Food and Farming (Amendment) (EU Exit) Regulations 2019
Debate between Baroness Byford and Baroness Vere of Norbiton
Baroness Vere of Norbiton (Con)
My Lords, these regulations group elements of four policy regimes: spirit drinks; wines; genetically modified organisms; and agricultural direct payments. The purpose of this statutory instrument is to make purely technical or operability corrections ensuring that these regimes continue to function as intended. These corrections deal with removing or amending references, converting EU procedures to UK procedures and transferring EU functions to the UK. The four policy regimes are dealt with together in a single instrument for the convenience of both Houses. I will cover each in turn.
First, this instrument makes operable the regulation and protection of, and methodology for analysis of, spirit drinks once we exit the EU. The amendments specify protection for the UK’s geographical indications, and this instrument will make the necessary operability amendments to ensure ongoing protection of the US spirit drinks Bourbon whiskey and Tennessee whiskey, following the signing of the UK-US spirit drinks agreement in January. This instrument will also prevent EU 27 spirit drink geographical indications being automatically recognised as protected in the UK after leaving the EU.
With respect to wines, this instrument will amend EU retained law to make it operable from the day of exit. The amendments will allow us to continue to apply or enforce provisions relating to detailed wine-making practices, including the blending and analysis of wine. The absence of these amendments would undermine consumer confidence in wines, damage our trade in and production of wines and impact on the significant contribution the sector makes to the UK economy.
The amendments for spirits, together with those for wine, are part of establishing geographical indication schemes in the UK. These amendments are a component of the wider suite of Defra legislation on geographical indications, including the Environment, Food and Rural Affairs (Amendment) (EU Exit) Regulations 2019, debated on 13 March and approved on 19 March, and the Food and Drink, Veterinary Medicines and Residues (Amendment etc.) (EU Exit) Regulations 2019, debated on 20 March and approved on 21 March.
On genetically modified organisms, the SI makes purely technical changes to keep the retained EU legislation operable on exit from the EU. The amendments will allow us to continue to regulate and enforce the applications process for consent to market genetically modified organisms in the UK. It will also allow us to continue to regulate the export of genetically modified organisms, both those which originate in the UK and those which are merely passing through the UK. It also seeks to correct minor errors in exit statutory instruments which have already been laid.
Finally, on direct payments, this instrument will make minor technical amendments to roll over currently existing provisions in retained EU law relating to: environmentally sensitive permanent grassland; buffer strips, field margins and strips of eligible hectares along forest edges without production; the ratio of permanent grassland; and criteria for ecological focus areas. No policy change is made by these corrections. They address drafting errors in two of Defra’s EU exit statutory instruments relating to direct payments. I apologise to noble Lords for this oversight. The earlier instruments were laid at a time when Defra was preparing a large amount of EU exit secondary legislation, but Defra has sought to rectify the errors at the earliest opportunity.
In seeking only to allow the policy regimes to continue to function as intended, this instrument generates no new enforcement bodies and there is no significant impact expected on the existing enforcement regime.
It is worth noting that this statutory instrument was originally laid under the negative procedure. However, the Lords Secondary Legislation Scrutiny Committee recommended that the regulations be made under the affirmative procedure. The suite of legislation on geographical indications under the EU withdrawal Act confers new duties on the Secretary of State. This is in consequence of the Secretary of State taking on functions from the European Commission as a result of withdrawal. However, it is not this instrument that confers new legislative duties; for example, for spirits drinks it was the Environment, Food and Rural Affairs (Amendment) (EU Exit) Regulations 2019, which we debated earlier this month. This instrument confers only administrative functions to the Secretary of State from the European Commission. The Minister at the time the Committee made the recommendation to change this SI to an affirmative instrument, George Eustice, agreed that this instrument should be made subject to the affirmative procedure, and it is a pleasure for me to speak to it before your Lordships today.
Defra has consulted with the devolved Administrations on the amendments contained in this instrument, and they have been consented to. For genetically modified organisms, decisions to release or market GMOs are a devolved matter in Wales and Scotland and a transferred matter in Northern Ireland. However, there are no GM products in the approval pipeline for release in the UK and none is expected in the foreseeable future.
