Select Committee on Agriculture Minutes of Evidence



Examination of witness (Questions 660 - 679)

WEDNESDAY 8 NOVEMBER 2000

MR ELLIOT MORLEY

  660. Yes, they definitely are. Finally, in the context of my suggestion of some kind of a convention or dialogue with all the certifying bodies at a strategic level, do you think there is a benefit in bringing the Farm Assurance Scheme together with certifying bodies so you have one inspection and one set of standards, thereby avoiding duplication?
  (Mr Morley) I think that would bring huge benefits, although not easy to do I suspect. There has been a big growth in farm assurance schemes, different ones, not necessarily related to organic production. I am a great enthusiast of farm assurance schemes. I think they are a good thing. I think they raise standards. Also, I think they give our producers a protection because with increasing competition, increasing globalisation, what we cannot do in our country is move our standards down because there is always somebody who will get under them anyway. What we should be concentrating on is high standards underpinned by quality assurance schemes, underpinned by proper labelling, good labelling and proper consumer education so that consumers make informed choices. It comes back to the point I was making, Chairman. I think that British producers who are investing in high standards of welfare, quality, environment, including organic producers, are entitled to a premium. They are entitled to a premium. The quality assurance schemes and the validating bodies are part of making sure that they get that premium.

  661. There is potential to bring all this together so, finally—I know I said "finally" once before but I mean it now—will you consider in that case for some time in the next three or four months having strategic certifiers' standards just to see if there is a basis for interest in this?
  (Mr Morley) I am not against the principle of what you are saying. The difficulty for the Government, of course, is that we do not have ownership of these schemes.

  662. But it could be a voluntary kind of summit?
  (Mr Morley) It could be a voluntary summit but it would have to come from the bodies themselves. In some ways it is an issue for them. If the different groups and assurance schemes and validating bodies want to do that then from the Government point of view we would be only too pleased to see that and we would be very happy to co-operate.

  663. If they come to you, you would be willing to co-operate?
  (Mr Morley) Absolutely, yes.

Mr Mitchell

  664. Can I just come back to the point that Lembit made. Surely it is simply to sweep the whole lot out of the way and just have Government's authorisation and inspection schemes. There would not be the overlap. It is known to the consumer and the consumer might be able to make a choice between different standards set by different certification bodies but it is just a confused mess, they want organic food, they do not want all the fiddling distinctions. Also, unless you do that, have a common system, you are going to strangle the industry because it is no use having higher standards and a holier-than-thou kind of attitude if they can only be financed by Government spending and by maintenance groups. Surely you have got to have achievable standards which can be universally achieved to bring down the price and give it the competitive edge it now needs?
  (Mr Morley) Certainly I agree with the point you make about the dangers of setting standards which are higher in this country than anywhere else and, therefore, in effect cutting our nose off to spite our face, as David said. Of course, the way that validation works is completely open as part of the UKROFS review. All options can be considered. I think in defence of the validating bodies, as I say, by and large they do a good job. They are well established, they are very cost effective from a Government point of view, because although we do give some financial support in terms of the organic helpline and the information service, we give some financial support to the bodies too but it is limited, the bodies themselves actually arrange an awful lot of their money and are self-financing. They are quite cost effective and they are efficient in terms of how they perform.

  665. Do you use that support to persuade them that they might be being a bit pedantic or even pernickety in some of the standards?
  (Mr Morley) The key is probably UKROFS because, as I say, when you have a number of different validating bodies, farmers can choose. If they think one of them is setting unreasonable standards above the minimum then they do not have to go into that validating body. The important thing is the standard that UKROFS set because that is the national standard. The argument about realism and pragmatism is probably one to have with UKROFS really.

  666. Imports will come in at lower standards?
  (Mr Morley) Imports will come in at an agreed standard. Validating organisations can set a higher standard than that if they choose.

  667. Imports will force them—
  (Mr Morley) You cannot ignore the impact of imports which are being produced at a certain minimum standard.

  668. How are you, as Government, going to encourage production of more organic cereal and protein crops to satisfy the EU organic livestock requirements?
  (Mr Morley) I think in all honesty, Chairman, we have a fair way to go on that sector. It is very difficult to attract cereal producers into organic production, although the premium for organic cereal crops is very strong, particularly given the very low prices of cereal at the present time. The premiums are very attractive for cereal producers at the moment. The problem is, of course, they are underpinned by the arable area payments. To go to organic cereal production really the best method is to have a mixed farm method and, of course, many cereal farmers over the years have gone to monoculture and maximised cereals. Therefore, the cost of converging for them is quite high, not so much in their losses but the fact they will have to go to rotation. They will probably also have to have some livestock as well because of the organic manures and it is a restraint, it is true. We are not making as much progress on the cereal side as we would like.

