Select Committee on Agriculture Minutes of Evidence



Examination of witnesses (Questions 395 - 419)

TUESDAY 3 NOVEMBER

RT HON THE BARONESS YOUNG OF OLD SCONE and MS SUE COLLINS

Chairman

  395. Lady Young, I do apologise for keeping a member of the Other Place waiting, no discourtesy was intended, there was no carefully thought through slight, I can assure you, it was just that we were, as always, finding the evidence of our last witnesses interesting, but I am sure we will find yours equally fascinating. Perhaps I could, just for the record, ask you to introduce yourself and your colleague?
  (Baroness Young of Old Scone) My name is Barbara Young, and I am Chairman of English Nature; and Sue Collins, my colleague here, is the Director of Policy at English Nature. And we in the Other Place, of course, know our place.

  396. A very important place it is, too; we will not get into that debate today though. I think it is fair to characterise your written evidence—and thank you again for the written evidence, which is, as always, appreciated by the Committee—I think you are pessimistic, really, about the environmental benefits that are going to flow from the Agenda 2000 package and from the rural development aspect of that, in particular. And you say, I think I quote you accurately, that the rural development regulation is marginal to the main thrust of the policy proposals, and you say the "pace and depth of the proposed reforms is too conservative and offers little in terms of immediate gains for wildlife and natural features." And I think that theme of excess conservatism running through the Commission's proposals is something we have heard from most of our witnesses, on every aspect of reform. So, in your opinion, how can the maximum possible environmental gain be extracted from the reforms, and, specifically, from the rural development regulation, as currently drafted?
  (Baroness Young of Old Scone) Thank you, Chairman. We think that there are some small avenues of opportunity in the Agenda 2000 and rural development proposals but they are rather tenuous and heavily threatened, and I think the UK Government ought to be pressing to retain those and also to expand on those. The sorts of things we are talking about are the fact that we have now got environmental objectives integrated into the CAP; that we will begin to see reductions in commodity support; environmental conditions being proposed; the potential use of national envelopes for the beef and dairy commodity regimes possibly being able to be used for environmental purposes; and, of course, the rural development regulation, which is outlined as being the second pillar of the CAP. We need to see more, however, than simply defence of some of those proposals, we need to see a real integration of environmental objectives, along with social and economic objectives, in agriculture policy as a whole; we need to see cuts in commodity support being transferred to rural development and to agri-environment schemes, rather than to compensation payments; and we want to see a much faster degression and time limit on compensation payments; and we want to see environment conditions applied to all payments, across all commodity regimes, all ongoing compensation or production payments. And we do want to see a degree of inventiveness and enthusiasm in using the national discretion provided in Agenda 2000, particularly in terms of the national envelopes; they are very large sums of money the national envelopes could release for other purposes. The rural development regulation, particularly; the previous speaker commended the fact that it does provide a clear route for switching funds from commodities into environmental objectives, and we really must make sure that that is retained. We would want to see agri-environment schemes remaining as a compulsory element of regulation. The greening of the Less Favoured Areas will have major benefits for wildlife, particularly in the uplands, though it would need to be associated with conditions on some of the associated headage payments, otherwise it will really be rather fruitless. And we believe that there is work going on, within this country, already, on a variety of schemes that begin to show the way, in terms of how we can actually, in rural development terms, see some of these fairly large sums of money not just delivering for agriculture production but also delivering for the environment, and indeed for social objectives and communities within the rural areas. So there is scope there; some of it needs to be defended very fiercely at European level, some of it needs to be grasped here, in the UK, with enthusiasm.

  397. That is quite an ambitious list of objectives, hopes and fears. I think, a theme that is coming through, I do not know whether you agree with this or not, is that really what we have here, in the rural development regulation, is a first shot at a change in agricultural policy in Europe, and it is probably disappointing a lot of us in this country but that it does offer the opportunity to build, in the future, on foundations that are being laid down at this stage of CAP reform. Is that a view which English Nature would share?
  (Baroness Young of Old Scone) I hope so, providing the things that are there in the proposals remain in the proposals. We are seeing quite a degree of backsliding across Europe on some of the fundamentals in the proposals, and so I think there needs to be considerable vigilance and energy shown by the UK Government in defending those points that I have just pointed out.

