Common Agricultural Policy

Debate between Baroness McIntosh of Pickering and James Paice

Tuesday 18th June 2013 Commons Chamber

[Miss McIntosh]

On a point of order, Mr Deputy Speaker. I omitted to refer to my entry in the Register of Members’ Financial Interests.

[Sir James Paice]

On a point of order, Mr Deputy Speaker. May I too apologise for forgetting to refer to my entry in the Register of Members’ Financial Interests?

department for Environment, Food and Rural Affairs

Debate between Baroness McIntosh of Pickering and James Paice

Tuesday 17th July 2012 Commons Chamber

[Mr Paice]

My hon. Friend’s point is properly made and is an important one.

I will concentrate on the issues that need to be addressed. I fully recognise that what matters to the dairy farmer is the price that they are paid. However, as several hon. Members on both sides of the Chamber have said, it is not simply a matter of reversing the price cuts, although that is what the producers want. We need something more substantial and more permanent than that.

As I say frequently outside this place, we have an obsession in this country with the liquid market and with the desire of our processors to gain bottling contracts for supermarkets. They keep undercutting each other to keep their bottling plants at full capacity. When, as has happened on this occasion, cream prices collapse and they face major problems, the only way in which they can recoup any income is by cutting the price for their producers to below the cost of production. That is a direct consequence of the obsession with bottling for supermarkets.

As several hon. Members have said, and as is abundantly clear, there are ample other opportunities for investment. Some 20% of our total dairy consumption is imported. The hon. Member for Bishop Auckland (Helen Goodman) talked about imports. We do not import liquid milk. All the imports are dairy products, but they nevertheless make up a significant part of our total consumption.

What are our processors doing to combat that? One or two are trying to do something. Dairy Crest has gained back some of the cheese market with one of its products and it should be congratulated on that, but there is still much to do. Where do the supermarkets with aligned dairy groups, which pay a premium for their liquid milk, get their own-label brands? Where are their other dairy products, such as their yoghurt, produced? Do they use British milk? In many cases, they do not. There is therefore a great opportunity for import substitution.

There is an even greater opportunity for exports. The world is crying out for increased dairy products. Yes, global prices have fallen back and that is part of the immediate problem that we face. However, I say to my hon. Friend the Member for Ceredigion (Mr Williams) that if I was asked whether I would encourage a young person to go into dairy farming, my unequivocal answer would be yes, because I am convinced that there is a long-term future beyond today’s crisis.

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

Will my right hon. Friend give way?

[Mr Paice]

No, I am sorry, I need to press on.

Hon. Members also raised the issue of supermarket power. As has been said, we are introducing the groceries code adjudicator. I have always tried to be honest with farmers and say that on its own it will not increase the price of milk, but that it should increase fairness and transparency.

The big problem that we face, which has been mentioned this afternoon, is what I view as the absurd level of price cutting by some retailers, particularly those in what is known as the middle ground. One retailer is openly selling milk at 99p for four pints.

Common Agricultural Policy

Debate between Baroness McIntosh of Pickering and James Paice

Thursday 8th March 2012 Westminster Hall

[Miss McIntosh]

I am grateful to the hon. Gentleman and distinguished member of the Select Committee for those remarks. I could go through the witness statements at some length, but the record speaks for itself. For the record, the Government response states:

“The UK Government accepts that there is more for us to do in this area and are continuing to develop our ideas for reform. A UK Government priority will be to continue the good work undertaken in previous reforms, such as phasing out the remaining coupled subsidies and continuing the market orientation of the CAP.”

I am sure that the Minister would like to stand by the evidence that he gave to the Committee in an oral session.

[The Minister of State, Department for Environment, Food and Rural Affairs (Mr James Paice)]

I need to point out to my hon. Friend and, indeed, to the hon. Member for Brent North (Barry Gardiner) that if she read her speech as I believe she did, she said that I had stated in witness evidence that the policy was to phase out the single farm payment over the next seven years and end it shortly thereafter. That in itself is a contradiction. That is not our policy. Our policy is, yes, to seek a phasing out of the single farm payment. However, she implied that I had said that it was to be extinguished by the end of that seven year period. That is not the policy.

