BBC On The Record - Broadcast: 02.04.00

Interview: NICK BROWN MP Agriculture Minister.

Interviewed about the crisis facing British farming.



JOHN HUMPHRYS: But first, Tony Blair hosted a "Farming Summit" at Number Ten last week and sent the farmers away with a promise of more money to help them out of their crisis. But the crisis remains and no-one, least of all the farmers themselves, believe that things can carry on as they are for very much longer. Something has to give. The Agriculture Minister Nick Brown is with me. We'll talk about that in a minute if we may Mr Brown but the Country File programme that was on the air just before us showed, as you may know, a report from Queen's University in Belfast, amongst other places, about Chrone's disease and the bacterium that causes it which is apparently found in three out of every hundred bottles of milk. Now that on the face of it sounds desperately worrying. Are you worried about it? NICK BROWN: The bacterium that's referred to in the programme is a world wide problem, this isn't unique to the United Kingdom and of course it's killed by pasteurisation. HUMPHRYS: Yeah, but not all of it apparently. BROWN: Well in the laboratory experiments that the government has done, the normal levels and above normal levels are killed off by pasteurisation. The theory is, and there's no agreement amongst scientists about this, that in some circumstances it may get through and there may be a link but the scientific advice to government doesn't tell us that that's the case and as with everything in this area, the government relies on being professionally advised. HUMPHRYS: But because there is this disagreement between the experts and some very sensible, very serious senior people they're saying it is terribly worrying indeed, are you going to do anything about it? BROWN: Well there is a research programme that's underway now. As you know, responsibility for these issues has just transferred to the Department of Health and to the new Food Standards Agency...... HUMPHRYS: Will they be looking at this? BROWN: Well they take the lead in this issue from now on but we have been not only pushing forward the research frontiers, we've also conducted our own experiments and at normal levels and above normal levels the bacterium is killed off by pasteurisation. Pasteurisation itself is a very powerful public protection measure. I mean that's why it's in place. HUMPHRYS: But because of this research and because of the warnings raised by this particular professor you wouldn't say people should be cautious about drinking milk? BROWN: No. No..... I wouldn't.... I mean this is just a personal view, although we still allow green top milk which is unpasteurised milk to be sold, I personally don't drink it. I drink pasteurised milk and it's safe to do so. HUMPHRYS: Absolutely safe as far as you're concerned? BROWN: I'm not going to get into a debate about what is absolutely safe. It isn't absolutely safe to go to bed at night. We're getting into a semantic area now but it's certainly safe enough for me to feel I can drink it with confidence. HUMPHRYS: Okay. Two hundred million pounds for the farmers as a result of this farming summit, not much of a summit as it turns out but there we are. The Prime Minister met a few farmers and talked to a few people and you came away with this two hundred million pounds which you will no doubt be very pleased with. But you would accept that it is no more at the very best than offering a breathing space. BROWN: It was a very successful summit and the best things that came out of it weren't the things that had a price tag attached. The retailers were able to present their new Code of Conduct for the supply chain. Now that's something that's going to be enormously welcome to farmers and to distributors and processors and to the retail chain itself. Ben Gill was able to launch - the President of the NFU was able to launch the new quality assurance mark which pulls together the different quality assurances and enables people in the supermarket, because the retailers pledge to use it to buy British Assured Standards and they said, the supermarket leaders said they would be using it on British products, so you look for the mark, you're getting a high standard product and it's British. HUMPHRYS: But it's money that they want understandably because their incomes have fallen. If you look at the figures as you know very well indeed, have fallen by sixteen per cent in the past five years, that's nearly five billion pounds. Now when you set two hundred million pounds against that it isn't very much is it so they are still in crisis are they not? BROWN: John, they're my ministry's figures. I mean farm incomes have been depressed for the last three years and we have never concealed the extent of that. What we're trying to do is to develop sensible policies that will get British agriculture through to better times. We cannot buy the problem out and the money that was announced last Thursday isn't an attempt to do that. What we're doing is targeting the money that we have got, measures that we know will get farming through to better times. We're spending it on a range of things: Hill farm supports, lifting the weight limit on the OTMS which will be a help to dairy farmers......... HUMPHRYS: OTMS is the ........ BROWN: It's the Over Thirty Months Scheme.... I'm sorry some of this is quite technical, but the idea is to try and tackle the three problems which are low commodity prices on the world market, the weakness of the Euro, and that's why we've made proportionate use of the counter-veiling agro-monetery compensation, and the BSE Public Protection Measures which do put an extra cost onto UK farmers and the government at the summit accepted the cost of some more of those measures ourselves, hence the point about lifting the weight limit. HUMPHRYS: But if you asked most farmers what their biggest concern is in relation to their drop in incomes they would say it's the value of the pound, it means that they cannot sell their products abroad at the sort of price that means anything for them at all and therefore they are in very serious trouble as a result of that. Now presumably you've not been banging on Gordon Brown's door saying 'Do something about the value of the pound' because that's