Draft European Structural and Investment Funds Common Provisions (Amendment) (EU Exit) Regulations 2019 Draft European Structural and Investment Funds Common Provisions Rules Etc. (Amendment etc.) (EU Exit) Regulations 2019

Robert Goodwill Excerpts

Wednesday 20th March 2019 General Committees

[The Minister for Agriculture, Fisheries and Food (Mr Robert Goodwill)]

I beg to move,

That the Committee has considered the draft European Structural and Investment Funds Common Provisions (Amendment) (EU Exit) Regulations 2019.

[The Chair]

With this it will be convenient to consider the draft European Structural and Investment Funds Common Provisions Rules etc. (Amendment etc.) (EU Exit) Regulations 2019.

[Mr Goodwill]

Thank you, Mr Owen. I welcome everybody, in particular the former agriculture Minister, the hon. Member for Poplar and Limehouse, and the former Secretary of State, my right hon. Friend the Member for North Shropshire. What a panoply of expertise we have in the room.

As a farmer, and given the family business participation in an agri-environment scheme, I should mention my entry in the Register of Members’ Financial Interests. The matter in the two instruments is closely interrelated and I will speak to both together.

The instruments amend retained EU law and domestic legislation to ensure that rural development payments and maritime and fisheries payments can still be made after exit day. Those amendments will maintain the effectiveness and continuity of EU and domestic legislation that would otherwise be deficient following our exit.

The changes are necessary to enable rural development programmes, partially funded by the European agricultural fund for rural development and the maritime and fisheries operational programme, and partially funded by the European maritime and fisheries fund, to continue operating effectively in the United Kingdom following exit, until their closure after the end of the 2014 to 2020 programming period.

There will be an opportunity to consider the scheme-specific regulations for the European agricultural fund for rural development tomorrow, and for the European maritime and fisheries fund during the week commencing 25 March, because they are made operable in the EU exit regulations for the common fisheries policy.

There are currently four rural development programmes operating in the UK, one in each Administration, providing funding for rural businesses, farmers, land managers and applicants living in a rural community with the intention of growing the rural economy, increasing productivity and improving the environment.

The projects funded include water environment grants, the English woodland grant scheme and the growth programme, which supports rural business development, food processing, tourism and broadband. The maritime and fisheries programme is UK-wide and promotes growth in the sector by providing funding for sustainable fisheries, marketing and processing and sustainable aquaculture, among other things.

Examples of projects include health and safety initiative training schemes delivered through Seafish, individual pots—creels, north of the border—and net replacement schemes, as well as support in ports and harbours. The EMFF also supports innovative projects that aim to promote partnerships between scientists and fishermen.

The European agricultural fund for rural development supports the delivery of rural development in the UK and is worth £430 million per year over the programming period. The European maritime and fisheries fund supports the implementation of the common fisheries policy and promotion of growth in the sector. It is worth £32 million per year. The UK Government have guaranteed that any projects funded from the 2014 to 2020 allocations from those funds will receive their full financial allocation and will continue to receive funding over the project’s lifetime. That repeats the reassurances I gave during a similar Committee yesterday.

The changes made by the instruments ensure that payments can continue to be made to beneficiaries, including domestic funding in place of funding from the EU, providing certainty to individuals and businesses that currently receive rural development and maritime and fisheries funding, or that are considering applying for funding during the current 2014 to 2020 programming period.

The draft European Structural and Investment Funds Common Provisions (Amendment) (EU Exit) Regulations 2019 amend the EU regulation that sets out the shared framework for all of the European structural and investment funds but only as far as it applies to rural development and maritime and fisheries.

The draft European Structural and Investment Funds Common Provisions and Common Provision Rules etc. (Amendment etc.) (EU Exit) Regulations 2019 amend the supplementary and implementing rules for European structural and investment funds for rural development and maritime and fisheries. I emphasise to hon. Members that these instruments ensure that those funds continue to operate effectively when we leave. The instruments do not introduce new policy; they preserve the current regime for supporting rural businesses, environmental land management and sustainable fisheries, among other things.

The amendments include omitting references to the European Commission and member states, which will no longer be relevant as a result of the UK leaving the European Union, and replacing them with “the relevant authority” as appropriate. The instruments also amend references to European Union law throughout, so that the relevant EU regulations continue to operate effectively as part of our national law. Provisions that are deficient because of exit and where the relevant actions have already taken place have also been omitted, such as provisions relating to pre-financing, which was paid out when the programmes were initially set up.

One purpose of those modifications is to ensure continuity and clarity as to 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 that context, “relevant authority” means the current managing authority of the maritime and fisheries operational programme; the Marine Management Organisation; 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, at the moment at least, the Department for Agriculture, Environment and Rural Affairs in relation to the rural development programme for Northern Ireland.

As hon. Members are aware, agriculture and fisheries are devolved policy areas and are of special importance to all parts of the UK. We have worked closely with the devolved Administrations to produce these instruments. Those Administrations place great importance on them, and have given their full consent. I repeat that these instruments are required for the continued operation of the rural development programmes and the maritime and fisheries programme. Without them, there would be no legal powers to make payments to fulfil the promise that those important programmes will continue. I therefore commend the instruments to the Committee.

