Agricultural Transition Plan

Debate between Philip Dunne and George Eustice

Monday 30th November 2020 Commons Chamber

[George Eustice]

First, let me confirm that the policy we set out today is for England. Indeed, most of the powers in the Agriculture Act 2020 were for England. It will be open to the devolved Administrations to pursue their own policy. Even under the common agricultural policy, devolved Administrations had some freedom about the pillar 2 schemes that they could put in place. We will also co-ordinate policy with the devolved Administrations to ensure that there is no disturbance within the internal market. It is the case that over time, albeit at different paces, other devolved Administrations will not want to be shackled to the common agricultural policy that we have inherited, and they will want to take the opportunity to do things better.

The second point I would make relates to the profitability of agriculture. The hon. Gentleman mentioned the position of smaller farms. In fact, work done by AB Agri on farm productivity shows that there is not a correlation between farm size and productivity. Indeed, it is often the case that highly technically proficient, smaller family farms will have lower overheads and can look forward to the future with confidence. Agriculture is an industry that needs attention to detail, and that attention to detail is often best given by some smaller enterprises.

The other point I would make relates to food standards, which have been debated extensively in this House during the passage of the Agriculture Bill, now the Agriculture Act. We made changes to the Bill to introduce the Trade and Agriculture Commission and to require the Secretary of State to bring a report to Parliament outlining the impacts of any trade agreements on those standards. We have also been very clear as a Government that we will protect our producers from being undermined by substandard products produced overseas by using a combination of sanitary and phytosanitary policy in trade agreements and tariff policy.

I do not accept the criticism that the plan lacks detail. It is a 65-page document with many detailed annexes. It sets out in great detail the pace at which we intend to reduce the basic payment scheme, the other schemes we intend to roll out and the years we intend to roll them out. There will be some further consultations in the new year, in particular on the design of the voluntary exit scheme that we have said we will offer to those farmers who want to exit the industry with dignity.

I should make one final point, which is that our Agriculture Act requires the Government to report on food security every three years. The coronavirus pandemic has proven to us that domestic food production is a critical component of the food security of our nation, and that is something we will continue to measure and to support, so that we can have a vibrant food-producing agriculture sector in this country.

[Philip Dunne (Ludlow) (Con) [V]]

I broadly welcome the thrust of these transition arrangements to improve the environment, although as a farmer I am concerned about farming viability—given the phased 50% cut in support over the next three to four years—for those who will miss out on the environmental land management scheme pilots for 5,500 successful applicants, until the new ELM scheme comes in from 2024. The Secretary of State is offering a lump sum exit scheme to encourage farmers to retire and a new scheme for new entrants from 2022, but in view of the high costs of mechanisation and the time to achieve the viability of a new enterprise, does that not risk continuing the process of consolidation of farming businesses into larger holdings, in particular in disadvantaged areas?

[George Eustice]

My right hon. Friend makes an important point, and we are considering that in the design of our schemes. We are working with county farms across the country to improve the offer that county farms have, to create opportunities for new entrants and to encourage them into partnership with other landowners so that there can be more opportunities for those new entrants and to create an incubator model for these new entrants.

In terms of the viability of farms as we progressively reduce the basic payment scheme, it is important to recognise that this is an evolution, not a revolution. It is the case that from 2022 we will open the sustainable farming incentive to all farmers.

Environment Bill

Debate between Philip Dunne and George Eustice

2nd reading & 2nd reading: House of Commons
Wednesday 26th February 2020 Commons Chamber

[George Eustice]

I will make some progress.

Landowners will be able to agree conservation covenants with charities and other bodies, so they can be assured that subsequent landowners will be required to continue the sustainable stewardship they have started. The Bill will require developers to provide a 10% increase for nature, giving them the clarity they need to do their bit for the environment, while building the homes we need across our country.

Nature recovery networks will join up space for species across our country, with local nature recovery strategies capturing local knowledge and mapping habitat hotspots, so that we can target investment where it will have the greatest impact.

[Philip Dunne (Ludlow) (Con)]

Will my right hon. Friend give way?

[George Eustice]

I will give way one more time.

[Philip Dunne]

I am grateful to my right hon. Friend, who is being generous in giving way. I apologise for not being able to speak in this debate as I have a Westminster Hall debate at 2.30 pm.

Can my right hon. Friend reassure the House that there will be coherence between the environmental land management scheme presented in the Agriculture Bill and empowering people to be supported through the nature recovery schemes?

[George Eustice]

Yes, that is what we will be doing. Indeed, the design of our future environmental land management scheme will have a local component, and we want to make sure that what we do to promote nature through ELM is consistent with the local nature recovery strategies.