We have engaged extensively and listened to stakeholders’ views on all these policy areas. We have consulted on the issue of geographical indications, which cover both wines and spirit drinks, and continue to stay close to our key stakeholders in those sectors. No consultation was undertaken for direct payments, because the changes are entirely technical and intended to ensure current provisions continue to be available after EU exit.
On GMOs, a technical notice and, more recently, further guidance was published. The changes are entirely technical and intended to ensure currently available provisions continue to be available after exit. This SI makes minor corrections to earlier GMO-specific SIs, on which Defra engaged with parties with an interest in GMOs.
An impact assessment has not been prepared for this instrument, as its purpose is to maintain existing regulatory standards and there is expected to be minimal impact on business. I beg to move.
Baroness Byford (Con)
My Lords, I thank my noble friend for introducing these amendments, which are technical and will allow a smooth transition when we leave the EU. As she said, they are technical changes that affect certain aspects. I have a couple of things to raise, and I should declare an interest since our farm receives environmental payments—she referred to grassland, buffers and ecological areas that are included in this SI for which we receive payments.
My question concerns the fact that, as she referred to, the Select Committee selected this for the affirmative procedure. She said that this was not really necessary and that it was due to something that had happened earlier. Was that known before this SI was produced in the way it is? Otherwise, it seems unusual to have it included as an affirmative instrument, although I accept what she said.
I also want to ask her whether there will be changes to any other statutory instruments coming through. It is getting more and more confusing for those of us looking at them to look at something that happened a week or two ago and try to compare it with what is happening now. I hope she is able to tell me that this will be the last of this set of statutory instruments that we shall look at.
So my two questions are: why was it included in this SI if that decision had not been reached before? Will there be some consolidation of any further SIs coming through? That would make life much easier for all of us.
Baroness Vere of Norbiton
I thank all noble Lords for their contributions to what has turned out to be a short debate. I expected it to be fairly short, but some very valuable questions have been raised so I will be very pleased to answer as many as I can. If there is more that I can add then I will certainly write.
I turn first to the comments made by my noble friend Lady Byford. It is always a pleasure to have her in the Committee to make sure that we are doing things correctly, and she certainly does that. She referred to the issue of the Select Committee and the instrument being made affirmative. Without wishing to detract at all from the valuable work done by the Select Committee, it is the case that the functions being transferred across in this SI are administrative functions, not legislative. There was a potential slight misunderstanding about exactly which powers were coming across. Other legislative functions have come across in other SIs but not in this one. However, we took the decision that this gives us as a Government the opportunity to explain the position, so we decided that we would accept the Select Committee’s decision to make it affirmative, although there was always the opportunity for us to have gone back and explain that. We felt, “Why not make sure that everyone is completely happy?”, so we decided to stand in front of your Lordships today and explain that these are administrative functions, while those legislative functions came across in other SIs that were affirmative anyway and have already been discussed by the Committee.
My noble friend also asked whether there were further statutory instruments to come. There are a few but not as many as there were, so that is a bonus. Nearly all of them have now been scheduled for debate, so we have a good idea of what is left. Obviously, we are consolidating where possible to ensure that we do not have too many debates. It is vital to ensure that our legislation is up to date for exit day, whenever that comes. We can certainly say that we are in the end game now; we are at the end of the process and we should have everything in place very soon. As my noble friend will know, there are more coming tomorrow, so I hope she will join us then.
Baroness Byford
I thank the Minister for that. The difficulty is that sometimes some people are present in the debates, such as the one that we are having now, who have not had the advantage of hearing the earlier debates that we have had, which makes it quite difficult for all of us—myself included—to pick up on some of them. I am grateful for her clarification. I am well aware that we have quite a lot more to come, but my hope is that they will be complete in themselves so we do not have to go over ground that we have already covered, which I think has been the frustrating bit with some of these instruments.
Baroness Vere of Norbiton
I completely accept that comment. I recognise that this is sometimes very difficult because we are dealing with the same issues for different products in different SIs. Certainly, the instruments that will be under discussion tomorrow are much more wholesome and complete.
