Grand Committee
Arrangement of Business
The Deputy Chairman of Committees (Lord Lexden) (Con)
My Lords, Divisions are expected in the Chamber this afternoon. The Committee will adjourn as soon as the Division Bells are rung and will resume after 10 minutes.
Renewable Transport Fuel Obligations (Sustainable Aviation Fuel) Order 2024
(2 days, 3 hours ago)
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Lord Hendy of Richmond Hill
That the Grand Committee do consider the Renewable Transport Fuel Obligations (Sustainable Aviation Fuel) Order 2024.
Relevant document: 1st Report from the Secondary Legislation Scrutiny Committee
The Minister of State, Department for Transport (Lord Hendy of Richmond Hill) (Lab)
My Lords, the order was laid in draft before this House on 24 July 2024. It will ensure that sustainable aviation fuel, also known as SAF—I hope that your Lordships will tolerate the use of that acronym—makes up an increasing proportion of the jet fuel supplied to the UK each year. As a consequence, the greenhouse gas impact of flying will be significantly reduced. The draft order, referred to as the SAF mandate, will contribute to fulfilling our manifesto commitment to secure the UK aviation industry’s long-term future and it has received significant cross-party parliamentary support to this point. No issues were raised on the draft order at the Secondary Legislation Scrutiny Committee or the Statutory Instruments Joint Committee.
The SAF mandate is a bespoke mechanism for guaranteeing demand for SAF in the UK. It will send a strong signal to industry that SAF will play a pivotal role in the future of UK aviation and will provide an incentive for SAF to be supplied. However, it is just one pillar of a wider approach to capitalise on the environmental and economic opportunities that SAF offers. The UK will also lay legislation to support SAF production in the UK by providing revenue certainty. This will strengthen the UK’s leadership in SAF production, improving its fuel security while fostering industrial development and generating green jobs.
We are pleased to see SAF starting to be brought to the UK market in small but increasing volumes. The SAF mandate will help to address barriers to widespread adoption and realise the full potential of this technology. The United Kingdom has a rich history of being at the forefront of aviation innovation and we will continue to show leadership by introducing one the world’s most ambitious frameworks to drive demand for SAF.
SAF is blended with conventional kerosene to be used in existing aircraft and engines without modification. It is a low-carbon fuel that uses sustainable feedstocks instead of crude oil, which achieves greenhouse gas savings across its lifecycle production and use. It can be derived from a wide range of sources that achieve carbon savings relative to fossil fuel in different ways. They include biomass derived from wastes and residues; fossil wastes that cannot be avoided, reused or recycled; and renewable and nuclear energy. This means that we can draw on resources that would otherwise be discarded, such as agricultural residues and black binbag waste, to make jet fuel. The existing renewable transport fuel obligation, or RTFO, rewards the supply of SAF but does not obligate aviation fuel supply. By introducing a specific obligation on aviation fuel, we will guarantee a minimum supply of SAF.
I turn to the specific content of the statutory instrument. It introduces two obligations on suppliers of fossil jet fuel: a main obligation and a power-to-liquid obligation. The obligations are placed on jet fuel suppliers at the point at which their fuel can be supplied only to UK aviation. Each obligation period is one year in length and runs on a calendar year basis. To fulfil the obligations, suppliers must redeem SAF certificates at the end of the obligation period. Certificates are awarded to suppliers of SAF that meets the sustainability criteria. The number of certificates that a supplier receives is in proportion to the greenhouse gas savings that it achieves.
Power-to-liquid fuel, a type of SAF made from carbon dioxide and renewable or nuclear power and heat, will be rewarded with specific certificates that can be used to meet the power-to-liquid obligation. This will specifically incentivise the supply of these fuels, given their potential for higher greenhouse gas emissions reduction and lower risk of environmental impacts.
SAF made from segregated oil and fats, such as used cooking oil, commonly called HEFA, will also receive separate certificates. Suppliers can use these certificates to meet their main obligation, but the amount will be capped, starting from 2027, to allow market space for novel technologies. All other types of SAF are rewarded with standard certificates, which can be used to meet the main obligation. All certificates can be traded between account holders for a price determined by the market. The value of these certificates therefore provides a revenue stream for producers of renewable fuels and demand for their products in the fuel market.
Where a supplier has a shortfall in certificates to meet the obligations, a supplier must pay the buyout, which is a fixed price per unit of energy. The purpose of a buyout mechanism is to provide a way for suppliers to discharge their mandate obligation in cases where they are unable to secure a supply of SAF, preventing excessive costs from being passed on to consumers. This price is set to be higher than the expected cost of producing and supplying the same unit of SAF under normal market conditions, thus incentivising the supply of SAF.
The instrument also sets out the criteria that SAF must meet in order to be eligible, to ensure that we maintain the highest sustainability credentials. The order makes provision for the administration and management of accounts for suppliers to ensure that a record is kept of obligations and certificates. It also sets out appropriate processes for the revocation of certificates and issuing penalties where certain provisions are contravened.
Renewable fuels already contribute one-third of transport’s emission reductions from the current carbon budget. However, this is almost exclusively in the road fuel sector. Introducing the SAF mandate will broaden the use of low-carbon fuels into aviation and secure the long-term future of this transport mode. It is projected that, between 2025 and 2040, the SAF mandate could deliver up to 25 million tonnes of SAF, securing a saving of up to 54 million tonnes of carbon dioxide.
To conclude, we must act now to address the global challenge of climate change. Historically, the aviation industry has faced difficulty in achieving carbon reductions. However, SAF represents an immediate opportunity to change this. The technology has been proven to achieve significant greenhouse gas savings and it can be used in aircraft today.
Lord Hendy of Richmond Hill (Lab)
My Lords, with permission, I shall start the concluding paragraph again.
To conclude, we must act now to address the global challenge of climate change. Historically, the aviation industry has faced difficulty in achieving carbon reductions. However, SAF represents an immediate opportunity to change this. The technology has been proven to achieve significant greenhouse gas savings and it can be used in aircraft today. The proposed instrument will facilitate the adoption of this technology on a large scale, which is essential for achieving net zero and delivering on the manifesto commitment to secure the future of aviation.
Baroness Randerson (LD)
My Lords, I thank the Minister for his explanation. There is no doubt about the need for action in relation to aviation. UK aviation fuel use more than doubled between 1990 and 2020, despite efficiency improvements in aeroplane design. By 2050, aviation will be one of our largest emitters. The technological advances are not looking optimistic in relation to battery and hydrogen-powered aircraft. Such flights are a long way off becoming long-distance or even medium-distance in terms of practicality. Combine this with the fact that the lifespan of an aircraft is 30-plus years and this is a huge challenge for us. SAF is far from a perfect answer, but it is all we have and it is welcome to see this draft SI here.
I have obediently read this complex and lengthy document and I have some fairly basic questions for the Minister. First, the consultation took place in 2022, I think. Why has it taken so long to get from the consultation process to this SI? I am aware, when I ask that question, that it is deeply unfair, because this was the previous Government’s problem, but I notice that, at the top of the front page, it says that this draft SI replaces one produced on 20 May this year. Is it substantially different in terms of its impact, or is the difference simply that a couple of mistakes have been ironed out? The length of time it has taken is disappointing, because the previous Government announced “jet zero” with a great fanfare several years ago, and therefore the slowdown is a problem.
Secondly, have the new Government changed the plans for the operation of the new system? They might have changed the SI, but have they changed their plans to any practical extent? Thirdly, the aviation industry has been pressing us for government action to stimulate production of SAF for many months or even years. It has been telling us that, if the Government did not take action rapidly, SAF production would take off, if I can use that term, in our competitor countries, we would fall behind and we would not therefore be a leader in SAF production. I am referring here to the manufacture rather than the use of SAF.
Although this SI seems to encourage the use of SAF, it does not seem to directly provide a mechanism to encourage and support the manufacture of SAF, along the lines of the mechanism that we have been pressed by the aviation industry to adopt. Can the Minister explain whether anything in the Budget will help encourage the production of SAF? I noted that money was available for the aerospace industry and was unsure whether that would cover this sort of thing.
Finally, there is good SAF and not so good SAF, which is referred to in this Explanatory Memorandum. Can the Minister explain how industry checks, and government process checks, will ensure that the SAF manufactured and used in the UK is up to the highest environmental standards?
Lord Trefgarne (Con)
I apologise to your Lordships for not being in my place when we resumed following the Division.
I have a simple question for the Minister. Can he say whether all this applies to general aviation, in particular aviation involving smaller aircraft which very often run on aviation gasoline and not the fuel that forms part of this agreement? This is important because the price of fuel is a critical part of operators’ costing, they need to know where and when they can get it and that it will be available when required. In essence, the question is, does this apply to general aviation and to smaller aircraft running on gasoline, as well as to larger ones running on turbine fuel?
Lord Moylan (Con)
My Lords, I am grateful to the Minister for arranging a briefing with officials so that I could better understand this complex proposal. The briefing was indeed helpful and I learned a great deal.
I find this a troubling statutory instrument not because I have any objection to the use of SAF by aircraft—indeed, I welcome that—but because of the chosen mechanism. We are still meant to be a free-market country and the normal means of market operation in this country is that, where there is a demand for something, a supply is forthcoming.
