Chamber
Meeting of the Parliament 28 March 2012
28 Mar 2012 · S4 · Meeting of the Parliament
Item of business
Agricultural Holdings (Amendment) (Scotland) Bill: Stage 1
I declare a farming interest.
The provisions in the Agricultural Holdings (Scotland) Bill are overdue. It is important that trust between tenants and landlords be restored in order to ensure that more land is let to farmers. It is worrying that the Government publication that the minister mentioned revealed that there are 10 per cent fewer holdings in Scotland now than there were six years ago. Indeed, the Rural Affairs, Climate Change and Environment Committee’s stage 1 report on the bill stated that the Government still has much work to do to attract new entrants.
The policy memorandum for the bill states that it is intended
“to create a better environment for the letting of farmland”.
I will speak briefly about the first two of the three provisions, because the third provision, which concerns VAT, is mainly consensual.
The first provision concerns extension of the definition of “near relative” from a spouse, civil partner or child to include grandchildren. Although the tenant farming forum has endorsed that provision, it is clear from the evidence that the committee received that there are diverging opinions. The Scottish Tenant Farmers Association and NFU Scotland would like the definition to be extended to include, perhaps, nieces and nephews, whereas Scottish Land & Estates draws a line in the sand after the inclusion of grandchildren. I acknowledge the committee’s recommendation that the Government re-examine extending the definition, but I recognise the compromise provision that is outlined in the bill and the importance of injecting trust back into land letting. As the committee has said, any movement on that could risk destabilising the consensus.
There is also a divergence of opinion on when the changes to the definition of “near relative” should come into force. As it stands, the new succession provisions will not come into force until two months after royal assent, but most TFF members believe that the changes should apply if a tenant has died before the act comes into force but the acquirer of the lease is still to give notice. I do not believe that to permit that would be an example of retrospective legislation, and I support the committee’s call for the Government to reconsider the issue at stage 2. I would be grateful if the cabinet secretary could shed some more light on that today.
The second provision concerns the prevention of upward-only and landlord-only initiated rent reviews. I was surprised to learn that a number of upward-only rental agreements are in place, but that fact is not sufficient to prevent Parliament from legislating against such agreements being used in the future. Holdings agreements need to be market led, and there should be scope for tenants to request a rent review and to negotiate the price down if there are legitimate business reasons for doing so.
The available data on the amount of land that is rented was highlighted during the committee’s scrutiny of the bill. In committee, I highlighted the agricultural censuses that come out in June and December, which could be used to gather that information. I welcome the cabinet secretary’s admission that there is a problem with the data, and I look forward to the Government addressing it in the future.
Like the Government and the TFF, I am keen for the measures in the bill to become law as soon as possible. I was disappointed when they were not introduced in last year’s order, but the bill has been shaped by the sector and I acknowledge the good work of the TFF that has brought us to this point.
The Scottish Liberal Democrats will vote for the bill to progress to stage 2. As for the Salvesen v Riddell case, which the cabinet secretary mentioned, obviously it is sub judice, but a judgment is about to be made on it. If the decision goes against the Government, I would support it in any move to appeal.
15:25
The provisions in the Agricultural Holdings (Scotland) Bill are overdue. It is important that trust between tenants and landlords be restored in order to ensure that more land is let to farmers. It is worrying that the Government publication that the minister mentioned revealed that there are 10 per cent fewer holdings in Scotland now than there were six years ago. Indeed, the Rural Affairs, Climate Change and Environment Committee’s stage 1 report on the bill stated that the Government still has much work to do to attract new entrants.
The policy memorandum for the bill states that it is intended
“to create a better environment for the letting of farmland”.
I will speak briefly about the first two of the three provisions, because the third provision, which concerns VAT, is mainly consensual.
The first provision concerns extension of the definition of “near relative” from a spouse, civil partner or child to include grandchildren. Although the tenant farming forum has endorsed that provision, it is clear from the evidence that the committee received that there are diverging opinions. The Scottish Tenant Farmers Association and NFU Scotland would like the definition to be extended to include, perhaps, nieces and nephews, whereas Scottish Land & Estates draws a line in the sand after the inclusion of grandchildren. I acknowledge the committee’s recommendation that the Government re-examine extending the definition, but I recognise the compromise provision that is outlined in the bill and the importance of injecting trust back into land letting. As the committee has said, any movement on that could risk destabilising the consensus.
There is also a divergence of opinion on when the changes to the definition of “near relative” should come into force. As it stands, the new succession provisions will not come into force until two months after royal assent, but most TFF members believe that the changes should apply if a tenant has died before the act comes into force but the acquirer of the lease is still to give notice. I do not believe that to permit that would be an example of retrospective legislation, and I support the committee’s call for the Government to reconsider the issue at stage 2. I would be grateful if the cabinet secretary could shed some more light on that today.
The second provision concerns the prevention of upward-only and landlord-only initiated rent reviews. I was surprised to learn that a number of upward-only rental agreements are in place, but that fact is not sufficient to prevent Parliament from legislating against such agreements being used in the future. Holdings agreements need to be market led, and there should be scope for tenants to request a rent review and to negotiate the price down if there are legitimate business reasons for doing so.
The available data on the amount of land that is rented was highlighted during the committee’s scrutiny of the bill. In committee, I highlighted the agricultural censuses that come out in June and December, which could be used to gather that information. I welcome the cabinet secretary’s admission that there is a problem with the data, and I look forward to the Government addressing it in the future.
