Select Committee on Environment, Transport and Regional Affairs Minutes of Evidence



Examination of witnesses (Questions 480 - 499)

WEDNESDAY 12 JANUARY 2000

MR RICHARD WAKEFORD, MR EWEN CAMERON and MS PAM WARHURST

Mr O'Brien

  480. Obviously, we accept that it slipped under the net. I would suggest to you that these are issues, when the government are emphasising such importance on transport, that the agency ought to take seriously. When we ask for evidence, it ought to be part of that evidence so that we can give it further consideration when you appear before us. On the issue of post offices, you were suggesting that there should be further allocation of resources for better rural needs. Are you saying that you want a larger slice of the cake, taken from the urban areas or from the rural areas? Is that the philosophy behind your thinking?
  (Mr Wakeford) The post office is a concern which operates, I suppose, in a semi-commercial climate. That is probably the best way of putting it. What it needs to do is to look at the services it can provide and to those who will actually pay it to provide those services. We believe that, especially in rural areas looking at the potential of ICT for delivering modernised government services, there is a real opportunity for the post office to capitalise on its national spread. It is unique in its national spread, but to deliver—

  481. The National Association of Sub-Post Masters are asking the government to delay the implementation of the programme to allow the sub-post offices to come up with the IT equipment that you are referring to so that they can introduce banking schemes and meet the services. Are you supporting the sub-post masters' organisation on that point? Have you joined with them in asking for that?
  (Mr Wakeford) We have had discussions with that organisation and we are talking with the government but I am not saying that we are necessarily supporting precisely what they are saying.

  482. What you are saying is that you are not too concerned over the fact that the scheme comes in, without giving the sub-post offices in the rural areas the opportunity to modernise. That would not concern the agency.
  (Mr Wakeford) What we need to do is to look at ways of sustaining the network of rural sub-post offices where they are needed. I do not think that necessarily means one has to reverse government decisions properly taken. If that decision is implemented and it has the impact which some people say it will and there is a social objective of maintaining that network of sub-post offices, there will be other business opportunities that they can meet and there will be an income stream attached to that. It comes to the whole broad issue that we have been mentioning, which is the whole question of entitlement. What could rural people and rural services expect to enjoy? In some areas, they cannot expect to enjoy the same level of services as those who perhaps live in Islington and have a post office every 500 yards down the road or whatever. In order to maintain the network, it may well be that there is a need for those who are benefiting from that network to pay for it.

Mr Gray

  483. You mentioned you had some role in sponsoring VRSA. That is exactly the opposite of what they are saying. I have their submission here. They say that the government's proposals regarding ACT are entirely wrong and must be put right. Are you disagreeing with VRSA now?
  (Mr Wakeford) I want us not to get dragged into this single issue because we want the Rural White Paper, which is what this inquiry is about, to be a kind of long term vision of what is needed. What is definitely needed is a network of rural sub-post offices because of their unique quality and their potential to deliver a public service. Part of the government's decisions on benefit payment also relates to a change in the role of the post offices, with relationships with banks, with—

  484. This is waffle. VRSA say that ACT will close down the network and they are opposed to it. You say you sponsor VRSA. Do you or do you not disagree with VRSA?
  (Mr Cameron) If the government have taken the decision to introduce ACT, what we have to try to do is to find new roles and new ways forward for rural post offices. I believe there are roles that they can perform—

  485. Waffle.
  (Mr Cameron) I do not think it is waffle at all.

Miss McIntosh

  486. You emphasise very much in your evidence that the market town is going to be the key to economic development in the rural network. If you take the Vale of York as an example, I have four market towns. It is James Herriot country. It is all the plains of Yorkshire and many hills besides. 30 per cent of the constituency is the outskirts of York. It seems to run contrary, what you are proposing, to what the NFU say, because the NFU would like to see the market towns serving the hinterland which, again in the Vale of York, is hundreds of hamlets and a number of villages. Do you see a contradiction in those policies and running into a clash with the NFU?
  (Ms Warhurst) I do not think there is a contradiction there. We took a view, as we have done in most of our thinking, which is perhaps we need to change the way we have traditionally looked at solutions. I would like to come back to transport in a minute, but maybe I will not get the chance to do that. In terms of market towns, we need to say these have been in decline and that decline, it is a fact, has influenced the quality of life of the communities that surround them, the economic performance of those businesses that are within them and the agricultural sector that has been so dependent on them as centres of retail and so on. We have recognised that as a fact. We have said it is a bridge too far. We need to stop now. We need to identify that and quite clearly bring together with a single focus those areas of service delivery and those areas of policy that can make sure that they are revitalised and regenerated. We need to do that in partnership and we have an opportunity historically to do that now with Regional Development Agencies. There seems to me to be a great opportunity, not only to revitalise market towns, but through revitalising them to have such a significant impact on a number of other sectors that are absolutely vital to a thriving rural area of the country. That will not only include housing, which will have an impact in terms of the increased need for housing stock; it would also look at transport because the needs for transport in rural areas go way beyond the park and ride schemes. It is about bringing effective partnerships together; it is about recognising what people actually need to interconnect with other significant areas; it is about the platform for farmers' markets, local production and local added on value and so on. We would be at one with the NFU in terms of saying market towns are extremely significant. They are significant enough that we should focus several areas of policy on them and we should make sure that through a number of sectors, including the governance sector, they are identified as the platform to revitalising rural Britain.

