Animal Health, Plant Health, Seeds and Seed Potatoes (Amendment) (EU Exit) Regulations 2019

Baroness McIntosh of Pickering Excerpts

Monday 13th May 2019 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Gardiner of Kimble) (Con)]

My Lords, I hope that it will be helpful to your Lordships if I speak to both the Animal Health, Alien Species in Aquaculture and Invasive Non-native Species (Amendment) (EU Exit) Regulations 2019 and the Animal Health, Plant Health, Seeds and Seed Potatoes (Amendment) (EU Exit) Regulations 2019, given the close connection between the two instruments.

It may also be helpful to explain why we are debating the Animal Health, Plant Health, Seeds and Seed Potatoes (Amendment) (EU Exit) Regulations 2019 again when it has already had your Lordships’ full consideration. We are doing so because timetabling issues in the other place led to a delay in the instrument being made; that meant that it was necessary to withdraw the instrument and make it under the emergency procedure, under which we are now debating it. Both statutory instruments were made under the emergency procedure as both were required to support the UK’s application to the European Commission for third-country listed status for animal health purposes. As the Government have made clear, we are seeking a negotiated deal with the European Union, but we are taking responsible action to prepare for other scenarios.

The European Commission called a meeting of the relevant committee—SCoPAFF—on 9 April to consider the UK’s third-country listing application and made it clear that it required all relevant animal health legislation to be in place by that date. Both SIs therefore had to be made in a very short window of time as both contain amendments to animal health legislation. By using the emergency procedure to make the SIs, the UK was able to assure the Commission that all relevant legislation had been made, enabling member states to vote unanimously on 9 April to list the UK as a third country. This would have enabled the export of animal products and most live animals from the UK to the EU to continue in the event of a no-deal scenario on 12 April. The Government have taken care to avoid using the emergency procedure under the EU withdrawal Act, but we considered use of this procedure to be appropriate in this instance.

I want to make it clear that our biosecurity controls for animals and plants are paramount and that these instruments continue to contribute to ensuring that we will have the most robust arrangements in place to protect public health and the environment. The instruments make technical operability amendments covering animal health, plant health, aquaculture, invasive non-native species, seed marketing and seed potatoes, and will contribute towards ensuring that the legislation protecting our biosecurity is fully operable.

As the first statutory instrument has been debated in this House previously, I hope that it will be helpful if I summarise it. The amendments made by the instrument concern recent updates on animal health control measures relating to African swine fever in certain member states. Retaining this EU decision requires the appropriate Minister in the UK to display public information notices regarding the importance of biosecurity measures to prevent this pig disease being brought into the UK; it also prohibits the movement of live feral pigs.

On TSEs, a reference to a function of the European Commission in the Transmissible Spongiform Encephalopathies (England) Regulations 2018 has been amended to refer to the Secretary of State instead of the EU Commission.

Part 3 of the statutory instrument covers plant health. It amends the Plant Health (Amendment) (England) (EU Exit) Regulations 2019 and the Plant Health (EU Exit) Regulations 2019 to recognise arrangements with the Crown dependencies and deal with new EU plant health decisions, including controls on the red-necked longhorn beetle. I remember with some affection the debate we had on this particularly difficult beetle. As I said before, this is a damaging pest and a threat to a range of fruit and ornamental species in the UK, including cherry, peach and plum.

Regulations 4 and 5 recognise the arrangements with the Crown dependencies, following planned meetings concluded early in 2019, that will continue to facilitate the import and movement of regulated plants and plant products into the UK. The changes made by this instrument give effect to those arrangements. Regulation 5 also provides for the import of ash wood from the United States of America and Canada to continue under the same stringent derogation provisions after exit, ensuring continuity of supply for UK businesses without—I emphasise this—any compromise to bio- security.

The Plant Health (Amendment) (England) (EU Exit) Regulations 2019 are also amended to enable UK plant passports to contain certain details in relation to the marketing of fruit plant propagating material and fruit plants. This is intended to avoid the need for dual labelling.

Part 4 of this statutory instrument covers seed marketing and seed potatoes, and applies to England as this is a devolved matter. Indeed, in the previous debate we considered the importance of consistency but also of respecting the devolved arrangements, which have worked particularly well. These regulations are amended to ensure that growers in England have continued access from the EU to new varieties of vegetables and a continued supply of seed potatoes for an interim period after EU exit. I remember the noble Baroness, Lady Bakewell, talking about the kalette during that element of our considerations. This instrument is required to attend to a number of elements of retained direct EU legislation to ensure operability and appropriate functioning.

I turn to the Animal Health, Alien Species in Aqua- culture and Invasive Non-native Species (Amendment) (EU Exit) Regulations 2019. This instrument amends four previous EU exit statutory instruments to ensure that the previous instruments work fully as intended. At this moment, I again extend my regrets and apologies, and I take responsibility if errors are discovered, but—as I have said before—given the pressures, I understand how these errors have been made. I put on record that I regret having to bother your Lordships with a piece of business about errors. I am open, transparent and straight about that, but I regret it.

The invasive non-native species instrument is amended to correct a small number of drafting and typographical errors that have been identified. An amendment has also been made to Regulation 7(3)(e) of the invasive species instrument to ensure consistency with the Invasive Alien Species (Enforcement and Permitting) Order 2019. The order provides for recovery of enforcement-related costs from importers by enforcement authorities, and this amendment provides certainty that importers are responsible for these costs.

The two aquatic animal health and alien species in aquaculture instruments have been amended to allow cross-references in the legislation to be more readily understood. I agree with that. Both instruments contain reference to an article in EU directive 2006/88 that has since been implemented by a more recent Commission decision, making these references redundant. These references have therefore been omitted from both SIs.

The instrument relating to the import of and trade in animals and animal products is amended as it revoked a 2006 Commission decision in error, instead of revoking a single article from that decision. This decision imposes the import requirements of fruit bats, cats and dogs from peninsular Malaysia and cats from Australia—intended to prevent the introduction of the Nipah and Hendra viruses—and is now correctly reinstated as EU retained law. The UK does not import any fruit bats, but a number of cats and dogs are imported from these countries and so it was clearly imperative that this situation has been rectified. Again, we are clear that there is no intention to weaken biosecurity standards and, again, I regret that this occurred. I am extremely pleased that, on further scrutiny, this was discovered and we propose through this instrument to sort it out.

Additionally, within the same instrument, lists of animal product commodities that require checks at UK border inspection posts are being amended to make the additional removal of products from the list an administrative function. The import conditions for animals and products remain in the legislation and so, again, there will not be a lowering of any standards.

I emphasise that this corrective instrument makes purely technical changes to these four existing EU exit instruments to ensure that they will operate correctly when we leave. This instrument does not introduce new policy but simply amends the original instruments so that they operate as originally intended.

The decision to use the urgent procedure was not taken lightly. It was deemed necessary in order to protect the biosecurity of the United Kingdom and to prevent financial losses and maintain trade by ensuring that the UK was able to achieve EU third-country listed status in the event of leaving the EU without a deal on 12 April. These instruments will ensure that our strict biosecurity controls with regards to animal health, plant health, aquaculture, invasive non-native species, seed marketing and seed potatoes are maintained. I beg to move.

[Baroness McIntosh of Pickering (Con)]

I thank my noble friend for introducing these two statutory instruments but regret the circumstances that he has set out. I welcome the opportunity to consider them and I have a couple of questions.

Mindful of the fact that we are on the eve of the Chelsea Flower Show, I wish to press my noble friend on the comments he made in relation to inspections and the role of the import controls. When these were considered in the other place on 9 May, our honourable friend David Rutley said:

“Notifications will be required for live animals, Germplasm and animal by-products not for human consumption, and high-risk food and feed are subject to vet checks”.—[Official Report, Commons, 9/5/19; col. 13.]


This raises a question not only about plants but about who will be responsible for the inspection for beetles. Will it be the responsibility of the UK border inspection or the importer? Will the importer pick up the cost of these inspections?

Page 44 of Statutory Instrument 2019 No. 809, refers to the policy on GMO and food and feed regulations. My noble friend has said that these two statutory instruments have been brought forward today in case there is no deal. It would be welcome if he could reassure me that our policy on GMO will not change in the event of no deal.

