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Agriculture (Northern Ireland)

: I congratulate the hon. Member for South Antrim (Dr. McCrea) on securing the debate, and on the reasoned, knowledgeable and passionate way in which he put forward his views. He clearly feels strongly about the subject, and I assure him that my ministerial colleagues and I feel equally strongly about it. We must ensure that we have a sustainable and efficient agriculture industry in Northern Ireland that is capable of addressing the challenges posed by the rapidly changing society of the 21st century. Contributions to the debate have highlighted many of the current difficulties facing agriculture. If the Northern Ireland industry is to move forward in what is an increasingly competitive environment, it must be fit for purpose and in a position to embrace change and exploit the opportunities that change inevitably brings. Both hon. Members from Northern Ireland made that point. In the time available to me, I will do my best to address the various points that have been raised. With regard to the broad charge that the industry is in decline, the 2005 reduction in the numbers of farmers and farm businesses does not represent evidence of a major exodus from the industry; it is no more than a continuation of existing trends. The rate of decline in the last 12 months is in line with the trend over the past five years—a decrease of about 2 per cent. per annum, as the hon. Member for South Antrim said. Similar patterns of structural adjustment are occurring across Europe. In many cases, the decision to exit the industry coincides with farmer retirement. It is also important to remember that the overall reduction in numbers improves the structure of the sector, and that it will contribute to its future competitiveness and sustainability. On the age structure of the farm work force, the evidence that we have suggests that the age profile of farmers in Northern Ireland is relatively stable and that it is in line with the average for the EU 15 member states. The Department of Agriculture and Rural Development operates a new entrants scheme, which was launched in June this year. Its aim is to encourage and give support to young entrants who want to build a future in the industry. I can give further information on that. On the request for a mixture of a lump sum and interest rate subsidy, I have received legal advice and, unfortunately, that is not possible. However, research shows that the interest rate subsidy offers better value for money in respect of encouraging new entrants into the industry and sustaining them. Applicants to the new entrants scheme must have been in business in their own right for no more than one year. We are bound by the legislation on that. Some Members also referred to the announcement in the draft budget that DARD was proposing to delay the start of the entry-level countryside management scheme in 2008. That has been a cause of concern for a number of stakeholders, including the main farming organisations, which have made representations to my noble Friend Lord Rooker, who has ministerial responsibility for agriculture. I understand that the Department is looking into that again, to see if there is anything we can do to bring that forward. An earlier starting date would be of assistance. The issue of the WTO meeting in Hong Kong was raised. Progress with ongoing WTO negotiations in the development round has been slow, but significant benefits could be delivered to developed and developing countries as a result of an agreement. The CAP reforms being implemented will help the industry focus on meeting market demands and improving competitiveness. The Department has in place numerous measures to help the industry make the adjustment. They will ultimately put the industry in a position to face the market pressures that are causing difficulties. The hon. Member for Upper Bann (David Simpson) described himself as a walking advert for the Northern Ireland beef industry. I congratulate him on his commitment. The hon. Gentleman, along with the hon. Members for South Antrim and for Aylesbury (Mr. Lidington), raised a number of issues about beef imports. Hon. Members will be pleased to hear that imports to the UK for the first nine months of 2005 were 18 per cent. below those for the equivalent period in 2004. More than half of the 2005 imports came from the Republic of Ireland, and less than a quarter came from south America, Brazil, Uruguay and Argentina. The issue of standards was also raised. Beef can be imported to the EU only from countries and establishments that meet strict EU food, veterinary health and hygiene requirements. Full compliance is ensured by inspections carried out at border posts. There is also full traceability under EU-wide beef labelling rules. Looking to the longer term, we must recognise that there is greater competition, and we must address it and help prepare the industry. Rather than trying to stifle trade, we must support the industry to allow it to compete. All the hon. Members referred to the beef export ban. The recent lifting of the over-30-months rule is a significant step forward. It is a welcome boost for the food industry and for Northern Ireland's beef farmers, who can now enter their older cattle into the food chain. There are three plants that have been approved to slaughter OTM cattle for human consumption. The UK has met all conditions that the Commission set for lifting the ban. Effective BSE controls and traceability systems are in place. BSE has been reduced to achieve moderate risk status and the OTM rule has now ended. I recognise the concerns that were raised about the matter, and the UK is pressing the Commission for a proposal to be made and adopted to lift the export ban as early as possible in 2006. I understand the concern that any gap between the OTM scheme ending and exports resuming may cause market difficulties. The Commission has made it clear that it is opposed to any extension of the OTM scheme, and there are mechanisms available to consider what action is needed to deal with market difficulties. We are pressing for the lifting of the export ban