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Environment Conference “What next for the Countryside Post Brexit”? Hosted By Julie Girling, MEP for the South West & Gibraltar www.juliegirli ng.com @juliegir ling #envifutur e

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Page 1: Environment conference presentation by Julie Girling, MEP

Environment Conference“What next for the Countryside Post Brexit”?

Hosted By Julie Girling,

MEP for the South West & Gibraltar

www.juliegirling.com @juliegirling #envifuture

Page 2: Environment conference presentation by Julie Girling, MEP

Welcome & Introduction byJulie Girling MEP

Page 3: Environment conference presentation by Julie Girling, MEP

Julie Girling MEPWhat has the EU ever done for us?

An overview of EU Environmental Legislation

and Finances

www.juliegirling.com @juliegirling #envifuture

Page 4: Environment conference presentation by Julie Girling, MEP

Common Agricultural Policy (CAP)Introduced in 1962

• Strong culture of state intervention in founding member states

• 70% of total EU spending budget (now reduced to 40%)

• Subsidies led to over production

• No environmental element

Page 5: Environment conference presentation by Julie Girling, MEP

CAP Reforms• 1972 implementation of Mansholt Reform

• 1980s Dairy Quotas, budget ceilings established

• 1990s McSharry Reforms including set aside, retirement support, reduced coupled support, increased complexity and administrative burden

Page 6: Environment conference presentation by Julie Girling, MEP

21st Century Reforms• Harmonised payments for arable crops

• Increased coupling for livestock

• 2 pillar approach

• Agri-environmental schemes now compulsory in member states

• NO budget or financial reforms

Page 7: Environment conference presentation by Julie Girling, MEP

2003 Fischler Reforms• Decoupling principle agreed

• Single payment scheme introduced (England 2003)

• Cross Compliance for food safety, environment and animal welfare introduced

Ciolos Reforms• Move towards stronger environmental element – Greening

• Public money for public goods

• Reduced price intervention

• Active farmer principle

Page 8: Environment conference presentation by Julie Girling, MEP

CAP 20174 Basic Regulations

• Direct Payments

• Rural Development

• CAP financing

• Single CMO/market measures

Greening• 30% of direct payments must go to provide crop diversification, EFAs etc

• GAEC

Page 9: Environment conference presentation by Julie Girling, MEP

CAP Conclusions

• Expensive – still 39% of total EU budget €59billion

• Unwieldy – one common system from the Algarve to the Arctic

• Unfair – no re-calibration of total budget

• ENVIRONMENT – not delivering maximum benefits

• Currently delivers circa €3.5billion direct from central fund to the countryside

Page 10: Environment conference presentation by Julie Girling, MEP

Where CAP Finances Go:CAP - Spending Areas

Billions Euros – 2014 Source: EU Commission

Rural Development Fisheries Environment Direct Aid

Direct Aid: 40.58Bn Rural Development:

11.19Bn

Fisheries:0.76Bn

Environment:0.27Bn

Page 11: Environment conference presentation by Julie Girling, MEP

Who Pays for CAP?CAP - Major Contributors

Billion Euros – 2014 Source: EU Commission

UK Poland Netherlands Germany France Italy

UK: 3.9Bn

Poland: 5Bn

Netherlands: 0.9Bn

Germany: 6.1Bn

France: 8.5Bn

Italy: 5.5Bn

Page 12: Environment conference presentation by Julie Girling, MEP

Environmental Legislation• 650 Legal Acts

• Administered by DEFRA

• Enforced via the European Court of Justice

• Post Brexit – the administrator becomes the ultimate enforcer

• New access to justice may be required

Page 13: Environment conference presentation by Julie Girling, MEP

ECHA / EFSA• REACH regulation

• PPP (pesticides) regulation

• Biocides regulation

• CLP regulation

Impact on water, ecosystems and non target organisms

Page 14: Environment conference presentation by Julie Girling, MEP

Nature Protection / Biodiversity• Birds Directive

• Habitats Directive

Objectives:

1. To maintain populations at favourable conservation levels

2. Contribute to biodiversity through habitat conservation

3. Protect natural species of flora and fauna

Page 15: Environment conference presentation by Julie Girling, MEP

Invasive Alien Species

• Provides for cross-border action and co-operation to tackle IAS

• Early alert system

• Regulates trade practices

Page 16: Environment conference presentation by Julie Girling, MEP

Water Quality• Water Framework Directive

• Priority substances

• Nitrates Directive

• Urban Waste Water Directive

• Drinking Water Directive

• Bathing Water Directive

• Flood Directive

Page 17: Environment conference presentation by Julie Girling, MEP

LIFE

The only funding instrument directed exclusively at achieving the objectives of the environmental acquis

• Since 1992 the UK has received 6.2% of all funding - €241.5m

• UK is currently spending the largest ever conservation grant - €12m

Page 18: Environment conference presentation by Julie Girling, MEP

Environmental ImpactsEnvironmental Impact Assessment

• Requires “assessment of the environmental effects of those public and private projects which are likely to have significant effects on the environment”

• Systematic collection and analysis of information

Strategic Environmental Assessment Directive

• Assessment of a wide range of public plans

Page 19: Environment conference presentation by Julie Girling, MEP

Climate ChangeUK negotiates with UNFCCC as part of the EU. Uks Kyoto and Paris obligations are delivered jointly. Contribution to the Treasury from ETS is £500m pa

• EU ETS

• NU non ETS

• LULUCF

• Effort sharing

Page 20: Environment conference presentation by Julie Girling, MEP

Climate ChangeClimate change obligations remain. Non EU ETS increases in importance.

• Agriculture and the countryside

• Forestry

• Land use change

• Waste

• Energy efficiency – buildings, processes etc.

UK target +16% carbon savings

Page 21: Environment conference presentation by Julie Girling, MEP

Air Quality• National Emissions Ceilings Directive

• Ambient Air Quality Directive

• Medium Combustion Plants

• Large Combustion Plants

• Industrial Emissions Directive

Objectives:

• To reduce pollution including PM NOX and NH3

• To tackle eutrophication and acid deposition

Page 22: Environment conference presentation by Julie Girling, MEP

Research and innovation

The UK is one of the largest recipients of research funding in the EU.