On a separate matter, I am keen that we use the same language as is used in this and other statutory instruments and regulations from my noble friend’s department, whether it relates to the import of plants, animals, potato seeds or other items within the remit of these two statutory instruments. We successfully amended the Trade Act, but I am concerned that the wording used in that amendment related only to plant and animal health. I would argue that it should extend to food safety. I realise it does not fall entirely within the remit of these statutory instruments, but I would welcome the opportunity to discuss this at greater length with my noble friend if we have the opportunity to do so. I am very keen that the language used by the Department for Environment, Food and Rural Affairs is the same as that used by the Department for International Trade to make sure that, when we look at these issues across departments, we entirely understand what is being considered.

My final question relates to my noble friend’s comments on Statutory Instrument 2019 No. 813. Page 3 refers to the import of fruit bats, cats and dogs. As he explained, we have no imports of fruit bats, for what purpose are they in the regulation before us today?

Trade in Animals and Related Products (Amendment) (Northern Ireland) (EU Exit) Regulations 2019

Baroness McIntosh of Pickering Excerpts

Monday 13th May 2019 Lords Chamber

I have been privileged to attend and chair some of the British-Irish Council meetings set up as part of the Good Friday arrangements, where the Republic of Ireland, Northern Ireland, the three other parts of the United Kingdom, the Isle of Man, Jersey and Guernsey all meet to discuss these matters, biosecurity, invasive species and their impacts—in fact, for the heightened recognition of the latter, Invasive Species week will be taking place across all those countries and jurisdictions. I thought it important to conclude these remarks on that, as Defra is undertaking these regulations on behalf of Northern Ireland because of the lack of an Executive there. It is important to record firmly that this is an area where there is established and continuing close collaboration. I beg to move.

[Baroness McIntosh of Pickering (Con)]

My Lords, I have just one question for my noble friend. In referring to the trade in animals and related products regulations, he mentioned that the tripartite agreement will cease, which is absolutely true. He also mentioned that this first statutory instrument will refer to the movement of horses between Northern Ireland and southern Ireland. That begs the question of the status of the tripartite agreement. Are we expecting a statutory instrument that will replace it as regards movement of racehorses and other horses between France, Britain and Ireland? This is obviously a matter of great concern among the racing community, and we now have the time to negotiate an agreement. What form will it take? Will it come before the House?

[Baroness Parminter (LD)]

My Lords, I thank the Minister for his introduction. As he said, we have discussed a number of these issues on previous SIs, looking at them in the context of our whole country, but there are obviously particular issues here given the land border between Northern Ireland and the Republic of Ireland. I thank the Northern Ireland civil servants for their assistance on this as I tried to grapple with some of the issues of operability, particularly the resource implications of some of these changes should we be in the unfortunate situation of either leaving the European Union or ending up with a no-deal exit.

First, can the Minister confirm my understanding that there will be a significant increase and strain on the number of inspectors that the Northern Irish team will need? I understand it will need more than double the number of horticultural inspectors, which is a significant number in terms of both cost and finding them in a short time. That gives an indication of the scale of the challenge that the Northern Ireland plant health team will have to face.

Furthermore, as the Minister rightly said, plants and plant products coming into Northern Ireland from non-EU countries will need to be checked at an authorised trade premise or designated point of entry. The most likely route for that would be arriving on a roll-on, roll-off at Dublin and then travelling overland to Northern Ireland, yet I understand that currently no businesses have registered as authorised trade premises, so the only designated point of entry for those checks would be Belfast port.

In an earlier debate on this SI, we had a fairly full and frank discussion on this, when the noble Baroness, Lady Young of Old Scone, who is not in her place, talked about our fear of “trailing pestilence” across our country. There is an issue for those of us who worry about transporting unchecked consignments to designated premises outside individual ports for checking. Having said that, at the moment there are no designated points of entry for checks in Northern Ireland other than Belfast port. Are the Government seeking to encourage stakeholders to become authorised trade premises to relieve the burden on Belfast port, and if no business premises are approved, is the Minister confident that Belfast port can deal with all the checks likely to be needed?

I have concerns, too, for Northern Ireland farmers in the event of no deal. It is clear from discussions on the SI on trade in animals and related products that if we leave without a deal, farmers will be obliged to have any livestock they are sending to the EU enter via an EU border inspection post. If the Government fail to reach an agreement with the EU, we could see Northern Ireland farmers and their livestock having to be transported greater distances, with all the risks to their welfare that that entails, because they have to go first to an EU border inspection post before onward transportation. What indications has the Minister had from the EU of where those EU border inspection posts might be in the event of no deal?

As the Minister rightly said, an issue of social concern in Northern Ireland is the movement of pet animals because of its land border with the EU member state of the Republic. I will not repeat our exploration in previous SI debates of the additional costs, delays and administrative burdens for owners wishing to take their pets into the EU should the Government fail to secure listed status in the event of no deal, but clearly this will be a big concern for Northern Ireland given its land border. Can the Minister give any update on discussions with the EU on this issue which might mitigate the considerable extra burdens that Northern Ireland pet owners would face in the event of no deal?

Common Agricultural Policy and Market Measures (Miscellaneous Amendments) (EU Exit) Regulations 2019

Baroness McIntosh of Pickering Excerpts

Wednesday 8th May 2019 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Gardiner of Kimble) (Con)]

My Lords, I declare my farming interests as set out in the register.

The purpose of this statutory instrument is to ensure that the regulatory baseline currently applicable in the UK under European Union legislation will be maintained on the UK statute book and can continue to operate effectively after exit. This instrument does not make any policy changes. It consists of a series of technical amendments that are essential to ensure that two new amending EU common agricultural policy regulations are retained in UK law at the point of the UK’s withdrawal from the EU.

This instrument is among a small number of affirmative statutory instruments that have been made under the urgent procedure. The urgent procedure was used because during March 2019 the European Commission introduced two new amending EU CAP regulations and it was essential that the UK should retain these amendments in an operable form in advance of a possible no deal exit on 12 April 2019.

The two new amending EU common agricultural policy (CAP) regulations are EU regulation 2019/288, which applied to all member states from 1 March 2019 and relates to direct payments to farmers under the CAP; and EU Commission delegated regulation 2019/428, which took effect from 26 March 2019 and relates to marketing standards in the fruit and vegetables sectors under the common organisation of agricultural markets (CMO). The instrument also takes the opportunity to make a few minor typographical corrections and, in the case of Regulation 3(3), removes a duplication in a small number of previous Defra EU exit SIs. Again, these amendments represent no change to policy. Agriculture is a devolved policy area and Defra has worked closely with devolved Administrations, who have all given their consent to this instrument.

As I explained on 20 March 2019, when we debated a number of instruments concerning the common agricultural policy, the UK Government have pledged to continue to meet their funding commitments in the agriculture sector. This SI, by taking account of the EU’s regulatory updates, fine-tunes Defra’s direct payments EU exit instrument, ensuring that the flexibilities to manage the budget between Pillar 1 and Pillar 2 are reflected and up to date.

The EU direct payments provisions amended by this instrument will enable UK relevant authorities to continue to have the flexibility to decide whether to transfer funds from the direct payments budget to the rural development budget via an inter-pillar transfer. This inter-pillar transfer provision was available across the United Kingdom in previous years of the CAP and has been used by England, Scotland and Wales in those years, but was limited up to and including the 2019 direct payments scheme year. Defra had already intended to address that regulatory gap for the 2020 scheme year via domestic legislation. However, the EU has now decided to make an inter-pillar transfer provision available to member states for the 2020 scheme year. That decision came into effect via new EU regulation 2019/288 on 1 March 2019, and Defra has taken the earliest available opportunity to account for these changes through this instrument. This instrument will retain the valuable flexibility currently afforded to UK relevant authorities. This will enable direct payment and rural development funding levels for 2020 to be maintained in line with previous years.

For the common market organisation, this instrument amends provisions of an existing exit SI as regards marketing standards for mixes of fruit and/or vegetables and citrus fruit. The EU has recently undertaken some refinements of its regulations on marketing standards for fruit and vegetables to align the EU marketing standards with the latest United Nations Economic Commission for Europe marketing standards. It has also clarified that marking and labelling requirements for small packages of mixed fruit and/or vegetables apply equally to mixes of fruit, mixes of vegetables and mixes of fruit and vegetables. That update came into effect on 26 March 2019, and the version of the EU marketing standards regulation that will be retained in UK law on exit will include this update. We want to ensure that this regulation is operable in the UK at the point of leaving, taking this amendment into account. The updates made by this instrument are therefore only technical in nature, such as ensuring that labelling changes are applied consistently and updating references to other provisions. This will provide clarity to stake- holders.

