Leaving the EU: the Rural Economy

Philip Boswell Excerpts

Tuesday 17th January 2017 Commons Chamber

[Calum Kerr]

Hill farming—sheep farming—is one of our most fragile industries. I have deep concerns about its support in the future. I want to make a point about the level of funding because we need the Government to step up. I would like to talk about lamb when we look at trade, because it is one of the most threatened trade areas.

[Philip Boswell (Coatbridge, Chryston and Bellshill) (SNP)]

My hon. Friend spoke earlier about the lack of detail in the Prime Minister’s statement. Does he agree that the Government should have taken cognisance of the resulting report of the Environmental Audit Committee inquiry into the future of the natural environment after the EU referendum as summarised in a letter to the Secretary of State—I have it here—from the British Ecological Society, the Chartered Institute of Ecology and Environmental Management, the Landscape Institute and the Institution of Environmental Scientists? These are the people we should be listening to, and these are the details that the Government should be including in their letters.

[Calum Kerr]

My hon. Friend’s point is well made.

Agriculture is already a devolved area. As powers are repatriated from Brussels, it is essential that they go directly to the Scottish Government. Any power grab from a Westminster Government would be totally unacceptable. We absolutely understand the need for levels of commonality, but that is not a justification for a power grab by Westminster.

We need a commitment from this Government that the existing allocation of funds will not be tampered with. The starting point for funds to be delivered to Scotland is once the convergence uplift is added to the 16.5%. Throughout last year’s referendum campaign, the Secretary of State and her farming Minister, the hon. Member for Camborne and Redruth (George Eustice), who is, I understand, in Scotland, argued for Brexit and it is now incumbent on them to take responsibility for the commitments made during that campaign. Last March, the farming Minister said:

“The UK government will continue to give farmers and the environment as much support—or perhaps even more—as they get now”.

Yet this commitment appears already to have been abandoned.

Earlier this month, the Secretary of State, the farming Minister and I were all at the Oxford conference, and both the Secretary of State and the farming Minister refused to confirm that funding would at least match current levels beyond 2020. Will the Secretary of State take the opportunity today to make a clear commitment that, as the farming Minister promised, Brexit will not result in a reduction in the level of funding available for farmers? Or is this another Brexit broken promise?

We acknowledge that the CAP is far from perfect and we recognise that we now have an opportunity to design a new and better system, but we also recognise that there must be a route to sustainable farming without direct income support because there must be an evolution that takes great care over the fragility of the rural economy. It is also important to note that the CAP is about much more than farming. In Scotland, EU funding has helped to support the roll-out of superfast broadband, business development, housing investment and measures to address rural fuel poverty, in addition to improvements in infrastructure and transport through pillar two regional development funds. We need the Government to explain whether they will match the funding for such programmes and, if they will, the more detail we can have from the Secretary of State, the better.

Another area in which the rural economy has benefited massively from EU membership is freedom of movement. For significant portions of the Scottish rural economy, access to a seasonal workforce is a vital factor in keeping their operations sustainable. At any one time, between 5,000 and 15,000 non-UK EU workers are employed in Scottish agriculture alone. We support continued freedom of movement because it is a system that works not just for farming and food production but for a range of sectors in rural Scotland, especially in fragile and often ageing populations.

--- Later in debate ---

[Rachael Maskell]

I thank my hon. Friend for that point, and I have certainly scoured the speech to try to find the word “environment” in it, but it was not there. I have serious concerns that the environmental protections that we currently enjoy from the EU will not be there for the future. Of course, as we go forward and the EU makes more progress in these areas, there was no guarantee in the Prime Minister’s contribution today that that will be part of her 12-point negotiating plan or strategy. [Interruption.] I hear the Secretary of State saying that it is non-negotiable, but if it is a key point on which we expect to make progress, we need to see it in the 12-point plan. Clearly, the Prime Minister missed the opportunity to make clear the importance she would place on the environment; that was not stated.

[Philip Boswell]

Does the hon. Lady share my concern about the staggering fact that the Government have not incorporated at least some of the recommendations for future land management that were suggested earlier this month in a letter to the Secretary of State for Environment, Food and Rural Affairs from the Institution of Environmental Sciences and other professional bodies about the still foggy post-Brexit plan—

--- Later in debate ---

[Brendan O'Hara (Argyll and Bute) (SNP)]

Like every part of Scotland, my constituency voted to remain in the European Union. More than 60% of the people in my constituency said that they wished the United Kingdom to retain its membership of the European Union and allow our high-quality, locally produced seafood, whisky and other goods access to the world’s biggest and most valuable market. In return, we would continue to welcome, with open arms, the EU citizens who wished to come to live and work in Argyll and Bute and call it their home. As the economic development service of Argyll and Bute Council has done with some notable success, we would continue to promote Argyll and Bute as an excellent place for foreign multinationals to invest as they sought secure entry into the European single market for their products. That is why we voted to remain and that is why the Brexit being pursued by this Government will have a profound and damaging impact on so many areas of my constituency’s economy.

As we have heard many times, Scotland is a world leader in food and drink, and my constituency boasts 14 of the best whisky distilleries in the world.

[Philip Boswell]

Does my hon. Friend agree that the rural economy in Scotland is able to support our fantastic food and drink industry only because of the health of our environment, which has thrived under the environmental protection legislation made in partnership with Europe?

[Brendan O'Hara]

I absolutely agree, and I think that provenance and purity are essential, and a great part of what Scotland’s produce can offer.

Last year, Scotch whisky, much of it produced in my constituency, contributed £5 billion to the UK economy; whisky is absolutely massive, and removing us from the EU damages that. I am surprised that the Secretary of State seems unaware that a huge percentage of the Scotch exported beyond the EU still benefits from deals brokered by the EU, and that is what we stand to lose.

There is so much I would like to say about this issue, but let me conclude by saying that I believe membership of the European Union has been good for Argyll and Bute and for Scotland, and that our continued membership is vital to the future economic regeneration of our area. We need people in Argyll and Bute, and the plan for future economic growth put forward by its council is predicated on attracting inward migration from EU citizens who want to come to work in our food and drink sector, in our forestry, in our farming sector and on our seas. We need people to come to work in our rural communities. We need EU nationals to come to Argyll and Bute, and we welcome EU nationals to Argyll and Bute. Almost 2,000 EU nationals are living in my constituency, and it is a disgrace that this Government will not guarantee their right to remain in the United Kingdom post-Brexit. I want to put on the record the fact that every EU national living in Argyll and Bute is very welcome. They have my full support and I wish to thank them all for the positive contribution they have made and will continue to make to our communities between now and Brexit. I will do everything I can to support their staying post-Brexit.

Brexit will be bad for the UK and for Scotland, and it will be particularly harmful for rural communities such as my own. As I said, being a member of the European Union has been beneficial for my constituency, which is why when we were asked the question last June, the people of Argyll and Bute overwhelmingly voted to remain.