Agricultural Research and Development (Hansard, 5 April 1989)

§ Baroness Trumpington
My Lords, on 21st March I wrote to interested organisations attaching lists of the publicly funded research projects planned for 1989/90 in the agriculture and food sectors, together with an indication of the areas of research we expect to be continuing to support from public funds in subsequent years. I deposited a copy of that letter and its annexes in the Library of this House. Following this letter, we intend to hold working discussions with the industry during April and May about future industry funding of near market research.

§ Lord Carter
My Lords, I thank the Minister for that reply, but is she aware that morale in the agricultural research and development sector is now at an all-time low while uncertainty about the future is at an all-time high? I believe that the Minister indicated there would be job losses in the order of 290 posts. Is she aware that the true figure is likely to be in excess of 600 jobs? Those are jobs lost in agricultural research and development, where Britain leads the world. Can she also confirm that the cuts and the closures that have been announced recently are only the first tranche of the £30 million that was identified by Barnes as near market research and development to be funded by the industry? When will we know the full effects of the entire £30 million?

§ Baroness Trumpington
My Lords, of course we are aware of the effect uncertainty has on morale. That is one of the reasons why I have been making announcements. It is worth while clearing up any possible confusion over the number of jobs, which means posts affected. We have made it consistently clear that total job losses this year, 1989–90, are about 290. The breakdown is as follows: 230 reductions in R&D funding, RDS and FCS, and 60 reductions achieving ADAS targets for chargeable advice and increased efficiency, FCS and CVL. Regarding the money aspect, the PES 1988 decision announced last year included a reduction in funding for near market R & D of £5 million in 1989–90 rising to £15 million in 1990–91 and £24 million in 1991–92. In total that is equivalent to £30 million at full economic cost.

§ Lord Gallacher
My Lords, will the noble Baroness agree that the response so far to invitations to individual firms and trade to accept financial responsibility for near market research has been somewhat disappointing? Does she agree that we have now reached a stage where a decision to apply the near market research category to research stations virtually ensures their closure? In view of that situation, and having regard to the talks she is to have with the industry in April and May, will the noble Baroness make it clear to the industry that in the event of the appeal for voluntary support meeting with a very disappointing response from the industry, the Government will not rule out the possibility of continuing essential near market research by means of a levy on trade?

§ Baroness Trumpington
My Lords, the situation regarding near market research has been put fairly and squarely to all sectors of the industry. I accept that there is pressure on farm incomes and that farmers and growers are often very small businesses. However, in most cases near market R&D represents less than one fifth of 1 per cent. of the value of output of the various farming sectors. That is a large sum in total, but not in terms of individual contributions from farmers, providing everybody pays their share. Mechanisms exist in most sectors for collecting levies on a voluntary basis. That is the approach we should welcome.

§ Baroness Lockwood
My Lords, does the Minister agree that some near market research is in the public interest? If that research is not being conducted by the industry, will the Minister assure us that the Government will continue to fund such near market research?

§ Baroness Trumpington
My Lords, we recognise that there are borderline cases. There always are in any categorisation. Perhaps I can make the situation clear with a few illustrations. Work concerning nitrate leaching is in the public good; work to reduce farmers' expenditure on fertiliser is near market research. Animal slaughter work on stunning and animal welfare is public good; work on the influence of slaughter practices on meat quality is near market. There may be elements of near market in work which we shall continue to pay for, but we will not continue to pay for the near market element of it.

§ Lord Mackie of Benshie
My Lords, following on the question of the noble Lord, Lord Gallacher, if Her Majesty's Government believe that research and development is still needed in agriculture, does the Minister not believe that it is the Government's duty to produce a scheme which would cover all the small businesses? In other words, does she agree that there should be not a voluntary scheme but a levy, which only the Government can impose, so that that necessary research can continue?

§ Baroness Trumpington
My Lords, the exercise relating to near market research has been carried out right across government and not only in relation to agriculture. No suggestions have been made for compulsory levies (which I believe is what the noble Lord is suggesting) for other sectors of industry in other departments.

§ Lord Cledwyn of Penrhos
My Lords, can the noble Baroness say by what amount in real terms the Government have reduced the grant towards agricultural research? Will she agree that agricultural research in Britain is regarded throughout the world as the best in any country, and that it would be a tragedy if the quality of research in this country was reduced? Will she tell the House what steps the Government are taking to ensure that at the end of the day their policy of transference of the responsibility to industry will not damage the position irreparably?

§ Baroness Trumpington
My Lords, I am delighted to agree with the noble Lord, Lord Cledwyn, that we have the highest possible standards of research. I can tell him that the PES 1988 also included an increase in funding of £2 million in 1990–91 rising to £5 million in 1991–92 for research in such areas as environmental protection, biotechonolgy and North Sea pollution.

§ Lord Carter
My Lords, in relation to the question of near market research, does the Minister agree with the report on agricultural and food research produced by the Select Committee on Science and Technology of this House which concluded that the list of research projects identified as near market by the Government does not reflect a government intention to fund research work in the public good and therefore should be reassessed? Will she confirm that if industry funding for such work is not forthcoming work will cease on a large proportion of the projects? That amounts to 30 per cent. of the commissioned work in agriculture and 60 per cent. of the commissioned work in horticulture.

§ Baroness Trumpington
My Lords, my department will be making its reply to the Select Committee as soon as possible and I do not wish to pre-empt that reply. In answer to the other part of the noble Lord's question, if industry does not take up near market research, that research will not continue.