Agriculture Bill (Tenth sitting)

Simon Hoare Excerpts

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

[George Eustice]

We should deal with the situation in our market. The test we should apply before acting is whether there is a severe market disturbance that affects our agricultural producers. We should not be worrying about what other countries happen to be doing.

[Simon Hoare (North Dorset) (Con)]

May I explore this point, because the shadow Minister is right that it is incredibly important? If an agricultural commodity was, in effect, being dumped into UK markets—analogous to the steel dumping from China—would that be a severe market disturbance and would it trigger some level of support, on the proviso that it was not possible to do anything about the dumping because a free trade agreement allowed it to take place?

[George Eustice]

In all international trade law, there are provisions on dumping—it is literally referred to as “dumping”—that enable us to restrict imports from other countries where under-priced, under-valued produce was being dumped in our market. That can therefore be dealt with elsewhere.

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[Kerry McCarthy]

That depends on the criteria set. I have heard 120 days mentioned as a possible benchmark.

The problem is not just that the information is not being made available; one of the main reasons I tabled the amendment is that there is quite a lot of misleading marketing that gives consumers the impression that goods are higher welfare when they are not. A pork product from a factory-farmed pig may carry a label that says something like “farm fresh” or “all natural”. Packaging can carry images of green fields or woodlands. I was praising Tesco this morning for its work on food waste and modern slavery, but there was an issue, either earlier this year or last year, where Tesco meat and fresh produce had been labelled with the names of British-sounding farms, such as Boswell Farms beef steaks and Woodside Farms sausages, and it transpired that not only did those farms not exist, but in some cases the produce had been imported. That is certainly misleading the public, and I might use stronger language to describe that behaviour.

[Simon Hoare]

I have concerns about an arbitrary number of days being set. Broadly, farmers bring stock in and out as the weather permits. If there is an arbitrary number of days, it is the target that dictates the welfare, not the requirements of the animal. There is a tendency in the narrative of veganism to focus, perfectly properly, on animal welfare. Would the hon. Lady agree that, in that drive for transparency, many consumers would be very interested to know the health of the soil in which their vegetables were grown and how much insecticide and pesticide was used on them during production?

[Kerry McCarthy]

I have no idea why the hon. Gentleman is bringing vegans into the debate, as they do not eat any of this produce and, therefore, I would imagine, are not particularly concerned with where it comes from. The Environment, Food and Rural Affairs Committee, chaired by one of his hon. Friends who is a dairy farmer, recommended twice in 2018

“that the Government introduce mandatory method of production labelling”

to support the existing market for higher welfare products and to encourage more producers to move into that higher value market.

I met various members of the National Farmers Union in Gloucestershire during the mini recess. Most were higher welfare beef and dairy farmers who struggled to get a decent price and to get recognition of the fact that they put more care into producing their products. They are keen to support this proposal, so the idea that it is some sort of vegan crusade is a bit tedious, to be honest, but also wide of the mark.

[Simon Hoare]

I was not intending to be tedious; perhaps my tedium was unintentional. I was trying to tease out the hon. Lady’s answer, which I presume be “yes”, on whether clear and relevant information about the type of food production is of use to consumers. That was the point I was driving at. I was slightly concerned to hear the hon. Lady say that because vegans do not eat meat, they have no interest in the conditions in which animals are raised. I would have thought that would unite everybody in this country, whether they eat those animals or not.

[Kerry McCarthy]

Of course vegans are interested in that, but they are not the consumers who are trying to decide between one pack of sausages and another—unless they are Linda McCartney vegetarian sausages, for example.

I think that the hon. Gentleman is trying to take this whole thing off on a tangent. During the referendum campaign, the Government blamed the European Union for tying their hands, making them unable to move further on production labelling. The Farm Produce (Labelling Requirements) Bill was introduced by the hon. Member for St Albans (Mrs Main)—I remember it well. Making progress on production labelling was put forward as one of the reasons why we should leave the European Union, and that Bill was supported by a number of Brexit-supporting Tory MPs.

At the beginning of this year, the Secretary of State announced at the Oxford farming conference that the Government were considering extending mandatory labelling, and when that issue was highlighted in the “Health and Harmony” Command Paper, it received very positive feedback. Respondents to the question, “Should government set further standards to ensure greater consistency and understanding of welfare information at the point of purchase?” were overwhelmingly in favour: 72% either said “Yes” or “Yes, as long as it does not present an unreasonable burden to farmers.” As I said, we need to have a discussion about what producers need to do if they are to be deemed higher welfare, pasture fed, and so on. No matter what sort of scheme we have, some hurdle will have to be met, but setting those rules is obviously a matter for the Government.