  487. Bearing in mind that I think we would all agree we are in the midst of the worst farming crisis for many years, what specific proposals would you like to see, bearing in mind that farmers do not have a great deal of money to go and spend in market towns, that would actually help both the villages, the hamlets, as well as the market towns?
  (Ms Warhurst) It seems to me that there is a huge opportunity. We have Regional Development Agencies looking at added value, a unique selling point, branding local produce and so on. They have recognised that that will play a significant part in regenerating some of their areas. If we could use that opportunity, if we could look at local production being sold locally and obviously the positive effect that would have in terms of congestion in other areas, we would look at expansion of farmers' markets which have had a very significant impact in the States, moving from 100 20 years ago to 2,400 now, £700 million of dollar business. If we looked at what that would mean for employment prospects, if we looked at taking the opportunities of the Small Business Service and seeing what that means to micro businesses in rural areas into farming communities, there are several areas of opportunity that we really need to work up and make sure that we can monitor and we can deliver against standards.
  (Mr Cameron) The answer to your question is that every market town is different.

Chairman

  488. We understand that but what is the Commission doing to make one of these farmers' markets work that is not working at the moment?
  (Mr Cameron) We have grant aided the Association of Farmers' Markets which is designed to set out guidelines and best knowhow in order to make those farmers' markets work. We are very keen on farmers' markets and we continue our support through and through. On the market town question, if a consultancy team can go in there, and each market town will have its own solutions which will include the hinterland, the locals should be able to speak for themselves on each occasion in each place in a different way. Hopefully, then we can get all government agencies, national, regional, local, local authorities, to focus in on what they can do to revitalise those market towns, including English Heritage, including MAFF, including the Special Stewardship schemes perhaps, including the RDAs and maybe even transport funds as well.

  489. This is getting very general. Can we have something more specific?
  (Ms Warhurst) Can I be specific? In my own area, I am fortunate enough to sit on Yorkshire Forward, the Regional Development Agency for Yorkshire and the Humber. We have a partnership approach to the regeneration of market towns. We at the Countryside Agency took, through our board, a support package for moving forward in partnership with Yorkshire Forward, who are very keen to identify eight market towns that they can specifically over a period of time pilot in terms of this concept of bringing together commercial, social and a number of other agencies that can really make an improvement to people. That is a specific. I come from an area in Calderdale that is basically a string of market towns that has not had access to funding because it has fallen through the various criteria nets. It would be absolutely vital to the quality of life of the people living there that these specific schemes that we are targeting in real life work. We do believe that we will bring together in the coming years some real quality pilot partnerships that we can then roll out to the rest of the country.

Miss McIntosh

  490. Are you concerned about the lack of affordable housing schemes in rural areas?
  (Mr Cameron) Yes, very much so. It is very worrying and we need to increase that budget and we need to look at the solutions to that problem, yes.

Mr Stevenson

  491. You have talked about modulation in terms of agricultural expenditure. What other short term changes to agricultural policy do you see possible?
  (Mr Cameron) We have touched on this area to some extent throughout our evidence. I think it is a question of agriculture looking to see what it can deliver in terms of marketable commodities. In the old days, it was food. More recently, it has been environmental services. I think agriculture can also deliver leisure services. It is already to some extent delivering tourism, bed and breakfast and the like. It can deliver good local products to farmers' markets. It can shorten the supply line. It can help itself in many ways by going more into the processing and marketing of its own commodities.