• Between 2007 – 2013 the UK received the fourth largest share of research and innovation funding with €8.8 billion out of a total of €107 billion

• Re funding awarded on a competitive basis, the UK was the second largest recipient after Germany, with €6.9 billion out of a total of €55.4 billion.

• At the start of 2017 UK was the top recipient of EU innovation funding

Page 23: Environment conference presentation by Julie Girling, MEP

Other Issues• Organic Farming

• Plant Health

• Seeds Regulation

• Animal Welfare

• Animal Health

• GMOs

• Availability of labour / immigration

Page 24: Environment conference presentation by Julie Girling, MEP

Questions Post Brexit• Jurisdiction for enforcement

• Budgets – with the Treasury come up with the cash?

• Replication of agencies including RPA

• International competitiveness of farming

• Government commitment to the environment

• Trans boundary nature of policy

• Unknown future trading relationships

• TFEU require full compliance ……… will this continue?

• How will we track EU legislative changes in the future?

• Disentanglement of joint international targets / conventions

Page 25: Environment conference presentation by Julie Girling, MEP

Environment Conference“What next for the Countryside Post Brexit”?

Hosted By Julie Girling,

MEP for the South West & Gibraltar

www.juliegirling.com @juliegirling #envifuture

Page 26: Environment conference presentation by Julie Girling, MEP

Martin LaneDirector, Cotswolds AONB

The value of EU Environment Legislation in Protected Landscapes and future Opportunities

Page 27: Environment conference presentation by Julie Girling, MEP

The Value of EU Environmental Legislation in Protected Landscapes and future Opportunities

Page 28: Environment conference presentation by Julie Girling, MEP

Protected Landscapes• In England & Wales

• 13 National Parks, 38 AONBs, & 43 Heritage Coasts

• In the South West• 2 National Parks, 13 AONBs, & 20 Heritage Coasts

• 25% of the country designated as AONB or National Park, a truly national set of assets

• Our iconic high quality landscapes are home to high quality habitats and their associated species

• Internationally recognised by IUCN, World Conservation Union

Page 29: Environment conference presentation by Julie Girling, MEP

Protected Landscapes in England and Wales

Page 30: Environment conference presentation by Julie Girling, MEP

Value of Protected Landscapes• Protected Landscapes in England & Wales

• worth £20 billion to the economy• home to 85,000 businesses• receive 260 million visits a year, worth over £6 billion a year

• Cotswolds AONB• £2 billion GVA of economic activity• home to 9,500 businesses

• Economic contribution of Cotswolds AONB• £337 million GVA of economic activity• 9,720 jobs critically dependent upon landscape quality• attracts 23 million day visits a year, worth £1 billion

Page 31: Environment conference presentation by Julie Girling, MEP

Protected Landscapes, SPAs and SACs in the South West

Page 32: Environment conference presentation by Julie Girling, MEP

Habitats Directive• 1992 - to maintain or restore natural habitats and wild species

• led to Special Areas of Conservation, SACs• led to favourable condition assessments of SSSIs & NNRs• driven improved management of SSSIs , NNRs and SACs

• In the Cotswolds• 5 SACs, 3 NNRs and 89 SSSIs • Ancient semi natural woodlands and flower rich grasslands are both special qualities of

the Cotswolds AONB landscape

Page 33: Environment conference presentation by Julie Girling, MEP

Birds Directive• 1979 - to maintain wild bird populations and protect vulnerable birds

• Oldest piece of EU environmental legislation• led to Special Protection Areas, SPAs

• The associated habitats are often a special quality of the Protected Landscape• East Devon heathland SPA, East Devon AONB and Tamar estuary SPA, Tamar Valley AONB

Page 34: Environment conference presentation by Julie Girling, MEP

Water Framework Directive• 2000 - a framework for the protection of inland rivers and lakes, estuaries, coastal

waters and groundwater• river basin districts and river basin management plans• reduced pollution of watercourses• improved management of sewage entering the sea and cleaner beaches• nitrate vulnerable zones• catchment sensitive farming

Page 35: Environment conference presentation by Julie Girling, MEP

SEA Directive & Habitats Regulations

• Strategic Environmental Assessment Directive, SEA, 2001• Seeks to integrate environmental considerations into the preparation and adoption of

plans and programmes with a view to promoting sustainable development• Habitat Regulations

• Requires the assessment of certain plans or projects which affect Natura 2000 sites

• Required of National Park and AONB plans – even if these are environment based plans

• Safeguards the special qualities of Protected Landscapes

Page 36: Environment conference presentation by Julie Girling, MEP

EIA Directive• Environmental Impact Assessment Directive EIA, 1985

• seeks to ensure that a local planning authority when deciding whether to grant planning permission for a project, which is likely to have significant effects on the environment, does so in the full knowledge of the likely significant effects, and takes this into account in the decision making process.

• Forestry, woodland creation, change of land use• Increasing productivity of uncultivated land• Water management, irrigation, land drainage, flood defence

• Safeguards the special qualities of Protected Landscapes

Page 37: Environment conference presentation by Julie Girling, MEP

CAP• Basic payment scheme

• Incorporates cross compliance• Good Agricultural and Environmental Conditions

• Boundaries, Public Rights of Way, SSSIs, Ancient Monuments• Statutory Management Requirements

• Habitats Directive, Birds Directive, Animal Health & Welfare

• Rural development programme• Agri environment

• Countryside Stewardship, Environmental Stewardship• Protected Landscapes have been a target for investment

• LEADER• Countryside productivity• Growth programme

Page 38: Environment conference presentation by Julie Girling, MEP

Agri environment investment across the Cotswolds AONBEnvironmental Stewardship Agreements covering 70% of the AONB 2014/15, Entry Level accounted for 43% and Higher