[Miss McIntosh]

I am grateful for that clarification because the Committee was led to believe that that was the desire of the Department and the Minister. Certainly, that was the understanding of the witnesses—both the witness statements—from the farming community as well. I am sure that hon. Members will want to return to that matter.

We have already moved away from the historic basis of payments, and it would be anachronistic to continue to pay farmers on the basis of what they produced a decade ago. However, a flat rate per area would result in considerable redistribution within the UK, suggesting that national flexibility will be needed.

Turning to greening the CAP, the Committee agrees with the principle that the future CAP should reward and encourage sustainable farming. The Foresight report, “The Future of Food and Farming: Challenges and choices for global sustainability”, says that we will need to produce more food but use fewer inputs. We conclude that greening measures should not come at the expense of productive successful agriculture, but we need to find win-wins for sustainability and competitiveness. I repeat: we applaud the fact that, in this country, our farmers are already greening through agri-environmental schemes to a much greater extent than elsewhere in the European Union.

--- Later in debate ---

[Mr Paice]

I was going to come to that point. The hon. Lady referred in her speech to the fact that I was in Scotland yesterday. I met the Scottish NFU, and I gave evidence to the Rural Affairs, Climate Change and Environment Committee in the Scottish Parliament. I was asked the same question. I cannot give clear commitments, because we do not know what the outcome will be. We do not know what the total CAP budget will be. We know what the Commission is proposing. We certainly do not know how much there will be in pillar one or pillar two. We do not know what the convergence debate will lead to and whether that will be reflected in how we divide up the UK’s share of the cake, whatever it may be.

I will make the point that I made yesterday. It is a blunt instrument simply to take the total payment—to Scotland in this case—and divide it by the number of acres, because the acres are not all equal. As the hon. Lady rightly said, 85% of Scotland is in less favoured areas. Some of the land in the highlands is of little, if any, agricultural use. That bald statistic is a blunt way to compare resources. In any case, as she will be aware, the resources are simply based on the historical payments before the advent of the single farm payment. That is fact. As for the future, I made it clear yesterday that we will sit down with all the devolved legislatures to consider how to split the cake once we know how it has been arrived at and how big it is. We cannot prejudge the outcome.

I will say, because the hon. Lady intervened, that the point about the less favoured areas is crucial. The British Government fully support the need for Scotland, Wales, Northern Ireland and England to target support at such areas, which will be renamed under the CAP. I have forgotten the phrase, but it will come back to me. Those areas will get a new title, but little else will change. I am told that they will be called areas of natural constraint. In an ideal world—I will come back to the wider aspects—the targeted payment is best made from pillar two. The hon. Member for Ogmore referred to the uplands entry level scheme, which is what we have in England. Pillar two targeted payments for those areas with natural constraints could be just as effective as a blanket per acre, or per hectare, payment.

[Miss McIntosh]

rose—

--- Later in debate ---

[Miss McIntosh]

We are benefiting from the fact that the Government’s thinking has moved on. If the Government are eventually moving away from direct payments, what tools does the Minister hope to use to make UK farming more competitive? I do not think that agri-environment schemes make British farming more competitive. They deliver sustainable farming, but we are looking to develop more competitiveness across the EU.

[Mr Paice]

I have never suggested that agri-environment schemes will make the industry more competitive. I will come to that point later.

Welfare of Laying Hens Directive

Debate between Baroness McIntosh of Pickering and James Paice

Tuesday 13th December 2011 Westminster Hall

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

Good morning, Mr Amess. It is a pleasure to see you in the Chair and to see the Minister in his place. I am delighted to have secured the debate. It is a matter of note that it was requested by all the members of the Select Committee on Environment, Food and Rural Affairs, who deem it of great importance. The thrust of my remarks relates to the legal position and legal advice on which the Government appear to have based their decision on how to proceed when the ban on battery cages comes into effect. Effectively, the issue is when is a ban not a ban?

