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Jim Fitzpatrick: I can advise my hon. Friend, who takes a great interest in the plight of the Palestinian people, as do many of us in the House, that my right
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hon. Friend the Secretary of State has today laid a written ministerial statement before the House, announcing that the Department for Environment, Food and Rural Affairs has issued guidance to retailers who wish to respond to consumer demand for greater clarity on the origins of produce from the Palestinian occupied territories. My hon. Friend will be able to obtain that guidance and download it from the DEFRA website.

Tim Farron (Westmorland and Lonsdale) (LD): I spoke yesterday to Peter Thornton, owner of the Cumberland and Westmorland Sausage Co., who like me is appalled that sausages can be processed in this country from imported meat and then labelled as British, even when the animals have been reared under conditions that would be illegal in this country. Does the Minister agree that one of the supermarkets ombudsman's powers should be to enforce both the honest labelling of food and humane animal welfare standards for imported food to match the excellent standards in British farming?

Jim Fitzpatrick: There is clearly a consensus in the House that country of origin labelling should be tighter. I think that the Liberal Democrat spokesman is trying to tease from me what the supermarkets ombudsman should or should not do when he knows that we have yet to announce the conclusions on the position of an ombudsman. That might very well be one area in which such an ombudsman, were one to come about, would take an interest.

Mr. Lindsay Hoyle (Chorley) (Lab): My hon. Friend should recognise not only the importance of country of origin labelling and welfare standards, but the importance of ensuring that when people purchase goods they know how many food miles they have travelled to reach this country, and the importance of recognising the quality of UK farming.

Jim Fitzpatrick: My hon. Friend makes a very good point. British farmers are spending more on higher welfare standards and they want to be supported in that by British retailers. We believe that the British consumer wants to support them and that we should ensure that country of origin labelling is clearer, so that British farming gets the support it deserves.

Nick Herbert (Arundel and South Downs) (Con): When meat can be imported and then labelled as British, it misleads consumers and lets down our farmers. The Secretary of State says that he wants that practice stamped out. In January he said that he was pressing strongly in Europe, and in June he told this House that he was "pushing in Europe". The Minister has just repeated that the Government are working in Europe, so why in European Union negotiations this year did the Government oppose mandatory country of origin labelling?

Jim Fitzpatrick: I do not think that that is the case. The hon. Gentleman knows that competency in those matters rests with the European Union. The Italians have already been taken to task for trying to introduce a compulsory labelling system in Italy, and Ireland and Malta have already been told that that is not possible in their countries, either. We are negotiating in Europe to try to get the best deal possible, which, I have to say, is not the same position as that of the Opposition.

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Nick Herbert: I have here the minutes of the European Council's working party on foodstuffs, dated 31 July. Let me tell the Minister what they record: the Italians, the French and nine other member states supported mandatory country of origin labelling; the UK opposed it. We knew that Ministers had failed to deliver honest labelling, but now we know that they actually argued against it. Is not it a disgrace that, for months, this Government have made cynical promises on food labelling which they have not had the slightest intention of keeping?

Jim Fitzpatrick: This is a complex issue, and the position that the hon. Gentleman describes is not that of the Government. We are doing all we can to get more accurate country of origin labelling, and we are working to ensure that the food information regulations, when they are introduced, are as tight as they possibly can be.

Canal Network

7. Alun Michael (Cardiff, South and Penarth) (Lab/Co-op): What assessment he has made of the contribution to the economy of the canal network. [305579]

The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Huw Irranca-Davies): My Department is working with the Inland Waterways Advisory Council and the waterways authorities to establish and to quantify the wide range of goods and services delivered by inland waterways. That will build on work undertaken by my Department and IWAC to evaluate those benefits. British Waterways' research estimates that its canals alone deliver public benefits of some £500 million per annum and support more than 20,000 jobs in local economies throughout the country.

Alun Michael: I congratulate the Minister on winning the support of the Treasury for ways to maintain the integrity of our invaluable canal network and expand their capacity. Does he agree that, for the future, a third sector model-a sort of National Trust for the canals-would be the best way to harness public enthusiasm for the canals with environmental and economic benefit and the stability that has been achieved in recent years?

Huw Irranca-Davies: Indeed. I pay reciprocal tribute to my right hon. Friend and other hon. Friends who are so assiduous in keeping an eye on the future of British Waterways because of the wide benefits involved, and to the Treasury, which listened to the arguments and responded to them. The third sector model has featured in the Government's announcement, and British Waterways sees the potential for this alongside the exploitation of its property portfolio. It is a fascinating way forward designed to tap into the good will towards the waterways around the country, and I am sure that we will explore it further.