  669. There have been concerns expressed about the delays in approval of imports by UKROFS. Now is this implicit in the situation, for so many countries to assess rather than it being done on a common European basis, or have you tried to persuade them to get their finger out and speed things up?
  (Mr Morley) It is just the sheer pressure on them really. As I was saying, Chairman, there are a number of countries that have EU approval because they have been inspected by the EU in relation to their organic standards. Therefore, we expect the validation of those countries. Therefore, we do not have to validate all their imports because we accept that their validation bodies are applying the same standards as our validation bodies. It is the countries which are not included within that list where you do have to make sure that the organic standards are being applied. It is important because as the market expands then, of course, you do have to be very much on guard that people are trying to slip non-organic products on to the market to gain the benefit from those premiums. I think the fact that UKROFS has taken some time about it reassures me because it means that they are looking at it properly.

  670. You have no problems about the effectiveness of the EU inspection or whether there are preferences given to some group of countries over other groups of countries?
  (Mr Morley) Some groups of countries have that preference in the sense that they have been inspected by the EU and meet the EU standards. They have their own systems in place which we accept are working and are being properly validated. There are not many, there is a limited number of those. Israel is one of them which springs to mind. Other countries have to be inspected properly but they need to be inspected properly. I think the main delay is demands on staff in UKROFS and, of course, that is one of the issues we are looking at in the review.

  671. Are you satisfied with the current controls on imports?
  (Mr Morley) Yes. I think that the current inspections are generally acceptable, although, of course, there is always room for improvement.

  672. Given the value of third country imports, has MAFF encouraged the EU to extend its recognition of the treatment of EU suppliers?
  (Mr Morley) I think we are pretty confident that within the EU suppliers the standards are being applied properly and uniformly. Bear in mind, of course, that the bulk of organic produce is going into the big retail chains. The big retail chains have their own supply chain auditing and, of course, it will be very damaging to their reputation if they are importing products which are claimed to be organic and which are shown not to be organic. There is that fallback position as well in that there is the independent market driven checks, apart from the statutory checks and standards we have put in.

  673. Does the EU provide assistance to other countries to improve their standards so things can be speeded up?
  (Mr Morley) Offhand I am not quite sure whether they do do that.

Dr Turner

  674. Minister, earlier on you were saying that one of the reasons the public supported organic farming was the perception that it was a benefit to animal welfare. Returning to the need for that to be evidence based, I would just like you to say a little bit about what you base that statement on, given that we have had people coming to us saying the opposite might be true and that sometimes the livestock regulations are a threat to animal health and welfare. There is a conflict of argument being given to the Committee. What is the research and the evidence you are using to ensure you are correct and the public are getting the correct perception that animal welfare is one of the reasons to support international farming?
  (Mr Morley) In some ways it is a question which should be directed at the validating bodies because of the standards they set. Farm animals, of course, are protected by a range of laws and regulations in this country and that applies to organic farms as well as any other farm. I have looked at some of the standards being applied. Organic farmers can, of course, use normal veterinary products when animals have a need for that but, of course, they have to go through a withdrawal period if they use veterinary products. The organic farmers and organic sectors that I have talked to are absolutely adamant that their standards are very strongly welfare based. They argue they are based on good veterinary and scientific care and practice. Of course, in relation to stocking densities, the way that animals are reared, they have very strict rules in relation to what should be applied in order to meet the organic standards and the validating standards.

  675. Do you think that is why they may be tempted not to treat the animals, so they actually do not break the rules and lose the organic premium for the animal?
  (Mr Morley) No, I do not think so. I think the key to all these standards is that the welfare of the animal must come first. If the animal needs veterinary care and treatment then it can have it.

  676. That might have been true for those who led the field but surely as it does become more commercial, as you say it is likely to, is that commercial pressure to actually protect the premium on the animal not likely to come in front of the animal welfare? Is there not a need to ensure there is not a compromise?
  (Mr Morley) There is a need to ensure and that is a job for the validating bodies but, of course, if welfare is in some way neglected or compromised then it would certainly seriously affect the premium.

  677. One other issue which farmers raised with us was the concern they had about the future of local abattoirs. It was quite clear the commercial viability of some farmers depended upon the fact that they were close to the abattoir they were using. Do you have concerns yourself about the future of abattoirs and, if so, what plans do you have to ensure that the needs of the organic farmer are met?
  (Mr Morley) Yes, I do have concerns and I know you have raised it yourself as a constituency MP in relation to this.

  678. I have, yes.
  (Mr Morley) There is a very serious issue here about small slaughter houses and the costs that they face in relation to enforcement and hygiene control. There is a serious issue of enforcement and hygiene control and, indeed, we have seen from the Phillips Report what can happen if you do not take that seriously and if you put deregulation before consumer protection. We have to strike that balance between the need to ensure that we have good controls in all our meat plants, and that includes small ones as well as large ones, but, yes, there is an issue of small ones and there is an issue of the fact that we want to have small slaughter houses within easy reach of regions because there are regional products, there are organic products. We do recognise that argument and it has been made very well by the organic sector and, indeed, others. All I can say to you, Chairman, is that in the Rural White Paper, where we are considering a range of issues within the rural economy, small slaughter houses is one of them. I just suggest you read that when it comes out.

Chairman

  679. The Government's response to the Maclean Report, is that bound up in the Rural White Paper?
  (Mr Morley) Yes, it is.


 
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