Select Committee on Environment, Food and Rural Affairs Minutes of Evidence


Examination of Witnesses(Questions 480-499)

MR MICHAEL PASKE, DR ANDREW CLARK AND MR MICHAEL PAYNE

WEDNESDAY 4 DECEMBER 2002

  480. In terms of this Directive and your farming practices, what powers do the Agency have over you? They cannot make you do things, can they?
  (Dr Clark) They can license quite a range at the present moment in terms of discharge consents, abstraction, a water resource use. Where I think they are weaker in terms of regulatory impact is in terms of looking at diffuse pollution. I would argue, and have argued to them many times, that diffuse pollution is not the sort of thing you can regulate about. In actual fact, because of its nature, you have to use other policy mechanisms to get to address that and you have to deal with it in partnership rather than with a big stick.

  481. Let us talk about diffuse pollution for a moment or two. This is the big risk, the big area where we need to have some change. I am not entirely clear how it is going to happen. How do you think it is going to happen?
  (Dr Clark) I think there is a whole range of different things which we can do in terms of diffuse pollution. First of all, there is a cultural change. We have to make it clear to farmers that diffuse pollution is not something you can necessarily see like a bust slurry wall or something like that; it is often quite insidious. So there is a cultural change which has to happen here within the farming community and we think the best way to get to that is through demonstration projects, through best practice, through information, advice. We think that the entry level scheme, the broad and shallow scheme, is going to have a big impact here, because that is going to help farmers implement spring cropping, under-sowing, using buffer strips, activities such as that. Perhaps most importantly it is a case of identifying fields and areas of farms which are vulnerable to soil erosion. If we can identify ways of actually conserving soil on farms, so it does not move off the field, then at a stroke we can sort out some of the problems in terms of phosphate movement and silt movement into water courses. So it is a case of trying to sort things out at source, and that is about agricultural practice and it is about how we can perhaps use minimum tillage instead of ploughing, timing of cultivations, when you drill and what the soil condition. It is really quite technical stuff, agronomic practice.

Chairman

  482. We saw a very interesting machine at Smithfield designed to do precisely that, retain the water in sort of divots.
  (Dr Clark) Yes, I have seen that.

Paddy Tipping

  483. This is about good practice and promoting good practice. You promote good practice. How can you actually make it happen? Some people, dare I say, in the farming industry are a bit resistant to change and new practices. How are we going to make these changes in the industry?
  (Mr Paske) That is what we call incentivisation, is it not, and it is a very difficult one, to actually incentivise. I think peer pressure has a lot to do with it. I think there are far more good examples of how we are having good practice in agriculture. Unfortunately the one that makes the headlines is the one that is always the worst practice. It is our job to make sure that the worst offenders are brought up to the levels of the rest of us, in that sense, and that is obviously what we as an organisation try to do, but it is incentivisation.
  (Mr Payne) I think we probably have lessons to learn from some other countries. In the States, for example, there is a far less regulatory approach and a far more local community approach, where farmers are proud to put up signs on their land to say: "I am part of such and such a catchment management programme. We are aiming to improve water quality and we are doing this, this and this." Local groups have a pride in their local areas. It is a different culture from the one that we have at the moment, where we live in terror of a policeman knocking at the door. I am sure that we are not going to abandon one and go to the other, but there is a blend of approaches and we may not always have got it right in the past.

  484. One of the incentives is a financial incentive. Is it your view, in a sense, that this whole Directive is going to speed the movement between Pillar I payments (payments for subsidies) to Pillar II payments (payments for environmental gain). Do you see this as a driver for reform in agricultural policy?
  (Mr Paske) I think the driver for reform is there. Certainly we support the driver for reform. But you have raised a very interesting angle, if I can put it that way, Mr Tipping, because obviously the whole question of the way the CAP is looked upon I think should have particular relevance to this particular piece of regulation, and undoubtedly at the present moment it does not. If there are going to be wholesale changes in the way that we farm, then the CAP, which is obviously the method which goes towards in some regards paying some of our costs, needs to be able to take that into consideration. I think that is something which is not being done as effectively as it might be.

