Farming and Food (Hansard, 15 October 2001)

§ The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Whitty)
My Lords, the establishment of the Policy Commission on Food and Farming was 343 announced in August. It is due to report to the Prime Minister and the Secretary of State by the end of this year. It has a wide remit. That will allow it to consider issues of food security and self-sufficiency in the context of the wider objectives of economic, environmental and social sustainability within the international and EU framework, together with issues of rural development, food safety and consumer requirements.

§ Baroness Miller of Chilthorne Domer
My Lords, I thank the Minister for his reply. I think the Government still need to emphasise the point that sustainability is about reducing food miles and about food production in harmony with the environment. In particular, Britain's ability to produce food for itself is now severely undermined by the rising age of farmers, a lack of government support for an entrance scheme for young people, such as is being introduced by Southern Ireland, and a lack of investment in processing and research and development, so that in 10 to 15 years there will not be very many bright young people with the energy and experience to produce our food. Does the Minister therefore agree that this is a serious issue?

§ Lord Whitty
My Lords, it is a serious issue that entrants to farming are discouraged by the present situation. I expect the policy commission and the Government to address the raising of the quality of inputs to farming in general, in terms of personnel, marketing skills and research and development, a large part of which the Government do fund on a very substantial basis. Therefore, the modernisation of the industry will be a key factor in the process of the recovery of agriculture.

§ Baroness Gibson of Market Rasen
My Lords, will the Minister tell the House how much additional support has been given to the agricultural sector by the Government since they came to power?

§ Lord Whitty
My Lords, in addition to the support from the common agricultural policy, which is currently running at approximately £3 billion per year, the Government have committed additional expenditure of £1.7 billion to support key aspects of the modernisation of the industry. Of course, as noble Lords will be well aware, the total cost of the foot and mouth disease epidemic will now amount to over £2 billion.

§ Lord Hylton
My Lords, I declare my interest as an organic farmer. Are the Government considering whether diseases such as salmonella in hens, swine fever in pigs, BSE and foot and mouth disease in cattle indicate that British agriculture has followed a path that is too intensive and too cost conscious, and will they by all possible means encourage more natural and holistic methods for the benefit of both farmers and consumers?

§ Lord Whitty
My Lords, the Government have substantially increased support and encouragement 344 for organic farming of all types. However, the incidence of the kind of diseases to which the noble Lord has referred is not in any objective sense directly related to the production methods that are involved. Indeed, such problems are found in all forms of farming production. Nevertheless, the elimination of such diseases will play an important part in ensuring that our farm produce is safe and acceptable to the consumers of this country.

§ Baroness Byford
My Lords, I accept the Minister's response to the previous question about money given to farmers. However, I should like to ask two questions. First, if the Government really believe that we should produce our own food and supply our own basic food needs, why is the word "farming" not used in the title of the new department? Secondly, having regard to the figure of £2,500 average income, released last week, does the Minister accept that it is hardly surprising that farmers are struggling? Thirdly, will he say how he regards Margaret Beckett's desire to get cheaper food on to the shelves, if in fact the farmers cannot make a living at the present time?

§ Lord Whitty
My Lords, as regards farm incomes, while the precise figures relate to a particular sample, it is absolutely clear that there has been a very severe reduction of farm incomes in recent years. Part of the need to address the future of farming and to change much of what happens in farming and the marketing of farm produce relates to ensuring not only an environmental sustainability but also an economic sustainability for those engaged in farming. That requires us to look at the food chain as a whole, which is central to the mission of my new department, to ensure that farming is not isolated from the rest of the world, as it sometimes has been, but is placed within the whole of the food chain and within the overall context of rural and environmental development. That would result in an enhancement of the status of farming in relation to the way in which we can achieve a sustainable countryside and a sustainable food chain.
With regard to price, one of the needs of British farming is to meet international competition. Developments in both the WTO and the CAP are likely to increase that competition, and it is important that in the sectors in which British farming continues to compete we produce value for money and competitive prices. It is also important, of course, that consumers recognise the need to pay, directly or indirectly, for some of the other benefits that farming brings to this country.

Lord Bruce of Donington
My Lords, in his answer two supplementaries ago, the noble Lord referred to amounts paid by the European Union to this country in respect of agriculture. Does he agree that the money is placed, first, at the disposal of the Commission for this service direct from the British taxpayer, so that we are merely getting a return of part of the money that we ourselves have put in?

§ Lord Whitty
My Lords, that is largely true. However, it does not alter the fact that the tax system at both European and British level recycles very substantial amounts of the taxpayers' money into support for farming, though I think the noble Lord and I would agree that the way in which it does it leaves something to be desired. A radical reform of the common agricultural policy must obviously be part of the medium to long-term future for agriculture in this country and world-wide. CAP reform is, therefore, one of our top priorities.

§ Lord Inglewood
My Lords, I declare an interest as a farmer. Does the Minister agree that, everything else being equal, it is desirable that food which is consumed in Britain is produced in Britain?

§ Lord Whitty
My Lords, we live in a world economy and some trade is necessary. In fact, of total food consumption a remarkable amount is produced in Britain; some two-thirds. As regards indigenously grown products, the amount is some 80 per cent, a figure which is not achieved in many other industries or sectors.
Nevertheless, I take the broader points behind the noble Lord's view that the degree of travel and the number of changes to which products are subject between the primary producers and the final market add to the cost and to environmental and economic damage. To that extent, we want to continue to support home produce.

§ The Countess of Mar
My Lords, will the Minister answer the question asked by the noble Baroness, Lady Miller, about bringing young people into farming? I do not believe that he covered it sufficiently. Does he appreciate that today young people do not want to be out seven days a week in all weathers looking after stock at all hours? The Minister spoke about modernising farming but one cannot modernise that system. Does he agree that young people need appreciation for the work they do and in this case financial appreciation?

§ Lord Whitty
My Lords, I agree with the noble Countess in part. It is clear that societal and financial rewards are needed if we are to attract a new generation into or to stay in farming. However, it is also necessary to recognise that the range of tasks which small and medium-sized farmers in particular currently undertake may not be appropriate for the future development of agriculture, world trade and the demands of consumers. That may require sections of agriculture to develop a different degree of professionalism, perhaps specialism, than has been the case for the farmers who tilled their soil and looked after their livestock in previous generations. A cultural change is probably needed in addition to the environmental and economic changes.