§ 6. Paul Flynn (Newport, West)What the contribution of the farming industry was as a proportion of English gross domestic product in the latest year for which figures are available; and what the average figure is for the last five years. [4673]
§ The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Mr. Elliot Morley)The contribution of the farming industry as a proportion of English gross domestic product in 2000 was £5 billion—0.7 per cent. The average contribution during the years 1996 to 2000 was 1 per cent.
§ Paul FlynnWhen subsidies are taken into account, the total contribution made by agriculture in the four years 1293 before foot and mouth was less than 0.5 per cent., compared with manufacturing industry which contributes 20 per cent. We know that the contribution is now less than zero. We all feel sympathy with the farming industry as a result of the suffering caused by foot and mouth, but is it reasonable to expect manufacturing industry, particularly the steel industry which is facing a new crisis, to contribute to and subsidise just one industry alone? Is not the answer to listen to what Lord Haskins is saying today and for farming to be made more entrepreneurial in future, rather than continue with the mistake that we have made in farming since the war where the industry has been subsidy sensitive but market blind?
§ Mr. MorleyMy noble Friend Lord Haskins is a farmer and business man. His assessment is important and will be listened to carefully by the entire farming industry. My right hon. Friend the Secretary of State has made it clear that the future for farmers is to become closer to the market and more consumer and customer oriented. The present level of subsidies to agriculture is not sustainable in the long term—it is not good for the consumer or the environment, and it has not been good for farmers as it has distorted the market. The Food and Farming Commission, which the Government have set up, will provide important pointers for the future of farming. There is no doubt that changes need to be made: we live in a changing and dynamic society, and agriculture is part of that.
§ Mr. David Curry (Skipton and Ripon)The Minister is aware of the contribution made by the sheep industry to gross domestic product, especially in the uplands. In the light of that, can he explain the total confusion that has arisen over the research programme into BSE in sheep? Is he aware that the Spongiform Encephalopathy Advisory Committee has apparently cancelled the meeting at which that was to be discussed? At 10.30 last night, DEFRA apparently put out a press release about it.
On the radio news this morning, it was said that the samples that were being examined to find out whether there was BSE in sheep were actually samples from cows. A state of total confusion has descended, and the matter is of colossal importance to the entire agricultural industry. Can the Minister tell us what is happening? If he cannot tell us now, will he come back to the House as soon as possible and be specific about it?
§ Mr. MorleyIn all matters relating to BSE and animal health, the Government have been open and transparent. For that reason, the Government and our Department commissioned DNA testing in relation to the long-term experiment being carried out by Professor Bostock and the Institute for Animal Health. There were some concerns that there may be contamination by bovine brain material in the experiment. The step taken was appropriate and prudent, in order to control the quality of the research.
As it happened, the results of the DNA testing, which did not come out until this week, demonstrated that there was serious contamination of the sample, and that in fact it was predominantly bovine brain material. There will have to be a full audit trail and evaluation of the 1294 experiment. It is therefore not surprising that SEAC has cancelled the meeting scheduled for Friday until we can evaluate the situation carefully.
§ Paddy Tipping (Sherwood)But is it not the case that farming produces a wider economic contribution to the rural economy, in that it provides a landscape and an environment that people wish to visit? Given that, is it not rather strange that there are those who argue against compensation for farming instead of tourism, and against greater investment for rural rather than urban areas? Those things are interdependent. Should not that be the policy that we support?
§ Mr. MorleyAll independent studies and our recent rural White Paper demonstrate the clear interdependence between urban and rural areas, and between agriculture and other rural businesses, including tourism and the leisure sector. Agriculture is the country's biggest land user, so it has a key role not only in food production, which is its primary objective, but landscape, habitat and biodiversity measures. For those reasons, the Government are committed to shifting the current damaging and market-distorting subsidies in the common agricultural policy from production support to the second pillar of the common agricultural policy, the rural development structure, so that we can develop all those aspects in a holistic and integrated way that will benefit agriculture, the rural economy and the economy generally.
§ David Burnside (South Antrim)Does the Minister share my concern, which is also the concern of the entire farming community, that in the departmental strategic review of policy, farming was listed as only the fifth priority? Is it not about time that the Government started to build confidence by restoring agriculture to the departmental title of the Department, and followed that up with more constructive policies for the farming community?
§ Mr. MorleyI think that it is a serious mistake to try to apply a league table of priorities to Departments' aims and objectives. DEFRA was formed, quite rightly, to bring together a range of environmental, land-use objectives in an integrated way. I believe that that is the view of the majority in the House and certainly the majority of people outside the House, as well as in the agricultural sector. In that respect, those are all important issues. DEFRA covers not just agriculture but environmental issues, land use, forestry, floods and environmental control. It is a strength of the Department that it does so, and we should not try to prioritise the list or draw up league tables.
§ Mr. Peter Ainsworth (East Surrey)The Minister talks about transparency; the only thing that is transparent is the muddle and confusion that the Government have brought to this whole area of their competence. Is he aware that farmers are saying that the Government do not understand or care; that it is no good telling farmers that they must change without telling them how; that they need not lectures from Ministers but clarity and leadership; and that, with earnings dawn to a pathetic £2,500 a year they cannot invest in the future? How can farmers be entrepreneurs when they have no funds to invest? Does the Minister accept that if there is no viable future for 1295 farming, it will not just be the rural economy that suffers, but the whole economy, our environment and millions of people and businesses, whether they live in the countryside or the towns?
§ Mr. MorleyOf course farming has suffered a decline in income, but that has gone on for years. It is not a recent issue. Farming has been going through structural changes for a very long time—since 1945—and those changes will continue. Our job is to try to work in partnership with the industry to manage those changes and assist farmers. We contribute some £ billion a year to agriculture, which is a high level of subsidy.
The hon. Gentleman talks about understanding. In my frequent meetings with farmers and land-use managers, they say that they very much appreciate the direction that the Government are taking. Those who use the word "understanding" often measure it by the size of the cheque that they are asking for.
§ Mr. AinsworthThe Minister's reply reveals the extraordinary complacency that the Government have shown throughout their handling of foot and mouth and towards the countryside in general. I agree that there are no quick fixes, but the Government could make a start today by announcing that they will claim the £57 million compensation available under EU rules—but for just another 13 days. Does the Minister accept that failure to do so will simply confirm the widely held view that the Government have turned their back on rural Britain?
§ Mr. MorleyThis demonstrates the bare-faced cheek and hypocrisy of the Opposition. The Conservative party opposed the introduction of agrimonetary compensation measures within the Council of Ministers and has been arguing for cuts in public expenditure, yet demands increases in public spending. The two do not match because there is no logic. The hon. Gentleman's question is an example of his party's empty promises and rhetoric on countryside issues.