  398. So we have got to really work hard even to defend these inadequate proposals, would be your view?
  (Baroness Young of Old Scone) Yes, absolutely.

  399. Are there any short-term benefits, do you think, from the regulation as it stands at present, or is it really only a foundation for the future?
  (Baroness Young of Old Scone) I think there are major benefits in the short term, providing some of the arrangements that we have outlined actually come to pass. But one of the real stumbling blocks, of course, in terms of the rural development regulation, is the amount of funding provided for it, there is no real growth, in fact there may be a slight diminution.

  400. Perhaps I may interrupt your flow, because I know that Mr George wants to ask you precisely about funding, so it may be sensible if we express our concerns and you respond to those; would that be helpful, to go to underfunding?
  (Baroness Young of Old Scone) Okay; fine.

Mr George

  401. On the issue of the level of funding, which is clearly exercising us all, it has dawned on many of us, and certainly Professor Lowe, two weeks ago, confirmed that, in his view, if increased funding for eastward expansion of the EU is stripped out of the Commission's budget projections, there will be, in effect, a budgetary freeze on rural development spending during the period 2000-2006, and it seems unlikely, therefore, that your target of 25 per cent of Guarantee fund expenditure allotted to the regulation will be met. In your opinion, should the Government increase national expenditure on these programmes to at least partly make up for the likely freeze in EU funding, or is there some other way you believe it is possible to make up what most people anticipate is going to be a shortfall in the expectations?
  (Baroness Young of Old Scone) Sue, do you want to deal with the funding issue.
  (Ms Collins) Thank you. Yes, we agree with the analysis of Professor Lowe. The rural development regulation is starved of funds and it is set to decline, the agri-environment element will decline from 6 to 5 per cent of CAP. Currently, in the UK, £3.7 billion is going into CAP, and, of that, £85 million is being spent on agri-environment schemes in the UK. Now we have said in our evidence that, in the longer term, we think there needs to be expenditure of the order of £800 million a year on agri-environmental schemes and delivery of biodiversity, landscape and rural development objectives. Historically, the UK has been a low spender on agri-environment schemes; within the EU, it is tenth out of 15; so the point you make about the responsibility of the UK Government here is very pertinent. The rhetoric of environmental sustainability is strong, and we support that and applaud that; what we would like to see is more delivery of cash to support the very many farmers who do wish to farm more environmentally sensitively, who do wish to change their farming structures and their farming regimes to meet environmental codes of practice, and so on, but who are currently prevented from doing so because all the handouts actually support different sorts of farming, which is often environmentally damaging. So we do believe the long-term aim should be of the order of £800 million to £900 million a year; we think that this could build up progressively from £85 million at the moment; if you added £100 million to £150 million a year. We have very good propositions, which we set out in our previous evidence to you, in Annex 2, on Agenda 2000, about how that could be spent and what the environmental benefits of different sorts of amounts would be. How is it to be funded? We think it is to be funded from redeployment of money, instead of spending huge sums on unconditional compensation for removal of price supports—there is no `public good' argument for that. If you deployed, as a start, 30 per cent of the national envelopes for beef and dairy you would have available £210 million per annum in the UK for environmental purposes, over and above the £85 million spent already. So we believe that should be done.

  402. You also recommend that at least 66 per cent of funds dispersed under the regulation should be spent on agri-environment measures, at least at one point in the document, and, in another, I think paragraph 5.1, you say: "we recommend that at least 50% of the funds under this regulation are committed to agri-environment measures." Is this simply an opening gambit, are we to take that kind of of pitching the bid seriously?
  (Ms Collins) We think that the rural development regulation potentially provides a model for the restructuring of the whole of the CAP, and in that context we think that two-thirds of whatever goes into rural development support could go into funding agri-environmental measures, leaving a very considerable sum for some of the other structural and other aids that you talked to the CLA about. Now the precise level of those, and the social and economic objectives, are not well specified and articulated at the moment. The environmental objectives are extremely well articulated in the UK and they relate to international and national obligations, and we have costed those and we know that you could deliver a lot of benefit for, say, £350 million. I do not have a good feel for precisely how much social benefit could be delivered with, say, another £100 million of socially-directed funding, but we think two-thirds, one-third would be a good balance.
  (Baroness Young of Old Scone) One of the things we have got to point out is that the agri-environment spend is currently 50 per cent of all of the schemes which would go into the future rural development regulation, so we are not asking for a lot more; it currently spends 50 per cent of the funds, what we are saying is we want to up that a bit. Two other points. One is, agri-environment schemes, of course, also have social and economic benefits, they employ people, they maintain rural communities, they create economic wealth for farmers and for support industries, so that though agri-environment schemes are primarily pointed at the environment they actually deliver social and economic benefits as well. We should also say, of course, that part of the problem about how much should agri-environment get and how much should other forms of rural development get is complicated by the fact that this is a pifflingly small sum; if it were not such a pifflingly small sum we would not want to be scrapping about it. If the sum was increased it would become much easier to see how you were getting the sorts of objectives that Sue was describing, both the environmental and the social, out of the whole piece of the rural development funding.