Level Stewardship accounted for 57%. Worth £9.14 million / year

Page 39: Environment conference presentation by Julie Girling, MEP

A farmer perspective

Page 40: Environment conference presentation by Julie Girling, MEP

A farmer perspective

Page 41: Environment conference presentation by Julie Girling, MEP

Natura 2000

• Natura 2000 sites (SACs and SPAs) aimed for• identification and designation of sites • improved management • favourable condition of sites

• 2010 targets missed across the EU, led to revised targets for 2020 and additional finances being made available

• Mainland Europe often talks of “paper parks”, a designation, but little or no management

• Numbers of designations and land area has increased, but overall habitats and species remain in decline

Page 42: Environment conference presentation by Julie Girling, MEP

EU & Europe• EU the institution v Europe the place

• Landscape, biodiversity, migrating species, plant pests and diseases don’t respect administrative boundaries

• Brexit = leaving the EU, not Europe

• What was life like before the EU Directives ? • In 1973 as the UK joined the EU it was described as the “Dirty Man of Europe”• Only country in western Europe who had failed to control pollution from cars and power

stations, it was undermining pesticide control and ignoring bathing water standards

Page 43: Environment conference presentation by Julie Girling, MEP

EU Benefits• Have our Protected Landscapes benefitted ?• Has the wider environment benefitted ?

• EU Legislation and Directives• cleaned up the environment• provided stronger protection for the environment• raised standards• Investment: CAP, LIFE, LEADER

• EU Directives + their enshrinement in UK law compare well with the duties on public bodies to have regard to the purposes of National Park and AONB designation• Section 62 of the Environment Act 1995• Section 85 of the Countryside & Rights of Way Act 2000

Page 44: Environment conference presentation by Julie Girling, MEP

Directives & Conventions• EU Directives enshrined in our Wildlife & Countryside Act 1981, Conservation

Regulations 1994, Town & Country Planning Regulations 2011

• Brexit could lead to a great Repeal Bill

• After the UK exits the EU it remains a signatory to;• Ramsar Convention 1971, conservation of wetlands• Bonn Convention 1979, forerunner to Birds Directive• Bern Convention 1982, forerunner to Habitats Directive• European Landscape Convention 2004, (Council of Europe)

Page 45: Environment conference presentation by Julie Girling, MEP

Simplify the system• Can we simplify the system ?

• Bring strands from multiple regulations together into a single issue or topic specific regulation

• Merge the Water Framework Directive Groundwater Directive, and Nitrates Directive into one single regulation removing duplication without diminishing their impact

Page 46: Environment conference presentation by Julie Girling, MEP

Reduce the overlap• Can we reduce the overlaps ?

• SSSI + Ramsar site + SPA + Heritage Coast + AONB (Isles of Scilly)• NNR + SSSI + SAC + National Park (Dartmoor)• AONB + National Park (North Norfolk Coast & The Broads)

• Do we need two national landscape designations ?• New approaches, Natural Capital Committee ?

• Would the general public better understand, appreciate, value and support a simpler system ?

Page 47: Environment conference presentation by Julie Girling, MEP

A local menu• A menu for each Protected Landscape

• Management Plan, Landscape Assessment, Strategy & Guidelines• Locally tailored, informed, owned and evidenced approach• Local rates to reflect local costs• Local advice and local delivery• Outcomes based, payment by results

• A combined environmental and socio economic menu• Agri environment + Countryside Productivity + LEADER

Page 48: Environment conference presentation by Julie Girling, MEP

Environment Conference“What next for the Countryside Post Brexit”?

Hosted By Julie Girling,

MEP for the South West & Gibraltar

www.juliegirling.com @juliegirling #envifuture

Page 49: Environment conference presentation by Julie Girling, MEP

John MortimerCLA South West Director

Brexit – An Opportunity to Reshape Rural Business

Page 50: Environment conference presentation by Julie Girling, MEP

BREXITAn opportunity to reshape rural business

John MortimerCLA Director South West17 March 2017

Page 51: Environment conference presentation by Julie Girling, MEP

What’s rural?

Page 52: Environment conference presentation by Julie Girling, MEP

Government’s standard definition Areas that fall outside of settlements with more than 10,000 resident

population 10 categories on a scale between “major conurbation” and “hamlets

and isolated dwellings” Frequently aggregated to predominantly rural, urban with significant

rural and predominantly urban On the other hand – we all know it when we see it!

Page 53: Environment conference presentation by Julie Girling, MEP

Rural urban classification 2011

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Rural urban classification 2011by local authority

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What’s the scale of rural business?

Page 56: Environment conference presentation by Julie Girling, MEP

And is it worth worrying about?

Page 57: Environment conference presentation by Julie Girling, MEP

Rural business

Rural businesses are those that operate and trade in defined rural areas - both land-based and non land based businesses

541,000 registered businesses in rural areas - 25% of all registered businesses in England

90,000 (16%) of these are land based - on agriculture, forestry and fishing

Page 58: Environment conference presentation by Julie Girling, MEP

Gross value added

England Rural GVA (2016)– Predominantly rural: £229 billion (16%)– Urban with significant rural: £152 billion (12%)

GVA per workforce job is a measure of productivity UK productivity is currently 20% below the G7 average Rural productivity is 17% lower than urban productivity (7% ex

London) Gross value added (GVA) is a measure of the value of goods and

services produced in an area, industry or sector of an economy. In national accounts GVA is output minus intermediate consumption.

Page 59: Environment conference presentation by Julie Girling, MEP

Business activities

Page 60: Environment conference presentation by Julie Girling, MEP

UK agri-food sector GVA (2013)

The agri-food sector contributed £103.0 billion or 7.6% to national GVA in 2013 employing 3.8 million people of which 430,000 were in agriculture and fishing

Page 61: Environment conference presentation by Julie Girling, MEP

England tourism sector GVA (2010)

The England tourism sector contributed £67.6 billion £10.7bn in predominantly rural areas

Predominantly Urban inc Lon-don£50.1bn (74%)

Predominantly Rural£10.7bn (16%)

Significantly Rural£6.8bn (10%)

Page 62: Environment conference presentation by Julie Girling, MEP

The characteristics of rural businesses

Typically micro or small businesses 96% are family owned - 89% of agricultural businesses 60% have been in the family for over 50 years 78% unincorporated Asset rich and cash poor Low debt/equity ratios But they invest for the long term Significant contributors to the national economy But lower productivity than urban businesses Potential for growth

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So, rural business really matters!

