Howard: A sustainable future for British farming

04 January 2005

Howard: A sustainable future for British farming

Speech to the Oxford Farming Conference

The Disaster in Asia

"Thank you for inviting me to be with you tonight.

Britain returned to work this morning after a Christmas and New Year overshadowed by tragedy - a tragedy so great that it has been difficult to comprehend.

Our prayers are with all those who have been struck by this disaster, particularly those who have lost relatives and friends.

The scale, speed and ferocity of the Tsunami have left all of us with a sense of helplessness. It is a terrible reminder of how frail and fragile the human condition is. But if there is one small crumb of comfort that can be drawn from this tragedy, it is the British public's response to it.

It took no initiative, no grand scheme, no ministerial diktat. But spontaneously, quietly and selflessly, Britons everywhere have given their money, their possessions and their time to help those in need.

Their efforts should be acknowledged and admired for what they say about the spirit of the British people.

Great though this achievement is - our task is not yet complete. We must not allow these shattered communities to be forgotten once the media spotlight has moved on.

Overseas Aid

Nor should we forget the wider problem of world poverty. It is easy to forget that around the world some 30,000 young children die every day, mostly from malaria, diarrhoea, and other preventable diseases. Or that over 800 million people on our planet have to survive on less than a dollar a day.

This year Britain has the Presidency of both the G8 and the European Union. This gives us a singular opportunity to help lift people out of poverty both by radically reforming the way we deliver aid and by fighting for free markets and fairer trade.

Overseas aid should be targeted on the poorest countries and it should be tied to good governance. Despite Chris Patten's heroic efforts at reform, almost 50 per cent of the European Union's aid still goes to middle or even high income countries. That is why I want national governments to have far greater control over their overseas aid budgets - so Britain can target her support on the most deserving countries.

Free, Fairer Trade

But however effective our aid programme is, we have to realise that it can never solve the problem of global poverty.

Governments around the world have to face facts. If you want to help the poor, then the path is clear - establish independent courts, protect private property, constrain the power of politicians and encourage free enterprise.

The growth of free markets has done more to lift people out of poverty than all the aid programmes in the world.

But the West is not free of blame when it comes to markets, trade and good governance. Protection for developed nations at the expense of the developing nations must come to end. It is indefensible. Western tariffs and farm subsidies reduce developing countries' export earnings by an estimated $39 billion a year - 50 per cent more than they receive in aid.

Britain's Presidency of the G8 is a great opportunity to get the Doha round of trade talks going again. It has been estimated that Doha could increase global income by about $500 billion in just over a decade. With most of that gain going to poorer countries, it could lift almost 150 million people out of poverty.

And trade must be fair. Fairness does matter. The World Trade Organisation has ushered in a rules based system for deciding trade disputes. Might is no longer right. But, all too often, poor countries are not able to take full advantage of the system because they lack the necessary economic or legal expertise. That is not fair. I believe we should establish an advocacy fund paid for by the West to help the poorer countries argue their corner in trade disputes and hold their own in international negotiations. It would help them make the most of this rules-based system. It could make a real difference.

2004 ended with great sadness. But with Britain's presidency of both the G8 and the European Union, there is real hope for 2005. By reforming the way we deliver overseas aid, by promoting free enterprise and by encouraging freer, fairer trade we can help lift millions of people out of poverty. That is an aspiration worth fighting for.

The State of British Farming

I am sure that the current state of world trade, as well as the implications of the Tsunami disaster, will feature prominently during the two days of this conference. This is, I understand, the 59th Oxford Farming Conference. Every year, this gathering plays a hugely important part in shaping farming policy and in bringing together leading experts from all over the country and the world.

So I am delighted to be here, if a little disappointed that Brian and Debbie Aldridge will not be coming until tomorrow. I don't know whether that is due to their commitments in Ambridge or a reflection of their view of the likely contents of my speech.

I want to use the rest of my time with you to set out my Party's plans to help farmers. Unlike my agriculture spokesman Jim Paice, who is a farmer, it may not surprise you to learn that I am not. But there are many farmers in my constituency, and I care a great deal about their future.

I have learned from them that farming is a unique occupation. In fact it's less of a job and more of a vocation. Most of the farmers that I know are farming the same land as their parents and their grandparents did before them. Most of them work all year round, up before dawn and finishing well after sunset. Above all they are absolutely passionate about what they do. They love the land, they love their animals and they know that they are living what is in some ways a privileged existence as stewards of the British countryside.

So it takes a hell of a lot to drive someone away from farming. But in Britain today it is happening more and more. Farmers are caught in a series of catch-22s. You compete in a world market - but your competitors have lower costs and lower standards. You sell to supermarkets - but the supermarkets continue to drive prices down. But even as prices decline, costs - in the form of ever more stringent regulation - increase. Those of you who have pared yourselves to the bone find you have to pare a little further. And then there are the external events which you cannot plan for, which bear down on farming like a hurricane - events like BSE and foot and mouth.

My approach, and that of my Party, is straightforward. Farmers are part of Britain's forgotten majority. Farmers are like millions of others who form the backbone of this country. People who work hard, are self-reliant, believe in their community, are willing to help others and who play by the rules. You are the sort of people we want to help, by giving you the freedom to live your lives.

So we will get government out of the way when that is necessary. We will support you when that is needed. And we will try to create for you as level a playing field as possible.