We are told that, despite the fact that SAF is estimated to cost between three times and seven times as much as standard kerosene-based fuel, there is a genuine and strong demand for it from airlines, not because they enjoy paying more for their fuel necessarily but because from their own reputational point of view they wish to do as much as they can to decarbonise the operation of their fleets. SAF is the principal technique available to them for doing that at the moment, as the noble Baroness, Lady Randerson, pointed out, so the demand undoubtedly exists. Why is the supply therefore not forthcoming? Why is it that they would have to go somewhere else to buy SAF—which is the implication of their position—when the demand exists here and we are home to major suppliers? Nobody seems to have explained this.
We have decided, despite the fact that we allegedly operate a market economy, that the Government are going to intervene so as to mandate the supply of this fuel. The means of mandating it is through this instrument —through the mandate—and that will not only oblige it to be produced but oblige it to be sold in certain quantities that will increase every year.
That addresses only the standard available type of SAF—the HEFA-type SAF that the Minister referred to. There are other, more exotic means of producing SAF not yet available, some of them perhaps even undreamt of. They will be subject to a separate mandate so that, to fulfil the mandate, it will be obligatory to produce some SAF by these alternative methods. That graph continues to grow over a period, as illustrated in the table on page 7 of the statutory instrument. What I would really like to know is: why can this not be done by the market?
Lord Hendy of Richmond Hill (Lab)
I thank all noble Lords for their contributions to this debate. I will take the questions from the noble Baroness, Lady Randerson, first. Her first questions were about the length of time that it has taken to bring this statutory instrument together.
We have engaged extensively with industry in this area. Two consultations have been completed and, in both cases, industry was generally supportive of our proposals. The most recent consultation, in March 2023, received 104 responses and the government response to this was published in April 2024. We received responses from a range of stakeholders, including fuel suppliers, airlines and NGOs, so it has been extensively consulted on. This statutory instrument replaces the previous one tabled, because there has been a change of Government; the current one was therefore tabled by the new Government.
The noble Baroness asked whether this is good SAF and what good SAF is. The Government have been clear that the mandate must deliver fuels with the highest sustainability credentials. We are therefore putting in place strict sustainability criteria that SAF must meet to be eligible under the mandate. SAF must be made from sustainable waste or residues, such as used cooking oil or forestry residues; recycled carbon fuels, such as unrecyclable plastics; or power-to-liquid fuels made using low-carbon, renewable or nuclear energy. SAF produced from food, feed or energy crops will not be allowed. We will continue to monitor the sustainability of SAF pathways to ensure that high sustainability standards are maintained.
The noble Lord, Lord Trefgarne, asked whether this applies to general aviation. I have been referred to a very complex answer, but I am not sure that I can do full justice to his question. If the noble Lord will indulge me, I will write to him fully on that.
Lastly, the noble Lord, Lord Moylan, raised some questions. He asked about the cost implications for passengers. I am assured that, although SAF will be more expensive than traditional jet fuel, it must be right that the costs of decarbonising the fuel are borne by those that produce the emissions. Providing that sufficient SAF is available, increases in average airfares will fall within the range of their annual variations, seen historically, from which it is not difficult to deduce that the effect on passenger numbers will be quite small.
The noble Lord, Lord Moylan, is correct that the guaranteed return is not in this instrument. That is why the Government have committed to a revenue certainty mechanism.
If there are any questions that I have failed to answer completely, I will write to noble Lords and the noble Baroness about them.
Lord Moylan (Con)
May I briefly ask the Minister something? There seem to be two guarantees going on here. Might the Minister be able to inform your Lordships about how they will interact? One is a guaranteed price mechanism. As I understand it, although I am happy to be corrected, the suppliers will be guaranteed a price for the SAF, the suppliers being the large companies that supply this type of fuel—the BPs and so on of this world. The other is a guaranteed return to the investors. The investors are presumably the people who will pay for the construction of the facilities that will produce this material, source it and so on—that is, the infrastructure required to generate it. Can the Minister say how those two guarantees interact, both legislatively and financially? Is the Minister saying that one is being legislated for in this instrument and one is to come later? Noble Lords would be interested to understand that, I think.
Lord Hendy of Richmond Hill (Lab)
I thank the noble Lord for his intervention. He is right that there are two mechanisms. The revenue support mechanism Bill will introduce revenue certainty for SAF producers looking to invest in new plants in the UK. Together with the SAF mandate, those measures will give the investment community confidence to invest in these novel and innovative technologies.
The revenue certainty mechanism aims to boost greener flying and support an industry estimated to add more than £1.8 billion to the economy. This will help secure the supply of SAF for UK airlines. The legislation for a revenue certainty mechanism will be in place by the end of 2026. If the noble Lord would like me to explain further how those two mechanisms interact, I would be absolutely delighted to write to him.
To conclude, greener transport is central to the delivery of the UK’s cross-economy climate targets. It directly supports the Prime Minister’s mission to make Britain a clean energy superpower and accelerate our journey to net zero. SAF is one of the key technologies that will facilitate this change. Introducing the SAF mandate will allow the UK to capitalise on the opportunity that SAF presents for decarbonising the aviation sector and will support the transition to net zero.
Franchising Schemes (Franchising Authorities) (England) Regulations 2024
(2 days, 3 hours ago)
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Lord Hendy of Richmond Hill
That the Grand Committee do consider the Franchising Schemes (Franchising Authorities) (England) Regulations 2024.
Relevant document: 3rd Report from the Secondary Legislation Scrutiny Committee (special attention drawn to the instrument)
The Minister of State, Department for Transport (Lord Hendy of Richmond Hill) (Lab)
My Lords, these draft regulations relate to access to bus franchising powers for all types of local transport authorities in England outside London. The regulations bring into effect paragraphs (b) to (g) of Section 123A(4) of the Transport Act 2000, such that the types of authorities listed in those paragraphs come within the meaning of “franchising authority”.
These powers were previously limited to mayoral combined authorities and mayoral county combined authorities. However, these regulations give all types of local transport authorities access to powers to franchise their bus services. In doing so, they will ensure that decisions are made at the right level. These regulations aim to give the power to local leaders to determine the most appropriate action to deliver an improved bus network, based on the needs and circumstances of their areas. This step does not mandate local transport authorities to franchise; it is about providing them with a suite of tools to support their communities and deliver better bus services.
The department will build on the progress of these draft regulations through the introduction of the buses Bill later in this parliamentary Session. The Bill will deliver further changes to make bus franchising easier to deliver, alongside other measures on areas such as accessible travel. It will also improve bus services for local transport authorities that choose not to franchise, allowing greater flexibility over bus funding and letting local leaders deliver their own local transport priorities. Alongside this, the department is building its capacity to provide practical support to local transport authorities throughout the franchising process, should they wish to pursue it.
I will now provide some background information about these regulations. Bus franchising powers for local transport authorities in England, outside London, were created in the Bus Services Act 2017. Powers were automatically given to mayoral combined authorities and mayoral county combined authorities to allow them to prepare a franchising scheme assessment—essentially a business case—if they chose to do so, without requiring consent from the Secretary of State for Transport.
Currently, all other types of local transport authorities wishing to prepare a franchising scheme assessment face a two-stage pre-assessment process. First, regulations must be made which switch on access to the franchising powers. Secondly, the Secretary of State for Transport must give her consent to any individual authority to prepare an assessment of their proposed franchising scheme. This instrument implements the initial stage of this process for non-mayoral combined authorities, ensuring that they will need to obtain the Secretary of State’s consent only to prepare a franchising scheme assessment. This will reduce the barriers facing these types of local transport authorities in pursuing bus franchising.
I turn to the detail of the regulations. Bus franchising is a model for providing bus services where a local authority determines the details of the service and private operators are contracted to run the services. Alternatively, in a deregulated market, any company, subject to minimum safety and operating standards, can operate and have control over bus services. These regulations seek to empower local leaders to choose the model that works best in their area to manage their bus services. Bus franchising is one of those tools. Alternatively, local transport authorities can pursue high-quality enhanced partnerships with private operators or public ownership.
These regulations are part of the Government’s delivery of their manifesto commitment to give
“new powers for local leaders to franchise local bus services”.
Bus franchising will give communities a greater say in the services they can use, connect people to opportunities and benefit those on lower incomes, who disproportionately use buses.
This instrument implements the first stage of this process for all types of local transport authorities so that they require the Secretary of State’s consent only to proceed with the assessment. The department is also revising the bus franchising guidance to streamline the franchising process. The Government consider that this onerous process has acted as a barrier to local authorities. Removing the first stage of this process will make it easier for local transport authorities to pursue franchising if they wish to do so. The regulations improve the suite of tools on offer for local transport authorities to deliver better buses.
I am pleased to say that the statutory instrument was cleared without comment by the Joint Committee on Statutory Instruments. To address the only request made by the Secondary Legislation Scrutiny Committee, for more information on franchising, the department is also revising its bus franchising guidance, which sets out the franchising process accessibly and in detail.
These regulations represent an important first step towards delivering on the Government’s aim of ensuring that local authorities have the tools they need to plan and deliver services in a way that suits their communities. The forthcoming buses Bill, which will be introduced later in this parliamentary Session, will build on this progress. Through this instrument and the forthcoming Bill, the Government will deliver on their plan for improving the bus network and ending the postcode lottery of bus services. The plan is centred on putting control of local bus services back into the hands of the communities that use them and will give local leaders the freedom to take decisions to deliver their local transport priorities. I beg to move.