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And it’s investing for the future

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Investment by rural land based businesses

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Regional investment 2012 – 2015

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Regional investment 2012 – 2015

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What rural land based businesses invested in

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What could possibly go wrong?

Page 70: Environment conference presentation by Julie Girling, MEP

Inhibitors of growth in the rural economy

Low financial returns and market failure – particularly in the core land based activity

Low recognition of the value of public goods Over regulation Restrictive and costly planning system Inadequate digital connectivity – broadband and mobile Bureaucracy associated with public funding options Labour supply and access to skills Low confidence in the taxation system Absence of long term governmental strategies for the rural economy Poor productivity

Page 71: Environment conference presentation by Julie Girling, MEP

What opportunities can we take from Brexit to make the rural

economy better?

Page 73: Environment conference presentation by Julie Girling, MEP

Helping government to invest for growth

Increasing productivity and delivering improved environmental outcomes through a new, long term, world leading food, farming and environment policy – which works for the UK

Creating markets for public goods that reflect value and not profit foregone

Retaining markets in the EU whilst discovering new markets further afield – on terms that strengthen our industry

Removing regulation and bureaucracy that unnecessarily inhibit growth

Ensuring an adequately skilled workforce from home and abroad Connecting the rural economy to national and global markets

Page 74: Environment conference presentation by Julie Girling, MEP

Shared visions and principles for a new policy

Objectives set out by both CLA and Defra seem to agree on a vision of a policy that: Secures a more market oriented, productive, competitive and resilient farming and

forestry sector Recognises the value of public goods Enhances the environment Delivers food security Has a dedicated UK budget Delivers value for money

Page 75: Environment conference presentation by Julie Girling, MEP

Creating markets in public goods

Recognising and rewarding land managers for eco-system services such as: Uplands management Creation and management of habitats, woodland and meadows Carbon storage Water and flood management Bio-diversity

Contracts between the state and land manager based on agreed environmental outcomes

Creating new markets for private investment in natural capital services and bio-diversity offsetting

Page 76: Environment conference presentation by Julie Girling, MEP

Trade

Outcome of EU trade negotiation will determine scale and nature of required policy intervention

Most outcomes will present opportunities Grow existing markets at home and abroad Bilateral trade deals to open new markets across the world Trade agreements come with compliance strings and regulatory

standards Level playing fields or consumer choices? Animal welfare – a trade advantage? Quality standards and labelling

Page 77: Environment conference presentation by Julie Girling, MEP

Regulation

Take immediate opportunities to remove obvious burdens Provide certainty for businesses by ensuring all laws transfer into domestic law Review and repeal to reduce regulatory burdens Remove the gold plating Develop new, world leading approaches to achieving regulatory outcomes Ensure a regulatory framework that works for and is relevant to the UK

Page 78: Environment conference presentation by Julie Girling, MEP

Labour market, skills and innovation

Establish appropriate sector specific schemes that ensure availability of seasonal, permanent and skilled labour

Invest in skills Invest in research and innovation – and in the adoption of the outcomes.

Page 79: Environment conference presentation by Julie Girling, MEP

Conclusion

The rural economy is diverse and rural businesses take many forms and operate across many sectors

Rural businesses contribute £229 billion each year to the English economy, representing 16% of total GVA but productivity lags the rest of the economy

Rural business matters The CLA and Government recognise, and largely agree, what the

obstacles to growth in the rural economy are Brexit presents huge challenges – but also opportunities to reshape

the rural economy Our success is vital to the success of Brexit – and we need to make

sure government doesn’t forget it.

Page 80: Environment conference presentation by Julie Girling, MEP

16 Belgrave Square

London SW1X 8PQ

Tel 020 7235 0511

Fax 020 7235 4696

Email [email protected]

Website www.cla.org.uk

THANK YOU

Page 81: Environment conference presentation by Julie Girling, MEP

Environment Conference“What next for the Countryside Post Brexit”?

Hosted By Julie Girling,

MEP for the South West & Gibraltar

www.juliegirling.com @juliegirling #envifuture

Page 82: Environment conference presentation by Julie Girling, MEP

Nick Bruce-WhiteRSPB South West Director

Brexit – Opportunities & Threats

Page 83: Environment conference presentation by Julie Girling, MEP

BREXIT:The opportunities & threats for nature

Nick Bruce-WhiteRegional Director – RSPB South West

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Policy wonkPragmatistOptimist HopeI am a farmer & conservationist

About me...

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421mSource: University of Exeter, RSPB & PECBMS

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58%Source: WWF & ZSL

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15b (0.5%)

Source: Yale School of Forestry & Environmental Studies

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Securing existing environmental laws

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Securing existing environmental laws

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Securing the UK’s global climate leadership

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Securing the UK’s global climate leadership

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Sustainable fisheries management

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Sustainable farming & land use policies

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Farmland bird index (FBI)

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First ever species-based driver assessment highlights agriculture and climate change

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What role can agri-env play?

E Anglia & Oxon

2008 2011 20140

0.5

1

1.5 BBSHLS

2008 2011 20140

0.5

1

1.5

2

2.5BBSHLS

West MidlandsHLS +32%

BBS -14%HLS +97%BBS -27%

Farmland bird indicator response

Source: RSPB & BTO

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@OcelotNick

Page 114: Environment conference presentation by Julie Girling, MEP

Environment Conference“What next for the Countryside Post Brexit”?