I turn to some of the comments from the noble Baroness, Lady Bakewell, who also made the point, which I will take on the chin, about the efficacy of debating all these separately. As I have said before, that issue is always to be balanced with the danger of having too many issues in one place; we all know of the famous BEIS SI that was over 500 pages long. I recognise that there is a balance to be struck, and both noble Baronesses have made some very good points.
Food and Drink, Veterinary Medicines and Residues (Amendment etc.) (EU Exit) Regulations 2019
Debate between Baroness Byford and Baroness Vere of Norbiton(5 years, 8 months ago)
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Baroness Byford (Con)
My Lords, having listened to the contributions of colleagues in the Committee, perhaps I could raise and reinforce two points. One is the question of logos. I can hardly see Scottish Beef being very happy to become just UK beef, or Welsh Lamb becoming UK lamb. How will that be overcome, because that is clearly a big selling point for them? Can we have more explanation of how the logo system would work?
On the whole question of veterinary medicines, perhaps I could include the use of antibiotics, because that is crucial these days. We are coming to the question of zoonosis shortly, but it is worth addressing the use of antibiotics to the extent that it happens in some countries around the world, which does not happen over here. I seek clarification on those two points.
Baroness Vere of Norbiton
I thank my noble friend Lady Byford for her points, and the noble Baroness, Lady Bakewell, and the noble Lord, Lord Whitty, for their contributions. I take the criticism on the chin at the outset. I agree with noble Lords: there have been circumstances where the structuring of the SIs and the statutory instrument programme has not been ideal. This has been due to many different factors in the way the work happened; sometimes the EU changed legislation as these things were coming through.
In these examples, however, we are discussing certain elements of the retained EU law in isolation, away from other SIs which discuss the same thing. I can only apologise for that. I recognise that this has not been ideal. As one of the two Ministers taking these statutory instruments through, it is not ideal from our perspective either. As the noble Lord, Lord Whitty, said, maybe one day we will be able to smooth it out, soften the edges and ensure that people understand the context. Certainly, the technical guidance that the Government are issuing puts into better context and plain English the sorts of things that the industry needs to look out for as we transition to a no-deal or a deal-supported exit from the European Union.
I turn first to the topic of GIs, as this attracted the most comments today. The noble Lord, Lord Whitty, and I believe the noble Baroness, Lady Bakewell, talked about the recognition of UK GIs by the EU. We consider that protection of UK GIs in the EU should continue automatically after exit. They have been through the EU scrutiny process and have earned the right to their place on the EU’s registers. To remove the UK’s GIs from its registers, the EU would have to change its rules. If the UK GIs are removed from the EU registers, the Government will support UK GI-holders in reapplying for EU GI recognition.
The noble Lord, Lord Whitty, mentioned promotion of GIs after exit. He is right that we will be setting up a new system. The UK GIs that we have at the moment will roll over, but we hope there will be many more. We will support this, as we believe it is an opportunity to build significant consumer recognition of UK GIs in the places with which we trade significantly. We would promote them alongside wider UK Government promotional activity, such as the Food is GREAT campaign. We will also work closely with the devolved Administrations to co-ordinate future promotion of the GI schemes, recognising that some of the products are tied to a particular nation, rather than a particular locality. We will work with all scheme producers to raise consumer awareness in the UK, which is a very important market for these products, and in new markets abroad. We will also encourage new applicants, because we believe that is very important.
Turning to the application process and the cost of the new scheme, the basic application process is fairly straightforward. It is unlikely that the information required will be significantly different from that required by the EU. The application is formally submitted, the initial appraisal is completed, the devolved Administrations are asked to provide their scrutiny and external experts will be involved, as necessary. The application will be published and then the opposition procedure occurs, should there be any opposition. Finally, a recommendation is put to the Secretary of State and a decision is made on whether or not to award GI status to a product.
The department has the right expertise to assess applications. This expertise can be drawn from across the Defra group, and from academia and the private sector if necessary. This happens already, and it will continue under the UK scheme. We do not expect the costs of application to be different from what they are now; there will be no additional costs when compared to the current scheme, and so no new charges.
