Rules and Decisions) (Amendment) (EU Exit) Regulations 2019

Oliver Heald Excerpts

Thursday 21st March 2019 General Committees

[Mr Goodwill]

It is a great pleasure to serve under your chairmanship, Mr Gapes. As a farmer myself, and given that my family business participates in an agri-environmental scheme, I should mention my entry in the Register of Members’ Financial Interests.

The two statutory instruments are closely interrelated and I thank the Committee for taking them together. They amend retained EU law to ensure that rural development payments can still be made after exit day. The amendments will maintain the effectiveness and continuity of EU legislation that would otherwise be deficient after our exit. The changes are necessary to enable rural development programmes, particularly those partially funded by the European agricultural fund for rural development—the EAFRD—to continue to operate effectively in the United Kingdom following exit, until their closure after the end of the 2014 to 2020 programme period.

[Sir Oliver Heald (North East Hertfordshire) (Con)]

With his background, the Minister will know the importance of the rural development programme for England. Can he confirm that the effect of the draft instruments will be that that programme will continue unimpeded and unchanged and that there will be proper funding for it if we have a no-deal Brexit?

[Mr Goodwill]

I thank my right hon. and learned Friend for his question. I can absolutely confirm that—it is vital if we have a no-deal Brexit. If, as I hope, we do not have a no-deal Brexit—I hope Opposition Members will think about that before next week’s vote—the regulations will come into force when we leave, following the implementation period.

Four rural development programmes operate in the UK—one for each Administration—providing funding for rural businesses, farmers, land managers and applicants who live in a rural community, with the intention of growing the rural economy, increasing productivity and improving the environment. The European fund relevant to the instruments is the EAFRD, which supports the delivery of rural development in the UK and is worth £430 million a year over the programming period.

The UK Government have guaranteed that any projects funded from the 2014 to 2020 allocation will be funded for their full lifetimes, to repeat the point that I made to my right hon. and learned Friend. The changes that the draft instruments make ensure that payments can continue to be made to agreement holders, using domestic funding in place of EU funding. That will provide certainty to individuals and businesses who receive development funding or who are considering applying for funding during the current 2014 to 2020 programming period.

The draft Rural Development (Amendment) (EU Exit) Regulations 2019 amend the EU regulation that provides the general rules and structures that govern support for rural development, provide payments to be made to agreement holders and lay down rules on programming, networking, management, monitoring and evaluation. That includes the countryside stewardship and environmental stewardship schemes, which improve the environment; the countryside productivity fund, which supports productivity improvements in farm and forestry businesses; and the growth programme, which supports rural business development, food processing, tourism and broadband. Let me give examples of the sort of projects that the latter two funds might support. The countryside productivity fund might fund a fruit-growing business to increase the storage capacity of a reservoir to include water security during the summer months. The growth programme might support a company that grows salad leaves and specialist vegetables to invest in new equipment to keep up with demand and grow the business.

The draft Rural Development (Rules and Decisions) (Amendment) (EU Exit) Regulations 2019 amend the implementing and delegated provisions made under the main rural development EU regulation. They also amend four implementing decisions that approve the rural development programmes for each of the devolved Administrations. We are omitting powers to submit and implement an information and publicity strategy, and actions relating to it. That includes the requirement for agreement holders to publicise EU participation. We have all seen the big billboards around the country where EU funding has been used. As we are no longer using EU funding, putting up those big billboards, with those blue flags with yellow stars on, will no longer be a requirement. I am sure that that will be a great relief to many of those travelling around the country, and will emphasise that we have left the European Union.

I emphasise that the instruments remedy deficiencies in the regulations that are a direct result of the UK leaving the EU, to ensure that they continue to operate effectively when we leave. They do not introduce any new policy, and simply preserve the current regime for supporting rural businesses and environmental land management, among other things. The amendments include omitting redundant references to the European Commission and member states, and replacing them with either the UK or the relevant authority as appropriate. The instruments also make references to “Union law” throughout, so that the relevant EU regulations continue to operate effectively as part of national law. Provisions that are deficient because they are time limited, under which the relevant actions have occurred, have also been omitted—such as the provisions relating to ex-ante evaluations that have already been completed.

One purpose of the modifications is to ensure continuity and clarity regarding which public bodies have responsibility towards the programmes. The obligations and discretions placed on member states will continue to be exercised after exit by relevant authorities in the UK. In this context, “relevant authority” means the Secretary of State in relation to the rural development programme for England, Scottish Ministers in relation to the rural development programme for Scotland, Welsh Ministers in relation to the rural development programme for Wales, and the Department of Agriculture, Environment and Rural Affairs in relation to the rural development programme for Northern Ireland, where we do not currently have an Administration operable.

