Agriculture Bill (Eighth sitting)

Debate between Philip Dunne and Robert Goodwill

Thursday 1st November 2018 Public Bill Committees

[Mr Goodwill]

That is precisely the point I was coming to. The European Union instructed OLAF, its own anti-fraud body, to look at that sort of thing. Even this year, in Slovakia, journalist Ján Kuciak was murdered along with his fiancée after he exposed widespread fraud involving the Italian mafia, Slovak business and politicians in Slovakia. That resulted in the fall of that Government, so widespread was that fraud. We have seen similar problems in Bulgaria, where, rather surprisingly, a farmer wanting to get agricultural support must first register to pay health and pension insurance, so the very smallest farmers, who we would want to help in this country, do not get help in that country.

If we have that type of fraud in this country, even though there has been no evidence and no cases of widespread manipulation and fraud in the system, there is already criminal and environmental law under which farmers could be prosecuted. The worry among many farmers—I hope the Minister will reassure us and perhaps even clarify this on Report—is that this could be an opportunity to create lots of new criminal offences and punitive financial penalties for farmers who are trying their best. The Minister mentioned the farmer who accidently ploughed an extra 20 cm on his headland margin. Indeed, when I spoke to the Department for Environment, Food and Rural Affairs, I was told that if my daughter rode her pony on the field margin strip, that would be against the rules and, therefore, that we could have been penalised.

We have no similar cases of widespread fraud in the UK. This type of offence is already covered by existing anti-fraud or environmental legislation. There is some worry that trivial offences or mistakes could be penalised and that farmers could be unnecessarily criminalised. I hope that the Minister will give us some reassurance that that is not the intention of clause 3(2)(h), and that he will give further clarification to ensure that some future Government could not use the clause in a way that was not intended.

[Mr Philip Dunne (Ludlow) (Con)]

I will not detain the Committee for long. I endorse the comments of my right hon. Friend the Member for Scarborough and Whitby. I note that the hon. Member for Stroud does not intend to press the amendment at this stage, but it is important to reflect on the spirit of what my hon. Friend the Minister said in this morning’s debate when he outlined the Government’s intent in devising the new schemes: they are intended to be less onerous on the recipients of financial support than the schemes that they replace under the CAP.

In the same spirit, I hope my hon. Friend the Minister will be able to enlighten the Committee that this power to create offences is designed primarily not to create a mass of further offences that would allow people to be criminalised if they made inadvertent errors in the receipt of their financial assistance, but to—as I understand it—replicate existing Government powers. Anything he can do to reassure us that there will not be an extension of the kind we have described will be very helpful.

Agriculture Bill (Sixth sitting)

Debate between Philip Dunne and Robert Goodwill

Tuesday 30th October 2018 Public Bill Committees

[Mr Dunne]

It is a pleasure to serve under your chairmanship, Mr Wilson, and to follow the hon. Member for Stroud, whose amendment bears a striking resemblance to mine. The prime difference between my amendment 88 and his amendment 52 is the order of the subsections, and I do not think that is substantive. As he just described, my amendment came from the wording in schedule 3 relating to Wales. My hon. Friend the Member for North Dorset, who inexplicably left the room just before I rose to make my contribution, asked me to assure the Committee that he supports the amendments.

One reason for tabling the amendment was to pick up on some of the comments made in the evidence sessions, in particular from the representative of the farming industry in Scotland. They welcomed as close an alignment as possible of the regimes that will stem from the Bill, and once we leave the CAP regime, to try to minimise difference among the four schemes. I am conscious that we do not have any of the regulations that will implement the schemes but, in terms of the regulatory environment and the legislation, the more commonality we have between the four nations, the better for farmers and the industry.

I must remind the Committee of my entry in the Register of Members’ Financial Interests; I am a farmer who will be affected by the regime, in common with other farmers. The purpose of the amendment is to probe the Government’s intent in relation to agricultural support. I agreed with much of what the hon. Member for Stroud said. We are designing a scheme that replaces the legislative environment of the 1947 Act, which put in place an initial set of agricultural support. We are also replacing the CAP system that we have been operating under since the 1970s. The legislation is designed to set in place agricultural support for the future. Yet the challenge to us, as members of the Committee, is that the purposes as set out under clause 1, thus far, are not agriculture-heavy; they are agriculture-lite; or barely existent.

