Agriculture Bill (Thirteenth sitting)

Robert Goodwill Excerpts

Tuesday 20th November 2018 Public Bill Committees

[Dr Drew]

I am minded to support the hon. Lady on this, although we have tabled our own new clause 23. This is at the core of the Bill. Although we are talking about agriculture, we cannot exclude trade from that. We—I mean the great “we”, because no organisation that has commented on the Bill is not of a similar mind—need to know what guarantees there are that the animal welfare, environmental and food-quality standards that British agriculture prides itself on will not be undermined by a race to the bottom, and that we will not take on some mad trade deals to try to dig the UK out of its current dilemma of what it does if it shuts the door on the EU. This is very important.

We have reached a turning point in our debate on the Bill. We hope the Government will get the message, from not just the Opposition but the organisations that have commented on the Bill, many of which will have spoken to the Minister. They want security and the knowledge that there will be no attempt to undermine the standards that have been put in place over generations for British agriculture and the environment. Greener UK, which has been largely supportive of the Government’s approach, sees this as one of the major dividing lines. It wants new clause 23 or new clause 12 in the name of the hon. Member for Edinburgh North and Leith.

We can argue about the definitions—we think that our new clause is slightly more foolproof, but we will listen to the hon. Lady and my hon. Friend the Member for Bristol East, who will hopefully get the opportunity to speak to new clause 14. This issue is absolutely crucial to the way the Bill will be received in not just this country but the wider world. We have to send the wider world the message that this Bill rules out importing cheaper, poor-quality food.

I know there is a degree of disunity in the Government. The Secretary of State for International Trade has been going to all sorts of places, but I challenge him to name one place outside the EU—where he has not been—whose food standards are equal to the UK’s and the EU’s. The reality is that there are not any. Other countries are able to produce cheaper food because they undermine labour standards, sadly mistreat the animals and use all sorts of other methods.

[Mr Robert Goodwill (Scarborough and Whitby) (Con)]

The hon. Gentleman is making some very valid points, but is it not the case that currently, in the EU, we are unable to ban the import of foie gras or veal produced under systems that are illegal in this country? We could improve animal welfare standards by disentangling ourselves from the single market with Europe.

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[Simon Hoare (North Dorset) (Con)]

It is a pleasure to serve under your chairmanship, Mr Wilson. I rise to speak very much in the spirit with which the hon. Member for Bristol East finished her remarks. She is absolutely right to have identified the cross-party interest in and concern about these issues.

Since the British people made the decision to leave the European Union, I have always said during my meetings with the National Farmers Union and farmers in my constituency that, as important as this Bill will be, the most pressing issue is probably the one raised by the hon. Member for Bristol East in relation to the new clauses. The Bill does important work: it is trying to sculpt and scope a framework of support, and triggers for that support, for UK agriculture. We all want that to be a success, we all understand the importance of the sector to our national economy, and we all want to see it flourish. We therefore understand the importance of the Bill.

We also understand entirely, from remarks made by my hon. Friend the Minister, that in many respects this is a skeleton Bill, or a Christmas tree Bill, upon which certain things will hang and from which future policies and initiatives will flow. I think that we have to be incredibly careful. I hope that we will be able to enter into trade agreements, because they will be good for UK plc, but we should not throw the baby out with the bathwater in their pursuit. We should not see a lowering of our standards in certain areas, particularly within the food sector. I have always had a concern that, for some in British politics, the pursuit of the “Brexit dividend”—to give it a handy moniker—could most readily manifest itself in the price of foodstuffs.

On several occasions I have heard my hon. Friend the Member for North East Somerset, as the hon. Lady for Bristol East referenced, talk about the lowering of food prices in the shopping basket, and likewise with shoes and clothing, although I appreciate that they are not part of the Bill. He may very well be right. I always point out that we are spending the lowest percentage of our household income on food than at any time in our history, so it is hard to see how food could become very much cheaper in real terms.

