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Registered Agricultural Holdings

5. Mr. Elfyn Llwyd (Meirionnydd Nant Conwy): What steps she is taking to arrest the decline in the number of registered agricultural holdings; and if she will make a statement. [120188]

The Minister for the Environment (Mr. Elliot Morley): The Government launched their strategy for sustainable farming and food in England last December to promote a competitive and efficient farming and food sector. A similar strategy was published by the Welsh Assembly Government in November 2001. The structure of the farming industry will be determined by the markets and the commercial judgment of individual farmers and growers.

Mr. Llwyd : I, too, congratulate the Minister on his elevation and you, Mr. Speaker, on your well earned doctorate. [Hon. Members: "Hear, hear."]

Unfortunately the Minister did not answer the question that I tabled when I asked what was being done to arrest the decline in agricultural holdings. A written reply that I have just received states that in 1997, there were 77,829 holdings in England whereas in 2002, there were 69,000. The position is worse in Wales, where the number has decreased from 19,300 to 16,800—a drop of 13 per cent. That has a disproportionate effect on the rural economy of Wales. Will the Minister examine the current structure and consider, for example, assistance

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for new entrants and smaller farms? He shakes his head, but nothing has been done in the past 10 years. It is complacent of the Government simply to talk about marketing when farms are lost daily.

Mr. Morley: But those changes have been happening since farming began. The trend towards amalgamation has been accelerating since the 1930s; there is nothing new about it. It is difficult for the Government to set any industry in stone and say that it will never change again under any circumstances. It is not possible to do that.

All sorts of changes have occurred in farming. The same farmer may have several holdings that he has consolidated; that does not necessarily mean that farms have disappeared. I accept that there has been a decline—I would not want to pretend otherwise—but that has been in progress for a long time. However, other changes have occurred, with new people, who may have other sources of income, taking on smaller farms. They bring innovation and new ideas.

Farming is dynamic: it changes and adapts. We have a role to play in that through the help that we give farming—in research and development, environmental or marketing support. However, we cannot say that farming will never change: that is up to the drivers of society, markets and, indeed, farmers.

Mr. Huw Edwards (Monmouth): But does my hon. Friend agree that local authorities and other public bodies can recognise the importance of farming in rural economic development? Will he join me in congratulating Monmouthshire county council, which recently decided to invest in a new livestock market that will serve not only south-east Wales but the border areas of England.

Mr. Morley: I certainly join my hon. Friend in congratulating Monmouthshire county council on its work. We can do a great deal to support local sourcing, not only through supporting our farmers in the rural economy but in reducing food miles. There are sound arguments for that.

Locally Grown and Produced Food

6. Gregory Barker (Bexhill and Battle): What steps she is taking in the EU to enable the preferential procurement by public sector bodies of locally grown and produced food. [120189]

The Minister for Rural Affairs (Alun Michael): We encourage public sector bodies to adopt purchasing policies that allow local growers and food producers the opportunity to compete for business. Local sourcing is an element of our sustainable food procurement initiative.

Gregory Barker : I thank the Minister for that answer, but it did not address the question about what he is doing in the EU. We lag way behind France and Italy in local procurement. I draw the Minister's attention to the excellent report, "Relocalising the Food Chain", which Cardiff university produced. It found that


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Alun Michael: The hon. Gentleman has imagination because he has managed to answer his question. I am delighted that he has done that. The EU rules do not prevent local procurement. It is a question of engagement between farmers, food producers and their market. We are trying to help the industry to understand the way in which to get into that market. We have issued guidance, which is publicly available, so the hon. Gentleman can read it. We have provided case studies and advice, and we shall continue to do that to enable people to understand the way in which they can help local producers to bid and succeed. We also need to help the producers to get into the market and supply what their market wants.

Mr. David Kidney (Stafford): As the rest of the ministerial team have been congratulated, may I offer my congratulations to my right hon. Friend on still being in his job? Does he accept that cheap and pre-packaged foods are often stuffed full of fat, salt or sugar, and that that is contributing to an alarming increase in the incidence of obesity, diabetes and ill-health? Is there not a responsibility across government to establish rules for procurement—within EU rules—that would require more fresh, wholesome food? Such rules would obviously contribute to a greater degree of local production and supply of food.

Alun Michael: I thank my hon. Friend for his congratulations; I am delighted still to be in this role and to be a member of this very fine team. He is absolutely right: it is possible to set procurement standards that enable fresh local produce to have the best chance of succeeding. He is right to place an emphasis on health and good quality, but we cannot demand that local produce should be included. As the hon. Member for Bexhill and Battle (Gregory Barker) suggested in his supplementary question, however, there are ways of encouraging good quality, fresh and locally produced food to come into the public service. That is the way in which we should approach this.

David Burnside (South Antrim): The Minister must realise that public sector bodies have a problem, in that they have to buy according to best value. When I walk into Tesco's supermarket in Ballymoney, I know whether the lamb, chicken, vegetables and loaf of bread that I am buying have been produced locally in Northern Ireland, because they are labelled. Could the Minister direct all public sector bodies in the health service and education to have the same labelling policy in their restaurants and canteens, so that it would be quite obvious which products had been locally produced? That would lead to a massive increase in demand for such products from the customers. Does the Minister agree with that constructive proposal?

