Questions now from the party spokespeople. Conservative spokesperson, Paul Davies. 

Diolch, Llywydd.

Cabinet Secretary, one of the biggest challenges facing Welsh farming is the Welsh Government's proposed designations for nitrate vulnerable zones, which, if implemented, could impose huge burdens on farmers and, as a result, force many out of business. Given that the Welsh Government's consultation ended almost a year ago, could you explain why the Welsh Government has yet to come to a decision regarding the proposed NVZ designations, and will you now commit to bringing a statement to the Assembly Chamber before the end of the year on the Welsh Government's position and explain why this decision has taken so long?

Well, I've already given that commitment several times in this Chamber, so I'm very happy to give that commitment that I will certainly bring a statement forward before the end of this term, so within the next two weeks. The reasons why it's taken so long is that we received a large number of responses to the consultations, and we also received a large number of people's views and considerations to do things differently. I saw a presentation just last week—people are still coming forward with ideas—and, as I'm very open to these ideas, I wanted to give considerable time and consideration to these views.

I'm very pleased that the Cabinet Secretary will be bringing forward a statement to this Chamber by the end of the term, and I look forward to that statement.

One of the concerns surrounding these proposals is that adhering to the slurry/manure storage capacity rules could see farm businesses burdened with large capital investments in storage facilities in order to be compliant. Indeed, the National Farmers Union tell us that the average cost of upgrading facilities is almost £80,000. If the Welsh Government presses ahead with these designations, can you tell us what funding will be put aside to help those farmers forced to comply with any new capacity rules, given that the overall funding allocation to your budget has actually been reduced?

I think there are a couple of points that we need to consider there. Already I have been having discussions around the capacity of farmers' slurry pits and I think many of them are at a level that exceeds what is required at the moment. So, I've seen that cost of £80,000; I've also seen the cost of £150,000. So, again, I think we need to be realistic and pragmatic about the cost, but I do recognise that we might have to give help in certain areas around investment in the slurry pits. So, again, it's something that I've been discussing with officials to see how we can help with funding, where required.

You'll be aware that some Welsh farmers have already been taking steps to address the issue of nitrate pollution and to improve water quality. There's evidence of some very good work being done across Wales. For example, the Wales catchment-sensitive farming demonstration project is an example of a very successful voluntary scheme that was well received by farmers. Given that your consultation didn't consider voluntary arrangements and voluntary schemes, can you tell us why the Welsh Government didn't consider implementing a voluntary approach on this matter? Will you now consider working in partnership with farmers and with the agricultural industry to adopt voluntary measures instead?

I've constantly worked in partnership with the agricultural sector and with farmers. So, again, that's been something else that we have been considering over the last year, when we've looked at the vast array of responses that we've received. We did receive over 250 responses, but I've also had many conversations on a one-to-one basis and with groups of farmers over the past years.

I had to do the review; it is a statutory requirement under the nitrates directive. But we've also seen some significant agricultural pollution incidents this year, so I've had to bring everything together, and it's about getting that balance. But, as I said to the Member at the outset, I will be making a statement within the next two weeks.

The UKIP spokesperson, Neil Hamilton.

Diolch yn fawr, Llywydd.

Just carrying on with NVZs, as the Cabinet Secretary knows, this is causing considerable concern amongst those who might be affected by it. I would just like to support the approach that has been taken by our colleague from Preseli. It is open to the Cabinet Secretary, of course, as a consequence of this consultation, to avoid a heavy-handed approach, if she's convinced that we can achieve the objectives of the habitats directives and environmental directives that are concerned here by voluntary means.

I'm sure she's aware of the experiment that has been undertaken in the Cleddau by farmers, which has successfully reduced nitrate levels on their farms to below those that are the limits in EU rules and regulations. They've achieved these outcomes at a fraction of the cost that they would have incurred if they'd had to install massive new vats for the storage of slurry et cetera. So, can she, without wishing in any way to anticipate the results of the inquiry, reassure us today that schemes of this kind will certainly be borne in mind so that we can reduce the cost to farmers of necessary environmental controls?

Yes, I've considered many different schemes, and farmers have come to me around what they have done around this issue. As I said in my answer to Paul Davies, I've seen figures of £80,000 and I've seen figures of £150,000. I spoke to a farmer, I think from Monmouthshire, who had done it at a fraction of that cost. So, I do want to reassure Members that I am very open to the suggestions that have come forward and that's why it has taken much longer than I did anticipate in the first place.

I'm sure that everybody wants the right decision to be made at the end of the day, and if a delay results in that, nobody's going to complain. Of course, the precondition is that we get the right decision at the end of the day. But, this particular experiment that I referred to a moment ago in the Cleddau has managed to reduce the nitrate leaches into the soil and the waterways by nearly 90 per cent. So, if that were to be extended countywide into Pembrokeshire, that would be a massive advantage to us. Schemes of this kind, I think, show the benefits of working with the industry to achieve desirable outcomes that will please those for whom environmental concerns are at the top of their agenda, without having to use a stick to force people to do what they don't want to do. This is in the best interests of farmers as well, because the National Farmers Union have developed this blue flag scheme, just like the red tractor, which would be a very useful method of marketing our products as well—that they're produced with environmentally sensitive policy. So, that's good news for farming as well as for the environment.

I absolutely think you have to work with the industry in relation to policy and strategies, and it was just last week that the Minister for Environment and myself had a presentation around the blue flag scheme. So, we are still considering everything that's come before us over the past year. And I reiterate again: I will be making a statement in the next two weeks.