Lord Grayling (Con)
My Lords, I stand to speak briefly about these regulations, as I was the Secretary of State when the original legislation was passed. While I understand what the Minister is trying to do—he comes at this, of course, from the perspective of somebody who has led the franchising operation in London—I have two big misgivings about this change.
We very consciously extended the franchising powers to the other metropolitan areas and mayoral combined authorities, believing that what was being done in London and the volume of passengers there made that a sensible and realistic option. Despite that, areas such as Manchester took several years before deciding to go down this road. Promises were made about franchising happening quickly, but it never actually did at that time. Of course, the mayoral combined authority areas have the critical mass to do this, whereas the reality is that, on the ground in other parts of the country, the idea that an alternative to what happens now is available through franchising is something of an illusion.
The reality is that local authorities in counties such as Surrey, where I was a Member of Parliament for 23 years, already plan their services because they pay for them where a gap cannot be filled commercially. It is not as if they can somehow suddenly dictate that this route happens and that route happens. Given the low level of ridership, getting any buses at all to run is a challenge and something they have to fund and develop themselves. So I do not really see how expanding franchising to counties such as Surrey will make any difference whatever. That in itself seems to make this change anything but what the Minister has just described it as. Of course, franchising is a realistic option in metropolitan areas and mayoral combined authority areas. That is why we gave that power in the first place, but I just do not see it going to other parts of the country.
I have a reservation that goes beyond simply not understanding why this is necessary. There is a danger that this will hold back the development of bus services for the future. The reason I say that is that it was clear to me during my time as Secretary of State that the future of bus travel in rural areas, in particular, is about demand-responsive buses. It is not about traditional routes going all day long from A to B and B to A. It is about buses that do different things at different times of the day, follow different routes and respond to passenger demand. Effectively, it is about Uber-type operations on a large scale, with routes changing all the time based on who wants to use them.
I do not see how demand-responsive buses fit within a franchise system. I would very much like to hear the Minister explain that to me. By definition, if you are dealing with a private operator that adapts the routes it follows all the time to reflect individual demand on individual days, which has to be the future of buses in some parts of the country, how on earth does franchising fit with that? Yet a local authority may decide on this for political reasons, for example—on the Labour side, there were great debates at the time about wanting to see local authorities have greater control over bus systems—and I fear a conflict between its desire to structure things in some areas, trying hard to do so even when it has to pay for a lot of the routes itself, and not unleashing the potential of demand-responsive buses. They will be the future of public transport in areas of the country that remain ill-served by buses, and where it is difficult to make them operate simply because the sheer demand that exists in our cities is not there.
So I would particularly probe the Minister about how he sees demand-responsive buses working within the system that these regulations create. I still think that they are not necessary. Franchising in big cities and major conurbations is fine. This feels like a set of regulations that will not achieve very much. As the notes say, there is no actual demand from non-metropolitan combined authority areas and this instrument may hold back the private sector from the kind of innovation that will be needed for the future.
Baroness Randerson (LD)
My Lords, I welcome the progress on franchising represented by this SI. I always felt it was a great pity that the 2017 Act made franchising so complex, so I am pleased about the removal of the first stage of the franchising process. However, I draw the attention of noble Lords to the report of the Secondary Legislation Scrutiny Committee, of which I am a member. That report criticised the Explanatory Memorandum because it had little information on what franchising is and how it differs from the current situation. Also—I think this is crucial—how many local authorities are expected to adopt franchising?
I do not agree with the points made by the noble Lord, Lord Grayling, in full, but he raises an issue which relates basically to capacity. I will come back to that in a moment, but if franchising is not suitable for Surrey, why was it regarded in that 2017 legislation as acceptable for Cornwall? It is my recollection that Cornwall was allowed to franchise buses. An element of doubt is sewn in this SI in the Explanatory Note, which says that no impact assessment has been produced because the SI is not expected to have any, or any
“significant, impact on the private, voluntary or public sector”.
I find that judgment worrying, because bus franchising is a very big undertaking, a multimillion pound undertaking, and it takes a long time. I have watched Manchester, for example, struggle with franchising in producing the Bee Network over many years.
Nevertheless, despite the deficiencies in the way the SI is cast, it is welcome because it removes the first stage, as I pointed out earlier, and also because it extends bus franchising powers beyond mayoral authorities. At the time that this legislation went through this House, I questioned why, having voted, as a local authority, for an elected mayor, that made you intrinsically more capable of running the buses. It struck me as totally illogical. Not all bigger local authorities have elected mayors: I think of Bournemouth, Christchurch and Poole, which is a fairly densely urban area that does not have an elected mayor.
So I am pleased that the complexity of the process is being reduced and I am pleased that it is being extended, but, in reality, the key barrier remains the capacity and expertise in our local authorities. I was pleased to read that the department is looking to build up its capacity to offer advice and assistance to local authorities, because on the ground that is what they desperately need.
When the Secondary Legislation Scrutiny Committee asked the Department for Transport why there was no proper explanation in the Explanatory Memorandum, the department provided a very clear paragraph, which was included in our report. I recommend that noble Lords read it if they are in any doubt about the importance of this legislation.
Finally, the same legislation in the 1990s that allowed London to franchise and fatally divided the country between the bus haves and the bus have-nots also encouraged local authorities to sell their bus services and their buses and forced them to run them on a strictly commercial basis. It has interested me ever since that the few local authorities that still have bus companies and run their own buses at arm’s length are largely successful and some of the best examples of bus services in the country.
Lord Moylan (Con)
My Lords, we recently had a Statement in the other place given by the Secretary of State on bus franchising. My understanding is that this instrument gives effect to that Statement—at least its initial parts. I recall that, when we debated that Statement in your Lordships’ House, I had the temerity to describe it as being essentially a bogus offer.
I gave two reasons for that, but I have now found a third, which is that the instrument does not actually allow local authorities to go in for bus franchising at all. All it does is allow them to apply to the Secretary of State for permission to prepare a plan for doing so, but nothing is said, and nothing has been said by the Minister, about what criteria will be applied when such plans are submitted. In order to understand the implications of this instrument, we need to understand that. The Minister has said nothing about how many applications he or his department expect to receive, or about what proportion of such applications he considers it likely that the department will grant. It is perfectly possible that the answers to all these questions is “zero” under this instrument, and that bus franchising will be no further forward as a result of this very grand announcement, which was made with great hoopla in the other place, and of this instrument than it is today. We really would like to know some of the answers to some of these questions in practical and not simply theoretical and legislative terms.
I return to the two reasons I gave when we debated the Statement in your Lordships’ House. The first is that the policy comes with no money attached to it. At the time, the Chancellor had not made her Budget Statement. She since has, so it should be open to the Minister to say how much money has been allocated to supporting local authorities to undertake franchising, because the whole purpose of franchising is to generate services which the market will not bear. Nobody denies that there is a cost to local authorities in undertaking franchising—a cost that they are most unlikely to be able to support from their own resources—so what money is the department, or are the Government in general, putting behind this greatly trumpeted policy?
My second cause for complaint in that earlier debate has already been referred to by the noble Baroness, Lady Randerson: the complete lack of capacity of local authorities, certainly outside the metropolitan areas, to put together and run a bus service as an integrated operation. There is more to this than simply saying “We’d like the buses to run here”. Route planning involves thinking about demand, the locations of passengers and their relationship to places of work, hospitals and other destinations, and so forth. That is a skill; it does not just come to a committee of local councillors sitting around a table. Even if you have experience of route planning, as we have seen in Manchester, you have to think about branding, fares and ticketing, and what you will accept by way of tender. Are you accepting cash or is it cashless only? You have to know what sorts of discounts, season tickets and so forth you are willing to offer. As the noble Lord knows, and as I have had the privilege of observing in the past, in the various positions that he and I have occupied, real skill is required to do this well.
The answer that we have had from the noble Lord so far is a mildly amusing one: the Department for Transport is going to set itself up as a centre of expertise in how to plan routes, and do branding, fares and ticketing, for bus companies and services throughout the country. Now, I fully acknowledge that there is at least one person in the Department for Transport who has the skill to do that, and that is the noble Lord the Minister. But he is going to be jolly busy doing all these jobs, being both a Minister and planning routes for modest settlements and hamlets in the remoter counties of England.
However, if it is not going to be the Minister, who will be recruited to do this skilled work in the Department for Transport? Will they be recruited on a sort of ad hoc consultancy basis? Is this department waiting speculatively for applications to arrive, which may or may not meet criteria that have not been vouchsafed to us so far, and which may then be rejected or accepted by the Secretary of State? How will this wonderful offer of skill and expertise inside the Department for Transport be achieved in practice? The noble Lord should not be allowed to leave this Grand Committee without explaining those things to us in some detail.
I come finally to a point that is new to me, because it struck me only yesterday evening when I went to a reception given by the Accessible Transport Policy Commission and found myself speaking to the chief executive of a private bus company—a commercial operation in a large provincial city; I will not say which. He described to me all the good work it was doing to make its fleet more accessible to people with disabilities. We even talked about something that was new to me, which I am interested to explore—dementia-friendly flooring.