Turning to the appeals process, it is right that the Commission has a two-stage process, and it is only right that there is a right of appeal for producers who feel that their products should have been granted a GI. Therefore, we have proposed that the First-tier Tribunal is used. It is administered by Her Majesty’s Courts & Tribunals Service, and was set up to, among other things, handle appeals against administrative decisions made by government regulatory bodies. Appeals on GIs are therefore part of its core business. Defra will have an arrangement with the MoJ for the payment of money to cover the cost of these appeals.
The noble Lord, Lord Whitty, and the noble Baroness, Lady Bakewell, spoke about the current UK GI applications which are with the EU. We are pleased to have recently awarded the Vale of Clwyd Denbigh plum, and will continue to process applications to grow this number after exit. The EU is currently assessing 6 UK GI applications. Examples include Ayrshire early potatoes, Cambrian Mountains lamb and Broighter Gold rapeseed oil. If there is no deal, we would expect these applications to continue to be processed by the EU. However, if that does not happen, they will be processed under the new UK scheme. The new Article 52A of EU regulation 1151/2012 will apply to UK applications pending in the EU. They will be converted straight into UK applications, because Article 52A is in the legislation as Part 3 of Schedule 1 to the instrument.
While logos are mentioned in this SI, it is not the main logo SI. Because the setting up of the new system is not dependent upon a no-deal Brexit, it can be done over a period of time. The reason we have chosen three years—we did talk to the industry about it—is to minimise the costs to business, because the logo has to be agreed upon and then there is the transition from the current logo to the new logo; that will happen over that three-year period. There will be an opportunity for noble Lords to discuss this in much greater detail when the logo SI comes to your Lordships’ House. That may not be immediately—we all need a bit of a recess first; that would be wise. We are discussing it in this SI because there is an obligation to create a new logo, and the Government are very mindful of that. We have started talking to industry already, and we do not want all producers suddenly to have to change their logos at very short notice—that would not be cost effective. I have just been given a note saying that the three-year period, and the process by which we intend to do it, was supported in the public consultation that we carried out in October 2018. The process will continue in due course, and the three-year period will be available.
The noble Lord, Lord Whitty, talked about devolved logos, and my noble friend Lady Byford mentioned the issue of national products and their logos. These two things work in slightly different directions, because GIs are reserved as a form of intellectual property, and so the logo will be centrally managed. New logos will cover the whole of the UK, and we are working with them in the logo design process. We will come back to logos, and at that point we should discuss how we incorporate, because at some stage national brands will need to be incorporated into the broader system, particularly as many of them are such important exports.
I believe I have covered everything on GIs for the time being; I will check Hansard to make sure.
The issue of the MRL attracted slightly less attention, not because it is not important but because, I think, it is fairly straightforward. In my opening remarks, I talked about bringing over the EU fees for the MRL, but, within a few months of exit, the VMD will look at the actual cost of administrating this scheme, to makes sure we can charge the most appropriate amount. We expect the fees to come down, and we will do that as soon as we can.
Zoonotic Disease Eradication and Control (Amendment) (EU Exit) Regulations 2019
Debate between Baroness Byford and Baroness Vere of Norbiton(5 years, 8 months ago)
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Baroness Vere of Norbiton (Con)
My Lords, this instrument ensures that there will continue to be a functioning regulatory and legislative regime for protecting human health against zoonotic disease—disease that may transfer from animals to humans—when the UK leaves the EU.
The instrument extends to and applies to the United Kingdom. Part 4 makes very minor consequential changes to secondary legislation for England and on behalf of Scotland and Northern Ireland. The same amendments will be made shortly by the Welsh Government to their legislation. We have worked with the devolved Administrations on this instrument and they have given consent.
The current EU requirements set targets to reduce the prevalence of salmonellas of public significance in poultry. Targets are achieved through control programmes, regular sampling for the presence of salmonella and actions such as culling where it is found. Where poultry and hatching eggs are traded between EU member states and other countries, the results of salmonella sampling must be shown on health certificates. Trade with countries outside the EU is permitted only if the country is on a list of approved third countries with equivalent controls.
