Cynulliad Cenedlaethol Cymru | National Assembly for Wales
Y Pwyllgor Newid Hinsawdd, Amgylchedd a Materion Gwledig | Climate Change, Environment and Rural Affairs Committee
Ymchwiliad i ddyfodol Polisïau Amaethyddol a Datblygu Gwledig yng Nghymru | Inquiry into the Future of Agricultural and Rural Development Policies in Wales
AAB 25
Ymateb gan Cymdeithas Llywodraeth Leol Cymru
Evidence from Welsh Local Government Association
1. The Welsh Local Government Association (WLGA) represents the 22 local authorities in Wales, the three National Park Authorities and the three fire and rescue authorities.
2. It seeks to provide representation to local authorities within an emerging policy framework that satisfies the key priorities of our members and delivers a broad range of services that add value to Welsh Local Government and the communities they serve.
3.
WLGA welcomes the opportunity to respond to the Climate Change,
Environment and Rural Affairs Committee’s consultation on
future of Agricultural and Rural Development Policies in Wales in
light of the UK’s decision to leave the European Union. It is
important that stakeholders are involved in helping to decide
future policy given the major implications that forthcoming changes
will have.
4. On a general note, the WLGA’s Rural Forum believes that ‘rural proofing’ of all new policies (i.e. not just agricultural and rural ones) must remain a requirement and could potentially be built in as an integral part of the approach required by the Well-being of Future Generations Act. Likewise, there are some other policy areas (e.g. relating to the movement of labour) that will impact significantly on agriculture and rural areas and these need to be considered as well as the policies that are the subject of this consultation.
5. Our responses to the main questions posed are set out below.
Q1: What are
the fundamental outcomes that we want to see from agricultural,
land management and rural development policies?
6. From a local authority perspective, seeking to promote the well-being of their residents, the desired outcomes can be considered under three main headings:
Economic
8.
It is vitally important to retain access to the single
market for Welsh food and drink products in ways that minimise
disruption to business and trade. There were £274.2m worth of
food and drink exports from Wales to the EU in 2014, with 90%+ of
exports of lamb and beef going to Continental Europe. Although
there may be opportunities to increase exports to other
international markets, it is unrealistic to think new markets could
be developed to compensate for lost sales into the EU (especially
in the two-year period after Article 50 is involved) [1].
9.
The economic impacts of ‘Brexit’ could work in
contrasting ways. For example, trade negotiations with non-EU
nations could open up the UK to cheap imported foodstuffs,
undercutting Welsh producers. On the other hand, a weak pound
and/or the introduction of tariffs on imports from the EU could
work in favour of some Welsh food producers. On balance though,
loss of access - or competitiveness - in what is currently the
major export market would deal a major blow to farmers and food
producers in Wales. Given the value of this trade, securing access
to EU markets must therefore be a top priority.
10. It
will also be crucial to find ways of ensuring that Welsh lamb, beef
and other products that currently have ‘protected
status’ within the EU (e.g. Pembrokeshire early potatoes,
Anglesey salt) retain a clear and widely-recognised brand of
quality after we leave. This status is important in terms of
preserving market share and sales, holding off competition from
lower cost alternatives.
11. A
replacement for direct payments
to farmers under the Common Agricultural Policy is another
essential economic outcome. They are worth £200m per annum to
Wales in the 2014-20 programmes. Without these payments the
majority of farm businesses in Wales would struggle to maintain
their viability. Whilst agriculture may not be the dominant player
it once was in rural economies it still has widespread indirect
benefits. Suppliers, contractors, food processors, restaurants and
tourism activities all depend heavily on the sector in one way or
another.
12. The
Chancellor, Philip Hammond, has stated that the UK Government will
work closely with stakeholders to ensure that funding in the period
immediately after exit is used to help the agricultural sector
transition effectively to a new domestic policy framework and that
these funds will be allocated using the principles of CAP Pillar
1.
