Select Committee on European Union Minutes of Evidence


Examination of Witnesses (Questions 80 - 99)

WEDNESDAY 11 JULY 2007

Dr Mark Avery, Dr Sue Armstrong-Brown and Mr Harry Huyton

  Q80  Lord Cameron of Dillington: So you are assuming that some Member States would support their agriculture differently from ours?

  Dr Armstrong-Brown: I think it is very likely, although that is my opinion rather than a fact. But people who argue very strongly against reform may do so partly because at the moment there is no cost to the State from Pillar I payments, apart from what they are contributing to the overall budget. If that state had to contribute part of the cost of Pillar I payments but Pillar II payments were less restricted in that way—that would help remove the brake on Pillar II payments, caused by having to co-finance them at the moment, with the policy weight now falling on the objectives serviced by Pillar II—would it not make more sense to make that easy to be delivered through European funding streams and, if the Member States strongly wished to have a large Pillar I, ask for a contribution from the Member States to support it? It is cutting the same size cake in a different type of pattern.

  Lord Cameron of Dillington: I think I had better leave it there.

  Q81  Lord Moynihan: Could I ask you and your colleagues to travel somewhat further afield than Spain and Portugal and the natural habitats of Eastern Germany into the rather complex area of world trade? It was noticeable in your very helpful evidence that you did not comment on the implications of changes taking place in the world market as a result of trade liberalisation, the potential impact of rising real incomes and a high demand for renewable energy crops, et cetera. What sort of impact do you feel this might have on the environment in Europe, and indeed globally?

  Mr Huyton: Globally, the biggest drive of biodiversity decline is agriculture expansion—agriculture expansion in places like Brazil and Indonesia, which is feeding the global commodities market, and we know that an increasingly liberalised agricultural market will accelerate that pattern. The European Commission did a sustainability impact assessment of the Doha round for trade negotiations and one of their key environmental findings was that we would accelerate rainforest destruction. So that is a fact. Of course, at the same time the areas which are less competitive at the global level would experience more of a depression, which could be particularly worrying if it is those areas which are practising the traditional form of agriculture which is delivering environmental benefits. That is one of the reasons behind our thinking that these areas need specific targeting in Europe, because I suspect that will be the biggest risk from the biodiversity perspective of increased liberalisation in the EU. There is this bigger question about commodity prices going up as a result of changes in diets and increasingly a growing population. There is not a lot we can do about that. But on the other side an increased demand for biofuels is driving commodity prices up, and there is more we can do about that. The biofuels market is a publicly created market. It is created through public intervention and subsidy in the form of tax incentives, obligations, and such like. So we have more of a say there and I think that, if we start seeing serious problems in terms of habitat destruction at the global level, then we will need to rein in the biofuels market. We have been urging the Government here and the European Commission to ensure proper monitoring of land-use change globally, agriculture expansion and intensification is in place so that we can see the response to these two patterns and so that we can inform our domestic policies on biofuels as a result of that.

  Dr Avery: It is difficult to see that the outlook is particularly rosy, is it not? We live on a small and beautiful planet. There are already more than six billion people living here. If everybody had the same standard of living that we have in this country, we would need three planets. The population is growing and going to grow. What has happened because of that in history is that we have eaten into rainforests, savannahs and natural habitats to a growing extent; and it is quite difficult to see that that is going to stop, which depresses me enormously. But I am afraid the RSPB does not have the answer to that up our sleeves, and I am not sure who does. It would be wrong for us to come here and say, "Oh, it's all very simple and it's all going to work out OK," because my suspicion would be that it is not.

  Q82  Lord Moynihan: Is the global land-use change going to be covered in the document you referred to earlier, namely the launch in Brussels with your colleagues on the 27th?

  Mr Huyton: It is one of the key challenges to agriculture policy in Europe's rural areas which we outline in that document.

  Dr Avery: You did mention biofuels, and maybe we should say just a little more on biofuels now. Biofuels vary enormously in their greenhouse gas emissions savings. They have been treated as all being the same, and they are not. Clearly, one of the worrying things is that growing biofuels creates an incentive to cut down more of tropical rainforest than we are doing already: and rainforest destruction counts for about 20% of greenhouse gas emissions at the moment. So it would be bizarre if we cut down rainforest and create greenhouse gas emissions from doing that to create biofuels, some of which have a rather poor record themselves in saving greenhouse gas emissions, but that seems to be one direction we might be heading in. I think some of the enthusiasm for biofuels is a con. It is an environmental con and clearly it will create great pressure on food production globally as well. You cannot grow food and biofuels on the same bit of land very easily, and that does come down to how many people there are on this planet and how much we are trying to get out of it. So I am depressed, I am afraid. I am usually an optimist, but this seems too big a problem for us to crack very easily.