  403. Would it not be better for English Nature to be arguing that we should be integrating environmental goals in rural development project eligibility, rather than necessarily saying "we want so much for the environment and you can have what's left for rural and social development", as if that is somehow separate and has no environmental benefits at all?
  (Baroness Young of Old Scone) What we have attempted to do, as Sue pointed out, was to try to get a handle on the total cost of delivering the sorts of environmental objectives that are required for this country to deliver in both the uplands and the lowlands in rural areas, and the total cost of that is something around £800 million, which is the 25 per cent that we are talking about. We absolutely agree with you that rural development schemes need to be an integrated blend of environmental, social and economic outcomes, because, in fact, if you look at some of the schemes that currently exist, and some of the quite innovative pilots that are being developed, you can see immediately that it is quite difficult to separate them apart. The agri-environment, per se, is delivering jobs, and jobs are delivering benefits for the maintenance of communities, and, likewise, some of the quite innovative pilots that are being developed at the moment, in terms of the upland pilots in the Forest of Bowland and in Bodmin and also in the Countryside Commission's Land Management Initiative, both of those are beginning to show that it is actually impossible to separate out environmental, social and economic objectives. And that we need to be very explicit in the development of these schemes as to what the precise objectives on each of the three counts are, but they are delivered by one chap, or one set of people, operating in the rural community.

  404. Right; so there is agreement on that, but could I ask you, the corollary. You heard, I think, what the CLA said, towards the end of their evidence, that maybe agri-environmental measures could, or should, stand alone. How do you respond to that, as the negotiating position of another organisation?
  (Baroness Young of Old Scone) I must confess, I would worry a bit about that. I think we have got to be quite clear about the difficult times that farmers particularly are going through at the moment, and rural communities generally. And we would be loath to see what we would kind of describe as park-keepers in rural parts of this country, we need to see people managing the land for production still; sheep may be conservation tools, but you eat them, at the end of the day. And so we do, I think, need to move from where we are at the moment, which is very much a focus on production from agriculture, into blending in the social and environmental objectives with that, so that land managers are seen as delivering a rounded package of public goods for the public support for these very big sums of money that we are seeking, for public support for the uplands and the lowlands of this country. I do not know, Sue, whether you want to add to that.
  (Ms Collins) Yes. Could I add two things. We are engaged in innovative projects with, for instance, Cumbria Farm Link; they bring together both aspects; they do an environmental audit and a business audit on the farm and then they come out with proposals that work for the farm and for the environment and for the business, and that kind of integrated approach is one of the ways forward we see. The reason why we have been very specific about the environmental objectives is because we think that, as a public body, asking for public money, we have to be clear about the outcomes that we are seeking, and it does not mean that we do not believe and share interest in other objectives that go alongside. We are looking for win/win solutions, particularly in the uplands, where often the environmental quality is integral to the farming system and so you can deliver an environmental benefit and a rural business. In the lowlands, often, the semi-natural land is peripheral to the farm business, and there it may be that the agri-environment scheme has to stand alone and not support the farm, per se; one can see it as a sort of diversification of farming, in a sense, in the lowlands, because it cannot be integrated with, say, arable, particularly, for instance, if it is a bit of wet grassland.

