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Three years after government collapsed at Stormont, a 62-page deal titled New Decade, New Approach tabled by the British and Irish governments, formed the basis for a return to power-sharing government in NI at the end of last week.
While it is a high-level document, and it will be for the new Executive to set out future priorities, it is noteworthy that it does not contain a direct reference to the agri-food industry.
Within the document, there is a commitment to introduce a Climate Change Act to legally underpin new environmental targets
Presumably the text was passed around all government departments (including DAERA) for comment and input, but it is telling that officials chose to focus on issues such as climate change rather than production agriculture.
Within the document, there is a commitment to introduce a Climate Change Act to legally underpin new environmental targets.
An independent environmental protection agency will then be established to ensure these targets are met.
With 28% of greenhouse gas emissions in NI coming from agriculture, legislation that requires emissions to be cut will directly impact on farming.
Proposed
Regarding the proposed independent environmental protection agency, this is not new, and in 2015 the then Environment Minister Mark H Durkan proposed that a body be established, in line with other parts of Britain and Ireland.
However, that plan was opposed by the UFU, who highlighted concerns about more bureaucracy, and potentially more costs on industry.
In 2016, DAERA minister Michelle McIlveen confirmed that she would not be establishing the new environmental body, but instead would appoint independent members to the board of the NI environment agency (which is part of DAERA).
RHI
There is also a brief reference in New Decade, New Approach to the renewable heat incentive (RHI) scheme, and a commitment that it will be closed down (Sinn Féin called for this in January 2019) and replaced by “a scheme that effectively cuts carbon emissions”.
Brexit
On Brexit, a new Stormont Executive will establish a sub-committee (chaired by the First Minister or Deputy First Minister) to consider Brexit-related issues.
There is also a number of related commitments from the British government, including that it will ensure representatives from the Stormont Executive are included as part of the UK delegation in any meetings of the UK-EU specialised or joint committees (when discussing NI matters).
There is an important commitment that the UK government will legislate to guarantee unfettered access for NI business to the internal UK market
These committees will effectively oversee the application of the UK-EU withdrawal agreement.
On the specific NI protocol within the withdrawal agreement, there is an important commitment that the UK government will legislate to guarantee unfettered access for NI business to the internal UK market.
Made in NI
When it comes to future trade opportunities, it is now over four years since the former Enterprise Minister Arlene Foster announced that a new agri-food marketing body would be set up in NI.
In the document, while a new marketing body is not specifically mentioned, there is a proposal to establish a new trade advisory body, and a “Made in NI” campaign.
Irish Government
There are also some commitments made by the Irish government, including that it will deliver on funding for various infrastructure projects, including a total of £75m up to 2022 for the A5 road project between Newbuildings and Strabane in the northwest.
RHI claimants oppose buyout calculations
Concerns have already been raised that most RHI claimants might not be eligible for a final buyout payment if the Renewable Heat Incentive (RHI) is closed as part of a commitment in the New Decade, New Approach deal.
However, we will engage with scheme participants and RHANI in due course
In a letter to Andrew Trimble of the Renewable Heat Association (RHANI), Jamie Warnock, head of heat policy in the Department for the Economy (DfE) said that he was not in a position to discuss how the commitment will be fulfilled.
“However, we will engage with scheme participants and RHANI in due course,” the letter from Warnock reads.
Trimble said that RHANI will “vigorously oppose” the department’s calculation that 90% of scheme participants have already received enough RHI tariff payments to cover their initial investment.
Agriculture the last to be picked
With all major parties taking up seats in the new Executive, DAERA was again the last pick out of seven government departments.
As expected, the DUP chose the Department for the Economy first, putting Diane Dodds into that role. Dodds was co-opted into the Assembly just before Christmas, replacing the new MP, Carla Lockhart in Upper Bann.
Following that, Sinn Féin chose the Department for Finance, with Newry and Armagh MLA Conor Murphy taking the post.
It chose health over agriculture, putting former leader and ex-YFCU president Robin Swann into the role
With the DUP taking Education, Sinn Féin taking Communities, and the SDLP opting for Infrastructure, that left one Department for the Ulster Unionist Party.
It chose health over agriculture, putting former leader and ex-YFCU president Robin Swann into the role.
As a result, Lagan Valley DUP MLA Edwin Poots became the new DAERA minister. The chair of the Stormont committee which scrutinises DAERA is west Tyrone Sinn Fein MLA Declan McAleer, with the vice-chair, his party colleague, north Antrim MLA Philip McGuigan.
Scope to further flatten NI payments
Although DAERA has confirmed that Basic Payment Scheme (BPS) entitlement values will remain unchanged in 2020, new legislation introduced at Westminster does potentially allow values to be changed in 2021 or beyond.
The Direct Payments to Farmers (Legislative Continuity) Bill brought forward last week provides a legal basis for payments to continue to farmers across the UK after Brexit.
In the CAP reforms introduced in 2015,NI opted to go for a seven-year transition to a flat-rate payment by 2021
However, specifically for NI, it also gives DAERA the power to enable a move “towards a uniform unit value of payment entitlements”.
In the CAP reforms introduced in 2015, NI opted to go for a seven-year transition to a flat-rate payment by 2021. It meant that by the end of the last CAP reform period in 2019, entitlement values had moved five of the seven steps.
With no legislative base to change values in 2020, and with no minister in place to direct officials, DAERA announced in December that 2020 entitlement values would remain at 2019 rates.
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