Select Committee on Environment, Food and Rural Affairs Ninth Report


CHAPTER 6 - RECENT DEVELOPMENTS

Spending review

249. In his statement on the spending review, the Chancellor of the Exchequer declared that

Under the spending plan announced in the spending review the Department for Environment, Food and Rural Affairs and the Forestry Commission's combined funding increases as outlined in the table below.


Delivering sustainable food and farming[468]

The Curry Commission set out how progress can be made towards a sustainable future for food and farming. This Review gives DEFRA the resources to implement their core recommendations, providing a balanced package for farmers including investment for:

  • electronic livestock identification;
  • a more efficient food chain;
  • action through the England Rural Development Programme, including:
  • a new broad and shallow agri­environment scheme to be piloted over the next 2 years and then rolled out in full in 2005­06;
  • other measures, such as the Rural Enterprise Scheme, the Processing and Marketing Grants Scheme, and the Vocational Training Scheme; and
  • anticipated expansion to current schemes.
  • piloting farm audits;
  • enhanced farm advice;
  • more testing for TSE­type diseases (such as BSE);
  • an enhanced National Scrapie Plan; and
  • further work, in concert with HM Customs, to prevent illegal meat imports.

In return for this investment, the Government expects farmers to play their part in making their industry sustainable, for example by managing disease risks.


In 2005-06, £200 million has been allocated to "implement the core recommendations of the Curry Commission, such as a new 'broad and shallow' agri-environmental scheme and significant extra spending on animal health".[469] The Box below sets out the Secretary of State's reaction.

Table 11: Spending totals for DEFRA And the Forestry Commission

2002-03 to 2005-06 (£ million)[470]

  
2002-03
2003-04
2004-05
2005-06
Resource budget
2443
2765
2742
2792
Capital budget
241
316
344
354
Total Departmental Expenditure Limit*
2523
2902
2890
2944
of which:DEFRA*
2426
2808
2796
2850
Forestry Commission*
97
94
94
94

Note:
* Full resource budgeting basis

250. We note the money allocated to the Department for Environment, Food and Rural Affairs in the recent spending review. However, we are not clear that it is adequate to cover the cost of the Policy Commission proposals. Although we favour a pilot of the 'broad and shallow' agri-environmental scheme proposed by the Policy Commission on the Future of Farming and Food, we are surprised that it has already been announced that the scheme will be 'rolled out' after two years. We recommend that during the pilot of the 'broad and shallow scheme' the Government regularly analyse and publish the results of the scheme. It should set out at an early stage the criteria against which its success or otherwise can be measured. 'Rolling out' the scheme should not be automatic, but should instead be determined by whether or not it has proved to be good value for money.


Sustainable Farming and Food: Statement by Rt Hon Margaret Beckett MP, Secretary of State for Environment, Food and Rural Affairs

"When DEFRA was created, the farming industry was in crisis. Foot and mouth disease, coupled with the lowest farm incomes in many years—had destroyed farmers' confidence, and in some cases, their livelihoods. The Review provides DEFRA with the resources to make progress—working together with the industry—towards a more sustainable future for the farming and food industries. Investment totalling over £500 million over three years will be available to support the key recommendations of the Policy Commission chaired by Sir Don Curry, and to improve animal health and welfare:

"Action through the England Rural Development Programme, including:

- a new broad and shallow agri­environment scheme which will reward farmers for delivering environmentally friendly outcomes to be piloted over the next 2 years and then rolled out in full in 2005-06;

- an expansion of schemes such as the Rural Enterprise Scheme, the Processing and Marketing Grants Scheme, and the Vocational Training Scheme, to assist people in rural areas retrain, diversify and extend their businesses;

- a more efficient food chain;

- enhanced farm advice;

- further measures to improve animal health and welfare, including livestock identification and tracing systems, enhanced testing for TSE­type disease (such as BSE); and further action to prevent illegal meat imports.




"The additional funding will rise to £200 million in 2005-06 of which £75 million has been specifically allocated to fund, alongside equivalent European Union funding, the full roll­out of the new agri­environment scheme in England. Additional funding will also be made available to the Devolved Administrations to allow them to increase expenditure on their Rural Development Programmes. In return for the investment in their industry, farmers will be expected to play their part in making the industry sustainable, for example by acting to reduce the risks of animal diseases. I know they will co­operate with us fully in achieving these joint goals.

"The Government will continue to press for radical reform of the Common Agriculture Policy (CAP) in the negotiations on the Mid­Term Review of Agenda 2000 which began earlier this week. But the resources allocated in the Spending Review allow DEFRA to press ahead with reform and modernisation of the farming industry now. The Department will publish its strategy for sustainable farming and food in the autumn. I am very pleased that Sir Don Curry has agreed to chair a Group which will act as a driver and overseer of change in the farming and food sectors through the implementation of the farming and food strategy, to ensure that we move rapidly towards a more sustainable, competitive and diverse farming and food industry which contributes to a thriving rural economy. The Group will report to me.

