There may have been a deficit in totality, but I hope the right hon. Gentleman is not trying to contend that the situation has been made any easier by the trade environment we now find ourselves untimely ripped into.
We have to ask, “To what end?” Even the UK Government’s own analysis shows that the trade deal with New Zealand will deliver a mere 0.03% benefit in GDP to the UK over 15 years and the Australian deal 0.08%, all the while the UK-EU trade and co-operation agreement will lead to a contraction of UK GDP by 4.9% over 15 years.
A number of safeguards could have been put in place in the agricultural chapters to protect farmers: no full liberalisation irrespective of time period; lower quota terms; percentage controls on the ratio of frozen to fresh carcases to protect the high quality Scottish fresh meat trade; clauses that work out beef and lamb tonnage quotas in a carcase-specific way, so premium cuts are protected; seasonality clauses; clauses to ensure the exports and imports of high value meat are properly valued; and trigger safeguards that could have been applied to protect the domestic market against any surge in imports in a particular year.
On new clause 5, it is important that an assessment is carried out on the impact of implementation of the procurement chapters on hill farmers and crofters in Scotland. Many in the hill farming and crofting communities are highly economically marginal. They have a huge economic importance in terms of supporting their areas, but the economics can be precarious at the best of times and they will certainly not be made any easier by the terms of this trade deal. The risk of undercutting standards through the deal means that meat is likely to end up costing less in the UK if it is shipped in from Australia or New Zealand, rather than if it is produced at home.
Analysis by Quality Meat Scotland has concluded that New Zealand beef farmgate prices are anywhere between 25% and 30% lower than Scottish farmgate prices, and 10% lower than their Scottish counterparts for lamb, undercutting on price. Matters relating to food standards fall within the competency of the devolved Administrations, but they have absolutely no power to exclude imported products on the basis of how they have been produced or on the undercutting of standards that feed into the undercutting of prices.
Donald MacKinnon, the chair of the Scottish Crofting Federation, speaking of the 15-year-long transition period, said:
“This is about changes that can happen over a much longer period of time. Agriculture does not operate on year-to-year, short lifecycles. We operate in generational terms in our businesses, and 15 years is a relatively short period of time in that sense. So it is not that we are concerned that the negative impacts are going to happen straightaway. This is about the long-term future of our industry. That is what my members are concerned about.”
Jonnie Hall, director of policy, National Farmers Union of Scotland, said:
“Ultimately, an awful lot of procurement contracts will be negotiated on price, given that there will be a written understanding, at least, that the standards in them will be of an equitable value,
if that is the right expression. It is the competing on price piece that will probably be of more concern to Scottish producers than anything else, because we operate under different agricultural production systems and our cost structures are therefore different…it may be that New Zealand and Australian produce is more attractive simply in terms of value for money—I will call it that, but the word ‘value’ is not right.”
It is notable that the EU managed to secure the same market access into New Zealand for its exporters as the UK, but at a much lower cost to its domestic producers.
The Secretary of State has said that she is a huge believer in British farming and the role it plays in our national life, and has written about her fears of the impact that opening up our markets will have on domestic producers. We firmly believe that she should allay those fears by renegotiating the agricultural chapters of these deals with the new Australian Administration and the New Zealand Government. We should ensure that we monitor very closely the impact it has on our agricultural communities. While renegotiating, she might also want to consider the fact that Australia is one of the few countries in the world that maintains an effective absolute ban on the importation of UK beef. The Secretary of State has said that she does not believe the Department for Environment, Food and Rural Affairs raised concerns with the World Trade Organisation via the Department for International Trade on this issue. That should certainly happen, and it should certainly have been addressed in the trade deal to make sure that this barrier was lifted.
5 pm
Amendment 3 is a measure designed to protect devolution and make sure that it is respected not only in law, but in spirit. Sadly, it is wholly in keeping that, even in such a narrowly focused Bill as this, the approach taken by the UK Government undermines the precepts of devolution. The Scottish Government have consistently and successfully implemented international obligations on procurement since 2006, when they first transposed EU directives into Scottish law. The Scottish Government, unlike the UK Government at certain points over the last few years, have never wavered in their commitment to upholding international law. It is our firm belief that the powers in this Bill should not be exercisable by UK Ministers in relation to Scotland without a requirement to secure the consent of Scottish Ministers. That is also the belief of the cross-party Economy and Fair Work Committee in the Scottish Parliament.
The Scottish Government have said in their legislative consent memorandum that they do not intend to lodge a legislative consent motion for the Bill as introduced, based on two concerns: first, UK Ministers would be able to make secondary legislation in devolved areas without a requirement to first seek consent from Scottish Ministers; and, secondly, the delegated power allows for implementation of the agreements as amended in the future without the Scottish Parliament knowing what any future amendments might be at the point of giving consent. Of course, the Scottish Government will continue to try to engage constructively with the UK Government to find an approach to this Bill that is acceptable, and we encourage the relevant UK Departments to do the same. However, it should never have got to the point where the Scottish Government are having to ask for these basic requirements to be respected at such a late stage in the negotiation and ratification of these deals.
It is a matter of great regret that the devolved Administrations with responsibility for agriculture, wherever they are in the UK, have had no direct role in the negotiation of these deals, and that absolutely has to change when we are negotiating future trade deals to replace those left behind.