However, my concern is about the next step of the scenario. My concern has always resided on this point: if individual trade deals came back to this House to be voted upon in an affirmative way, whether through a statutory instrument or on the Floor of the House, this issue could be part of the checklist to establish whether one would be minded to support it. However, it looks as if trade agreements will not be subject to a vote in the House, so we would be wise to include in the Bill this precautionary principle—this little check—to provide comfort to consumers, who need as much information as possible. I do not believe in the sort of free market in which any old rubbish is put on the supermarket shelves and then people are allowed to make an informed decision. We have to have some standards so that people can have general confidence in the product they are purchasing, irrespective of the price that happens to have been set. There needs to be some underpinning and some general benchmark of standards.

On the “Brexit dividend”, I have always put it to my colleagues in this way: were trade agreements to be entered into that saw, as part of some spirit of reciprocity, new markets opened to what we might call the sexier sides of our economy—finance, IT, insurance, pharmaceutical and the like—the quid pro quo trade-off will be access to our large and growing consumer market, hungry for food, if the Committee will forgive the pun. We would find ourselves swamped with cheap imports, raised to all sorts of standards. Some may be higher than ours, which would be great. Some may be the same, which would be perfect. I think that we would all be keen to resist anything that was lower, for example in relation to chemical applications or animal welfare issues—I see those as equally important.

However, I have often made the point that those cheap imports would remain cheap only while a robust domestic production market formed a competitive market and challenge. I made that point on Second Reading, as did other colleagues. My fear, my hunch and my prediction would be that, as a result of a swamping of overly cheap imports—priced cheaply because the standards are lower and therefore the costs of production are less—that would see a rapid choking off of our domestic production market, either to the point of being barely recognisable, or to be non-existent.

Either of those scenarios could result in a situation whereby those who had distorted our food pricing market would then ride the crest of a non-competitive wave because domestic production would have diminished to a point at which it really only deals with the niche, farmers’ market type of market, but not large-scale domestic production. Having had two or three years of cheap prices, we would suddenly find prices going in an upward trajectory on a very fast escalator. It would be faster plus, because not only would they want to recoup the money for products sold cheaply then, but they would also want desperately to claw back the under-pricing that they had triggered as importers to our country—or exporters, depending which end of the telescope we care to look through—and regain that lost revenue, because they had deliberately distorted the market in order to choke off domestic competition.

I entirely take the point made by the hon. Member for Bristol East that the bona fides on this issue of my hon. Friend the Minister and my right hon. Friend the Secretary of State are beyond challenge. They have been absolutely and abundantly clear. If I could preserve my right hon. and hon. Friends in some sort of political aspic and presume that they would always be in office—I am not sure whether they would find that an attractive proposition—we could all take a step back and breathe a little more easily. We all know that legislation cannot bind our heirs and successors because it is subject to amendment by future Parliaments, but we should at least be setting some definitive benchmarks now. On something as important as this, it is in the Bill—although not necessarily in the wording of these new clauses—that we need to put down those important markers. Would it not be the most frustrating waste of the Committee’s time to have spent it talking about the importance of a sector and seeking to build a cross-party coalition in its support and furtherance, only to find all our work and good efforts coming to nought as a result of an overly laissez-faire approach to trading issues?

Before my hon. Friend the Member for Milton Keynes South has some sort of apoplectic fit, I assure him that, at this stage—because I am very conscious that our hon. Friend the Minister will need to go back and talk to colleagues—if the amendments are pushed to a vote, I will not support them, because further discussion is needed. I give my hon. Friend the Whip that assurance today, but I am afraid that I cannot give the same cast-iron guarantee on Report unless we see some movement on this.

I do not believe that I am alone. I noticed the sharp inhalation of breath by the hon. Member for Bristol West, in a theatrical, pantomime gesture. I hope that my hon. Friends on the Front Bench know that I have never rebelled—I have never voted against Her Majesty’s Government—and I hope that I do not have to. However, I think that the hon. Member for Bristol East was absolutely right that there is a broad coalition of interest in this on the Floor of the House. Whether Members come from a public health aspect or a fiercely pro-agricultural aspect, or whether they are concerned about better shaping and sculpting the post-Brexit environment, I am not sure.