Directive 1999/74 on the welfare of laying hens is well known to everybody in this country and across the EU; indeed, it has been in existence for 12 years. It will take effect from 1 January 2012, when there will be a ban on what are normally known as battery cages, and only eggs laid by hens in enriched cages will be allowed. That is an historic decision, which is welcomed by all across the EU, not least consumers. Animal welfare has enjoyed growing momentum across the EU, and this is the first time the Commission has sought to introduce a ban on animal welfare grounds.

Were the ban not to take effect on 1 January, the implications for the consumer would be very serious. Consumers are very much in favour of a ban. This country’s egg industry has invested £400 million in putting new facilities in place for 1 January, and I pay tribute to all the egg producers who have made such a massive contribution, not least Yorkshire Farmhouse Eggs and others in my constituency. There are also serious implications for the next ban—on sow stalls and tethers—which is due to come into force across the EU on 1 January 2013.

I want to focus for a moment on the implications of the legal aspects of the Government’s case. As I said, the directive is due to come into force on 1 January 2012. It was agreed 12 years ago, in 1999, so egg producers across the EU have had 12 years to prepare. The directive will prohibit the use of conventional cages—commonly referred to as battery cages—which contain about five birds, with a minimum of 550 sq cm, or less than the size of a sheet of A4 paper, per bird. In December 2010, such cages accounted for 28% of all laying hens in the UK. The new enriched cages provide at least 750 sq cm per bird and have a minimum height of 44 cm. They also provide a nest, a perching space and a scratching area. In December 2010, such cages accounted for 21% of all laying hens in the UK.

The directive was intended to prohibit the marketing of eggs produced in conventional cages. Here, I turn to the semantics of what the ban relates to. In this regard, there are flaws in the Government’s legal advice, their argument and the basis on which they are proceeding. I pray in aid a letter—I am happy to share it and to leave a copy in the Library and with the Department—from Commissioner John Dalli, who is the person at the directorate-general for health and consumers responsible for implementing the ban. He wrote to the Committee on 30 November, after we had written two weeks earlier—on 14 November—asking for the ban to take effect across the EU. He states:

“Currently available data suggest that there is a risk that more than 51 million hens in at least 11 Member States will still be kept in un-enriched cages on 1 January 2012.”

He goes on to say that he will

“without undue delay propose to launch infringement proceedings early next year against those Member States that appear to not enforce the Directive.”

However, as we and the Commission know—the Committee had cause to share this with a Minister from Denmark, which will hold the EU presidency from 1 January 2012—all the Commission will do then is issue a reasoned opinion against the member states that are in default. As we all realise this morning, that will give those member states three months to reply. It will therefore be le jour de poisson—April fool’s day—1 April 2012, before legal proceedings commence against any of those member states.

In arguing against the Government’s inaction, I rely on a key paragraph from the commissioner’s letter:

“Concerning unilateral action, Member States are responsible for the enforcement of Union law. They have the power and the duty to keep products produced illegally off their markets.”

[The Minister of State, Department for Environment, Food and Rural Affairs (Mr James Paice)]

indicated assent.

[Miss McIntosh]

The Minister is nodding. The key phrase is that member states

“have the power and the duty to keep products produced illegally off their markets.”

I put it to the Minister that it is not for manufacturers, processers or retailers to police these things. I pay tribute to the Department for Environment, Food and Rural Affairs for being the first Department to come forward with a taskforce to remove extra regulations and gold-plating. Under successive Governments, it has been expert at introducing such things, but gold-plating and the addition of extra regulations have cost our industry. It would be completely perverse to offload all the costs of policing these issues on to retailers, processers and others, when it should, as the commissioner says, be the Government’s responsibility to police the ban.

--- Later in debate ---

[Miss McIntosh]

I would like to make some progress.

