The Archbishop of York (Bishop)

To ask Her Majesty's Government how they intend to provide additional support to sheep farmers following the implementation of new electronic identification requirements in 2010, given the current inaccuracies in tag reading equipment.

Lord Davies of Oldham (Deputy Chief Whip (House of Lords), HM Household; Labour)

My Lords, the Government are aware of concerns about the ability of electronic reading equipment to capture individual information on every animal passing through central point recording centres, particularly where it could impact on keepers' single farm payments.

The Government do not think that it is reasonable to penalise a keeper in these circumstances. I am pleased to confirm that keepers will not be penalised through their single farm payment when incomplete data are provided by a central point recording centre.

The Archbishop of York (Bishop)

I am grateful for that Answer and for the Minister's assurance that a failure of equipment will not result in penalties through single farm payments. If it did, it would not be good for those farmers' well-being or health. If tagging equipment fails on prisoners, those who use that equipment are never penalised in their pay, so why should the farmers be?

Lord Davies of Oldham (Deputy Chief Whip (House of Lords), HM Household; Labour)

My Lords, I know that the most reverend Primate has taken a keen interest in these matters, which are of course of the greatest concern to sheep farmers, particularly those on hillsides and upland areas. I am grateful for his interest, which has occasioned letters to my highest authority—namely, the Prime Minister, who is perhaps not the most reverend Primate's highest authority—as well to my Secretary of State. I am pleased that we have been able in our discussions to reach a position of some improvement.

Lord Vinson (Conservative)

My Lords, one must acknowledge that the Government have done their best to stop this unnecessary, expensive and crazy EU regulation, which they are now enforcing reluctantly. However, does the Minister not agree that it is a tragedy that we are debating the matter at all? Is it not a triumph of EU bureaucracy over our democracy and an example of the democratic deficit that lies at the heart of the EU experiment, which will surely lead to its downfall?

Lord Davies of Oldham (Deputy Chief Whip (House of Lords), HM Household; Labour)

That was a modest question, my Lords, to which my response is straightforward; namely, that this regulation has been imposed against the will of the British Government, because we have been largely in a minority of one in our concern about EID, not least because we have one of the largest sheep populations in Europe. Others have embraced the regulation more enthusiastically. The Spanish and the Italians, for example, are already implementing the system. However, the noble Lord will give credence to the fact that it is being introduced as an animal health measure, against a background where, in 2001, Britain in particular paid an enormous price for foot and mouth disease. Europe has pursued a strategy which is not fully consonant with what we would have wished. That is why we have worked so hard to effect the policy in a way that minimises its impact on farmers.

Lord Lloyd of Berwick (Crossbench)

My Lords, in the short time that I have been a keeper of Southdown sheep, we had, first, single ear tags, then double ear tags and, now, electronic tagging. Does the Minister see any end to Brussels making life more difficult for farmers?

Lord Davies of Oldham (Deputy Chief Whip (House of Lords), HM Household; Labour)

Well, my Lords, we have emphasised to Brussels, and in the negotiations within the Community, the problems with this scheme. Given the costs of this exercise, and its relative sophistication, there is no question of a refinement of this position in the foreseeable future. We have to live with what is proposed.

Lord Greaves (Liberal Democrat)

My Lords, I congratulate the most reverend Primate on asking a question which refers to the sheep and the goats. Is it not the case—

Noble Lords:

Oh!

Lord Greaves (Liberal Democrat)

One Bench understands the joke. The most recent statistics estimated the net annual income of upland sheep farms at about £5,000 a year. Despite the very welcome concessions to this scheme that the Government have negotiated it will still be a modest, but important, financial imposition on these farmers. Would it not be appropriate that recompense is given by modification of the support to such hill farmers?

Lord Davies of Oldham (Deputy Chief Whip (House of Lords), HM Household; Labour)

My Lords, the noble Lord is right to identify that upland farmers have some of the lowest farm incomes and are more on the margin than many other farmers, although prices have been more favourable to them in the past year. As far as help is concerned, we are on the brink of major negotiations regarding reform of the CAP and, whatever their view of the European Community, I doubt whether there is a single noble Lord who does not agree that the CAP needs reformation—if I can use that word in this context. We are looking towards reform of the CAP that would give a better deal to these farmers.

The Bishop of Lincoln (Bishop)

My Lords—

Lord Plumb (Conservative)

My Lords—

Baroness Royall of Blaisdon (Chancellor of the Duchy of Lancaster, House of Lords; Labour)

My Lords, we are in the 16th minute.