Agriculture Bill — House of Lords, 2020-07-07
Topic: Agriculture
Paul Tyler (Liberal Democrats, Centre to centre-left): My Lords, the noble Earl, Lord Dundee, when opening the debate, observed that Clause 1 gives Ministers powers, not duties, so the financial assistance objectives of the Bill are only permissive and thus inevitably subject to the economic context in which it all becomes operational. It is all very well trying to allocate the most appropriate slices of the financial cake, as all amendments in this group do, but the overall size of that cake is the more critical issue for 2021 and beyond. Every single one of the bids for inclusion is at risk if the cake is drastically shrunken I said at Second Reading that I have no interests to declare, but in addition to substantial constituency and Commons responsibilities, until last year I had a small shareholding in a large farming company, and over the years, that enterprise had dairy and substantial arable interests, as well as renewable energy projects. I hope I can claim, therefore, to take an informed interest in the economic health of agriculture and rural areas The Bill is a legislative pig in a poke. Perhaps inevitably, but with dire consequences, it is entirely dependent on its context, and in the last week, since Second Reading, the likely context has deteriorated still further. First, the Government, for absurdly obstinate and dogmatic doctrinal reasons, refused to even consider giving the Brexit negotiators more room for manoeuvre by extending the transition. Secondly, Mr Frost then failed again to make any progress in the current discussions. Growers of fruit, vegetables and flowers are all too familiar with substantial frost damage. However, this frost damage is on an incalculable scale. We seem destined to charge towards a really bad deal for British agriculture, or, even worse, no deal at all. In his otherwise very comprehensive letter to us all on 29 June, the Minister completely failed to acknowledge this unprecedented uncertainty. He could make no concrete commitments. How could he, with the Covid-19 recession heading towards us at breakneck speed There are global trends to which our industry is especially vulnerable; for example, the failure of Trump’s attempt to build a market for US crops in China has left powerful American agribusinesses desperate to dump into the UK. On top of those major challenges, the combination of the Covid-19 recession and the Brexit failures is producing a uniquely unfavourable financial combination for UK farmers and growers, and the longer the crisis lasts, the nastier the results will be. For example, farmers will start to produce less. We are already experiencing the impact of having few of the 90,000 pickers we usually have from Europe. There will be resultant harvest losses. Then there is scarce credit. As operations slow down, loan terms are extended, cash is trapped and lenders are reluctant to finance commodities and are wary of volatile currencies. Governments everywhere will get scared. Export controls or attempted bans will cause price rises and shortages, with deprived communities hit disproportionately hard This all adds up to all the sectors of UK agriculture and horticulture finding it impossible to plan or invest in a climate of unprecedented uncertainty, just as the Government will be grappling with the worst economic crisis since the Second World War, and here, I thought the comments of the noble Lord, Lord Inglewood, were very relevant. In these circumstances, Ministers can hardly be blamed for being so vague about the multiannual financial assistance plan specified in Clause 4. I am willing to bet that this appears only much later in the year, long after the Bill has reached the statute book In his letter, the Minister wrote: "The Government intends to provide more detail about the early years of the transition, including Direct Payments and future schemes, in the autumn." I warn farmers and growers not to expect a cheerful Christmas present. With all the other competing claims—the NHS, the care sector, schools, reviving our already hard-pressed manufacturing sector and trying to stabilise service industries that are forced out of Europe—the Treasury is never going to be very generous to farmers Clearly, No. 10 plans to bury Brexit under the Covid-19 recession, but it risks burying large numbers of farmers and growers in the process, with calamitous consequences for consumers and for the nation’s food security. These amendments are crucial. They require the Government to be realistic and frank, because empty promises are literally worthless.