Trade and Official Controls (Transitional Arrangements for Prior Notifications) (Amendment) Regulations 2021

Baroness McIntosh of Pickering Excerpts

Tuesday 18th May 2021 Grand Committee

[Baroness McIntosh of Pickering (Con)]

I am delighted to follow the noble Baroness, Lady Ritchie of Downpatrick, and I echo many of the remarks made by my noble friend Lord Taylor of Holbeach, who speaks with such authority on these issues. I am grateful to the Minister for setting out so clearly the content of the two instruments before us. I would like to put a number of questions to him, if I may.

In regard to the plant health miscellaneous fees regulations before us, the point was made that an exemption from the payment of fees is being made but, as we understand it, this is only for a period of time. However, my noble friend Lord Goldsmith said that these regulations apply only to England and that there will be separate regulations for Scotland and Wales. It would obviously be good to know that they will be applied in the same way, and that there will not be two different regimes operating. Confirmation of that would be very helpful.

I note the importance of the industry. The horticultural trade is worth more than £24 billion in GDP. It supports more than 568,000 jobs and contributes £5 billion in tax per annum, which is considerable. The agricultural supply industry, as represented by the Agricultural Industries Confederation, represents a farmgate value of more than £8 billion. This is a significant industry and a significant trade.

Particularly in the context of the second instrument before us—the Trade and Official Controls (Transitional Arrangements for Prior Notifications) (Amendment) Regulations—it would be helpful to know whether the Minister can update us on where we are in the negotiations on the recognition of the sanitary and phytosanitary provisions. I have great difficulty in understanding why we cannot introduce a system more akin to that in New Zealand, particularly when we live so physically close to our erstwhile European Union partners. It would be helpful to know what stage we are at.

Likewise, in case any issues arise, can the Minister confirm that parliamentary committees and other specialist committees are being established at this time under the EU–UK Trade and Cooperation Agreement? Many of these issues will raise concerns on both sides, and it is important that they can be identified at the earliest possible stage.

As was noted in the discussions in the House of Commons, it is a matter of concern and something to be remarked on that the Minister was completely silent on the question of the expected financial impact and the cost of applying these two sets of regulations. Given the significance and contribution of this sector to the UK economy, it is extremely important that we understand the impact at the earliest possible stage.

As my noble friend Lord Taylor of Holbeach said, these are new fees that did not exist in the past. Given the new arrangements that we find ourselves in post Brexit, this is the first time that a producer or exporter will have to pay them—from 1 January 2022, as I understand it. It would be helpful if, in summing up this short debate, the Minister could tell us what impact he and the department expect the fees to have when they apply. Also, it seems slightly odd that, if that is the case, the same fees will apply per consignment regardless of size. That seems nonsensical and it would be helpful to have an explanation.

Extraordinarily, when we last debated these regulations, there had been no discussion or formal consultation with the agricultural supply sector. The Agricultural Industries Confederation was not contacted before the initial regulations were drafted. It is good to recognise that there is now greater engagement. I understand that there is a dialogue between Defra and the AIC, as well as with other parts of the industry, on this subject. That is obviously welcome.

However, Defra must provide more clarity, particularly on some of the terms being used. One example is the phrase “not intended for final user”. Can more information be put out at the earliest possible stage, particularly in view of the fact that we have time now before these fees come into effect on 1 January next year? What does that phrase mean? If the seed is being used to produce a crop that will be marketed, it will be important to understand that from the industry’s point of view. I understand that Defra is removing the higher fee from seed for trials in response to the concerns that have been expressed by industry. Perhaps the Minister can confirm whether that is the case. I would welcome that very much indeed.

As I mentioned earlier, there is ongoing concern that if these regulations are to be implemented differently with three pieces of legislation—one for England, one for Scotland and one for Wales—there should be no divergence in their interpretation and operation between the nations of the UK on the matter of seeds and plant health. I entirely support the strong and appropriate comments made by my noble friend Lord Taylor of Holbeach about the fact that we find ourselves in this incredible position of not being able to export seed potatoes from Scotland and the rest of Great Britain to Northern Ireland. That is regrettable. If there is to be a review of the Seed Marketing Regulations 2011 next year—or even this year—it would be extremely helpful to us to have the earliest possible notification of what the implications will be.

Although I do not oppose these regulations, I obviously welcome the fact that there is now at least a dialogue between the department and the industry. I hope that the Minister will be able to take this opportunity to answer some of the concerns I have addressed this afternoon.