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[Kerry McCarthy]

No, I do not. I am aware of that move, but I do not think that people are remotely misled. Nobody is going to buy a vegetarian sausage thinking that it has pork in it. It is the same with soya milk and almond milk—everyone knows perfectly well that they have nothing to do with dairy cows. We are underestimating the intelligence of the British consumer if we think that they are going to be misled by things like that.

[Simon Hoare]

Can I share with the hon. Lady my absolute speechlessness when a set—if that is what you call them—of vegetarian sausages arrived on a lunch plate that I had ordered? The menu only said “Glamorgan sausages”; it did not say that they were vegetarian, so one can be misled through the use of the word “sausage.” I think that the French are on to something here.

[Kerry McCarthy]

Perhaps that says more about the hon. Gentleman’s ability to read a menu.

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[Deidre Brock]

Management is certainly an important aspect, but as the air and road miles of shooting enthusiasts increase, so the environmental benefit of the proper management of shooting estates and grouse moors vanishes and can even turn negative.

I would argue that smaller enterprises providing produce for local consumption start from a more environmentally friendly base, and it makes sense to encourage them rather than larger interests. With respect to the Bill and agriculture in general, we in the Scottish National party see farms and land management as vital to rural communities, as well as being primary producers—that is especially true of crofters. The community cohesion function becomes even more important as communities become more remote. Hon. Members from across some areas of England and Wales will of course have examples to offer, but Scotland is a very different place, particularly when one heads into the Highlands, into the far north, or on to the islands, where farming is by no means an easy living and where there is a different culture and calendar to farming, and markedly different outcomes. Scotland is different and requires a different framework in which to operate.

I quote the evidence given by the National Farmers Union Scotland to the Scottish Affairs Committee recently. It said that

“significant elements of the Agriculture Bill are clearly about policy and policy delivery in England, and they would give us significant cause for concern if they were to be applied in Scotland. Quite simply, Scotland’s agricultural landscape is very different from that of England and much of the rest of the United Kingdom. That is why we must have agricultural policy delivered in a devolved capacity. There is clearly a trajectory within DEFRA England’s policy thinking that it wants to phase out direct support payments over a seven-year period and replace them with a public support for public goods approach, and that is clear within the Bill. Now, if you took that very distinct and very clear ‘first and fast’ approach in Scotland….that would be extremely detrimental, in many senses, to huge tracts of Scottish agriculture.”

[Simon Hoare]

The unique beauty of Scotland is clear for everybody to see and a precious resource within the United Kingdom, but I fail to understand how the hon. Lady can argue that that uniqueness means that Scotland needs bespoke policies and devolution, while, at the same time, her party wishes to adhere to the common agricultural policy and the common fisheries policy by remaining a part of the European Union, given that there is no opportunity for bespoke policies within the EU.

[Deidre Brock]

All four Administrations of the UK take very different approaches to CAP implementation, and there has been no impact on, say, the internal market as a result. I would have thought the hon. Member would be clear on the SNP’s policy regarding the CFP. It is not our proposal to continue with the CFP as it is. We have long called for its reform. That is on the record and has been the case for years. The damage to Scotland would be immense, because 85% of Scotland’s farmland is less favoured area land. Scotland needs a different framework from England.

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[Deidre Brock]

That is a perfect point and well illustrates my point, so I thank the hon. Gentleman for his remarks.

I have already commented, in my reference to the hon. Member for Brecon and Radnorshire, on the difficulties with thinking that a schedule to a Westminster Bill will protect devolved interests. The amendment I referred to came not from the Welsh Government or the UK Government, but from three Back-Bench MPs, so relying on a schedule for absolute protection is trusting to luck.

Although the Bill extends to Scotland in great part, it does little that would support Scottish agriculture. I will seek to amend and improve it where I can—much of it so far has been subject to the English votes for English laws process, meaning that I am unable to vote on it—but there is no amendment that will make it completely fit for purpose for Scotland. That will be a running issue in Scottish farming and for all the support mechanisms devolved to Holyrood. The flexibility of the EU support mechanisms gave some room for manoeuvre to allow support for Scotland’s farmers, but that is missing in the Bill, and I expect that Members representing parts of England are also a little concerned about that apparent rigidity. It will not come as any surprise that the Scottish National party would far rather all responsibility and power for managing Scottish agriculture rest in Scotland, but we are here and I will be looking to improve the Bill where I can. We will be back for the rest.

