European Union Reporter (Update)
As we are pressed for time, we move straight on to agenda item 4, which is an update from our EU reporter. At the start of December, Jim Hume visited Brussels in his role as the committee’s EU reporter. I now ask him to report back to the committee.
Thank you very much. I start by thanking Ross Fairbairn, who accompanied me as clerk.
Last Monday, all committee EU reporters visited Brussels as part of an induction programme that was run by the European Commission in association with the European and External Relations Committee. In the European Parliament buildings, we received a general overview from Commission officials on the history of the EU, the EU budget, the financial and economic crisis in Europe and the size of the EU economy in comparison with the main economies in the rest of the world, which was all quite useful.
In addition, on issues that are of specific relevance to this committee, I met Pierre Bascou, who is the head of the European Commission’s agri department, George Lyon MEP and the chair of the European Parliament’s Committee on Agriculture and Rural Development, Paolo de Castro. Our focus was on common agricultural policy reform.
To give the committee an overview of the EU, there are two or three points that I think that it would be useful to make. Of the whole budget, 11 per cent is set aside for rural development, 31 per cent is spent on agriculture and 45 per cent is allocated to sustainable growth, competitiveness and cohesion. It is probably also useful for this committee—and other committees—to note that the future agenda of the Commission and the European Parliament seems to fall under three broad headlines: smart, sustainable and inclusive. The “smart” headline covers things such as innovation, education and digital issues—those are of interest. Under “sustainable” are issues such as climate change, energy and mobility. Under “inclusive” are employment and skills, and addressing poverty across the European region.
As I said, we met Pierre Bascou, who is the head of the EC agri directorate general; his proper title is chef d’unité. Interestingly, he was adamant that the CAP reforms would be implemented by 1 January 2014—that was the first time that I had heard that said. He did not foresee much resistance to them. He thought that the technical decision-making process was nearly at an end—he was very clear on that. He believed that although the budget has not yet been agreed, the percentages would not change too much, and that member states’ share of the budget, whatever it turns out to be, would be similar to, if not the same as, current levels. He did not foresee the CAP moving to a flat rate in the near future; he thought that that would be more of a possibility for 2020. He thought that limited convergence by member states would be proposed. He believes that the transition will take seven years.
Pierre Bascou also reiterated that it was for the Scottish and UK Governments to agree on who attends European meetings about the CAP, the common fisheries policy and so on. He thought that payments for Scotland might change and that, under a proposal for limited command of agricultural payments, soil quality would be an issue. He thought that coupled payments would be possible for Scotland, but only to a certain percentage of the CAP. The James Hutton Institute’s land classification might therefore be used.
I noted that a negative list would be planned for land if we went to a hectarage payment. A negative list would include things such as golf courses and airports, and would ensure that they could not make claims under the common agricultural policy. Proof that land would be used for farming would be needed—the EU is willing to stop slipper or sofa farmers claiming funds.
Pierre Bascou thought that there was the possibility of a small decrease in the overall agricultural budget from 2 to 4 to 5 per cent overall—that will be decided by member states soon and is obviously an unknown. He was keen to focus on new entrants—young farmers who are under 40—under pillar 1. I pressed the point that we were interested in new entrants but not necessarily in an age limit.
Pierre Bascou also said that greening would be part of the new CAP—there does not seem to be much movement from what we knew already. He reiterated that he would be more than happy for the committee to contact him directly at any stage. I have with me his direct contact details, which I can pass on to the clerks. The door is open.
After that meeting, I met George Lyon MEP. Members will know that he wrote the Lyon report, which was the initial discussion document for the European Parliament. His view is that the CAP will go through if the budget is passed in February. He did not agree with the date of 1 January 2014 that Mr Bascou suggested.
George Lyon reckoned that there was not the battle between contributing and non-contributing EU countries over CAP reforms that we on this side of the Channel thought existed. He thought that the parts of the reforms that might affect Scotland most were greening and convergence.
George Lyon said that the majority of member states—but not the major, larger member states—are in favour of capping the CAP. That could create a precedent for reducing the CAP continually. As Scotland has larger farms, that could have a negative impact. Like Pierre Bascou, George Lyon believes that the CAP transition will take seven years.
The Irish presidency will run from January to June 2013. It is believed that sewing up the CAP and ensuring that it is delivered will be very much on the Irish agenda. Lithuania will take over the presidency from July to December.
The three-crop rule has been a bit of an issue in Scotland. That seems to have been addressed—I should have said that Pierre Bascou mentioned it, too. That should not be an issue; local practices that have been on the go for many years should be able to continue.
13:00
I had about 25 minutes with Paolo de Castro, who is the chair of the European Parliament’s Committee on Agriculture and Rural Development. In direct conflict with the agri head, Bascou, Mr de Castro firmly believes that the CAP reforms will not come into place until at least 1 January 2015, which is a whole year later. He takes that view because the multi-annual financial framework has not been agreed; he thinks that it will probably not be agreed until March. Talks would follow that and there would be secondary delegation, so he does not foresee the reforms being in place and running on 1 January 2014.
Mr de Castro expressed frustration that CAP reform has been pushed by the Commission and not the Parliament. That is how the system over there works—the Parliament deals only with legislation that comes from the Commission. His strong wish was for the new CAP to address food security, and he believes that it will. Of interest to the committee is the fact that he thinks that a mid-term review will take place, possibly in 2017. His keen wish, which I believe that others share, is for the CAP to focus more on food security at that mid-term review, which could be more revolutionary—if I can use that word—than the reform of the CAP, as was perhaps the case back in 2004, when we had quite a revolutionary mid-term review.
I have more copious notes, but I realise that we are struggling for time. I would be happy to give more information at any stage in the future. I thank Ross Fairbairn in his absence—oh no, he is hiding over there; I apologise to him—for doing sterling work.
Members might have questions for you but, given the time, should we make space for those questions at another point, unless they are pressing? We would love to explore some of the points in a bit more depth.
I thank Jim Hume for going to Brussels on our behalf. His report has provided us with quite a lot of information.
The visit was useful.
That is good.
Our final item will be taken in private. On 19 December, the committee will take evidence in round-table format on parts 4 and 5 of the Aquaculture and Fisheries (Scotland) Bill, which relate to shellfish and sea fisheries. That session should be shorter than today’s evidence sessions but, following that, as part of our duties we will meet the UK Committee on Climate Change and its new chair, Lord Deben.
13:03
Meeting continued in private until 13:07.