He described to me the close relationship he had, working with the local authority, then he looked me straight in the eye and said, “You’re going to confiscate my business”. That took me aback, because I had not thought about it in those terms—but in practice that is what franchising will do. It is, in effect, the confiscation of a business. Of course, he may still secure the franchise, but then he would simply be operating services for somebody else, for a fee. He would no longer be running a business; he would simply be somebody else’s agent in doing that.
This is confiscation, like the nationalisation of the train operating companies, which is happening. I have to say to the Minister that there is an increasing whiff of Bolshevism about this Government’s transport policy—and we know that that did not end well.
Lord Hendy of Richmond Hill (Lab)
I thank noble Lords and the noble Baroness for their extensive comments. I turn first to the noble Lord, Lord Grayling, and his remarks about where this might apply and the circumstances in which it would be appropriate.
The primary thing to say about this is that it is a matter of choice. This statutory instrument extends choice to all local transport authorities, which might choose various solutions around the scale of public bus services in their areas.
I did not need to search for examples outside London because the noble Baroness, Lady Randerson, gave me some, including the very rural county of Cornwall, where the public transport network is now a model. It includes demand-responsive transport, to a limited extent, but it has also reintroduced bus services in places where they have not been seen for a very long time.
The noble Baroness’s example of Bournemouth, Christchurch and Poole is one of a combined conurbation where the bus services are, in my judgment, of quite a good standard. It may well be that the local transport authorities concerned decided that that service was sufficient, but there are many other places in England where the bus service is not judged to be of a sufficient standard, where it has fallen to a bare minimum and where the reintroduction of some service standards would not only be a good thing but would create revenue which would expand the total service provision.
Regrettably, I can find some examples of places—although I think it would be better not to name them—where sufficient short-term service cuts have been applied that the revenue generated is so low that the whole bus service is in a continual spiral of decline. There are other places where that has not happened. That is the supply side of the choice we are offering local authorities, so that they can do what they think is best.
The noble Lord, Lord Moylan, referred to demand-responsive transport. It is a solution, obviously, but the department is working hard on some experiments to seek to reduce the per-journey cost of DRT, which is very difficult. It is possible to register demand-responsive services, even in a franchised environment.
The noble Baroness, Lady Randerson, made a number of points; indeed, it was she who gave Cornwall as a very practical example of an extremely rural place that has, by experiment, succeeded in franchising and has a very good network. She referred to the criticism of the Secondary Legislation Scrutiny Committee. As I mentioned in my opening speech, the department is revising its bus franchising guidance in order to set out the process accessibly and in detail. I hope that this will satisfy the committee’s demand.
The noble Baroness, Lady Randerson, questioned the capacity of local transport authorities to do this job in rather more balanced terms than the noble Lord, Lord Moylan, did. The department recognises that active support is needed for local authorities that wish to franchise.
I draw both noble Lords’ attention to the Bus Centre of Excellence, which is funded by the Department for Transport and supported by the Chartered Institution of Highways and Transportation. The noble Lord, Lord Moylan, referred to my knowledge of this process as it applies to London. He will probably be very pleased to learn that the Bus Centre of Excellence is chaired by none other than Leon Daniels, who ran surface transport in Transport for London for seven years, I think, and has an intimate knowledge of how franchising works in London. Moreover, since leaving, he has got a very good knowledge of how it might work in the rest of England.
The noble Baroness referred to the impact of legislation and to the local authorities who have successfully continued to run their own in-house bus companies when many were disposed of. She is absolutely right that places such as Reading, Blackpool and Nottingham are good examples of where arm’s-length local authority companies have delivered very successful bus services. The Government intend for that route to be open to local authorities who wish to use it; it will be part of the scope of the buses Bill. It is right to offer local authorities a real choice about how they deliver their local bus services.
Lord Grayling (Con)
Will the Minister allow me to probe that? The Red Book shows that the Department for Transport has probably had the worst settlement in the Budget, with barely an increase in either capital or revenue budgets taking place, so is this new money?
Lord Hendy (Lab)
I am citing sums which are available in 2025-26. I disagree with the noble Lord in conceptual terms that it is the worst settlement for years, to paraphrase him. It is a very good settlement, bearing in mind the state of the national finances. Indeed, in real terms, local government support has gone up by 3.2%. My point is that there is enough money here to support local bus services in local transport authorities in whatever way they want to provide them, and this statutory instrument allows them to provide them in more ways than they currently can. Also, as I just said about Manchester, and as I would say about a consistent network anywhere in towns and cities in Britain, if it is provided consistently and planned rationally, revenue will go up and that virtuous circle will enable more provision.
I hope that I have answered all the points that noble Lords made, but if not, I will be delighted to write.
In conclusion, the regulations we are considering give all types of local transport authorities in England, outside London, access to powers to franchise their bus services. This Government’s plan to improve buses starts here. Our next stage of reform will be the introduction of the buses Bill. This legislation will seek to make bus franchising even easier to deliver, devolve funding and improve accessible travel. It will also improve bus services for councils that choose not to franchise. The transformative work the Government are doing will turn the tide by giving communities the opportunity to better control local bus services and have a real say in building local transport networks that work for them.
Animal Welfare (Livestock Exports) Enforcement Regulations 2024.
(2 days, 3 hours ago)
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Baroness Hayman of Ullock
That the Grand Committee do consider the Animal Welfare (Livestock Exports) Enforcement Regulations 2024.
The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Baroness Hayman of Ullock) (Lab)
My Lords, these regulations make provision for enforcing the live exports ban in the Animal Welfare (Livestock Exports) Act 2024. They create a robust and effective enforcement regime that builds on the existing requirements for animal welfare in transport and, importantly, ensures that the burden on industry is minimised.
Although animal welfare is a devolved matter, a joint approach to implementation and enforcement has been agreed with the devolved Governments in Scotland and Wales, as many export journeys begin in one jurisdiction and depart from ports located in another. This instrument therefore applies across England, Scotland and Wales to ensure a uniform, consistent enforcement of the prohibition across Great Britain.
This instrument provides powers to the Animal and Plant Health Agency, as the national regulator for animal welfare during transport, and to local authorities, which are responsible for enforcing it. First, to minimise circumvention of the ban and the need for enforcement action, this instrument provides for strengthened pre-export controls for livestock to be carried out by the Animal and Plant Health Agency. The current controls already require organisers of live animal transport to submit a plan of the journey, including departure and destination as well as rest stops. This plan, known as a journey log, must be submitted to APHA for approval for any long journey to a third country.
The new provisions in this instrument will require organisers of such journeys also to provide evidence of the purpose of their export. APHA will need to satisfy itself that the consignment will not be exported for slaughter or fattening before it approves the journey log, and it can refuse to approve the journey log on that basis. To facilitate this process, we have worked with the national beef, sheep and pig associations and the British Pig Association to establish a system whereby they will be able to assess and verify evidence provided by journey organisers. This system should provide journey organisers with a simple way of providing APHA with the required evidence.
The national associations have provided a similar service to industry for many years to facilitate shipments with P&O Ferries, which has a no-slaughter shipment policy. The industry is, therefore, familiar with the process of working with the national associations; we believe that this will encourage engagement and compliance with the new requirement.
It is important to be clear that the pre-export controls set out in these draft regulations do not apply to horses. We are taking a co-design approach to identifying solutions to prevent horses being exported for slaughter. We are working together with stakeholders, who know their industry best, to find the most effective solution. We expect to present specific measures for horses in a separate instrument for consideration in due course.
Secondly, these regulations provide a range of powers to APHA and local authorities; they are to be used in relation to both livestock and horses should investigative or enforcement action prove necessary. These include the power to serve a hold notice to prevent the movement of animals if an inspector suspects that they may be exported for slaughter or fattening. They also include a power of entry and inspection to premises, including vehicles, vessels and dwellings, where inspectors believe an offence is being, has been or is about to be committed, or where there is believed to be evidence of an offence on the premises. This includes a power of entry to private dwellings, subject to obtaining a warrant.
Exporters of livestock and horses will be required to retain records relating to the export of those animals for three years, which must be provided to an inspector on request. It will be an offence to fail to keep these records, to fail to comply with a hold notice or to obstruct an inspector. The penalty for these offences would be an unlimited fine in England and Wales or, in Scotland, a fine limited to level 5 on the standard scale.
These regulations provide the Animal and Plant Health Agency with the power to suspend or revoke a transporter authorisation if there is evidence of non-compliance with the live exports ban. Such decisions may be appealed, first through reconsideration by the Animal and Plant Health Agency then, if unsuccessful, in the relevant First-tier Tribunal.
We are taking a risk-based approach to regulating trade to ensure that the burden on industry is minimised while preventing circumvention of the ban and so minimising offending levels. This instrument is essential to ensure that we can effectively enforce this important animal welfare measure.
Baroness McIntosh of Pickering (Con)
My Lords, I welcome the regulations before us. I welcome the Minister to her position and thank her for setting them out.
We will not rehearse all the arguments we had in the debate on the Bill, but I welcome the fact that horses are not covered. I am sure that pony clubs across England, Wales, Scotland and Northern Ireland will be extremely happy to hear that. When does the Minister think she will be in a position to come back to the Committee to explain the position on horses and how it relates to the tripartite agreement?