  485. Finally, are you confident that DEFRA see this and that the Commission see this?
  (Mr Paske) No, I am not. I think one of the problems that I have with DEFRA is that they have a very small team looking at the whole of this very important and very detailed piece of regulation and one of the things that concerns me greatly is their interface in Europe. We are going to have to rely on them to be able to give us information, and it is simply because the stakeholders are not involved in all of those levels of discussion and I have genuine concerns about that. Andrew, I do not know if you want to add anything.
  (Dr Clark) Yes. We obviously have a role through our European farming organisation COPA to try to influence the agenda in Europe, but it is quite clear that the agenda is happening in Europe. That is where definitions are being made right at this present moment and DEFRA has an absolutely critical role in terms of picking up developing discussions and alerting stakeholders as soon as possible. We are a relatively small organisation, the NFU, though we are one of the larger lobbying organisations within the UK. As I say, with the legislative load that is coming along on the environment, this is just one of the pieces of legislation that we have to keep an eye on, so it is very important that DEFRA makes sure that all stakeholders, including the NFU, are engaged in developing the process rather than perhaps consult when decisions have already been made.
  (Mr Paske) Mr Tipping, if I could just add one thing on that. In the evidence we have submitted to you, we have actually given you an example of where we have spotted something which is of great concern, voiced are opinion, lobbied hard, had it removed. It came out and then at a higher level it was put back in again. That is the sort of thing which we rely on DEFRA to watch out for, those sorts situations.

Mrs Shephard

  486. Would you not agree, though, that the NFU has a practical and key role in this area, in that you are promoting, I think you said four, pilot areas; you do have contact with your membership in a way that absolutely no other organisation does; and you too could help promote good practice.
  (Mr Paske) Indeed.

  487. No doubt it would help if you knew where the goal posts are going to be.
  (Mr Paske) Thank you very much for putting it in that way. It is something I absolutely agree with, yes.

Phil Sawford

  488. You refer to diffuse pollution and that is a huge problem in trying to track that back and find out who is responsible for that. You say that we need information, we need better advice, but we have a situation where the Environment Agency may well be the body that is expected to offer that information, advice, guidance and also be the regulatory body. Is that a difficult thing?
  (Mr Paske) Yes, it is, as I have said to you before. It is a very difficult situation. Just imagine it yourself: you invite somebody to come onto your farm to give you advice, they go away and the next thing you get is an enforcement visit because you have been doing something wrong. That, believe it or not, has happened on many occasions.

  489. The same people. The whole issue of diffuse pollution is based on imprecise science as well.
  (Mr Paske) So much so that, I think again in our evidence we submitted to you, there is this classic situation where one scientist has come out and said: "If we do nothing we are still not going to achieve the objectives that we have been set." But I am sure my colleagues have something to say on that.
  (Mr Payne) I do not want to go too much into semantics on this, but there is a question about diffuse pollution, about how much the land use you choose will have an inevitable effect on water quality. Trees are a good example because nobody does much to trees. They just grow, they are not fertilised or managed very much, yet they manage to create considerable problems in some catchments, partly through the amount of water they remove, partly because they are good at scavenging atmospheric pollution out of the air, and they generate problems through acidification of waters—release of aluminium, things of this sort. But if you are going to have trees and tree plantation, and we are going to produce some of our timber, those sort of effects are to some extent inevitable. And the same is true of agriculture. If we are going to have any kind of productive agriculture, it does involve feeding the plants, it involves nutrients moving through the soil, and, it is not in a factory, you cannot prevent some degree of leakage. How much are we prepared to accept it? Are we going to accept that we have agriculture and we have a degree of leakage of things like nutrients, and are we going to set our standards accordingly? It is a question of how much is pollution and how much is just a change through land use.

  490. So farmers, unlike, say, a pharmaceutical industry or food processing, are not in a controlled environment: where they are is where they are.
  (Mr Payne) That is right.

  491. The natural surroundings, the natural resources, the natural chemicals could create difficulties between you and the regulator basically.
  (Mr Payne) They could do, depending on how the standard is set. We already have a problem with the Nitrates Directive, that the standard has been set in a way which is incompatible with agriculture under drier conditions, in the way that we practice agriculture at the moment, or it is in danger of being—it depends how it is implemented to some extent. Those sort of problems. Hopefully we will not have such a problem with the Water Framework Directive because that Directive only asks us to change things which are causing an actual genuine change/detraction from the ecological quality of water, whereas the Nitrate Directive requires change regardless of whether there is any impact on ecology or not. The Water Framework Directive is much more logical in that sense, but what you say is true. Our predecessors in giving evidence made the point that it is technically possible to remove almost anything from water on an end-of-pipe system, but there is no way you can do that in agriculture, not in an end-pipe solution.