Finally, we have used the opportunity provided by this instrument to make minor technical amendments to four EU exit statutory instruments relating to the CAP that were made by Defra between February and March 2019. By way of example, Regulation 3(3) of the instrument omits a duplicated provision. Regulation 6(2) amends a phrase in a non-operative section of a domestic SI describing a provision of retained EU legislation to ensure the terminology is consistent with the exit statutory instrument that amends the provision described as “appropriate authority” rather than “relevant authority”. Neither amendment has a practical implication; they merely tidy up the statute book. The other corrections are essentially of a typographical nature, such as use of the word “of” instead of “or”; taking account of different phrasing in the EU regulation; and correcting an instance where the text quoted in the statutory instrument does not match the text in the retained EU regulation.

I take full responsibility for the errors, and obviously I regret any error. As I have said before, my task is to ensure that everything is right. I assure your Lordships that we felt it better to attend to these, so that the statute book was perfection. I am being absolutely open when I say that we need to attend to them. I hope your Lordships will understand that I am always disappointed to have to offer my regrets about inaccuracies, but is it not far better to be straightforward? I beg to move.

[Baroness McIntosh of Pickering (Con)]

My Lords, I take this opportunity to thank my noble friend for bringing forward these regulations today. I also take the opportunity to thank his department, which had to deal with more statutory instruments in a record time to enable us to be prepared for what could still be the eventuality of Britain leaving the European Union with no deal. I know that this has been at some considerable human cost to his department.

My question relates to information from the new Minister for Agriculture in the other place, right honourable friend Robert Goodwill. As my noble friend alluded to in his introduction, the Minister set out the ability for inter-pillar transfers between Pillar 1 and Pillar 2. When this was considered in the other place, our right honourable friend stated that,

“inter-pillar transfers of up to 15% can be made from year to year”.

He went on to elaborate:

“England has availed itself of 12%, Scotland 9.5%, and Wales 15%—the full amount”.—[Official Report, Commons, Second Delegated Legislation Committee, 7/5/19; col. 8.]


As of that date, Northern Ireland had yet to avail itself of the transfer because of its particular circumstances.

What my noble friend has brought forward today will ensure that we will be prepared to leave. I congratulate him on his honesty in identifying the errors that were made, inevitably, in bringing forward so many statutory instruments in such a short time. What will be the position relating to Scotland, Wales and Northern Ireland in the run-up to and post 2020? I also welcome the commitment that funding will still be in place, as I understand it, until that time. What is the status of the framework agreement that will, presumably, come into place to deal not just with agriculture but with fisheries and a number of other areas relating to my noble friend’s work in the department? I understand that it will be the UK Government who will decide what the position is for agricultural policy at that time. At the moment, Scotland and Wales have been able to have a differential in the transfer between Pillar 1 and Pillar 2. Will they lose that flexibility going forward, either before or after 2020?

I intend, however, to give a fair wind to the statutory instrument before the House today.

Farming Communities: Rural Crime

Baroness McIntosh of Pickering Excerpts

Thursday 2nd May 2019 Lords Chamber

[Lord Gardiner of Kimble]

My Lords, I certainly will. As rural affairs Minister, I take the whole issue of the way in which rural communities are looked after very seriously. This is particularly important for isolated communities. The police resources allocation formula is a calculation that uses various data sources to share money between authorities. The formula predicts the relative workload or need for each category of police activity. As Rural Affairs Minister, I am keenly aware of the fact that there is a lot of work that can be done with rural communities, through working with the police and police and crime commissioners. I will certainly take this up with colleagues in the Home Office, because rural communities must be looked after.

[Baroness McIntosh of Pickering (Con)]

My Lords, would my noble friend take this opportunity to congratulate the work of what I think was the first rural crime task force, set up by North Yorkshire Police? Will he use his good offices to ensure that rural crime is given a higher priority by the Home Office?

[Lord Gardiner of Kimble]

My Lords, as I said to the noble Baroness, Lady Jones of Whitchurch, it is very much the case that we need to work with the Home Office. We work with it very closely and also work with the National Police Chiefs’ Council, on wildlife crime, for instance, and the National Rural Crime Network. Clearly, these rural crimes are devastating for rural communities.

National Policy Statement for Water Resources Infrastructure 2018

Baroness McIntosh of Pickering Excerpts

Thursday 11th April 2019 Lords Chamber

[Baroness McIntosh of Pickering (Con)]

My Lords, I welcome this debate and am delighted to follow the noble Lord, Lord Wigley. I declare my interests on the register. I co-chair the All-Party Parliamentary Water Group with the honourable Member Angela Smith in the other place. I also do some excellent work with the water regulator for Scotland—the Water Industry Commission for Scotland—and, through that, with WAREG. I am vice-president of the Association of Drainage Authorities and I am the recently appointed president of the NEA.

I am extremely proud of the work I have done with the Water Industry Commission for Scotland, through which we managed to achieve a contract for technical assistance with the Romanian equivalent regulator, under the auspices of the EU. Through WICS, I have worked with WAREG—the European association of water regulators—and have seen first-hand the importance of sharing best practice both between member states and between existing member states and applicant countries to the European Union.

I congratulate the Minister and the Government on producing this draft national policy statement and, in particular, on the collaborative way that they have worked with the water sector in producing it. It plugs the gap to boost water efficiency, originally as set out in the Walker review. It is interesting that it has taken this long for water efficiency to become the order of the day, but I welcome the recent initiative shown by the Environment Agency in this regard. Successive Governments have implemented the recommendations of the Cave review on competition and, in large part, the recommendations set out in the Pitt review for flood and water management.

I echo the importance that my noble friend has attached to infrastructure and resilience in that regard. I have a passion for SUDS, or sustainable drainage systems, which I hope my noble friend will share, and also for the building of more reservoirs. That begs a question, given that it is one of the remaining issues from the legislation that was set out between 2010 and 2015. I urge the Government to deal with the de minimis rule that is currently discouraging the greater use of reservoirs on farms, golf clubs and caravan parks. I notice that, both in the document and in the Minister’s remarks, the focus is especially—and, probably, quite rightly—on nationally significant infrastructure projects in the next three to five years. I urge the Minister and the department to look at the importance of smaller reservoirs, too, particularly in areas of increasing water stress, where the environmental impact will surely be much less—both in the building of reservoirs and their maintenance.

I entirely endorse the remarks that my noble friend made about leakage. About seven years ago, Yorkshire Water, under measures it signed up to during the last price review, invested in setting up a highly commendable leakage programme. The programme was set back by three days of sub-zero temperatures reaching minus 17 degrees. I defy anyone to be able to protect pipes from freezing at that temperature. I hope that the Minister and the regulator will look kindly on companies that operate under the additional burden of sub-zero temperatures. As I say, it is impossible to protect against leaks in such circumstances.

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[Lord Adonis]

The noble Baroness says we should end the automatic right to connect, but would that not create severe problems for new enterprises if they cannot be sure that essential infrastructure for them to operate will be available when they go about their lawful and proper activities? How does she see this issue being resolved if there is not an automatic right?

[Baroness McIntosh of Pickering]

I refer the noble Lord—who, given his previous roles, is much more knowledgeable on these matters—to the Pitt review.

How can we ask water companies already in areas of national stress—whether the north-east, where there are pockets of national stress, or the south-east and East Anglia, where we have heard that there are specific problems of water stress—to supply water and take wastewater away safely if they are not consulted and do not have the wherewithal? I have seen first-hand in areas such as Filey that new developments are built on fields that take displaced water—flood-water, essentially —and that water then goes into existing developments. I do not think future home owners should put up with that. Developers go in, build projects where there have been no sustainable drainage systems in place and walk away. We are creating something that I would like to see fixed once and for all—I am not discouraging new enterprises—by giving water companies the tools to do the job. Let us ensure that they are heard. Have we not seen that, once the Environment Agency secured the status of statutory consultee, its advice has been heeded much more rigorously than was ever the case in the past? I rest my case.

Finally, I urge my noble friend the Minister to give greater clarity to natural capital, what is meant by natural capital and what greater role it might play in water policy going forward.

