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Agricultural Policy

My hon. Friend makes a valuable point. It is simply a disgrace that the UK Government are letting down Welsh famers and the Welsh-speaking community in such a way. We know that the Government are keen to chop up red tape, but they should congratulate the Welsh Government on agreeing, following an extensive review, to adopt all 74 proposals made in the report compiled by Gareth Williams, the chairman of the Institute of Directors in Wales. Those recommendations include improving the single payment application process, reducing and simplifying farm records, making it easier for farmers to diversify their farm businesses, and reducing the overall number of farm inspections, while adequately addressing risk. On animal health laboratories, the hon. Member for Ceredigion made a good case for keeping the labs in both Ceredigion and Carmarthen. The laboratories in Carmarthen and Aberystwyth are likely to close, but there will still be costs involved in keeping a presence there. The British Veterinary Association says that that will mean the loss of the expertise that plays a critical role in supporting disease control for local veterinary practices and maintaining good disease surveillance. What will the Under-Secretary do about it? Has he had any talks about it? Will he stand up for the laboratories in Wales? On broadband, farmers are now expected to work online, and good internet connections are vital to help rural businesses thrive and to open up new economic opportunities in areas where distance from the market makes it difficult to attract more traditional factories. The Government, however, have substantially reduced the money to be allocated across the UK for the roll-out of next-generation broadband and put back the time scale by some three years. That particularly affects Wales because of the rural nature of the country. Whereas the Government expect the market to deliver high-speed broadband to around two thirds of the UK population, it is misleading to think that that is also the case for Wales. An open market review that was conducted as part of the Welsh Government’s next-generation broadband project indicated that the market was likely to deliver high-speed broadband to only about 50% of the population of Wales. I know that the Welsh Government are looking for additional funding, such as European funding, and I welcome initiatives by communities, BT and others to work together to help to secure high-speed broadband across Wales, but we must not lose sight of the scale of the problem and the significant reductions by the UK Government in broadband funding. My hon. Friend the Member for Ynys Môn made many valuable points, including about microgeneration, the potential for feed-in tariffs for hydro-generation, and the case for a fuel rebate pilot in Wales as well as in Scotland. We know the saga about feed-in tariffs. I thank the Secretary of State for setting up a meeting with the Minister of State, Department of Energy and Climate Change, the hon. Member for Wealden (Charles Hendry), and I want to thank the Under-Secretary for attending that meeting. I am, however, distinctly disappointed that the UK Government are pursuing the case in the Court of Appeal and wasting taxpayers’ money when they should be addressing the issue by sitting down with the people involved in the industry, and doing all that they can to backtrack and save the industry from the utter devastation that their policies are wreaking on it. On farm theft, we are extremely lucky in Wales that we have a low crime rate and a high detection rate. Nevertheless, the significant 20% cuts in policing have to be absorbed somehow, and they will inevitably have a knock-on effect on our rural communities. As a result of rising fuel costs, the theft of heating and vehicle fuel has become more common across Wales. We greatly regret the Government’s decision to make a 20% cut, which cannot be justified and is certainly not something that the public want, and that cut will have a significant impact on our rural as well as our urban communities. There are many other problems affecting our rural communities. We all know that the Government have boasted about their programme of no planned post office closures. Instead, however, we are seeing unplanned post office closures because the Post Office Local model, which pays by commission and does not provide a proper salary for the person running the post office, makes it almost impossible to replace a post office when a postmaster or postmistress retires. Indeed, the Rural Shops Alliance has said that it is simply not a viable model to follow. We will see post office after post office closing in our remoter rural communities. We are also in trouble with pubs. The pub companies review is yet another example of the Government’s extraordinary complacency in the light of real problems that face businesses in our communities. Although a report was produced by the Business, Innovation and Skills Committee in 2010, the Government did nothing. Such was the exasperation at the Government’s failure to respond, many Members acted to secure a Back-Bench debate on the issue last month. Will the Under-Secretary tell us what discussions he has had with ministerial colleagues about the pub companies review and set out the Government’s timetable for an independent body to review self-regulation? Moving on to rural poverty, we know very well that beautiful surroundings and spacious, well-kept gardens can mask the harsh reality of rural poverty. Employment opportunities are often limited, with only low-paid work available locally. Escalating transport costs can mean that it is hardly worth travelling to neighbouring towns for low-paid jobs. Living costs tend to be higher in such areas as local shops cannot offer the same discounts as high turnover supermarkets. With no mains gas, heating-fuel options are often limited and expensive. Changes to tax credits will cut income to some low-income families, simply because they cannot find the additional hours that they will need to work to reach the new qualifying thresholds for tax credits. Changes to housing benefit will have a significant impact on our rural communities. It is not just those unable to find work who claim housing benefit: some 15% of recipients receive it because they are on low income, while 42% of recipients receive it because they are pensioners. Several changes, such as the under-occupancy rules, will hit rural Wales particularly hard. Very often only three-bedroom houses are available, and people have no option but to be in such accommodation although it is ruled that they should perhaps be in one-bedroom accommodation. There is a similar problem with the extension of the shared room rate to the under-35s. Again, there is little option in our rural areas, so people might not have alternative accommodation. They may face either having to use some of their food money to pay their rent, or eviction. Bank lending is of major significance to our farmers. The cost of grain and fertiliser is such that farmers have to spend an awful lot of money that may not be recouped for several months. Farmers raise that problem with me time and again, and it is particularly serious if want to expand our food production, which we have every reason to do, so that we achieve food security and reduce the number of food miles. Given that bank lending is still a major problem for farmers, I ask the Under-Secretary to address it urgently and do something about it. As the Secretary of State said this morning, we cannot separate the issue of farming from the more general economic context. It is important to remember that over the period of this spending review the Government will be taking some £6 billion out of the Welsh economy through tax increases and cuts to allowances. This is cutting too far and too fast, and it will have a severe impact across Wales, including on our rural communities and small rural industries that depend on people’s disposable income. I urge the Under-Secretary to put pressure on the Chancellor to change tack and provide a genuine economic impetus to get the economy going because, otherwise, our farming industry, like everyone else, will suffer the dire consequences of a prolonged recession. Let me turn briefly to one or two comments made in the debate. The hon. Member for Arfon sounded as though he was giving a eulogy for one of the Plaid Cymru leadership candidates. As I have mentioned, my hon. Friend the Member for Ynys Môn, gave a direct explanation of the truth behind the groceries code adjudicator Bill, as well as making the case for feed-in tariffs for a range of renewable energy sources. The hon. Member for Aberconwy made his point about exports very eloquently, and the hon. Member for Brecon and Radnorshire reminded us about the rocketing costs faced by farmers and the long history of scientific research in Wales. Let me conclude by saying that if we do not get the economy right centrally and do not give it a stimulus, our farmers will suffer even more.