"The Settlement recognises the need to prevent, control and manage the risk of animal disease, where we are driven by the memory of last year's outbreak of Foot and Mouth Disease as well as the legacy of BSE. The additional resources provided will allow funding of a wide range of work on animal health issues These measures will be set in the context of a comprehensive animal health and welfare strategy, as recommended by the Policy Commission. This will address ways in which the industry should bear its share of the costs of animal health controls and services. I am also please to be able to announce that we have secured additional funds to deal with Bovine TB this year. These will be used to pay for the extra staff and resources already committed to work on the TB testing backlog and control measures, and additional casual staff who will be recruited to supplement this work. Testing is being carried out on the basis of a veterinary risk assessment, with those posing the greatest risk being tested first".[471]

Reaction to foot and mouth disease

251. In response to the foot and mouth disease outbreak, the Government established three inquiries: the 'Lessons Learned' Inquiry; the Royal Society Inquiry into Infectious Diseases in Livestock; and the Policy Commission on the Future of Farming and Food. The Policy Commission inquiry was announced by the Prime Minister on 9 August 2001. It followed a commitment in the Labour Party election manifesto:

We have discussed the Policy Commission's recommendations elsewhere in our Report. In this section we turn to the report of the Royal Society and Lessons Learned inquiries.

252. The reports of the Royal Society and the Lessons Learned Inquiry were published on 16 and 22 July 2002, respectively.[473] The Secretary of State made a statement to the House on both reports on 22 July,[474] and we took evidence from Dr Iain Anderson, the chairman of the Lessons Learned Inquiry, on 23 July,[475] and from members of the Royal Society's Inquiry team on 16 October.[476]

253. The Lessons Learned inquiry made a number of criticisms of the Government's handling of the outbreak. Its central recommendation was that the Government

    "should develop a national strategy for animal health and disease control positioned within the framework set out in the report of the Policy Commission on the Future of Farming and Food".[477]

One of the key objectives of the strategy, the inquiry found, was to "reduce livestock vulnerability by reforms in industry practice".[478] In particular it proposed that farm assurance schemes should reward and reinforce disease awareness and biosecurity. It put forward the possibility of a licensing system for farmers and supported the retention of the 20-day restriction on moving animals brought onto farms, introduced during the recent foot and mouth disease outbreak. Such proposals will have significant implications for the livestock sector, in particular for livestock markets.

254. As we have said, the best way to reconnect farmers to their market is by reducing the number of links in the food chain. In such circumstances it is inevitable that livestock, for example, will be increasingly sold directly by farmers to retailers or processors in a long-term contractual relationship. The need to improve and maintain biosecurity through measures such as the 20-day standstill (which is heavily contested and subject to different approaches in Scotland and England which the Government has signally failed to explain) also suggests that fewer sales will be made at livestock markets. Livestock markets will become more heavily dependent on the sale of store animals and may develop as commissioning agents for contract purchasing thus adjusting to the trend to create closer and more permanent links along the food chain. The Meat and Livestock Commission should monitor total annual returns to livestock farmers selling on a contract basis with those selling at market.

255. Like the Lessons Learned inquiry, the Royal Society report made a number of recommendations which would apply only in the event of a disease outbreak. However, it too proposed licensing, recommending that the Department for Environment, Food and Rural Affairs should "ensure that all keepers of livestock (including that not kept for food production) are properly registered and submit to DEFRA each year the name of their nominated private veterinary surgeon and a health plan approved by the same veterinary surgeon".[479]

256. The recommendations of the Lessons Learned and Royal Society inquiries might be adopted in the context of the proposals outlined by the European Commission in relation to the Mid-Term Review, discussed below. Auditing farms and including animal health and welfare requirements within cross-compliance conditions could have the effect of a licensing system, as long as it is applied to all keepers of livestock. We therefore recommend that the Government explore, with the European Commission and other European Union Governments, whether the registering of keepers of livestock (for example, through imposing cross-compliance conditions on farmers and through the proposed audit of farms) could play a role in creating a new confidence between consumers and farmers (although we recognise that some keepers of livestock are not subsidised and that therefore not all aspects of these recommendations could be accommodated through cross­compliance). The annual veterinary approval for health plans proposed in Royal Society's report might also provide the basis for livestock farm assurance scheme. We further recommend that the agriculture industry is consulted about the design of assurance schemes which would incorporate the proposals of the Royal Society.

257. The Royal Society's report proposed several changes to the future management of the agricultural science base and of the State Veterinary Service. In oral evidence, Professor Sir Brian Follett, the Royal Society Inquiry's Chairman, expressed concern that "much of animal disease research in Britain is fragmented, poorly led and needs a complete overhaul".[480]

258. The Royal Society noted that the state funding of agricultural research has been tightening for twenty years and this, together with the reactive direction of research, responding heavily to the latest crisis, has both weakened and narrowed the research base.[481] In our Report into the Departmental Annual Report 2002 we also referred to concern about spending on scientific research, and recommended greater funding of research, if necessary.[482] We support the Royal Society's recommendation that an additional £250 million be spent on livestock research over the next ten years,[483] and strongly endorse its call for a strategic review of how livestock disease research is managed.[484] We believe that while DEFRA should play an important part in this review it should be led from outside the Department. We also support the proposal that research spending be directed towards possible future risks, many of which, it appears, currently are minimally researched.