CAP reform

Let me start with the biggest change to farming at the moment - and indeed, probably for a generation: the reforms of the Common Agricultural Policy. This week saw the introduction of the single farm payment, and we are all looking very carefully at how it will work in practice.

It was absolutely clear that the CAP had to change. It had become enormously expensive, and consumers were no longer prepared to subsidise food production as they had done in the past. And of course, there has been quite proper pressure from the third world, via the World Trade Organisation, to reduce the amount of subsidy received by farmers in the developed world.

So we supported in principle the changes to the CAP. We also believe there is a need for further reform of the CAP. The inclusion of the EU accession countries within the CAP will bust the budget unless there is reform. And further WTO agreements will also increase the pressure.
The direction of reform, we believe, has to be for individual member states to gradually regain more control of their own domestic agriculture. Different member states are implementing reforms in different ways and at a different pace.
And reform of this kind is particularly pertinent for Britain, which contributes more than it receives back in subsidies.

So CAP reform is right in principle. But what we do not want is what we are getting at the moment - botched implementation. These reforms should mean a simpler, less bureaucratic and much freer regime for British farmers. Instead, we are being told that the Government has created a new and equally onerous bureaucratic machine. It's a case of out of the frying pan and into the fire.

Red Tape and Tax

This situation goes to the heart of one of the biggest problems of modern farming. As change after change is imposed on farmers, you are in danger of being overwhelmed by paperwork.

Cutting back on paperwork and red tape for farmers will therefore be an absolute priority for a Conservative Government. This is not just rhetoric. We are deadly serious. Let me tell you three specific things we will do.

First, we will introduce a system of self-regulation. After we are elected, farmers will be responsible for meeting the standards required. Instead of rigid inspection, which can see five different inspectors visiting a farm and disrupting the day, we will police the system with random spot checks. The inspection regime will remain effective but it will be far less onerous.

Second, we will cut back regulation by literally cutting the number of bureaucrats responsible for it. The Government has increased DEFRA's budget by two-thirds since 1997. There are now more bureaucrats in DEFRA than there are dairy farms in England. We have set out detailed plans that would save almost half a billion pounds a year from the DEFRA budget. We will, among other things, reduce the headcount at DEFRA's headquarters by 1200 posts, review the number of quangos, slim down the Environment Agency by another 1280 posts and abolish the Agricultural Wages Board.

Third, we shall have for the first time in any Cabinet, or Shadow Cabinet, a Minister responsible solely and exclusively for deregulation.

As well as being affected by over-regulation, farmers are also hit by high taxes. We want lower taxes. We believe that business is better than government in investing its money, and that people who work hard should keep more of the money they earn.

Supermarkets

But farmers still have to make a living. The single farm payment may see a lot of farmers abandon food production altogether, and that is a cause for considerable concern.

Of course I understand your frustration at the buying power of the supermarkets and the difference between the price you get for your produce and the price at which it goes on sale to the public.

I doubt there are easy answers to this problem. Let me just say this. Farmers will not be the only ones studying the outcome of the deliberations of the Office of Fair Trading with great interest. And there is much to be said for a tougher voluntary code of practice, as recommended by the NFU.

Food labelling

One area where we can help British food producers quickly is in food labelling. British food is produced to some of the highest standards in the world, in terms of animal welfare, health and safety standards and the environment. It does not make sense to require our farmers to maintain those standards - which you do willingly - while allowing cheaper, imported goods, produced at much lower standards, to flood in unnoticed by the consumer because they are labelled in such a way as to deceive. Free trade must be fair trade.

The next Conservative government will introduce much clearer food labelling. It is quite wrong that, for example, pork that is not produced in this country but simply packaged here can be sold to consumers as though it was British. That kind of abuse will stop under the Conservatives.

Disease Control

On food standards generally, we must also be much tougher in stopping the estimated 17,500 tonnes of illegal meat products that come in every year, a figure greater than the combined imports from France, Uruguay and Argentina. This trade is not only threatening endangered species abroad, it represents a daily risk of the importation of diseases such as swine fever, foot and mouth or worse. In particular, we will look urgently at adopting the new scanning technology that exists to combat this threat when we come into office.

Conclusion

Farming today stands at a crossroads. It can continue to decline gradually, or it can enjoy a brilliant renaissance with new markets in organic produce and local indigenous varieties, and diverse methods of land use to help manage flooding and produce renewable fuels.

As with any industry, government cannot provide all the answers. Salvation lies largely in your own hands. Diversification and consolidation may be the answer for many. Government can help by removing as many barriers as possible.

But as I have said, farming is not just any industry. We all benefit from your stewardship of the countryside, and we all have a role to play in helping you to do your job. We will continue to press for the fair implementation of the CAP reforms. We will reduce the amount of burdensome and unnecessary regulation that makes it even harder to do a difficult job.

Farmers are extraordinary people, dedicated to your task and resilient in even the most difficult and trying of circumstances. Your dedication to your work is an example to us all, through the most difficult and trying of circumstances. You do a huge amount for the countryside, a countryside which is recognised and respected throughout the world. Your track record in harnessing technology to produce quality food at competitive prices is second to none.

It is incumbent upon us, mere politicians, to do our best to help you. And that is indeed what the next Conservative Government will do."

Rt Hon
Michael Howard QC MP