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England and Wales High Court (Administrative Court) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Administrative Court) Decisions >> National Farmers' Union of England And Wales, R (On the Application Of) v Welsh Ministers [2022] EWHC 611 (Admin) (23 March 2022) URL: http://www.bailii.org/ew/cases/EWHC/Admin/2022/611.html Cite as: [2022] EWHC 611 (Admin) |
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QUEEN'S BENCH DIVISION
PLANNING COURT
2 Park Street, Cardiff, CF10 1ET |
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B e f o r e :
Sitting as a Judge of the High Court
____________________
THE QUEEN on the application of NATIONAL FARMERS' UNION OF ENGLAND AND WALES |
Claimant |
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- and – |
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WELSH MINISTERS |
Defendant |
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NATURAL RESOURCES WALES |
Interested Party |
____________________
Gregory Jones QC and Annabel Graham Paul (instructed by Welsh Government Legal Services) for the Defendant
The Interested Party did not appear and was not represented
Hearing dates: 26 October, 27 October and 9 November 2021
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Crown Copyright ©
Sir Wyn Williams :
"1 In deciding to introduce the [new regulations], the Defendant acted unlawfully and/or has acted unlawfully in so far as:
The environmental 'at risk' zone applies to the entire territory of Wales;
1.2 The derogation hitherto applied to those farmers with more than 80% grassland is not included;
1.3 No reasonable transitional period is included."
The Relevant Background
"MEASURES TO BE INCLUDED IN ACTION PROGRAMMES AS REFERRED TO IN ARTICLE 5(4)(a)
1. The measures shall include rules relating to:
i. periods when the land application of certain types of fertiliser is prohibited;
ii. the capacity of storage vessels for livestock manure; …
iii. limitation of the land application of fertilisers, consistent with good agricultural practice and taking into account the characteristics of a vulnerable zone concerned …
2. These measures will ensure that, for each farm of livestock unit, the amount of livestock manure applied to the land each year, including by the animals themselves, shall not exceed a specified amount per hectare.
The specified amount per hectare be the amount of manure containing one 170kg N. However:
(a) for the first four-year Action Programme, Member States may allow an amount of manure containing up to 210kg N;
(b) during and after the first four-year Action Programme, Member States may fix different amounts from those referred to above. …
If a Member State allows a different amount under point (b) of the second sub-paragraph, it shall inform the Commission, which will examine the justification in accordance with the regulatory procedure referred to in Article 9(2)."
"12. (1) The occupier of a holding must ensure that, in any year beginning 1 January, the total amount of nitrogen in livestock manure applied to the holding, whether directly by an animal or by spreading, does not exceed 170kg multiplied by the area of the holding in hectares.
(2) …
(3) …"
"It is not within the scope of this review to remove the basic measures … the basic measures include… the limitation of the land application of fertilisers, consistent with good agricultural practice, accounting for… the amount of livestock manure applied to the land each year must not exceed the amount of manure containing a 170kg of nitrogen per hectare, unless a Derogation has been granted."
[This quotation has been extracted from paragraph 23 of the Skeleton Argument presented on behalf of the Claimant]
"I have taken into account the consultation responses alongside the views of stakeholders from my Brexit Ministerial Roundtable and its Land Management Sub-Group and the Wales Land Management Forum Sub-Group on Agricultural Pollution.
I want to ensure the people of Wales can continue to benefit from our natural resources. To achieve this, our waters need greater protection from agricultural pollution. I am minded to introduce a whole Wales approach to tackling nitrate pollution from agriculture. Over the coming months, I will work with stakeholders to get the right balance of regulatory measures, voluntary initiatives and investment. I intend to explore options to provide land managers with flexibility, where these would achieve the same or better outcomes than a regulatory approach. …
I welcome the work being done by the Wales Land Management Forum Sub-Group on Agricultural Pollution and the willingness of the industry to work with us to tackle this problem. We will continue to work collaboratively with this group and by Ministerial Roundtable Land Management Sub-Group to ensure the regulatory regime is sufficiently robust to achieve the outcomes Wales requires, while offering flexibility."