This SI makes technical amendments such as removing or amending references to EU institutions such as Community “reference laboratories” and “the Commission”, which will no longer be appropriate after EU exit. There are no changes to the standards set out in the EU regulations.
Part 2 of the instrument also provides for a series of legislative functions which take those powers currently held by the Commission and transfers them to the appropriate Ministers in the UK. The powers transferred permit changes to procedural and technical matters, including targets for the reduction of the prevalence of salmonella, detailed requirements for control programmes and specifying the responsibilities and tasks of laboratories. Imports of poultry and hatching eggs from the EU will be permitted on the same basis as now, but the regulation includes some minor changes to ensure that such imports continue to be accompanied by health certificates that show test results for salmonella. The changes also permit the Secretary of State to make changes to the list of third countries from whom imports of poultry and hatching eggs may be accepted. Where powers are transferred from the European Union to UK Administrations, I assure noble Lords that Ministers will be able to make statutory instruments regarding procedural and technical matters only, in the same way the Commission can in respect of the regulations at the moment.
Part 5 ensures that existing control programmes remain in place after exit day and that the reference laboratories carrying out testing and analysis can continue to operate without new designations. Although the regime will continue to function after we leave the EU much as it does now, transferring powers to the devolved Administrations means that instead of having a UK-wide target for the reduction of salmonella and a UK-wide national control programme, each Administration will have its own. The standards set out in the regulations will, nevertheless, remain the same. We have worked with the devolved Administrations on this instrument, and they have supported this approach.
We and the devolved Administrations have talked to our key stakeholders: the British Poultry Council and British Egg Industry Council. Key stakeholders understand that separate targets and control programmes are the inevitable consequence of transferring legislative functions to the devolved Administrations. We have assured them that we will continue to work closely with the devolved Administrations to help deliver a system that will not cause unnecessary complications for business.
The regime will continue to operate much as it does now. Defra officials have made an assessment of the potential impacts on business of separate targets and control programmes in each Administration and have estimated that the impacts are unlikely to be significant. I beg to move.
Baroness Byford (Con)
My Lords, I thank the Minister for introducing this statutory instrument, which I welcome. I have a couple of questions for her, but I declare an interest of long ago—50 years—as an ex-poultry farmer, producing eggs for a very well-known breeding company which hatched the eggs and then sold the chickens to farmers commercially; I was a parent stock breeder. It is hugely important that imports are considered on the same basis as they are now; they need health certificates, so that is a very welcome confirmation.
The egg industry is hugely important and, from time to time, has had some great challenges over those years. We remember the egg scare during a certain lady’s time—Edwina Currie—which did the industry no good at all. The industry needs to know that it is batting on an even level, so I welcome this statutory instrument.
If I may, I shall raise again the question again that I previously mentioned briefly, but I did not come back to the Minister. We were having a conversation on salmonella before we started this debate, but the use of antibiotics falls within this ground. Some countries use antibiotics in a way we certainly would not here. There is not a direct link at the moment, but it may be—I would have to look to colleagues for confirmation—that it can be transposed from livestock to humans because of its excessive use. I am not sure of my ground on this, but I would not like the occasion to go by without raising this with the Minister again. I realise that this statutory instrument looks primarily to getting proper monitoring and control over salmonella, which is a hugely difficult disease within the industry if it is allowed to take hold. As a former-poultry farmer, I am well aware of the challenges that the industry faces. The one thing that it needs is to be able to trade fairly, and therefore the regulations are very welcome.
Organic Production and Control (Amendment) (EU Exit) Regulations 2019
Debate between Baroness Byford and Baroness Vere of Norbiton(5 years, 8 months ago)
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Baroness Vere of Norbiton (Con)
My Lords, these instruments correct technical deficiencies in legislation relating to organic production to ensure operability on exit. The instruments introduce no new policy and preserve the current regime’s organic standards. The Government are strongly supportive of organic standards, many of which were developed in the UK and adopted by the EU. The UK has a world-recognised standard of food production and labelling which we wish to see maintained. We have grouped these instruments for discussion as they both relate to amendments to organic legislation.
