Agriculture Bill — House of Lords, 2020-09-17
Topic: Agriculture
John Eric Gardiner (Conservative, Centre-right): My Lords, this has been an interesting debate, and I thank all noble Lords for contributing toward it. Of course, I regret that the noble Lord, Lord Curry of Kirkharle, is not with us. He sent me a note, and I will have further discussions and considerations with him, because I am very keen to hear what he would have said in this debate Turning to Amendments 63, 64 and 67, I would like to assure noble Lords that work is ongoing to determine the most appropriate mechanism of enforcement for the provisions under this part of the Bill. No decisions have been made about who will be appointed as the enforcement body for Part 3. It is important to note, with particular reference to Amendment 67, that while all the measures contained in this part of the Bill will collectively work to improve supply chain fairness, the Government believe enforcement will work best when each particular policy area in Part 3 can be addressed individually. I say that because it is very important that we get to grips with the issues in each sector, identifying those that are distinct as well as those that may be common. I think that would be a pragmatic consideration On the suggestion that the Groceries Code Adjudicator should be given enforcement responsibilities, it is important to note that one of the key factors in the adjudicator’s success is its targeted focus on the behaviours of the UK’s largest supermarkets with their direct suppliers. This has enabled the adjudicator to work closely with the industry in developing supply chain solutions. I join other noble Lords in acknowledging in the work of the Groceries Code Adjudicator. It has been a considerably successful tenure of office A government call for evidence in 2016 explored the possibility of extending the adjudicator’s remit beyond those directly supplying the largest retailers. The review found insufficient evidence of widespread problems further down the groceries supply chain and concluded that there was no justification to extend the remit. However, it did identify some remaining concerns. These were sector-specific and predominantly concerned with the first stage of the supply chain. Following on from this, we feel that such issues are best addressed with the appropriate and targeted interventions included in the Bill Preliminary analysis of the responses to the Government’s consultation on the dairy sector has shown that there are a range of views about appropriate enforcement. I emphasise that an adjudicator-style model is only one of many potential means to resolve contractual disputes and ensure compliance with any new regulations. Amending the Bill to appoint the Groceries Code Adjudicator as the enforcement body would serve potentially to tie the Government’s hands to only one of the many possibilities available. This would also preclude the ability to listen to the views of industry and respond accordingly, which is really important and, we think, critical in creating effective solutions. The Government are, of course, aware of the issues that farmers face in the supply chain and that is not confined to the dairy sector. To answer one of the questions from the noble Lord, Lord Grantchester, the Government will carry out similar consultations to explore the issues facing other sectors in turn. Discussions with stakeholders have already begun, to look at the situation in the red meat sector and what sort of interventions could improve the position of producers in that supply chain On Amendments 65 and 66, I thank the noble Lord, Lord Grantchester, for highlighting the importance of a robust enforcement regime to ensure that the fair dealings obligations are effective and sustainable. It is important to state that no decisions have been made about the nature of enforcement, or the body responsible for enforcement. The reason is robust and strong: the Government want to work with industry and listen to its ideas and concerns before any final decision is made The noble Lord, Lord Grantchester, asked about the consultation on the dairy sector. To be precise, I can confirm that the consultation closed on Tuesday. The consultation included a specific question about dispute resolution and, while the detailed analysis is still being carried out, it is already clear—this is broad-brush, because I asked whether there are any indicators—that stakeholders have a broad range of views about the most appropriate form of enforcement and finding the best solution will obviously require some consideration. The Government aim to publish a summary of responses later this year, which will be very important and will provide greater detail about the views shared and the options available. I hope it will not be too long before there will be scope for that consideration. The Government will exercise due diligence in designing the enforcement regime and appointing a regulator I say to the noble Baroness, Lady Bakewell of Hardington Mandeville, that I do not recognise her description of the rigour with which I and other Ministers consider appointments to public bodies. It is a very serious matter; we recognise that it is a matter of people coming forward to help in the public service. I reassure her that it has no input other than that it must be done rigorously, and the right people need to be chosen The Government intend the fair dealing obligations to create positive change for the industry. That is why we are doing it and why this is such an important feature. I am very glad that the noble Lord and other noble Lords have raised this, because this is all part of the prism of this Bill. A lot of people are worried that we are talking too much about the environment, but a lot of the guts and detail of what will come out in the provisions of the Bill are designed to help the farmer in the great production of food, and so that we can help the farmer get fairer dealing I have a note relating to the remarks of my noble friend Lady McIntosh on the GCA launching its own investigations. The Groceries Code Adjudicator can launch its own investigations, if it has reasonable grounds to suspect that a large retailer has broken the code. Again, I think the adjudicator’s work has been essential. I think and hope that, in the spirit of this debate, the reason the Government would at this time resist putting forward a particular body, however successful the adjudicator has been in this area, is that the best way to deal with difficulties in certain sectors is to work with the sector to see what is the best mechanism for enforcement. Let your Lordships be in no doubt that these are provisions that we recognise must be attended to, and in short order, because they are the way that will help the farmer in this situation In that spirit, I very much hope that the noble Lord will feel able to withdraw his amendment.