259. Moreover, the Royal Society was "concerned about the attractiveness of the State Veterinary Service as a career".[485] One difficulty it referred to was the minimal support that seemed to be available to those in the Service seeking to improve their qualifications.[486] The limited role played by MAFF and now DEFRA in supporting university veterinary education was also remarked on.[487] The Government should examine how it can improve the attractiveness of the State Veterinary Service, and particularly how it can better support education relating to the veterinary care of farm animals.

260. The Royal Society drew attention to the need to establish an advice structure which could gather and disseminate scientific advice both from within Government and from outside. It recommended a Chief Scientific Adviser's Group, chaired by DEFRA's Chief Scientific Adviser, which could be activated rapidly in the event of a disease outbreak.[488] We welcome the establishment of the Chief Scientific Adviser's Group. Arrangements concerning the role of the group should form part of future contingency plans.

261. The misery of the foot and mouth disaster has provided a mass of data on the various outbreaks of 2001. In the context of a crisis the analysis of each outbreak's pattern could not be carried out with precision. Data errors and lacunae were not unusual. It is important that we gather as much information from this mass of data as we can, and that the data is shared as rapidly as possible with the wider scientific community so that we can continue to learn from our experience. Government has not always had a satisfactory record in allowing access to its data. It is critical that this is not the experience of those seeking to research aspects of this outbreak. The Government should define, in partnership with both scientific and farming stakeholders, the data that would assist in the analysis and management of any future outbreak.

262. Although there was a lack of consensus about modelling of the foot and mouth outbreaks, it played a critical role in the management of the disease. The models used are not the only ones that are relevant to the analysis and prediction of outbreaks. It is important that the Government, as part of its planning for infectious disease control, has rapid access to a full range of potential models and to the expertise needed to make appropriate use of them, and that it invests in the development of these tools.



467   HC Debates, 15 July 2002, cols 23-24. Back

468   HM Treasury, 2002 Spending Review - Opportunity and Security for All: Investing in an Enterprising and Fairer Britain, Box 16.2. Back

469   HM Treasury, 2002 Spending Review - Opportunity and Security for All: Investing in an Enterprising and Fairer Britain, Chapter 16. Back

470   HM Treasury, 2002 Spending Review - Opportunity and Security for All: Investing in an Enterprising and Fairer Britain, Table 16.1. See full details of the announcements made by the Chancellor of the Exchequer, which are on the Treasury website at: http://www.hm­treasury.gov.uk/Spending_Review/spend_sr02/report/spend_sr02_repindex.cfm?. Back

471   HC Debates, 19 July 2002, cols 628W-631W. Back

472   Labour Party, Ambitions for Britain - Labour's manifesto 2001, see:

http://www.labour.org.uk/lp/new/labour/docs/MANIFESTOCONTENTS/ENG1­WWW.PDF. Back

473   Infectious Diseases in Livestock, report by the Royal Society; see: http://www.royalsoc.ac.uk/inquiry/; and Foot and Mouth Disease 2001: Lessons to be Learned Inquiry, HC 888, Session 2001-02, see:

http://www.fmd­lessonslearned.org.uk/nav/report.htm. Back

474   HC Debates, 22 July 2002, cols 669-688. Back

475   Foot and Mouth Disease: Lessons to be Learned, Minutes of Evidence, Environment, Food and Rural Affairs Committee, HC 1144, Session 2001-02. Back

476   Royal Society Inquiry into infectious diseases in livestock, Minutes of Evidence, Environment, Food and Rural Affairs Committee, yet to be published as HC 1227, Session 2001-02. Back

477   Foot and Mouth Disease 2001: Lessons to be Learned Inquiry, p. 12. Back

478   Foot and Mouth Disease 2001: Lessons to be Learned Inquiry, p. 11. Back

479   Infectious diseases in livestock, R5.4, paragraph 5.64. Back

480   Royal Society Inquiry into infectious diseases in livestock, Minutes of Evidence, Environment, Food and Rural Affairs Committee, yet to be published as HC 1227, Session 2001-02, Q.48. Back

481   Infectious diseases in livestock, para 10.22. Back

482   The Departmental Annual Report 2002, Sixth Report of the Committee, HC (2001-02) 969, paras.25 and 26. Back

483   Infectious diseases in livestock, para 10.25 and R10.4, para 10.28. Back

484   Infectious diseases in livestock, R10.1-R10.3, para 10.28. Back

485   Infectious diseases in livestock, para 10.35. Back

486   Infectious diseases in livestock, para 10.37, and Royal Society Inquiry into infectious diseases in livestock, Minutes of Evidence, Environment, Food and Rural Affairs Committee, yet to be published as HC 1227, Session 2001-02, Q.66. Back

487   Infectious diseases in livestock, para 10.32. Back

488   Infectious diseases in livestock, para 9.20 and Royal Society Inquiry into infectious diseases in livestock, Minutes of Evidence, Environment, Food and Rural Affairs Committee, yet to be published as HC 1227, Session 2001-02, QQ.23, 63-64. Back


 
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