by and large not something that industry ministers are paid to do and you'd need to be a very brave man indeed, perhaps you are a very brave man indeed and perhaps that's what you've been doing, but in the absence of that then it has to be a restructuring of the industry doesn't it? BROWN: Yeah. Well I do favour a restructuring of the industry regardless of the exchange rate position. The fact of the matter is that world markets are liberalising, the CAP is bound to reform, there are enormous pressures upon it, we need to get ahead of the game not run behind it and make British agriculture much more market orientated. There are a range of different ways of doing that: The choices for the individual farmers who are running individual private sector businesses the government is there to help and that was the purpose of the summit on Thursday and the range of announcements that followed. HUMPHRYS: Let's be clear what we mean when we talk about restructuring. What it actually means is a cut in the number of people working in agriculture, that's effectively what it's all about isn't it? BROWN: I'm not sure that that is so. I mean there's been a steady movement for farms to amalgamate and to get larger in the United Kingdom..... HUMPHRYS: Which means fewer people BROWN: Well, that's nothing new. I mean that's been going on .... HUMPHRYS: Absolutely! BROWN: I mean since the Second World War that has been a discernible trend. Another discernible trend is a steady decline in the numbers of people employed in agricultural production, but that is a trend that may be bottoming out now, and may even reverse with some speciality markets. Organic farming is one obvious example, it's labour intensive, but.... HUMPHRYS: ... described as a speciality market, but... BROWN: I know, well we can quarrel about that later, but the developments of the farmers' markets movement as well is a great way forward for the small and medium sized farmer, and that also is labour intensive. So it doesn't mean that there has to be a steady move towards agri-business as you would put it without any countervailing factors. HUMPHRYS: Well, then it's odd in that case that one of the documents that was published by your Department on Thursday after the summit talked about, and I quote from it 'a faster restructuring would result in a faster run-down of the number of farms and the number of people working in farming', and that was accepted BROWN: All of that is true, but it doesn't mean that the total numbers of people employed will necessarily go down. HUMPHRYS: Of course it does. A faster restructuring, a faster run-down on the farms, and the number of people working in farming. BROWN: Because the jobs move downstream. I mean is running a farmers' market working in farming? HUMPHRYS: The reduction of rundown - faster rundown in the number of people working in farming. BROWN: Well, that is a steady discernible trend. The point I'm trying to make is there may be new jobs coming in farm businesses which are not what you'd call conventional agriculture. Running a farmers' market is one such thing, running a riding stable for example, is that agriculture? It's certainly a farm business. HUMPHRYS: But we're talking about a hundred thousand people over the next five years. That's the sort of figures that we're talking about. They're not all going to run farmers' markets, and I went through the document that you produced with a reasonably fine tooth-comb and the only thing that I could see that it really offered them was talk about the horse industry. Well, for heaven's sake how many people are going to be able to run pony trekking operations. Not too many in west Wales or Cornwall I can tell you, or Cumbria for that matter. BROWN: I think you're actually wrong to speak prejudicially about that. It is actually quite a strong sector and one of the things that came out of the summit were new moves to encourage it. We're talking about... HUMPHRYS: A hundred thousand people, let's be realistic. BROWN: ..farm business diversification more generally, and the areas that are always pointed to are farm-gate businesses, are the potential for tourism, their potential for converting agricultural businesses to other economically.... HUMPHRYS: This has been going on for year and years and years. BROWN: ...viable uses. And the government wants to encourage that trend. HUMPHRYS: There is a limit to.... BROWN: What we cannot... HUMPHRYS: .. how everybody can take in paying guests. There aren't enough to go round, you know. It just doesn't work like that. BROWN: It is a necessity for those running farm businesses to focus on the income streams and to make sure they've got enough income streams to make a living. What you cannot ask the Government to do is to pay the problem up, and that's the message we're giving loud and clear, and what we're trying to do is to put money behind alternative routes, and you can say: oh well each individual route doesn't amount to very much, but the sum total of them does. HUMPHRYS: What a hundred thousand jobs?. BROWN: Well, you know. Yes. HUMPHRYS : Because that's the figure you're talking about isn't it? BROWN: Who knows how many jobs. Uniquely in the United Kingdom there is a drift from urban societies to rural ones. A pattern world wide in developed societies is the other way round. There is something quite special going on in our country, that most of the people who go to live in the countryside now don't do it to get employment in farming. HUMPHRYS: No. Because they work in the cities. They come and work in the cities. Most people who go and live in that nice little village a hundred miles away or sixty miles away or something, go to work in the nearby town. They're not working in the country - it's a great myth that they're working in the countryside, they're not. BROWN: That's not entirely true either. I mean with the growth of new technologies and the growth of home-working you find a lot of people working in the service sector ... HUMPHRYS: But they're not creating jobs are they. You can be sitting there playing with your ... or doing something terribly important maybe with your word-processor or your little internet operation - you're not creating jobs. BROWN: Well, I fundamentally disagree with that. Economic activity is economic activity and not all