Agriculture Bill (Third sitting)

Debate between Theo Clarke and Robert Goodwill

Committee stage & Committee Debate: 3rd sitting: House of Commons
Thursday 13th February 2020 Public Bill Committees

[Theo Clarke (Stafford) (Con)]

Q I want to pick up on the question of divergence. I realise that the Bill affects England, but there are plenty of farms around the border. How will they be affected and what can we do in the Bill to support them more?

Dr Fenwick: There are about 600 cross-border farms. Some are administratively answerable to England and some to Wales, depending on the proportion of land on each side of the border—I think that is how it works. Those guys have consistently been the last people to receive payments of any form for the last 15 years, since basic payments and what is generically called the single farm payment was introduced in 2005. They have a very tough farm and are placed at significant disadvantage.

Divergence will clearly be an issue for those farms. Conversely, some of the powers in the Bill would lessen the impact, allowing their payments to be released earlier by changing EU regulations that make it difficult when one payment authority is slower than the other at processing applications—because unless everything has been processed, payments cannot be released. The ability to change the rules is therefore welcome, but as things diverge, as they may well do—it is difficult to see how they would not—a lot of thought and care needs to be taken regarding those impacts. It is not just divergence over payment systems and policies; it is also about standards. This provides an opportunity for Wales to, for example, have different assurance standards from England, yet we have a 300-mile-or-so border, which is effectively porous.

John Davies: As one of the UK NFUs, we have a fantastic working relationship. We met last week in Glasgow at NFU Scotland’s AGM. Divergence is front and centre of all our minds, because it is vital that we do not diverge too greatly and create a different trading environment in the UK. That is really important. The key basis that we always operate on is that everything should be done through agreement, not imposition. That is our guiding principle.

Tim Render: Divergence is a consequence of devolution, in that you are making different choices to reflect different circumstances, although I have a lot of sympathy for Mr Davies’ points about operating in a common market, and about standards and not diverging in some of those areas.

The issue of cross-border farms keeps me awake at night, as I think about how I move to develop a new policy. It is one of the really difficult issues. We do not have clear answers to it yet. We are working with the industry and DEFRA on what doing potentially quite different things in return for public support on either side of the border means for those 600-or-so farms that are potentially on either side of that. How we manage that is a tricky question. I do not have any answers to that, but it is something that we are working on with DEFRA and the industry, to work out what the most practical, simple and effective way of doing it is.

Dr Fenwick: When it comes to divergence, of course devolution implies divergence. We as a union supported devolution, so we have no problem with divergence, but it was divergence within boundaries. The current EU framework has strict boundaries in terms of flexibility within legislation and flexibility within financial limits. We are looking, potentially, at a complete liberalisation of those boundaries, so that they become far wider and the degree to which divergence can be market distorting becomes potentially far greater under what is happening at the moment.

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

Q This question is primarily for Mr Render, but others may wish to chip in. In earlier evidence sessions, we heard some of the frustrations with the inflexibility of cross-compliance, such as the three-crop rule or rules on hedge cutting. In particular, farmers tell me that it can sometimes be frustrating that rules on the application of slurries and manures are based on the calendar, not on the particular climatic conditions of a season or the situation on a particular farm. Do you feel that the powers that you will have will allow you the flexibility—even in-year flexibility—to enable you to carry out those sorts of operations under the best conditions, and at the same time to understand your obligations in the way that we implement the nitrate regulations and water framework directive-type regulations that we take over? Do you feel that you can get the balance right between the flexibility and the obligations to the environment?

Tim Render: I think we can. The questions around water and diffuse agricultural pollution are live in Wales at the moment. In terms of our regulations under the various water rules, we are some way behind the rest of the UK, and we are looking to take action to ensure that we have effective measures for the management of agricultural pollution.

One of the things, looking to the medium term, is an ability to think about how we do some of the wider regulation: what conditions we attach to future payment regimes; how we link that to the regulatory floor; and things around earned autonomy for more flexibility, in return for clearer, authenticated and demonstrable actions that take account of flexibility while there are, at the same time, clear ways of ensuring and providing assurance that the necessary actions are taken. Those are some of the opportunities that we have in the medium term, adapting some of the regulations, but it is probably through more sophisticated regulation and earned autonomy approaches that we can really provide some of that greater flexibility.

John Davies: Thank you, Mr Goodwill, for the opportunity to comment on this, because obviously regulation has been one of the reasons that Europe has had less favour. Nitrate vulnerable zone regulations are among the most prescriptive and least effective of those that have been implemented by Europe. Let us move away from that. Let us ensure that regulation, when it comes, fills the gaps and is effective. Anybody who thinks that they can farm by date will fail. It is vital that we farm by the ground conditions. We have a changing climate here, and we have to respond to that. We have to evolve, adapt and work effectively to reduce the number of incidents. It is coming down slowly, but we need to move more rapidly to reduce it. It is vital that we get on top of that through effective, proper, reasonable regulation.