"Application Limits for Organic Manure
Total amount of nitrogen from livestock manure applied to the spreadable areas of the holding must not exceed 170kg/ha. Standard figures will apply for N in livestock manure – figures provided below.
250kg/ha limit for an individual field.
250kg/ha limit entire holding for grassland farms upon application where additional measures take place to reduce risk of pollution. Additional measures will be to include phosphate in nutrient management plans, including soil testing, ensuring 80 percent of the holding is grassland, ploughing restrictions and seeding in terms of timings and N fixing properties."
"The details of the measures provided in this document are for information purposes only. The intended Regulations will not apply until 1 January 2020."
"1. In any calendar year the total amount of Nitrogen in livestock manure applied to agricultural land, whether directly by the animals whilst grazing or by spreading, should not exceed 170kg/ha.
2. Enabling the application of manure N from grazing livestock (cattle, sheep, goats, deer and horses) up to a higher limit of 250kg N per hectare per year on an individual farm if the farmer meets the conditions summarised below:
- The farmer must submit an Application Form in each year they wish to have a derogation.
- At least 80 percent of the agricultural area of the farm must be grassland.
- Temporary grassland on sandy soils must only be cultivated in the spring.
- Ploughed grass must be followed with a crop with a high nitrogen requirement.
- Livestock manures must not be spread on grassland in the autumn before it is to be cultivated.
- Leguminous or other plants fixing atmospheric nitrogen must not be included in the crop rotation.
- Farmers must prepare a fertilisation plan and keep fertiliser accounts.
…
35. The above measures will be assessed for the whole of Wales as well as for existing and proposed NVZs.
36. Introduce a spreading limit of 250kg N/h for part of the farms not within existing / proposed NVZs."
"4(1) The occupier of a holding must ensure that, in any year beginning 1 January, the total amount of nitrogen in livestock manure applied to the holding, whether directly by an animal or by spreading, does not exceed 170kg multiplied by the area of the holding in hectares."
Draft Regulation 5(1) provided:-
"5(1) Subject to paragraph (2), the occupier of a holding must ensure that, in any 12 month period, the total amount of nitrogen in organic manure spread on any given hectare on the holding does not exceed 250kg."
"It is anticipated a derogation or exemption from this limit would be available for farms with 80 percent or more grassland before this requirement applies." (Trial Bundle Vol. 2 683)
"4(1) The occupier of a holding must ensure that, in any year beginning 1 January, the total amount of nitrogen in livestock manure applied to the holding, whether directly by an animal or by spreading, does not exceed 170kg multiplied by the area of the holding in hectares.
(2) The amount of nitrogen produced by livestock must be calculated in accordance with Schedule 1."
It is also worth highlighting Regulation 29. That provides:
"29(1) An occupier of a holding who keeps any of the animals specified in Schedule 1 must provide sufficient storage for all slurry produced on the holding during the storage period, and all poultry manure produced in a yard or building on the holding during the storage period.
(2) The volume of the manure produced by the animals on the holding must be calculated in accordance with Schedule 1.
(3) A slurry store must have the capacity to store, in addition to the manure, any rainfall, washings or other liquid that enters the vessel (either directly or indirectly) during the storage period.
(4) …
(5) For the purposes of this Regulation, the 'storage period' (all dates inclusive) is –
(a) the period between 1 October and 1 April for pigs and poultry;
(b) the period between 1 October and 1 March in any other case."
"45(1) If proposals for an alternative suite of measures for delivering the outcomes in Regulation 44(1) are received within 18 months of these Regulations coming into force, the Welsh Ministers must consider whether those measures would deliver the outcomes more effectively than the measures contained in these Regulations.
(2) If the Welsh Ministers are satisfied that proposals submitted under paragraph (1) would be more effective in delivering the outcomes in Regulation 44(1), they must publish a Statement within two years of these Regulations coming into force, explaining what action will be taken."
The Grounds of Challenge and List of Issues
"Ground 1: Legitimate Expectation.
