Part of the debate – in the Senedd at 4:25 pm on 28 June 2017.
Thank you, Deputy Presiding Officer. I am an example of Harold Wilson’s statement, ‘a week is a long time in politics’. [Laughter.] I am delighted to open today’s debate on the report from the Climate Change, Environment and Rural Affairs Committee on the future of land management in Wales, although I feel like someone going up to collect the cup and not having played in the tournament. I am grateful to all those who took the time to contribute to the inquiry. I would also like to thank the previous Chair of the committee, Mark Reckless, all the members of the committee, and the clerking team, for their efforts in delivering this report.
For over 40 years, the way agricultural produce has been farmed, sold, and financially supported has been decided primarily at a European level. The vote to leave the European Union means that Wales will, in future, have the opportunity—or the threat—to mould policies closer to home. So, what will the Welsh agricultural sector look like in five, 10 or 20 years? This report sets out a road map to overcome the immediate obstacles and an ambitious vision for the future.
The first part of the committee’s report deals with the immediate challenges arising from Brexit. What would constitute a successful Brexit for Wales’s agriculture sector and land managers? The committee identified five key elements. First, access to the single market: the risks of failing to achieve a trade deal with the EU are grave. In 2015, Wales exported over £12 billion-worth of goods outside the UK. Over two thirds of that was sold to the EU. Last year, over 90 per cent of Wales’s meat exports were to the EU—that’s excluding movement within the United Kingdom. The value to the Welsh food production economy and jobs in Wales is too great to contemplate no longer having access to the single market.
We need reassurance from the UK Government that we’ll have tariff-free access and, importantly, no quotas on exports for our agricultural producers. What we don’t want is what some other countries have—some at zero tariffs and then, above a very small number, you start paying a substantial tariff, which will only do damage to the Welsh agricultural sector. This can only be achieved if Wales has an equal voice at the negotiating table on talks regarding access to the single market. The terms have to be UK agreed, not led by Westminster.
Cabinet Secretary, you have accepted in principle our recommendation relating to strengthening existing markets and developing new markets on the basis that you already undertake significant trade efforts to develop export markets. We are facing new and significant challenges. Can you explain what you are going to do differently to address them?
The second key element is an appropriate level of funding. The UK Government must commit to maintain funding for agriculture at the current common agricultural policy level for this present cycle. Funding for agriculture should not be subject to the Barnett formula, because if it is, Wales, which is more dependent on agriculture, would lose out substantially, financially. We argued that, in turn, the Welsh Government allocate this level of funding for agriculture, with no reduction, until at least April 2021, and I am pleased that the Welsh Government has accepted this in principle. I would be grateful for more detail from the Cabinet Secretary on her response that she
‘will continue to press for the best deal for Wales’ on funding.
The third element will be a regulatory framework that supports the agricultural sector. Leaving the EU will necessitate new inter-governmental relationships at a UK level. Central to this will be the development of common regulatory frameworks agreed by each of the constituent nations of the UK, not imposed from the centre. Within such frameworks, there needs to be flexibility for us to develop policies that are appropriate for Wales. These regulatory frameworks must prevent unfair competition between producers in different parts of the UK, and reassure consumers that high animal welfare and health standards will be maintained. Cabinet Secretary, can you update us on the latest ministerial-level discussions on the proposals for a UK council of Ministers and whether or not there is support for an adjudication mechanism in case of disputes? And, when I mean ‘adjudication mechanism’, I mean something that is different from being decided by the department of agriculture at Westminster. It needs to be independent and fair.
The fourth element is access to labour and skills. Our agricultural and food producing and processing sectors will continue to need to access a full range of skills once the UK has left the EU. There is a grave risk to Welsh businesses if Wales’s labour needs are not reflected in negotiations on withdrawing from the EU. This also represents an opportunity to think about workforce planning for these sectors. Welsh Government needs to assess where skills shortages will be in future, and consider how skills and education policies can be aligned with the needs of the sector. We recommended the development of a skills strategy for the sector, which the Cabinet Secretary has accepted in principle only. I would be grateful if she could explain why she could not accept the recommendation in full.
Finally, there must be a transitional period. The changes arising from Brexit are challenging and complex. For forty years, we have operated within systems and structures arising from our membership of the EU. In its report, the committee has emphasised the importance of a transitional phase to move to any new system of support.
Part two of the committee’s report sets out a vision for what might come next. After CAP has gone, how should we support the agricultural sector in Wales? What will rural communities look like? How will communities thrive? The committee believes that we need to be ambitious and innovative, and has put forward proposals for a model of payment and support for land management that is based on sustainable outcomes. Farmers are central to the delivery of these commitments, as they manage over 80 per cent of the land area of Wales. They can help to deliver priorities such as tackling climate change, flood prevention and improving the quality of our water.
What are the outcomes a new system should support? We must tackle climate change. Measures to tackle climate change should be central to a future support mechanism based on outcomes. We want to see policies that aim to reduce the carbon footprint of food production and incentivise carbon sequestration. We must support a resilient food production sector. There is an opportunity for Wales to become a more resilient, more self-reliant food-producing nation. We want Welsh Government policies that value local production, reduce the carbon footprint and protect high animal health and welfare standards. We recommended that the Welsh Government should work with producers and retailers to increase sales of Welsh produce, including through public procurement, and that includes both health and local government as well as central Government itself.
We must maintain sustainable forestry and woodland. Land managers should be incentivised to increase forestry coverage in Wales, and future policy should also consider the role commercial forestry can play. We must protect and enhance biodiversity. Funding for land managers should support specific interventions for threatened species, habitats and protected sites and also promote a spatial approach to land management.
We must manage the landscape for the benefit of tourism, recreation and, perhaps most importantly, for the local communities. A system of support based on outcomes must encourage and improve public access to the countryside. In addition to the considerable public health benefits, this will lead to benefits to tourism and the rural economy. We must nurture the Welsh language and vibrant rural communities. Rural communities are fundamental to a thriving Welsh culture, language and identity. Protecting the agricultural sector is vital if we want those rural communities to prosper. Many of the areas with the highest density of Welsh speakers are in rural north-west and west Wales. Any future system of support must bolster Wales’s unique cultural and economic environment and the upland farming tradition. The Welsh Government must emphasise these aspects of Welsh life in its discussions with the UK Government about the future direction of policies in the UK.
In conclusion, leaving the EU provides an opportunity to realign payments for rural communities to deliver public goods such as climate change mitigation and biodiversity enhancement. Financial support for agricultural producers will be shaped differently in future. The committee’s report makes it clear that our landscapes and rural economies will continue to be managed mainly by farmers, and this should be supported with public funding. However, we can only seize these opportunities if we are guaranteed the same level of funding that Wales receives from the EU, something promised during the referendum campaign. The Welsh Government must seize the chance to design made-in-Wales policies that support the sector and reward farmers for delivering sustainable outcomes, such as protecting biodiversity and mitigating climate change. Without continued support, there will not be a managed landscape to attract tourists and a thriving rural economy to support the language and culture of Wales. This is a once-in-a-lifetime opportunity. Wales needs ambitious and innovative land management policies to deliver wider environmental benefits for future generations. I hope it can be achieved.