Official Controls (Fees and Charges) (Amendment) Regulations 2024

Baroness Bennett of Manor Castle Excerpts

Thursday 18th April 2024 Grand Committee

[Lord Douglas-Miller]

That the Grand Committee do consider the Official Controls (Fees and Charges) (Amendment) Regulations 2024.

Relevant document: 18th Report from the Secondary Legislation Scrutiny Committee (special attention drawn to the instrument)

My Lords, I hope that it will be helpful to your Lordships if I speak to both the Official Controls (Fees and Charges) (Amendment) Regulations 2024 and the Plant Health (Fees) (England) and Official Controls (Frequency of Checks) (Amendment) Regulations 2024 given that they deliver legislation addressing fees for import controls on UK sanitary and phytosanitary goods under the border target operating model.

Turning first to the Official Controls (Fees and Charges) (Amendment) Regulations 2024, these regulations facilitate flexibility in the application of fees and charging requirements for official controls on sanitary and phytosanitary imports arriving in Great Britain. We have designed a global risk-based import model, BTOM, for sanitary and phytosanitary goods, which will deliver a streamlined approach which protects the public and plant and animal health, boosts our economic growth and minimises friction at the border. This instrument enables the necessary fees and charges for official controls, reflecting the new sanitary and phytosanitary border official controls regimes, as published in the border target operating model.

This instrument introduces flexibility on the composition of fees and charges for official controls while maintaining the requirement of cost recovery. This allows for more comprehensive cost recovery and enables the application of risk factors set out in the BTOM to the fees. This instrument changes the duty to charge to a power to charge by extending the circumstances in which charges may be reduced or waived. The implementation of the BTOM model is reliant on the flexible application of risk, the ongoing financial viability of competent authorities and the proportionate financial liability across stakeholders and operators. Changing the duty facilitates this desired flexibility.

This instrument enables a consistent charging model across any government-run border control post in Great Britain. This will be vital once border control post checks on EU imports are introduced to Wales and Scotland to support trade continuity in all our Administrations. Finally, this instrument enables fees and charges to be levied digitally and away from border control posts. Without this legislation, all sanitary and phytosanitary consignments entering Great Britain would be required to visit a border control post to make payments physically. This would be administratively and operationally unworkable, as it would require all consignments to attend a border control post, not just those selected for an inspection, adding time and burdens for hauliers.

Every effort has been made to ensure these fees and charges distribute costs fairly and proportionately for businesses of all sizes and across all sectors while enabling the Government to fulfil their cost recovery obligations. I am pleased to state that the devolved Administrations have given their consent for these regulations to extend across Great Britain. To summarise, this instrument facilitates the implementation of the border target operating model and is necessary to enable fees and charges to fund the new sanitary and phytosanitary border official controls regime.

Moving on to the second instrument, the Plant Health (Fees) (England) and Official Controls (Frequency of Checks) (Amendment) Regulations 2024, these regulations apply a requirement for risk-based import checks on medium-risk goods from the EU, Switzerland and Lichtenstein from 30 April 2024 as published in the border target operating model. This instrument ensures that certain imported goods are not within scope of this charge, including fruit and vegetables that are currently being treated as low-risk goods while risk assessments are being conducted. It also excludes goods entering Great Britain via a listed west coast port.

Changes are also being made to the fees legislation to reflect the risk-based level of identity, as well as physical and documentary checks on medium-risk goods, to ensure that the cost of plant health services are recovered. Fees are also updated for certain goods from non-EU countries to account for changes in the frequency of checks. Finally, two minor typographical errors regarding import checks are being corrected in the fees legislation.

Checks are currently carried out on high-risk consignments of plants, plant products and other objects imported into Great Britain from the EU, Switzerland and Liechtenstein. Checks are also being conducted on regulated goods imported from all other third countries, on a risk basis. GB plant health services carry out these checks and charge for these services accordingly to prevent the introduction and spread of organisms harmful to plants and plant products. This instrument therefore removes the temporary easement that applied after EU exit from import checks of medium-risk plants and plant products imported from the EU, Switzerland and Liechtenstein. These goods will become subject to risk-based checks and the associated fees.

I am pleased to state that the devolved Administrations have given their consent for these regulations to extend across Great Britain—except for Regulations 2 and 3, which relate to fees and apply to England only. Welsh and Scottish Government Ministers laid their equivalent fees legislation earlier this year.

In closing, these regulations ensure that checks are in place from 30 April 2024 to mitigate against any biosecurity risks from certain goods from the EU, Switzerland and Liechtenstein. I emphasise that protecting our biosecurity is of paramount importance. By facilitating the implementation of the border target operating model and enabling fees and charges for the relevant import controls, these instruments enhance the operation of the biosecurity regime of Great Britain.

I hope that noble Lords will support these measures and their objectives. I beg to move.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I feel I should begin by declaring my fellowship, through the Industry and Parliament Trust, of the Horticultural Trades Association, which is the trade association for environmental horticulture. I am sure the Minister knows this but that is what used to be called ornamental horticulture. The Government have not always shown that they know what this refers to, so I make that clarification.

We are talking about a Brexit cost here. That is what is being inflicted. We have spent several years with people looking around and trying to find Brexit benefits but they have been extremely hard to find on the ground. This is a cost and is particularly likely to impact on small and medium-sized enterprises across Britain.

I would like to make a comment about the timing of this debate, on 18 April. These fees are coming in on 30 April and were announced two weeks ago. That is not a great deal of time for businesses to prepare for and understand what is happening, so I must express my concern.

This is even more crucial in the context of environmental horticulture. Now is the worst possible time for this massive change in the industry to happen. There are a few peak weeks for horticulture when people are planting their gardens in spring and looking forward to summer. This measure will hit the sector extremely hard at this moment. The seasonal peak may last for only a few weeks and this is happening in the middle of it. It would seem that it is too late to make any change to that but I hope the Government acknowledge—this is a question for the Minister—that the industry will be taking on a significant cost at this moment. They should be thinking about what kind of compensation and extra support it needs.

It greatly concerns garden centres, nurseries and other suppliers that there could be delays on 30 April and in the week or so afterwards. We have heard many reports of people importing woody plants, shrubs and perennials en masse beforehand. However, it is not possible to do that with bedding plants and many other smaller plants. What arrangements do the Government have in place to provide compensation should there be significant delays at border posts?