Ms Keeble

  405. Bearing in mind the comments that the County Landowners made previously, are you confident that with that big increase in funding—it will be about a five-fold increase in the funding for agri-environment measures—you would have the take-up for it?
  (Baroness Young of Old Scone) I think it is interesting to see what is happening at the moment, in terms of take-up of agri-environment measures, because there is huge pressure on the existing funds. Countryside Stewardship is about 50 per cent oversubscribed; the recent arable pilot, which is aimed at trying to bring environmental objectives into intensive arable farming by extensifying gently, and I stress the word gently, was very, very oversubscribed and is only on a pilot basis in three areas of the country; and the upland pilot is only a pilot at the moment in two places in the country. And you can see there that there is considerable scope for using funds in similar ways countrywide. So I do not really have concerns. I think there are concerns about getting good schemes, that are properly evaluated and do deliver all the environmental and social and economic objectives. And so it is going to be a tough task to move as quickly up that path of ascending towards whatever figure eventually of millions is chosen, but I do not think it is impossible, and, certainly, at the moment, the option is not there, we are just seeing no possibility of further growth in these schemes, and continuing decline in wildlife.

  Ms Keeble: So the quantity would be there but the quality might be questionable?

Chairman

  406. I think there was disagreement there, from the witnesses.
  (Ms Collins) No, I think what we would say is that you would build to this figure, over, say, a decade, and we think there is untapped demand that could be met next year, so you could double £85m next year, if you get a move on and start marketing it properly, if you changed the support so that you were supporting extensive production in the uplands, which is not supported at the moment, the organic farms, and so on. There is lots of demand there.

Ms Keeble

  407. You also mention, and I completely agree with you, that public attitudes towards price support are not particularly good. What do you think the public attitudes would be towards this very large increase in spend on agri-environment measures?
  (Baroness Young of Old Scone) I think this is the only salvation, actually, for being able to continue to support rural communities in the way that I think many of us want to; rural communities are absolutely vital for conservation in the environment. At the moment, I do not blame the public for getting pretty edgy about supporting rural communities with huge slabs of money, because the policy that carries those huge slabs of money is broken in all three aspects, it is neither good for the environment, in fact it is positively bad for the environment, it is not good for local communities and it is not actually producing a viable agricultural industry either, so it is broken on all three counts.

  Chairman: I think we are getting into the area that Mr Todd wants to explore with you next; it may be that Ms Keeble wants to come back after that, but we will perhaps move on to Mr Todd.

Mr Todd

  408. Your evidence might be characterised as setting out a vision of a nation of bird-watchers, badger-lovers and people observing well-kept hedgerows, rather than a sustainable agricultural economy in this country, which can compete on the world stage. How do you balance those two goals; if, indeed, you do?
  (Baroness Young of Old Scone) I think that we need to take account of what, as a nation, we actually want to deliver, and we do want to deliver competitive agriculture, but we do not want to deliver competitive agriculture at the price of the environment, which is what is happening at the moment, or at the price of rural communities, which is what is happening at the moment. So we want an integrated rural development policy that actually delivers on all three sets of objectives. I would not, I think, be totally out of line with a large number of commentators if I were to recognise that in many of the lowland areas of this country we will continue to see comparatively intensive agriculture that is well equipped to compete on a world stage. There are many parts, however, of the rural economy where, quite frankly, we are not going to compete, and we never will compete, and where, quite frankly, the environmental and social objectives are more important than the economic ones. So I think there will be a range across the countryside.

  409. So your goals are segmented according to the environment in which they are set, if you like, that you would recognise, say, in East Anglia, that we should be building competitive arable farming to compete on the world stage, and that environmental goals may well have some role, and I think you touched on them perhaps being at the periphery of the farm business. And yet in more upland areas you would be talking about that being much more the core of what is being done, that you are keeping beasts because they are nice to look at, they cut the grass very well, they contribute in a variety of other ways towards biodiversity, and we eat them in the end but that is not the main goal of why they are there?
  (Baroness Young of Old Scone) I would typify it less extremely than you have put it. There is no doubt that we will always see more intensive agriculture in East Anglia than we will in Cumbria. However, I would not want to see Cumbria typified as a place which is a kind of zoo for nice animals that people can go and look at in the hills, because farmers in Cumbria will still be farming for farm produce; much of it can be value-added farm produce, particularly because it is extensively produced, it may well have a very local nature to it and can therefore be produced at premium price and marketed on the basis of the local values of that particular area, which include the local wildlife value. So let us not write off Cumbria as a kind of theme park. In East Anglia, we cannot afford to allow intensive agriculture to be as uniquely wildlife-unfriendly as it is, we have got to do more about bringing back some of the common, lowland, farm, arable birds, invertebrates and plants into the arable areas. Now the arable pilot is an attempt to see whether you can combine intensive arable farming with some wildlife benefits within the intensive arable farm, because at the moment there are two impacts of intensive arable farming that are undesirable and cannot continue: one is the one I have described, an almost total absence of a diversity of lowland farmland species; and the other, of course, is the whole question of pollution from intensive use of the land and the impact on soil. So we have got some quite strong environmental problems that we have got to solve within the arable areas as well, so I would not typify the two extremes as you put them.

