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


Examination of Witness (Questions 40-59)

RT HON MARGARET BECKETT MP

2 NOVEMBER 2005

  Q40  Lynne Jones: What is the mechanism for that?

  Margaret Beckett: It varies. It can be official and ministerial cabinet committees, it can be correspondence, joint working; a range of the usual techniques that apply in any organisation.

  Q41  Lynne Jones: It sounds a bit unstructured?

  Margaret Beckett: Sometimes it is structured, sometimes it is not. What matters is does it work: do we get the results we want?

  Q42  Lynne Jones: We have not got the Climate Change Review, so it has not worked so far.

  Margaret Beckett: If you would rather have had a Climate Change Review that was less sound, then we could probably have produced that.

  Q43  Mrs Moon: I wonder if I could take you back to a point you touched on there in terms of planning departments. I wonder if Defra issues any advice or guidance to planning departments in relation to environmental issues when it comes to looking at planning applications in particular for environmental assessments. Does Defra issue any proformas or have any standards that they advise planning departments to work to?

  Margaret Beckett: No. I think I would be right in saying that we do not give advice about planning to planning departments, but what we do is work with the Office of the Deputy Prime Minister to discuss with them and work with them on the advice that they give and how we can do more to embed environmental issues in that. We do have an input and we do have an influence, but we have it by that route. You can imagine what local authorities would say if they were getting advice from a string of different departments about one set of issues; so things are channelled through the department that deals with these issues with local government.

  Q44  Chairman: Before we leave the environment and to move to capital, Lynne Jones probed you a second ago about bio-fuels. The Government triumphed at the fact that there is going to be a 5% inclusion by 2010 as if this is some great new policy initiative. This Committee has probed the area of bio-fuels on many occasions. Could you enlighten us as to what your estimate is of the UK bio-ethanol content of this target that will come from indigenous UK produced raw material?

  Margaret Beckett: What I am going to say first is that I am not aware that a specific target has been announced, but it is clear that lots of people are discussing what such targets should be and how they should be implemented.

  Q45  Chairman: This was a reference to the European Directive. It was pretty clear on the media yesterday when this thing was announced. It sounded as if the Government were saying, "We are now about to do this amazing new thing. We have suddenly discovered bio-fuels", which I appreciate, in the case of your department, you have been long-time protagonist for.

  Margaret Beckett: We have just had the report of . . .

  Q46  Chairman: If there is a doubt, let us get the facts on the table. What is the plan for inclusion for the United Kingdom?

  Margaret Beckett: I hope that there will be a reference to this issue in the Climate Change Review, and so you will appreciate that I do not want to pre-empt that.

  Q47  Chairman: At this moment in time there is no government commitment to a specific number for the inclusion of bio-fuels, either in bio-diesel or bio-ethanol?

  Margaret Beckett: There is, as you quite rightly say, the Directive, but, of course, the path that we pursue to meet the goals that are identified for the European Union as a whole in that Directive is not a path that we have set out in detail. The question you asked me, which is about UK content, is one of the most pertinent and interesting, I think, in that area. As I say, you will you know, I think, we have just taken receipt, although I readily admit I have not had a chance to study it, of the Task Force Report by Sir Ben Gill.

  Q48  Chairman: That was on bio-mass and not on things like bio-diesel?

  Margaret Beckett: I was about to say, that is about bio-mass, but these two issues, I think, in a sense somewhat come together as being an area—they are what I call Defra issues—where the potential interests of British agriculture in the long term and the potential interests of the environment . . .

  Q49  Chairman: If we are going to get somewhere near inclusion by 2010, that is five years away. On bio-ethanol there is an interest shown by British Sugar in building a plant, and I think a planning application is about as far as we have got. That one plant is not going to be able to produce sufficient bio-ethanol if there were to be a target by 2010 of 5% inclusion, but is it still an objective of your department, as witnessed by the very nice coloured brochure you produced three years ago advocating the use of bio-fuels, that the United Kingdom should have a significant role through its own indigenous production both for bio-ethanol and bio-diesel of its own bio-fuels industry?