REACH etc. (Amendment etc.) (EU Exit) Regulations 2019

Baroness McIntosh of Pickering Excerpts

Tuesday 26th March 2019 Lords Chamber

[Lord Krebs (CB)]

My Lords, I speak as a member of the EU Energy and Environment Sub-Committee, so ably chaired by the noble Lord, Lord Teverson, who has just spoken. I do not wish to repeat all the arguments that we have heard expressed so eloquently by the noble Lords, Lord Fox and Lord Whitty, but I want to ask a question which follows from what the noble Lord, Lord Whitty, said. I have assumed all along that there must be some secret benefit of establishing a separate parallel UK system which duplicates the European system. I have yet to find anybody who can explain to me what this benefit is. Therefore my first question to the Minister is: what is the benefit? Do tell us. Reveal all, so that we can all enjoy the warm glow of appreciation.

I move quickly from that very general point to a much more specific point, which has been alluded to already by the noble Lords, Lord Fox and Lord Whitty, concerning scientific evidence to support risk assessment. To me, it would be really dangerous in the future, for confidence, for UK consumers and for the viability of our chemical industry and all the products that depend on chemicals, if we had a divergence in risk assessment between the European system—run by the European Chemicals Agency—and the UK system. Think what that would mean if, on one hand, we were told by the other 27 countries that chemical X is not safe to use but, on the other, we were told by our own national system not to worry about it and that it is safe. That leads us to the key question: how will these risk assessments be carried out? The SI does not provide for the replication of an independent standing committee of experts to carry out risk assessment.

We have asked Minister Coffey about this on more than one occasion. Just last week, on 19 March, in response to the question of why we cannot replicate the committee structure, she replied—if I can read her writing—that we want to ensure that,

“the HSE will have access to the best advice and would not be limited to the UK or even the EU—setting up a statutory committee is likely to reduce that freedom”.

Why does having a statutory committee reduce the freedom to seek advice from other experts? At one stage, I had the pleasure of serving as the chairman of the Food Standards Agency. We had numerous statutory committees advising us on novel foods, on microbiological safety, on nutrition and so on. But that did not prevent us seeking other expert advice, where necessary, from people who were not on those statutory committees. I simply fail to understand the logic.

Furthermore, whatever system the HSE has for providing risk assessment, what is key to public confidence is transparency. There is no point in the HSE coming up with a risk assessment that says “This is safe” or “That is not safe” if the public, NGOs or scientists in the academic community and elsewhere cannot understand in a fully transparent way how that decision was reached. One thing that has happened in many of the statutory advisory committees elsewhere in government—led, I believe, by the Food Standards Agency back in the early part of this century—is that these committees meet in public. People can actually see what the evidence was, what the arguments were and how the decision was reached. Can the Minister assure this House that whatever mechanism the HSE uses—and I certainly think it should have an independent statutory committee—its decisions will be fully transparent, and that the decision-making group will meet in public so that people can see how the decision is made?

I have focused on one minor detail, although I think it quite an important one, of the many concerns raised by the Select Committee that I sit on, as well as by the noble Lords, Lord Fox and Lord Whitty. Finally, I remind the House how pervasive chemicals are in our lives. It has already been pointed out that this is about not just the chemical industry but all the industries that depend on chemicals, whether for motor manufacturing, toiletries or furniture and so on. There is a food chain in this country—many noble Lords may even have bought food from this outlet—which claims that its food contains no obscure chemicals. There is a risk that it contains nothing at all because food is nothing but chemicals, and some of them are obscure. This is fundamental to everything in our lives and how we regulate the safety of chemicals is of absolute paramount importance to everything we do, including the food we consume.

[Baroness McIntosh of Pickering (Con)]

My Lords, it gives me great pleasure to follow the noble Lord. I can speak only for myself, as I find that I am not on a committee so I have no expert knowledge in this regard. However, I pay tribute to the work done by the Secondary Legislation Scrutiny Committee in its 15th report, which I will refer to.

I know why this statutory instrument is being prepared; my noble friend the Minister set that out clearly in his opening remarks. In the impact assessment, the policy objective in paragraph 14 sets out the terms of the political declaration on the future relationship between the UK and the EU. Perhaps my noble friend can put your Lordships’ minds at rest this afternoon by showing that we will seek more than just a UK-EU free trade area for goods. The difficulty of our meeting to consider this two days before we were due to leave the European Union is that as we do not yet know the circumstances of our leaving, until the House of Commons has taken a view in this regard, we do not know whether we are leaving with no deal or whether there will be a transitional arrangement. In the event of the Prime Minister’s deal being agreed by Parliament, can my noble friend say how Defra and the Government intend to use a possible transition period to ensure continued co-operation between the UK authorities and EU agencies such as the European Chemicals Agency?

I agree with all those who have spoken on the questions raised in this 15th report about additional admin and the potential costs, and I have one request of my noble friend: since the report is strongly worded, and since neither the Expansion Memorandum nor the impact assessment have set out the costs and financial implications, it would be very helpful if he would set those out this afternoon.

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[Lord Teverson]

I absolutely endorse that: we often think of this industry as dominated by large corporates and internationals; it is not. There is a huge SME sector which is just as important in this.

[Baroness McIntosh of Pickering]

I am most grateful.

In paragraph 17 of the 15th report the department is recorded as replying to one of the concerns thus:

“Should it become clear that we are in a ‘no deal’ scenario, staffing levels will be scaled up as required over a period of several years, allowing time for recruitment and training”.


The question has to be asked: as we are on the eve of a potential no deal, what is the position now and how far advanced are we with the scaling up? Are the officials coming from the industry and from other departments? What certainty can we have that the officials who are being asked to prepare for exit day under no deal are in place and have the knowledge in this regard?

My heart sank when my noble friend said that the dedicated IT system had been tried and tested and was ready to go. Successive Governments have found themselves in an embarrassing situation where we have a new, swanky IT system in place, it has been tried and tested and is ready to go, but it has proved to fail. I think the two examples I am going to choose actually reflect badly on my own Government. One relates to the Rural Payments Agency, where we not only introduced a new system of farm payments but, at exactly the same time, introduced a new IT system which had been tried and tested—and failed. The other IT system that caused great distress throughout the country was rolled out by the Child Support Agency. Again, we had a new IT system that had been tried and tested and proceeded to fail, with devastating consequences for families across the country. I hope that my noble friend will be proved right that this IT system is indeed ready to go.

At paragraph 27 of its 15th report, the committee raises concern about the possibility of failure and disruption:

“We remain concerned … that there may be disruption to the UK chemical industry, supply chains and wider economy as a result of new requirements to register chemicals from the EU after exit”.


That is certainly something noble Lords would wish to be satisfied on this afternoon.

My final point is that the House is incredibly grateful to Secondary Legislation Scrutiny Sub-Committee B for its work in preparing us for this debate on a very important SI.

I am rather concerned that the noble Lord, Lord Fox, might be at my dinner. We were at breakfast together this morning, as indeed was my noble friend Lady Byford and a number of others. We are now together—almost—post-lunch. I pray that we might be at dinner together this evening, but perhaps we might both have a reprieve. He mentioned the need for reassurance about ongoing consultation, and that all the groups are united. It is quite a challenge to unite such disparate groups as the Green Alliance and the broader environmental groups, the health companies, the animal rights charities and indeed the chemical industry. I conclude by asking my noble friend to give the House an assurance that the consultations are indeed ongoing and will continue throughout any transitional period.

[Viscount Hanworth (Lab)]

My Lords, much of what I intended to say has already been said, and said very well. Nevertheless, I will add further testimony that reaffirms the comments of my committee colleague, the noble Lord, Lord Teverson.

The experience of serving on the Energy and Environment Sub-Committee of the European Union Committee has highlighted a crisis in government that affects both politics and administration. Modern government is highly complex. Mundane matters of daily life and of trade are surrounded, as they must be, by regulations and legislation, and it can take a great intellectual effort to understand all the circumstances. Minor incremental changes to legislation can usually accommodated. If a small mistake is recognised, the matter can be amended. The changes proposed by the Brexit agenda are of a very different order. In this connection, Ministers and their civil servants have often had only a tenuous grasp of the matters at hand, and they have sometimes demonstrated before our committee an astonishing oversight.

The EU REACH regulations have proved to be a case in point. Here, we face some of the perplexities and absurdities of the Brexit agenda. It has been unclear whether under any circumstances the UK could continue after Brexit to remain a member of the REACH organisation, albeit that this has never been clear until recently.

