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


Examination of Witnesses (Questions 700 - 719)

TUESDAY 27 JUNE 2000

RT HON MICHAEL MEACHER MP, MR ELLIOT MORLEY MP, MR ROGER PRITCHARD AND MR JOHN OSMOND

  700. If you breakdown your bid, say £18 million in the Spending Review, how much is going to the Regional Assemblies and how much is going to English Nature?
  (Mr Meacher) I cannot answer that, firstly, because those decisions have not been made. The Regional Development Agencies are extremely important. They have been lobbying us very hard and saying they are under-funded considering the targets, the objectives we have given them and, of course, local authorities, local wildlife sites and biodiversity. As we all know, it is the oldest cliche in the book, politics is the art of making choices between priorities, and it is extraordinarily difficult as all ministers find.

  701. What is the coordination between yourself as Minister and that of the Welsh Assembly and the Scottish Parliament on this issue?
  (Mr Meacher) That again is a very relevant point because of course the devolved administrations have responsibility for environment and biodiversity. We all know as sensible people that environment and biodiversity does not know national boundaries. It is far more sensible that we have agreed plans; that we work together and coordinate. I, of course, have regular contact with my opposite numbers. At this moment there have been no issues on which I can say that there are glitches in agreed countrywide/UK-wide proposals on the environment, but it is the responsibility of the devolved administrations.

  702. How do you see the reaction in terms of what you have identified to poor coordination as to who is going to solve it? Who do you see as a key player in that respect?
  (Mr Meacher) First of all, those which put at risk the achievements of UK national targets—and we have got national targets under the Biodiversity Convention and under some of the EU Directives, for example, the Habitats Directive. To the extent that there is EU law or international obligation involved, then there is an override, of course, and I would have the authority to require the devolved administration to carry out their responsibilities. I hope that never happens; it certainly has not happened; and at the moment there is no sign of it happening. On matters where the UK does not have international obligation it is by negotiation and by agreement. Obviously, if there is serious disagreement I would speak to the minister concerned, and we would have to try and reach an agreed position. As of now that, again, has not happened but that is how we would handle it.

  703. It is not then more likely, given that where there is obviously tension or potential for obvious tension, were we to get to the stage where we were dealing with different forms of government in a different party within power, would that then make your job almost impossible? We are not talking about Tories, we might be talking about Nationalists.
  (Mr Meacher) I hope not. I think it would be extremely unfortunate and unwise for a political party to play politics over biodiversity. I think this is an issue which is not basically party political. People do see it as an issue on which everyone has a stake. I think point scoring, being difficult and being intransigent, would actually rebound. If that happened, and no doubt it will happen sooner or later, we do have to seek cooperation, but I would expect to receive it.

Mrs Ellman

  704. Regional Assemblies and Regional Chambers are the indirectly elected part of, the regional structure in England as we have it now. Certainly in the north-west environmental groups are very much involved there. Do you feel the government could use the Regional Assemblies and Regional Chambers perhaps more positively to support biodiversity?
  (Mr Meacher) Yes, I do. I immediately wonder whether in fact we have issued guidance, and it would only be guidance to regional assemblies, but I think it is the case that we have not. Unless I am advised otherwise, I think it is something I will take up and pursue in line with your suggestion.

Mr Donohoe

  705. 70 per cent. of the farms in the country will not be covered by the agri-environment scheme even after expansion of that scheme. What steps should be taken to protect the countryside in these farms?
  (Mr Morley) First of all, Chairman, I would like to emphasise the fact that we have committed £1 billion over the next seven years to agri-environment schemes, which is probably the biggest expenditure on biodiversity and environmental management of any department or any organisation in this country—it is a very large amount of money. It is true there are a lot of farms who are not within the stewardship scheme, but of course there are other aspects of environmental management which we encourage either voluntarily or statutorily. It is also the case, with that significant increase in money, we will be able to double the stewardship scheme. For example, last year there were 1,600 applicants to go into stewardship that we accepted; this year we plan to accept 3,000 applicants. Also, in areas where there has not been an uptake yet—and we do recognise within agri-environment schemes there are gaps in it, for example, the arable areas in the east have a lower uptake than some of the more mixed farms in the west, central and upland areas—we do have schemes such as our pilot arable stewardship scheme, which has been a very successful scheme, it is very promising. With that extra funding we do have the opportunity now for extending this in other parts of the country. It is one of the areas we want to look at as a priority when we draw up our future spending.

  706. Why should more funds be given to farms. There are those who think they are junkies for subsidy and here we come along with something else and you are having to pay them to take control of an issue that they tell us themselves they undertake. That is one of the strengths of argument made in the past. Here we are again giving further monies to the farms. Why are we doing that? Is it necessary?
  (Mr Morley) Yes, it is necessary because there is no doubt that changes in agricultural practice, intensification of agriculture—much of it driven, I have to say, by the way the Common Agricultural Policy works which, in some cases, encourages damaging intensification—has had a very detrimental effect on biodiversity within this country and we must tackle that. The concept of agri-environment schemes is to make up income foregone. If you apply measures which benefit the environment but reduce the income of the individual farmer or landowner then that is supposed to be reflected in relation to the payments. There is the issue which you are touching upon that there are huge sums of money going into production subsidies—there is no doubt about that—it is something like £3 billion a year in the UK alone, and our position from MAFF and the government is that this is not sustainable.