[Mr Goodwill]

My hon. Friend makes some very valid points. Does he agree that adequate labelling is also part of this? For example, a lot of processed chicken comes in from Thailand and Brazil, but consumers are often not aware because it comes as part of a product. Does he agree that part of the solution to this problem is better labelling, so that people know what they are buying?

[Simon Hoare]

My right hon. Friend is absolutely right. At the appropriate time there needs to be a significant and radical overhaul of the red tractor. There needs to be much clearer labelling and information. However, information itself can be a bit of a blunt instrument. People need to know how to interpret and understand the information put in front of them. I can read a manual on how to wire a plug 17 times but I will still not understand how to do it. However, the information is there. I do not actually know how to rewire a plug. That is why candle consumption in the Hoare household is very high.

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[Jenny Chapman]

I do know how to wire a plug; that is the first thing I want to say. I add my voice to this because we need to hammer home to the Minister the level and extent of the concern across the parties on this issue. I do not know whether my hon. Friend the Member for Bristol East wishes to press the clause to a vote today or whether there might be opportunities to express the view of parliamentarians in future stages of the Bill, but the Government need to take the hint provided by the excellent speech by the hon. Member for North Dorset, which put the point across incredibly well. It might be a good idea for the Government to come back with their own proposition at a later stage, perhaps in the other place, and propose something that we can all support.

This matter is of such great concern and importance because it is all happening in the context of the withdrawal agreement that we had sight of last week, which is unclear about the future of these kinds of standards, either in the backstop arrangement or in the political declaration about the future relationship. There is a huge row going on about that outside this Committee, so we do not need to go into it all here, but suffice it to say that the agreement is incredibly vague and non-specific about how the UK’s future standards and regulations on these issues would look. That is something that we are unhappy about anyway, but it is particularly important when we look at the issues that we are considering. The hon. Member for North Dorset put it well when he said that the impact may not be felt straightaway but that the erosion of the industry could be seen over time. We have spent so much time in Committee discussing how to protect, enhance, sustain and grow that industry so it will continue to be the best in the world, and it would be a tragedy to see it diminish because we did not have the foresight to put these safeguards in place.

In a way, I am reminded of what has happened to the high street. In not that long a time, we have seen the withdrawal of the vibrancy of our high streets, and it will be very difficult to get that back. Exactly the same thing could happen to our agricultural industries. As a generation of politicians, we would never be forgiven for that.

Obviously, we import food from the US now, but we do it carefully within a set of rules and we are mindful of the standards of what we import, so everybody knows that they can buy food that has been imported from the US with confidence and that it complies with the standards that we expect in this country. That needs to be the case in the future too. I think there would be widespread public support for that to happen in the Bill, and if it does not, I am not sure where in law that provision would be placed, particularly if we were to leave without a deal. I am pretty confident that we are not going to do that, actually, because I do not think the Government would take us down that catastrophic path, but we are here to deal with things that might happen as well as things that we expect to happen.

[Mr Goodwill]

Surely if the hon. Lady is keen for us to leave with a deal, her party should vote for the deal before us.

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[George Eustice]

There is a very good reason for having the thorough process outlined by the Department for International Trade that I am describing to the hon. Gentleman.

[Mr Goodwill]

There has been much talk about trade deals in terms of what others might send us, but does the Minister not agree that trade is a two-way process? If, as he suggested, the Americans are becoming much more discerning in the quality of the products they buy, there are great opportunities to export products such as Wensleydale cheese or British beef to these new markets.

[George Eustice]

That is a very important point. We are working at the moment to try to get access for British beef to the United States because it is a premium product and their beef tends to be lower grade. There is also a good market for British dairy products, particularly our famous cheeses, in the United States where they largely have a standard cheddar that is not particularly good. There is a market for those. There are offensive opportunities in some of these trade deals, which we should always bear in mind.