Like the Government and the TFF, I am keen for the measures in the bill to become law as soon as possible. I was disappointed when they were not introduced in last year’s order, but the bill has been shaped by the sector and I acknowledge the good work of the TFF that has brought us to this point.
The Scottish Liberal Democrats will vote for the bill to progress to stage 2. As for the Salvesen v Riddell case, which the cabinet secretary mentioned, obviously it is sub judice, but a judgment is about to be made on it. If the decision goes against the Government, I would support it in any move to appeal.
15:25
In the same item of business
The Presiding Officer (Tricia Marwick)
NPA
The next item of business is a debate on motion S4M-02495, in the name of Richard Lochhead, on the Agricultural Holdings (Amendment) (Scotland) Bill. I call ...
The Cabinet Secretary for Rural Affairs and the Environment (Richard Lochhead)
SNP
Thank you, Presiding Officer.This Government has two key policy objectives for tenant farming in Scotland: first, to ensure that tenant farmers have legislat...
The Presiding Officer
NPA
I call Rob Gibson to speak on behalf of the Rural Affairs, Climate Change and Environment Committee.14:44
Rob Gibson (Caithness, Sutherland and Ross) (SNP)
SNP
There is an old Highland joke about a croft being a small piece of land surrounded entirely by large amounts of legislation. Given the amount of legislation ...
Alex Fergusson (Galloway and West Dumfries) (Con)
Con
Will the member take an intervention?
Rob Gibson
SNP
I will take a brief one. I have a lot to say.
Alex Fergusson
Con
Given that the tax regime is the same throughout the United Kingdom and that farm business tenancies south of the border are similar to limited duration tena...
Rob Gibson
SNP
I think that there has been enough speculation, but I suppose that, even in the member’s devo plus proposals, there might be a decision to take forward these...
Claire Baker (Mid Scotland and Fife) (Lab)
Lab
I am pleased to be speaking in this afternoon’s debate. As an MSP who is not on the Rural Affairs, Climate Change and Environment Committee, I thank the comm...
John Lamont (Ettrick, Roxburgh and Berwickshire) (Con)
Con
The Scottish Conservatives are pleased to support the bill’s general principles. A vibrant tenanted sector is vital to Scottish farming. As a Parliament, we ...
Annabelle Ewing (Mid Scotland and Fife) (SNP)
SNP
John Lamont will obviously have read the committee’s wonderful report, which he was involved in producing. Paragraph 37, which refers to the oral evidence th...
John Lamont
Con
That was very helpful, but it does not necessarily mean that I have to agree with that view. I agree with the cabinet secretary’s view that there could be un...
Annabelle Ewing (Mid Scotland and Fife) (SNP)
SNP
Although I have the privilege of being the deputy convener of the Rural Affairs, Climate Change and Environment Committee, I speak not on behalf of the commi...
David Stewart (Highlands and Islands) (Lab)
Lab
It might seem to be a great leap of imagination to compare this consensual stage 1 debate on the Agricultural Holdings (Amendment) (Scotland) Bill with the r...
Graeme Dey (Angus South) (SNP)
SNP
One issue that came through loud and clear in the committee’s inquires on the bill was that of land agents and their practices. In his evidence, NFUS chief e...
The Deputy Presiding Officer (John Scott)
Con
You must close now, please.
Graeme Dey
SNP
The TFF is looking to arbitration as a way in which to resolve that issue. I suggest that that is the way forward.15:17
Angus MacDonald (Falkirk East) (SNP)
SNP
I am pleased to speak in this stage 1 debate. Although I am not a member of the Rural Affairs, Climate Change and Environment Committee, my Economy, Energy a...
Jim Hume (South Scotland) (LD)
LD
I declare a farming interest.The provisions in the Agricultural Holdings (Scotland) Bill are overdue. It is important that trust between tenants and landlord...
Dennis Robertson (Aberdeenshire West) (SNP)
SNP
As many members have already discussed the “near relatives” provision in the bill, I will not go down that route. Instead, I want to focus not on the legisla...
David Stewart
Lab
Does the member share my view that tenants are concerned about Lord Gill’s decision in the Court of Session, which effectively says that the Scottish Parliam...
Dennis Robertson
SNP
We are moving forward and the bill and amendments to it will try to address what happened in 2003.We certainly need to consider the arbitration provisions in...
Margaret McDougall (West Scotland) (Lab)
Lab
The bill aims to create a better environment for the letting of farmland to the tenant farming sector of the agricultural industry and to encourage new entra...
Mark McDonald (North East Scotland) (SNP)
SNP
Presiding Officer, as a former member of the Rural Affairs, Climate Change and Environment Committee—although, to be frank, if you had blinked, you would hav...
David Stewart
Lab
The Court of Session overturned the Scottish Land Court in relation to the role of single farm payments and argued that they are a factor in open-market rent...
Mark McDonald
SNP
A number of factors prevent new entrants from coming into the sector—I certainly do not think that there is just a single contributory factor in that regard....
Alex Fergusson (Galloway and West Dumfries) (Con)
Con
This has been a welcome debate on the general principles of the Agricultural Holdings (Amendment) (Scotland) Bill.I am happy to welcome the three changes to ...
Claudia Beamish (South Scotland) (Lab)
Lab
I am pleased to speak in this debate, which is so significant for Scotland’s vibrant agriculture sector. I thank the cabinet secretary for setting the contex...
Alex Fergusson
Con
Why does the member feel that disharmony would be a good thing in an area—that is, the TFF—where harmony exists?
Claudia Beamish
Lab
That is certainly not what I am saying. Whenever consensus is possible, it is an excellent idea. However, a range of perspectives must be taken into account,...