work involves you know, manual work on a farm. HUMPHRYS: Of course it doesn't all involve manual work on a farm, but I repeat, we're talking about a hundred thousand jobs. We're talking about a major restructuring, and when the Dutch looked at their problem, as they looked for instance as you very well know at their pig industry of which there is too much, too many pigs, not enough people buying the bacon and all of that, so they said, well now we've got to get a lot of people at fifteen per cent of cut back, which is more or less what you are envisaging as I understand it, and they said: we're going to put a lot of money into this. They put five hundred million pounds into it. Well what are we talking about? We're talking about twenty-six million pounds. BROWN: The Dutch example is not a good one because as you know they've had a recent outbreak of classic swine fever. The industry had to run right down in order to control the disease, it then built up again very fast indeed and arrived at substantial over-production just as the whole market crashed. So they've had to take pretty radical surgery.... HUMPHRYS: But the end result is the same. They had as it were, to buy out those jobs because they didn't want massive depression in there, so they spent five hundred million quid, we're spending for the same sort of job and the figures are comparable, the figures are roughly comparable. We're spending twenty-six million. BROWN: But the correct analogy with the Dutch pig industry would be with our BSE crisis. Remember it's how they respond to things that have gone wrong in the industry after a dramatic disease. It's not how you respond to things that have gone wrong in the industry after a dramatic swing in the classic industry cycle which is what is the case here in the United Kingdom. There was huge over-production in nineteen-ninety-six because people were getting a decent price for the product and so they.... HUMPHRYS: ... I understand that... BROWN: The European Union market then fell away largely because exports to eastern Europe collapsed so there was an enormous amount of surplus product, some intended for the domestic market, some displaced from overseas markets and the prices came crashing down. HUMPHRYS: But in this country..... BROWN: It has probably been the deepest downturn in what is called the classic pig cycle ever, and the Government has taken countervailing measures inasmuch as it is for government, but what a lot of people don't understand is that pig farmers, unlike sheep and dairy and beef, are not covered by aid programmes from the Common Agricultural Policy, so devising a policy involving public money to help the sector isn't an easy thing to do. HUMPHRYS: But it is going to get worse in this country isn't it, I mean, competition is going to get worse. The Americans are pressing very hard, in the end what the Americans want the Americans tend to get, so that we are not going to be able to subsidise it in those areas that we can subsidise, beef and sheep and so on, we are not going to be able to as much of that in the long run as, as we are at the moment, so the upshot of all this is that we are going to see a very, very changing rural Britain, aren't we? And we are going to see many fewer jobs and we are going to see many fewer farms. BROWN: We are going to see changing agricultural businesses. I agree with you long-term trends in employment are downwards in direct production although I don't agree that that necessarily means that the related jobs will go, in fact, I think they might even increase. The key issue for the government is to make sure that we take the supports from the supply side supports, the production supports that we pay now, and that we pay rural supports, use public money to preserve the countryside in the way we want to keep it, but to make sure that those payments to farm businesses, buy in environmental goods and are decoupled from agricultural production. HUMPHRYS: Let's try and make that a bit more simple so that we follow what we are saying here. In other words, you will not in future pay farmers to grow things, particularly those things that we don't want and we can't sell and we put into store or whatever it happens to be or sell cheaply somewhere else, we will not do that, we will pay them to manage the countryside, in effect. BROWN: That's the road down which we're travelling. Now, it's not going to change overnight, but we are remorselessly in a period of change. It means that farm business have to be more market focused and that the government supports in the future are much more likely to come for purchasing valuable public goods, like the landscape, like the shape of the countryside, and not subsidising food production. HUMPHRYS: But that in itself, the way you describe it, is very, very expensive and we are not at the moment putting in anything like enough to keep the farmers doing, or to get more farmers more specifically to do that sort of job, and that's the crucial thing isn't it. BROWN: No, but last December I announced a sixty per cent increase on the resources that the government were going to apply.... HUMPHRYS: ....on a very small figure.... BROWN: No, that's true, but I got a thirty per cent increase in the amount of money that comes from Europe to our country, you're right, on a very small base, but it is an extra three-hundred million pounds over seven years, and that's new money, real new money, for England alone. HUMPHRYS: But there's got to be much more hasn't there, ultimately. BROWN: My view is, that in reshaping the Common Agricultural Policy, we should put more money behind the instrument I am just describing and put less money into direct Agricultural supports or compensation for price cuts. HUMPHRYS: And we'll see a different Britain in fifty years time, twenty years time, ten years time. BROWN: I think it will be on a much shorter time-scale than that, but the key thing is to reform the Common Agricultural Policy. HUMPHRYS: Nick Brown, thank you very much indeed. BROWN: You're very welcome, as always.
NB. This transcript was typed from a transcription unit recording and not copied from an original script. Because of the possibility of mis-hearing and the difficulty, in some cases, of identifying individual speakers, the BBC cannot vouch for its accuracy.