Chamber
Meeting of the Parliament 03 October 2013
03 Oct 2013 · S4 · Meeting of the Parliament
Item of business
Common Agricultural Policy
That is not the situation that we face. The SNP proposes that we go into the EU as a new member state and there are concerns about the negotiations that would have to take place. What would that mean for Scottish farming? Could the SNP guarantee that payments to farmers would continue during any negotiations? Recent examples show that new member states, including those that joined in 2007, have had their direct EU payments phased in gradually, which would be disastrous for Scottish farming.
I will move on to an area on which there is more agreement between us. I agree with the cabinet secretary that Owen Paterson needs to listen and respond positively to the debate. We need an equitable solution for the UK. I accept that it is a challenging negotiation for the cabinet secretary, but he will also have to deliver on the degree of redistribution that he argues for across the EU and within the UK. He must start to be clear about what level of support will be available to farming in Scotland’s more disadvantaged areas. There have been suggestions that the maximum degree of modulation from pillar 1 to pillar 2 will take place and, as the Liberal Democrat amendment highlights, that decision will have to be made quite soon. We support arguments for greater funding in pillar 2 to deliver an effective SRDP. Some people in the farming sector have raised concerns over the impact that that degree of modulation will have on pillar 1, but we need to consider our commitment to meet our environmental challenges. If we were to boost the agri-environment schemes, which have previously been cut, we could deliver benefits for both.
Last week, the Intergovernmental Panel on Climate Change report clearly set out the global challenges. We know that the farming sector in Scotland has a pretty significant environmental impact, with emissions from agriculture and related land use accounting for some 20 per cent of total Scottish emissions. The example this week of John McKenzie from Dingwall, who is running a carbon neutral flying business with all the energy generated from his farm, demonstrates the commitment and innovation that exists out there to improve performance. Currently, we have no statutory measures placed on the sector and there is some way to go. It is essential that we use incentives and good practice, but we need to see more action in that area. If we could boost the funds in pillar 2, that would go some way towards helping that.
The other significant area is how we implement degressivity. We need much more transparency around payments and a better explanation of how public benefit is gained from some of the large farm payments that are being made to profitable farms. The payments must be justifiable. I recently spoke to a senior figure in food and drink, and they said that the most innovative of produce, the most diverse business models and the most modern farming often come from younger farmers who have received no public subsidy but who are, nonetheless, growing businesses and have the potential to do more.
The new entrants scheme will ease matters—I know that the cabinet secretary agrees that part of the solution must be to look at land availability and tenancies if we are to improve the lot of new entrants—but we must also be prepared to focus resources on where they provide the greatest public benefit. On that issue, Alyn Smith MEP commented this week that he was
“disappointed the agreement didn’t go further on capping: we have simply not addressed popular concerns on this issue, and when everyone is having to tighten their belts it’s only right that the nation’s wealthiest farmers should as well.”
It is now up to the cabinet secretary to address the issue and to indicate where he thinks that the balance should lie and what is proportionate and fair.
We need to be clear about our priorities for implementation. We would be better spending our time today on that significant debate and sending a clear message to the UK Government about delivering a fairer funding deal throughout the UK than on making referendum arguments that have little reference to the CAP deal, which is determined now until 2020.
I move amendment S4M-07892.3, to leave out from “and welcomes” to end and insert:
“and believes that the focus must now shift to implementing the latest CAP agreement to best meet the needs of farmers across Scotland, including new entrants, reward active farming and support rural businesses and communities, as well as protect and enhance Scotland’s environment; recognises the tight timescale for introduction and calls on the Scottish Government to provide clarity on the transition from historic to area payments, the level of modulation from Pillar 1 to Pillar 2 and the future Scottish Rural Development Programme as soon as possible, and calls on both the Scottish Government and the UK Government to ensure that a mature dialogue is maintained in the implementation of the current agreement in order to deliver a fair outcome throughout the UK.”
