There have been a number of representations about how long that period should be. Most people have suggested that somewhere in the region of five years or possibly a little bit more makes sense. As the Secretary of State has indicated for illustrative purposes, something in the ballpark of five years seems to make sense and seems to be where the consensus is.
We also recognise that we need to help businesses prepare during the transition. We recognise that we may need to take account of the less favoured area status of some areas, particularly the more financially vulnerable upland areas, and of the impact on those rural communities. We are certainly willing to do that, and we flagged the potential need for it in our consultation.
However, there is more than one way to approach this. We could continue with something similar to what we have now, but a number of organisations representing upland interests have actually said to me that they see great opportunities in the principles and the approach that we advocate. For instance, the Uplands Alliance told us that it was very keen to move to a system of payment for the delivery of public goods. It makes a powerful point, because at the moment the uplands, and particularly the moorlands, get less area payment because they are deemed to be disadvantaged areas on less productive land. That could not be more upside down.
In fact, they potentially have the opportunity to deliver more by way of public goods, in terms of public access, flood mitigation, carbon sequestration, peat bog restoration or improvements in water quality. There are many opportunities for the uplands to deliver those public goods, and several people are starting to say that, if we are serious about payment for the delivery of public goods, they see a vibrant, profitable model for upland farming.
We also set out, in an annexe attached to our consultation, ideas about the type or flavour of the options that we might offer. We have about 30 years of experience in various environmental land management schemes. For instance, even in the current schemes there are options for enclosed rough grazing, the management of moorland, the protection of native breeds and the shepherding supplement. We also have grants for stonewall protection, hedgerow restoration, the maintenance of weather-proof traditional farm buildings in remote locations and haymaking. There are many options within those existing schemes, and we have a lot of experience of making them work.
I will turn to some of the points made by hon. Members. The sheep sector is very important for Wales. There are 10 million sheep—around 30% of the UK total —and some 14,000 holdings with sheep, many of which
are in disadvantaged areas. It will be for the Welsh Government to design a policy that works for their own farmers and their own circumstances. The hon. Member for Carmarthen East and Dinefwr mentioned how closely we are working with the Welsh Government. As I pointed out earlier, very detailed working is going on. The hon. Member for North Devon (Peter Heaton-Jones) highlighted some of the great work being done on Exmoor, and I very much agree with him. I visited the mires project, run by South West Water and other local partners on Exmoor, and some innovative policy thinking is going on there.
The hon. Member for Bishop Auckland (Helen Goodman) raised a number of issues relating to trade. I do not accept that we need a customs union, but we need a customs agreement. That is exactly what the Government seek—a comprehensive, bold free trade agreement with no tariffs and agreed customs arrangements. I do not agree that we need absolute uniformity on regulations. It is possible for us to recognise equivalence, since our starting point is that we are departing the single market; we are not a country with a very different regulatory tradition.
The hon. Lady also asked about the WTO. We believe that we should treat this as technical rectification, and we are working with the European Union to split our WTO schedules, both on tariff-rate quotas and aggregate market support, which is the ceiling on market support and subsidies that can be paid to farmers. Those will simply be divided based on historical use, which we do not believe will provide us with any problems.
Finally, on future trade deals with other countries, we have been crystal clear that we have standards and values that we will not abandon, and we will not abandon or compromise our standards in pursuit of a trade deal.