Proceeding contribution from Jonathan Shaw (Labour) in the House of Commons on Monday, 9 July 2007. It occurred during Estimates day on Department for Environment, Food and Rural Affairs..
Department for Environment, Food and Rural Affairs
I do not have very long; I will not give way, if the hon. Gentleman does not mind. To achieve such a farming industry, the report advocates a manageable period over 10 to 15 years. Important protections should be progressively aligned with the much lower level prevailing in the rest of the economy, in relation to export subsidies. Pillar one domestic support should be phased out, leaving the CAP as a framework for safeguarding a fair regulatory trading framework. Public spending should be based solely on pillar two-type public benefits such as the environmental schemes that hon. Members have mentioned. I am pleased that the Committee’s report supports those goals. There can be no doubt that our vision represents a radical transformation of the CAP. Such changes would free farming from the heavy market control, bureaucracy and regulation of the CAP so that it could make the most of the new opportunities provided by growing global demand. In that regard, there is a good story to tell. There are now 28,000 environmental stewardship agreements in place, covering nearly 4 million hectares of the country. The new rural development programme for England provides £3.9 billion over a seven-year period—more than double the budget for the previous programme—and £3.3 billion of that will be devoted to the schemes that enhance and protect the environment. That includes transferring or modulating up to 14 per cent. of the budget from pillar one of the CAP to help to fund environmental land management schemes and providing more than £700 million of national co-financing to accompany those modulated funds. Our vision involves moving the farming sector forward yet further in that direction. It also has the potential to bring real savings for consumers and taxpayers, and economic benefits for society. According to the Organisation for Economic Co-operation and Development, the CAP currently costs €1,000 a year for a family of four, and will leave the EU economy €100 billion poorer over the period from 2007 to 2013—[Interruption.] That is what we have set out in our vision. More widely, it would have significant benefits for the developing countries. Agriculture is extremely important to developing countries, accounting for 60 per cent. of employment and 25 per cent. of gross domestic product—even more for some of the poorest countries. Agricultural protection of the sort needed to support the CAP seriously distorts world markets and effectively excludes exports from many developing countries. Net welfare benefits to the developing countries from CAP reform are estimated to range between $24 billion and $43 billion annually. The Government have promoted those objectives for several years, which is in line with our ambition for farming, the environment, trade and development. Let me deal with some of the issues raised—[Interruption.] It is a fly; the environment is bad. [Interruption.] I have never been heckled by a fly before, but there we are. The right hon. Member for Fylde (Mr. Jack) said that we had sidestepped issues and that our ““Vision”” was not visionary. Well, we were the first Government anywhere in Europe to set out a future for the common agricultural policy—no Government had ever done it before—and it has succeeded in generating debate. Previously, we had been going from one step to the next, but we were the first Government to set out a programme of radical reform. It was designed not to be a road map but to stimulate debate—and that is exactly what it has done both here and in the rest of Europe. Criticism was made of the publication date. Yes, it was a risk—a calculated risk—in order to generate debate. Criticism was also made of the research, but we used OECD statistics and we were commended by the OECD for using its data. During the debate on the Rural Payments Agency and the single payment scheme criticism was levelled at personalities—both Ministers and officials. In our response to the Select Committee, we will make it clear that we were disappointed that new territory was entered into by naming officials in that way. I understand the feelings and anger expressed on behalf of the rural community, but that was a departure from usual practice and the same rules should apply to this Government as to other Governments. My hon. Friend the Member for North-West Leicestershire expressed concern about remapping and its impact on the 2008 scheme. It will not impact on that scheme. When we remap, we will involve all stakeholders to ensure that it is timely and that it does not cause further difficulties. We understand the concerns and we are anxious to ensure that this does not happen again. The hon. Member for Brecon and Radnorshire (Mr. Williams) asked whether agriculture would survive. We think that farming has a bright future. Enormous change is happening across the world. America, for example, is developing bioethanol plants at a rate of one per week, which will have a significant impact on the amount of grain exported. Where we see the economies of China and India rising and developing, it will mean further opportunities for Britain. In our ““Vision”” document we set out our plans to move Britain from subsidising production to providing subsidies for environmental good. We want farming to seize the opportunities that the global world offers and we want to ensure that developing countries are able to access the markets. That is our vision for the future. Where I have been unable to respond to right hon. and hon. Members’ points, I will write to them. I am thinking particularly of the hon. Member for South-East Cambridgeshire, who speaks for the official Opposition. I apologise for being unable to respond to all his points, but I will correspond with him. We are clear about where we want to go in the future. If in five, 10 or 15 years’ time a future Labour Government can look back on this Labour Government’s achievements and say, ““We set out that vision and it was realised””—meaning the vision of a European farming policy in line with what the Select Committee proposed—we will both be pleased. It being Ten o’clock, Mr. Speaker proceeded to put forthwith the Questions relating to Estimates which he was directed to put at that hour, pursuant to Standing Order No. 54(1) and (4) (Questions on voting on estimates, etc.).
Secondary information
- Type
- Proceeding contribution
- Reference
- 462 c1287-9
- Session
- 2006-07
- Chamber / Committee
- House of Commons chamber
- Subjects
- Agriculture Department for Environment, Food and Rural Affairs EU budget Farmers Prices Common agricultural policy Rural areas Rural Payments Agency Subsidies
- Link
- View this Proceeding contribution on www.publications.parliament.uk
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