(4 years ago)
Commons ChamberIn putting the environment at the heart of our new system of farm support, this is one of the most important environmental reforms for decades. I was proud to be the one to introduce the Bill to Parliament in my previous role as Environment Secretary.
Dismantling the common agricultural policy is, of course, one of the key benefits of Brexit, but there is no doubting that this legislation, although not a trade Bill, has been overshadowed by trade matters. Like the Chairman of the Select Committee, my hon. Friend the Member for Tiverton and Honiton (Neil Parish), I warmly welcome the significant concessions the Government have made on trade. Setting up the Trade and Agriculture Commission, extending its duration and putting it on a statutory footing will toughen up scrutiny of our trade negotiations in this country. It will also provide invaluable support and an invaluable source of independent expert advice for this House. It will strengthen our ability to hold Ministers to account on trade and farming issues, as will the requirement in Government amendment (a) to report to Parliament on how any future trade deals impact on food standards.
I welcome the statement at the weekend from the Trade and Environment Secretaries that the bans on chlorine-washed chicken and hormone-treated beef are staying on the statute book and will not be lifted, even if our negotiating partners ask us for this. Real progress has been made, which is why I will vote with the Government this evening, but this is not the end of the campaign on trade and food standards. This Government were elected with a stronger commitment on animal welfare than ever before. We must use our new status as an independent trading nation to build a global coalition to improve animal welfare standards.
Many countries use trade agreements to impose conditions on their partners. Even the US has fought lengthy battles in the WTO over protection for turtles and dolphins. It is possible, so while the debate on the Bill is drawing rapidly to a close, the task of scrutinising UK trade negotiations is really only just beginning and will require continued vigilance by all of us in this House. We must ensure that our negotiators stand firm and refuse to remove any of the tariffs that currently apply on food unless it is produced to standards of animal welfare and environmental protection that are as good as our own. The UK market for food and groceries is around the third largest by value in the world. Greater access to it is a massive price for any country. We should not sell ourselves short.
I rise to support the Lords amendments, but I acknowledge the progress that has been made in putting the Trade and Agriculture Commission on a statutory footing. I do not think that I am being churlish when I say that the Government were dragged kicking and screaming to do this; I am just stating the blindingly obvious.
The progress that has been made is testament to the campaigning prowess of the NFU, Minette Batters and, indeed, the whole farming community; otherwise this matter would not have come to this place a few weeks ago, would it? So it is blindingly obvious that the Government’s heart is not in this. Nevertheless it is a step—[Interruption.] Government Members grumble from the Benches opposite. Why did they not fix this a fortnight ago if they meant it?
The reality is simply this: we support free trade and fair trade, which is why we are deeply concerned that, still, this Government amendment, which is an act of progress, will finally be subject to a scrutiny process that culminates in a CRaG procedure. In other words, it is take it or leave it from a Government with an 80-seat majority. We know what matters to this Government—the getting of a deal not just with America, but with other countries. Let us make sure that we remain healthily sceptical, as I know every single farmer in the country will be.
There is a reason why we think that fair trade as well as free trade matters to British farmers: we fear the undermining of the very unit that makes up British farming, makes it special and, indeed, underpins the animal welfare and environmental protections of which we are rightly proud, and that is the family farm. I just want to draw to the Minister’s attention something that she could mistakenly do in just a few weeks’ time that could do as much damage as an unfair trade deal. It is the phasing out of basic payments in just eight weeks’ time, which is seven years before the new environmental land management scheme will come into force. That is 60% of the revenue of livestock farmers that will begin to be phased out from January. It is between 5% and 25% of their BPS incomes from January.
I am simply saying that we want our family farms to survive through to ELMS being available. We support ELMS by the way, but we cannot surely take away people’s major income and then make them wait seven years until the new one comes in place. If the Government are committed to maintaining and protecting family farming and the benefits that it brings to our landscape in the lakes and dales, to biodiversity, to food production, to tackling climate change and to preventing flooding, they need to keep those farmers in place in the first place. I respectfully ask the Minister to look again and maintain the basic payment scheme at its full level until ELMS is available for everyone.
(4 years, 9 months ago)
Commons ChamberI can; this House will be involved in scrutiny of our trade negotiations, and I look forward to having those debates with hon. Members.
(4 years, 9 months ago)
Commons ChamberI would encourage everyone to do that. We produce some of the finest food and drink in the world, and I encourage everyone to reflect that in their shopping habits.
We fully recognise the particular challenges faced by upland farmers—indeed, I discussed that issue just a few days ago with a group of farmers in Northumberland National Park. We are determined that ELM will also work for upland farmers, and the incredible work they do to safeguard our beautiful natural landscapes will put them in a strong position to take part in our environmental schemes.
Will the Secretary of State give way on that point?
No.
Reformed funding support for farmers and land managers will be an important part of our programme to level up the rural economy, and we will provide grants and funding to improve productivity and help farm businesses become more resilient and successful. We believe that farming efficiently and improving the environment can, and indeed must, go hand in hand. We will therefore support investment in green agri-tech, as referred to by my hon. Friend the Member for North Dorset (Simon Hoare), and invest in research and development to help raise sustainable productivity levels.
Clause 4 includes a duty on the Secretary of State to set out a multi-annual plan for financial assistance, while clauses 5 and 6 include provisions that will require the Government to make annual reports on the amount of financial assistance provided in England. Those three clauses are designed to provide greater certainty and stability about assistance in the future, and are in direct response to concerns expressed by right hon. and hon. Members about the earlier version of the Bill. Clauses 7 to 13 provide that during a seven-year transition period basic farm payments will gradually be phased out.
I strongly believe that the changes in the Bill will be positive for farmers and the environment, but change of this magnitude will also have far-reaching impacts, and adjustment to the new approach will not always be easy. As I emphasised in the debate on the Direct Payments to Farmers (Legislative Continuity) Act 2020, a managed seven-year transition period up to 2027 will give farmers time to adapt to the new system, and provide time for the new schemes to be fully tested before they are delivered across the country.
I am extremely grateful to the Secretary of State for giving way. She will appreciate that in that seven-year transition period farmers will be expected to cope with the loss of the basic payment scheme—according to her Department’s figures, 85% of funding for livestock farming comes from that scheme—and for all the likely and theoretical benefits of ELM it will not be functional for everybody until 2028. Does she agree that a wiser and more compassionate way of dealing with this issue would be to not phase out BPS until 2028, rather than starting before that?
I understand the hon. Gentleman’s point. In part, we want our grants for productivity and investment to help plug that gap. But we have to get on with this; we must make progress in transforming the way we support land management in this country. I am afraid the climate crisis is urgent.
Clause 11 contains provisions to introduce delinked payments during the transition, and where we can, and subject to constraints in the withdrawal agreement, we will introduce simplifications to the existing BPS scheme. Our transition to the new schemes opens the door to a fresh approach to the rules that we expect farmers to meet, as provided for in clause 9. We are determined to have a far more rational and proportionate approach to compliance than the inflexible CAP regime that we are leaving. For too long farmers the length and breadth of this country have had to put up with systems of inspection, compliance, and penalties that often seemed to defy logic or common sense. Outside the EU, we can do better.
Clauses 18 to 20 provide that in exceptional circumstances the Government can act to support farmers through significant market disturbances in England. Our farmers want to be competitive, collaborative, and innovative, and to negotiate effectively at the farm gate to get a fairer return. We are using the Bill as an opportunity to take further action, and to improve fairness in the agriculture supply chain.