Agriculture Bill (Fourth sitting)

Debate between Theo Clarke and Robert Goodwill

Committee stage & Committee Debate: 4th sitting: House of Commons
Thursday 13th February 2020 Public Bill Committees

[Mr Goodwill]

Q Key to the structure of agriculture in many parts of the country is the traditional family farm. In many cases, family members who perhaps have other jobs will come and work for free at weekends. Spouses are often unwaged. As a farmer’s son myself, I did not get any wages at all until I was 28; I just got some money out of my mum’s purse if I needed it. You suggest reinstating the Agricultural Wages Board. How would that work with the traditional family farm structure? I can see difficulties. Some of these farms are very marginal indeed and can survive only because of people working either unwaged or for low wages in the hope of inheriting the family business.

Diana Holland: When it existed, it was not any different, and it was fine in the sense that it operated. Whether everybody got what they were entitled to is another question; perhaps you are suggesting they did not. Certainly, we have worrying evidence of individuals being paid not in money but through provision of accommodation and so on. We got evidence—it was a terrible story—that an individual woman had worked for a long time on a farm and in all that time had never received anything, apart from the odd bit of what might be considered pocket money. She was extremely worried when the employer was in danger of stepping down from his responsibilities that nothing—no rights—would exist for her. I think that is evidence of the nature of the problems that workers in the sector face. I do not think it is a reason for not trying to do something about it. I think it is important that people receive recompense for what they are doing, and that needs to take account of the nature of agriculture. The Agricultural Wages Board does that by bringing together workers’ representatives, farmers’ and employers’ representatives and independent experts in a tripartite way, to make sure that that properly reflects what is really going on. The issues you raise would be discussed at the table, alongside the pressures and issues that I am raising and the official evidence gathered by the experts.

[Theo Clarke]

Q I want to pick up the point about agricultural workers. My constituency in Stafford has a lot of rural areas. Farmers have mentioned to me that the pilot scheme is great, and it has now been extended to 10,000. Are your members saying that we need to have an increase in seasonal workers, because there will be fruit left unpicked later in the year if more do not come in? What are your views on that?

Jyoti Fernandes: We believe in smaller units, where you do not need to bring in loads of seasonal workers. With smaller-scale market gardens and horticultural units that pay well, you can attract British workers and will not need to bring in so many people from other countries in order to pick those crops. We see a flourishing, home-grown fruit industry, where you can bring in more people to do that kind of work.

That needs investment, access to land, grants for people to get into that kind of small-scale market gardening and horticultural units and to plant fruit trees into mixed farms, and training. It needs routes to market, which means processing facilities, so that you can make apple juices and that type of thing, and so that you can store those things, add value to them and get better value back on them. It needs distribution facilities within local market economies. That might be market facilities in town, online distribution services or co-operatives that try to process those fruits and get them to market, so that you get a good price for them. It needs all those sorts of investment in our national infrastructure in fruit, fruit processing and distribution.

Agriculture Bill (Second sitting)

Debate between Theo Clarke and Robert Goodwill

Committee stage & Committee Debate: 2nd sitting: House of Commons
Tuesday 11th February 2020 Public Bill Committees

[Theo Clarke]

Q In what way?

Judicaelle Hammond: I think that my lawyers would probably have my guts for garters if I tried to answer that question on the spot.

George Dunn: I think it is good that there is the facility to pause or extend. One would hope that there would be close consultation with the stakeholders to consider that. There is a doubt as to whether we can reverse, which might be possible. There is also the issue, which I know other witnesses have raised, that if you are taking money out of the BPS, and, for whatever reason, we are not ready to spend that through the new public payments for public goods or productivity schemes, that money needs to be paid back to the recipients from whom it has been removed, until such time as the Government are ready to commit to that expenditure.

[Mr Goodwill]

Q Chapter 2, clause 8 deals with the possible extension of the period. I may not understand it particularly well, but it does not make it clear whether, if there is an extension to the seven-year period, that would pause the transition from BPS to ELMS, or whether that would just continue, but at the end of the seven years there would be an extra year or two under the full ELMS system. If there was an extension, at the same time, could that be coupled with a freeze in the transition for a number of reasons, including that the ELMS was not being taken up as quickly?

George Dunn: Yes, and I think that is what the Bill intends. My reading of the Bill would suggest that that is what would happen under those circumstances. To go back to the previous question, if money was taken out of the system that was not able to be spent through the new arrangements, that would have to be paid back, in our view.