--- Later in debate ---

[Mr Goodwill]

It gives me great pleasure to respond to constructive questions that we all need reassurance about. Fundamentally, the two measures are an insurance policy in the event of a no-deal exit from the EU. Members have talked about the difficulties of a no-deal situation, but the answer is simple: vote for the deal, as I have done twice already. If we can get the deal over the line, as Members on both sides of the House have already voted to do, we can get into the implementation period and these measures will not be necessary. The people of this country are looking at Parliament aghast and wondering why we cannot implement the decision that they made in that historic referendum. I suspect that Members of Parliament, of whatever party, who do not deliver on that, however they justify casting their vote, will not be thanked when it comes to the next time their constituents visit the ballot box.

The instruments ensure that those rural development programmes that are partially funded by the European agricultural fund for rural development, and the maritime and fisheries operational programme, which is partially funded by the European maritime and fisheries fund, continue operating effectively in the United Kingdom following the EU exit. The rural development fund is worth some £430 million a year and the maritime and fisheries fund is worth £32 million a year. The Government have guaranteed that any projects funded from the 2014 to 2020 allocations will be funded for their full lifetime, and I hope that reassures the Committee.

The instruments provide the legal basis to continue making payments to agreement holders, providing certainty for farmers, land managers and fishers, and preserving the current regime for supporting rural businesses, environmental land management and sustainable fisheries, among other things. The hon. Member for Plymouth, Sutton and Devonport raised the progress of the Agriculture Bill and the Fisheries Bills through Parliament. I repeat that I am keen to make progress, but there is, of course, a lot of other business in the House that needs to be cleared.

[Thangam Debbonaire (Bristol West) (Lab)]

With the shadow Minister’s permission, as a Whip I wish to protest. The Minister says there is a lot of business in the House, but we have missing Bills that, if we were to leave the EU next Friday, would have to have been passed before then. The Agriculture Bill and the Fisheries Bill were not only raised in these SIs, but they were described by the Government and by those in the leave movement as the big new dawn for fisheries and agriculture. Where are they?

[The Chair]

Order. I ask the Minister to just stick to the statutory instruments.

[Mr Goodwill]

Thank you, Mr Owen. Your constraints are welcome, but I will briefly say that the one important piece of business that we need to get over the line in this House is the withdrawal agreement. That is why many other measures are on ice and unable to make progress.

The hon. Member for Plymouth, Sutton and Devonport is absolutely right: there is a jigsaw of statutory instruments, and these are two important pieces that we need to put into place. He asked whether there will be gremlins, and whether mistakes will have been made. I can honestly state that that is not impossible, and if we spot gremlins and mistakes they need to be fixed as soon as possible. Yesterday, I said that we spotted that the European Commission was increasing the de minimis payment level for fishing communities, and we made that correction before the matter came to Committee.[Official Report, 29 March 2019, Vol. 657, c. 6MC.]

The hon. Gentleman talked about consultation. There is no statutory requirement to consult, because no changes are being made to the operation of the schemes. However, we carried out stakeholder engagement separately for the rural development, and maritime and fisheries elements of the SI, and I can go into that in some detail if he wishes.

That engagement targeted stakeholders on the approach of the broad set of common fisheries policy EU exit statutory instruments, which included those related to the European maritime and fisheries fund. It included meetings with the DEFRA-led external advisory group, and other separate meetings with the fishing industry and non-governmental organisations, involving key stakeholders from the fisheries sector, the food industry, and environmental non-governmental bodies.

Additionally, as the hon. Gentleman said, a 10-week consultation was conducted through the fisheries White Paper, which described future fisheries policy as well as the legislative approach taken in these instruments. Stakeholders were broadly supportive of the approach outlined in the White Paper, and did not raise concerns about the way in which funds are being delivered, which might have had a bearing on these two provisions.

Some of the stakeholders who were present in those meetings and engaged with the White Paper had an interest that went wider than England. For example, the Scottish Fishermen’s Federation is very keen to make progress on Brexit, unlike the Scottish National party, and NGOs. DEFRA was also in contact with the devolved Administrations, which confirmed that they are engaging with their own stakeholders about these statutory instruments.

In terms of rural development, on 25 September 2018 DEFRA met the Rural Payments Agency’s industry partnership group to update farming and land management stakeholders on the Government’s plans for EU exit. At that meeting, stakeholders were informed of the plans to make retained EU CAP legislation, and existing domestic CAP regulations, fully operable at the point of EU exit. That will enable DEFRA and the devolved Administrations to continue to deliver ongoing CAP pillar 1 and pillar 2 commitments to the agriculture sector in 2019 and beyond, in the event of a non-negotiated EU exit.

Stakeholders present at that meeting included the Tenant Farmers Association, the Country Land and Business Association, the Farming Community Network, the Institute of Agricultural Secretaries and Administrators, the British Institute of Agricultural Consultants, and the National Farmers Union. A subsequent meeting was held on 26 November 2018 between DEFRA and the Rural Payments Agency to update stakeholders further on legislative progress in preparing for EU exit.