  707. Much of that money is probably doing damage to biodiversity, and then you are giving them further money to correct that situation. Is there anybody sitting there working in an audit of the biodiversity within a particular farm and saying, "Wait a minute, you are getting [whatever it is] in one direction, when in the opposite case we are supposed to fund you for the protection of the biodiversity". There is something wrong in there, is there not?
  (Mr Morley) There has been something wrong there, you are absolutely right. No-one would deny that we have a situation, particularly in the past, whereby the Ministry of Agriculture was actually grant-aiding drainage of wetlands, it was grant-aiding the ripping up of hedgerows, and we are now in a situation where we are grant-aiding putting hedgerows back and grant-aiding making areas wet. You are quite right, there is an illogical approach to this. What we are trying to do is grasp the issue of biodiversity. We have built it into our whole mission statement as a department in terms of environmental improvement and environmental management. We are building it into our whole approach as a department right across our policy objectives in terms of achieving biodiversity outcomes; and we are strongly arguing for complete reform of the CAP; and that complete reform must be a move away from these production subsidies—they just cannot go on in their present form.

Mrs Dunwoody

  708. How much effect are you having, because it does not really matter how many plans for biodiversity you announce if somebody in Brussels says, "Tough, we are going to actually change the way people are paid and that means wiping out all things you have been trying to do"?
  (Mr Morley) Brussels can also use that influence to actually influence things and the way people are paid for the good, for the better.

  709. Yes, but how much effect do you happen to be having? You have been there three years, and that is not just something you have suddenly thought of.
  (Mr Morley) I think we are having an effect. Although I would admit that the outcome of the Agenda 2000 negotiations in reforming the CAP did not go anywhere near as far as we would want to have seen it from the UK position (and I absolutely accept that, Chairman), where we were successful, and I think significantly so because it is a quantum leap in the whole structure of agricultural policy in Europe, is to get agreement on the so-called second pillar of the Common Agricultural Policy which is the framework we are now implementing in the UK (in the case of England the English Rural Development Plan), which is the framework for shifting those production payments away from the production side and over to the agri-environment and rural management site. That is a significant breakthrough, and that is where the £1.6 billion is coming from through that scheme, which includes modulation, which itself is the beginning of a shift in this country of production payments over to agri-environment payments, which we are implementing. We do have more to do on this and I absolutely accept that; but the framework has been put in place. That was very much driven by the UK who argued for that very strongly, and I think that is a significant change within the CAP.

Mr Donohoe

  710. So the £1.6 billion is coming from Europe, is it, not the Exchequer?
  (Mr Morley) It comes from four areas. Part of it comes from Europe in relation to funding; part of it from the department's existing allocation; part of it comes from modulation, which is shifting some of the production subsidies over into agri-environment payments; and part of it comes from matched funding from the UK Treasury, so for every pound we take in modulation the Treasury puts a pound in as well.

Chairman

  711. Field margins, this battle with the EU and their auditors. Where are we up to?
  (Mr Morley) We are waiting for a response from the Commission in relation to the proposals that we have put forward. We thought we had a very sympathetic response from Franz Fischler, who is the EU Commissioner responsible, and what we are arguing for is that there should be a change in the regulations that would allow Member States the flexibility of actually dealing with issues such as field margins. We have also discovered it is not just the UK which is affected by this; there are other Member States which share our concerns, and of course, that is helpful in terms of pressing for changes.

  712. So if I am ploughing up some land this autumn, do I leave the margin or do I plough the margin?
  (Mr Morley) The situation is that we have managed to get a one-year moratorium on this.

  713. I thought that was this year.
  (Mr Morley) Yes, it is for this year, but the decisions in relation to ploughing and planting are not at the stage where those decisions have to be taken. That is more for round about October. But it is a fair point, Chairman, and we do have to try to get this resolved in time for the next planting season so that farmers are aware where they stand.

Mrs Dunwoody

  714. But that will only presumably affect spring planting, and the question you were being asked was what to do in the autumn. We all know, with the extraordinary way in which the Community organises its meetings and affairs, no major decisions of this kind will be taken until well into November, possibly the beginning of December.
  (Mr Morley) The Commission are aware that there is a timescale on this in terms of people planning. They know that, therefore we expect to get that decision in time to advise farmers.

  Mrs Dunwoody: Famous last words.

Chairman

  715. That was one of the things that applied to all farmers, was it not?
  (Mr Morley) Yes, those in receipt of arable subsidies.

  716. What about trying to make sure that there were some minimum conservation measures which actually applied to all farmers in return for a lot of money?
  (Mr Morley) I think that is a very fair concept, Chairman, and we are giving consideration to that as part of cross-compliance measures. The DETR commissioned a study on various options and we are looking at those options at the present time. What we have to do though is look at any kind of environmental measures that are easily understood and easy to enforce. There may well be opportunities for doing this in relation to the field margins issue, but there is still work being carried out on that.

  717. Do you agree with the Game Conservancy Trust that shooting birds improves biodiversity?
  (Mr Morley) I think the management that goes along with game shooting certainly does improve biodiversity, yes.

Mr Olner

  718. Do you think Ministers will apply cross-compliance to meet the UK's obligations under Article 3 of the common rules Regulations to ensure environmental protection?
  (Mr Morley) It is possible that we would apply it on that basis. As I say, what we have to look at is the kind of measures.

  719. Possible? Probable? Will do?
  (Mr Morley) There are a number of issues to resolve on this, Chairman, which are not easy. First of all, you have to decide just what measures you would want to apply, what kind of environmental benefits you would get with those measures, how you would enforce those measures to ensure that they were being complied with, and there are a number of complex issues there—issues, however, that are not insurmountable, in my view. I think it would be possible to have some form of cross-compliance that would bring environmental gains. The issue is what form that would take and how you would apply it.


 
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