Hosted By Julie Girling,

MEP for the South West & Gibraltar

www.juliegirling.com @juliegirling #envifuture

Page 115: Environment conference presentation by Julie Girling, MEP

Nick von WestenholzNFU Director of EU Exit & International Trade

Brexit – Opportunities & Threats

Page 116: Environment conference presentation by Julie Girling, MEP

Brexit – Opportunities & Threats

Nick von WestenholzDirector, EU Exit & International Trade

Page 117: Environment conference presentation by Julie Girling, MEP

BREXIT and AGRICULTURE

POLITICS

PROCESSPOLICY

Page 118: Environment conference presentation by Julie Girling, MEP

THE PROCESS• No negotiation without notification: EU (Notification of

Withdrawal) Bill now enacted.• Article 50 triggered by end of March 2017 – EC then adopts

negotiating “guidelines”• Two year process – can be extended by unanimous agreement

– to negotiate “withdrawal agreement.” • Question over agreement on “future relationship” • Dutch elections March 2017, French elections April/May

2017, German elections Autumn 2017.• UK Parliamentary (and EU Parl) approval required• Great Repeal Bill & other legislation

Page 119: Environment conference presentation by Julie Girling, MEP

THE POLITICS

Page 120: Environment conference presentation by Julie Girling, MEP

Devolved nations

Parliament

27 EU Member

States

Complicating factors

Page 121: Environment conference presentation by Julie Girling, MEP

THE POLICY

Leave the single market, while seeking the greatest possible access

Out of the Customs Union, but looking for a customs agreement

Britain could pay if necessary A final deal put to a vote of both Houses

of Parliament Guarantee the rights of EU nationals in

Britain, and Britons living in Europe ASAP

A phased process of implementation No deal' better than a 'bad deal'

THE PM’s PLAN

Page 122: Environment conference presentation by Julie Girling, MEP

NFU’s Policy PrioritiesProfitable, Competitive, Productive farm businesses:

Economic benefits:

• Contribute to UK economic growth & jobs

• Continue to underpin the food industry – our largest manufacturing sector

• Support vibrant and sustainable rural communities & non-food sectors (e.g. tourism, renewables)

UK agriculture should be Progressive and Sustainable, both as businesses and in delivering benefits to society at large

Societal benefits:

• Contribute to increased UK food security, with safe, affordable food produced to high standards

• Deliver public/environmental goods - “You can’t go Green if you’re in the Red…”

• Manage the c. 75% of the UK land mass currently farmed

Page 123: Environment conference presentation by Julie Girling, MEP

Focus is on the four main policy areas of:

NFU’s Policy Priorities

TRADE

LABOUR

DOMESTIC AGRICULTURAL POLICY

REGULATION

Page 124: Environment conference presentation by Julie Girling, MEP

TRADE

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TRADE

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TRADEEU Common External Tariff rates under WTO

Not to mention non-tariff barriers – entry checks, border delays, certification, standards, etc

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TRADEBest access to EU markets

• 72% of food exports to EU. Some sectors very dependent – e.g. 38% of UK lamb exported into EU

• “Free and frictionless” trade: Zero tariffs and low non-tariff barriers

Develop and expand non-EU markets

• Government must ensure trade with the rest of the world is on level-playing field – same conditions applying to imports as UK production

• Farming and food to feature from day one in trade talks, not afterthought

• Identify and develop opportunities in existing and new markets

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LABOUR

Issue for whole food chain – not just agriculture/horticulture & relates to both seasonal and permanent workforce

Urgent concern over labour for horticulture, pigs and poultry sectors. E.g. horticulture expected to need 95,000 seasonal workers by 2021

Government must:

• Introduce measures to ensure adequate supply of seasonal and permanent labour in food and farming sectors

• Grant EU workers UK right of residency

• R&D and investment funding to increase competitiveness

Page 129: Environment conference presentation by Julie Girling, MEP

DOMESTIC AGRICULTURAL POLICYA package of measures to enable farm businesses to be competitive, profitable and progressive.

Maintain current levels of financial support, delivered across three key themes:

• Volatility: mitigation, currently through direct payment. Other mechanisms could include insurance schemes, bonds, etc

• Environment: Broad farmed environment scheme; Additional designated areas/high value schemes (e.g. SSSI, National Parks)

• Productivity: Aimed at competitiveness, profitability, investment (on farm; agri-tech). Capital grants, advice, and training, knowledge exchange…

Emphasis on each will depend on impact of Brexit – positive or negative – on UK agriculture (e.g. trade deals/labour availability/Great Repeal Bill)

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REGULATIONOpportunity to devise a regulatory environment fit for purpose

Balancing act – better regulation v complicating Brexit process. Issue of timing…

• Protects animal and public health, and the environment, while supporting innovative and productive agriculture

• Reduces red-tape on farmers

• Complements the requirements of our new trading arrangements

• Ensures a smooth transition at the point of Brexit

Page 131: Environment conference presentation by Julie Girling, MEP

Thank You

Page 132: Environment conference presentation by Julie Girling, MEP

Environment Conference“What next for the Countryside Post Brexit”?

Hosted By Julie Girling,

MEP for the South West & Gibraltar

www.juliegirling.com @juliegirling #envifuture

Page 133: Environment conference presentation by Julie Girling, MEP

Richard WakefordVisiting Professor of Land Use & Rural Development at

Birmingham City University

Brexit – How to use the opportunity to

take control of agricultural policy

Page 134: Environment conference presentation by Julie Girling, MEP

+

Professor Richard Wakeford, Birmingham City University

[email protected]

Royal Agricultural University, March 2017

What next for the countryside – post BREXIT?

“Taking control” of agriculture policy

Page 135: Environment conference presentation by Julie Girling, MEP

+Richard Wakeford

The Scottish Government

Page 136: Environment conference presentation by Julie Girling, MEP

+ The optimist and BREXIT: new freedoms and opportunities? Stronger trade deals More sensible use of public funds without Brussels overlay Control of national borders Restore Britain’s special legal system Deregulate EU’s “costly mass of laws” Improve the economy & generate new jobs Regenerate Britain’s fisheries Avoid EU healthcare harmonisation Reduce welfare payments to non-UK EU citizens Restore British customs and traditions

Page 137: Environment conference presentation by Julie Girling, MEP

+Particular agricultural drivers for change?