The initial proposal put to our committee by the Minister in charge, who was flanked by a Civil Service adviser, was that the establishment of a UK REACH system—or a “BREACH” system, as we have heard it called—could be achieved easily by cutting and pasting the contents of the REACH database, which is owned by the European Chemicals Agency, into our own national database. It was pointed out to them that this was not generally possible. The information in the REACH database is also owned by commercial enterprises that have contributed to it. Some of it is subject to commercial secrecy. The data would have to be acquired via negotiations. Moreover, given that the data is often subject to joint ownership, such negotiations would be difficult and protracted.

In effect, the ambition of the Brexit agenda has been to acquire the fruits of a co-operative enterprise without having to co-operate with others. It has become clear that, in order to remain in business, UK companies will have to transfer their registrations to European Union-based companies, or parties, at least. They will have to bear the cost of registering with both the UK and the European Union. Moreover, unless they already have a presence in the European Union—other than in the UK—they will be depending for such registrations on the good will of rival enterprises. This is hardly a case of regaining national control.

The preponderance of the output of our chemical industry is exported. Some 61% of our chemical exports went to the European Union in 2017, and 73% of our chemical imports came from the European Union. If the Brexit agenda is fulfilled, we shall be looking at the likely demise of a significant British industry.

The chairman of our committee wrote to the Minister expressing our anxiety at the lack of preparation for these eventualities. In reply, the Minister told us that there has recently been a flurry of activity aimed at alerting industry to the need to prepare for Brexit. It is difficult to measure the extent of these activities, but it is clear that Defra has had other things on its mind.

This brings us back to a point that has already been made. The Conservative Party is in favour of small government and light-touch regulation, yet it has proposed changes far beyond the capacity of politicians and civil servants to accommodate. Its maladministration of the nation’s affairs amounts to an utter dereliction of duty.

Plant Health (Amendment) (England) (EU Exit) Regulations 2019

Baroness McIntosh of Pickering Excerpts

Monday 25th March 2019 Grand Committee

I have the highest regard for what the Minister says and for his sincerity in his commitment to ensuring biosecurity for our country, but even though the staff and the Minister have said that is no additional risk on biosecurity, there are concerns if we send out all these consignments to be inspected at premises around the country. If they are found to be carrying pests or diseases, how are they to be destroyed without spreading further the risks that they have brought in? I know that all of us in this Committee will be concerned about that issue.

[Baroness McIntosh of Pickering (Con)]

My Lords, I congratulate my noble friend on bringing these two instruments before the Committee this afternoon. I am also grateful to him that Fera will be involved in this, since he will recall that Fera is in the Thirsk and Malton constituency. As a slightly amusing story, I remember seeing a beetle at Fera that had been extracted from a wooden bed. It had been quite scary for a honeymoon couple to have heard its constant scratching. Finally, the morning after their nuptials, they called the hotel staff in and found out that the beetle had been imported within the wood that the furniture was made from. It was obviously more company than they had bargained for. I yield to no one in my admiration for the work that FERA does.

I have a couple of questions for my noble friend the Minister. My noble friend Lady Byford referred to plant health and pests in the air. What shocked me and colleagues on the EFRA Committee in the other place in the midst of the ash tree dieback was the fact that we were exporting seeds to be sown in parts of Europe such as, dare I say, Denmark—I am half Danish, so there was obviously some embarrassment—and Poland, which then grew these ash trees. We then reimported them to the UK as saplings with the Chalara fungus; I will not even try to say its name. We were reintroducing the ash tree saplings to this country with that disease. Can my noble friend give the Committee a reassurance that, under the arrangements set out in the statutory instruments today, that will not happen and that we will continue to update the list of species at risk which fall under these regulations on plant health and biosecurity? As the EU continues to amend that list, in the event of no deal will we share the information on our list as we go forward? Will we update our list with any updates to the EU list as well? I am sure that my noble friend will say that that is a matter for negotiation. Will he please make it a priority for our negotiations?

It is obviously of some concern that the threat is not just from dieback to ash trees. Currently, horse chestnuts, pines and other trees are also threatened. Have we learned nothing from elm disease? Kew Gardens and the arboretum at Castle Howard fulfil a national role in making sure that we continue to have seeds which we hope will be free of these diseases. Can my noble friend reassure the Committee that there will not be any threat in future?

In the Prime Minister’s Statement in the other place, there was a lot of talk about the Irish border and the arrangements in Ireland. At the moment, there is no Northern Ireland Assembly. We understand that this issue was raised for the first time two weeks ago by the Minister’s Defra colleague in the other place, particularly in respect of the arrangements for his department. There are going to be no checks at the borders on plant health, but they will be, as it states, in some internal location. Is this entirely sensible when we are dealing with something as fundamental as plant health and biosecurity? If there is an alert for a particular plant disease, should we not reimpose checks at borders for this purpose to make sure that we keep the national biosecurity safe?

In the smaller regulation as I shall call it—the Plant Health (Amendment) (England) (EU Exit) Regulation—paragraph 2.3 of the Explanatory Memorandum sets out obligations,

“for the control and management of plant health risks”,

for the import of plant material from third countries and the movement of such material,

“within the EU single market”.

Given that our position will be that of a third country, can we clarify what the status will be for plant movements between here and the EU?

On page 21 of the SI, Regulation 19 refers to,

“Prevention of the spread of tree pests: England”.

Again, can we ensure that there will not just be plant passports, as it goes on to say, but physical checks, if there is reason to believe that there is a specific threat? At the moment, we know of threats to three particular tree species. We need to be careful and to understand what our status will be in relation to the EU if we crash out and leave with no deal.

I hope that we can give these instruments a fair wind, but both instruments raise a number of issues of potential concern to the biosecurity and plant health of this country.

[Baroness Young of Old Scone (Lab)]

My Lords, as several noble Lords have pointed out, plant health is a vital issue. I declare an interest as chairman of the Woodland Trust.

Pressure from introduced diseases and pests is serious and growing. Already there has been reference to the publicity surrounding ash dieback, which could kill off 80% of our ash trees and change the nature of our countryside and hedgerows. I am sure that noble Lords—particularly those of my age—will recall the devastation from Dutch elm disease. “You haven’t seen anything yet”, because poised and waiting to come over are killers such as xylella fastidiosa, to which the Minister referred. This is a Darth Vader of plant disease. It could infect a whole range of species of plant and trees. The noble Baroness, Lady McIntosh, talked about three species that are under threat. In reality, it is pretty well true to say that every native tree species is at risk of pest or disease. So plant health needs to be taken very seriously. I thank the Minister for his explanation of these two regulations and for the briefing meeting he set up with himself and senior Defra officials.

The regulations are indeed intended to replicate the current arrangements in Europe, but they contain some differences and illustrate some serious issues. First, as has already been noted, they move the line of defence against the risk of the importation of disease from the port to the importer’s premises in the case of regulated material from third countries. The new process means that the premises of these importers of regulated plants and trees will have to have their process authorised and provide specific inspection facilities, which will then be subjected to a yearly audit. As the noble Baroness, Lady Parminter, said, Defra has estimated that between 80 and 100 premises may want to be authorised, but authorisations opened before Christmas and only 33 have gone through the process so far. There is a way to go in achieving readiness. Can the Minister tell us what his department is doing to ensure that all those who need to be designated will be designated in time, whenever “in time” might mean?

I must admit that I was concerned that, in the interests of not gumming up the ro-ro ports and creating friction in the trade process, we would no longer stop and check these materials at ports. I was assured by the Defra chief plant health officer that the plants and trees concerned would be transported in bonded conditions so that the disease could not be spread in transit before they had been checked. Can the Minister assure us that such bonding or sealing provisions, as he called them, will work so that there is no risk of trailing pestilence across the country in the interest of simply avoiding embarrassing queues at the post-Brexit ports?

Once the plants and materials are held in authorised premises, they will need to be inspected by the Animal and Plant Health Agency before they can be moved and distributed. As has already been noted, that will require more staff, including additional plant health inspectors. Support staff will also be needed to manage the uplift in the number of phytosanitary certificates required to ensure that exports from the UK to the EU can be handled. The noble Baroness, Lady Parminter, referred to that. Defra kindly provided us with figures showing that an additional 117 plant health inspectors and support staff, and an additional five Forestry Commission inspectors, will be recruited. This is a virtual doubling of the workforce. Can the Minister tell us the estimated cost of this new regime? It sounds expensive. Simply doing some sums on the back of a fag packet indicated that the staff alone could cost upwards of £3 million. The public are wholly unaware of these sorts of costs when making their minds up about the value, or otherwise, of Brexit and its variants—so much for the Brexit dividend.