Early indications from the sifting committees were that SIs laid as negative but with a connection to agriculture were being selected to be uplifted to affirmative. While the Organic Production and Control (Amendment) (EU Exit) Regulations 2019 were not specifically recommended for uplift by the sifting committees, we chose to voluntarily uplift this SI to reduce the risk of it running out of parliamentary time. The Organic Production (Control of Imports) (Amendment) (EU Exit) Regulations 2019 contain transfer of function provisions, and as such the affirmative procedure must apply.
These statutory instruments apply to the United Kingdom, and we have worked with the devolved Administrations on their development. The legislation amended by the Organic Production and Control (Amendment) (EU Exit) Regulations 2019 relates to devolved matters, and the devolved Administrations have consented to that SI. The Organic Production (Control of Imports) (Amendment) (EU Exit) Regulations 2019 are reserved. Officials have had very helpful discussions with their counterparts in the DAs, and we are working with them on all aspects of the organics regime to form an agreement on how we all work together going forward.
The Organic Production and Control (Amendment) (EU Exit) Regulations 2019 ensure that organic standards remain the same as now for organic operators within the UK by amending deficiencies in the retained EU legislation: for example, references to the UK as a member state. The certification and traceability of organic food and feed products will continue. This instrument sets out minor technical amendments and lays down a time-limited period during which the UK would not require additional border checks for organic products imported from the EU, the EEA and Switzerland.
The Organic Production (Control of Imports) (Amendment) (EU Exit) Regulations also amend deficiencies in the retained EU legislation but deal with reserved measures covering imports and trade in organic food, feed and vegetative propagating material or seeds for cultivation. The SI transfers powers from the Commission to the UK to recognise countries and control bodies that can operate for the purposes of export to the UK. It also sets out minor technical amendments and lays down a time limit for the recognition of organic products imported from the EU, the EEA and Switzerland.
The UK organics industry is currently regulated by EU law, which sets out standards for organic production. Regulations apply to the production of food, animal feed and livestock, including bees and farmed fish, and any food or feed products marketed as “organic”. They set out the requirements for organic production, processing, labelling and imports, as well as the inspection systems that must be in place to ensure the requirements are met. They stipulate that organic food must be inspected and certified within the scope of a tightly regulated framework and originate from businesses registered and approved by organic control bodies on the basis of a rigorous annual inspection. The regulations will now apply to imports at UK borders, rather than EU borders, and ensure the continued regulation and certification of organic products to the current standards applicable within the UK, and equivalent standards where these have been agreed with third countries.
In addition, to ensure we can maintain the status quo and allow UK organic importers to continue to access their goods and ingredients from Europe as now, we have added provisions which permit the UK, for a time-limited period until 31 December 2020, to recognise the EU, the EEA states and Switzerland as having an equivalent organic regulatory regime to the UK. During this period, the UK will also exempt the need for additional checks or paperwork for organic goods originating from these areas. This exemption does not apply to goods that are simply transiting through these territories. This will ensure the status quo remains immediately after exit.
These measures remain essential to ensure UK organic businesses can maintain their organic certification and thrive in this growing sector. These instruments will ensure operability and that the strict standards in place for organic production are maintained when we leave the EU.
Officials have engaged regularly with the United Kingdom organic certifiers group. Our decision to continue to recognise the EU, the EEA and Switzerland for a time-limited period has been welcomed by the group as providing certainty on imports for the immediate future. We continue to work closely with it on this and on the future implementation of the UK regulations. I beg to move.
Baroness Byford (Con)
My Lords, I thank my noble friend the Minister for introducing these two Motions. I am particularly pleased that there will be a smooth transfer into UK law. The organic sector is still considered a fairly small one, but a very important one. The UK sector brings in a good, healthy amount of money—£2.2 billion to the UK economy and exports worth some £200 million —so the continuation of this trade is hugely important. At this stage I declare my own family farming interest, but we are not organic. We produce very healthy, good food, but it is not purely organic.