I have a number of questions that reflect my concerns. I welcome the noble Baroness, Lady Rawlings, to her place; I think she is going to speak in a later debate. She will recall all the excitement around Brightlingsea, which was in my Euro constituency at the time, when one of the first incidents of live animals for export came to my attention. Of course, the cases have been small in number and heavily regulated by the EU and our own domestic regulations.
Paragraph 6.1 of the Explanatory Memorandum states that the regulations, certainly in England,
“will usually be enforced by the local authority”.
Has the Minister’s department done an impact assessment on the cost implications for local authorities and their resources, bearing in mind that we are well aware of the pressures on local authority budgets and resources at this time?
I regret that this is a unilateral measure and is not being imposed by our former partners in our erstwhile membership of the European Union. There is meant to be a legitimate trade in breeding stock and stock for racing. Obviously, it is excluded at the moment because of the prevalence of bluetongue disease. The last time we debated this, which was round about the time before the Bill gained Royal Assent, my understanding was that there were as yet no facilities to allow this practice to happen. This is a legitimate and very lucrative trade, and it is a source of great concern in the farming community that it will still not be permitted once we get over—in due course, I hope—the threat of bluetongue disease.
I perfectly accept that the Minister might not be able to respond today, but could she give us a written reply on where we are with the facilities? They have to be paid for. I understand that they could potentially be at Harwich, in my former Euro-constituency; they could be elsewhere, for example at Dover, but at the moment this is a very serious gap in a legitimate trade. Although it is not necessarily covered by the remit of these regulations, it is a great loss of earnings to those who ply that trade.
Lord Trees (CB)
My Lords, I welcome these regulations, which enforce and extend measures in the Animal Welfare (Livestock Exports) Act, which was passed earlier this year, to prohibit the export of certain animals for fattening or slaughter from or through Great Britain to countries outside the British Isles. These geographical restrictions are very precise and important; we will come to that in a minute.
I note that the Act has no restriction on export for breeding purposes and did not include poultry. Both of those exemptions are fully justified and remain, although, as the noble Baroness, Lady McIntosh, alluded to, there are problems with exporting live breeding mammals. I also note, as she has done, that the original Act included equids but the regulations under discussion do not. I repeat the question: when might consideration be given to having equivalent regulations for equids? Although I do not think that a functioning ferry for horses is working at the minute, the export of live horses for slaughter is something that potentially concerns a lot of veterinary and animal welfare bodies.
I further note that, because of the present occurrence of bluetongue in England, the movement of all live ruminants to Northern Ireland from England is currently suspended. We hope that that will not be indefinite, of course.
The original Act allowed movement for slaughter and fattening to Northern Ireland as part of the UK. Since there is, under EU jurisdiction, free movement of animals from Northern Ireland to the Irish Republic and to the EU beyond that, this is a potential loophole that could be exploited; like others, I drew noble Lords’ attention to it in the debate on the original Bill in February. This movement to Northern Ireland was and is subject to certain conditions, including direct movement to either an abattoir or a farm, at which there should be a standstill on movement for at least 30 days. However, unscrupulous persons could move animals after standstill, or even before that, to the Irish Republic then onwards to anywhere in the EU, perhaps even to north Africa.
Given the scale of movements between Northern Ireland and the Irish Republic—the figures I have suggest that, in 2022, 337,000 sheep were moved between Northern Ireland and the Irish Republic for fattening and slaughter—it is clearly possible that a substantial number of animals might be legally moved, ultimately for slaughter, into the EU or beyond by unscrupulous persons. So, again, I ask: to what extent will we be able to monitor those movements to try to detect whether there are illegal movements within that traffic?
I welcome the fact that the current regulations appear to try to close this loophole by requiring the exporter in Great Britain to submit evidence of the purpose of export to the APHA before the journey log can be approved. The APHA must be satisfied that the animals will not be exported for fattening and slaughter before movement is approved, and it will have the power to require supplementary evidence demonstrating that. This is a very welcome measure; I congratulate the Government on introducing it.
Lastly, do His Majesty’s Government have any plans to review movement regulations in the UK, now that we are no longer bound by EU rules? We all acknowledge that animal welfare can be compromised by long-distance live transport. As well as the total distance travelled, the frequency of loading and unloading is a hazardous procedure that can give rise to injury and welfare problems. The movement of sheep within the UK can involve very long journeys, for example from Caithness to Cornwall, and the normal rearing process for sheep involves frequent long-distance movements between owners. Are His Majesty’s Government satisfied that the current rules and regulations with regard to journey times and transport conditions within the UK are appropriate? Having said all that, I very much welcome these regulations on livestock export.
Lord Elliott of Ballinamallard (UUP)
My Lords, I thank noble Lords for giving me the opportunity to speak here. I welcome the Minister to her place. I declare an interest as a farmer in Northern Ireland; we heard some mention of Northern Ireland. I suppose I have a few queries around these regulations.
One of my concerns is how it will be managed, with animal welfare being a devolved issue in both Scotland and Wales. Will that cause any complications with these regulations, because quite often we find that devolved institutions are very precious and protective of their own rights? I am just concerned that it will fall between two stools.
The noble Baroness, Lady McIntosh, has already asked whether the farmer or haulier will be responsible when there is a check and an inspector looks at the issues.
I am also curious about journey log records. The regulations mention applicable guidance that will focus on changes to the application process for journey logs, especially the need to provide corroborating evidence on the purpose of the export. I am wondering what level of evidence will be required to corroborate that with the journey log, because quite often that can be manipulated. We have heard some instances of concern around export to Northern Ireland and how that may provide extended journeys that are not covered within the legislation.
The next point I am curious about is animals that are being transported from Northern Ireland to Great Britain; will they be required to have exactly the same journey logs? Will the same record-keeping system be required for them and will the corroborating evidence be the same as that required in other parts of Great Britain?
Those are just a few of the queries that I have on these regulations; I know that the debate on the main legislation has already taken place. I just have some concerns that we may find that some issues drop through loopholes and may not be fully accountable to the authorities that look over the regulations.
Lord de Clifford (CB)
My Lords, I also welcome this statutory instrument and the detail of it. A lot of my points have already been expressed by the noble Baroness, Lady McIntosh, and the noble Lord, Lord Trees. It is certainly very important from a farming point of view—I represent vets who work with farmers—and on the ability to export breeding stock in the long run, and with all respect to the bluetongue outbreak.
I also note that the equestrian side of it needs to be addressed in due course. We welcome that, so I will not go into any more detail on that.
Live exports to Northern Ireland were just addressed by the noble Lord. The time limit for exports of sheep et cetera from Scotland to Northern Ireland has been extended, because there is no direct ferry route from Scotland to Northern Ireland due to the ferry regulations. Is Defra going to monitor the number of live exports from England to Northern Ireland, and likewise from Northern Ireland back to England? That is important to ensure the numbers are tracked correctly.
Furthermore, when animals arrive in Northern Ireland, who is going to monitor what is in place, as requested by the RSPCA? Is Defra going to monitor that, as well as the Department of Agriculture, Environment and Rural Affairs in Northern Ireland?
I will further emphasise the final point of the noble Lord, Lord Trees: we would welcome, for improved animal welfare, a review of the current journey times within Great Britain.
Baroness Rawlings (Con)
My Lords, following the very good speech of my noble friend Lady McIntosh, I will say that animal welfare was the most debated subject when we were both in the European Parliament together. I wonder whether we are still abiding by all EU rules now.
Baroness Bakewell of Hardington Mandeville (LD)
My Lords, I thank the Minister for her introduction. It is a pleasure to support this SI. Since the noble Baroness, Lady Fookes, introduced this into the Chamber by way of a Private Member’s Bill, we have all been anticipating that it would be implemented as soon as possible. The instrument itself and the Explanatory Memorandum are clear as to what is to happen and who will perform the duties of enforcement. Much of it will fall on local authorities which, as we all know, are struggling to make their budgets balance. Can the Minister say whether local authorities will be recompensed for this additional work? The noble Baroness, Lady McIntosh of Pickering, also raised this.
No one has any doubt that animals should not be transported live to Europe or other countries specifically for the purpose of slaughter. It is unnecessary to have transported animals suffering cramped conditions, often with no access to water and food, and for disproportionately long periods. Animals which are going to slaughter should be dispatched as near to their living quarters as possible. The distress that transportation causes should be kept to a minimum and access to abattoirs should be within close proximity. Other noble Lords have referred to this.
I have received a brief from the RSPCA, which has asked two questions. First, how does the instrument ensure that transporting live animals for slaughter or further fattening, including horses, is not authorised to Northern Ireland from England, if they would then be re-exported to the Republic of Ireland? The noble Lords, Lord Trees, Lord Elliott and Lord de Clifford, also referred to this matter. Secondly, the RSPCA asks: when will the Government come forward with proposals on improving the rules on the internal transportation of live animals in England, now that it is no longer limited by the transport times in Regulation 1/2005? I would be grateful if the Minister could provide answers to these two questions.
I also have a question of my own relating to the date of implementation for this SI. In the EM, at paragraph 5.2, we learn that Royal Assent was granted for the Act on 20 May of this year. Then in paragraph 5.3 we learn that the prohibition on transportation of live animals from and through the UK
“came into force on 22 July 2024”.