1. Whether the [Claimant] had a substantive legitimate expectation that a derogation would be included in the Regulations as made and, if so, whether it was breached.
Grounds 2 and 3: Wednesbury Unreasonableness
2. Whether the Defendant relied on factual material which was based on a view of the evidence that could not reasonably be entertained and whether any of the statements made by the Minister were factually inaccurate and, if so, whether that matters in the circumstances.
3. Whether the Defendant failed to analyse the matters which the Claimant says were not considered and, if so, if that matters in the circumstances.
Ground 4: Well-being and the Welsh Language
4. In deciding to make the new Regulations:
(a) Has the WG breached the well-being duty and / or the well-being goals of 'a healthier Wales', 'a Wales of cohesive communities' and 'a Wales of vibrant culture and thriving Welsh language' pursuant to S.3 and S.4 of the Well-Being of Future Generations Act (Wales) 2015 (the '2015 Act')?
(b) Has the WG failed to promote Welsh language in breach of S.78 of the Government of Wales Act 2006 and Sections 3 and 4 of the 2015 Act?
Claimant's Amendment Application
5. Whether the Claimant's Application for an Amendment, to include seeking a Quashing Order, should be allowed and, if so, upon what terms?
Relief
6. If the Court identifies any errors of law, whether there should be a declaration and, if so, in what terms, and / or quashing of the Regulations in whole or in part."
"Whether the Claimant's pleaded case is different from the arguments in their Skeleton Argument and whether the Claimant should be allowed to argue points not previously raised without formally amending its pleadings and, if so, whether and upon what terms such an application should be determined."
Ground 1 - Legitimate Expectation
"A Derogation to the application of livestock manure is no longer available as Commission Decision 2013/781/EC … granting a Derogation pursuant to Council Directive 91/676/EEC concerning the protection of waters against pollution by nitrates from agricultural sources has now expired."
"16 As a general principle:
'Where a clear and unambiguous undertaking has been made, the authority giving the undertaking will not be allowed to depart from it unless it is shown that it is fair to do so. The Court is the arbiter of fairness in this context.'
[In a footnote, Counsel quoted paragraph 62 of the Decision in Re Finucane's Application for Judicial Review [2019] HRLR 7 as support for this uncontroversial proposition]
17. There are two sources of legitimate expectation: promise and practice: R(Save Britain's Heritage) v Secretary of State for Communities & Local Government [2019] 1 WLR 929 §35 per Coulson LJ. an implied representation can suffice: R(Gallaher Group Ltd) v Competition & Markets Authority [2019] AC 96 per Lord Carnwath at §37 and §40 (applied in R(o/a Heathrow Hub Ltd) v Secretary of State for Transport [2020] 4 CMLR 17 at §74) in which Lord Carnwath said at §40:
' …the decision in Unilever was unremarkable on its unusual facts, but the reasoning reflects the case law as it then stood. Surprisingly, it does not seem to have been strongly argued (as it surely would be today) that a sufficient representation could be implied from the Revenue's consistent practice for over 20 years… .' (Emphasis added)
18. In this case, the Derogation was applied, in practice, in Wales since 2009.
19. A practice must 'give rise to a representation which is clear, unambiguous and devoid of any relevant qualification': Heathrow Hub at §69. Such clarity can be achieved by implied promise. It is possible to derive a legitimate expectation from an implied promise: Gallaher at §37. What is required is 'a promise although it need not be an express one as it may be implied': Heathrow Hub at §74.
20. Context is important, as is 'how on a fair reading of the promise it would have been reasonably understood by those to whom it was made'.
21. In this case, a practice was settled, from 1994, that the measures for the protection of water quality in Wales would contain the Derogation for grassland farms. The Annexe annexed to this Skeleton sets out chronology of this practice."
Grounds 2 and 3: Wednesbury Unreasonableness
"It may be that the facts found are such that no person acting judicially and properly instructed as to the relevant law could have come to the determination under appeal. In those circumstances … the Court must intervene."
