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
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 the current law that the Government is seeking to introduce through the bill. As we heard, the Government proposes, first, to amend the definition of a “near relative” who may succeed to a secure agricultural tenancy, to include grandchildren; secondly, to prevent certain restrictions for rent reviews; and thirdly, to disapply VAT rate changes and options to tax as variations in rent that prevent rent reviews. The proposals are to be broadly welcomed and there will be no argument or opposition to them from the Conservative benches.
There is much to be applauded in the committee’s stage 1 report, but I have reservations about some of the committee’s thoughts and recommendations, on which I will concentrate. In doing that, I am transported back to the heady days of the previous Agricultural Holdings (Scotland) Bill—those halcyon days when I convened the Rural Development Committee and the cabinet secretary and indeed the Minister for Environment and Climate Change were but enthusiastic members of it—[Interruption.] Oh, they were happy days, Mr Gibson.
During the debate on the previous bill, which was somewhat hijacked by the current Minister for Energy, Enterprise and Tourism’s enthusiastic advocacy of the absolute right to buy for agricultural tenants, I warned that, although no one wanted a reinvigorated, vibrant and effective tenanted sector more than I did, Ross Finnie’s genuine attempts to bring that about would be more likely to have the opposite effect. All these years later, it gives me no pleasure to say that I appear to have been proved right. The number of let farms has fallen dramatically. That has happened for a number of reasons, but I think that I can safely say that a principal reason is the suspicion of the right to buy that still exists, which has stifled an important sector for the past decade.
However, there is good news. There is at long last a glimmer of light at the end of a particularly long and dark tunnel. Through sitting together in the tenant farming forum, all parties are slowly but surely achieving agreement and trust—several members have rightly mentioned trust—and are finally beginning to break the deadlock that has existed for the past 10 years. The prize is immense because, if we allow the tenanted sector truly to flourish, then we solve the new entrants problem, or much of it, at the same time.
For generations the tenanted sector has provided the door into agriculture, but we politicians have done a lot to close that door. I think that it is up to us politicians to try to open that door again. That is why I shudder at the thought of any attempt to extend the definition of “near relative” and why there is still a degree of nervousness among those who have land to let that, if they let it, it could be lost to them for ever through the introduction of a right to buy.
I heartily commend the cabinet secretary’s efforts to resist those possibilities. If he, too, genuinely wishes to bring about a reinvigorated, sustainable and vibrant tenanted sector, he must continue to resist. If he does, he will have our solid support. The way to success is surely through agreement in and through the tenant farming forum. Anything that is imposed from outside, be it by Government, by Parliament, by committee or by any other body, will simply extend the current difficult situation. Frankly, that would do nobody any good at all.
15:41
I am happy to welcome the three changes to the current law that the Government is seeking to introduce through the bill. As we heard, the Government proposes, first, to amend the definition of a “near relative” who may succeed to a secure agricultural tenancy, to include grandchildren; secondly, to prevent certain restrictions for rent reviews; and thirdly, to disapply VAT rate changes and options to tax as variations in rent that prevent rent reviews. The proposals are to be broadly welcomed and there will be no argument or opposition to them from the Conservative benches.
There is much to be applauded in the committee’s stage 1 report, but I have reservations about some of the committee’s thoughts and recommendations, on which I will concentrate. In doing that, I am transported back to the heady days of the previous Agricultural Holdings (Scotland) Bill—those halcyon days when I convened the Rural Development Committee and the cabinet secretary and indeed the Minister for Environment and Climate Change were but enthusiastic members of it—[Interruption.] Oh, they were happy days, Mr Gibson.
During the debate on the previous bill, which was somewhat hijacked by the current Minister for Energy, Enterprise and Tourism’s enthusiastic advocacy of the absolute right to buy for agricultural tenants, I warned that, although no one wanted a reinvigorated, vibrant and effective tenanted sector more than I did, Ross Finnie’s genuine attempts to bring that about would be more likely to have the opposite effect. All these years later, it gives me no pleasure to say that I appear to have been proved right. The number of let farms has fallen dramatically. That has happened for a number of reasons, but I think that I can safely say that a principal reason is the suspicion of the right to buy that still exists, which has stifled an important sector for the past decade.
However, there is good news. There is at long last a glimmer of light at the end of a particularly long and dark tunnel. Through sitting together in the tenant farming forum, all parties are slowly but surely achieving agreement and trust—several members have rightly mentioned trust—and are finally beginning to break the deadlock that has existed for the past 10 years. The prize is immense because, if we allow the tenanted sector truly to flourish, then we solve the new entrants problem, or much of it, at the same time.
For generations the tenanted sector has provided the door into agriculture, but we politicians have done a lot to close that door. I think that it is up to us politicians to try to open that door again. That is why I shudder at the thought of any attempt to extend the definition of “near relative” and why there is still a degree of nervousness among those who have land to let that, if they let it, it could be lost to them for ever through the introduction of a right to buy.
I heartily commend the cabinet secretary’s efforts to resist those possibilities. If he, too, genuinely wishes to bring about a reinvigorated, sustainable and vibrant tenanted sector, he must continue to resist. If he does, he will have our solid support. The way to success is surely through agreement in and through the tenant farming forum. Anything that is imposed from outside, be it by Government, by Parliament, by committee or by any other body, will simply extend the current difficult situation. Frankly, that would do nobody any good at all.
15:41
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,...