1. Will the Cabinet Secretary make a statement on the Welsh red meat levy? OAQ52689

Diolch. I continue to press for a permanent solution to this long-standing inequity. I'm extremely disappointed that, following my requests, measures to ensure a fairer distribution of the red meat levy were not included on the face of the UK agriculture Bill at introduction. I've made my views clear there should now be a Government amendment to address this issue. 

Well, I share your frustration, because I’ve been a Member of this Assembly for seven years and I’m sure I’ve been asking the same question regularly over that period of time. But the agricultural unions are also concerned that changes in farm payments that you’re proposing in ‘Brexit and our land’ are going to lead to less red meat being produced in Wales and, as a result, there will be fewer animals going through Welsh abattoirs, which will mean that less money will come from the levy to promote Welsh meat. As a result, they will be less promotion of that meat. So, you can see that vicious circle that would develop in light of that possibility. So, can I ask what consideration you have given to the impact that ‘Brexit and our land’ have on meat production in Wales? And what assurance can you give to our producers that the Government will continue to support the red meat industry?

Well, I think I've made my views very clear that we will obviously continue to support the red meat industry. I don't share the pessimistic view of many people around the issues that you've just raised, but I do think it is now time that we sorted out the red meat levy. As you said, you've been a Member here seven years; I've been a Member here 11 years, and it's been an ongoing issue. But we've obviously had an interim solution that has allowed some progress in this area, but I think this is the first agricultural Bill for probably 40-plus years. I think this was a real opportunity to be able to address this issue and, as I said, in my opening answer to you, I was very disappointed it wasn't on the face of the Bill. I've had a couple of discussions with Michael Gove to ensure that it's a Government amendment, because at one time I heard it could be a backbench amendment, and I don't think that would be appropriate. I think a Government amendment is the very least that we should see on the UK Agriculture Bill now around this issue. 

Thank you, Cabinet Secretary, for that answer. As you know, from these benches, we've been very supportive of change in this particular area. We're talking significant sums of money that's lost to the Welsh livestock industry. I do agree with you it's disappointing that it wasn't in the Agriculture Bill and we will use our influence as best we can to obviously try and influence that decision. But what is important, with the current arrangements, is that there is an increase in processing capacity here in Wales, in particular in the beef sector, because at the moment, obviously, the levy is derived from where the animal is processed. We've seen a contraction in processing capacity here in Wales over successive years. What confidence can you have that there will be little or no more contraction in the processing sector and, in fact, that we can move into a period where we will see significant investment in red meat processing here in Wales to increase the ability to add value to product here, where the country fattens that animal? 

I thank Andrew R.T. Davies for saying he will assist in any discussions he can around getting that Government amendment that we really want to see to the UK Agriculture Bill. In relation to the processing industry, I do think our processing industry is functioning well. I think it is a very attractive assessment, and we've had a feasibility study, which I'm sure you're aware of, into the opportunities for investments in parts of our processing plants, not necessarily just meat but also dairy.

One of the things that does concern me around our processing capabilities is the movement of EU nationals. I visited one processing plant where 80 per cent of the staff were EU nationals, So, there is concern, following Brexit, that we won't have the staff. And how do you make those sorts of jobs more attractive to local people? I think this has been an issue and it's something where I'm very happy to work with the sector to address.