My Lords, I declare my interests as in the register. I will speak briefly to Amendment 146 but will refer in passing to quite a number of other amendments.
Before the CAP was even a glimmer in the eye of the founder of the European Union, the agricultural sector was operating in a regulated marketplace, which makes it quite different from almost all other kinds of business and commerce. In such a marketplace there is a need for all those involved to have a degree of certainty, which is as important from the Government’s perspective as it is from the agricultural sector’s. The parties need to know what the lie of the land might be, if I may put it thus. That is why Clause 4 is so important, because it sets the framework of the way the land lies for the transitional period and points to the world beyond it.
It seems that the problem surrounding Clause 4 is essentially twofold. First, the process of Brexit has been so drawn out that the length of time to effect a seamless move to the new era is too curtailed for it to be achieved as originally envisaged. Secondly, the coming into being of the ELMS—the environmental land management scheme—which was intended to replace the basic payment scheme, has been so delayed, as a number of noble Lords have said, that it is no longer available for farmers and land managers to transition into it and into the new economic and agricultural environment, which is the heart of the new era. As well is it seeming inherently unjust, it is not part of the basic political and policy proposition that was put to the British people as to how we left the CAP.
Moreover, there is a real risk that it may end up causing a muddle in terms of public policy outputs. If you oversimplify it, under the basic payments scheme, the public goods which the state paid for were farming, and everything else was a kind of bolt-on extra. We are now moving into a brave new world where everything else is public goods and food production is a bolt-on extra. That is quite a turnaround.
Against that background, there is, as several noble Lords have said, a chasm—or what might be described as the valley of the shadow of death—that lies between the two eras and into which a significant amount of both farm businesses and land may fall. This will get in the way of implementing the policies we are discussing; indeed, it may put certain parts of them into reverse.
Although, as the noble Lord, Lord Lucas, said on a previous occasion when discussing the Bill, we must not be frightened of failure, surely the underlying intended purpose is to effect a successful transition from the old to the new. That is why the amendment of the noble Lords, Lord Carrington and Lord Curry, is important, as is that of the noble Baroness, Lady Rock, because they recognise, as was recognised by the noble Lord, Lord Clark of Windermere, that things may not actually turn out as planned and intended. You need to build into your system a way of modifying your arrangements, and an escape route.
It is clear from our discussion of this clause that the present transitional process is flawed, and those flaws need ironing out, because if we are to make a successful journey from the old world to the new, we have to get to the destination in one piece and not have a car crash.