Agriculture Bill (Twelfth sitting)

Tonia Antoniazzi Excerpts

Thursday 15th November 2018 Public Bill Committees

[Dr David Drew (Stroud) (Lab/Co-op)]

We are all glad to be back in our places in Committee. This has been a fairly momentous day so far.

I wish to speak to amendment 119, and my hon. Friend the Member for Gower wishes to speak to amendment 96. I do not want to delay the Committee too much; I just want to make some observations. I concur with what the hon. Member for Edinburgh North and Leith has just said, and she might want to look at our proposal, because it incorporates everything, including Wales and Northern Ireland.

The point about this line of amendments is one that we have discussed before. We are trying to make the point that, when carrying through the WTO arrangements, we have to ensure that we fully consult the different territorial Administrations—in this case, Scotland, but also Wales and Northern Ireland.

Let me explain why we have tabled amendment 119. As I have said before, I visited Northern Ireland and Ireland last week, and the situation is clear. I will not say that completely different agricultural systems are evolving, but there is some difference between them. We have to recognise that. It will be something that we need to be aware of whenever we talk to the WTO if and when we leave the European Union—it will be interesting to hear whether the Minister has something to say on that, because clearly it is not a given.

We will have to apply to the WTO. Currently, we are part of the EU, so we will have to apply to the WTO in our own right. That will involve making sure that all four territorial Administrations are included in whatever appeal we make to the WTO, so in amendment 119 we are paying due regard to the devolution settlements. The situation is made more difficult, as I have said before, because there is no Administration in Belfast. We have to rely on the Department of Agriculture, Environment and Rural Affairs in Northern Ireland to take the appropriate measures on the say-so of the UK Government, but not necessarily to be completely dictated to by the UK Government.

I hope that the Minister can allay our fears that this will be a bit of a dictatorial measure if it is not amended. That is why we have tabled amendment 119. If the devolution settlements mean what they should—of course, agriculture, in this case, is a devolved matter—we have to be clear, however we subsequently work towards our own independent application to the WTO, that agriculture, which is a crucial part of any WTO arrangement, is included.

The WTO agreement is quite interesting. I hope that if I say a few things about it now, we will not have to do so again when debating clause stand part. Agriculture and horticulture are crucial parts of the WTO agreement. That means that we need to take cognisance of this, as clause 26 does, but in a way that gives due regard to the different territorial Administrations, as these amendments do.

The whole point of the WTO is to shut down agricultural loopholes,

“by binding and reducing tariffs, removing import bans or restrictions, and cutting subsidies that distort trade, both in domestic markets and on exports. As such, ‘Country Schedules’ of market access and national treatment commitments for products form an important legally binding component of WTO Membership.”

That is the specificity of the WTO agreement regarding agriculture. I could say more about how it affects agricultural trade, how it shapes agriculture policy, what the future direction of travel is and what it means for the United Kingdom, but I want to concentrate on the post-Brexit situation when we will be making this application. That is why these amendments are important. We have to ensure that all four countries are on the same page when we make that application. One of the underlying principles of the WTO is that members must not discriminate against one another. One would think that that immediately comes between the United Kingdom and other parties, but it would not be very helpful if we had discrimination within the United Kingdom, so it is quite important that we understand this in terms of the whole arrangement.

I raise that because the Minister rightly brought forward—at quite a late stage—the English votes for English laws arrangements, which lay down where the Bill affects England specifically. It is a pretty arcane document, which the Minister may wish to speak about. I will not spend hours trying to explain what the different bits mean, because I am not sure that I understand what the different bits mean. As we have tried to argue, however, this Bill has a major impact on England, much more than on the other Administrations. Wales is following England in due course. Scotland does not have a schedule. From my intimation, Northern Ireland is doing its own thing at the moment and will do so until it gets an Administration. That matters because we have to be sure that on the one hand England is not adversely affected by what is happening elsewhere, because that would look strange when we make the application to the WTO, and on the other hand that the other Administrations know that they must not discriminate against England, and they must be included in any negotiations, consultations and discussions on how we move this particular clause forward.