Again, that is this year. However, in the SI itself, Regulation 1(b) states—I am sorry that this is very nerdy —that the regulations
“come into force on 1st January 2025”.
I would be grateful if the Minister could clarify whether the ban is already in place, as from 22 July, or whether animals will have to wait until 1 January 2025 to be totally protected. I realise that no animals have been exported for slaughter since 2020, but it is important that the dates on the legislation are accurate.
I look forward to the SI which will come forward to cover horses, as referred to by the noble Baroness, Lady McIntosh of Pickering. Apart from these queries, I totally support this vital SI and the sooner that it is enacted, the better.
The Earl of Effingham (Con)
My Lords, His Majesty’s Official Opposition welcome the Government’s Animal Welfare (Livestock Exports) Enforcement Regulations 2024. In government we took the issue of animal welfare very seriously, as evidenced by the passing of the Act to which this statutory instrument refers. The Animal Welfare (Livestock Exports) Act 2024 prevented the exportation of livestock for the sole purpose of slaughter or preparation for slaughter and received cross-party support.
We are pleased that the current Government continue to focus on this area by implementing the practical steps to ensure that the correct people are held responsible. Increasing the necessary requirements of evidence submission will allow inspectors to examine more closely the intentions of a transporter and ensure that there is sufficient evidence to indicate that an animal is not being taken to slaughter.
I thank the Minister for bringing this statutory instrument forward. We are satisfied that this is a sensible approach and have no issues to raise.
Baroness Hayman of Ullock (Lab)
I thank all noble Lords who have contributed to today’s debate. It has been a good debate and I am pleased that so many noble Lords have taken part in it, because this is an important piece of legislation and we were very pleased when in opposition to support the Bill through Parliament to becoming an Act.
As I said, the instrument contains a proportionate set of powers necessary for the Animal and Plant Health Agency and local authorities to enforce the live exports ban effectively. Without these powers to carry out checks and investigations and take enforcement action, there is a risk that the ban could be undermined.
I will check to make sure that I have answered the questions that were asked properly. If I have not, I will get back to noble Lords. There were some questions around equines—horses—from the noble Baroness, Lady McIntosh of Pickering, and the noble Lord, Lord Trees. The noble Lord, Lord de Clifford, also mentioned horses. One question was around the delay in bringing in pre-export controls for equines. I am sure that noble Lords are aware that equines are currently exported for multiple purposes ranging from bloodstock moves to leisure activities. They can be privately or commercially transported and fall under numerous industry bodies or none at all. Registered equines are not subject to journey log controls, so at present there is no control point at which intervention by the regulator can occur to stop an export movement that might contravene the ban.
Baroness Hayman of Ullock (Lab)
My Lords, I was addressing some of the questions around equines. Due to the more complex nature of export movements of equines, we are taking a codesign approach to this issue, working together with stakeholders that know the industry best to find the most effective solution.
Questions were asked about the risks in delaying the controls. It is important that we take the necessary time to get this right. We want to ensure that equines will not be exported for slaughter but, at the same time, that the export of equines for legitimate purposes must not be impeded. We are working closely with industry to find that balance.
I was asked about the journey logs for registered horses. Again, we are working together with stakeholders to find the best approach to implementing the ban before we lay the draft enforcement regulations before Parliament, because we want to achieve a balance between ensuring that the ban is implemented effectively while minimising any burden on legitimate risks.
The noble Baroness, Lady McIntosh of Pickering, asked about the Government’s view on the live animal BCP issue. Clearly this is a commercial issue but we are sympathetic to the concerns of the businesses involved. Noble Lords may be interested to know that I have had a series of round tables with different groups of stakeholders to discuss the effectiveness of BCPs, how they work now and how to approach their future operability. We have a lot of feedback and information from stakeholders on this issue as part of tracking its progress, and are meeting with organisations such as the National Farmers’ Union that have a specific interest in live exports.
On enforcement, the noble Baroness, Lady McIntosh, asked about local authorities. Due to the robust pre-export controls and regulatory tools that will be in place, we anticipate very low offending rates. We have been working closely with local authorities to develop the right approach, and they agreed that enforcement action in relation to a live exports ban would have minimal impact on their finances.
The noble Baroness, Lady McIntosh, also asked about the capacity of abattoirs. As she rightly said, there have been no livestock exports for slaughter or fattening from Great Britain to the EU since the beginning of 2021. Prior to this, the number of animals exported for slaughter represented a very small proportion of the total number of animals processed in the UK every year. For example, in 2020, when we had issues with Covid and it stopped, slaughter exports from Great Britain to the EU accounted for less than 0.2% of sheep produced in the UK and around 0.02% of all livestock slaughtered in the UK. Slaughterhouse capacity has been able to absorb the additional supply of animals that may have previously been exported for slaughter, so we do not believe that any further steps are needed to ensure capacity.
The noble Baroness, Lady McIntosh, also asked about advice. Obviously, it is important that livestock exporters are made aware of any new requirements, and the Animal and Plant Health Agency will contact all authorised transporters to inform them of the new requirements before they are due to come into force. We are also engaging with the relevant stakeholder organisations.
I was asked—again, it might well have been by the noble Baroness, Lady McIntosh, who asked quite a few questions—about who is responsible for the hold notice. The transporter, or person responsible, has to comply. If they fail to do so, APHA can arrange for livestock to be returned to the place of departure or placed in suitable accommodation.
The noble Lord, Lord Trees, asked whether we would consider extending a live export ban to the whole of the UK, and other noble Lords asked about Northern Ireland. The live export ban does not apply to Northern Ireland. This is to ensure that farmers in Northern Ireland have unfettered access to both the UK and Republic of Ireland markets. Farmers in Northern Ireland routinely move animals to the Republic of Ireland for slaughter and fattening. I reassure noble Lords that I meet regularly with DAERA, and I have met the Ulster Farmers’ Union a couple of times, so we are very aware of the different pressures on transporting livestock in Northern Ireland and into the Republic.
The noble Lord, Lord Trees, and the noble Baroness, Lady Bakewell, asked about the importance of improving transportation of animals within the country—not going beyond. We need to monitor that very carefully, because animal welfare during any transport is obviously incredibly important. As a Government, we have said that we are committed to improving animal welfare. That is one reason why we are bringing in these regulations very early; we think it is important. At the moment, I am reviewing the animal welfare strategy more broadly and I hope to capture issues such as this within that broader strategy review.
The noble Baroness, Lady McIntosh, asked why records have to be kept for three years. The reason is that this is consistent with existing laws: at the moment, journey logs are required to be retained for three years.
The noble Lord, Lord Elliott, asked about the detail of assessment criteria. The assessment criteria have been developed and agreed with Defra, using the national associations’ knowledge of legitimate priming and breeding exports. This includes checking the pedigree status of animals as well as certain health requirements, such as sheep coming from an accredited scrapie-free flock. We do not intend to publish the assessment criteria, but guidance will be provided to journey organisers and transporters.
The noble Baroness, Lady Bakewell, asked for clarification about whether the ban is in force and how it works with this SI. The ban is already in force. The SI is just to enable the enforcement of the ban that came in previously, as she pointed out.
The noble Baroness, Lady Rawlings, asked about EU rules applying in GB. They do not apply. We have assimilated regulations and continue to protect animals in transport.
Finally, I thank the noble Earl, Lord Effingham, for his very kind words of support. It is important to recognise that the previous Government brought this legislation in. We strongly supported it and it is good to be working cross-party to ensure that it is now enforced effectively. We are committed to upholding the highest standards when it comes to animal welfare, and I am very pleased that we can now put forward these provisions to ensure that the ban on live exports for slaughter is implemented and enforced effectively.
Ivory Act 2018 (Meaning of “Ivory” and Miscellaneous Amendments) Regulations 2024
(2 days, 3 hours ago)
Grand CommitteeRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Baroness Hayman of Ullock
That the Grand Committee do consider the Ivory Act 2018 (Meaning of “Ivory” and Miscellaneous Amendments) Regulations 2024.
The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Baroness Hayman of Ullock) (Lab)
My Lords, this instrument amends the Ivory Act 2018 to extend the prohibition on dealing in ivory from an elephant to include ivory from the following four magnificent species: common hippopotamus, killer whale, narwhal and sperm whale. Walrus was included in the original consultation. However, the SI does not include walrus as it will continue to be protected under existing regulations on trade in seal products.
The UK is committed to protecting these species, whose conservation status may be threatened by the trade in their ivory. All four species are listed under the Convention on International Trade in Endangered Species of Wild Fauna and Flora, which regulates their trade internationally. Hippopotamus and sperm whale are listed as vulnerable on the International Union for the Conservation of Nature red list.
The objective of this instrument is to help conserve populations of the four additional species. The Act will prohibit commercial activities concerning trade in their ivories in the UK. This will prevent transactions involving items made of ivory from these species contributing to markets, which then create a demand for ivory, driving poaching and the illegal trade.
Extending the ban to these species will also make compliance and enforcement of the Act simpler and more effective, and will reduce opportunities for laundering ivory. It sends a strong signal that ivory should not be seen as a commodity for financial gain or as a status symbol.