14. The
Rural Development Programme (RDP) agreed with the EU has
been an important source of support in this respect (amounting to
£557m from 2014-20). It has assisted knowledge transfer and
innovation in agriculture, forestry, and rural areas. Its aims
include enhancing the viability and competitiveness of all types of
agriculture and promoting innovative farm technologies and the
sustainable management of forests. They also include promoting food
chain organisation, including processing and marketing of
agricultural products, animal welfare and risk management in
agriculture. Provision for these activities in replacement
programmes will be required.
15. Other
structural fund support (via the European Regional
Development Fund and European Social Fund) has enabled major
infrastructural, business support and training projects that have
been vital to rural economic development over recent years. Seven
of the nine ‘rural’ authorities in Wales are in the
West Wales and the Valleys area which has been eligible for the
highest levels of EU support, reflecting the levels of need in
these areas. In total, some £1.8bn of EU structural
funding has been allocated to Wales in the current programme alone.
A successor regional policy will be needed once the current EU
programmes cease and it is vital that the level of funding
available is sustained and support for such schemes in rural areas
continues to be provided.
16. Wider
economic opportunities linked to the natural resources of rural
areas need to be considered too. The concept of ‘payment
for ecosystems services’ needs to be developed for
inclusion in any new policies, drawing on lessons learned from
existing EU agri-environment and greening initiatives (see response
to Q2 below). Land owners can then maximise income generating
potential and provide new and enhanced sources of local income and
employment over and above food production (e.g. for carbon
sequestration, energy generation, flood alleviation, timber
production, nature conservation, climate change mitigation and
general amenity value).
17. For
rural businesses generally (often very small, micro-businesses), it
is important they continue to be eligible to receive support
under new regional/industrial policies. Any movement towards
solely ‘opportunity’-focused policies should be
resisted strongly; the ‘needs’ of rural economies must
also be recognised. There may be opportunities to develop
simplified criteria for business support whereas at present there
are various different sources each with their own requirements
(e.g. RDP, Welsh Government/Business Wales, local authority
support).
18. Innovationwill be crucial on all fronts. It is essential that we build on the expertise that exists in academic establishments operating in rural Wales and apply this to support local economic activity. We must extract maximum benefit from European funding opportunities for research, development and knowledge transfer whilst they still exist and lobby for continued financial support as part of successor arrangements.
19. Related
to this point, fast and reliable broadband connectivity is
critical for rural businesses and communities. Domestic programmes
that succeed EU ones must include support for continuing the roll
out of Superfast broadband and emerging new technologies that can
help to overcome the remoteness of rurally based activity.
Environmental
20. Many
of the regulations that protect our environment and help to build
resilience have their origins in European legislation (e.g. the
Water Framework Directive, the Habitats Directive). These will need
to be brought into domestic legislation to provide ongoing
environmental protection. (The meeting of some environmental
standards can be expected to be prerequisites in future trade
negotiations with the EU).
21. Similarly,
legislation affecting animal health and food safety
standards should not change unless there is full consultation
with all stakeholders, including local government, and proper
scrutiny. This is particularly important if moves are made to open
up UK markets to food imports from countries where animal welfare
and food safety and hygiene standards may differ. Should this
result in any changes in the regulatory burden for local
authorities the additional costs would need to be fully
covered.
22. The
policies also need to give certainty with regards to EU
legislation which is still currently under discussion. For example,
Nitrate Vulnerable Zone legislation is due to be introduced to
protect water from nitrate pollution from agricultural sources.
This could have major implications for farmers in identified
geographic areas, potentially requiring a major increase in their
slurry holding capacity and restricting the number of head that can
be grazed per hectare. Another example would be the Renewable
Energy Directive which could affect the amount of crop-based
biofuel included in road fuels. Clarity is needed as soon as
possible over the extent to which such measures will be included
and enforced.
23. Agriculture
has shaped the landscape of Wales. It is key to maintaining the
landscape and natural environment for protected habitats and
species, especially in uplands and on marginal land.
Agri-environment schemes introduced by the EU have been
innovative and helped to highlight the important environmental role
that agriculture can play. There may be opportunities
post-‘Brexit’ to learn lessons and develop schemes that
are better suited to Wales’s specific needs and can deliver
long-lasting outcomes that improve the environment and, in turn,
local resilience.