Alun Michael: There is a variety of ways in which the choice available to consumers—in public organisations

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and elsewhere—can be extended. There are two halves to the equation, however. The first involves ensuring that public sector bodies know that they are not precluded from designing their procurement policies in such a way as to promote fresh and local produce, to give it a fair chance while not excluding other bidders. The second involves encouraging UK producers to understand the service that they are providing and to be more competitive through greater collaboration, more co-operative working, and having a greater understanding of the public procurement approach. I agree with the hon. Gentleman that informing people about what they are purchasing and what their choices are is an important part of that.

Departmental Rebranding

7. Mr. David Heath (Somerton and Frome): If she will make a statement on the purpose of the rebranding of her Department. [120190]

The Minister for Rural Affairs (Alun Michael): A lot of work has gone into making DEFRA an efficient organisation that serves the public interest and is focused on the needs of its customers. [Interruption.] Conservative Members may chortle, but this is not something that the Conservative Government ever sought to do. We seek to be a Department that is modern, professional and forward-looking. We want that to be reflected by a new sense of confidence among our staff, and for the public to see the effects of change and modernisation. The rebranding exercise is just one part of that work, helping to establish a new identity and explain the role and purpose of the new Department.

Mr. Heath : Will the right hon. Gentleman confirm the figures extracted by my hon. Friend the Member for Lewes (Norman Baker), which show that the rebranding exercise cost £329,000, and that a further £200,000 was spent on putting up new signs? The right hon. Gentleman says that extensive research has helped DEFRA to develop a better understanding of what its customers expect from it. Is it not the case, however, that customers expect something other than invisibility in matters concerning the environment, and something other than disengagement in matters concerning agriculture? Do they not also expect the Department not to waste half a million pounds of taxpayers' money?

Alun Michael: The public expect those things from us, and that is what we are trying to give them. There is a little disingenuousness in the hon. Gentleman's question. The work to which he refers includes scoping the project, producing briefing and listening to consumers. It has been suggested that that money has gone into producing a new logo, and I would like to correct that. The direct cost of the new DEFRA logo was £24,000. It is part of a change in the culture and the capacity to deliver on the part of the Department.

Paddy Tipping (Sherwood): Does my right hon. Friend agree that the review being conducted by Lord Haskins could inevitably lead to further rebranding of the Department? Does my right hon. Friend accept, first, that all change causes uncertainty and that it is important to complete the process as quickly as

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possible; and secondly, that although policy and delivery may be different, it is important that, even if they are separated, there are means to communicate and link up those two aims?

Alun Michael: My hon. Friend makes a good point. First, any reorganisation—any uncertainty—causes problems because it takes people's eyes off the ball of delivery. We will do all that we can to avoid that. Secondly, on the link between policy and delivery, the wrong policy well delivered is not good news, nor is the right policy badly delivered. We need good policy and good delivery, which is what we are working on.

I do not think that there will be the necessity to rebrand the Department, but there may be changes in relation to the agencies that are part of the DEFRA family and how things are delivered, for instance, through the regional development agencies, local government and so on. The likelihood of some changes in those directions is indicated by the statement of principles that Lord Haskins has already put in the public domain.

Mr. David Lidington (Aylesbury): Does the Minister understand the justified resentment in our rural communities at time and money being wasted on rebranding exercises when, to take just one example, his Department's Rural Payments Agency is persistently late in delivering to British farmers the payments to which they are entitled and on which the cash flow of their businesses may depend? Is it not time that he started to treat effective service delivery as rather more important a priority than rebranding?

Alun Michael: I suppose that there is some resentment when people are told by the hon. Gentleman and his colleagues that rebranding is not necessary. Of course, he skips the necessity to improve the quality of services, policies and delivery, which is all part of the same issue—improving quality and improving delivery.

The point is that the new Department takes on enormously important responsibilities for the environment and all the things that are necessary for life and the quality of life; for farming and food; for rural economies; for fisheries; and for the issues that we have already talked about today. People need to understand that we are changing in the direction that the public and our consumers want. As much as the hon. Gentleman tries to obscure it, that is what we are doing—but there we are, that is the Opposition we have got.

Mr. Lidington: Indeed, the examples of incompetence and poor priorities go much further than British agriculture. Will the Minister confirm that, because the Government got their sums wrong over the cost of implementing their right-to-roam legislation, they are having to cut their vital villages grant programme in this and future years? Is it not time that he committed himself to delivering a fair deal for the countryside by concentrating first on good housekeeping and practical policy delivery rather than on slogans and spin?

Alun Michael: Well, that sounded like slogans and spin to me, but it gives me the opportunity to correct some impressions about the Countryside Agency's spending. There were fears that it would be far too high

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and that that would dramatically affect the vital villages programme. That has been brought under control. There has been a short-term suspension of activities in the vital villages programme, which I think is unnecessary. I have made that clear to the agency.

The hon. Gentleman criticises the Rural Payments Agency. It has vastly improved its performance and we are investing a great deal of money in the IT that will enable it to do so even more responsibly. I see that a certain amount has been invested in rebranding the Conservative party. I agree that that is a waste of money.


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