This instrument also amends the Schedule to the Ivory Prohibitions (Exemptions) (Process and Procedure) Regulations 2022 on prescribed institutions to correct the names of some of the institutions prescribed under the Act. Lastly, it amends the Ivory Prohibition (Civil Sanctions) Regulations 2022 to make consistent the references to service of notices relating to civil sanctions. I beg to move.
Lord Carrington of Fulham (Con)
My Lords, I start by declaring my interests, as in the register. I am the president of the British Antique Dealers’ Association, which is an honorary and, sadly, unpaid position. However, I am of course speaking on my own behalf, not on behalf of any outside body.
I want to take this opportunity to review a little of the relationship that this statutory instrument has with the 2018 Act, as well as the way in which the two operate together. I hope that the Grand Committee will bear with me in this. I should start by saying that I hope we are all in favour of preserving wildlife, particularly endangered species and those threatened with extinction. We should all, therefore, be in favour of improving the Ivory Act so that it helps to achieve that aim.
The concern that some of us have about the Ivory Act, had when that Act passed through your Lordships’ House in 2018 and now have about this statutory instrument is not about their noble objectives. It is about whether they work to achieve their aspirations, the all-encompassing way in which both the Act and the SI are drafted and the unintended consequences that they lead to, not least the destruction of items made of or containing ivory above the de minimis limit—in other words, low-value items of historic interest and often of great beauty, but not of museum quality, being put in landfill because they cannot be sold.
The statutory instrument extends the definition of ivory to include whale teeth and narwhal tusks. I do not have a problem with banning the sale of modern products made from whale teeth and narwhal tusks, although I do not think there is much evidence that there is any market for modern items made from whale or narwhal.
Historically, whale teeth were used by sailors to make scrimshaw in one form or another. Whale scrimshaw can be a tooth, which has patterns or pictures inscribed into it using a sailor’s knife or another sharp object. They are of great historic interest because they shed light on the often difficult and miserable lives of sailors in the 18th and early 19th centuries. They are of particular value because of their being works of art made by the poor and working classes, so little of which has come down to us as compared to the art of the aristocracy and the upper classes. They are folk art. They are not of great monetary value. A good early example will typically sell for £100 to £200 at auction. They can be faked but rarely are because they cannot be sold for enough to justify the work that goes into them. In any case, modern scrimshaw is easily distinguished from old.
Narwhal tusks are rarely worked. Historically, they were mounted and displayed, sometimes whimsically as unicorn horns. Perhaps the most famous example is in Fishmongers’ Hall, used as a weapon to stop the terrorist on London Bridge in 2019.
The Ivory Act allows a limited trade in some antique objects containing ivory, hence the Act’s exemptions—including one permitting trade in registered antiques with less than 10% ivory content. I understand that, under this exemption, some 19,000 elephant ivory items and portrait miniatures painted on ivory have now been registered under the Act. A further 325 items of outstandingly high historical value have exemption certificates.
However, in stark contrast to elephant ivory, virtually all old objects in this statutory instrument are solid ivory, so scrimshaw cannot benefit at all from the Act’s de minimis exemptions. Nor are any of these items likely to be granted an exemption certificate for being of outstandingly high historical value, since they are folk art. So, for scrimshaw and old ethnographic objects, this statutory instrument means a 100% prohibition on sales to antique collectors—zero trade. If they cannot be sold, they will inevitably end up in landfill in time.
Why are we doing this? There is virtually no import/export trade in whale teeth or narwhal tusks. For example, in 2022, there were no commercial imports of sperm whale teeth, while just two teeth were exported. Narwhal are not on the International Union for Conservation of Nature’s endangered list.
The major concern about the way the Act and the SI work comes down to the impact on historical objects of beauty and artistic merit made of ivory. We debated extensively in Committee on the now Act whether antique ivory objects had to be destroyed to stop modern ivory knick-knacks being made in China and Vietnam. The market in Asia is for modern ivory items, often from newly poached elephant tusks, not for antiques.
One of the claims made to justify the draconian impact of the Act and statutory instrument is that it is impossible to tell whether the ivory came from an animal killed 100, 200 or 300 years ago or from one killed yesterday. However, now that we have experience of the working of the Act, it is clear that museum experts in antiques and specialists in the antiques trade can prove the age of ivory objects with or without using simple scientific tests. Indeed, the Act itself set up panels of experts to determine whether an ivory artefact of high artistic and historic importance was genuine and worth preserving. These panels seem to have no trouble distinguishing between old and new ivory. Now that it is well established that it is possible to tell the difference between old and new ivory, why can we not widen this vetting by a panel of experts to other ivory objects? It should be possible to allow them to be sold through licensed dealers and auction houses, for example.
The other argument used to justify the Act and this statutory instrument is the more nebulous one: it is all about the United Kingdom’s soft power—that is, if we crack down on the sale of ivory, Asian countries will wake up to their responsibilities to save endangered species and follow the UK’s lead, apparently not having realised that they should do so until we showed them the way. The view that we are the moral leaders of the world seems weird, patronising and possibly colonial.
How has our soft power worked? It has not had much influence on the European Union, which bans the import and export of ivory but allows it to be traded within the EU. That is very different from the UK, where the trade is completely banned. Dare I say, as a Conservative, that the EU’s response is much more logical and sensible than ours. As far as I can tell, ivory is also still freely available in much of Asia.
That brings me to a few questions for the Minister. First, what assessment have His Majesty’s Government made of the impact of the Ivory Act on the poaching of elephants in Africa? Secondly, which countries have followed the UK in introducing a total ban on the trading of ivory items? Thirdly, what assessment have His Majesty’s Government made of the number, type and value of objects containing ivory that have been destroyed as a consequence of the Act? Finally, what assessment have His Majesty’s Government made of the number of narwhal tusks and whale teeth imported into and exported out of the UK in recent years?
I know that this SI will pass but I hope that we can have a Government who understand our heritage in beautiful objects created down the ages, redolent of social and artistic history; and that such a Government can realise that saving the elephant, the whale and the narwhal can be done successfully without the destruction of hundreds of years of historic and beautiful art.
Lord Trees (CB)
My Lords, the Ivory Act 2018 and subsequent statutory instruments pertained only to ivory of elephant origin. Although those instruments covered the vast majority of ivory products, these new regulations extend the meaning of ivory to include the “tusk or tooth” of a hippopotamus, killer whale, narwhal or sperm whale. These species are listed under CITES, and although they compromise only a small amount of the broad definition of “ivory”, the amending regulations limit opportunities for laundering ivory under the guise of another species that is not prohibited. The regulations also mitigate the risk of poaching displacement—a lovely word I had not come across but which was in the Explanatory Memorandum—to non-elephant ivory-bearing species.
The current legislation places the burden of proof on anyone accused of potential ivory trading to prove that the ivory is not from a prohibited species. It is very useful that specific institutions are named as able to provide expert advice to the Secretary of State. I wonder whether that could partly satisfy some of the noble Lord’s concerns. I note that walrus products are already covered under the assimilated EU regulations, as the Minister mentioned.
The regulations sensitively recognise that certain indigenous communities, such as the Inuit, rely on subsistence hunting of some of these species for food and derive part of their income from the sale of ivory products as a by-product of this hunting. As I understand it, these regulations would not prevent UK tourists acquiring small amounts of ivory items made from the species covered by these regulations from these communities and bringing them back as personal possessions under CITES regulations—that is, with a permit and declaration at customs—but will prevent any degree of commercial trade and onward sale in the secondary ivory market in the UK. Can the Minister confirm my understanding of this permitted trade with indigenous communities?
The miscellaneous amendments in the instrument will further strengthen the protection of endangered species around the world. I welcome them, although I have some sympathy with the noble Lord’s concerns.
Baroness Rawlings (Con)
My Lords, I very much concur with the remarks of my noble friend Lord Carrington of Fulham. I declare my interests as listed in the register.
I will comment on the detrimental impact that extending the Ivory Act will have on the formation of collections of historical objects. Most museum collections in this country, whether quirky municipal ones or great national ones, were formed as a result of the philanthropy of community-spirited collectors. Those collectors may have spent their lives—and, I hasten to add, their own money—being passionate about and studying a particular branch of history, and acquiring historical artefacts or works of art to reflect their passion. After decades of forming a collection they may have wanted the public to have access to it, so they gave or sold it to their local museum.
One such example of this is the Scott Polar Research Institute in Cambridge, which has a scrimshaw collection formed by Surgeon Captain AWB Livesey RN. The collection comprises etched sperm whale teeth from the first half of the 19th century, depicting subjects such as naval engagements from the Napoleonic Wars, the War of 1812 between Britain and America, the bombardment of Algiers to release Christian slaves in 1816, and the struggle of many countries in central and South America to achieve independence from Spanish rule. All these etchings were created from the perspective of the ordinary sailor, armed with a sharp blade and some lamp soot. Had Captain Livesey been alive today, this statutory instrument would have prevented him forming such a remarkable collection.
Baroness Bakewell of Hardington Mandeville (LD)
My Lords, I thank the Minister for introducing this SI. It is right that the common hippopotamus, the killer whale, the narwhal and the sperm whale are to be included in the category of protection for their ivory. I have to say that it has taken a long time to reach this point. In 2018, when we were discussing the Ivory Bill, the Minister’s predecessor on the Labour Benches, the noble Baroness, Lady Jones of Whitchurch, who I am delighted to see in her place, was tireless in trying to persuade the Government to include narwhals and other species in the categories to be classed as having ivory, but to no avail. The then Conservative Government were content to leave it at elephant ivory. The passage of the Bill was not easy, with the antique ivory lobby pressing hard for exclusions to the Bill. I began to wonder whether we would ever get the ban on elephant ivory through, but in the end we succeeded.