Of course, we are only one country, even if we are four nations. Much depends on effective arrangements being in place—particularly in Scotland, which will subject to separate legislation. Can the Minister tell us whether that legislation has been passed in Scotland and, if not, when it will be passed?

The Minister referred to a new criminal offence being created to provide an enforcement mechanism in the event of failure to comply with a notice issued in respect of a demarcated area. Your Lordships will remember that the House expressed concern about the creation of criminal offences by statutory instruments during consideration of the then EU withdrawal Bill. While this new criminal offence does not count as a relevant criminal offence under the Act, can the Minister confirm the maximum penalty for the offence?

Of course, the new regime deals only with legitimate trade, although the Minister is of the view that it will provide more information for traceability should an outbreak take place. The Minister assures me that the Animal and Plant Health Agency is hot on the tracks of any illegal imports, and I assure the Minister that the agency is regularly under-cover as a mystery shopper at car boot sales in car parks.

These SIs basically recreate a slightly less satisfactory UK regime to replace the existing EU regime for plant health. At heart, this is a lipstick-on-a-pig situation—you can put lipstick on a pig, but it is still a pig. The scale and threat of plant and tree disease is increasing. In general terms, the Government’s policy for all but regulated materials is of surveillance to spot infestations early once introduced to this country and contain them with vigour. This does not keep out pests and diseases and is insufficiently robust to tackle the current and future threat. Brexit has few merits in my book, but one of them would come into play in this instance: as part of reclaiming our borders, we would have a chance to do a New Zealand or an Australia and adopt a policy of no entry for any plants and trees unless they are demonstrably disease and pest free. If that were in conjunction with a major push for plants to be UK sourced and grown, to reduce the need for imports and to give a valuable boost to the UK nursery trade, that would genuinely be in the spirit of Brexit—I never thought that I would use those words.

I look forward to discussions with the Minister on how we can improve the plant health regime in the context of the forthcoming biosecurity strategy.

Brexit: Farming Tariffs

Baroness McIntosh of Pickering Excerpts

Tuesday 19th March 2019 Lords Chamber

Asked by

[Baroness McIntosh of Pickering]

To ask Her Majesty’s Government what assessment they have made of the impact of their proposed tariffs in the event of a no-deal Brexit on farming in the United Kingdom; and when such tariffs would expire.

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Gardiner of Kimble) (Con)]

My Lords, I declare my farming interests as set out in the register. In developing their tariff policy, the Government considered the interests of consumers and domestic producers. In agriculture, there will be tariff rate quotas for beef, poultry, sugar and rice, as well as tariffs for lamb, pigmeat, butter and cheddar-type cheeses. Further tariffs will be retained on products such as bananas, where preferential access to the UK market is important for developing countries. This tariff regime would apply for up to 12 months.

[Baroness McIntosh of Pickering (Con)]

I thank my noble friend for that Answer. While I welcome these protections, I ask my noble friend why beef, lamb and dairy have been included but not eggs, cereals and horticulture, and why whole-animal products have been included but not specified meat cuts, which is the norm. Could he confirm that discussions were held with the Irish Government before the tariffs were announced and that approvals have been obtained from the World Trade Organization?

[Lord Gardiner of Kimble]

My Lords, the Government have sought to bring forward a balanced approach, which in part follows the five principles set out in the Taxation (Cross-border Trade) Act 2018. The first two are the interests of consumers in the UK and those of producers in the UK. We were conscious in our considerations that this would be a temporary tariff regime in the event of no deal—which I emphasise we do not wish—and that there were areas where we wanted to get the balance right in protecting sensitive sectors, such as the sheep sector, while there were other areas where though that prices to the consumer were also important.

We will obviously take very seriously our obligations under international law. We have taken into account the unique social, political and economic circumstances of Northern Ireland. I was not party to any discussions because that would be for other departments, but it is clear that in the event of no deal there would have to be immediate contingency arrangements and urgent discussions with the Irish Government and the Commission.

Environment, Food and Rural Affairs (Amendment) (EU Exit) Regulations 2019

Baroness McIntosh of Pickering Excerpts

Wednesday 13th March 2019 Grand Committee

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Gardiner of Kimble) (Con)]

My Lords, these regulations group elements of six policy regimes: natural mineral waters, spirit drinks, food labelling, wines, genetically modified organisms and animal imports. The purpose of this statutory instrument is to make purely technical or operability corrections to ensure that these regimes continue to function as intended. These corrections deal with removing or amending references to EU directives, removing or amending EU references, converting EU procedures to UK procedures and transferring EU functions to the UK.

This instrument allows the recognition of existing natural mineral waters from the EU, Iceland and Norway to continue on a transitional provision for at least six months, thereby maintaining the status quo immediately before exit day. This instrument also provides power to the Secretary of State to withdraw recognition of existing EU natural mineral waters after a period of notice if the EU was not to reciprocate and recognise UK natural mineral waters. Of course, we hope that the EU will recognise our mineral waters in good faith, as indeed we are doing.

With the exception of the Secretary of State’s powers over recognition of natural mineral waters, this instrument makes no further substantive changes. Without this provision, existing natural mineral waters which obtained recognition in or by a member state in the EEA would not have the right to be legally sold in England, irrespective of the Secretary of State’s powers to regulate this field. That would lead to restricted consumer choice in the UK, where one in three bottles of natural mineral water are of EU origin, and changes to product prices due to market forces. We have therefore taken a pragmatic view on that matter, and it is necessary that we do so.

The statutory instrument will also ensure that we have a fully functioning scheme for spirit drinks’ geographical indications, allowing us to register and amend applications. This is particularly important for Scotch whisky, which in 2018 had a record £4.7 billion-worth of exports. Although these exports would not directly be put in jeopardy without this SI, the industry would lose the ability to amend the Scotch whisky technical file to better reflect industry practice. The technical file is the document which provides the technical specifications for products using the Scotch whisky GI name: for example, production process, geographical area, specific labelling rules and so forth. This SI amends the applicable regulation to transfer functions from the European Commission to the Secretary of State.

On food labelling, this SI transfers a series of legislative functions which are currently conferred upon the European Commission so that they will instead be exercisable here in the UK. Transferring the functions means that we can make important changes concerning how certain pieces of information can be presented to the consumer. These powers currently sit with the EU Commission and ensure that we would not require new primary legislation to, for example, update the list of allergens that must be labelled on prepacked food or change the way that nutritional values are presented.

The SI also transfers the power to make rules for the production processes used to make aromatised wines, as well as rules on methods of analysis and administrative and physical checks, and transfers powers on wine relating to GI applications from the EU to the Secretary of State. It allows us to update laws in relation to the production and analysis arrangements for aromatised wine by means of regulations. It will also enable us to consider applications for new wine GIs and deal with applications to amend and cancel wine GIs on the UK wines GI register. Without doing so, key aspects of our wine quality policy would become inoperative, which would put us in breach of the WTO provisions. It also rolls over the framework for how producers protect geographical indications for aromatised wines, as well as the mechanisms to control the production and use of those geographical indications.

For genetically modified organisms, the SI makes purely technical changes to keep legislation operable on exit. I emphasise that there are no policy changes. It makes operability changes to transfer existing powers from the EU to the Secretary of State, thereby allowing the Secretary of State to develop technical statutory guidance on sampling and testing for the presence of GMOs, to amend the threshold above which products must comply with traceability and labelling requirements, and to apply unique identifying codes to GMOs. This will ensure that we can continue to enforce the rigorous rules governing genetically modified organisms.

Finally, this SI amends animal health provisions. It makes operable provisions relating to the import of cattle semen, pig semen and horse semen, ova and embryos. These amendments are purely technical, and preserve the current regime for imports and for protecting the UK’s biosecurity. The SI also makes minor operability amendments to two other animal health provisions, one laying down a health certificate used to ensure the health status of certain imports of live animals and products of animal origin, and the other making provision for the appropriate UK authority to publish approved lists of border inspection posts relating to the movement of animals and animal products. In both cases, the amendments are minor and technical and do not introduce any new policy.