  Q83  Lord Moynihan: I appreciate your frankness on the subject. There is a very specific point, which goes back to your comments earlier on the high natural value of farming and the decoupling of support that would lead to a loss of high natural value farming. You suggest that the Less-Favoured-Area payments should be designed to protect this sector. I wonder if you have made an analysis on whether or not this can be made consistent with the `green box' requirements of the WTO or not?

  Dr Armstrong-Brown: There is an issue there, because of the way in which the `green box' is constructed. We do believe in the short-term that is not the biggest problem for these areas. The problem is to find some way of retaining them until any possible legal wrangle can be untangled. It is possible there might be an issue, but we do not think it is a particularly serious one and there is certainly much more urgency to get some payments in place which would actually retain these first. In the longer run, the ideology behind the setting for the `green box' and the world trade rules which relate to agriculture, it is worth asking questions about whether it is going to guarantee the delivery of the things which are emerging as priorities now, the social and environmental things which are emerging as priorities now. One certainly would not want to throw the baby out with the bathwater, but if it becomes impossible to support areas of land management which are delivering huge environmental good but are not economic, surely that is wrong? We would then start to challenge the rules around the green box and suggest that income for GOM payments were not necessarily the best way to sustain these systems.

  Lord Moynihan: Thank you very much indeed.

  Q84  Chairman: If we are talking about a concern with global warming, maintaining livestock on the uplands is not a very good idea, is it? The fewer cows, the better?

  Dr Armstrong-Brown: The greenhouse gas emissions from the livestock? I think the few which are in the uplands do not really emit quite as many as the vast numbers in intensive feed herds in the lowlands.

  Lord Plumb: Are you including sheep in that, Chairman?

  Chairman: Yes, I include sheep.

  Lord Moynihan: It depends on the quality of the food production!

  Q85  Viscount Brookeborough: In your paper, in the Rural Development paragraph, you say that funding inappropriate afforestation is not a good thing. Could you go a bit further into that, because quite clearly the clearing of the rainforest is a very, very bad thing. What in the UK is `inappropriate afforestation' if you accept that we desperately need timber from somewhere, no matter how much paper you recycle, and so on?

  Dr Avery: I think in the past, in the same way that we have encouraged unsustainable farming practices, we have encouraged unsustainable forestry. So afforestation in the uplands, for example—which is a terribly bad place to grow trees, actually—they do not grow very good trees—where you need to drain soils in order to be able to grow the trees has led to increased run-off.

  Q86  Viscount Brookeborough: But there is a tremendous amount of work going on to, if you like, in layperson's language, create sponges and the run-off from forests which are currently being planted, or re-planted, is very, very much less.

  Dr Avery: This is just like agriculture, it depends on the forestry, does it not? So, rows and rows of sitka spruce trees on the side of a hill which has had moor grips put into it to allow them to grow there probably is not very sustainable forestry and increasing tree growth across the uplands with native species might actually lead to carbon sequestration flood risk management and a richer environment and a better landscape.

  Q87  Viscount Brookeborough: I am inclined to agree with you about trees on the uplands, and so on. But unfortunately we have got to have them somewhere. Are you then suggesting that we should grow it on lowlands, or where, because you have already said that biofuels being grown on lowlands will take away food production and we could run into problems on that? Somewhere these trees are going to have to grow.

  Dr Avery: I think we will have to take that away and think about it some more and come back to you.

  Q88  Chairman: What you have said, then, about forestry is fair for, say, 20 years ago, but forestry policy has changed significantly over the last 10 or 15 years?

  Dr Avery: It has, I think that is fair. But we are left with the mistakes of previous forestry policy and the Forestry Commission and landowners are now left at the felling of the first crop of trees with the decision of whether they continue with forestry or go back into some other land use in many of those places.

  Q89  Viscount Brookeborough: But we still have the lowest percentage of our land of any European state under forestry, and therefore it is a Government aim to increase that, because otherwise we are relying on other forests which are unsustainable, such as rainforests?