Flooding

Debate between Philip Dunne and George Eustice

Monday 24th February 2020 Commons Chamber

[Philip Dunne (Ludlow) (Con)]

As we have already heard this afternoon, Shropshire has been badly hit by Storm Dennis. About half the houses affected are in my constituency, on both the River Severn and the River Teme. Upstream from Tenbury Wells, Ludlow has had floods. What we need there are flood defences similar to those that are available elsewhere on the River Severn. As we speak, householders in Bridgnorth, Clun and Shrewsbury are expecting water levels higher than those of Monday last week. That is an immediate challenge. In the aftermath of the floods, will my right hon. Friend, as he considers the next phase of flood defences, also consider towns such as Bridgnorth, Ludlow and Clun in my constituency?

[George Eustice]

Demountable defences, which can be temporarily placed alongside key rivers such as the Severn, have played an important role, but, as my right hon. Friend says, we are not out of the woods yet. Water levels will continue to rise, and some towns, including those that he mentioned, continue to be at risk.

Agriculture Bill (Twelfth sitting)

Debate between Philip Dunne and George Eustice

Thursday 15th November 2018 Public Bill Committees

[George Eustice]

I want to give the hon. Gentleman some reassurance about clause 32. It is a fairly standard inclusion in many Bills, and it is clear from subsection (1) that it is about consequential changes. In particular, that subsection talks about

“provision or savings in connection with any provision of this Act.”

If a change were made to the administration of a pillar 2 countryside stewardship scheme, and that affected a scheme that had been entered into under a previous body of law, the Government might want to be able to make consequential amendments as a result—to be able to pay the final year of a countryside stewardship agreement, for instance. Those are the kinds of changes we are talking about. It is difficult to predict when the Government might need to use that power, but it is to be used in a very narrow set of circumstances—for those savings provisions, effectively—just to ensure that we can tidy up loose ends. It is not to be used to make, or change, policy. It is very clear that these amendments are consequential to other provisions that have already been debated.

Question put and agreed to.

Clause 32 accordingly ordered to stand part of the Bill.

Clause 33

Financial provision

[Mr Dunne]

I beg to move amendment 109, in clause 33, page 24, line 39, at end insert—

“(2) Payments made by virtue of this Act must be paid pursuant to regulations made by the Secretary of State to implement a multi-annual financial framework determining the monies available under this section.

(3) Prior to any payments being made under this section, regulations must be laid before the beginning of the agricultural transition period.”

The Agriculture Bill should establish a multi-annual budgetary framework that provides certainty for farmers and allows them to plan and invest for the future.

I stress at the outset that this is a probing amendment, and I am looking for the Minister to give me some comfort that what I am asking for is in line with current practice and widely supported by the industry. I urge the Minister to have discussions across Government to consider whether something along the lines of this amendment could be incorporated in the Bill at a later stage. I have tabled the amendment because under the scheme that we are currently looking to replace—the CAP scheme—multi-year support packages have been agreed, and all farmers across the UK have been operating according to those packages and are accustomed to them. That is my first point.

Secondly, the Government have already acknowledged the importance of a multi-year settlement in the transition arrangements that they have announced and the Minister has secured from the Treasury, with a commitment to 2022, which is a significant development. I give full credit to the Minister and his colleagues in the Department for Environment, Food and Rural Affairs for securing a commitment from the Treasury that takes us ahead of the comprehensive spending review period—outwith that—in order for farmers to have confidence in the way in which the current scheme will transition into the new one.

Thirdly, the new scheme is intended to be a multi-year arrangement for the period from 2021, as we move from an area-based payment to a public goods-based payment. The Government have clearly recognised that multi-year arrangements are required for this industry, not least because—as we have heard previously in this Committee—many tenancy agreements and stewardship arrangements are undertaken by farmers on a multi-year basis. That is not always the case: some tenancy arrangements, such as grass keep, last for only one season, but many last for many years.

--- Later in debate ---

[George Eustice]

Like my hon. Friends the Members for Ludlow, for Gordon and for Brecon and Radnorshire, I understand that this is a critical issue. I agree with the sentiment that we can put into the Bill all the powers we like and come up with all the creative policy we like, but that they will not mean anything without money to underpin them.

For reasons that the Committee will understand, I will not support the amendment. Before I come on to that point, however, it is important to recognise what we have already done to acknowledge the importance of clarity on funding. At the last general election, we made a commitment to keep the total cash spent on agriculture at the same level for the duration of this Parliament until 2022. That breached and went beyond a Treasury spending review period, but the Conservative party took the decision that it was right and proper to prejudge the spending review process so that we could give clarity and certainty to farmers.

