Agriculture Bill (Second sitting)

Simon Hoare Excerpts

Tuesday 23rd October 2018 Public Bill Committees

[Mr Philip Dunne (Ludlow) (Con)]

Q Do you think the categories of extraordinary measures that can be introduced in the event of market failure or disease having a particular impact on certain sectors of agriculture are sufficient if the country, as a result of the introduction of these new schemes, loses its position on food security and imports take over a much higher proportion of the food consumed in this country?

Andrew Clark: You make an important point. We are very pleased to see provision for measures to be taken in exceptional market circumstances. The concern we have around that comes down to a couple of things: first, the power is a power and not a duty. In the circumstances that exceptional market conditions exist and are recognised, Ministers may choose to take action rather than have any expectation or duty to do so. We would expect that would be more likely a duty that should reside with Ministers. Secondly, that it is qualified; there are a number of circumstances that have to be in place for that to be taken into account. We would like to see, for example, a consultation with the industry and consideration given to the marketplace and market returns to understand whether an exceptional market situation exists or could exist in the near future. There is more work to be done on that.

[Simon Hoare (North Dorset) (Con)]

Q Everyone agrees that certainty on how and where to invest, and so that people can lend money to farmers and the agricultural sector for investment, needs to be safeguarded as much as possible in the Bill. To put it another way, that is something on which the major political parties can coalesce and which will not be subject to tinkering every six minutes or every change of Parliament, and so on. What is your hunch? Is there enough in this Bill? Is it robust enough to give the agricultural sector—those who wish to invest in the staff working within it or to lend to it—the option of doing so in the confidence that there will be a UK agricultural sector 20, 30, 40 or 50 years hence?

Andrew Clark: It is the start of that. There is certainty through to the end of this Parliament. The reason I raised the issue about a multi-annual budget is because we are not certain about the future. There is a transition path which sees the movement of money away from the basic payment scheme. We are not clear, apart from policy statements, about what that looks like or about the certainty and security that provides for farm businesses to invest in the future. Farm businesses are long-term investments. The food sector relies on 60% of its inputs from the farm sector in the UK, so we would hope that, by the time it leaves Parliament, the Bill will create that certainty and security for farm businesses and the rest of the food sector to invest with confidence. At present, without that budget certainty, I am not sure that there is that absolute cast-iron certainty.

[Simon Hoare]

Sir Roger, may I clarify something?

[The Chair]

Briefly, please.

[Simon Hoare]

Q Just as, for example, we have that welcome figure of 0.7% of GDP for international development, would you be happier if there were, or are you looking to have, some sort of guaranteed ring-fencing or envelope of money—although how the envelope is spent is possibly subject to change—so that you know full well there is money set aside by the bean counters in the Treasury and agriculture has not been forgotten, particularly in difficult spending rounds?

Andrew Clark: That would certainly provide the certainty that we have been looking for. Whether a percentage of GDP or not, we would have to discuss—but that would be an ideal.

[The Chair]

Thank you. A final question from Deidre Brock.

--- Later in debate ---

[The Chair]

Thank you. I am afraid we must draw this session to a close. I apologise to those colleagues who did not get called. I have made a note and will try to give you priority next time round. [Interruption.] No, I am sorry.

Mr Clark, thank you very much indeed for taking the trouble to come. The Committee is indebted to you for answering the questions.

[Simon Hoare]

On a point of order, Sir Roger. This is an Agriculture Bill; we had 24 minutes with the National Farmers Union, and we had 90 minutes this morning from our first four witnesses. This is not a criticism of our earlier witnesses. As we are seeing additional witnesses from the devolved nations with regards to the NFU, is it possible for our previous witness to submit further written evidence to us, or would he come back? As it is the Agriculture Bill, it is a little out of kilter to have only 24 minutes from the senior policy man at the NFU.

[The Chair]

I am afraid, Mr Hoare, that these sessions are always a bit “beat the clock”, but it is open to Mr Clark to submit further written evidence, and he indicated that he might wish to do so. I am sure the Committee would welcome it if he chose to do so.

Examination of Witnesses

Christopher Price and George Dunn gave evidence.

--- Later in debate ---

[Tonia Antoniazzi]

Q What impact would that have on the devolved nations?

Jason Feeney: I cover England, Wales and Northern Ireland—the Food Standards Agency covers three of the four countries, and obviously we have a close working relationship with colleagues in Food Standards Scotland. Indeed, we spent two days up there last week working with colleagues from Food Standards Scotland. Food safety is a devolved issue. We are developing arrangements whereby the science and evidence is considered by what we call a regulatory forum, in which all four countries are represented and, as far as possible, we come to a four-country conclusion. All the evidence shows that that is what consumers would prefer, and that is what industry would prefer as well, obviously.

[Simon Hoare]

Q What opportunity, if any, does the Bill present to your agency to support the development of more small abattoirs?

Jason Feeney: The agency’s charging regime operates a sliding scale of discount. That is the area where we have most impact on small abattoirs. The charges are based on hourly usage of meat hygiene inspectors or official veterinarians. We have a sliding scale of discount where the smaller abattoirs are discounted by up to 80%. I do not think there is anything specific in the Bill that would impact on that particular area, but that is our main interaction with small abattoirs and that is the area that we are continuing to work on with stakeholders.

