I thank the noble Lord, Lord Greaves, for his Amendment 140. Our new “public money for public goods” policy aims to reward farmers and land managers for goods and services that benefit society but are not currently traded on the market. The financial assistance powers in Clause 1(1) provide the Secretary of State with the power to spend money for furthering certain purposes, which in turn can help to deliver these public goods. The amendment would require the Secretary of State to define the “public funds for public goods” rule. This Bill does not include a definition of “public goods” because it provides powers to the Secretary of State to pay financial assistance for a number of purposes that will enable Defra to introduce its future policies, including productivity grants, as set out in Clause 1(2).
Perhaps I may go further. In terms of this Bill, public goods are goods and services that are valued by society but not provided by the market, including things such as clean water and air, thriving plants and wildlife, a reduction in and protection from environmental hazards, adaptation to and mitigation of climate change, the beauty and heritage of the environment and engagement with it.
The noble Lord asked whether productivity was a public good. The more productive the method of farming, often the more environmentally sound that farming method is. Our priority is a productive farming sector—one that will support farmers to provide more home-grown healthy produce made to high environmental and animal welfare standards. More efficient production has the benefits of lower costs and higher yields and, in many cases, a reduced impact on the environment.
The Government believe that by moving to a new system based on public money for public goods, and by supporting farming through productivity schemes and grants, we will put English farmers in the best position possible to boost sustainable food production. Defining “public good” in the Bill and requiring every pound spent under Clause 1 to meet this rule would unnecessarily restrict the Government’s ability to deliver their goal of a more sustainable, productive sector. Perhaps I may reiterate what Clause 1(4) says:
“In framing any financial assistance scheme, the Secretary of State must have regard to the need to encourage the production of food by producers in England and its production by them in an environmentally sustainable way.”
Amendment 141 seeks to provide powers for the Secretary of State to require landowners or managers to participate in landscape-scale land-use change projects. The Government recognise that the ELM scheme will be most successful if it has very high levels of participation. This could be particularly important when considering locally targeted or landscape-scale projects under tiers 2 and 3 of ELMS, especially where any such projects require collaboration. The Government are therefore working closely with stakeholders, including landowners, to ensure that the scheme is attractive and offers appropriate and sufficient incentives to secure the necessary voluntary participation in projects. Indeed, the noble Baroness, Lady Bakewell of Hardington Mandeville, was correct in saying that the use of coercion in these larger projects is very much against the spirit of the entire Bill.
With that, I ask the noble Lord, Lord Greaves, to withdraw his amendment.