I realise that the noble Lord, Lord Carrington, will not share my view. He referred to the destruction of items made of ivory that are of no antique value but are sent to landfill. He also referred to scrimshaw items made by sailors. I have some sympathy with his view on these items and I look forward to the Minister’s answer to his question about changing the policy on destroying ivory.
The noble Baroness, Lady Rawlings, referred to historical antique ivory collections that may have been donated to museums and form part of history. This is a very valid argument. I note that a public consultation that took place between 17 July and 11 September 2021 overwhelmingly supported the measures we have before us.
Paragraph 7.1 of the EM states:
“Walrus ivory is not included in the extension of the Act under this instrument because it will remain prohibited subject to certain narrow exemptions under Council Regulation (EC) No 1007/2009”,
which relates to the Windsor Framework. The Minister referred to this exemption, but I am slightly confused by it and would be grateful if she could explain exactly what it means in terms of protection for the walrus species.
I am reassured that items containing ivory or made of ivory will be protected. I am also pleased that the burden of proof will lie with any accused to prove that the item is not ivory from an elephant or from the other four species covered in the SI. Scientific tests are to be used to determine the exact origin of the article and the age of the antique artefacts.
I welcome that this debate has covered both sides of the argument and we have heard opposing views. Nevertheless, I fully support this SI.
The Earl of Effingham (Con)
My Lords, His Majesty’s Official Opposition are in favour of any measures to preserve the rich tapestry of species on this planet, particularly those threatened with extinction. However, we have some concerns, not with the objective of this SI and the Ivory Act more broadly, but with some of the consequences of its drafting.
The SI extends the definition of ivory to include whale teeth and narwhal tusks. Although we agree with the banning of selling of modern items manufactured from these sources, there is no modern market for whale teeth or narwhal tusks. Old pieces of art, such as inscribed sailor’s knives or mounted narwhal tusks, will fall foul of these regulations and will have to be landfilled.
As we have heard already from my noble friends Lady Rawlings and Lord Carrington, there is virtually no import or export trade in whale teeth or narwhal tusks. In 2022, there were no commercial imports of sperm whale teeth, and just two teeth were exported. Narwhals are not on the International Union for Conservation of Nature’s endangered list.
While it could be argued that this legislation is an important aspect of our soft power, it is debatable whether this soft power has worked. It has not had much influence on the EU, which bans the import and export of ivory but allows it to be traded within the EU. Will the Minister please clarify to the Committee what outcomes she foresees from this decision? Will she outline why these measures have been implemented and say whether she can see that they may have unforeseen and unintended consequences?
Baroness Hayman of Ullock (Lab)
My Lords, I thank all noble Lords for their contributions to the debate and for raising important points. As described earlier, extending the Act to these four species demonstrates UK leadership in support of international conservation efforts, setting an example at home to encourage similar actions globally. It makes the existing ban more effective and adds protections to four species that will complement those already in place internationally under the Convention on International Trade in Endangered Species.
I was involved with this the first time around, back in 2018, and, as the noble Baroness, Lady Bakewell of Hardington Mandeville, said, it seems to have taken an awful long time to get here. I wonder whether, like me, she had a stuffed narwhal on her desk—which my grandchildren have now chosen to play with. From our perspective, it is good to see these regulations in front of us.
This measure is part of a comprehensive package of UK leadership to tackle the illegal wildlife trade and reduce poverty, including through our Illegal Wildlife Trade Challenge Fund, which has allocated £57 million to 173 projects across 60 countries. These projects are reducing demand for illegal wildlife products, strengthening law enforcement, establishing effective legal frameworks and promoting sustainable livelihoods.
I turn to answer some of the questions, and hope that we do not have another vote in the middle this time. I will look first at the consultation and stakeholder engagement that took place ahead of this. There was a call for evidence in 2019 and a public consultation from 17 July to 11 September 2021 on extending the Act to other species. The consultation received 997 responses and a clear majority supported an extension to these species. The previous Government published their response to the consultation in May last year.
There is a conservation risk to each species as exhaustible natural resources, which includes the trade in their ivory, both legal and illegal, and how this relates to their conservation status and other threats that they face. There was a clear demonstration in the proportion of respondents who supported this option and the comments submitted that commercial exploitation of species that are endangered or accepted as being in need of protection from the threat posed by trade in their parts violates public morality. So that was the consultation and its outcomes.
The noble Lord, Lord Carrington, asked specific questions around the effectiveness of the Act. One was how many elephants had been saved to date. This is a cross-cutting policy, so it is not possible to say what impact the Ivory Act alone has had. For example, the Illegal Wildlife Trade Challenge Fund is a grant scheme that funds actions to tackle illegal wildlife and poverty reduction in developing countries. These projects contribute to reducing the demand for illegal wildlife products, strengthening enforcement and establishing effective legal frameworks, and promoting sustainable livelihoods through innovative approaches, partnerships and evidence-based interventions that protect endangered species, including elephants. So I cannot be specific, but it does play a role.
The noble Baroness, Lady Bakewell, asked for more information about why we are not extending it to walrus. As I said, walrus were included in the original consultation but are not now, because they continue to be protected under existing regulations on the trade in seal products. Under these regulations, seal products, including walrus ivory, can be imported and placed on the UK market for sale only in very limited circumstances and subject to strict conditions. You can bring seal products to Great Britain and sell them only if they qualify under the Inuit and other indigenous communities exemption and have a seal catch certificate. This is an attestation document that proves that the item is exempt and that the seal products are certified as coming from a traditional hunt carried out by the Inuit or other indigenous communities. The hunt must be carried out for and contribute to the subsistence of the community, and must consider the welfare of the animal. I hope that goes some way towards answering the question from the noble Baroness, Lady Rawlings, around the fact that we work with indigenous communities on these pieces of legislation.
Further questions from the noble Lord, Lord Carrington, were to do with trade and why we decided to add these species. The main problem is that international trade in these species needs to be regulated to ensure that it does not threaten the species’ survival. The UK is also a net exporter of ivory from these species, and we are concerned that it fuels global demand and the market for these ivories.
Lord Carrington of Fulham (Con)
The Minister is, I think, getting slightly confused about what I asked. I was not asking whether ivory is being exported; clearly, it is not now, because it is banned. But narwhal tusks are not banned and there is no evidence that they are being exported or imported. Also, the evidence we have is that, in 2022, no sperm whale teeth were imported and two were exported. What I am saying is that, distinct from the ivory market—we can probably dispute that—the products covered specifically by this SI are exported or imported in such small quantities as to have no effect on international trade at all.
Baroness Hayman of Ullock (Lab)
I thank the noble Lord for his comments. I still think that there are issues around the fact that these species are endangered. We should be covering them in existing legislation that could have an impact on them in future. It is important that that is covered.
The noble Lord asked about exemptions, so let me come on to them. If an item is 100% ivory, it can be kept or follow the exemptions in Section 2 of the Act, of which I am sure he is very aware. Several other countries have closed their domestic ivory markets so, again, it is not just the UK looking at this as an action.
I should say that I have some information about narwhal ivory, which has just come through—apologies. In the 10 years between 2009 and 2019, commercial imports and exports of narwhal ivory totalled 33 items, while those of sperm whale ivory totalled 203 items. I hope that helps clarify the matter.
It might be helpful, as this issue came up a bit, for me to remind noble Lords what the exemptions to the ivory ban are. There are five exemptions, which will apply to all species once this instrument has gone through: musical instruments made before 1975 with less than 20% ivory by volume; items made before 3 March 1947 with less than 10% ivory by volume; portrait miniatures made before 1918 with a total surface area of no more than 320 square centimetres—and we have another vote.
Baroness Hayman of Ullock (Lab)
My Lords, I was just going through the exemptions to the Ivory Act and had just finished talking about portrait miniatures. Also exempt are items a qualifying museum intends to buy or hire and items made before 1918 that are of outstandingly high artistic, cultural or historical value. I mention that because it has come up quite a lot during the debate, and for clarification because it is some years since the Act came into play.
The noble Lord, Lord Trees, asked a specific question about people going on holiday, small items and so on. This fits with the question from the noble Baroness, Lady Rawlings, about indigenous peoples. To be clear, the Act bans imports for the purposes of dealing. Individuals who are visiting communities outside the UK can purchase items from them directly and bring them into the UK as personal possessions as long as they meet the requirements under CITES. That provides clarification on that point.
With that, I hope I have answered most questions; I will check and come back to noble Lords if I have not.
The Earl of Effingham (Con)
I think the Minister said that narwhals are an endangered species, but we believe that they are not endangered; there are around 80,000 mature adults in their population. If the Minister could come back to us at some point, it would be much appreciated.
Baroness Hayman of Ullock (Lab)
I clarify that all four species being added to the Act are listed under the Convention on International Trade in Endangered Species of Wild Fauna and Flora. I hope that helps to answer the noble Earl’s question.