  Margaret Beckett: That is something that very many people would like to see.

  Q50  Chairman: But would you like to see it?

  Margaret Beckett: Yes, I would.

  Q51  Chairman: And you are still committed to it?

  Margaret Beckett: It is something that I would like to see. What we are considering and what we are examining is what is the potential, what are the tools that could deliver that potential, and I am constantly hearing from various people in the farming community—you mentioned a potential proposal from British Sugar, but I am told that there are other players who are expressing interest, and one of the things that I think it is important to do but we have not yet finished doing is to explore what this potential is.

  Q52  Chairman: What was Defra's reaction to the Public Accounts Committee Report saying it was a complete waste of money subsidising bio-fuels from the UK?[2] Did you agree with that?

  Margaret Beckett: I am always reluctant to in any way appear to dissent from or criticise the observations of any select committee of this House, least of all the PAC, but I think it is evident that while that is a perfectly legitimate point of view it is not a point of view that everyone shares.

  Q53  Daniel Kawczynski: Mrs Beckett, just before I come on to my question on CAP, you mentioned in a previous question that your Department is very keen to help work with the Office of the Deputy Prime Minister in planning applications when it is an agricultural project. This is obviously joined up government, but I have to tell you that in Shrewsbury it took the local authority three years to get the Deputy Prime Minister to adjudicate on our new livestock market. I would hope that in future your Department would take a really keen interest in forcing the Deputy Prime Minister to make these decisions on a quicker basis if they are of great concern to the agricultural community.

  Margaret Beckett: I think the issue that was raised with me was the issue of environmental aspects of planning, but I am conscious that the Office of the Deputy Prime Minister is anxious to speed up the way in which planning applications are dealt with, consistent, of course, with proper, thorough and sound assessment of such planning applications, and is very mindful of some of the delays that have occurred in the past. I am sure you will be aware, even though you are a comparatively new member in the House, that for all of those who want to see speedier consideration of planning applications when people are less than enthusiastic about them, there are others who say, "No, no, no, we do not want anything rushed. We want proper scrutiny. We do not want any short-cuts." It is not an easy balance to strike, but I know that the Office of the Deputy Prime Minister does try to strike that balance.

  Daniel Kawczynski: I take that upon on board. Moving on to the question which is on the Common Agricultural Policy, both yourself and the Prime Minister have spoken about the need for change to the CAP, but we have not heard much of the nuts and bolts of that, the actual substance. Could you kindly tell us what you envisage from reforms to the CAP? That is my first question. My second question is this. I think, politics aside, it is a great privilege to have the Secretary of State for Agriculture to come to one's constituency. My farmers, for example, are extremely interested—most of them voted for me, but they would be extremely interested to have the opportunity of meeting the Secretary of State for Agriculture. I wrote to your Department over a month ago to kindly ask you to come to Shropshire. I have not received a reply. Would you very kindly come to talk to my farmers about CAP reforms at the opening of our new livestock market?

  Chairman: He may be new but is taking every advantage!

  Q54  Daniel Kawczynski: Would you, on the second point, very kindly come and talk to my farmers about CAP reform in the New Year when the livestock market is open?

