BBC On The Record - Broadcast: 04.02.01

Film: DAVID GROSSMAN suggests that Conservative plans to help agriculture may run into opposition in the European Union.



DAVID GROSSMAN: With allowances for the motorbike and the baseball cap, this is a timeless scene of rural Britain. A shepherd and his dogs tend the flock, a partnership of trust and respect that achieves results far beyond what either could manage alone. For generations this is how the Conservative Party has seen its relationship with the countryside. But the BSE crisis and the ongoing problems of the farming industry has left the Tories anxiously looking around for solutions to offer farmers. Much of the Conservatives' appeal to rural voters works on an instinctive level. Just as well say critics because scratch the surface of the Tory farming policy and there's not much underneath. No mention of farming for example in the Tories' recently published spending plans. And worse; it's alleged that what the Conservatives do promise to farmers, the party is completely incapable of delivering. SEAN RICKARD: Farmers believe if they hang on, maybe there will be a Conservative government, that maybe will bale them out. Truth of the matter is that we saw under you know eighteen years they weren't baled out under the Conservatives and they're not going to be baled out under a future Conservative government because there isn't enough money to do it. COLIN BREED MP: Well essentially it's all promise and precious little opportunity to deliver it if we actually look at what they're saying and what they can actually do are two entirely different things. GROSSMAN: British farmers have always needed several pairs of hands. In Norfolk, the Wymondham Young Farmers Club is having fun at a juggling workshop. The sad truth is that most of these young people have more hope of running away to join the circus than they do of earning a full time living from farming. When not attempting to spin plates, Nigel Frost has to balance his love of farming with the need to make a living. To pay the bills he has a full time job as a groundsman at a local college, his paid employment bracketed by long hours on his smallholding NIGEL FROST: A normal day for me would be to get up at half past five and start feeding the stock. Then I'd go to my full time job until 4 and then come back here and working right through, some evenings it can be half past eight, nine o'clockish time. GROSSMAN: Nigel isn't alone in finding farming economics desperately tight. According to the government's own figures the average farmer's income is now only 8 and a half thousand pound a year, a drop of 2 thirds since 1995. FROST: On the small scale on which I'm on it's very bleak unfortunately. However hard you like to try and work and however much effort you like to put into it, it seems to be to no avail really. GROSSMAN: The great outdoors brought into the great indoors of London's Earl's Court. The National Countryside Show is a world away from pig pens in Norfolk. This is the cuddly countryside with bags of traditional charm, a whole Disney film full of well behaved wildlife, four wheel drive comfort to get about in and of course a minimum of muck. When the ancestors of these mighty shires hauled ploughs across the land we had an agricultural sector every bit as impressive. Nowadays, unfortunately, the once massive horsepower of the British farming sector has shrunk to the scale of a little runabout. And recently this far weaker farm economy has had to carry the almost unsupportable burden of Sterling's rise in value against the Euro. RICKARD: 40% of farm incomes comes from payments which are set in Euros in Europe and translated into pounds. If the pound strengthens, then therefore the value of their payment goes down. So, as a result of a strong pound, not only do they suffer lower prices for what they produce, they also suffer lower price...lower value for their direct payments. And this is why membership of the European Monetary Union would be of great benefit to the farming industry. DAVID CURRY MP: My views on this have always been very well known and I think Britain should be ready to join the Single Currency, if it's in our national interests and if it's endorsed by the British people in a referendum. So I don't think the policy of ruling it out for a particular period is actually a good policy. Now what is the impact of that on farmers? - the level of the currency affects the actual value of the supports which are paid. It affects the prices of imports, it cheapens them. It affects the price of exports, it makes them more expensive. So, from a purely farming point of view, had Britain been a founder member of the Single Currency for example, then farm incomes would be better than they are now. GROSSMAN: Among Earl's Court's urban cowboys is the Shadow Agriculture Minister Tim Yeo. Committing Britain to a Single Currency is obviously not Tory policy. But there is something Mr Yeo could promise to help farmers cope with currency fluctuations at the same time as fighting to defend British tills against the arrival of the Euro. There now exists a programme of European assistance to bridge currency gaps called agri-monetary Compensation, but no government Tory or Labour has ever claimed it in full. CURRY: Every single government has always been hesitant about this. The way the British rebate works means that if we do draw down all the compensation, roughly speaking two thirds of that is actually paid by the Treasury