as soon as possible. It will provide new opportunities for agriculture. Several hon. Members raised the issue of the nitrates directive and what compliance will mean for the industry locally. The Government are keenly aware of the significance of the issue, and DARD and DOE officials recently met the Commission yet again to discuss outstanding issues about the draft action programme and secure a viable way forward. There have been continual meetings. I remember, in my previous incarnation as a DOE Minister, meeting the industry myself to discuss the matter. The Government have been working with the industry for some time to find ways forward. The process has been protracted and difficult, and there are still differences between us and the Commission over the matter. The position on a closed period for spreading organic manure has not yet been finalised. However, I can assure hon. Members that phosphorus balance measures at individual farm level will not be required at this stage. That may give some reassurance to the hon. Member for South Antrim, who raised the issue. The draft action programme will be issued to stakeholders and discussed at their next meeting in January. We are seeking a balance on the issue. We recognise the pressures on farmers, and we shall do all that we can to ensure that we strike a balance between letting the industry get on with the business of farming and recognising the support that we must give to the environment. If we consider the money that has been made available, we see that significant resources have been allocated to the industry. As part of the revised budget in December 2004, £45 million was announced; that money is still available under those proposals. Moreover, £16.6 million has been allocated for 2006–07 and £28.4 million for 2007–08, so the Government are going a long way to assist farmers in that regard. The farm nutrient management scheme was also mentioned. Initial uptake has been slower than expected and the closing date has been extended to 31 March 2006. However, commitments totalling £10 million have now been made out of a total Government provision of £45 million, which represents additional support for the industry. The hon. Member for South Antrim raised concerns about pig farming. I would refute the accusation that we have abandoned that sector or any other. It is always the role of the Department to give support and advice whenever possible within the constraints of EU legislation and within budgetary constraints. Hon. Members will be aware of the pressures on the draft budget. The hon. Members for South Antrim and for Upper Bann have made numerous representations to me about other areas of the budget. Within those constraints, the Department does everything it can to support farmers. The hon. Member for South Antrim raised the issue of single farm payments being made in Wales and asked if our payments could be as good as those in Wales. I think that ours are even better. We are meeting the targets: of all applicants, 71 per cent. will receive payments totalling £103 million by Christmas and by the end of December that will have risen to 73 per cent. receiving £110 million. The hon. Gentleman mentioned the figure of 80 per cent. in Wales. There is a slight difference is the way that the money is counted; it is not the case that less money is being paid out in Northern Ireland. From a slow start, that represents very good progress, given that the applications were made in May and so much money is being paid by the end of the year. Renewables and the environment were mentioned. It is worth flagging up that in the draft budget announced today there will be £50 million for an environment and energy fund, which will allow us to look for new opportunities to bring Northern Ireland to the fore in the field of renewables. As an energy Minister, I have a particular interest in that. The hon. Member for Upper Bann mentioned anaerobic digestion. DARD has carried out extensive research and development in this area. It has offered financial assistance of about £3 million to a centralised anaerobic digestion plant; that particular project faced local opposition. However, part of the new strategy is the work of an expert group on animal waste, and research and development in the Department will help us learn what else can be done. We shall consider the opportunities that can be made available. On university provision, I assure the hon. Member for South Antrim that we are working to ensure that there is in Northern Ireland a degree-level qualification in agricultural technology. There is extensive provision already in the sector, of which we should be proud. The power of supermarkets was mentioned. I assure the hon. Gentleman that the Government are working closely with supermarkets on local sourcing; I know that he has asked a parliamentary question about that recently and has further information. I understand the concerns raised about the increasing concentration and buying power of supermarkets. I am concerned about allegations that multiple retailers are making excess profits at the expense of producers. If there is specific evidence of that, I ask hon. Members to give it to the Office of Fair Trading, and action should be taken. The hon. Member for Aylesbury raised the issue of badgers and TB. He will be aware that the badger stakeholder group is considering the matter at the moment, and the results of the work will be presented to the badger group at a further meeting. It is expected to report to Lord Rooker in early 2006. I recognise the strongly held views on both sides of that argument. We felt that research and investigation was the appropriate way forward. I hope that I have addressed as many of the points raised during the debate as possible. The breadth of issues raised shows the scale of interest in this subject in Northern Ireland and the challenges faced by the industry. There are numerous difficulties; I assure hon. Members that the Department will work closely with farmers and those in the industry to do all that we can to support them because that is important to the future well-being of the industry and the economy of Northern Ireland.