Direct Payments to Farmers (Legislative Continuity) Bill — House of Lords, 2020-01-29
Topic: Agriculture
John Eric Gardiner (Conservative, Centre-right): My Lords, I should at this juncture declare my farming interests as set out in the register The Bill before your Lordships is concerned with government spending and not changes to policy; it has consequently been certified as a money Bill. I will therefore focus my remarks on discussing the principles and contents of the Bill The Direct Payments to Farmers (Legislative Continuity) Bill is of critical importance. Principally, this small technical Bill seeks to provide continuity and stability to farmers by enabling direct payments to be made in all four parts of the United Kingdom for the 2020 scheme year. These payments are currently worth nearly £3 billion per annum to UK farmers The need for the Bill arises from the fact that Article 137 of the withdrawal agreement will on exit day—at 11 pm on 31 January 2020—stop the EU legislation on 2020 direct payments from applying in the UK. This is part of removing the UK from the next EU multiannual budget, in which the UK will not be participating and it would not be appropriate for this country to continue to contribute towards The Government are ensuring that, before we begin to reform our agricultural system to suit our own domestic circumstances, the interests of UK farmers are protected in the meantime. It is time sensitive, as the Bill and all necessary secondary legislation must be in place on exit day, because after that point the EU direct payments legislation will cease to apply in the UK for the 2020 scheme year This gets to the heart of what the Bill is—and, crucially, what it is not. The Bill will lift and incorporate the EU direct payments legislation for the 2020 scheme year on to the domestic statue book. It will allow the Government and devolved Administrations to make operability fixes to that legislation so that it works and can be used to continue to make payments to farmers for the 2020 scheme year. The Bill does not allow for wide and sweeping agricultural policy reforms. The Government are committed to ambitious and wide-ranging agriculture reform in England. The Agriculture Bill will introduce a new domestic agriculture system based on the principle of paying public money for the delivery of public goods, such as clean air and water and healthy soil. This will be achieved over a seven-year agricultural transition, starting in 2021, during which direct payments will be phased out in England. But this is not the Bill to bring about these changes The Bill’s purpose and scope are narrow and sufficient to provide the Government, devolved Administrations and farmers with the legal certainty that payments can be made for 2020. It is important to provide certainty to farmers, and I hope that farmers will be assured by the recent Government commitment to provide £2.852 billion in funding for 2020 direct payments in the United Kingdom. This means that the overall levels of funding available for direct payments for 2020 will be the same as for 2019. The Government have also committed to maintain the current overall annual budget to farmers each year until the end of this Parliament This Bill will give Defra and the devolved Administrations the legal basis for paying direct payments for 2020. This Bill legislates and works for the whole of the United Kingdom. The Government have worked closely with the devolved Administrations, which have had a unity of purpose in safeguarding the interests of the United Kingdom’s farmers I want to address one further important point. In September 2019, the Government accepted the recommendations of the review of the noble Lord, Lord Bew, concerning the allocation of farm support funding in the United Kingdom. I thank the noble Lord for the essential work he did on this review, which paved the way for the Government agreeing to an increase in the funding allocations for Scotland and Wales. The Bill enables the Government to deliver on their promise to uplift the funding for Scotland and Wales, while maintaining the funding for England and Northern Ireland, for 2020 Turning to the Bill’s main provisions, Clause 1 incorporates the EU legislation governing the 2020 CAP direct payments scheme into domestic law on exit day. This will ensure that the Government and the devolved Administrations can make payments to farmers for this claim year Clause 2 applies Sections 6 and 7 of the European Union (Withdrawal) Act 2018 for the purpose of the legislation being domesticated under this Bill. In applying Section 6 of that Act, it provides certainty to the domestic courts about what can and cannot be considered. In applying Sections 7(2) and (3) of that Act and the Schedules, it makes it clear how the legislation we are domesticating can subsequently be amended Clause 3 contains five powers. There are two powers, one conferred on the Secretary of State and the other conferred on the devolved Administrations, to make operability amendments to the law we are domesticating to make sure that it works in a domestic setting. For example, it would be used to replace references to the European Commission with the domestic equivalent. I must say, particularly looking at the Opposition Front Benches, that your Lordships will be familiar with this, not least because it is akin to the power in Section 8 of the European Union (Withdrawal) Act 2018, under which the many EU exit SIs were made. There are another two powers, again one conferred on the Secretary of State and the other conferred on the devolved Administrations, to replicate any changes made by the EU to its equivalent legislation during 2020, should it be considered appropriate to do so. Quite simply, this is a discretionary keeping-pace power. Finally, there is a power conferred on DAERA in Northern Ireland to retain policy flexibility for its Ministers to continue to move entitlements in Northern Ireland towards a uniform unit value, like the rest of the United Kingdom Clause 4 makes provision for the domestic publication of EU regulations relating to direct payments. It also enables regulations made under the European Union (Withdrawal) Act 2018 on rules of evidence to apply equally to the body of law we are domesticating under this Bill As I said, Clause 5 enables the Government to implement, as far as they relate to 2020, the recommendations of the noble Lord, Lord Bew, detailed in the review bearing his name. It achieves this by making amendments to the direct payment regulation. This clause demonstrates the Government’s commitment to all farmers across the constituent parts of the United Kingdom This is a small technical Bill but it is none the less significant. It is about providing continuity and stability to farmers. Where the Agriculture Bill provides for the beginning of a transition in England towards a new system of paying public money for the delivery of public goods, this Bill will enable us to pay direct payments for the 2020 scheme year across the United Kingdom while also delivering on the Government’s promise to provide fair funding allocations. I beg to move.