Select Committee on Agriculture Fourth Special Report


FOURTH SPECIAL REPORT

The Agriculture Committee has agreed to the following Report:—

THE COMMITTEE'S WORK, SESSION 1998-99

Introduction

1. This is the second report on the activities of the Agriculture Committee in the current Parliament. Like its predecessor, it is intended both to provide an overall picture of our work in Session 1998-99 and to ensure that pressure is maintained on the Government to address areas of difficulty in subjects we have examined. The first of these objectives is met by the Annex to the Report which summarises Committee meetings and Reports, including statistics on Members' attendance and outlines of visit programmes. Similarly, the Appendix to the Report is designed to meet our second objective in the form of a substantial memorandum from the Ministry of Agriculture, Fisheries and Food, giving details of action taken by the Government in relation to each recommendation made by the Committee in Session 1998-99 which the Government had fully or partially accepted in its original response to the Committee. By agreement, MAFF's memorandum contains an update of action taken in connection with our Sixth Report of Session 1997-98 on Flood and Coastal Defence, which was published too late to be included in last year's memorandum, but does not refer to two Reports from Session 1998-99: the Seventh Report on the Outcome of the CAP Reform Negotiations which made no recommendations for Government action and the Ninth Report on MAFF/Intervention Board Annual Report 1999, which was published at the very end of the Session. We are grateful to MAFF for the work which has gone into producing this document. In the remainder of our Report, we describe the range of inquiries undertaken in Session 1998-99, highlight common observations and conclusions and finally draw attention to certain aspects of our experience relating to our activities in the relevant Session.

The inquiries

2. In the course of Session 1998-99, as in any other, we undertook inquiries of varying length and complexity. These can be divided into five broad categories: in-depth examinations of a particular sector; short, sharp responses to urgent issues; slightly longer inquiries into matters of particular importance; one-off sessions on key policy developments; and regular or routine tasks which occur every Session. Taking these in order of magnitude, it is self-evident that the number of inquiries of the first type which can be properly addressed in any one Session is strictly limited; in fact we held just one such investigation in 1998-99. This was our inquiry into sea fishing which focussed on the key issues of research, management, regulation and enforcement within the UK fishing industry. The timetable for this work stretched from July 1998 (when we announced our original terms of reference) to August 1999 (when the Report was published), with oral evidence taken over a period of some eight months. The programme included two formal sessions away from Westminster, in Penzance and Peterhead. In addition we made other informal visits within the UK to Newlyn, Grimsby, Aberdeen, and Shetland and also abroad to Spain, Iceland and the European Commission in Brussels for discussions with officials, politicians, fishermen and others directly involved in the industry. The Report which emerged from this investigation made many detailed recommendations, the majority of which were well received by the Government. Some issues remain to be resolved, for example, our proposals for consideration of the individual transferable quotas system. There have also been developments since which may have influenced our conclusions were the Report to be written now. One such would be the latest quota allocations agreed in Brussels which applied the precautionary approach to an unexpected degree. The fact is that the crisis in the catchable stocks has got worse, justifying the need for the sort of radical options examined in the Report. However, we stand by our overall conclusion that there is a very bright future for the UK sea fishing industry and that the Government has to play its part in helping to bring this about. As an aside, we are proud to record that our Report on sea fishing was the first select committee report to be debated in Westminster Hall in December 1999.

3. The second category of inquiries is exemplified by our Third Report of last Session on the UK pig industry. In contrast to the sea fishing inquiry which occupied the whole Session, evidence for this emergency inquiry was gathered over a very short time-frame during which we interviewed eight sets of witnesses within a fortnight in December 1998. This course of action was instigated by our awareness of the deep crisis then affecting the pig industry in the UK. We believed that it was incumbent upon us to investigate the causes of this downturn in the pig market and to explore possible means of mitigating its effects. We felt so strongly about this issue that we returned to it in our Fourth Report, criticising the Government's apparent lack of consideration of our recommendations and demanding a better response to the concerns of UK pig farmers. One year on, we welcome with relief the signs of a slight upturn in the fortunes of an industry reduced from 800,000 breeding sows in December 1997 to 650,000 now. The crisis is far from over and we are pleased that the Government has recently acted to offer some assistance to the pig sector.