14:56
I will move on to an area on which there is more agreement between us. I agree with the cabinet secretary that Owen Paterson needs to listen and respond positively to the debate. We need an equitable solution for the UK. I accept that it is a challenging negotiation for the cabinet secretary, but he will also have to deliver on the degree of redistribution that he argues for across the EU and within the UK. He must start to be clear about what level of support will be available to farming in Scotland’s more disadvantaged areas. There have been suggestions that the maximum degree of modulation from pillar 1 to pillar 2 will take place and, as the Liberal Democrat amendment highlights, that decision will have to be made quite soon. We support arguments for greater funding in pillar 2 to deliver an effective SRDP. Some people in the farming sector have raised concerns over the impact that that degree of modulation will have on pillar 1, but we need to consider our commitment to meet our environmental challenges. If we were to boost the agri-environment schemes, which have previously been cut, we could deliver benefits for both.
Last week, the Intergovernmental Panel on Climate Change report clearly set out the global challenges. We know that the farming sector in Scotland has a pretty significant environmental impact, with emissions from agriculture and related land use accounting for some 20 per cent of total Scottish emissions. The example this week of John McKenzie from Dingwall, who is running a carbon neutral flying business with all the energy generated from his farm, demonstrates the commitment and innovation that exists out there to improve performance. Currently, we have no statutory measures placed on the sector and there is some way to go. It is essential that we use incentives and good practice, but we need to see more action in that area. If we could boost the funds in pillar 2, that would go some way towards helping that.
The other significant area is how we implement degressivity. We need much more transparency around payments and a better explanation of how public benefit is gained from some of the large farm payments that are being made to profitable farms. The payments must be justifiable. I recently spoke to a senior figure in food and drink, and they said that the most innovative of produce, the most diverse business models and the most modern farming often come from younger farmers who have received no public subsidy but who are, nonetheless, growing businesses and have the potential to do more.
The new entrants scheme will ease matters—I know that the cabinet secretary agrees that part of the solution must be to look at land availability and tenancies if we are to improve the lot of new entrants—but we must also be prepared to focus resources on where they provide the greatest public benefit. On that issue, Alyn Smith MEP commented this week that he was
“disappointed the agreement didn’t go further on capping: we have simply not addressed popular concerns on this issue, and when everyone is having to tighten their belts it’s only right that the nation’s wealthiest farmers should as well.”
It is now up to the cabinet secretary to address the issue and to indicate where he thinks that the balance should lie and what is proportionate and fair.
We need to be clear about our priorities for implementation. We would be better spending our time today on that significant debate and sending a clear message to the UK Government about delivering a fairer funding deal throughout the UK than on making referendum arguments that have little reference to the CAP deal, which is determined now until 2020.
I move amendment S4M-07892.3, to leave out from “and welcomes” to end and insert:
“and believes that the focus must now shift to implementing the latest CAP agreement to best meet the needs of farmers across Scotland, including new entrants, reward active farming and support rural businesses and communities, as well as protect and enhance Scotland’s environment; recognises the tight timescale for introduction and calls on the Scottish Government to provide clarity on the transition from historic to area payments, the level of modulation from Pillar 1 to Pillar 2 and the future Scottish Rural Development Programme as soon as possible, and calls on both the Scottish Government and the UK Government to ensure that a mature dialogue is maintained in the implementation of the current agreement in order to deliver a fair outcome throughout the UK.”
14:56
References in this contribution
Motions, questions or amendments mentioned by their reference code.
In the same item of business
The Presiding Officer (Tricia Marwick)
NPA
Good afternoon. The first item of business is a debate on motion S4M-07892, in the name of Richard Lochhead, on the common agricultural policy.
The Cabinet Secretary for Rural Affairs and the Environment (Richard Lochhead)
SNP
The debate on the common agricultural policy for 2014 to 2020 provides an opportunity for the Government to update Parliament on the state of play in the Eur...
Claire Baker (Mid Scotland and Fife) (Lab)
Lab
Has the cabinet secretary approached the UK Government to discuss the possibility of calculating the 8 per cent on the UK’s share rather than just the Scotti...
Richard Lochhead
SNP
Yes we have, and I will talk about that now because this is a key area for Scotland.Unfortunately, our negotiator, Owen Paterson, did not want any coupled su...