The challenge, as I understand it, is that the scheme is currently funded in a roundabout way by our sending money to Brussels and then getting it back. The concern that some farmers will have is whether the Government will be willing to support the scheme. My view is that the approximately £3 billion that we currently spend every year on agriculture and the farmed environment is relatively modest in the context of other areas of Government spending. Some Departments—perhaps including a Department that my hon. Friend the Member for Ludlow is familiar with—regularly accidentally overshoot their national budget. Given what it delivers for the farmed environment that covers 70% of our land, for habitats, for water and air quality, and for our important environmental objectives, £3 billion is a fairly modest sum.

As the policy returns home and we take back control, there will be a responsibility on Parliament—and on political parties in their manifestos—to demonstrate their commitment to our farmed environment and wildlife. We know that wildlife organisations have huge memberships: the RSPB and the Wildlife Trust each have between 1.7 million and 2 million members. We know that the British public are passionate about their countryside, wildlife and environment and want us to give them due priority and support.

We have therefore not only committed to keeping the cash total the same until 2022 but made a manifesto commitment to implement and fund a new environmental land management scheme after that. We have not described the total quantum of funding after 2022, but there is an absolute commitment for there to be a funded policy. We have also made it clear that agreements entered into by the end of 2022 under the existing pillar 2 schemes—some of which will run for a decade—will all be funded for the duration of their terms. I believe that we have done a lot in the area already.

As a former Minister, my hon. Friend the Member for Ludlow knows that in the long term these matters are ultimately dealt with through the spending review process. A spending review process is under way, and we expect it to conclude next year. By their very nature, spending reviews are multi-annual; they tend to set a financial envelope within a period such as five years. Departments also have other processes, such as single departmental plans and Supply estimates applied at departmental level, so that we have some continuity and multi-annual understanding in our approach to funding, rather than a stop-go process from year to year.

Finally, our new environmental land management scheme is predominantly designed around multi-annual agreements. There will not simply be one-off yearly payments; we envisage farmers entering into an agreement for three, five or possibly 10 years. It is implicit in the design that we have outlined for the scheme that a multi-annual understanding of funding will be needed.

I hope that I have been able to reassure my hon. Friend that I share his view that this matter is important and that I view the current spending on agriculture and the farmed environment as a relatively modest sum of money. We could deploy it far more effectively to achieve far more, but the spending review process is the right place to identify funding post 2022. I am sure that he and other colleagues will be making representations to the Chancellor and the Treasury on this matter.

[Mr Dunne]

I have heard what the Minister said. I indicated that this was a probing amendment. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 33 ordered to stand part of the Bill.

Clause 34

Extent

[George Eustice]

I beg to move amendment 42, in clause 34, page 25, line 15, at end insert—

‘( ) Part (Red Meat Levy) extends to England and Wales and Scotland only.”

The amendment relates to NC4 which is expected to form a Part of its own (under the heading “Red Meat Levy”) rather than being inserted in an existing Part of the Bill. The amendment provides for the new Part to form part of the law of England and Wales and Scotland only, because nothing in it relates to Northern Ireland.

Agriculture Bill (Ninth sitting)

Debate between Philip Dunne and George Eustice

Tuesday 13th November 2018 Public Bill Committees

[George Eustice]

Our plan is to leave the European Union, which means leaving the common agricultural policy and LEADER, but also putting in place superior schemes that we will design nationally. That is what we intend to do.

[Mr Philip Dunne (Ludlow) (Con)]

If I can take the Minister back to his comments about the duration of existing schemes, perhaps he can take this opportunity to inform the Committee that he will have the powers to continue to pay under the existing higher-level, entry-level and countryside stewardship schemes, which in many cases run for up to 10 years. As I understand it, we had commitments from the Treasury that that amount of money would continue to be made available. Will he confirm that he will have the power to ensure that those existing agreements will be honoured?

[George Eustice]

That is a very important point. I can absolutely confirm that existing schemes will be honoured for the lifetime of those projects. I know that we will probably come to this when we consider later amendments, but the grant agreements between the Government and individuals will be honoured even after we leave the European Union. The Bill, together with the European Union (Withdrawal) Act 2018, gives us the power to bring across retained EU law and to continue to make payments under it.