Costly mass of rules currently translated into UK law (eg on Environmental Impact Assessment, GMOs, 160 page “Higher Tier Manual” etc)

Common Agricultural Policy payments widely discredited – especially value for money of Basic Payment Scheme: Carry out agricultural activity Maintain land in Good Agricultural and Environmental Condition Statutory Management Requirements “Cross Compliance” covering:

the environment, food safety, animal and plant health and animal welfare Keep comprehensive, accurate and up-to-date records

Rural Payments Agency demands and performance

Page 138: Environment conference presentation by Julie Girling, MEP

+Latest European Commission analysis of CAP implementation In CAP implementation, for most Member States the historical factor more

important than the three general CAP objectives Limited correlation between pillar 1 and 2 measures Implementation focused strongly on the general objective of locally viable

food production No systematic synergistic use of instruments to address particular objectives Lack of appropriate tailoring and targeting of Pillar 1 instruments and Pillar 2

measures Increased administrative complexity due to changes

Page 139: Environment conference presentation by Julie Girling, MEP

+Lessons on CAP for the EU going forward

The study confirms that the CAP has become more complex reveals that the Member States’ strategy to address the 3 CAP

objectives is not sufficiently documented Raises concerns about the potential impact of the CAP

This means Seek simplification to limit the growing concern of increased

administrative burdens Exchanging good practices between countries to propomote

simplification Looking for a more tailored approach to the Green Payment

As we each design our own processes in England, Wales, Scotland and Northern Ireland – and maybe regionally too – we should learn from this Commission research

Page 140: Environment conference presentation by Julie Girling, MEP

+ So - new opportunities BREXIT will bring for agriculture?

The optimist looks forward to new freedoms to operate and trade - at the heart of five UK Government principles tariff-free and frictionless cross-border trade with Europe –

important given that EU single market takes 60% of exports, but cost of trade deal (single market, EFTA or WTO)

a more productive workforce using latest technology and data

farmers incentivised and rewarded for caring for the environment; twin goals of productive farming and environmental improvement

promotion of animal and plant health and welfare resilience against disease affecting farm operations; and in

protcting communities from flooding

Page 141: Environment conference presentation by Julie Girling, MEP

+ New opportunities may bring new challenges too…

And yet, the agribusiness sector faces considerable uncertainty (eg access to labour, tariff barriers, future support payments from UK governments – given competition from the NHS)

Will WTO global trade rules open up our domestic markets to lower cost imports produced with fewer environmental and societal safeguards: eg GMO products (concerning to some consumers) routine antibiotic use in imported beef Farm and food products from nations not willing to demonstrate action to

implement COP21 action on climate change through agricultural measures?

And there would still be WTO* (and potentially EU) rules about government payments to our farmers; and about whether our products can meet other nations’ standards

Would UK really “take back control”? * BTAMS = Bound Total Aggregate Measure of Support

Page 142: Environment conference presentation by Julie Girling, MEP

+ Will the UK be influential against unfair rules over exports?

“America First” Past challenge of

exporting Scottish seed potatoes to China

Tariff free exports to Europe challenged if our government departs much from EU rules

Could we find ourselves effectively committed to working within the rules of the next CAP reform?

Page 143: Environment conference presentation by Julie Girling, MEP

+Futures thinking?

“America first” motivated by a desire in middle US to return to the rosy days when smaller cities were rich in smaller businesses providing employment

“BREXIT” similarly harks back to the world when more of our economy related to the Commonwealth

50 years since the designation of the Cotswolds AONB, many people want to believe in an unchanging protected landscape

25+ years since Chris Patten’s comprehensive environment White Paper launched a “national countryside initiative” offering incentive payments to landowners and farmers to manage or recreate landscapes – beyond Environmentally Sensitive Areas

Looking forward is hard! Delivery takes time.

Page 144: Environment conference presentation by Julie Girling, MEP

+ No development here in the AONB, thank you!

Page 145: Environment conference presentation by Julie Girling, MEP

We have some choices in shaping tomorrow’s world

Page 146: Environment conference presentation by Julie Girling, MEP

+Factor in technological advances

Rapid improvements in satellite technology, reducing the time needed to provide precision land-use data to benefit farmers, foresters and fishermen

New technology in cultivation, with autonomous tractors reducing the need for a rural workforce still further

Big data; ever increasing information influencing consumers – some FAKE

Rural-urban divide disappears, as more work can be done remotely Where will the processing and retail chain go next? Apps to help us eat well (and source the food we really need for

health) Apps to tailor government support more reliably to outcomes for

society

Page 147: Environment conference presentation by Julie Girling, MEP

+ BREXIT; an opportunity to deliver?

• “Subsidy system broken”• “Farmers going out of

business”• “State of wildlife in steep

decline• … because of intensive

agriculture”• “Taxpayers should only pay

public subsidy to farmers in return for things that the market won’t pay for but which are valued and needed by the public”

• “The current system rewards people for the hectares they own, with very inadequate standards for wildlife and the environment,”

Page 148: Environment conference presentation by Julie Girling, MEP

+ Opportunity: translate Basic Payments into “outcome specific” schemes

Green Alliance proposes a Natural Infrastructure Scheme (NIS) £3.1 billion spent on CAP in the UK currently encourages land managers to

maximise land available for agricultural use and props up uneconomic farming

Farmers and other land managers could financially benefit from environmental improvements such as flood alleviation and habitat creation

£2.4 billion a year spent tackling water pollution, water treatment, investing in flood resilience and dealing with damage caused by river flooding; paying farmers to use natural engineering and land management in the upper reaches of a catchment can be more cost effective than paying for hard defences, end of pipe water treatment and the effects of flooding

‘Payments for ecosystem services’ could become a mainstream market, reversing declines in nature, and supporting new, environmentally beneficial approaches to farming in the UK

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Vision of the future – park or vineyard?

