My Lords, this is an important Bill and certainly a once-in-a-lifetime opportunity to reform the funding of agriculture in this country. It is confirmed by the number of noble Lords speaking in the debate, which is in contrast to the occasion when one of the Minister’s predecessors, Lord Walton, came to the House in December 1940 to make what he thought was an important speech only to find seven Members in attendance, their main interest being in the allocation of jam. I declare an interest as a farmer, with other rural interests. In the interests of time, I will touch briefly on three issues: security, standards and sustainability.
Agricultural subsidies are rife throughout the world and cost over $500 billion a year. Often, their purpose is to support rural economies and underwrite food security. Covid-19 has shown that in many areas, globalisation can lead to national shortages. While it has not dramatically affected the food supply here, it has been comforting to see how well the food supply chain has functioned in recent months—our thanks should certainly go to those who have kept the shelves full.
On food security, we are 60% self-sufficient but, despite the dramatic performance of our agricultural exports, we run an annual balance of payments deficit of about £24 billion. We welcome the review of sustainability and security but the question is, what level of self-sufficiency should the country aim for? I would be grateful if the Minister commented on that. Also, in the course of policy formulation, what attention is being paid to our ability to pay for the high level of imports that we sustain?
Many noble Lords have spoken eloquently about food standards, and we are absolutely clear—everybody I speak to is clear—that there must be no reduction in those. The joint Secretary of States’ letter yesterday offered some comfort. However, the key is to see how this is dealt with in the Trade Bill, and of course the Government’s intentions, as noble Lords have indicated, remain a matter of concern. The key will be the regulatory framework we put in place to oversee those, and as we work our way through the Bill and the amendments, we will get a better picture.
The sanitary and phytosanitary standards are more visible. One of the things we need to be aware of as we drive for more productivity and efficiency is that we do not want to drive standards down. We want to ensure that those who work in the production and, more importantly, the processing of food have the right working conditions and standards to do their jobs. We must ensure that those standards are maintained.
Finally, I come to the sustainability issue: getting the balance right between environmentally ambitious policies and the need to have a highly productive, quality agricultural sector. It is commendable that the Government have recognised that this will take time, and the transition period is very welcome. However, until we see details of things like the ELMS project, as other noble Lords have indicated, it makes it extraordinarily difficult for farmers to plan. Farming is a long-term activity, as is environmental investment, and the quicker we can see details of the success of the pilot schemes and understand the finer detail, the better we will be able to go forward. Similarly, on issues such as productivity and investment, we need to understand how this will come about and which sectors will be supported, how that money will flow through and how it will go over the coming seven years.
When Lord Walton came to the House in 1940, his objectives were to ensure that the nation had enough food of sufficiently high standards, and of course we wanted to survive. The threats we face have changed, but we should ensure that this legislation is true to the same principles: food security, food standards and sustainability.
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