Agriculture Bill (Tenth sitting)

Debate between Philip Dunne and George Eustice

Committee Debate: 10th sitting: House of Commons
Tuesday 13th November 2018 Public Bill Committees

[George Eustice]

The issue in all those circumstances is less about the customs union and more about border inspection posts. That is why we have outlined in our approach a commitment to a common rulebook on those areas that require a border inspection, so as to reduce or even eliminate the need for border checks, and then an agreement on equivalence in other areas of legislation. So the border issue is less about customs.

Let me give another example. Scotch whisky is currently our most successful export, and yet it is always sold as a bonded product in an individual national market, because you have different alcohol duties in national markets, even within a single market. We already have examples of some of our most successful exporting sectors having no problem at all dealing with variable tax rates within a market.

[Mr Philip Dunne (Ludlow) (Con)]

Is the Minister able to confirm what I learned last week? Scotch whisky sales to China amount to £35 million, but pork exports to China, which were opened up by this Government in 2016, I believe, amounted to twice that last year—£70 million in one year.

[George Eustice]

My hon. Friend is absolutely correct. In the agri-food sector, as in most other sectors, our trade with the rest of the world is growing far faster than our trade with the European Union.

Agriculture Bill (Seventh sitting)

Debate between Philip Dunne and George Eustice

Thursday 1st November 2018 Public Bill Committees

[George Eustice]

No, this is a power for England only, and it will be for each of the devolved Administrations to decide how they want to design their enforcement and management process.

[Mr Philip Dunne (Ludlow) (Con)]

I thank my hon. Friend for the clarity with which he has laid out for the Committee the Government’s intent regarding the implementation of the new scheme through accrediting bodies, and that is extremely helpful for the Committee to understand. While I recognise that this will be a new scheme with much more streamlined implementation and systems, we have significant problems with the existing countryside stewardship and environmental stewardship schemes administered by the Rural Payments Agency. If we are to persuade farmers to enter into new schemes, they must have confidence that the current schemes, where we have outstanding disputes and a lack of full payments being made under many of them, will be ironed out. If they are not, farmers will be increasingly sceptical about the prospects of a new scheme being introduced under these powers.

I am straying slightly beyond the purpose of the amendment, but I urge my hon. Friend to encourage the Rural Payments Agency to get existing schemes fully paid up. As at the middle of October, DEFRA’s statistics show that 751 countryside stewardship agreement holders, or 15%, have not been paid their final 2017 payment, while 8,116 environmental stewardship agreement holders, or 33%, have yet to receive their final payment. Please could he help to get a welly on?

[George Eustice]

I am grateful to my hon. Friend for that intervention. I intend to address those issues in more detail when we get to part 2, because clause 11, in particular, gives us the power to modify the existing EU schemes. As I pointed out earlier, the difficulty that both the RPA and Natural England have with these schemes is the dysfunctional nature of the enforcement regime designed by the EU that sits behind them. We have an opportunity to clean that up once we leave the EU.

Agriculture Bill (Fifth sitting)

Debate between Philip Dunne and George Eustice

Tuesday 30th October 2018 Public Bill Committees

[George Eustice]

I disagree with my hon. Friend on this point because, as I said, I was not simply citing the 1947 Act. I also cited the Science and Technology Act 1965, which predated our membership of the EU. Even more recently, the Natural Environment and Rural Communities Act 2006 used “may”, and things have not changed much since then.

[Mr Philip Dunne (Ludlow) (Con)]

My hon. Friend has given the Committee a history lesson on different Governments introducing different powers in different scenarios. To help the Committee, will he remind us whether there is any unifying theme in those three Acts? Which party, for example, was in government on each of those occasions?

[George Eustice]

I think, if memory serves, a Labour Government were in power in each of those three examples. That point is well made. We have to understand the sentiment that lies behind the concern for duties on Government rather than powers for Government to exercise, as is traditional in our constitution. A lot of this stems from the fact that we are leaving the European Union—from a sentiment that says, “Whatever will we do when we have not got the EU to tell us what to do, to impose regulations on us, to launch infraction proceedings against us and to send in auditors to complain about the width of our hedges and gateways or about how we record payments?”

The answer is that as we leave the European Union, we should, as a country, embrace self-government—as we used to, and as we did in the 1947 Act. We should have more confidence in our ability to translate powers in an Act into actions and commitment for Government.

Agriculture Bill (Sixth sitting)

Debate between Philip Dunne and George Eustice

Tuesday 30th October 2018 Public Bill Committees

[George Eustice]

rose—

[Mr Dunne]

May I help the Minister on that point?

[George Eustice]

I think it is probably best if I answer one intervention before I take another.