The Welsh Government did not undertake a formal consultation on the statutory instruments, which officials considered to be technical in nature. However, stakeholders in Wales, including farming industry representatives, were invited to a workshop to learn about the approach, and they have been kept informed of progress by the Cabinet Secretary for Energy, Planning and Rural Affairs, and officials at the established EU exit stakeholder roundtable and legislation sub-groups. Chapter 8 of the Welsh Government document for the “Brexit and our land” consultation proposed an orderly exit from the rural development programme. That consultation received more than 12,000 responses, which are still being considered by Welsh Ministers.

The Scottish Government published a consultation in June 2018 entitled “Stability and simplicity”, which invited comments on Scottish Government proposals about dealing with the implications of leaving the common agricultural policy. It explained that the first stage would be to retain EU law in domestic legislation. The consultation closed on 15 August 2018, with 137 responses received. Overall, responders were broadly content for support to continue it in its current form to ensure a period of stability for the rural economy. The Scottish Government have been and continue to be in regular contact with stakeholders in Scotland regarding the implications of leaving the EU, and the effect of the statutory instruments is consistent with the proposal set out in that consultation. Last week, I spoke to Fergus Ewing on the phone, and I look forward to my first face-to-face meeting with him.

Let me turn to some of the other points raised by hon. Members. I was asked about continuity and the responsibilities of the Department for Business, Energy and Industrial Strategy, which has tabled a separate SI that addresses the remaining funds. I was asked who takes responsibility for the roles currently held by the Commission. As I said in my opening remarks, the relevant authorities will be the Secretary of State in England, Scottish Ministers in Scotland, Welsh Ministers in Wales, and the Department of Agriculture, Environment and Rural Affairs in Northern Ireland. The relevant authority for fisheries is the Secretary of State in England, with the role delivered by the Marine Management Organisation.

There was some talk about how we will fund taking over these roles, but that exposes a degree of misunderstanding because the European Commission does not deliver those projects in the UK, and they are delivered by the UK Government on behalf of the Commission. For example, the environmental schemes were delivered by Natural England and are now delivered by the Rural Payments Agency. There will be no change in the way that happens, and it is similar for many of the fishing schemes.

[Luke Pollard]

My point was about not the implementation, but the scrutiny and overview. The Commission provides an overview function, which is being removed by this SI. What resources are being given for the overview functions contained in the SI, rather than the implementation?

[Mr Goodwill]

Farmers and fishermen will understand that scrutiny and checks are carried out not by the European Commission but by my Department, in order to ensure that rules are complied with. That will not change, but we will still have our homework checked nationally by the National Audit Office, for example, which will take on that role, and the MMO and DEFRA will publish a quarterly report on fisheries funding.

I was asked whether there will be any cuts to agricultural funding and what guarantees the Government can give. The EU funds will be replaced—£137.4 million for the remainder of the programme period of the EMFF and between £400 million and £450 million a year from the EAFRD. Those figures depend on the euro-pound exchange rate. The EMFF figure is higher than the figure in the explanatory memorandum. It is a more accurate figure, based on the most recent returns from each of the intermediate bodies. The Treasury has guaranteed funding to cover all European structural and investment fund projects entered into before the end of 2020 for their full lifetime, and I hope the hon. Gentleman takes that reassurance on board.

The Government have pledged to continue to commit cash totalling the funds for farm support until the end of this Parliament, and that includes all funding provided for farm support under the EAFRD. On 10 December 2018, the Government committed to provide £37.2 million of extra funding for the UK seafood sector for projects approved during 2019 and 2020, so as to boost the industry as we become an independent coastal state.

The hon. Gentleman asked whether fisheries will be better or worse off. There will be four schemes after 2020, when the EMFF ends. Those will be comparable to the EMFF, but designed for the UK fishing industry, alongside the devolved Administrations, and that will be detailed in the next spending review. The fisheries White Paper, which was published in 2018, asked the industry for its opinion on future funding and how it wants the industry to be reformed. Our approach was always going to be long term, and it will not change in several months.

I hope I have answered hon. Members’ questions. If they have any specific questions about the detailed financial information and funding—I would not want to mislead the Committee by winging it—I would be more than happy to give them that information. Indeed, it would be great to see the Labour party’s long-term plans for funding agriculture and fisheries. There seems to be a bit of a vacuum, which might need funding before farmers consider how they will cast their vote at the next election.

These statutory instruments are required for the continued operation of rural development programmes and the maritime and fisheries programme, and they will ensure that farmers, land managers and fishers are able to be paid after we leave the EU.

Question put and agreed to.

Resolved,

That the Committee has considered the draft European Structural and Investment Funds Common Provisions (Amendment) (EU Exit) Regulations 2019.

Draft European Structural and Investment Funds Common Provisions Rules etc. (Amendment etc.) (EU Exit) Regulations 2019

Resolved,

That the Committee has considered the draft European Structural and Investment Funds Common Provisions Rules etc. (Amendment etc.) (EU Exit) Regulations 2019.—(Mr Goodwill.)