  492. I was thinking more in terms of the agricultural policy itself. Let me give you an example. What is your view, for example, about the millions of pounds that are spent on set aside, which effectively pays farmers not to produce anything? Do you not think there is a case there for the Countryside Agency, in terms of the relationship between agricultural policy and rural development, to consider that issue? There are others I could mention but time will not allow me.
  (Mr Cameron) We certainly do not support the concept of set aside, although it can have some environmental benefits if well used. We would support the concept of putting some form of cross-compliance into such schemes, whereby farmers have to actually deliver a basic standard of responsibilities if they are going to receive state money for set aside. In essence, we would encourage the movement of agriculture towards a more competitive agricultural system, whereby set aside is not required at all and there are other goods being delivered, as I have mentioned, by agriculture, paid for by the state because the state is the only possible buyer.

  493. Could I move on to the longer term? I think Mr Wakeford said that the Rural White Paper should have a vision for the longer term. Again, concentrating on agriculture, given the apparent failure of the discussions in Europe on the reform to the CAP, what is your vision in terms of agriculture and its relationship to rural development in the longer term?
  (Mr Cameron) Our vision would be that agriculture should produce the goods that it can market. It should not be dependent upon subsidies which have become a drug distorting the agricultural market place. It has distorted the agricultural market place not only from the point of view of farmers. Really, it has not been of benefit in the long term to farmers; it has not been of benefit to the environment of this countryside. I think agriculture should examine what it can deliver to society and to its customers. Hence our land management initiatives are looking at "son of stewardship", a new method of delivering all sorts of goods to the local community. Agriculture should deliver its goods to its consumers through farmers' markets—in other words, shortening the supply line wherever possible—actually communicating with its customers, its customers feeding back information to farmers. It will need some support but I hope that support will be delivered in terms of benefits and goods that society is buying from the farmers as a contract, not as a subsidy.

  494. Finally, would you therefore either recognise, accept or reject the concept that said that agricultural support in future should be part of rural development plans and policies?
  (Mr Cameron) I think you want to look at a graph. At the moment, production support is right up here; environment and rural development are right down here. You need to split it and I would say you probably need one third, one third, one third.

Christine Butler

  495. In your evidence you refer to the development of information and communication technology as a benefit to rural communities. What is your reaction then to the recent study for the OECD by Professor John Adams which concluded that enabling more people to work in the countryside would lead to greater distances to travel for services and resulting in people being more isolated? You are aware of those comments, are you?
  (Mr Cameron) I was not, no. ICT can provide jobs; it can help rural communities communicate. Richard was talking about the village shop being on line and assisting people. Instead of going to the job centre or the health centre, they would actually communicate via ICT to those outlets and to lots of other outlets. In the end, of course, it does not do away with the need for transport. People have still got to get together; goods have still to be delivered. It is not the full solution to the delivery of rural services. We are hoping to carry out some experiments with one of the RDAs with a view to putting in ICT within a range of parishes and trying to actually see what effect this has on the community and on the demands and needs of that community.

  496. You are aware that beyond three kilometres from a telephone exchange they are noting that the high quality, high speed telephone links to transfer data cannot be installed?
  (Mr Wakeford) That is the position with the technology that is available from British Telecom at the moment through their home highway scheme, but that is not the limit to where technology is going. Can I give you another example, where we do not know yet what the impact is going to be? Nearly all the supermarket chains are talking about home delivery. Certainly in my household we are looking forward to having home delivery. When we have home delivery on those goods, will we get everything from a van and never go to a supermarket at all or will we find ourselves going to our local market town or village to do the top up shopping that at the moment we do in the supermarket aisles? The jury is out and we do not know. It could be that ICT will open up new vitality for market towns, or it could make things more difficult. We do not know yet.

Dr Ladyman

  497. The point about ISDN lines has just been made but notwithstanding the limitations of the technology rural villages are always going to be the last to be cabled and the last to be provided with these facilities. How are you going to speed that process up?
  (Mr Wakeford) Rural villages can benefit from satellite technology, the same as urban areas. Ultimately, as we move to satellite technology, we will get to the point where it does not actually matter how far away you are.

Chairman

  498. You have solved that problem. Should you be doing rural proofing or should somebody else be doing it?
  (Mr Cameron) We believe that we are very capable of doing it. We would like to carry out more research; we would like to have indicators. I would like to have inward secondments from all the different departments so that we ensure that, when they are doing their basic thinking, rural features appear.

  499. We can put you down for rural proofing?
  (Mr Wakeford) We are doing it already, Chairman.
  (Mr Cameron) To some extent.
  (Mr Wakeford) We need more backing from the government to be able to do it effectively across all the areas. At the moment, it depends on particular areas, but we want to be able to do the job properly.

  Chairman: On that note, can I thank you very much for your evidence? Thank you.


 
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