Page 150: Environment conference presentation by Julie Girling, MEP

+Three factors of productivity

The OECD approach; Consider capital; Consider labour; Consider the land

Capital is the concern of the Chancellor of Exchequer Labour is the concern of the Business Secretary Land is the responsibility of … DCLG, DEFRA, Transport, Culture etc The three 1947 Acts – a joined up approach to securing the best value from

our land, and from the people who worked it, with a view to building up the capital of our nation

Page 151: Environment conference presentation by Julie Girling, MEP

+ A new 'Department for Land Use' should be created: Lord Deben "no hope of sensible land use while planning is imprisoned within the Department

for Communities and Local Government, agriculture in the Department for Environment, Food and Rural Affairs, infrastructure in the Department for Business, Energy and Industrial Strategy, and long-term transport planning in the Department for Transport” Lord Deben – in a CPRE report March 2017

the creation of a "Department of Land Use would bring the strategic elements of all these together”; planners should be shifted away from development management to focus on strategic land use issues

"Planning, environment, agriculture, and infrastructure make a cohesive whole and taken together enable us to decide what kind of country we want to leave to our grandchildren"

Page 152: Environment conference presentation by Julie Girling, MEP

+Futures thinking: functions of rural land

Land managers provide Provisioning services Regulating services Cultural services

…and who benefits from these? ...and if we put value on the flow of renewable benefits, we can start to

calculate the full capital value – for society and for the businesses with a right to draw on it –> NATURAL CAPITAL

Can Dieter Helm’s Natural Capital Committee help to bring economic rationale to disparate services?

Page 153: Environment conference presentation by Julie Girling, MEP

+ Land: a basis for provisioning services (often consumed in urban areas) products obtained from ecosystems

Food e.g. crops, fruit, fish Fibre and fuel e.g. timber, wool Biochemicals, natural medicines and pharmaceuticals Genetic resources: genes and genetic information used for animal/plant breeding

and biotechnology Ornamental resources e.g. shells, flowers

Page 154: Environment conference presentation by Julie Girling, MEP

+ Land: a basis for regulating processes (often benefiting urban dwellers)

Air-quality maintenance: ecosystems contribute chemicals to, and extract chemicals from the atmosphere

Climate regulation e.g. land cover can affect local temperature and precipitation; globally ecosystems affect greenhouse gas sequestration and emissions

Water regulation: ecosystems affect e.g. the timing and magnitude of runoff, flooding etc.

Erosion control: vegetative cover plays an important role in soil retention/prevention of land/asset erosion

Water purification/detoxification: ecosystems can be a source of water impurities but can also help to filter out/decompose organic waste

Natural hazard protection e.g. storms, floods, landslides Bioremediation of waste i.e. removal of pollutants through

storage, dilution, transformation and burial

Page 155: Environment conference presentation by Julie Girling, MEP

+ Rural growth potential in cultural services (enjoyed by urban dwellers too)

Many societies place high value on the maintenance of important landscapes or species

Aesthetic values: many people find beauty in various aspects of ecosystems Recreation and ecotourism bring visitors and opportunities for business growth Rural areas are the inspiration for art, folklore, architecture etc Many religions attach spiritual and religious values to ecosystems and landscapes Social relations: ecosystems affect the types of social relations that are established

e.g. fishing societies

Page 156: Environment conference presentation by Julie Girling, MEP

+The context of geography

Global, national, regional, local … different values will be ascribed to different services (Romania vs UK; Fenland vs Wales)

How to engage communities at different levels (town vs country?) How to put values on the services delivered, other than by compensation

for theoretical production foregone? “strike the right balance between national frameworks for support

measures whilst tailoring them to local landscapes and catchments” Andrea Leadsom, 21st February 2017

Neighbourhood planning – localism doesn’t extend to knowledge about the benefits taxpayers buy from farmers and landowners!

Page 157: Environment conference presentation by Julie Girling, MEP

+Scottish farm accounts:

• Government grants and subsidies of over £500 million

• Without them, no net income from farming at all

• So, the support must be justified by other services farmers deliver

• But, even with same cash post BREXIT, buying more specific services creates challenges elsewhere

• Hence the call for a long transition period to new payments for “ecosystems services” beyond mere food production

Page 158: Environment conference presentation by Julie Girling, MEP

+ Land Use, Land Use Change and Forestry

Page 159: Environment conference presentation by Julie Girling, MEP

+ Futures thinking: Land Use, Land Use Change and Forestry

Challenges:• Agricultural non-CO2 emissions

= 10.3% of EU total emissions• Potentially responsible for one

third of all EU emissions • One half from soils (mainly

nitrous oxide); one third from animals (mainly methane from cattle); one sixth from manure management (nitrous oxide and methane)

• Increased productivity since 1990s has helped but further potential limited

• Plant more woodland; a challenge for farmers?

Page 160: Environment conference presentation by Julie Girling, MEP

+ Examples of Reduction Opportunities in the LULUCF Sector

Increase carbon storage by using land differently or maintain carbon storage by avoiding land degradation Encourage the transformation of cropland to forest Avoid the conversion of forest land to settlements

Improve management practices on existing land-use types Reduce soil erosion to minimize losses in soil carbon

storage Make more efficient use of Nitrogen fertiliser Make more efficient use of livestock feed Use crop residue for bio-energy Plant after forest disturbances to accelerate vegetation

growth and minimize soil carbon losses

Page 161: Environment conference presentation by Julie Girling, MEP

+ The LULUCF challenge for the policy makers – for UK policymakers post BREXIT! What instruments? Fiscal or regulatory? Measurable/enforceable?

Global, EU or national targets/instruments? How to identify trade-offs between foresters providing sinks and farmers

creating emissions? How to use marginal land if agriculture better managed, and forests

operate to full sink potential Can a plan to deliver the committed reductions create positive

opportunities for rural growth – new forests, better managed; new investments in farming; better use of residue and food waste?

Page 162: Environment conference presentation by Julie Girling, MEP

+… and for farmers and fishermen etc, what role for consumers?