  Dr Avery: Yes, I think that is true. I am not sure that, if we were starting from scratch, we would have a State forestry service now. We do not have a State agricultural department or a State fishing fleet. The Forestry Commission was brought into being after the First World War because we were worried that we needed a strategic supply of pit props. We do not need those any more. Many of the places where we are trying to grow trees at the moment are not the best places to grow them; and, if we are looking at the pure economics of forestry, we probably would not do it in many of the places where we are doing it.

  Q90  Chairman: British forestry is not economic forestry any more, is it? It is recreational and environmental forestry—in England. There is virtually zero commercial forestry in England being planted now.

  Dr Avery: I think there is almost zero economically profitable forestry, but the State still owns large amounts of land and manages large amounts of land, and the Forestry Commission's aim is to grow trees on that land. We would actually say that there might be better uses for quite a lot of that land than growing trees.

  Q91  Lord Palmer: We are nearly at the end and I was intrigued to hear what you were saying about biofuels. I must remember to send you the latest press release from the NFU about how, if the land taken out of set-aside was to grow enough oilseed rape to meet our RTFO, a lot of your fears in fact, I think, would be put aside. But a yes or no answer, please: are you concerned that support for the production of biofuels would actually have a damaging impact on bird life? You used to say it did, but you have slightly changed your stance over the years, particularly when Lord Bach was Minister! I put that on the record.

  Dr Avery: If it is a yes or no answer, then the answer is yes, we are still concerned.

  Lord Palmer: What do you consider to be the main challenges for agriculture as a result of climate change? And what role might a new Rural Development policy based on the current EAFRD play in assisting farmers to adapt to these challenges?

  Q92  Chairman: That could be a "Don't know" if you like!

  Dr Avery: We could have a go at that, but it would be fair to say that nobody, I think, who could appear before you would know the answers with any great certainty here. Clearly, some of the challenges that climate change will set for agriculture will be in moving to new crops and new ways of farming. So maybe one can just look a bit further south in Europe to see what British agriculture might look like, but it may not be quite that simple. Another challenge will be that agriculture, like all other industries, will have to be looking at its carbon emissions and looking at ways to do its job with lower emissions. I think, as we touched on earlier, there are some quite big opportunities for land management in terms of looking at whether places like the uplands have a different future, which is in being carbon sinks, and managing upland peat and soils in different ways to stop them being degraded, to stop them drying out, to stop them emitting greenhouse gases, maybe a softer management approach to restore those uplands so that they are not adding much carbon—they may be adding carbon to what is there at the moment, but they stop losing carbon. There is quite a lot of work which is now beginning to be done to look at those issues and it may be that upland farmers will be paid for farming carbon rather than farming sheep in 20 years' time. That might be one of the things that land management delivers as a public good. Flood risk management may be another thing which is produced in that way.

  Lord Palmer: Thank you very much.

  Q93  Lord Cameron of Dillington: I cannot let you get away with just a "Yes" answer to the previous question. Could you expand on why growing crops for biofuels is damaging for bird life?

  Dr Avery: We would love to. We were not asked to give a wider answer.

  Q94  Lord Cameron of Dillington: No, I realise that. I thought you were getting away too easily!

  Mr Huyton: One thing I would say is that, while the NFU is saying that they can produce enough to meet the Renewable Transport Fuel Obligation, there is a reason why all our processing plants are being sited next to major ports and that is because a lot of it will come from outside the UK and outside the EU, because biofuels is a global commodity market which the UK cannot necessarily compete on. So that is just something to be aware of. It is not where the market will deliver the biofuels from, unless the market is regulated in some way. We are concerned in that short-term biofuels do need land, so they will need to be grown on set-aside. Set-aside has inadvertently had a range of benefits for farmers in particular throughout Europe, so that is a worry. Also, it is the first sign of this land use pressure. Biofuels need land and I think the NFU's own calculations suggest that you would need 1.2 million hectares of land producing oilseed rape and wheat to meet this obligation, and that is a lot of land when you consider how much arable we have in the UK. So this idea of losing habitats that are important—in the UK that might be set-aside and in Eastern Europe that might be permanent grassland, which would be a very big worry from the biodiversity perspective. It is one of our most important farmed habitats in Europe. Then perhaps in the longer term there is an idea that biofuels, and bioenergy as well, will mean new crops, which will represent quite a big ecological shift in terms of the nature of our farmland. So Miscanthus and short rotation coppice bring with them a range of challenges for wildlife that we need to make sure that we manage. We know very little about what kind of habitat Miscanthus will offer for wildlife. We suspect it will be pretty poor because it is extremely fast-growing dense grass which has got very little space for any kind of wildlife to access, but the research needs to be done so that we know what the impacts of these new crops will be and how we should manage them. There is also a concern particularly of these new perennial crops being planted very close to processing stations and creating monocultures in permanent crops.