4. The inquiry into the UK pig industry interrupted our transition from one investigation which fell into the third category of inquiries to another. Both our Second and Fifth Reports involved a limited number of evidence sessions into an issue of major importance which required careful consideration. Most of the work for the inquiry into CAP Reform: Rural Development was undertaken in Session 1997-98. Reflecting our ongoing interest in the Agenda 2000 reforms, it covered the options and potential difficulties of the then draft rural development regulation as published by the European Commission and made various recommendations for the approach to be taken by the UK Government, both in negotiating the final text and in its subsequent implementation in the UK. The regulation was agreed at European level in March 1999 and has subsequently been adopted by the Government as the cornerstone of its rural policy, thereby justifying the attention we paid to the proposals. Prior to our receipt of the update contained in the Appendix to this Special Report, we took oral evidence from the Minister of Agriculture, Fisheries and Foods on the Rural Development Plan for England in February 2000, in order to demonstrate our continuing interest in this important issue.[2]

5. That same month we initiated a Commons debate on our Fifth Report, Badgers and Bovine Tuberculosis. This dealt with a highly controversial issue and one for which we recognise the depth of feeling and degree of sensitivity on all sides of the argument. In the end, having examined all available evidence, we backed the Government's policy of proceeding with the five-stage programme proposed by Professor Sir John Krebs to address the rising incidence of bovine tuberculosis in cattle and its serious economic and animal health implications. We concluded that sound science was the only basis on which the disease could be controlled and that the Krebs approach offered the best opportunity to establish this scientific knowledge, but we also made a series of recommendations aimed at widening the scope of the research undertaken by MAFF, particularly to include husbandry and possible transmission routes other than badgers, and to take account of the concerns expressed by many about the conduct of the field trial. At the time of writing, we are disappointed that the trial has fallen so far behind schedule, thereby increasing pressure for action in areas outside those identified for inclusion in the experiment. Nevertheless, we maintain our support for the trial.

6. These inquiries naturally occupied much of our time over the Session but as a general rule we aim to retain sufficient flexibility in our programme to enable us to hold one-off sessions on issues of importance. This fourth category of inquiry allows us to hold discussions with Ministers and explore major statements or developments in a way that is not possible on the floor of the House or through other means. During the course of last Session, there were two occasions when we took such evidence, first from Ministers of State at the Department of the Environment, Transport and the Regions and MAFF on genetically modified organisms, and secondly from the Minister of Agriculture, Fisheries and Food on the outcome of the CAP reform negotiations. In the former case, we were aware of the number of select committees looking at this issue but we also recognised our own responsibility to monitor the work of MAFF in such a controversial area. The short Report which resulted from this session looked forward to future, sharply focussed inquiries by ourselves into various aspects of the GMO issue, an undertaking we have met this Session in our Report on the segregation of GM foods. In the latter case, CAP reform was quite clearly one of the most central developments of the agricultural year. We concluded then that the modest reform package which emerged from the Berlin summit in March 1999 represented a lost opportunity and hindsight has not led us to change this judgement, a view with which we suspect the UK Agriculture Minister and the European Commission would have much sympathy.

7. The fifth and final category of inquiries covers regular tasks which the Committee performs in order to fulfil our remit to examine the policy, administration and expenditure of the Ministry and its related bodies. This refers largely to our yearly meetings with the Permanent Secretary of MAFF and the Chief Executive of the Intervention Board to consider the MAFF/IB Annual Report. By chance, in Session 1998-99 we published our conclusions on two such reports, that for 1998 (including changes as a result of the Comprehensive Spending Review) and that for 1999. On both occasions, we concentrated on the main expenditure plans, on the outturns for the previous year and on programmes of particular interest to us within the mass of MAFF's activities. These evidence sessions with the administrative heads of MAFF and the Intervention Board are in some ways the most important that we hold throughout the year as they allow us to hold the Government directly to account for the way in which it spends the money voted to it by Parliament. Last year we were highly critical of the format of the Annual Report produced by MAFF which made our task more difficult than it needed to be. We are pleased that the Ministry has taken on some of our practical comments as to the size and cost of the Annual Report in producing the cheaper, more user-friendly edition issued this year.