As hon. Members are well aware, agriculture is a devolved policy area, and is of special importance for all parts of the UK. We have worked closely with the devolved Administrations to produce the instruments, and they place great importance on them. They have given their full consent for them.

I repeat that the statutory instruments are required for the continued operation of the rural development programmes. Without them, there will be no legal powers to make payments to fulfil the promises that those important programmes will continue.

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[Dr Drew]

I thank the hon. Gentleman for that intervention, because in a nutshell that is where we are; we just do not know. One of the sad things about the loss of these moneys is that it has been targeted at particular groups—young farmers, for example, who desperately need investment into the way they come into the farming industry. I do not like to use the term “funny money”, but there have been ways we have been able to fund it through the various different grants that the EU has made available. Where will those grants come from in the future? People of ordinary means cannot, sadly, enter the land, because of the costs—not just of securing the land, but of investing in the way they intend to farm, particularly if they are going to be a livestock farmer. Those are very expensive and punitive impositions on them when they are in the infancy of trying to get on the land.

Before we decide how we vote, it would be useful to hear from the Minister about what the Government’s strategy is. I am aware that we have done very little in this House, which is to our shame. The Lords does a lot more work on rural economies: there is the Cameron report, which came out about nine months ago, and a report that is just about to be released by Lord Foster, which has looked at some of the impacts of rural development.

I am aware of the Rural Services Network’s call for a rural strategy, which I totally support. This is against the background of next year being the 20th anniversary of the then Labour Government’s 2000 White Paper, which was a very good piece of work because it was accompanied by a billion-pound budget. Sadly, it was all frittered away. Such things happen in Government, but many of the good initiatives that were set in place have been lost for good, which is wrong. As the then rural tsar Stuart Burgess talked about, there is £347 billion of untapped capacity in rural England. I know that is a magical, mystical figure, but it shows the capacity there is in rural England—I cannot comment on Scotland, because when I was on the Select Committee I was able to look only at rural England—to do some interesting work.

[Sir Oliver Heald]

I do not know if the hon. Gentleman remembers the 1995 rural White Paper, which I was quite involved in. It was a very solid piece of work.

[Dr Drew]

I agree entirely. The problem was that it did not have a budget, which meant, sadly, that it was rather stillborn, but it was a very good piece of work by Lord Deben. It is important that we parliamentarians recognise that the rural economy and society does not get enough publicity, and that we do not do enough to help it.

I have some questions for the Minister. It would be interesting to know the financial framework the Government envisage once the EAFRD offer goes, because I cannot see anything in place. I met a member of the rural team—I know there is one—but I do not know what budget they have to do anything. It would be interesting to know about the financial framework that the Government envisage after 2020 or, dare I say, 2021—whenever we finally leave the EU schemes.

I am taken by some of the things the Green Alliance has been saying recently about the lack of consultation, particularly in the area of stewardship. Countryside stewardship is not in a good place. We are talking about the environmental land management schemes as if they will just roll in on the back of countryside stewardship. The reality is that many farmers—the Minister will know this—are pulling out of stewardship because it is seen be too complicated and is not fit for purpose. Given that at least some of this money came through this budget heading, it would be interesting to know what the Government intend to do.

What is the Minister planning to do in order to consult more widely on how we might get towards a rural strategy? If the Government do not do it at this stage, at what stage do we move towards a rural strategy? Everyone who is involved in this area is calling for a rural strategy. If we are losing money that we have already been able to allocate, and we have not got anything else in place, at what stage do the Government get serious about launching a consultation to find out what we could do to make a difference?

My final question is about the legacy of many of the schemes that we have put in place over a generation. Is anyone going to capture them, to see in what ways we have worked with our EU neighbours and if any of them can be opened up in different formats?

I assume that there are ways and means of looking at different funding streams so that institutions such as CCRI, which I mentioned earlier, can continue to do some research on a pan-European basis. It would be a great tragedy to lose the knowledge that we have without putting anything else in its place. Whatever one’s views on the EU, I cannot find anyone who does not see that as one of the EU’s strengths; there are many weaknesses, but we do not want to throw away all the collaboration that has happened over a long period—between higher education, rural communities and practitioners within those rural communities who do a lot of the groundwork. It is important to know from the Government what they intend to put in place instead of something that will be a loss.