Defra has consulted the devolved Administrations on the amendments in this instrument and they have consented to its coming into force. The instrument concerns changes for the United Kingdom except as regards natural mineral waters—those apply only to England—and decisions on GMOs, which are a devolved matter for Wales, Scotland, and Northern Ireland. As the natural mineral waters amendments apply only to England, each devolved Administration would have to provide their own equivalent amendments to their respective natural mineral waters regulations. We expect the devolved Administrations to mirror the same policy position, but they have yet to lay their respective provisions in legislation.

Amendments made to Regulation (EC) No. 1830/2003 on the traceability and labelling of genetically modified organisms will apply to the UK. They respect that decisions on GMOs are a devolved matter.

The natural mineral water policy decisions were subject to a public consultation, which ran from 16 October to 13 November last year. Defra engaged all major stakeholders in the process throughout 2018, from individual companies to industry bodies. We have also written to the main stakeholders to explain the implications of the instrument.

These measures will ensure that the policy regimes for natural mineral waters, spirit drinks, food labelling, wine, aromatised wine, GMOs and animal imports remain able to operate. With the exception of natural mineral waters, where we have consulted extensively, this instrument makes technical or operability corrections ensuring that these regimes continue to function as intended. I beg to move.

[Baroness McIntosh of Pickering (Con)]

My Lords, I welcome the regulations, and given my heritage—born in Edinburgh—find particularly pleasing those concerning Scotch whisky exports, which obviously boost trade for the whole country.

From my Question earlier this week, the Minister will be aware of my interest in traceability and labelling. Unfortunately, we did not have time to explore it then. I am grateful to him for setting out the thrust of the statutory instrument. He went to some length to explain that this instrument is technical in nature and makes no public policy changes, but he will be aware of the fact that the 19th report of Sub-Committee B of the Secondary Legislation Scrutiny Committee states very clearly that the regulations give rise to issues of public policy likely to be of interest to the House. Therefore I am grateful that we are having the opportunity to debate them today.

North Yorkshire is still smarting from the fact that Shepherds Purse Cheeses used to produce a very popular cheese called Yorkshire Feta, which, not being produced in Greece, fell foul of the GI, and so for a time was called Yorkshire Fettle. To my embarrassment, I am unsure how it is marketed now.

Can the Minister provide an assurance that we will continue to follow the Cocoa and Chocolate Products (England) Regulations 2003? I do not necessarily blame the Government for the volatility of the pound, but we have seen changes to the pound since the result of the referendum was known, and, over the last two weeks, increasingly volatility. This has huge implications for cocoa and chocolate products. The Minister will be aware, for example—without naming a producer, because other products are available—that we tend to introduce milk chocolate here with a lower cocoa content and a higher oil vegetable fat content. I am seeking an assurance that we will continue to be aligned with the European Union rules regarding cocoa and chocolate products, and in particular, their content, insofar as these regulations relate to that.

[Baroness Byford (Con)]

I thank the Minister for introducing the first of these amendments. I have two issues that I should like to follow up on. The first is about geographical indication. I see from the brief that the UK has some 86 product names already in being; it cites Scotch whisky, Welsh lamb and Cornish pasties. I would love to have had Stilton cheese and Melton Mowbray pork pies in there, coming as I do from the Leicestershire end. Can the Minister clarify that this will in no way restrict new products from becoming listed?

Secondly, I am grateful for what he said on the GMOs, and accept the importance of labelling. But again, looking to the future with the same rigour, I trust that new developments will not be precluded. Again, I should like some clarification, but I welcome this amendment.

--- Later in debate ---

[Lord Gardiner of Kimble]

My Lords, I am most grateful for all the comments that have been made. I agree that they cover issues beyond the statutory instrument, which, as I said, enables regimes to be operable. The subject matters are very important. I can say immediately to my noble friend Lady McIntosh and the noble Baroness, Lady Jones of Whitchurch, that, yes, we will continue to follow the Cocoa and Chocolate Products (England) Regulations 2003. Of course, the whole proposal for beyond this afternoon’s debate is that we are not seeking, with these SIs coming through the withdrawal Act, to have any policy changes at all. We will continue with that.

On the question of geographical indications, on which a number of points were made, I entirely agree with my noble friend Lady Byford that, perhaps of the 86, Stilton was definitely most worthy of comment. However, I think that all of us, and beyond, recognise that we have some extraordinarily wonderful produce from all parts of the United Kingdom. We should celebrate them. I assure your Lordships that the GI schemes that will come into force in the UK on the day that we leave the EU will guarantee that UK GIs will remain fully protected in the UK. There is absolutely no question that suddenly these extraordinarily important products would have to share their centuries-old heritage with others.

The forthcoming GI legislation will also ensure that the UK continues to comply with these obligations as a member of the World Trade Organization, including under the TRIPS agreement on intellectual property. That is vital in empowering the UK to strike new trade deals with other countries, a number of which are due to come into force on exit day. Yes, we wish to cherish the GIs that we have, but we also see every merit—I am sure that this is the case around the world—in ensuring that there is scope for new produce to be a celebration of wherever it comes, as in this country.

A number of points were raised on GMOs. Although this is about operability, a number of your Lordships raised the issue more generally. An important point was made about the ability to make changes to allow the UK to keep pace with technological advances and labelling requirements in the international arena. It is important that we are in a position, through this SI and beyond, to ensure that we can attend to any necessary changes. The devolved Administrations may make their own amendments or, as we have often seen with these SIs—I think that this will continue—the Secretary of State may do so on DAs’ behalf with their agreement.

The noble Baroness, Lady Jones of Whitchurch, asked about expertise in this area, as did the noble Lord, Lord Trees, my noble friend Lady Byford and the noble Baroness, Lady Bakewell. The current situation is that the European Food Safety Authority issues an opinion on an application. For the UK, the EFSA opinion is considered by the Advisory Committee on Releases to the Environment. ACRE is a statutory body of experts providing independent scientific advice to UK Ministers on potential risk to the environment caused by any GMO.

To emphasise the importance of the scientists involved, I can report that ACRE comprises nine independent scientists with expertise in a range of disciplines, including ecology, microbiology, entomology, soil biology and biochemistry, plant pathology, genetics and plant biochemistry, medical microbiology and human infection, molecular biology, genomics and systems biology and synthetic biology. The Food Standards Agency considers the application in terms of safety as food and feed. ACRE’s advice informs the UK’s vote from the environmental perspective. That is how it has been, with that statutory body of experts.

Going forward, EFSA’s opinions are publicly available, so we will continue to have access to them, and ACRE will continue to advise the UK Government on the environmental aspects of applications made for, for example, any GM crop. The final decision will now be made, as I say, in the United Kingdom, but I emphasise that the Government place the greatest importance on environmental protection, all of it based on independent scientific expertise of the range that I outlined—I am sorry that it took a little time, but I wanted your Lordships to know that the range of expertise covers almost every area that could be interconnected with these matters.

The noble Lord, Lord Trees, raised the question of inspections. On imports from the EU, we have decided that the risk will not change on day one. There may not be reciprocity but we will not change our arrangements, because we do not believe that there are any new risks to UK biosecurity. The only additional inspections that we will have for imports will apply to live animals, animal products and high-risk food and feed not of animal origin that originates from a third country and travels through the EU before arriving in the UK. We are considering options to minimise regulatory duplication for transits entering the UK via the EU, and I confirm that there will be no change to the level of expertise required at UK BIPs. We are conscious of the flow of trade, but we need to base all our judgments on biosecurity risk as well. The Chief Veterinary Office, who constantly advises me and the Government on such matters, is absolutely clear that there is no risk.

The noble Baroness, Lady Jones of Whitchurch, and the noble Lord, Lord Trees, raised a number of other points. I absolutely understand the sensitivities of the Northern Ireland issue. I emphasise that we remain focused on securing a deal that will guarantee no hard border. We have always been clear that the unique social, political and economic circumstances of Northern Ireland must be reflected in any arrangements that could apply in a no-deal scenario. In the event of no deal, we will do everything possible to avoid a hard border between the north and the Republic and to uphold the Good Friday agreement. Therefore, today we confirm a unilateral approach to checks, processes and tariffs. That approach will of course be temporary, but if there is no deal we will not introduce any new checks or controls on goods crossing from Ireland to Northern Ireland, including any new customs declarations for goods.