"(2) The Section is framed in a 'subjective form' – if the Secretary of State 'is satisfied'. This formal section is quite well known and at first sight might seem to exclude judicial review. Sections in this form may, no doubt, exclude judicial review on what is or has become a matter of pure judgement. But I do not think that they go further than that. If a judgment requires, before it can be made, the existence of some facts, then, although the evaluation of those facts is for the Secretary of State alone, the Court must enquire whether those facts exist, and have been taken into account, whether the judgment has been made upon a proper self-direction as to those facts, whether the judgment has not been made upon other facts which ought not to have been taken into account. If these requirements are not met, then the exercise of judgement, however bona fide it may be, becomes capable of challenge…"
Impact of Geographical Extension of Environmental 'At Risk' Zone – Paragraphs 54 to 56 of the Grounds
"This advice considers four possible options, summarises each and provides a recommendation. The options are:
- Option 1 – do nothing (2.4% of Wales remains designated as NVZs);
- Option 2 – introduce Regulations across the whole of Wales, with a review clause to consider earned autonomy. This option would amalgamate measures which apply in existing NVZs with silage and slurry regulations which apply to all of Wales;
- Option 3 – designate additional areas as NVZs (8% of Wales) only; and
- Option 4 – introduce Regulations across the whole of Wales – 8% NVZ measures, with different measures elsewhere; with a review clause for earned autonomy.
A summary of the measures which would apply in each option are provided at doc 36."
"81. Continuing to implement measures only in designated NVZs will have limited impact. The larger spatially targeted approach is also unlikely to be successful in tackling agricultural pollution due to the complex distribution of point source and diffuse agricultural pollution issues affecting water bodies across the country (see DOCS 7 to 14 and 17).
82. Targeting water bodies identified as failing specific standards (Nitrates Directive, Water Framework Directive or otherwise) would not prevent pollution in other areas until it is already a significant problem and is confirmed as such by an adequate monitoring programme. A spatially targeted approach would require different regulations to apply in different areas, which would need to be regularly reviewed, leading to considerable complexity and uncertainty.
83. Rather than being targeted at specific areas of Wales, the proposed measures are targeted at activities which present a risk of pollution. This provides a proportionate, preventative approach, which will reduce losses of pollutants across Wales, in line with the Welsh Government's intended environmental principles and governance post-EU Exit.
84. An all-Wales approach also supports the commitment to the Wellbeing of Future Generations Act. Each year in Wales, private water supplies fail to meet standards due to microbial and chemical parameters, which increases water treatment costs and presents a health risk for those on private water supplies. The proposal aims to enhance the environment, providing clean water for drinking and for play, improving opportunities for healthy activities in a safe environment in all areas of Wales.
85. Reducing nutrient losses from agriculture to the environment will be beneficial in helping to reverse the decline in biodiversity and will enhance ecological networks. As well as reducing emissions contributing to climate change, a reduction in pollution as a result of the measures will lead to ecosystem improvements which will support climate change migration and adaptations."
"The development of a proposal has been informed by a number of consultations including on the storage of sileage and slurry, the sustainable management of natural resources and on Nitrate Vulnerable Zones in Wales. Stakeholder engagement and the work of the Wales Land Management Forum Sub-Group on agricultural pollution has also been considered and taken into account. Welsh Government officials of relevant policy areas have been consulted during the development of the proposal to ensure coordinated approach with other policies, particularly in relation to water quality and the development of future land management schemes.
The proposal has the potential to impact upon the people, culture, Welsh language, economy and environment of Wales. The most significant impacts relate to the effect of the proposals on businesses and the environment. Agricultural businesses have identified concerns regarding the implementation of regulatory requirements. There are many agricultural businesses operating to very high, environmentally sustainable standards of production. The burden of paperwork and the economic impact were raised as significant challenges. The greatest economic issues raised relates to the investment in achieving compliance with the proposed slurry storage standards. These costs vary from minor clean and dirty separation actions to replacement stores requiring substantial investment. This is a commercial decision for the farmer, but these types of capital investments can be financially supported through the Rural Development Programme. Where shortfalls in slurry storage exist, this investment is necessary to manage manures in a way which prevents pollution and replacement costs are inevitable when stores reach the end of their lifespan.