[Simon Hoare]

Q If there is a drive for more farmers’ co-operatives and a greater focus on, say, regional, bespoke agricultural support to reflect agricultural practices and types—or if that is a by-product of the Bill—that should present an opportunity for the agency to have the dynamic to think in a more creative way about how it could support the growth of food of local provenance and its movement from field to plate in a local setting, adding value to a product of which we are seeking to maintain our production levels and volumes. Would you relish the opportunity to help proactively to facilitate that from the regulatory side?

Jason Feeney: Certainly. We know from our research that consumers are particularly interested in that area, so there is a market opportunity there and we are there to ensure the safety and the provenance. When we use our strapline of “Food We Can Trust”, it is not just a safety issue; it is about authenticity as well.

[The Chair]

Thank you both for coming to give evidence and for bearing with us during the Division. I apologise for having to detain you. The Committee is very grateful to you indeed.

Examination of Witnesses

Dr Nick Fenwick, John Davies and Huw Thomas gave evidence.

--- Later in debate ---

[Jenny Chapman (Darlington) (Lab)]

Q Another way of asking the same question is: how would you have felt if the Welsh Government had declined to take part and had not asked for a schedule to be included in the Bill? How do you think that would that have gone down?

Huw Thomas: That is the position that Scotland finds itself in. It is a difficult position, because it does not have anything to consult on, to discuss with its members or to try to formulate a policy from. It is a bit invidious, I suppose. It is quite aligned with DEFRA. We have our reservations about what is proposed, but we need to move forward somehow.

I hope that the consultation that the Welsh Government are undertaking is a genuine consultation where all options will be on the table and where they will be prepared to listen, because our members are concerned about several things contained in the document. We are working closely with our members and gathering a view on it.

[Simon Hoare]

Q We heard from an earlier witness that 40% of UK lamb is exported to the continent, but we also heard that domestic consumption of lamb is reducing. I should declare an interest: I am a Welshman. After north Dorset lamb, I think that Welsh lamb is the second-best available to consumers—I want to ensure that that is on the record.

What opportunity, if any, do you think the Bill presents in terms of its ambition to support food production and to allow farmers to come together to better promote their produce in a more patriotic way, free of the EU guidelines that have often acted as a dampener on the patriotic promotion of provenance? What scope is there in the Bill and in the envisaged regime for supporting innovation and productivity?

John Davies: You are right to pick up on product innovation, which has been sadly lacking in the lamb sector, because they consider it easier to add cost than value in those things. That is something that we have to adapt to with the modern consumer, because we are seeing year-on-year reductions. We accept that challenge and we need to move forward with it. There are some good things in the Bill about producer organisations. Obviously, we would like to see a stronger focus on product development and innovation and how we can support that.

Dr Fenwick: I agree entirely. Those elements of the Bill have to be welcomed, and we certainly do welcome them. The trouble is that, while that is happening, there is a risk that another Department or another part of Government is opening the floodgates to cheap imports. Effectively, there are elements of the Bill that tighten up our own production standards and so on, but meanwhile we are opening the door to cheap imports. It is fine for the middle classes who decide to buy their organic burgers or whatever they buy, but I am afraid that most consumers shop in less salubrious supermarkets. They buy quality food because we are in the EU, but once we have trade deals with other countries, there is a big question mark in terms of the cost of production in other countries and the degree to which, for the bulk of food, it could undermine our market.

[Simon Hoare]

Q Quite a lot of Wales is covered by a national park designation, so we have the national park, the Welsh Assembly and Westminster and the Department for Environment, Food and Rural Affairs. Do you see the national parks as being a useful string to the bow in terms of fostering and supporting agriculture, or are they a potential irritant? [Interruption.] I can tell by the whispering that I have hit a chord.

Dr Fenwick: I was asking Mr Davies whether he farms in the national park—I could not remember.

John Davies: I am adjoined with the military base, so we are just outside it. I think there is a need for best practice, which is in place in some national parks, to be replicated throughout Wales, because they must be a support for the communities in which they are based rather than a hindrance. There is a real need to get policy aligned throughout Wales and considerable improvement could be made in some of the national parks. I will not comment much further than that.

[George Eustice]

Q I want to ask specifically about the Bill and the difference between the schedule for Wales and the main Bill, which, when you boil it down, is paragraphs 1(2)(a) and 1(2)(c) of schedule 3. I do not need anyone to look it up—I can explain where it is. Broadly speaking, all that does is give Wales the power to support businesses or communities in rural areas and also to support persons involved in anything from the processing, marketing, or distribution of products derived from agricultural activity. Coming back to Dr Fenwick’s point, are you pleased with these additions or not? You talked about the importance of an active farmer test and making sure that the money goes to farmers, but the additional measures in the Welsh schedule open up the possibility to give money to post offices or any other type of rural community business. Do you support that or not?

Dr Fenwick: If that is the case, that is welcome. Those pieces that effectively reflect the English text appear to be, as John described it, one-dimensional in terms of facilitating a movement from the current system to a payment for public goods system. That is the main focus of the Welsh proposals that are currently being consulted on and, indeed, the English proposals that are now in the Bill. Obviously, we have concerns about that, because effectively it is revolution as opposed to evolution. It is not an evolution if it is a transition to something that is, effectively, revolutionary and has never been done before. As I say, I am not a barrister or a lawyer, but there are big questions about how much that ties the Welsh Government down, if they were to decide to take a different course and perhaps reflect what is happening at an EU level or what is happening in Scotland or Northern Ireland.