in its complex way in which it happens, that the Treasury stumps up about two thirds of the bill, Treasuries don't like stumping up that amount of money. And so there's always been the business of prising it out of the Treasury. This government is precisely the same as the previous government in doing so and any future government will be exactly the same as its predecessors. PLUMB: With fifteen countries in the European Union, in every single case, in every other country except Britain, as soon as the Exchange Rate has divided to the disadvantage of the farmers in any country, the agri-monetary system has been applied. Now that means of course there has to be a make up of money from the Treasury, as well as giving the benefits of the adjustment which is money that comes from the commission or from the European Union. GROSSMAN: At Brooksby Melton agricultural college in Leicestershire, the students learn how to weigh the herd. But if they do become farmers the weightiest matter they'll have to deal with will be the Common Agricultural Policy. A behemoth of a programme that governs most of what grows or grazes across half a continent. It tips the scales at nearly 30 billion pounds a year - about half the EU's total budget. All the main parties agree that the CAP is in desperate need of reform and has to be moved away from production subsidies which are blamed for a lot of waste and overproduction, towards wider support for rural communities, environments and landscapes. But unlike our friends here, the CAP promises to be a very difficult beast to tame and given the Conservatives' generally Euro-sceptic philosophy, critics question whether the party would be in any position to achieve reform. BREED: We all talk about reforming the Common Agricultural Policy, and it's absolutely essential, but it will only be done by consensus and by agreement, by partners joining together and agreeing together what needs to be done. The way that the Conservatives handled Europe in during their eighteen years of administration, was to isolate Britain, to make enemies of the people that are our partners. That will be a disaster if we went back to those days. CURRY: If you're going to deliver CAP reform you've got to build coalitions. I mean Europe works on a consensual basis. Our politics works on trying to define a difference and then deciding which option we're going to take. In other words it's a confrontational view of the way democracy works. The continental system is most consensual, because you've got majority votes in the Council of Ministers you've got to build partnerships. GROSSMAN: It's also hard to see how the Conservatives are going to build partnerships if they go ahead with another plank of their proposals. At Brooksby Melton college the students spend much of their day making sure the animals are healthy and happy. The Tories say Britain's emphasis on animal welfare and food safety is in stark contrast to much of the rest of the world. A Tory government they say would ban imports that don't meet our exacting standards. BREED: Well the Conservatives cannot continue to tout a populist line by trying to suggest that we can ban French beef or ban other products which don't meet our animal welfare standards. First of all it's illegal and we are trying to ensure that what we do in Europe this time, remains legal and is correct in all its terms, but also it simply will just provoke a tit for tat operation. Somebody bans our beef, we then say we're going to ban your products and this will roll on, much to the detriment of British agriculture. And our farmers know that. PLUMB: I think it's tough talk to say we will stop importing from those countries, but you have to make sure that you try to work within the rules, within the rules of the business of trade and because if once you start saying we will not import then of course other countries can do the same and say well, tit for tat, you know we will stop importing your stuff, if that is so with us, so I think rather than do that, on a fair basis, I think British farmers will say I have nothing to fear, I am prepared to compete with other countries either in Europe or elsewhere in the world, as long as we're competing on a fair basis. GROSSMAN: Banning inconvenient imports could be seen as part of the Tories' attempt to drum out a populist beat with its farming policy. Another example perhaps came the summer before last when the party latched on to the public opposition to GM crops - all great at grabbing tabloid headlines, not so effective at helping farmers steer a sensible course through what is a highly complex issue CURRY: We are wrong on this. And I think we're in serious danger of pursuing what is seen as a sort of anti science, anti development policy which could have quite wide implications and I recognise that there are.... some of the popular press is baying in a hostile way to GM crops and I think some of our policies are rather inclined to..than find what the Daily Mail says and agree with it. GROSSMAN: At the end of a fifteen hour working day there's one more job to do before Nigel Frost can hit the hay himself. He'll listen to any politician who claims to have the answers to his problems. But it won't be enough for the Conservatives merely to proclaim that they understand the countryside. The party will also need to convince farmers that their proposals will make agricultural life in Britain at least a little better.
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.