Liam McArthur (Orkney Islands) (LD)
LD
We have heard a lot about the UK Government not batting for Scotland. As I recall, the cabinet secretary was demanding an increase in the budget at the same ...
Richard Lochhead
SNP
I am sure that the member is aware that only 38 per cent of the Europe budget is for CAP. That is one area in which Scotland gets an extremely raw deal. We d...
Claire Baker (Mid Scotland and Fife) (Lab)
Lab
This is an opportune time to have a CAP debate, and we should not miss the opportunity to discuss the key issues. I welcome the cabinet secretary’s press rel...
Richard Lochhead
SNP
The figures that Claire Baker has read out illustrate why we have to move from the historical basis for payments to a new basis for payments. That is why we ...
Claire Baker
Lab
I accept that that is the formula that is used, but the story behind it is much more complex. It is not just about providing a fairer formula throughout the ...
The Minister for Environment and Climate Change (Paul Wheelhouse)
SNP
I hope that Claire Baker acknowledges that, if we were an independent member state in our own right, we would have benefited from the new formula in terms of...
Claire Baker
Lab
That is not the situation that we face. The SNP proposes that we go into the EU as a new member state and there are concerns about the negotiations that woul...
Alex Fergusson (Galloway and West Dumfries) (Con)
Con
This is a debate on which I wish it were possible for the Parliament to speak with one voice. We have often managed to do so on this topic in the past, but I...
Tavish Scott (Shetland Islands) (LD)
LD
I draw members’ attention to my declaration of interests.I spent last Saturday—as many of us do at this time of the year—at my local mart, in Lerwick. I hear...
The Deputy Presiding Officer (Elaine Smith)
Lab
We turn to the open debate. Can I have speeches of six minutes, please?15:11
Rob Gibson (Caithness, Sutherland and Ross) (SNP)
SNP
There have been some suggestions that we would be better not having a fragmented approach, but the motion and the amendments show that the fragmentation come...
Alex Fergusson
Con
Will Rob Gibson take a brief intervention?
Rob Gibson
SNP
I have hardly started, but I will.
Alex Fergusson
Con
It is better to take interventions early.If what Mr Gibson said about the budget deal is the case, why did the cabinet secretary describe the deal that came ...
Rob Gibson
SNP
The cabinet secretary was talking about the bits that we got into the deal in relation to dealing with active farming, the Scottish clause and so on—that is ...
David Stewart (Highlands and Islands) (Lab)
Lab
President Dwight Eisenhower famously said:“Farming looks mighty easy when your plow is a pencil, and you’re a thousand miles from the corn field.”It is of co...
The Deputy Presiding Officer
Lab
I call Angus MacDonald, to be followed by Graeme Dey. We have a small amount of time in hand for interventions.15:23
Angus MacDonald (Falkirk East) (SNP)
SNP
As we have heard from the cabinet secretary, the long-drawn-out saga of CAP reform is finally reaching a close, with a vote in the European Parliament in mid...
Claire Baker
Lab
Will the member take an intervention?
Angus MacDonald
SNP
Sorry. I have a lot to get into my six minutes.Ireland gets €70 per hectare, Finland gets €138 and the Czech Republic gets €83.With friends like the UK Gover...
The Deputy Presiding Officer
Lab
There is a bit of extra time for members who want to take interventions.15:29
Graeme Dey (Angus South) (SNP)
SNP
I begin my speech by focusing on pillar 2 and how, from a greatly reduced funding pot, it will be made to work to deliver for rural Scotland. By rural Scotla...
David Stewart
Lab
I strongly support the point that the member is making about rural development, but does he share my view that a maximum modulation of 15 per cent from pilla...
Graeme Dey
SNP
I think that there is a balance to be struck in that regard.Within that figure will be people who commute to towns and cities to earn their living but, given...
Jayne Baxter (Mid Scotland and Fife) (Lab)
Lab
It does not seem so long ago that we were gathered here to discuss the common agricultural policy reform proposals, but it has in fact been more than six mon...
Nigel Don (Angus North and Mearns) (SNP)
SNP
I will start by looking at the Scottish Government’s objectives in the CAP process. As the cabinet secretary has already alluded to, those are to continue to...