We are in the middle of a huge decision to leave the European Union. An enormous amount of work is needed under the withdrawal Act to ensure that we have a functioning statute book on year one; we all recognise that, and it will necessarily take priority in the months ahead. However, I reassure the hon. Member for Stroud that all the EU regulations that bind us on this issue will still be in force in UK law when we leave the EU at the end of March. That will be unaffected by whether a Bill that recognises animal sentience has been introduced, because none of the regulations that we are bringing across are contingent on the overarching principle of animal sentience.

[Mr Dunne]

I have the distinct privilege of serving on the European Statutory Instruments Committee. The Leader of the House has reassured us that the volume of work for us in determining whether the forthcoming statutory instruments should be laid under the negative or the affirmative procedure will be very similar to that of scrutinising the routine number of statutory instruments that the House considers year on year. The forthcoming SIs should not give rise to the kind of concerns that the hon. Member for Stroud has voiced.

[George Eustice]

As a member of that Committee, my hon. Friend has to digest those points, so he probably has a clearer idea of the work that will be involved, but we recognise that it is a big exercise.

The hon. Member for Darlington raised an important point. I can reassure her that the Government are committed to publishing legislation that will recognise animal sentience. We do not believe, however, that it is right to bring that into the Bill in the way that she has by linking it only to the narrow issue of how payments are made, when we are talking about purposes that inevitably recognise animal sentience, because that is why we are incentivising farmers to adopt high standards of animal welfare.

Amendment 71, tabled by the hon. Member for Bristol East, also seeks to establish an additional rule that says broadly that financial assistance cannot be given unless it is over and above the regulatory baseline. I understand her point, and it is a legitimate question to ask, but it is wrong to try to prescribe it in that sort of amendment, for reasons that I will explain.

As a country, we have done something new in including animal welfare as a public good. I have been clear that I wanted to do that for the last couple of years. I have worked closely with the RSPCA, Compassion in World Farming, Farmwell and other organisations. We are trying something new. Just last week, I met Peter Stevenson from Compassion in World Farming.

We are considering several things in the design of a future animal welfare scheme. One of those is the possibility that we could financially reward farmers and incentivise them to join some kind of United Kingdom accreditation service-accredited higher animal welfare scheme—perhaps the RSPCA one or others that may form. We may also choose to support farmers to invest in more modern housing that is better for animal welfare. In the pig sector, there are some issues with outdated housing that does not lend itself to providing for modern welfare needs such as enriched environments and straw in barns. We may also have a third category of payment for the adoption of particular approaches to husbandry, such as lower levels of stocking density, systems that are more free range or even pasture-based systems.

Finally, we are interested in the potential for payment by results. Farmwell has done some work on that. The hon. Member for Bristol East mentioned Compassion in World Farming and its view about payments for curly tails. If pigs go to slaughter with intact curly tails that have not been damaged, that is a good indicator that they have had a higher-welfare existence. Likewise, Farmwell has developed a feather-cover index for a depopulated flock of laying hens, which is a good indicator as to how well people have approached farm husbandry. In a free-range system, there can be good and poor farm husbandry.

It is a complex area. If there is a mixture of payment for capital items to renew housing, which may have higher welfare outcomes, payment for joining accreditation schemes and, potentially, payment by results, it is not always obvious how that would be benchmarked against a regulatory baseline, which by definition does not cover everything.

If the hon. Lady is concerned about money being spent in that area in a way that simply pays farmers for what they are already doing to comply with the law, I guarantee that there will be no shortage of push-back and pressure from within the internal machinery of Government—the civil service, the Treasury, the Cabinet Office and other Departments—to ensure that money is spent only to get additionality. We will not have the problem that she perceives, which is that we would spend money on things that are already a requirement by law, but if we were to accept her amendment, we might have a different problem, which is that we would place barriers in the way of policy innovation. For that reason, I hope she will not press amendment 71.

Oral Answers to Questions

Debate between Philip Dunne and George Eustice

Monday 14th January 2013 Commons Chamber

[Mr Dunne]

As the hon. Gentleman will appreciate, some larger procurements within the MOD cannot, by definition, be directed towards SMEs—the contract size is such that if it were awarded, the company would cease to be an SME. That said, the White Paper published in February last year made a specific pledge towards open procurement and to encourage the purchase of matériel through competitive process. That is the best way to maintain a fit industrial base in this country that is capable of exporting and winning orders through competition. Alongside that was a commitment to increase the proportion of goods purchased from SMEs.

[George Eustice (Camborne and Redruth) (Con)]

5. What recent progress he has made on improving the interoperability of UK and French expeditionary forces.