It is a pleasure to serve with you in the Chair, Sir Gary. I congratulate the hon. Member for East Devon (Simon Jupp) for securing this debate. We had many positive contributions from across the floor. They echo many of the points that have been made from Labour Benches over the last few years, whether that be on labour supply, trade deals or the importance of food production. I particularly congratulate my hon. Friend the Member for Barnsley Central (Dan Jarvis) on echoing Labour’s cry to make, buy and sell more in Britain, and milk from the Hills will certainly be part of that. I congratulate the hon. Member for South Dorset (Richard Drax) on convening his farmers groups. I wish him luck with the Minister. Should he be unlucky, I am very happy to oblige whenever he requires.
I will come to the future later, but let us start with the present. What are we seeing, and where is the support for British farming? Frankly, farming is hurting at the moment. There may be good prices for some, but there is still no respite, particularly for those in the pig sector. It is a very grim time for poultry farmers. Avian flu is horrible, and we know the APHA is struggling. As mentioned by my hon. Friend the Member for Barnsley Central and
the hon. Member for Penrith and The Border (Dr Hudson), I am afraid that last week the Secretary of State ducked my question of what happens if we get another disease outbreak. Crossing fingers and hoping it does not happen does not constitute a plan.
We should not allow avian flu to be a cover for the longer term problems egg producers have been highlighting for many months. Back in the spring, egg producers warned retailers that costs were running ahead of prices. At the egg and poultry fair, retailers failed to show up. They were replaced with cardboard cut-outs. It is a failure in the food system. What have the Government done? Nothing. The Agriculture Act was supposed to produce action on supply chain fairness, but all we have had is consultations and no outcomes.
I ask the Minister once again: where is the dairy code? Where is the pork supply chain code? Can he confirm that the daft proposal to move the Grocery Code Adjudicator into the Competition and Markets Authority is dead? Or is that yet another thing that the “Department for Running Away From Any Problem”—DEFRA as it was formerly known—does not know the answer to? At first I thought the points the hon. Member for West Dorset (Chris Loder) made about the GCA were slightly unfair, but he pointed out that it does not have the powers it needs, exactly as we argued during the passage of the Agriculture Act.
On trade, we know about the lack of support for British farming, because the former Secretary of State, the right hon. Member for Camborne and Redruth (George Eustice), did not mince his words last week. He said that
“overall, the truth of the matter is that the UK gave away far too much for far too little in return…We did not need to give Australia or New Zealand full liberalisation in beef and sheep—it was not in our economic interest to do so, and neither Australia nor New Zealand had anything to offer”—[Official Report, 14 November 2022; Vol. 722, c. 424.]
I admire his candour. I just wish he had listened to the many organisations, including the Opposition, that made exactly the same points at the time, not many months after the Conservatives sold out British farming. No wonder so many are so furious; they are right to be.
There are more made in Britain—or rather made in Marsham Street—gaffes that are undermining British farming. Look at the meat export sector. I was at Lancaster auction mart last week to see the sheep auctions and to hear from farmers at first hand about the problems they face. There are not just high input costs, fertiliser costs and labour shortages, as if they were not enough. The latest is the gold-plating of rules for export into Europe. If that is not resolved by 13 December, it will kill the export trade. Will the Minister tell us what he is doing to resolve the situation?
How do the growers feel about the support they are getting? The NFU published a report this week showing that many are walking away from contracts and cutting production by as much as 20%. They cite a whole range of extra costs, including fertiliser, wages, packaging and transport, but the killer is energy. Farmers in competitor countries have support from their Governments, but here there is no certainty beyond a few months. The Minister knows full well that farming is a long-term businesses in which decisions about whether to plant are made many months ahead. Without certainty, the only sensible decision
for too many will be not to plant. The end result is that this country will be less secure and will depend more on imports, almost certainly produced to lower standards, just as we warned during the passage of the Agriculture Act.
I could give many more examples, but let me conclude by looking briefly at future prospects. To replace basic payments under the common agriculture policy, a new system was introduced under the Agriculture Act. The intellectual case for moving away from direct support was couched in terms of public money for public goods, and we agreed with the broad principle, but we argued then—we believe we have been vindicated by subsequent events—that food security is a public good. I was delighted to hear the hon. Member for St Ives (Derek Thomas) endorse that point.
Frankly, it was never clear whether the Government believed that a volatile and vital sector such as food production requires direct Government support or just indirect support through environmental schemes. The problem now is that they seem to be achieving neither. The ELMS saga has played out in public view over recent months. The headlines in last week’s Farmers Guardian screamed out: “ELM uproar” and “New Ministers tear up scheme plans”. Perhaps the Minister can tell us what is going on. Perhaps the Minister can also tell us why Parliament is always the last place to be told. Is it true that there will be an announcement on 1 December? If so, are we invited?
Informed sources—I include the hon. Member for Penrith and The Border in that—tell me that the changes may not be as dramatic as the headlines suggest, but perhaps the Minister can clarify that. Is tier 2 ELMS being replaced by countryside stewardship? If so, is that the genuine nature recovery network system promised in the Environment Act 2021? If not, how is it supposed to work? What is happening with tier 3—the landscape recovery part of ELMS? Has it been postponed, scrapped or scaled down? Perhaps the Minister can tell us.
Replacing more than 80,000 schemes under basic payments with just a couple of thousand so far under the sustainable farming incentive leaves a whopping almost £1 billion hole in the rural economy. To some extent, I echo what the hon. Member for South Dorset said. Frankly, is that what the Conservatives mean by supporting British farming? I wonder.
What assessment has been made of the impact of all this? Does the Minister know? I have asked him before and I ask him again: what assessment has his Department made of the economic impact so far on the rural economy? What assessment has been made of the environmental impact? I do not think we will get an answer because I know the answer: none and none.
Under this Government, support for farmers and the rural economy is haemorrhaging. The failures of this Government make them a threat to our farmers, undermine our food security and, despite the heroic efforts of the staff in the agencies, are leaving us dangerously exposed in the event of further animal disease outbreaks. Our farmers deserve support. They are not getting it at the moment, but they will with a Labour Government.
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