The Explanatory Memorandum talks about there being some 6,000 operators. Many of those are small businesses. Those classified as “small” employ “up to 50 people”. That is actually quite a lot of people in an organic movement. I wondered what proportion of the smaller ones have, say, 10 or five employees. What went through my mind was: although this is not supposed to have any financial burdens, if you are a smaller business it obviously has greater implications for you and the organisation of what you have to do. I would be grateful for a response on that one. I am glad that, on the control of imports, it is clearly laid out. I smiled slightly when we had a 20-page list of individual categories, which shows how complex and varied the whole organic sector is.
I welcome the production and control amendment, because I hope it will give great certainty to organic producers. It takes up to three years to turn to become organic from having been, perhaps, commercial farmers. We have often said that farming is a long-term investment —clearly it is—but on the organic side it is more demanding, because there are certain things you can and cannot do during your term of transfer.
Fertilisers and Ammonium Nitrate Material (Amendment) (EU Exit) Regulations 2019
Debate between Baroness Byford and Baroness Vere of Norbiton(5 years, 9 months ago)
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Baroness Vere of Norbiton (Con)
My Lords, we have already discussed fish, horses, animals and plants, and now for something completely different—fertilisers and ammonium nitrate.
This instrument changes legislation in two areas. First, it amends domestic legislation that is out of date and, secondly, it addresses failures of retained EU law to operate effectively and other deficiencies arising from the UK’s withdrawal from the European Union.
Legislation surrounding fertilisers concerns the manufacturing and marketing of products. It provides for the definition, composition, labelling and packaging requirements for specific categories of fertilisers that are set out in lists. The legislation does not address the application or use of fertilisers and it does not change the definition or compositional requirements of fertilisers.
In 1975 the EU created its first set of legislation relating to fertilisers. The wide disparity in existing fertiliser rules between member states and the bulky nature of these materials restricting cross-border trade meant that it was not suitable to fully harmonise rules on all fertilisers across the EU. Instead, fertiliser rules were partially harmonised to begin removing technical barriers to trade within the EU. This means that the UK has kept its existing domestic framework alongside the EU framework. The EU regulation sets out the requirements for EC fertilisers, previously called EEC fertilisers, that can be freely sold across the EU. Manufacturers can choose which framework to market their products under, and this partial harmonisation is still in place today.
The current domestic framework for any material described as a fertiliser is the Fertilisers Regulations 1991. In the EU, the current framework is EU Regulation (EC) No. 2003/2003, and this applies only to fertilisers labelled “EC fertiliser”. It was implemented in UK law by the EC fertilisers regulations 2006. Ammonium nitrate fertilisers are controlled through safety regulations that apply to all ammonium nitrate in Great Britain.
Part 2 of the instrument amends out-of-date references in the domestic legislation—for example, omitting references to EEC fertilisers and EC fertilisers to ensure clarity for users of the legislation. In the case of EU legislation, Part 3 of this instrument amends retained EU law to ensure that it will operate effectively after exit day—for example, references to member states and the Commission are amended to refer instead to UK authorities. A requirement as to the language to be used on labels is also amended. The SI replicates the EU framework in UK law by replacing the “EC fertiliser” label with an equivalent “UK fertiliser” label. The requirements will otherwise remain the same.
Part 4 of the instrument amends domestic legislation as a result of exit. It ensures continuity of supply by recognising EC fertilisers for a two-year transitional period after exit day. This will minimise burdens on businesses and authorities.
The amendments made in this instrument do not change the definition, compositional requirements, labelling or packaging rules of fertilisers, whether marketed under the existing domestic framework or under the EU framework.
Ammonium nitrate fertilisers are additionally covered by domestic safety regulations, as they can be misused as improvised explosives and pose safety risks if mishandled in manufacture, transport or storage. Part 4 of the instrument amends the regulations surrounding ammonium nitrate fertilisers with high nitrogen content in Great Britain in order to treat imports from EU member states in the same way as imports from other third countries, in line with WTO obligations. Northern Ireland has separate restrictions on ammonium nitrate for historical reasons, which this instrument does not amend.