  410. How do you solve those problems, in the context of the removal of production-related subsidies in these particular sectors, in which those businesses will have to stand on their own feet, against industries in other parts of the world which have no such obligations or expectations placed on them?
  (Ms Collins) Could I say that I think for industrialised agriculture then we need standards, decent standards, to be delivered.

  411. At a global level?
  (Ms Collins) I think, probably at a European level, I would introduce those standards. If you are asking for global ones then you are asking for not doing it for 30 years. So I think that is overambitious, shall we say. I think the UK itself could deliver a higher regulatory floor for industrialised agriculture, and that would tackle air, water and soil quality, it would not allow pollution of water courses from run-off, and so on. So the areas of East Anglia need better regulation, if you are not going to pay money for them to—if you are not going to support them, they definitely need to be regulated.

  412. Would you, therefore, envisage that those landowners who had received support for that additional requirement, which would not be placed on their international competitors, because that is the legitimate complaint of farmers—
  (Ms Collins) There are many signatories to the Rio Convention on Sustainable Development, and so on, in which it is implicit that decent environmental standards will become the norm across the world. If it imposes extra costs in, say, adapting the farm's handling of slurry, or something, so that they can meet the conditions, then that is an area for `public good' investment, I think. The question of whether they should be paid any money for arable production is a matter for public debate.
  (Baroness Young of Old Scone) Could I come in. I am a bit more of a cynic than Sue is, actually, about international competition. It seems to me that this myth of international level playing-fields is a myth; there are huge differences in commercial conditions across the world, and trying to level the playing-field for all of them is in search of nirvana, which we will never reach. We have got to recognise there will always be other countries which, for a variety of reasons, have got a bit of a competitive edge in a particular direction, whereas we may have in another. I do not see any objection at all, and the arable pilot is specifically aimed at this, to paying arable farmers as part of rural development, if, in fact, they are delivering more than the basic minimum of environmental outcome. It is a product, the same as wheat and barley and sugar-beet; if we want it, as a nation, we should be prepared to pay for it, but that does not mean to pay for minimum environmental standards. Too often, at the moment, arable areas are not actually achieving what could be regarded as good levels of environmental practice that we need to see go on right across arable farming. But if there are either habitat recreation or additional habitat management tasks that we would want arable farmers to do, and the arable pilot will demonstrate whether it is possible to get some wildlife gain out of intensive arable farming, and I am sure, I am, personally, on the experience of Set Aside, very confident that you can, I think we should not be turning our back on looking to pay farmers for delivering this public good. And that is where our £800 million has a very large slab in it for buying environmental and wildlife benefit from the arable areas.

  413. Two very narrow questions. One is, you refer to the need for a "biodiversity imperative" within rural development policy; what does that mean?
  (Baroness Young of Old Scone) It is strange you should ask that, because when I read it I thought to myself "This is a very good phrase, I wonder what it means." The biodiversity imperative is the one that I think I have already described, and that is, biodiversity in our farmed countryside is in serious trouble, that is the biodiversity imperative; we cannot continue to go along seeing our wildlife in the farmed countryside diminishing ever rapidly, which it certainly is.