Mr. Michael Jack (Fylde) (Con): The Minister will know from the reports that the Select Committee has done on our canal network of the importance of the property portfolio in contributing income to maintain the good progress that has been made on the historical infrastructure of the canal network. What assurances can he give me that that property portfolio will not in
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any way be degraded under potential new arrangements and put at risk the income needed to maintain the historical infrastructure of our canal system?

Huw Irranca-Davies: The real turnaround in the waterways has been to do with the success of the exploitation of the property portfolio under the British Waterways model, and we acknowledge that the third sector model referred to by my right hon. Friend would indeed necessitate the use of that property portfolio. It is also to do with the record investment that this Government have put in, with £800 million in grants over the past decade alone. The current state of our waterways and their maintenance, improvement and restoration, is a tribute to the work of British Waterways but also, I have to say, to the importance that this Government have placed on them.

Marine Conservation Zones

8. Ben Chapman (Wirral, South) (Lab): When his Department plans to establish marine conservation zones; and if he will make a statement. [305581]

The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Huw Irranca-Davies): The first marine conservation zones will be established on 12 January 2010, when the two existing marine nature reserves around Lundy and Skomer automatically become MCZs. Advice on potential sites from Natural England and the Joint Nature Conservation Committee is due by autumn 2011. The Secretary of State will then consult on and designate sites in 2012. MCZs, together with other types of sites, will form an ecologically coherent network of marine protected areas.

Ben Chapman: I welcome the creation of MCZs, with their rounded approach to conservation and the protection of marine life and wildlife. Can the Minister tell me whether the Dee estuary, which is already an important environmental site and a special area of conservation, will be a prime site to be designated?

Huw Irranca-Davies: I am sure that my hon. Friend will join me in welcoming the fact that, today, part of the Dee estuary-one of six sites of community importance in the UK-will be formally designated as a special area of conservation by the Secretary of State. I have written to other hon. Members who will have designations in their areas announced today. The Irish sea conservation zones regional project will consider the conservation potential of various parts of its area, including the River Dee. If there are parts of the Dee that have conservation potential-we already know from designations that there are-that are not already protected by other means, then they will indeed be considered.

Single Payment Scheme

9. Mr. Roger Williams (Brecon and Radnorshire) (LD): How many penalties have been applied in respect of the 2008 single payment scheme; and if he will make a statement. [305582]

The Minister of State, Department for Environment, Food and Rural Affairs (Jim Fitzpatrick): Payment reductions have been made in respect of some 7,748
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claims under the 2008 single payment scheme. That represents 7.3 per cent. of the claimant population of 106,500.

Mr. Williams: I thank the Minister for that response. The minimum penalty for non-compliance is now 3 per cent. of the total single farm payment for any farmer. One of the most common triggers for a penalty is failure to notify animal movements within three days. That three-day limit is imposed by DEFRA, yet the EU regulation allows up to seven days. Why is the UK gold-plating the European regulations to the disadvantage of our farmers? Why cannot DEFRA allow the EU norm of seven days for notification of animal movements?

Jim Fitzpatrick: As the hon. Gentleman indicates, penalties are imposed for a variety of different reasons. These rules are laid down primarily by EU legislation, and the Rural Payments Agency does not have real discretion in applying them. We have recently made some improvements to the scheme relating to the removal of set-aside and the 10-month rule, and we will obviously continue to do what we can to make the system as beneficial to British farmers as we can.

Nick Herbert (Arundel and South Downs) (Con): Ministers have announced that 80 per cent. of payments under the single payment scheme have been made to farmers, but given that we have estimated overpayments of more than £20 million and underpayments of more than £38 million in the scheme last year, what guarantees can the Minister give farmers that 2009 payments will be accurate?

Jim Fitzpatrick: It is a little churlish of the shadow Secretary of State not to welcome the once again improved performance of the Rural Payments Agency. It has been improving year on year, and this year it managed to pay out £1.3 billion, which is almost twice as much as last year, two weeks earlier than last year to four times as many farmers. From our point of view, that should be complimented and lauded.

Dairy Farmers

10. Mr. Nigel Evans (Ribble Valley) (Con): What estimate he has made of the change in the number of dairy farmers between (a) 2008 and 2009 and (b) 2009 and 2010. [305584]

The Minister of State, Department for Environment, Food and Rural Affairs (Jim Fitzpatrick): Although we do not have official figures on the number of dairy farmers, it is believed that the number of dairy farms in England fell by about 5 per cent. between 2008 and 2009. The source of that figure is the cattle tracing system. The trend in UK dairy production is towards fewer, larger herds.

Mr. Evans: The Minister will know that there has been a steep decline over the past 10 years. On Saturday, I was at the Gisburn auction marts to present some certificates to young farmers, who were enthusiastically showing their livestock. Clearly, however, enthusiasm will not be enough to secure the future viability of dairy farming in this country, so what sustainable future can he offer young entrants into dairy farming in the UK?