This clause is important. It is a part of the Bill that looks forward. It is not something we have done before, because the WTO did not exist when we entered the then European Community—the Common Market. This is a very different set of circumstances. I ask the Minister to allay some of our fears. First, will there be proper consultation, including with all the different Administrations, or with the appropriate actors if there is not an Administration, as in the case of Belfast? Secondly, to do a wee bit of pleading on behalf of England, will he make sure that England does not make all the ground running, or all the sacrifices, because we have not sorted out our own arrangements within the four countries?

The worst possible thing would be if the WTO sits on the application, leaving us in limbo land. None of us can pre-empt what will happen when we make that application. It may go through like night follows day, or it may be quite a difficult operation. Today is particularly apposite in regard to that, because we have a Bill, a discussion or a deal—whatever Members want to call it; I am not sure what form it will take when we get to the meaningful vote—that has really brought home to some Opposition Members, if not Government Members, how we have to nail this down carefully.

I hope that the Minister listens and understands why we feel so strongly about this, and why we need to get this right. I hope that he looks at these amendments—particularly amendment 119, in my name and that of other hon. Friends—because otherwise we could open up a very difficult scenario when we make that application.

[Tonia Antoniazzi (Gower) (Lab)]

I rise to speak to amendment 96, which seeks to ensure that nothing in clause 26 affects the devolution agreements in Wales, Scotland and Northern Ireland. It is our responsibility to ensure that there are appropriate safeguards for agriculture in Wales and the other devolved nations. That is important, as the farming unions in Wales do not support the centralising approach that has been proposed. We cannot support any situation in which artificial and arbitrary limits can be placed on what devolved Governments can do.

I recently met my local farmers and our Assembly Member, Rebecca Evans. These farmers were young, dynamic and successful, working hard and planning how their farming businesses can be more profitable and resilient when they do not know what is around the corner. Not knowing what is happening in the light of Brexit makes that planning practically impossible. That is why they need the security and protection of such the amendment.

Those farmers have a great fear of the limbo that my hon. Friend the Member for Stroud spoke about. We need to ensure that this is not a power grab. No express agriculture reservations should be carved out for DEFRA Ministers without their engaging first with Cardiff, Edinburgh and Belfast. Any agreement must be made by common consent, not imposition.

This is a probing amendment. However, I look to the Minister to protect the devolution settlements, even more so in the current climate.

[Mr Philip Dunne (Ludlow) (Con)]

I am grateful that this morning’s sitting was suspended so that we could all take part—or attempt to—in the debate going on in the Chamber. I have only one point to make to my hon. Friend the Minister. I represent a border constituency. I have 35 miles of the English-Welsh border in my constituency, which I suspect is the largest, or close to the largest, certainly along the English-Welsh border. That area is represented almost entirely by agricultural holdings, many of which extend on both sides of the border.

I have been informed by NFU Shropshire, to which I pay tribute for digging out this information, that there were, in a recent year—I believe it was last year—a total of 575 basic payment scheme claimants, of which the Rural Payments Agency paid 244 for cross-border claims and the devolved Administrations of Wales and Scotland paid 331. This is not an insignificant group of farmers. There are a total of 83,500 in England, so it is a meaningful number. For those farmers, operating under two separate support regimes is already a challenge, but it is one that they have become used to under the common agricultural policy, which at least has a common framework. Here I have some sympathy with new clause 11, which we will come to today or in our next sitting. It seeks to provide some form of commonality, which we have touched on before in previous sittings.

I respect the fact that agriculture is a devolved matter, so this is a challenging thing to get right, but it is a problem for cross-border farms to operate in two systems. There is a real risk that, if the systems on different sides of the border diverge too much—in particular in the financial support given to farmers—it will lead to some distortion of trade and, at the worst end of the spectrum, some gaming to maximise the support available. I am sure that none of us wants to set up a system in which that is encouraged.