  Margaret Beckett: First of all, Chairman, the request was: what do we envisage from reforms? I think the first thing that I ought to say is that I am very conscious indeed that our farming community are engaged in a process of reform, which is on-going now as a result of the negotiations which took place in 2003, and that there would be great anxiety if people thought that in some way that process of reform and change on which we are embarked was going to be torn up and we were going to start all over again. The first thing I ought to say is that the emphasis that came out in the sense of the discussions on the financial perspective is that we ought not to leave assumptions about the handling of the overall resources of the European Union unscrutinised. What people were and are talking about is at what point, as we approach negotiations on the next financial perspective, do we say that we should look again at how the European Union uses its resources, and it is in that context that the issue of what happens with regard to the Common Agricultural Policy was raised. There is not any doubt that a great deal has been done to begin to address some of the worst aspects of the Common Agricultural Policy as we have historically known it, not least, as I mentioned earlier, the break of the link between production and subsidy, but it is very much the case that in the UK we would have liked to see that process of reform proceed further along the lines that we originally proposed. These are the ideas that shape our approach, and to a certain extent I think it would be fair to say something of the approach of successive British governments in that it has long been the view—I hope I am not doing anybody an injustice, and if anybody want to disassociate themselves from that please feel free to do so, but it has long been the view that we ought to have less resources devoted to this particular area, that the resources that do go in should go, not so much as they have done in the past to production and subsidy, and that has begun to change, but that we ought to put more resources into stimulating rural development in its wider sense and also into environmental support. The sort of shorthand phrase that we now tend to use for it is that, where there is public money, the public money could legitimately be used to purchase public goods, and in that context I put things like the undoubted role that farmers have as the custodians of our landscape. So there are a range of things there where we would prefer to see resources directed rather than in some of the ways that it has been directed in the past, and that would be the overall kind of direction and intent, but we recognise, I would anticipate, there will always be a need for some common framework of policy: because otherwise you undermine the single market and you create a position where there could be uncompetitiveness and there should be disadvantage within different Member States, depending on how the agricultural policy was pursued.

  Q55  Daniel Kawczynski: On the second point?

  Margaret Beckett: On the second point, of course I am always honoured to receive invitations to visit honourable member's constituencies. I cannot at this time give you an undertaking that I would be able to come to your constituency in the New Year or, indeed, on the date when the new livestock market is being opened, not least because, if I may say with the greatest respect to your farming constituents, I am not the Secretary of State for Agriculture or, indeed, the Minister of Agriculture, I am the Secretary of State for the Environment, for food, which includes the whole farming industry, fishing, forestry, et cetera, and also for rural affairs, and I know this is a source of regret to some in the farming community, but I do have a different remit and I have a much more international remit than did my predecessors. The Agriculture Council itself meets about 12 times a year, the Environment Council somewhere between six and eight times a year and during my 10 years of this post, as it happens, on the environment side there are always various international conferences, like the Commission for Sustainable Development which meets in the spring in New York and the Climate Change Convention which always meets towards the end of the year, but in both the major areas of my portfolio that have international dimensions there have been a series of major international conferences and events—the Johannesburg World Summit, the World Trade Talks. It is the Foreign Office and the Department for International Development who are probably the people who are most directly concerned internationally, but we come pretty close to them in the international agenda, and that inevitably restricts the amount of activity that my predecessors would have undertaken on the domestic front.

  Daniel Kawczynski: On the CAP reforms, I would actually like to congratulate Defra. I have had a personal experience of the way that Defra has helped farmers. My own wife has turned a redundant dairy farm into an equestrian centre. She received a grant from Defra to do that and she now runs an equestrian centre with 30 horses. I have to say that the experience we have had from Defra has been absolutely superb on that front.

  Chairman: You do not want an official opening of this as well, do you!

  Q56  Daniel Kawczynski: No, but I am always happy to see Mrs Beckett in my constituency. I wanted to put that on record because sometimes secretaries of state come and it is just a process for us to have go at you, but when there is something good, I have to tell you, it is very, very good. I hope when the Prime Minister talks about CAP reforms that the Prime Minister and yourself realise that underpinning CAP reforms, these sort of projects, to diversify, are real success stories for the future of our country, and I just wanted to tell you that I think that is very good and I hope you continue with those sorts of projects.