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Jim Fitzpatrick: I think the hon. Gentleman knows that, notwithstanding the concern and anxiety of young farmers coming into the industry, the British dairy sector is fundamentally sound and is expected to do very well over the medium to long term, due to efficiency improvements, innovation and investment in new products. We are much better placed than most of our European competitors, and we will do all we can in Europe and the UK to ensure that we support the British dairy industry.

Mrs. Ann Cryer (Keighley) (Lab): I wonder whether I could confirm what the hon. Member for Ribble Valley (Mr. Evans) said about dairy farming. My constituency is similar to his-not quite as beautiful, but almost-and for the past two years I have been the president of the Keighley and district agricultural show. I have been made painfully aware of the feelings of many farmers, and I am not sure whether the Minister is aware of how deep those feelings go. Not just they but their children are being forced out of the industry, because there is not a wage to be earned.

Jim Fitzpatrick: Obviously, I commend my hon. Friend for the position that she holds locally. Notwithstanding the reduction in the number of dairy farmers, the volume produced is not far short of where we were 10 years ago-13 billion litres rather than 14 billion-and we are well within quota. I reinforce the point that the UK dairy sector is much better placed than those elsewhere, and the recent trends in prices across the world demonstrate a keen rise in recent months. We want that to continue, because the dairy industry is very important to UK agriculture, making up 18 per cent. of the whole industry.

Mr. Elfyn Llwyd (Meirionnydd Nant Conwy) (PC): A few weeks ago, the awful announcement of Corus closing on Teesside triggered an immediate and proper response and financial intervention from Government. The dairy industry is dying on its feet. The milk price today is lower than the production price, and that cannot be sustained. Will the ombudsman-ombudsperson in the Minister's language-have anything to do with milk prices when examining the supermarkets' actions?

Jim Fitzpatrick: Obviously, if an ombudsman is introduced, it will very much be up to him or her to determine which issues to consider most closely. Ultimately, we believe that markets determine prices. I reiterate that the UK dairy industry is in a much better position than most of our EU competitors. A high-level group has been set up by the European Agriculture Council to examine the problems of the dairy sector, which are not exclusively UK problems and are much more serious in other member states. It is examining the situation to see what assistance can be given to dairy across Europe.

Food Production (Research)

11. Tony Lloyd (Manchester, Central) (Lab): What steps his Department is taking to support research on food production methods. [305585]

The Secretary of State for Environment, Food and Rural Affairs (Hilary Benn): The Government invest £254 million a year in food and farming research in
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England and Wales, and £50 million through Department for International Development research overseas. That covers sustainable farming-reducing pollution and greenhouse gas emissions, adapting to climate change and protecting against pests and diseases-and tackling food waste.

Tony Lloyd: My right hon. Friend mentioned climate change. Obviously, one of the enormous challenges to agricultural systems around the globe is the capacity of climate change to change agriculture totally. Are we satisfied that research in the UK will ensure security of food supply from our domestic producers, come what may with climate change?

Hilary Benn: Adapting to climate change is, as my hon. Friend indicates, an important task for the farming industry, and a significant proportion of the research that we are funding looks at that. To take a practical example, some very good research is being done at East Malling Research into the ability to produce crops using less water, which will benefit horticulture growers in the country.

Mr. Desmond Swayne (New Forest, West) (Con): What will be the impact on food production of the decision to discontinue weed cutting in the lower Avon valley? Is the Secretary of State prepared to meet a delegation of farmers to review the matter?

Hilary Benn: As always, I would be very happy to meet a delegation with the hon. Gentleman.

Food Labelling

12. Mr. David Jones (Clwyd, West) (Con): What recent discussions he has had with ministerial colleagues and representatives of the devolved Administrations on country-of-origin food labelling. [305586]

The Minister of State, Department for Environment, Food and Rural Affairs (Jim Fitzpatrick): As I said earlier, I have regular discussions with ministerial colleagues and the Food Standards Agency to ensure that we have tighter, clearer and more accurate origin labelling. I have had no discussions with the devolved Administrations.

Mr. Jones: The labelling arrangements as they stand facilitate not only the potential deception of consumers, but the theft of good will built up by generations of Welsh farmers who produce, for example, Welsh lamb. Does the Minister understand how dismayed those farmers will be when they hear of his rather lame response to the points put to him by my hon. Friend the Member for Arundel and South Downs (Nick Herbert)-that this Government have stood in the way of attempts to change those labelling regulations?

Jim Fitzpatrick: No-as I said a moment ago, we are doing everything we can to protect British produce. I also mentioned that we are celebrating Cornish sardines becoming an EU-protected food name later today. There are 39 other products, and I hope that the hon. Gentleman will come to New Covent Garden to see them and celebrate with us.

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