  492. Is the science we have adequate to establish the point, the limit. I suppose, "We would not have started from here" is always . . .! But this is where we are. Is the science up to it? Or do we just use this as an excuse?—you know, "Not me, guv. It is not my fault the next farm has trees" and "It is not my fault that there is a factory three miles away" and everybody passes the buck and says, "That is not our diffuse pollution" and points the finger at somebody else.
  (Mr Payne) There are some interesting questions around that. The science is good in some areas, not so good in others. I referred earlier to the assessment of costs and benefits which have been made by consultants and that identified the very different costs to different sectors of controlling the same pollutant. If we think again of nitrates, and we compare the cost of removing nitrate from sewage and removing it from agriculture, the costs are different. One is cheaper than the other. The same is true of phosphate, although the balance is reversed. It introduces some very interesting choices about how we are going to manage this type of situation. If we are aiming for a particular target, are we going to share the misery equally or are we going to go for wherever is cheaper and expect that sector to pick up the tab? Or do we have some kind of burden sharing? There is set of very interesting questions here about how we should approach it. We are very unsophisticated in this area at the moment.

Chairman

  493. Severn Trent has told us it understands the Government is going to implement everything at the latest legal date. You point out that in fact there is scope to extend the timescale. The Government appears to be not wishing to be accused of gold-plating by advancing the dates, though some of the organisations who have given evidence would clearly like to see that. What is your understanding about the Government intentions about the implementation dates? Are you making a real case for invoking the possibility of extension?
  (Mr Paske) I will let Michael answer that, if I may, Chairman, but one of the things that is important there is the whole cost factor again. Obviously one of the things that we do feel is that the implementation date means that there is a very heavy burden of cost during that period. Michael, do you want to go on to the other point.
  (Mr Payne) I think our understanding is that on the straightforward level Government does intend to implement by the date required in the Directive and not before, but many of the key questions are not when it implements but what it implements, and that we do not know. Until we know that, we could not make a case for delay, the derogation for delay, because we simply do not know what we are going to be asked to do. If we are not asked to do too much, it could all be achieved with best agricultural practice, then we can work along with all the other partners and stakeholders to deliver the results. But if we are going to be asked to change our farming systems very dramatically, say, for the sake of argument, not to grow sugar beet in this country—not that sugar beet is a problem, so far as I am aware, but to take that as a non-controversial example because it is not generating those problems—it would have a huge impact.

Mrs Shephard

  494. Non-controversial?
  (Mr Payne) Because it is not realistic.

Chairman

  495. We are not moving into the "Anything but arms" debate.
  (Mr Paske) That is a pity.

Paddy Tipping

  496. In a sense, there is danger that we might try to micro-manage things, but there are different environmental factors across the country. In a sense, the good farming management practices that have been adopted in different parts of the country are going to be different.
  (Mr Paske) They are. Of course you are familiar with the voluntary initiative and the work that is going on there and in the catchment areas. Of course we are finding already that that is why we have 17 or so catchments in which we are doing these trials because different requirements are required by different farming practices in different areas as well. So we are already in that regard going down that route, but that is something which we shall have to look at fairly closely with the EU Water Framework Directive as well.

  497. Mr Payne told us earlier on about the signs around the area that were a community initiative. Are there marketing opportunities in the Directive, that we are producing more environmentally friendly food?
  (Mr Paske) Our experience in that is that there certainly are some people who would pay extra money for those sorts of products. The classic situation in that has been in the past organic. I say in the past because, sadly, the premiums that were available in that particular form of farming have now disappeared. We need a great education of the great British public if we are going to get them to pay more money for their food simply because it is coming from a system which is more in keeping with what they tell us they want. It is a very difficult one to be able to quantify.

  498. In a sense, your message to the Committee has been: These will have bottom line costs which we cannot pass on.
  (Mr Paske) That is exactly right.

Chairman

  499. The problems you are experiencing are presumably being experienced by farmers right across the European Union and, indeed, the applicant almost Member States. They are presumably asking exactly the same questions.
  (Mr Paske) Could I just interrupt you, Chairman. We referred earlier on to our involvement in COPA COGECA, which is the association in Europe for farming unions and also producer groups. We are taking the lead in that simply because it would appear that our colleagues in the rest of the Member States are really not up to speed on what is actually going on with this particular piece of regulation.


 
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