Scottish farmers are now in a sort of limbo in relation to the UK relationship with Brussels. Until at least 30 March next year they are very much bound by the EU rules, as the recent prolonged debate on relaxing the three-crop rule demonstrated. Eventually the UK, like Ireland, received a derogation – with the announcement made by the European Commission last Friday.

However, at the time of year when every day matters, the fact is that the UK got clearance on 4 May whereas Ireland got the go-ahead back on 17 April. Apparently the UK decision was delayed while further information was sought, whereas the Irish minister gave a clear indication that the rule would not be applied in Ireland in 2018 – even though the detail remained to be worked out.

Irish approach

While some Scottish farmers may have decided to run the risk that they too would get a relaxation, their Irish counterparts benefited from certainty for an extra 17 days. In the most difficult of springs for planting in both Ireland and Scotland this was one less burden for Irish farmers, while in Scotland farmers had to either take the risk or wait until a point so late that the benefit of the positive decision in Brussels was greatly diminished.

There is little point in having a blame game at this stage, but it is clear that the Scottish position was not treated with the same urgency as the Irish one. Perhaps there could have been stronger political signals in London and Edinburgh that the details would be worked out, or perhaps the Brussels request for further information caused a bottleneck.

Whatever the explanation, the bottom line is that farmers in Scotland had a much longer wait than they should have had in getting clearance to plant what was possible in the circumstances of an exceptionally poor spring.

PAC report on DEFRA and DIT

The Brexit show rumbles on in Westminster, with regular defeats in the House of Lords for the Government combined with ministerial briefings that confuse what the UK position will be rather than give much-needed clarity. This was also the theme of the Scottish Association of Meat Wholesalers at its annual conference last month, when the members were demanding information “now” on the direction of travel.

Based on a report published last Friday by the Public Accounts Committee (PAC) on the Department of the Environment Food and Rural Affairs (DEFRA) and the Department of International Trade (DIT) certainty still seems some way off. The report pulls no punches and says the departments “face an unprecedented challenge in preparing for Brexit.

“Its preparations, however, are being hampered by the pervasive uncertainty about the UK’s future relationship with the EU, which leaves not only departments but also businesses in the dark about exactly what they need to do to prepare”.

PAC is one of the most powerful committees in Westminster and has two Scottish MPs – Luke Graham (Conservative) and Martyn Day (SNP). The Committee is concerned that less than a month before the start of the financial year, the departments are still don’t know the level of funds they will have available for EU Exit programmes in the 2018-2019 financial year.

The committee called on the Treasury to “improve its processes for approving EU Exit funding” so that departments can have greater certainty.

Devolved administrations

What will be of particular interest to Scotland is the recognition by the committee of the importance of devolved administrations.

In DEFRA, a 80% of its functions are in devolved areas of policy and any failure in reaching agreement with the devolved administrations would have a far-reaching impact across the EU Exit programme. PAC recommended that both DEFRA and DIT engage with the devolved administrations and report back in July.

Costs

The PAC was also sceptical of the readiness of both departments to deliver post-Brexit functions as there were already signs of a delay to key primary legislation and work towards future trade deals.

Again the committee set July as a recommendation for when realistic plans and milestones are in place for all of its work streams. PAC also considered it unrealistic for DEFRA to achieve efficiency savings alongside the delivery of Brexit, particularly as DEFRA is responsible for 43 of the 300 Brexit-associated work streams.

Manual systems may be necessary

Perhaps most striking is the state of readiness of computerised systems ahead of Brexit, with particular reference to the agri food and chemical industries. A new IT system is required in the event of a no-deal scenario for the import of animals and animal products.

PAC noted DEFRA’s poor track record in implementing new IT systems in the past and the fact that its contingency planning involves “manual workarounds”. This won’t inspire confidence in the food industry and certainly didn’t impress PAC, which recommended that DEFRA updates it on progress by the end of June 2018.

DIT told the committee that it was engaged in a recruitment exercise that would give the department the skills necessary to develop trade negotiation capability.

However PAC seemed unimpressed, recommending DIT writes to it within two months setting out how its present capability, plus recruitment plans will give it the skills to negotiate trade deals.

Comment box

It seems that Scottish farmers are exposed to the worst of both worlds in relation to Brexit.

They have had the, at best, cumbersome experience of getting a relaxation of the three-crop rule on one hand, but where the full weight of what is referred to as “Brussels bureaucracy” still applies.

On the other hand the PAC review on the readiness of DEFRA and DIT to hit the ground running in a no-deal Brexit doesn’t inspire confidence in state of readiness. At this point farmers and the industry need certainty not further prevarication, yet there is no evidence of clarity or certainty emerging any time soon.