I obviously hope very much that the same will be reflected by the EU and the Republic but, as I said during Questions earlier this week, a deal involves two parties. In making that pragmatic decision, we have behaved correctly. We have been told that there will not be reciprocity on natural mineral water, but we took the view that we would continue to accept it from the EU. Yes, that recognises consumer choice but it is important to recognise our pragmatic approach. There is absolutely no intention to see some trade war or dispute emerge. We are clear that the Secretary of State has the ability to withdraw recognition but, in practical terms, with this SI and beyond we have seen a collaborative approach between all home countries. That is the point rightly raised by the noble Baroness, Lady Jones of Whitchurch. After the guaranteed first six months of rolled-over recognition, all the home countries would need to agree—I hope that it will not be the case, but this is the provision—that there might be a time to give notice, as stated in the instrument, and how long that notice would be. Again, I say that the UK has been pragmatic and certainly does not seek anything other than a meaningful and strong relationship in this case, the drinking of natural mineral water. I absolutely endorse what the noble Baroness said: I find it curious how much water we import. Think of the imported water miles, when we have Buxton, Highland Spring and Welsh water—

[Baroness McIntosh of Pickering]

And Harrogate Spring Water.

--- Later in debate ---

[Baroness Jones of Whitchurch]

I am sorry to interrupt the Minister as he gathers his final thoughts, but it was remiss of me, since we strayed into the science of GMOs, not to have declared as interest as the chair of Rothamsted Centre for Research and Enterprise, part of Rothamsted Research, which does research into GMOs.

[Baroness McIntosh of Pickering]

I am a member of the All-Party Group on whisky and food, do receive hospitality, and had dinner with a chocolate company, which was not concerned by what we have discussed today.

Rural Development (Amendment) (EU Exit) Regulations 2019

Baroness McIntosh of Pickering Excerpts

Wednesday 13th March 2019 Grand Committee

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Gardiner of Kimble) (Con)]

My Lords, it is appropriate that I declare my farming interests, as set out in the register. The matters in the four instruments are closely interrelated; I hope it will be helpful to your Lordships if I speak to all four together. These instruments amend retained EU law and domestic legislation to ensure that rural development payments and maritime and fisheries payments can still be made after exit day. These amendments will maintain the effectiveness and continuity of EU and domestic legislation that would otherwise be deficient following our exit.

These changes are necessary to enable rural development programmes, partially funded by the European Agricultural Fund for Rural Development, and the maritime and fisheries operational programme, partially funded by the European Maritime and Fisheries Fund, to continue operating effectively in the United Kingdom following exit, until their closure at the end of the 2014-2020 programming period. There will be an opportunity to consider the scheme-specific regulations for the European Maritime and Fisheries Fund at a later date, as these are made operable in the Common Fisheries Policy (Amendment etc.) (EU Exit) Regulations 2019.

There are currently four rural development programmes operating in the UK, one in each Administration, providing funding for rural businesses, farmers, land managers and applicants living in a rural community with the intention of growing the rural economy, increasing productivity and improving the environment. The maritime and fisheries programme is UK-wide and promotes growth in the sector by providing funding for sustainable fisheries, marketing and processing and sustainable aquaculture, among other matters.

There are two European funds relevant to these instruments: the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund. The former supports the delivery of rural development in the UK and is worth some £430 million per year over the programming period. The latter promotes a competitive, environmentally sustainable, economically viable and socially responsible fisheries and aquaculture sector, which is worth some £32 million per year. The UK Government have guaranteed that any projects funded from the 2014-2020 allocations from these funds will be funded for their full lifetime.

The changes made by these instruments are necessary to ensure that the Government guarantee can be honoured and payments can continue to be made to agreement holders using domestic funding in place of funding from the EU. They provide certainty to individuals and businesses currently receiving rural development and maritime and fisheries funding or considering applying for funding during the current 2014-2020 programming period.

The Rural Development (Amendment) (EU Exit) Regulations 2019 amend the EU regulation that provides the general rules and structures governing support for rural development, providing payments to be made to agreement holders and laying down rules on programming, networking, management, monitoring and evaluation.

The Rural Development (Rules and Decisions) (Amendment) (EU Exit) Regulations 2019 amend the implementing and delegated provisions made under the main rural development EU regulation and four implementing decisions approving the rural development programmes for each of the devolved authorities.

The European Structural and Investment Funds Common Provisions (Amendment) (EU Exit) Regulations 2019 amend the EU regulation that sets out the shared framework for all the European structural and investment funds, but only as far as applies to rural development and maritime and fisheries.

Finally, the European Structural and Investment Funds Common Provisions Rules etc. (Amendment etc.) (EU Exit) Regulations 2019 amend the supplementary provisions for European structural and investment funds for rural development and maritime and fisheries that are not dealt with elsewhere.

I emphasise that all these instruments remedy the deficiencies in the regulations to ensure that they continue to operate effectively when we leave. They do not introduce new policy, are technical in nature and preserve the current regime for supporting rural businesses, environmental land management and sustainable fisheries, among other matters. The amendments include omitting deficient references to the European Commission and member states and replacing them with references to either the UK or the relevant authority, as appropriate. The instruments also amend references to “Union law” throughout, so that the relevant EU regulations continue to operate effectively as part of national law. Provisions that are deficient because they are time-limited and under which the relevant actions have occurred have also been omitted, such as provisions relating to ex ante evaluations that have already been completed and provisions relating to prefinancing paid out when the programmes were initially set up. In addition, references to European institutions such as the European Investment Bank are also omitted.

One purpose of these modifications is to ensure continuity and clarity as to which public bodies have responsibilities towards the programmes. The obligations and discretions placed on member states will continue to be exercised after exit by relevant authorities in the UK. In this context, “relevant authority” means: the current managing authority of the maritime and fisheries operational programme, the Marine Management Organisation; the Secretary of State in relation to the Rural Development Programme for England; Scottish Ministers in relation to the Scottish Rural Development Programme; Welsh Ministers in relation to the Rural Development Programme for Wales; and the Department of Agriculture, Environment and Rural Affairs in relation to the Northern Ireland Rural Development Programme.

As noble Lords are well aware, agriculture and fisheries are devolved policy areas and are of special importance for all parts of the kingdom. We have worked closely with the devolved Administrations to produce these instruments; they place great importance on them and have given them their full support. I repeat that these statutory instruments are required for the continued operation of the rural development programmes and the maritime and fisheries programme. Without them, there would be no legal powers to make payments to fulfil the promises that these important programmes will continue. I beg to move.

[Baroness McIntosh of Pickering (Con)]

My Lords, I thank my noble friend for bringing forward this little group of statutory instruments. I shall pursue what was raised in Sub-Committee B’s report—the 18th report from the Secondary Legislation Scrutiny Committee. The Sub-Committee has invited this Committee to probe for more financial information. I have a series of questions and I shall try not to repeat myself.

There will be schemes that have finished, and new schemes that will commence but end after a key date—that could be 2021-22. What advice are my noble friend and his department giving to those who may be in a position to enter a new scheme but are reluctant to do so, since they are not sure whether it will complete and what the funding will be for it? My understanding is that there are schemes that fall into that category, and concern has been raised.

Paragraph 7.5 of the Explanatory Memorandum to the rural development regulations says:

“On EU exit, the UK will seek reimbursement from the EU for all CAP payments made to beneficiaries up to 29 March 2019”.


On what basis? We are still members of the European Union, so I would just like to know what the legal basis is for that. It seems very odd, because we are committed to the EU schemes between 2014 and 2019. It says “up to”, so I just ask for clarification, because I do not understand what the legal basis is. It goes on to say:

“Thereafter, such funding will be provided by HM Treasury”.


I know this is of great interest to the farming press and the farming community generally. What is the budget from which those funds will be provided, going forward?

The paragraph goes on:

“The UK Government has guaranteed that any EAFRD projects, where funding has been agreed before the end of 2020, will be funded for their full lifetime”.


Again, it would be helpful to know where these funds are coming from. It continues:

“The guarantee also means that Defra and the devolved administrations can continue to sign new projects this year and during 2020”.


What will be the duration of those schemes? Again, where will the money come from? It goes on:

“In addition, the Government has pledged to continue to commit the same … total in funds for farm support until the end of this Parliament, expected in 2022”.


This has been exercising me for some time. The Government have consistently said that we are committed to paying money until the end of this Parliament, which is expected in 2022. It begs the question: if a general election—heaven forfend—is held before 2022, possibly this year, does that leave the door open for a newly elected Government to cease to pay those funds for those three years, from 2019 to 2022, particularly if there is a change of Government? It is just not clear and it gives us the opportunity to clarify that this afternoon.