There is a challenge, which I think we will see when the Select Committee on Environment, Food and Rural Affairs comments on the Bill. It is keen to see specific references to agriculture, horticulture and forestry in the purposes of the Bill. That was what lay at the heart of my amendment 88, and in particular proposed new subsection 2(d) of clause 1, which refers to

“supporting the production of such part of the nation’s food and other agricultural produce as it is desirable to produce in the United Kingdom.”

When I intervened on the Secretary of State on Second Reading, I asked him what his view was about food security being an important purpose of the Bill. As a former journalist with an ability to encapsulate pithily what he means in as few words as possible, he replied with four words: “Food security is vital.” That is why I felt that it was important to probe where the Government stand on the issue, because that objective is not as apparent in the drafting that has emerged in the Bill as the Secretary of State was on Second Reading. Amendment 88 would help to make that objective explicit.

The Secretary of State went on to describe how he sees food security providing the opportunity for UK-based farmers to compete internationally by way of exports. Of course, the UK competes internationally in global food and food product markets. At the moment, we produce about 60% of the food we consume in this country, so we are importing 40%—not quite as much as we are producing. There is clearly a risk that once we move to more internationally competitive markets, we will find imports coming in to a greater degree. We are now setting up a legislative programme that will allow for unforeseeable events in the future, and future Secretaries of State may therefore find it advantageous to have a power on the face of the Bill that allows future Governments to design or redesign a scheme in the event of market conditions changing.

We will talk about exceptional market conditions later in our consideration of the Bill, and I welcome the clauses that deal with that topic. They represent a very good idea. However, when responding to the amendments, I urge the Minister to consider whether it is desirable for Secretaries of State to have that power, which may—rather than must—be used. At some point in the future, in the event that there are challenges to local production, that power may be called upon. Food security is not just about how much food we grow in this country; it is about how readily accessible food is to our populations in the event of difficulty. We have already seen from previous incidents of industrial disturbance and severe weather that, on occasion, distributing food to the population is not as easy as it is during normal times. Having the ability to grow as much food as we can in this country will be of benefit for the future.

[Mr Goodwill]

Is it not the case that the amendment is absolutely in line with the 1975 Government White Paper entitled “Food from Our Own Resources”?

[Mr Dunne]

I am grateful to my right hon. Friend for his encyclopaedic knowledge of previous agriculture Bills.

I move on to some brief remarks about amendment 89 and the consequential amendment 90, which would amend schedule 3, “Provision relating to Wales”. Those amendments seek to make it explicit that agricultural support should be payable to those who are responsible for managing the land. Under the previous system, that support has been paid to farmers. We are trying to devise a system of public goods for farmers to do things of environmental benefit that will replace income that they would otherwise derive from growing food, food produce or horticultural forestry products on the land. That aims to provide farmers with some incentive to generate environmental benefits. It is the farmers—all 83,500 of them—who currently receive direct payments through the RPA basic payment scheme who are most deserving of the support that will be made available in the future, rather than other worthy, worthwhile groups who will be able to advise them and generate benefit for the environment. But they are the people who are responsible for delivering most of that public good; that is, the people who manage the land.

That was explained by the Secretary of State in a letter that he sent to MPs when the Bill was published last month. He said:

“For too long our farmers have been held back by the stifling rules and often perverse incentives of the CAP… Our new Agriculture Bill marks a decisive shift. It will reward farmers properly at last for the work they do to enhance the environment around us. It recognises the value farmers bring as food producers.”

He was very clear that the Bill is designed to provide support to farmers in lieu of what they would otherwise do in managing the land by trying to stimulate a greater public good.

I therefore encourage the Government to respond on whether the Bill seeks future support to be able to make payments to those who deliver public benefit from stewardship of the land, or whether it should go to other bodies that do so only indirectly, and for which there may be benefits through subsequent legislation, such as the environment Bill, which might be a more appropriate place for it.