Page 163: Environment conference presentation by Julie Girling, MEP

+ Promotions through my letterbox …

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+

Page 165: Environment conference presentation by Julie Girling, MEP

+ Food and health outcomes; research has already identified costs for society

Big data research on retail food purchases shows clear links to obesity among the families of purchasers

Research has informed a new approach to help fast food outlets develop a toolkit to cut down on fat, sugar and salt

Food price promotions and public health; research has explored the obesity impact of “buy one, get one free” of cheap unhealthy foods; and children’s exposure to unhealthy food advertisements

Research has delivered evidence that poorer people are less physically active … and that children from poorer families are nearly three times as likely to be obese

BUT; so much research is funded by big food and drugs businesses, making governments reluctant to recommend healthier diets

Page 166: Environment conference presentation by Julie Girling, MEP

+ The case of type 2 diabetes

Healthier eating half the solution; less sugar, less carbohydrates (potatoes, cereal etc), more fish, meat, dairy products?

Are improved health outcomes relevant to food security; and to the food chain as a whole? … and to economic progress

Should the increasing cost of health services across Europe and globally be a cross cutting driver of EU funded research (ie big and strategic, rather than fragmented, compartmentalised calls?)

Emerging new advice to type 2 diabetes sufferers: Cut carbohydrates; focus diet on protein rich and full fat products “Butter is one of the most natural fats you can buy. It is just churned

cream from a cow. Ideally, opt for grass-fed butter; it has a greater nutrient profile and a better omega 3-6 ratio.”

New approaches to pork production in China: shift from backyard pigs to mass production, but fed on imported maize…

Page 167: Environment conference presentation by Julie Girling, MEP

+Grass fed Korean pigs

Page 168: Environment conference presentation by Julie Girling, MEP

+Bord Bia -> Origin Green Ireland

• Rich soils -> lush green grass (300 days a year grazing)

• Carbon efficient dairy and beef production

• Low water footprint• 80% of agriculture =

grassland

Page 169: Environment conference presentation by Julie Girling, MEP

+Tomorrow’s global food supply: producers’ challenge today With business as usual, feeding a population of 9 billion might require

“60% more food, 50% more energy and 40% more water” – Uni of Minnesota (2015)

“About 24% of all calories produced for human consumption are lost or wasted” World Resources Institute (2013)

“Malnutrition must be addressed by adopting a food systems approach- looking at the entire food system from production to consumption” FAO (2016)

How will UK Government policy, post BREXIT address global food insecurity issues – feeding into government policies and practice?

Page 170: Environment conference presentation by Julie Girling, MEP

+ Food security and forests (including biodiversity) “Inseparable: Forests, Wildlife and Food Security” – high level discussion at the

FAO “It is time for a change in consciousness – it is a fact that agriculture and forestry

can no longer be treated in isolation. Linking the two is imperative for socio-economic development in the 21st century” - Evelyn Nguleka, President of the World Farmers’ Organization

Conclusions from World Forest Week develop integrated land use strategies taking into account the role of forests for water,

soil, climate and habitats strengthen land governance by improving tenure security and encouraging partnerships monitor and collect data on the effectiveness of governance mechanisms and on social,

economic and environmental values of forests

Page 171: Environment conference presentation by Julie Girling, MEP

+Food security and the impact on environment

What steps are required to ensure the land can continue supplying important goods and services – including an increasing demand for food - in the face of a changing climate? Land management to:

lock up carbon in soil; manage use of water; and reduce risk of city flooding downstream?

Timber production as part of an adaptation strategy to lock up carbon Biodiversity goals which require habitat for wildlife Action to cope with sea level rise on the coast; managed retreat and

coastal plains no longer available for food production

What do these goals mean for human consumption habits, food retailer marketing, food processors and farmers? … and energy, transport etc

Page 172: Environment conference presentation by Julie Girling, MEP

+ Future policy is not just post-CAP; and not just agriculture and the environment

Other societal challenges Our relevant suggested areas of integration

Climate action:• Environment• Resource use• Raw materials

• Agricultural and forestry practice (mitigation & adaptation)

• Mesoplankton• Circular economy: reducing food, farm and forestry

waste; avoiding plastic soup in the sea• Optimal use of land and sea: food, energy, carbon sink

Europe in the changing world• Inclusive societies

• Food as a unifying strand between distinctive societal groups

Health• Demographic change• Wellbeing

• Food production, manufacturing, marketing, information

• Ecosystems services from land • Food safety

Energy• Secure, clean, efficient

• Food production efficiency

Secure society• Freedom• Security of citizens

• Resilient supply systems• Protection of facilities• Food security (ie growing enough)

Transport• Green• Integrated

• Supply chain logistics/packaging• Air miles• Warehouse to my house delivery

FOOD 2030 linking most of

the societal challenges?

Page 173: Environment conference presentation by Julie Girling, MEP

+ “What next for the countryside, post BREXIT?” New freedoms and opportunities – after tough negotiations An opportunity for more societal clarity about the countryside we want,

and at what cost The need to see land itself as the basic factor of productivity – requiring

joined up policies at all levels (Lord ~Deben’s challenge) The need to optimise the ecosystems services land can deliver,

sustainably (Dieter Helm’s challenge) In particular, look for the role of woodland creation, especially to help

achieve climate change goals and flood management More rational policy measures – but transition a challenge because of

potential losers An end to end question: can farmers influence what society eats – and

thus help tackle the current societal cost of unwise diets*? * = according to emerging research on carbohydrate consumption

Page 174: Environment conference presentation by Julie Girling, MEP

Environment Conference“What next for the Countryside Post Brexit”?

Hosted By Julie Girling,

MEP for the South West & Gibraltar

www.juliegirling.com @juliegirling #envifuture

Page 175: Environment conference presentation by Julie Girling, MEP

Panel DiscussionOpen for Questions from the floor

www.juliegirling.com @juliegirling #envifuture

Page 176: Environment conference presentation by Julie Girling, MEP

Closing Comments Julie Girling MEP

www.juliegirling.com @juliegirling #envifuture

Page 177: Environment conference presentation by Julie Girling, MEP

Environment Conference“What next for the Countryside Post Brexit”?

Hosted By Julie Girling,

MEP for the South West & Gibraltar

www.juliegirling.com @juliegirling #envifuture