Leaving the EU: the Rural Economy

Thérèse Coffey Excerpts

Tuesday 17th January 2017 Commons Chamber

[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Dr Thérèse Coffey)]

This has been an interesting debate, and I am grateful for all the contributions from right hon. and hon. Members. I hope to be able to cover all the many points that they have made.

Rural businesses in England contribute more than £230 billion to the economy, employing 3.4 million people. The contribution of sectors is as varied in the rural economy as it is in the urban economy. As we have heard today, the food, farming, fishing and tourism sectors play an important role in building rural communities and preserving and protecting the environment. In the countryside in particular, there are many small businesses which cover all sorts of industries—certainly a higher proportion than in urban areas.

The rural economy is vibrant and diverse, but it is not without its challenges. For example, productivity in predominantly rural areas is lower than it is in urban areas. While DEFRA’s responsibilities mainly lie with England, rural businesses and communities in Scotland, Wales and Northern Ireland face similar challenges. Those challenges would be there regardless of our membership of the EU, and that is why we are already addressing them. That is why we launched the rural productivity plan, and why we are taking steps to improve life opportunities for those living in rural areas.

We have already done much to support and boost the rural economy. Nine enterprise zones in rural areas in England were set up last year, and a further six will start in April. Businesses that locate to an enterprise zone will receive business rate relief or enhanced capital allowances, and local enterprise partnerships can use the resulting increases in business rates to fund economic development in their areas. In the autumn statement, we doubled rural rate relief to 100%. That will give a much-needed boost to businesses, saving them up to £2,900 a year.

We are improving digital connectivity: 91% of premises can now access superfast broadband, and that is estimated to reach 97% by 2020 on our current delivery plans. Our universal service obligation of every premises receiving 10 megabits will be particularly important for remote rural communities. Reform of the electronic communications code, as a key part of the Digital Economy Bill, will help to increase rural coverage of mobile phones, and also the provision of fibre. Planning reforms that came into effect last year will enable industry to enhance existing masts and to upgrade and share equipment, which, again, will benefit mobile coverage in rural areas.

We are making it easier for people to live and work in rural areas. There are pilot programmes in parts of Northumberland and Staffordshire, providing 30 hours of free childcare for three and four-year-olds, and the national roll out is set for September this year. Under our plans for full implementation, every local authority in England will receive a minimum funding rate of at least £4.30 per hour, which will benefit many rural areas.

As was pointed out by my hon. Friends the Members for Macclesfield (David Rutley) and for Salisbury (John Glen), we need to work on skills and future careers so that farming is an attractive industry and we provide the skills that are necessary to employers. I can assure them of our commitment to trebling the number of apprenticeships to encourage people into the food and farming industries.

Extensive reference was made to the need for access to the single market. My right hon. Friend Prime Minister made clear today that we would pursue a bold and ambitious free trade agreement with the European Union. She said that we were not seeking membership of the single market, but the greatest possible access to it through a new, comprehensive, bold agreement. It is important to Scotland, Wales, Northern Ireland and England for us to ensure that we take full advantage of the economic opportunities that we enjoy today.

There has also been considerable discussion about devolution. As my right hon. Friend the Prime Minister reiterated, it is important that a Joint Ministerial Committee on EU negotiations has been established so that Ministers from each of the UK’s devolved Administrations can contribute to the process of planning our departure from the EU. As has already been mentioned, we have received a paper from the Scottish Government, and we look forward to receiving another from the Welsh Government. Both papers will be considered, but I think it important to stress that our guiding principle must be to ensure that as we leave the EU, no new barriers to living and doing business within our own Union are created. That means maintaining the necessary common standards and frameworks for our own domestic market, and empowering the UK as an open, trading nation to strike the best trade deals around the world and protect the common resources of our islands. The Prime Minister has made absolutely plain that as we do that, no decisions currently taken by the devolved Administrations will be removed from them. It is very clear that there will be no power grab.

The subject of migrant workers was also raised today. As we draw up our plans to leave the EU, we are harnessing industry’s knowledge and experience, and ensuring that its voice is heard. As my right hon. Friend the Secretary of State said at the Oxford farming conference, access to labour is an important part of our discussions, and we are committed to working with the industry to ensure that it has the right people with the right skills.

On EU nationals, a topic raised by SNP Members, my right hon. Friend the Prime Minister reiterated today the desire to see this issue resolved.

On future support, we have provided early guarantees on CAP payments, specifically on pillar one, so that farmers have certainty. We have said to farmers that they will receive the same level of financial support until 2020. I welcome the support of many Members on the opportunities to shape a bespoke agricultural policy for the needs of our nation. A Green Paper will be published in due course, giving everyone the opportunity formally to offer thoughts on its future design. I particularly like the thoughts of my hon. Friend the Member for Newbury (Richard Benyon), whom I would expect to get good thoughts from as he is my predecessor. I am sure his three-pronged approach of thinking of the agricultural, environmental and social objectives with a focus on small farmers will get much support.

On CAP pillar two, the rural development programme and the fisheries fund, the Government will also guarantee funding for structural and investment funds projects which are signed before we leave and which continue after we have left the EU. This includes rural development programmes and the European maritime and fisheries programme. Funding for projects will be honoured where they provide good value for money and are in line with domestic strategic priorities.

These conditions will be applied in such a way that the current pipeline of committed projects is not disrupted, including agri-environment schemes beginning this month. Where the devolved Administrations sign up to structural and investment funds under their current EU budget allocation, the Government will ensure that they are funded to meet these commitments.

We are committed to acting on the decision taken by the British people to withdraw from the common fisheries policy and to putting in place a new fisheries regime. We want to use this opportunity to ensure our fisheries industries are competitive, productive and profitable, and that our environment is improved for future generations—cleaner, healthier and more productive. The Government will continue to deliver their commitments on sustainable fisheries and ending discards, and will work closely with industry in designing the future fisheries management rules.

Following EU exit, the UK will continue to be subject to international law on fisheries management. This includes the United Nations convention on the law of the sea and the UN fish stocks agreement.

On leaving the EU, we will want to take our own decisions about how to deliver the policy objectives previously targeted by EU funding. As has been mentioned by several Members, EU funding is actually UK taxpayers’ funding, and we will be able to decide how that is spent in due course. Over the coming months, we will consult closely with stakeholders to review all EU funding schemes in the round to ensure that any ongoing funding commitments best serve the UK’s national interest, while ensuring appropriate investor certainty.

City deals and devolution have helped to improve local economies and we are gradually seeing more rural economies being boosted. In Scotland, the Government have given considerable support—£2.3 billion-worth—to the oil and gas industry in the last years alone. We should remember how much of the Scottish Government’s case for independence was made on the basis of a high oil price to support their economy. It is a good job that the Union has pulled together and supported the industry in these challenging times.

This has been an important debate highlighting the importance of the rural economy. What we heard from the hon. Member for Ross, Skye and Lochaber (Ian Blackford) was, “We’re all doomed,” but far from it: as my right hon. Friend the Prime Minister has stated, Brexit means Brexit and we are going to make a success of it. We are determined to get the best deal for the British people on leaving the EU. We want a world-leading food and farming industry and the cleanest, healthiest environment for generations. We are clear that when we bring EU law into UK law that is non-negotiable and we will make sure that the environment is protected, if not enhanced, for future generations. That is why today I urge the House to reject the motion but to support the amendment in the name of my right hon. Friends.

Question put (Standing Order No. 31(2)), That the original words stand part of the Question.