Regular conclusions

8. In the Reports outlined above, we examined very diverse subjects and made many recommendations which were highly specific in nature. There are several common themes which emerged. The first is the overarching need for the Government to consider the competitive position of any industry when introducing new regulations and charges. This involves awareness of the requirements that proposed measures place on individual farmers, fishermen and businesses, including taking into account the existing burden of regulation and how new obligations add or conflict with it. We have persistently recommended that the Government should conduct audits of all burdens pressing on particular sectors in order that all proposals for new measures can be placed in context and that unnecessary obligations can be removed. Another aspect of this is the need to demonstrate awareness of the position of competitor industries in other countries, particularly other EU Member States, including the costs imposed on them by regulation. We have repeatedly expressed our belief that it is the responsibility of the Government, through its diplomatic posts, to gather information on how other countries are implementing EU legislation and on the general regulatory climate within which other industries operate. The intelligence gathered in such a fashion should routinely be fed into the decision-making process on the implementation of measures within the UK and it should be a priority for Government to make sure that the UK industry does not face a tougher or more expensive regulatory burden than that faced by its competitors within the EU.

9. Second, we have frequently urged the Government to adopt a more open approach, involving the industry more in consultation and in management. For example, in the fishing industry we see many opportunities for devolving responsibility for regulation to Producer Organisations and for involving the industry more in directing science and the development of policy. By working with the industry in this way, the Government is more likely to gain acceptance of the necessity of regulation and to find more practical means of enforcing it. This concept of "ownership" and stakeholder involvement is a theme which runs throughout our Reports.

10. Third, whilst our Reports are mainly addressed to the Government, we also recognise the need for industry itself to become more responsive to the market by producing the food that customers want to buy. There is a clear role for trade organisations such as the Meat and Livestock Commission and the Sea Fish Industry Authority to assist in the development and implementation of cross-industry strategies to bring together all elements of the chain to improve marketing and customer awareness. However, it is up to individual farmers and fishermen to respond to these opportunities and challenges. Whilst neither we nor the Government can force them to do so, we will continue to put forward suggestions for encouraging the development of marketing skills and co-operation between producers which we believe are essential to the future success of the food, farming and fishing industries within the UK.

Relations with MAFF

11. The work of the Committee inevitably involves more contact with MAFF than with any other part of Government or outside party. It is rare for MAFF not to be invited to give oral evidence during an inquiry and even rarer for us not to request a written submission. On the whole, we have been satisfied with the response of the Ministry to our various demands. Witnesses have generally been available at mutually convenient dates and most information has been forthcoming. We appreciate the pressures on ministerial diaries but emphasise that if inquiries are to comment usefully on current concerns, it is essential the Ministers make themselves available to appear before the Committee as a priority. We have also been disappointed at the long delays we have experienced on some occasions in the provision of written memoranda or responses to our Reports. We try hard not to set deadlines which are too challenging but it greatly hampers our ability to perform to a satisfactory standard if MAFF's contribution to our work arrives late. For example, the memorandum published as the Appendix to the current Report was requested in November 1999 with a deadline of 31 January 2000. It was received in April, thus making this Report itself seem somewhat dated as an account of our activities in a Session which ended over five months ago. Of course, a speedy ill-considered response would be equally unwelcome, as MAFF discovered when we criticised the initial reply submitted to our Report on the UK pig industry. MAFF has stated in its Business Plan that it "will facilitate the work of all ... Select Committees by responding to requests for written information within the deadlines they set".[3] From now on, we will monitor receipt of memoranda against deadlines to assist the Ministry in measuring its performance in this respect.

Committee membership

12. A comparison of the membership list at the beginning of this Report with the attendance list contained in the Annex indicates the extent of recent changes in the composition of the Committee, with a turnover of 56% since November 1998. We would like to record here our thanks to and appreciation of former members of the Committee for their contribution to the inquiries carried out in Session 1998-99, and especially to our former Chairman, Peter Luff, who did an excellent job in steering us through such a busy programme with skill and dedication.

Conclusion

13. Last year, we sent copies of the Report on our work in Session 1997-98 to the Chairman of all other select committees. Partly as a result of our efforts, the Liaison Committee which consists of all such Chairmen has recommended that the production of similar Annual Reports should be required of all select committees by Christmas 2000. We are pleased to see the success of our initiative. We believe that there is much value in publishing this short account of and commentary on our activities during the previous Session and in reminding the Government and others that inquiries are not forgotten once the official reply has been published. Whilst the format of future reports may change to reflect suggestions from the Liaison Committee, best practice learned from other committees or our own preferences, the principle which led us to take on this annual task is a sound one and we look forward to producing the report on our work in the current Session in a good and timely fashion.


2  Minutes of Evidence, 29 February 2000 (Afternoon Sitting), HC 292-i. Back

3  MAFF Business Plan 1999-2000, para 3.10. Back


 
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