My Lords, I strongly support the comments of the noble Lord, Lord Curry; I am sure that the Minister will take good note of them. I wish to speak to Amendment 47, which stands in my name; it has been grouped with these amendments but does not sit all that comfortably with them. I thank the noble Earl, Lord Dundee, for his support for the amendment. I again draw the attention of noble Lords to my declaration of interests as a member of the Farmers’ Union of Wales, as well as owning a few acres of land in Wales.
This amendment addresses one of the issues that, I contend, any Minister exercising the powers in this Bill would have uppermost in his or her mind: the need to ensure a level playing field for farmers in the context of the financial support they may receive.
Yesterday, in the other place, the United Kingdom Internal Market Bill was given its Second Reading. When the White Paper that preceded the Bill was published in the spring, it referred to the dangers of diverging regulatory standards in each of the four home nations of the UK. From time to time, there will clearly be different approaches within the four nations, and there may well be policies to try to ensure that agricultural producers in one area receive different levels of assistance to compensate them for the negative effects of certain factors—in other words, to bring them up to a place where they can compete fairly, not secure unfair advantages over their competitors within these isles.
However, there is also a danger of which we have to be aware—especially those of us who advocate the freedom of our devolved Governments to pursue policies that help farmers within their territories, particularly hill farmers, as has been mentioned by several noble Lords during the passage of this Bill. There is all the difference in the world between securing a level playing field with common standards and securing unfair trading advantages. My party, Plaid Cymru, recognises the need for common standards but believes strongly that these should not be imposed by the centre regardless of the policies and aspirations of devolved Governments. These standards need to be developed and applied in an even-handed way that recognises the aspirations of all four nations and the policies they support.
The UK Government-led discussion on developing the internal market has largely revolved around the potential of regulatory divergence within the UK, but the reality within farming communities is surely a far greater concern about the dangers of unfair competition arising from the movement of agricultural produce across international borders into the UK, undermining farmers in all four home nations. There is widespread support for amending this Bill to safeguard agriculture throughout these islands against the importation of substandard produce from other parts of the world. Unfair competition does not arise solely from regulatory differences but also from differences in the level and type of state aid. That is reflected in the intense negotiations currently being held between the UK and the European Union in an attempt to define a level playing field.
There is of course an overwhelming wish across all parties in Parliament for a trade deal with the EU that maintains our access to European markets for agricultural
producers, and that any deals with third countries or blocs of countries do not compromise our access to the massively important European market on our doorstep. There are two sides to the regulatory coin. One is the need to maintain standards and not have our farming industry undermined by a flood of substandard products from other parts of the world that undercut our own producers. The other is that our own farmers should not be unfairly penalised by the system of financial support operated in countries with which we compete, or the level at which such support is pitched. Such factors should not give farmers in other countries who compete in the UK market an advantage over producers in the countries of Britain.
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That is not to advocate some cosy system of agricultural support. On the contrary, since there is now the flexibility to be more innovative in our farming support system, there are more opportunities. However, in defining our new system of support, we must surely have one eye on the reality of both the support and the standards which prevail among our competitors. A failure to do this will undermine both our farmers and our food manufacturers. Disregarding levels of support among our main competitors is potentially as negligent as ignoring produce of inferior quality. Both can undermine our farmers, so I urge the Minister to accept this amendment or bring forward his own with the same purpose. If he refuses to do so, and if he denies the danger to our producers of being undermined by competitors who benefit from greater financial support, that would be a valid cause for concern. This very reasonable amendment merely requires the Minister to bear in mind the levels of financial assistance which underpin our competitors’ prices. I hope that he can respond positively to it.