When good practice guidance is already being followed and existing regulatory requirements are being met, the proposed measures will have minimal impact. A high level of non-compliance with regulatory standards relating to storage has been observed on farms producing slurry. Those businesses will face the greatest challenge as the most significant costs associated with the proposals relate to the additional storage needed by those not meeting existing requirements. Some tenant farmers may face particular challenges due to restrictive clauses in their Tenancy Agreements. The Welsh Government recognises this issue and is committed to modernising tenancy law to facilitate longer-term investments in sustainable land management practices and productivity improvements.
The other main cost attributed to the proposal is an annual reduction in yield due to the avoidance of spreading fertiliser at high risk times and in high risk areas. The economic impact will depend on the ability of farms to utilise nutrients more efficiently, to increase yields, such as through the use of precision spreading technology.
…
The proposal is expected to have a positive impact on public health more generally. The reduction of nutrients and faecal pathogen losses to the environment provides improved access to safe outdoor recreational activities, improved mental well-being and improved access to clean drinking water. There may be some negative consequences for health due to the cost implications for farm businesses, which has the potential to contribute to the detrimental economic conditions affecting health of individuals. The potential negative impact of additional regulatory requirements on mental well-being, particularly where other economic or health challenges already exist, is also recognised.
The natural environment is a key element of Welsh culture and heritage. It also provides significant opportunities for outdoor recreation. The health of the environment at landscape scale, catchment scale or individual waterbodies is crucially important in supporting enjoyment of the countryside. Reduced nutrient losses from agriculture to the environment will be beneficial in helping to reverse the decline in biodiversity. An all-Wales approach will enhance ecological networks. Ecosystem improvements will support climate change mitigation and adaptation.
Sustainable farming is a crucial for food production……. Financial support through the Rural Development Programme has already been provided ….The Welsh Government will continue to support the agricultural industry through advice, guidance and capital investment.
The programme of measures will be reviewed every 4 years to ensure they are effective and reflect the latest evidence available. The process will involve consultation with affected individuals and representative organisations."
Imposition of Limits on Nitrogen Applications to Land and Slurry Storage Requirements – Paragraphs 57 to 65 of the Grounds.
Farm Viability – Paragraph 66 of the Grounds
"The introduction of the new Regulations threatens the viability of farming in Wales and the issue of future farm viability was simply not analysed by the Minister when she took the decision to regulate for the whole of Wales."
The Position of Tenant Farmers – Paragraph 67 of the Grounds
Planning Permission – Grounds, paragraph 68
Necessary Length of Transitional Period Not Analysed – paragraphs 69 to 71 of the Grounds
"The Covid-19 pandemic has been considered carefully as part of the proposal, to ensure the industry is able to implement the necessary changes with minimal disruption. As the risks associated with the impact of the pandemic can change at any time, transitional periods have been proposed to ensure the burden of implementation is spread over a number of years, providing a balance of providing positive environmental outcomes, whilst giving farmers time to understand and comply with the requirements."
Within the Conclusion section of Schedule 6, there is a further relevant sentence which reads:
"The inclusion of increased transitional periods will further minimise the initial impact of the Regulations and mitigate against the potential impacts associated with exiting the EU and the pandemic."
Position of Farms Under Bovine TB Restriction – Paragraph 72 of the Grounds
The Combined Impact of the New Regulations and Brexit – Paragraph 73 of the Grounds
Conclusion on Ground 3
Ground 4 – Well-Being and the Welsh Language
Issues 5 and 6
Note 1 See witness statement of Spencer Conlon dated 20 October 2021. [Back] Note 2 The 2013 Regulations and the Water Resources (Control of Pollution) (Silage and Slurry) (Wales) Regulations 2010 (“the 2010 Regulations”) [Back] Note 3 For that proposition they cite Sharif v Camden LBC (2013) UKSC 10 at paragraph 17 [Back] Note 4 For the text of that sub-regulation see paragraph 42 above. [Back]