  414. So, imperative means—
  (Baroness Young of Old Scone) It is a driver.

  415. It is a driver, backed up by targets?
  (Baroness Young of Old Scone) Yes.
  (Ms Collins) Yes.

  416. Specific targets for what we are supposed to be achieving. And the second thing is, there is obviously an opportunity we have characterised, well, we have not characterised Cumbria as the theme park, you have quite reasonably said that that is not your goal, but the encouragement of tourism clearly is part of rural development, which can have a major impact on biodiversity. Have you got models of how tourism can be enhanced within a nature-sensitive context, which you would support?
  (Baroness Young of Old Scone) Just before we leave the biodiversity imperative, one of the models, generally, in terms of rural development, that we have offered up, and we were intrigued to hear that the CLA were going to offer you theirs later, because we have here one that we prepared previously, in the Annex to our evidence, and we know that it is very similar to the ideas that the CLA are currently developing, but it, basically, responds to the biodiversity imperative by saying everybody should have a minimum level of standards, which they are not paid for, and then an ascending pyramid of payments, delivering not only environmental objectives but also social and economic objectives as well, in an integrated way. So the response to the biodiversity imperative has got to be an integrated rural development set of schemes, rather than just simply a biodiversity set of schemes. On tourism, there are lots of examples, I think, of sympathetic tourism in the countryside already, but what needs to be done is this integration right from the start. In designing diversification within our rural areas, we need to be sure that all diversified activities, not just tourism but also any other form of non-farming-related activity, and some farming-related activities, are properly environmentally appraised so that we can be sure that we are doing this genuine job of integration, not only delivering for social and economic objectives, in the case of tourism, but also making sure that they are environmentally sound as well. I think green tourism is a major opportunity, quite frankly. If you look at our National Parks, they are very much in demand. I am not convinced that the great British public, just moving on to the access issues, necessarily wants to go to the brightest and best places in this country, I think there is lots of very standard, pretty uninspiring agricultural land on the periphery of towns which could, if properly managed, provide a very useful source of access for the public, and also of useful and interesting diversification for farm businesses.
  (Ms Collins) Could I just make two points, in relation to your first characterisation of "it's kind of nice for the birds and the bees"; it does go rather deeper than that, in that the environment has functions that are really central to the health of the planet and to the health of the nation. And when we are very specific about biodiversity objectives they are underpinned by this view about functionality; so it is not just nice to do, to look after the wildlife, they are indicators of a healthy environment.

Chairman

  417. It is my intention to run this session until about 12.15, as we began late with you; but can I just push you a little bit. I am just trying to get a feel, you seem to be dismissing almost entirely the rural development issue, the economic and social issues, and I entirely agree with you about sustainable management, it being so important in these issues, but you seem to be almost sidelining the social, the economic, the housing issues, the employment issues?
  (Baroness Young of Old Scone) We simply have not commented on them. We are an agency charged with the conservation of the biodiversity of England, and so we have taken particularly a slant that looks at how you can achieve the environmental objectives. We do not dismiss the diversification and the other things that need to cluster round that, we are very supportive; indeed, that was one of the reasons why we pointed out that many of the agri-environment schemes actually do deliver on the other objectives as well, though we need to do far more of that.

  418. So when you say that "rural prosperity depends on sustainable management of...the...biodiversity of regions and localities", that is a necessary but not a sufficient condition for rural prosperity; is that what you are saying?
  (Baroness Young of Old Scone) Absolutely, yes; the point that Sue was making.
  (Ms Collins) Yes. The alleviation of rural poverty is clearly a social objective, but you do not look to English Nature to put forward a whole list of social objectives; we could speculate, like many others, on what those should be, but we look to the Rural Development Commission and others, and we work with them, and we are very keen to work in partnership.

  Chairman: That is a very helpful clarification. Thank you.

Mr George

  419. You mentioned that there are other landscapes, other than the Cumbrias, the not necessarily inspiring, I think you were saying, landscapes on the edges of towns, which perhaps could be looked at in terms of the contribution they can make to biodiversity and recreation and access. I would like to start really asking a question about rural development plans and the experience of the Bodmin Moor and Bowland, which I hope would not come in to the definition of uninspiring landscapes, but the experience gained from those recent pilot studies, and I wonder if you could, in the context, describe to us how these schemes have come about, and particularly what their successes and failures have been so far?
  (Baroness Young of Old Scone) Could I talk, just a tiny bit, about the framework within which this all happens, because I think it is absolutely vital that there is—


 
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