HL Deb 28 June 1988 vol 498 cc1288-91

2.40 p.m.

Lord Carter asked Her Majesty's Government:

How much of the cost of agricultural research and development is to be met in future by funding from industry.

The Parliamentary Under-Secretary of State, Ministry of Agriculture, Fisheries and Food (Baroness Trumpington)

My Lords, this is an issue that we are currently considering in the context of the review of the agricultural department's R? programmes. I have recently begun a series of meetings with interested organisations sector by sector so that industry can consider the areas of near market R? that it would be prepared to fund. I really am sorry that at this stage 1 cannot give the noble Lord more information.

Lord Carter

My Lords, I thank the Minister for that reply. However, I find it extremely disappointing and I think she will know why. Does she agree that since the internal review of agricultural research and development was completed some three months ago, there is no reason whatsoever for the Government not to make a statement regarding the amount of industry funding that they expect for agricultural research and development? Is she aware that morale in the R? sector is at an all-time low and that the agricultural and food industries have no idea of the Government's intentions in this field of policy and the amount of funding that they are expected to find?

Baroness Trumpington

My Lords, the report was completed recently and it is now under consideration. It is too early to say what will be the detailed conclusions from the study. I have to say that press reports and union claims are simply speculation. With regard to the lack of confidence, or bad morale, to which the noble Lord referred, nobody likes to be in a state of worry, not knowing what is going on. I think that we all understand that. However, it was not possible to transfer responsibilities for applied work to industry in one go. The noble Lord will realise that priorities and frontiers change. There is a continuing need to ensure the best use of public resources.

The Earl of Halsbury

My Lords, is not this Question somewhat ambiguous in the sense that it fails to identify what is meant by industry? Every farmer in the country is a member of the agricultural industry. How do they finance research? The agricultural machinery manufacturers could run their industrial research association. Is not this Question ambiguous? Will the noble Baroness agree that in the United States they have the United States Bureau of Agriculture, which does research for the industry? It is a proper province of government. One cannot expect farmers to do it.

Baroness Trumpington

My Lords, I do not think that I can answer for the questioner on whether this Question is ambiguous.

Lord Peston

My Lords, perhaps I may ask the noble Baroness to answer the second part of the question. That seems to me to get to the heart of the matter. In an industry as fragmented but as important as agriculture, it is a proper function of government both to see that the research takes place and largely to finance it.

Baroness Trumpington

My Lords, the major role for government lies in supporting the science base and providing platforms for future exploitation by industry. Government responsibility also lies in important areas of public concern such as health, safety, animal welfare and environmental protection.

Lord Walston

My Lords, will the Minister not agree that at the moment the agricultural industry is going through a worrying and relatively unprofitable period? Therefore the need for further research to enable it to adjust to the new circumstances is even greater than it has been in the past. The likelihood of funds being found directly from the industry itself is less than it was several years ago because of the lack of profitability.

Baroness Trumpington

My Lords, in the context of the reviews that are going on across government, if industry does not value the work sufficiently to take on the financing then I fear that less research will he done.

Lord John-Mackie

My Lords, I think the noble Baroness will agree that this is not by any means an ambiguous Question when one considers the supplementary questions that have been asked by those behind me. Is she aware that there has been a long delay? There have been rumours and counter-rumours about the coming report. That has created this situation. Farmers are worried because, as the noble Lord behind me said a few minutes ago, farming is an industry consisting of about 250,000 units. To try to levy that separately for different items of research would be ridiculous. I hope that the research committee will look into that very carefully before it reports.

Baroness Trumpington

My Lords, I apologised at the beginning in my Answer to the original Question that I was not able to give more information. I also announced—I think this is the first time that it has been announced—that I am having these meetings sector by sector.

Lord Carter

My Lords, is the Minister aware that I am surprised that she was not able to answer the question from the noble Earl, Lord Halsbury, because industry funding is the Government's own term? Will she agree that since she is holding these meetings sector by sector—I understand very detailed figures are being given of the minimum and maximum extent of so-called near market research—it is a pity that the information is given to outside organisations and not to Parliament?

Baroness Trumpington

My Lords, I have had only one of these meetings so far. Therefore it would be ambiguous to give figures for one section and not for the others. I remind the noble Lord that total R? spending by all agricultural departments is of the order of £130 million.

Lord Hailsham of Saint Marylebone

My Lords, was not my noble friend on the Cross-Benches, who is normally so accurate, rather oversimplifying by supposing that the agricultural industry is composed solely of farmers? Is there not a big fertiliser industry, a vast farm machinery industry and a great plant breeding industry, all of which are not necessarily composed of farmers?

Baroness Trumpington

My Lords, I am grateful to my noble and learned friend. I might add horticulture as another very important part of agriculture.

Lord Cledwyn of Penrhos

My Lords, first, will the noble Baroness agree that government-funded R? applied to what is understood by everyone to be the agricultural industry, has created what is probably the most efficient agricultural industry in the world since the war? Secondly, will she tell the House, in relation to the review which she has now conducted, that if she and her right honourable friend discover at the end of it that the money will not be available from industry to provide adequate funds for R&D, the Government will make up the difference?

Baroness Trumpington

My Lords, it gives me great pleasure to answer the first part of the question of the noble Lord. Of course I think that our agricultural research and development is second to none. On the second part of his question, it gives me less pleasure to say that I cannot answer it.

Lord Graham of Edmonton

My Lords, can the noble Baroness tell us when she expects to be able to make the announcements which will flow from her consultations?

Baroness Trumpington

My Lords, no.

The Earl of Halsbury

My Lords, did not the noble Lord, Lord Peston, and the noble and learned Lord who sits on my left hit the same nail on the head when the one said that the industry was fragmented into many parts and the other gave us illustration of those many parts?

Baroness Trumpington

My Lords, yes—or maybe no!