24. The
RDP has provided funds to help restore, preserve and enhance ecosystems related to
agriculture and forestry. It has also promoted resource efficiency
and supported the shift towards a low carbon and climate resilient
economy in agriculture, food and forestry sectors. The need for
these outcomes remains and therefore replacement policies need to
provide ongoing incentives and support.
Social/cultural and community
Q2: What
lessons can we learn from current and previous
policies?
30. As
noted above, the CAP and structural funds contain important support
mechanisms that are vital to rural life. These need to continue to
be available through appropriate successor policies. However, there
is scope to ensure any support offered in light of new policies is
tailored more closely to the needs of Wales, recognising the range
and diversity of rural activity and landscapes across the country.
Wherever possible administration should be simplified, multiple
delivery channels should be avoided, and advice and support should
be available online and locally.
31. The
move to a more strategic approach in the current programmes has its
merits but it is also important that successor programmes find ways
of connecting with communities and are not viewed as distant and
‘top-down’. Lessons can be learned here from the
community-led local development work under the RDP.
32. In addition, Wales has experience of a number of countryside/agri-environment schemes (payments to landholders to maintain or enhance the natural environment):
· Tir Cymen + Habitat & Moorland schemes: 1992-1998
· Tir Gofal: 2000-2009
· Tir Mynydd (Less Favoured Areas): 2001-2011
· Tir Cynnal (‘Entry Level’): 2005-2009
· all replaced by Glastir: 2009.
33. These
schemes have been important in terms of conserving biodiversity on
farmland, preserving the rural landscape, cultural and historical
assets, and providing access for citizens. Monitoring has been
shown to be crucial as it can inform improvement over time, leading
to better outcomes. The schemes work best when they are targeted,
based on good research. Since much farmland wildlife is now
dependent on the schemes it is vital that appropriate measures are
incorporated into any new policies.
34. As an indication of scale, a Wales Audit Office (WAO) report in 2014[3] found that by the end of 2015, the Welsh Government expected to have made grant payments of £119 million on Glastir, including £65 million of European Union funding. The WAO identified ways in which the scheme could be improved (including more use of evidence in target setting) and these lessons should be built into any new arrangements.
Q3: Should Wales develop its own agricultural, land management and rural development policies or should it be part of a broader UK-wide policy and financial framework?
35. Agriculture
policy and support was devolved to the Welsh Government under the
Government of Wales Act 1998. It would therefore seem a backwards
step to link Welsh policy in this area to policy in England. The
Welsh policy context is increasingly diverging from that in
England. The Well-being of Future Generations Act sets out a broad
framework within which any new agricultural and rural policy must
now operate. That same framework does not exist in England.
36. There
may, however, be areas where consistency of approach would be
helpful, for example in relation to competition policy; trade
negotiations; farms along or straddling the border.
37. Also,
it will be important to see what form of regional / industrial
policy emerges in the wake of ‘Brexit’ and the extent
to which the UK Government seeks to control these centrally, taking
over from EU. Alternatively, a funding allocation could be made for
regional policy in Wales as part of a UK approach but with the
Welsh Government left to determine the detail of its operation (in
association with stakeholders such as local authorities who would
wish to see the funding devolved down further to a local
level).
38. Given the important links between regional, industrial, agricultural and rural policies it will be necessary to ensure that they ‘join-up’ in a coherent way. Until high level decisions are made as part of the preparations for Brexit it is probably best to leave some options open at present.
[1] Moreover, access to markets outside the UK could be limited and/or trade negotiations complicated as a result of levels of bovine TB in Wales. The UK and Wales currently have EU-approved bovine eradication programmes, allowing them to trade.
[2] Valuing Wales’ National Parks, (2013), Report by ARUP for the three National Parks, NRW and WLGA. http://www.nationalparkswales.gov.uk/__data/assets/pdf_file/0009/389727/Valuing-Wales-National-Parks-.pdf
[3] Glastir, (2014), Wales Audit Office Glastir | Wales Audit Office