Common Agricultural Policy

Roger Williams Excerpts

Tuesday 18th June 2013 Commons Chamber

[Mr Heath]

That depends on how we define repatriation. We have been arguing strongly for increased flexibility at national and regional level for those countries that have devolved Administrations. The obvious examples are the United Kingdom and Belgium, both of which feel strongly about this matter. We need the option to define some of the terms and regulations that will be put in place, so that they match our forms of agriculture. There is already divergence within this country over the application of the CAP. For example, there are still historic payments in Scotland. In my personal view, there will eventually be a need for internal convergence on that issue, but it is for the Scots to decide on the rate of change and on whether that should happen sooner or later. I believe that it is a distorting element at the moment.

The UK Government also argued, however, that we did not want a sudden, bumpy transition that would put the Scottish Government in difficulties while they were trying to achieve their objectives. So, although we want internal convergence, we have asked for as smooth a transition as possible because that will be in the interests of the devolved Administrations. There is already a considerable degree of variation in the way in which the current scheme works. We are trying to ensure that that continues and is enhanced under the new rules.

[Roger Williams (Brecon and Radnorshire) (LD)]

The Minister has put on record his intention to help hill and upland farmers in England. At the moment, there are three rates for the single payment, relating to moorlands, severely disadvantaged areas and lowlands. Would it not be advantageous to upland farmers if we had only moorland and lowland payments?

[Mr Heath]

As always, my hon. Friend is very well informed on these subjects. He is right, and that is something that we will be looking at in relation to the implementation phase.

--- Later in debate ---

[Roger Williams (Brecon and Radnorshire) (LD)]

I draw the attention of Members to my entry in the Register of Members’ Financial Interests.

[Miss McIntosh]

On a point of order, Mr Deputy Speaker. I omitted to refer to my entry in the Register of Members’ Financial Interests.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Is there anybody else while we are on the record? If not, I call Roger Williams.

[Roger Williams]

Thank you, Mr Deputy Speaker. I am glad that my contribution has caused so much interest in the Chamber.

The shadow Minister was rather fierce in his criticism of the Minister. Only yesterday, a Minister from the Department for Environment, Food and Rural Affairs came to the House to make a statement on the common fisheries policy. That was always seen to be intractable, yet the outcome seemed to have the support of the whole Chamber. Indeed, we hope that the CAP negotiations will meet with the same success.

It has been said that little progress has been made in reforming the CAP—the hon. Member for Coventry South (Mr Cunningham), who is no longer in his place, said so at the beginning of the debate—but I must remind everybody that 25 years ago CAP expenditure amounted to 75% of EU funding, whereas it now amounts to just over 40%. In that time, the amount spent by the average UK family on food has decreased from 25% of disposable income to about 15%, although sadly that trend is moving in the opposite direction because of the increases in commodity prices. Back in the 1980s, the CAP depended on market support and intervention through export subsidies and import tariffs, which were really trade-distorting implements and very unfair on developing countries. Things moved on, however, and in 1993 the MacSharry proposals introduced direct payments that were not so trade distorting, and in 2003, the Fischler proposals decoupled support, which was another step forward.

Why do we still need a CAP? It was first introduced to ensure that people working in agriculture and the countryside had incomes comparable to those in more urban and industrial occupations. Sadly, it has been unsuccessful in doing that, and incomes in the countryside are still less than in towns. Many farming businesses in this country would be making no profit at all, if it were not for direct payments.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

How concerned is the hon. Gentleman, therefore, about the drive towards a referendum on the British state’s membership of the EU based on renegotiated terms, including the repatriation of the CAP and convergence funding? How concerned is he about the impact that that would have on the industry in Wales?

[Roger Williams]

I share the hon. Gentleman’s concern. The Farmers Union of Wales has made it clear that is sees EU membership as fundamental to a successful Welsh agricultural sector.

We need resilience in our farming communities and businesses. As has been pointed out, farming businesses across the country have experienced poor conditions in the past two years. The Chairman of the Environment, Food and Rural Affairs Committee pointed out that for two years now the UK has been a net importer of cereals, whereas we used to be a net exporter. We need resilience in our farming businesses, therefore, if they are to survive from one difficult period to another period in which they can rebuild their resources and capital. We will experience great difficulties with food security over the coming years. With the world population now reaching 7 billion and probably reaching 9 billion by 2050, the demand for food will increase, and it is thought that northern Europe, particularly its maritime areas, might be well placed after climate change to maintain its agricultural production. We should be looking to the CAP to ensure that.

I ask the Minister to address a number of issues that have already been raised. The first is co-financing of voluntary modulation. The UK farming community is concerned about voluntary modulation, because it would put it at a competitive disadvantage against other countries that compete with us on food production. Co-financing, if possible, could mitigate some of the problems perceived by British agriculture. Secondly, the greening proposals should be as simple and easy to follow as possible. The last thing we want are complex proposals leading to penalties being applied to individual farmers or DEFRA. I was on the EFRA Committee when the single farm payment was first introduced. The Rural Payments Agency made a terrible mess of delivering those payments and, as a result, a lot of DEFRA money had to be returned to the EU, rather than being spent on supporting our agricultural sector, so simplicity is important. Some large-scale arable and horticultural businesses would be willing to forgo the greening element—30% of the single farm payment—in order to maintain their focus on commercial activity, so what proposals does the Minister have for using those elements not taken up by businesses?

[Several hon. Members]

rose—