The primary effect of this amendment would be to provide a new lever to oblige recipients of financial assistance under Clause 1 to meet cross-compliance requirements. This includes parts of the cross-compliance regime where there is no backing in domestic legislation.
A large proportion of the rules currently contained in the cross-compliance regime are replicated in domestic legislation. Rules such as those in the Wildlife and Countryside Act, the Control of Pesticides Regulations and the Reduction and Prevention of Agricultural Diffuse Pollution (England) Regulations will continue to provide protection for our valuable wildlife, soils and watercourses. It will remain mandatory for individuals to continue to comply with all domestic regulation, irrespective of whether they qualify for financial assistance.
We understand the important role that regulatory standards play in trade, in protecting our environment and in protecting the health and welfare of animals. That is why the Government will take a proactive approach to engaging with industry. Responses to our landmark Health and Harmony consultation, our wide-reaching review led by Dame Glenys Stacey, and our
discussion document on the ELM scheme have informed, and will continue to inform, our regulatory framework. This autumn, we intend to launch an engagement package—the intensive consultation to which the noble Baroness referred—which will provide an update on the thinking around the future regulatory system. We want to use this to start a co-design process with industry, opening the conversation with stakeholders on the best approaches to designing a future regulatory system.
The Government are exploring other possible levers that we could use to encourage more effectively industry compliance, which would deliver improved environmental outcomes. The ELM scheme will cover a range of environmental outcomes to ensure that farmers and land managers improve their practices and are rewarded for doing so. We are considering a range of measures to ensure that we deliver these outcomes, including, for example, requiring individuals to meet certain requirements as a condition of entry within the scheme itself.
Finally, I assure noble Lords and emphasise that we should take the time to get this right—and we have the opportunity to do so. Individuals will be expected to continue to comply with all current cross-compliance regulations until we delink payments from the land or direct payments end, and until not before 2022. The noble Baronesses, Lady Jones of Whitchurch and Lady Bakewell, and the noble Earl, Lord Devon, worried about the regulatory gap, but we are striving hard to ensure that this does not occur. Through our engagement process and the development of our ELM policy, we will ensure that our high environmental and animal health and welfare standards continue to remain world-leading.
I hope that I have given sufficient reassurance on this important matter, and that the noble Baroness, Lady Young, will feel able to withdraw her amendment.