It is important, of course, that environmental concerns are taken seriously, and, therefore, that the methods employed, if they're not controlled by statute or regulation, are properly audited and therefore the results can be regarded as credible. This particular scheme in the Cleddau is being audited by Natural Resources Wales, so there again, if the regulatory bodies are working hand in glove with the industry, at the end of the day, everybody is happy. And, after all, happiness is what we as politicians want to produce for our constituents. So, I hope that the Cabinet Secretary will, when she announces her result, be able to be the Cabinet Secretary for happiness in the countryside. 

Well, yes, I'd like to think I am the Cabinet Secretary for happiness in the countryside. 

I think, at the beginning of that last question, you made a very important point about the balance. I always used to say, at that time, that I was Cabinet Secretary for Environment and Rural Affairs, so it was absolutely imperative that I did that balancing. Now, obviously, we've got a Minister for Environment, but that doesn't mean that the environment is any less important to me as Cabinet Secretary.

So, it is absolutely vital that any policy you bring forward is a balanced approach. It's certainly been very helpful having so many responses to the consultation and having so many individual farmers—and then, obviously, the two farmers who came to see me around the blue flag scheme—bringing forward their ideas about how they've managed to reduce the nitrates, et cetera. So, yes, you're right, I will be bringing forward that statement.

Plaid Cymru spokesperson, Simon Thomas.

Thank you, Presiding Officer. Can I make the Cabinet Secretary very happy by saying I won't ask her about NVZs, but wait for her statement in a couple of weeks' time? But I'll make her less happy, perhaps, by asking her this: why has her department suffered the biggest single cut in the draft Welsh Government budget, and what does that really say about the commitment of the Government to the environment and rural affairs?

Well, you'll appreciate that we've all had to make some very difficult decisions. I was in front of committee last week, having budget scrutiny, and you'll be aware that there was lots of noise around the fact that my budget had been cut by 5 per cent; it hadn't, because I transferred £35 million of waste funding into the revenue support grant. But still, I have had a cut of 1.5 per cent. I hope, again, I've balanced it. I've got a very broad portfolio, but I hope that no part of the portfolio feels that it's had cuts that aren't proportionate. 

Nevertheless, her portfolio has suffered from the same 5 per cent cuts on local government grants, which have been recycled to help social services and health. She has confirmed, implicitly, that, in fact, her department has had the biggest cut of any department within the Welsh Government in this budget. We know that there are difficulties in the budget, but it's singular that this department has been singled out for that largest cut. 

Now, the finance Secretary told the Finance Committee last week that £100 million that has been held back in reserves in anticipation of further efficiency cuts can now be made available, as these cuts are not now expected, following the budget last week. So, can I ask her, as the Cabinet Secretary: what is she bidding for out of this £100 million? Last year, with a bit of Plaid Cymru chivvying along, she got a bit of extra money for flood prevention schemes, as I recall. What is she looking to reinstate now to her budget?

When I go back to my office after this question session, I will be meeting with officials ahead of writing to the finance Minister. I think I was the first to put a bid in, so you'll be pleased to hear that. I have confirmed that my department has had the biggest cut, because it has—it's a fact. So, I'm not going to try and hide behind that, but I think we have managed to balance things so that, as I said, no one part of the portfolio has had a bigger hit. We've tried to share the pain across, if you like. I didn't come into politics to make cuts—nobody did—but we are faced with the reality.

So, as you say, there's this £100 million now. What will I be looking to reinstate? Well, again, one of my priority areas, probably shared by many Members, is around warm homes. We need to be looking at what we are doing in retrofitting our housing stock, particularly to be able to meet the low-carbon budgets that, obviously, we'll be setting. So, that's one area I'm looking at. Flooding, obviously—we had some horrendous flooding last week. When I was up in Llangefni on Thursday, Llangefni suffered incredibly, and the Member for Ynys Môn has already written to me regarding the flooding in Menai Bridge—I think that's where specifically you raised. So, I will be looking, certainly, at flooding, also. But if Plaid Cymru want to come forward with any views, I'll be very happy to do that—obviously, you supported our budget.

You're quite right, we do have a budget agreement, and I'm very pleased with some of the things that we've got from that. Some of the things you mentioned, Cabinet Secretary, however, are important, but, on the whole, they're capital. You could be using the ability of the new much-talked-about but strange capital that's come to the Welsh Government, this transactional sort of capital, to look at how that could go into warm homes, for example. So, that still leaves you, I think, bidding for this £100 million, and I look forward to seeing the impact of your lobbying on the finance Cabinet Secretary in the final budget.

But, of course, though you have been successful in paying the basic farm payments, and you announced that in the winter show this week, there are wider questions about ongoing funding as we leave the European Union. It seems increasingly clear to me that, in fact, we cannot bank the promises that have been made about ongoing common agricultural policy and farm payments beyond 2020. There's been much talk about 2022, but, in fact, when you look at the guarantees, they are rock solid, perhaps, until 2020, but, after that, they look rather shaky to my mind. So, can I ask her whether she agrees with that analysis from the Westminster perspective and whether she is now in a position to give an unequivocal guarantee, in this Assembly, that at least for this Assembly term—this Assembly term—this Welsh Government will continue the current envelope of farm payments?

Yes, for this Assembly term we will—so, until 2021. I absolutely agree with you around 2020 and 2022. We have had assurance that we will have that funding until the end of the Westminster Parliament in 2022, but then you hear different noises coming around. But, as far as I'm concerned, the Treasury has given assurance to fully fund direct payments until 2022.

I'm very pleased you mentioned the basic payment scheme. I was very pleased to announce at the winter fair on Monday that 91 per cent of our farmers will be getting their payment on Friday. That's the first day possible that they can do that. So, we'll be paying, I think, £201 million to over 14,000 of our farmers, and I would just like to pay tribute to my team who have done that. They're not a very big team, but, again I think when—I haven't seen the other countries, what figures they're bringing forward, but I would imagine we'll be way ahead of the game again.