Sheep Farming: No-deal EU Exit

Motion made, and Question proposed, That this House do now adjourn.—(Jeremy Quin.)

When I was first elected to this place in 2010, I never thought I would find myself standing up to challenge the Government about the decimation of the UK’s sheep industry. The ancient practice of shepherding is as old as the hills, but it is now facing an unprecedented challenge brought by the threat of a no-deal Brexit. The threat of no deal brings with it a man-made, Boris-built disaster that could harm so many sectors from chemicals to cars, food to pharmaceuticals, and steel to services—virtually every area of economic activity in this country would be hit, and that includes the sheep industry. The idea that the rearing of lambs could be so comprehensively, cruelly and deliberately threatened by our own Government’s decision is beyond belief.

Keeping sheep is already a vulnerable business and a no-deal Brexit will just add to the problems. The unprecedented loss of markets and the imposition of tariffs and barriers will severely harm this industry.

Does my hon. Friend agree that this is yet another example of privileged, idle old Etonians who could not care less about the lives and livelihoods of our working hill farmers in Wales and across the UK?

My hon. Friend is absolutely right. I represent an urban constituency, but even in urban Darlington there are agricultural workers whose jobs would be affected by the effect of a no-deal Brexit on the sheep industry.

I thank the hon. Lady for bringing this matter to the House for consideration. I spoke to her earlier today and perhaps her opinion on Brexit is very different from mine, but the Conservative Government have indicated that as long as they have the power to do so, they will maintain the grants that are available for farmers, and for sheep farmers in particular. Does she agree that the problems and the deficits there might be in lamb prices could be offset by the Government’s commitment to give what the EU gives now?

If it was that simple, we would not need to have this debate. This is not just about farm payments; it is about loss of markets. That is something that has not been properly understood, and the Government have not given a decent account of what they intend to do to address it.

The hon. Lady will know that Scotland is home to one fifth of the entire UK sheep flock and that much of that work is being done by farmers and crofters in less favoured areas such as my own constituency. Leaving the European Union with no deal would have a devastating effect on farmers and crofters, so will she join me in urging the Government to listen to the words of Andrew McCornick of the Scottish National Farmers Union, who has said unequivocally that a no deal must be avoided because our farmers need security and fair access to European markets?

I agree with that. One of the specific problems faced by the farmers the hon. Gentleman describes is the fact that those flocks possess unique characteristics and that once they are gone they may never be able to be bred back into our national flock.

Is not the heart of the problem the fact that lamb would not be competitive if it had a 48% tariff placed on it? That would be an absolutely ridiculous situation. The Government might talk about short-term subsidies to help the immediate situation, but that is no way to save the industry as a whole.

That is absolutely right.

This will certainly devastate the hill farmers in my constituency, but we must also consider the impact that it would have on the landscape. Many people do not realise that our landscapes are the way they are because of grazing.

The hon. Lady makes an excellent point, and that is why even my constituents in urban Darlington care about what happens to our national flock and to the livelihoods of the tens of thousands of people who work so hard to keep our landscape the way that it is.

I wonder whether the hon. Lady was as disturbed as I was to hear the Leader of the House speak so casually earlier this evening of trading purely under WTO rules, given that analysis from the Agriculture and Horticulture Development Board suggests that WTO tariffs could add anything from 38% to 91% to the price of sheepmeat for EU buyers, which would be catastrophic for the sector.

I agree with the hon. Lady, and I will refer later in my speech to the report that she has mentioned.

Last week, I went to the Upper Teesdale Agricultural Support Service. Its concern is that because the Government have failed to bring forward the Agriculture Bill, it is not clear whether the Government have the legal powers to make payments in the event of no-deal Brexit. Does my hon. Friend agree that the Minister must answer that point this evening?

That is the first time I have heard that point made in the House; it is one that my hon. Friend and I discussed earlier today. She is absolutely right: farmers need to hear from the Minister what he intends to do about their payments, and we need to ensure that he has the power to make those payments. The principal problem for the sheep sector is that, according to the report the hon. Member for Edinburgh North and Leith (Deidre Brock) mentioned, under no deal the export of sheepmeat to the EU27 would be almost entirely wiped out, with the only exports being those via a tariff rate quota of less than 400 tonnes. Of course non-EU exports could increase over time, although the possible rise of around 5% would not be anywhere near enough to offset the loss of EU trade. Reduced trade with the EU would leave around one third of UK meat without a market.

I congratulate my hon. Friend. She is absolutely correct to raise concerns about the impact of a no-deal Brexit on the sheep industry in Britain, and nowhere will that impact be felt more than in Wales. In acknowledging the work that the NFU Cymru and the Farmers Union of Wales do on behalf of Welsh farmers, may I point out that 96% of all the Welsh lamb sent out of the UK goes to the 27 other nations in the EU? If we do not get this right, sheep farmers in Wales will be pushed to breaking point, and we cannot allow that.

This affects every region of the country, from the Lakeland fells, to Exmoor, to Teesdale, where I live. People are saying, “Why does this matter? Surely this just means that there will be more lamb for the UK market, the price will be cut, and we can all enjoy more lamb this Christmas,” but the problem is that we just do not have the facilities to safely slaughter, store and freeze that volume of lamb in the UK. If the Minister plans to introduce such facilities, he needs to say so tonight, because knowing that this year’s yield of around 15 million lambs can be safely stored and enjoyed by consumers, and therefore paid for, would be of huge benefit to the 34,000 people currently employed in the industry. If that meat cannot be stored and sold—even at a knock-down price—the sector will be decimated.

The Government have said that they are aware of the special circumstances that would lead to a substantial negative effect on the income of UK sheep farmers and that they would compensate farmers. To their credit, the Government have pledged to continue to commit the same cash total in funds for farm support until the end of this Parliament—although obviously that might be coming sooner than was anticipated. Financial support is already included in farmers’ business plans, but it does not compensate farmers for a sudden loss of market or for feed costs for animals that they cannot now slaughter. It does not ensure that sufficient feed is available to keep lambs bred for slaughter alive. It does not create abattoir or cold-storage capacity. It certainly does not create new export markets or offset tariffs, because that would be against WTO rules.

In answer to one of my written parliamentary questions on 18 July, the then Minister, the right hon. Member for Scarborough and Whitby (Mr Goodwill), said:

“We are doing all we can to mitigate the challenges our farmers will face and we have contingency plans in place to minimise disruption.”

My hon. Friend is making an important speech. Perhaps she can enlighten us or confirm this, but my understanding is that the breeding season is probably just about to start, because sheep gestation is typically around 150 days, if I well recall, so farmers must be planning now exactly what their programmes will be.