  Dr Avery: We are not against biofuels and we would say that there may well be a place, and probably there is a place, for the right type of biofuels in this country and abroad. But it would be wrong to say that all biofuels are good and they are all going to be great for the environment, they are all going to save lots of greenhouse gas emissions and therefore they are the green crop which will have no downsides at all. Not all people are the same, not all environmental organisations are the same, and not all biofuels are the same. We would be nervous that, with the bandwagon that is biofuels at the moment, too many people jump onto it without thinking about it, particularly since, if biofuels are going to have a bigger place in UK farming, it will only be if public money goes into supporting them. And, if public money goes into supporting them, we ought to be very clear about their greenhouse gas emission benefits (and not all biofuels are the same) and we ought to look at their other environmental benefits and disbenefits (and not all biofuels will be the same on that basis either). So let us look carefully and properly, and saying, "Let's use all of next year's set-aside to grow biofuels" does not feel like the most informed and careful look at the subject to us.

  Q95  Viscount Ullswater: Is that the same attitude you take towards the growing of GM crops?

  Dr Avery: I am happy to touch on that. The RSPB opposed the herbicide-tolerant GM crops, the three crops which were proposed and went through the farm-scale evaluations, and I think actually the results of the farm-scale evaluations showed that our worries about those particular crops were indeed justified, which is why they did not receive Government approval to go ahead. But GM crops generally we are neutral on. In fact, we have quite close contacts with the biotechnology firms and I always suggest to them that the challenge for them is to come forward with a GM crop which we could support because it has big environmental benefits, and that is possible. But none of the companies has yet come close to coming to us to say, "Here's one that you're going to like."

  Q96  Lord Cameron of Dillington: There is a gap in the market!

  Dr Avery: Absolutely, it is a gap in the market. It takes quite a long time to develop the crop.

  Q97  Lord Plumb: One of your major concerns was the use of fertilizers and pesticides, and so on and so forth. Do you not accept that, if we move towards genetic modification, that in turn will reduce the quantity of fertilizers quite considerably and in many areas almost eliminate the use of pesticides in the way that they do? But on that particular point, reading your evidence, you are concentrating on those areas. Do you not accept that season by season, as we see the changes, particularly taking the present season, the big problem at the moment is blight, blight in potatoes? We shall have no potato crop in this country or in other parts of Europe, Holland in particular, where there is not spraying dealing with blight. Farmers are having to spray every third day to try to control the blight. To say, therefore, that we should either eliminate or considerably reduce this is totally ignoring the fact that you have got to live with nature and not try to do things which are slightly different?

  Dr Avery: There are several statements and questions all together in what you said.

  Q98  Lord Plumb: Well, answer me yes or no!

  Dr Avery: I certainly cannot answer yes or no to that. In terms of inputs to GM crops, we would still say that you need to look at these on a GM-crop-by-GM-crop basis. The rhetoric from the biotech companies about herbicide-tolerant crops was that they would need less pesticide, which was indeed true, but less pesticide that would have a more harmful impact on the environment because those crops would have been modified to allow broad spectrum herbicides to be used which would kill all the weeds. That was what they were supposed to do. So this is like saying that drinking a shot of neat alcohol will do you less harm than drinking a couple of pints of shandy. It is not true. It is a smaller amount of alcohol or pesticide, but the impact it has is a lot bigger. So our position on GM crops is that we are philosophically neutral, but we await with interest the industry coming along with the GM crop which the environmental movement can get behind, and probably the RSPB would be one of the first environmental organisations to back a GM crop that really was good. But I have not seen one yet. I have not even had a sniff of one yet.

  Q99  Lord Plumb: Go to India and look at the cotton crop and then you decide.

  Dr Avery: That may be true, but not for the UK.


 
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