  Margaret Beckett: I am extremely grateful to you for two reasons. One is because I am genuinely appreciative. It is entirely understandable, and this is not a criticism of anybody, but inevitably the process of questioning, whether in the House or in select committee, tends to be to focus on the failures, the difficulties, or whatever, and my staff very rarely indeed hear a word of praise from the political sector; so that will be very welcome and I am sure it will probably be a front page lead in our departmental magazine! Secondly, I am particularly grateful to you because I know that there are such schemes, and I know we do give grants, and, for one reason or another, I never seem to meet anybody who has got one or is grateful, so I am personally very grateful to you.

  Q57  Chairman: Can I pursue that in a little more detail to get down to the nitty gritty again. I am sorry to disturb the love-in that is going on here! In terms of the statement that the Prime Minister makes that the CAP must have further reforms, what I am struggling to understand is what do you see in specific terms are the next areas for reform? You have presided over one of the biggest single changes in the configuration of the CAP since it was first brought into being—the decoupling, the digression, the modulation and all of the current purchase of environmental goods are very welcome and necessary reforms—but is this reform designed to reach a number lower than the present financial perspective—is that the objective—or is it some other objective in terms of what the CAP is designed to do? I am not clear what reform actually means.

  Margaret Beckett: You will have to forgive me, Chairman, if I am very cautious here, because I must not stray into the territory of negotiations on the financial perspective, which are a matter either for the Prime Minister or for the Chancellor. All I think I can really say is, first of all, that of course, because they came up in the context of the financial perspective, it is in part about how the budget of the European Union is used that stimulated that dialogue, and one thing, I must admit, I had not immediately appreciated (and it quite shocked me when I did, and I am not sure how widely it is known because of the way that these things tend to be reported in the broad brush and not in the detailed picture), I had not fully appreciated that certainly in the final set of proposals put forward by the Luxembourg Presidency there were cuts in the budget for research and development and for, I believe I am right in saying, things like skill training, and so on. So when our Prime Minister was saying, "Look, if we are to adapt to the new working of the global economy, these are the areas where we should be putting investment rather than in some of the ways that we have put in hitherto", not only were we not putting more money into those areas but an integral part of that proposal was to cut the money going into those area, and that, I think, did inevitably raise the question, "Oh well, if we are not going to make those cuts or we do not think those cuts should be made and, indeed, we think there should be expansion, where are the areas where we should look for greater efficiency and greater change?" It is in that context that it came up. I do not think there is much more I can say to you at this time about the direction that we would wish to see things go. As you know, we have the sugar discussions now. There are further discussions about some of the specific regimes—fruit and vegetables, wine, I think, from memory—in the pipeline as some of the bits that were not dealt with in the big reform negotiation in 2003 but which we have agreed we should look at, and I would hope that the same kind of pattern of approach to those particular regimes would be followed as was followed in the main negotiations. That is on-going work and, as I say, there is not much I can add really to what I said earlier.

  Q58  Chairman: Before we leave the CAP, you, being, I am sure, an early riser like me, have been listening with avid interest to Farming Today's discussion about food and security, and I was very interested, because a member of the public very kindly sent me a copy of a letter that they had received from your department, signed by a Sunni Mitra, and in this mouth-watering paragraph in this letter it says that your department takes food security very seriously and that Defra economists have begun to research the issue around food security and to review the academic literature on this subject. It goes on to say, "It is a complex issue, which ranges wider than simple concepts of self-sufficiency. This research will not be complete until the first half of next year." Are you aware of this work, what scope does it cover and are we going to see some kind of public manifestation of the outcome of this study?

  Margaret Beckett: I am not massively aware of it. I certainly cannot give the Committee any details, but if you would like a note about it, I am sure we would be very happy to provide one.

  Q59  Chairman: I think we would be interested indeed.

  Margaret Beckett: We have recently upped the staffing of our economics side of the Department, and this may be partly in consequence of that.


2   Committee of Public Accounts, Sixth Report of Session 2005-06, Department of Trade and Industry: Renewable energy, HC 413. Back


 
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