Under the British ammonium nitrate regulations, the rules for imports from the EU are different from those for imports from outside the EU. In light of WTO rules, it would not be possible to retain these differences. Therefore, the instrument amends some aspects of the ammonium nitrate regulations—in particular those relating to detonation resistance tests, or DRTs—to apply the more stringent of the two regimes to all imports, whether from the EU or elsewhere, after the end of the two-year transition period, and to uphold current safety standards.
Currently, the definition of what constitutes a “batch” of ammonium nitrate differs depending on whether the import comes from the EU or elsewhere. The EU definition is based on a production run that lasts no longer than 92 days, whereas the non-EU definition relates to any single imported consignment. Using the non-EU definition in this case would cause increased costs for manufacturers due to additional testing, and provides no additional safety benefits. Therefore the EU definition of “batch” will be applied to all imports from exit day.
Continuity of supply is ensured by a transitional period of two years for imports from the EU, which provides 99% of imported ammonium nitrate to the UK. This allows the continuation of current rules with regards to the time limit for detonation resistance test certificates, and the ability to recognise EU laboratory test certificates. These arrangements give manufacturers time to prepare for compliance with the import rules post exit and, importantly, this reduces any burdens on UK laboratories immediately after exit.
The instrument was presented to the sifting committees on 1 November 2018 as a negative instrument. The House of Lords sifting committee was content with that, but the House of Commons sifting committee did not agree with the Government. It considered that the effect of one regulation was to allow Ministers to charge fees to cover the cost of tests needed for official control measures. In addition, it considered that the instrument conferred powers to legislate. It therefore recommended that the instrument be debated in Parliament. The instrument has been amended since it was presented to the sifting committees to reflect certain recommendations in the report, and the Explanatory Memorandum has been amended.
In general, fertiliser policy, like other agricultural policy, is devolved. The devolved Administrations were closely engaged in developing these regulations, which apply to the same geographical areas as the original legislation that they amend. All the Administrations have agreed to maintain a single common framework for fertilisers labelled as “UK fertilisers”, while continuing their own domestic framework. This will make the marketing of fertilisers much clearer for industry, and is a good example of how well the four Administrations work closely together for a common goal.
The instrument relates to the maintenance of existing regulatory standards with no significant impacts, or new or greater administrative or economic burdens on business or other stakeholders. While there was no statutory requirement to consult on this instrument, officials have held discussions with key stakeholders: the fertiliser manufacturers’ representative body, the Agricultural Industries Confederation, and the farmers’ representative body, the National Farmers’ Union. Their main concerns have been addressed by allowing for a transitional period for existing rules and compliance with the amended rules. The changes to the rules on ammonium nitrate have also been developed in conjunction with the Health and Safety Executive and the Home Office to ensure that safety and security elements are maintained or improved.
These measures are essential to ensure that the retained EU framework will operate in the UK alongside the existing domestic framework and, importantly, allow the continued trade in high-quality, safe fertilisers. I beg to move.
Baroness Byford (Con)
My Lords, I am grateful to my noble friend for introducing this statutory instrument. I shall start where she ended and thank her for the consultation the department has had with the Agricultural Industries Federation and the National Farmers’ Union. It is essential that we take advice from or hold consultations with them. In the same way, I should declare our family’s farming interests because obviously fertilisers are used on the farm.
I have little to question my noble friend on, but I am grateful that the Government have responded to the Commons sifting committee which referred the question of costs to the department. That has been addressed and the Minister has reminded us that 99% of fertilisers are imported from the EU. It would be logical to accept this statutory instrument and I am grateful for the way in which the labelling requirements have been addressed; in other words, we can still use the EU fertiliser labelling scheme until the UK fertiliser labelling scheme is put into place.
The most important thing that I have picked up from this statutory instrument is the need to ensure that fertilisers are bought, sold, stored and then used on farms safely and securely. It is easy for accidents to happen, and we do not wish to see fertilisers fall into the wrong hands. I welcome these regulations and again I thank my noble friend for introducing them.