I turn to clause 22 and new clause 5 and amendments 56 to 64. The clause strays into devolved territory and could do with a bit of tidying up, just to save DEFRA Ministers having to deal with Scottish issues down the line, which would be tiresome for them. Amendments 56 to 64 would amend clause 22 to require that applications for recognition of producer organisations be made to the appropriate Administration. In other words, an organisation operating in Scotland would make its pitch to the Scottish Government, rather than leaving DEFRA to deal with it. That would save work for DEFRA officials and Ministers, but also has the virtue of respecting the devolution settlement.

[Simon Hoare]

This is a slightly philosophical point, which I think all members of the Committee, with the exception of the hon. Lady and the hon. Member for Ceredigion, will get. It would be a travesty to suggest that Ministers of the Crown or indeed this Westminster Parliament would find dealing with anything in Scotland tiresome or a nuisance. We are unionist parties that believe in the strength of the United Kingdom. The hon. Lady can make her point, but we will not be flippant with her nationalism, and she should not be flippant with our unionism.

[The Chair]

Order. That is a debating point; it has nothing to do with the amendment before us.

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[George Eustice]

I can give the hon. Gentleman that assurance. We have been in discussion with Co-operatives UK, which raised the issue about eligibility and the fact that the requirements for a corporate body and to have all members from one sector could affect some co-operative working. We listened to that and addressed it.

I do not think that there is a spill-over of that problem—for want of a better term—in schedule 2, because that schedule is essentially all the technical clauses needed to disapply what competition lawyers call “the chapter 1 prohibition”. In essence, schedule 2 determines and sets out in some detail the process by which producer organisations can come together to collaborate and co-operate in a range of areas and co-ordinate their activities in a way that would otherwise be considered a breach of competition law.

In particular, paragraph 9(1A) of schedule 3 to the Competition Act 1998 lists activities such as planning production, optimising production costs, concentrating supply, placing products on the markets and negotiating supply contracts. Schedule 2 gives licence to a recognised producer organisation to do all those things and to disapply those elements of the 1998 Act.

[Simon Hoare]

Would the Minister clarify a concern of mine? He has referred to sub-paragraph (1A), but I refer him to sub-paragraph (1C)(a), which says that condition B is that:

“in the case of a PO, none of the producers concerned are members of any other PO as regards the products covered by the activities”.

If someone had six dairy farms, one of which sold 55% of its produce through Arla, but they wanted to create a more local co-operative and the sixth Arla-related farm wanted to be part of it, would that bring the whole house down or would there be some scope and flexibility, perhaps based on percentages? That absolute restriction may need a bit of refinement.

[George Eustice]

My understanding is that that is effectively an anti-avoidance provision to stop people from being members of several co-operatives and having a genuinely dominant market position that goes above and beyond what is envisaged by producer organisations. Under the current EU scheme, one producer organisation can have a market share of up to 33%, but if there were overlapping producer organisations, it could create market distortion. My understanding is that the provision seeks to address that.

In conclusion, I am a huge supporter of bio groups, co-operative working and collaborative working. We all know that one of the challenges we face in the agricultural industry, as we think about the future, is that it is sometimes a fragmented sector and sometimes does not have the clout it needs in the market or the ability to do joint collective buying to get those costs down. We want to facilitate collaborative working; this part of the Bill and the particular schedule that the shadow Minister has raised go some way to addressing that.

Agriculture Bill (Fourteenth sitting)

Simon Hoare Excerpts

Committee Debate: 14th sitting: House of Commons
Tuesday 20th November 2018 Public Bill Committees

[Dr Drew]

I beg to move, That the clause be read a Second time.

This simple clause is designed to do what various Members have sought: to stop foie gras being sold in this country. I attended the recent debate initiated by, I think, the hon. Member for Crawley (Henry Smith) , who referred to foie gras as

“cruel to produce, unhealthy to eat and expensive to purchase”. —[Official Report, 13 June 2018; Vol. 642, c. 1050.]

It is about time that we banned this outdated practice. I am not going to go into how it is produced—the innards, and so on, particularly as the hon. Member for North Dorset has probably had a good lunch and I do not want to spoil that in any way—[Interruption.] I shouldn’t have said that, should I?

[Simon Hoare (North Dorset) (Con)]

It was a small slice of corned beef, some grated carrot and an apple today, if the hon. Gentleman is interested.

[Dr Drew]

It is always a mistake to lead with your chin, as they say. We will pass on from that very quickly.

The new clause covers something that, as far as I know, most MPs want to do. Hon. Members may say that it is somewhat incongruous to bring this forward with this Bill, but given that Agriculture Bills come round about every 50 years, we will not necessarily be around to see this carried through.