I put it to the Minister that he has three options before 1 January. The first is to do nothing, as he set out in his recent written statement to the House, and to let the ban lapse before it even takes effect and to offload the costs of policing processed products—not shelled eggs, but eggs in powdered, liquid and other forms. That would be unacceptable.

The second option is to take unilateral action, and the Commission clearly states that the Minister would be entirely within his rights to do so. Indeed, he said in the Government’s response to the Committee’s ninth report on the welfare of laying hens directive:

“We will be pressing to ensure that the Commission initiate infraction proceedings against Member States whose caged egg producers are non-compliant”.

He went on to say that the Government would also consider taking unilateral action:

“The Government has thoroughly investigated the possibility of taking unilateral action and bringing in a UK ban on all imports of egg and egg products which have been produced in conventional cages in other Member States”.

What has changed the Minister’s mind between the quite recent date of publication—25 November—and today? The Minister should take unilateral action, rejecting shell eggs or egg products in powdered, liquid or any other form, based on the legal letter and the legal basis of the directive, backed up by the commissioner’s response to the Committee.

The third option that I invite the Minister to consider is to tour European capitals. It is not up to members of the Committee. We had a warm response from the incoming President, the Danish Agriculture Minister, when we made a visit two weeks ago. She asked the Committee which other capitals we had visited, and which other Ministers we had met. I regret to say that I had to respond that we are not allowed out very often, so it is not really the role of the Committee. It is the role of Ministers from the 14 compliant member states to tour member states to secure—if the Minister does not want to take unilateral action—a multilateral ban on their part. There are 14 or 16 other countries—we are not entirely sure how many—who will not comply.

[Mr Paice]

I am interested to hear that my hon. Friend spoke to the new Danish Minister. Did she ask what the Minister was planning to do? I did, last week, and the answer is nothing.

[Miss McIntosh]

I am delighted that the Minister met his counterpart, but that is not what she said to us. She said she was aware that the Commission would take action. I put it to her, as I put it to the Committee this morning, that there will be inaction for three months, while just a reasoned position is issued under the Court proceedings. When we left, that Minister—the incoming EU President—had a completely open mind. As I said to her, it is quite within the rights of the Council of Ministers to overrule the Commission and rely on a multilateral ban. That is a matter of disagreement between the Minister, the Committee and the egg industry, and it would help us this morning if the Minister provided the legal advice on which the Government depend.

In his conclusions in a written statement on 6 December the Minister mentioned marketing regulations:

“Because of a loophole in the egg marketing regulations, we cannot prohibit the marketing of any eggs produced in conventional cages from 1 January 2012 which are sent to processing (whether sent as ungraded or class B), nor can we prohibit the use of any products made from such eggs.”—[Official Report, 6 December 2011; Vol. 537, c. 17WS.]

That is not the case, and I repeat the words of Commissioner Dalli:

“Concerning unilateral action, Member States are responsible for the enforcement of Union law. They have the power and the duty to keep products produced illegally off their markets.”

The Food and Drink Federation is equally concerned and has said, in its briefing for today’s debate, that it shares concern that a number of other EU member states still do not appear ready to meet obligations first set out in the 1999 directive. It continues:

“It is also highly regrettable that the absence of mechanisms to prevent intra-community trade in non-compliant eggs exposes food manufacturers and others to the risk of inadvertently buying them.”

[Mr Paice]

They agree with us.

[Miss McIntosh]

The Minister says that retailers agree with the Government, but with the greatest of respect, retailers and processors do not agree with them. The Government are offloading the responsibility for applying the directive on to retailers, processors and the manufacturers of quiches, pizzas, cakes and other products.

[Mr Paice]

Will my hon. Friend reread what she just read out from the FDF? It clearly states that it agrees that it is a pity there is no mechanism. That is what she read out, and that is the Government’s position. The FDF agrees with the Government that there is no mechanism for us to establish the ban that she wants.

[Miss McIntosh]

That highlights the kernel of the disagreement between the Minister and the Committee. Will he explain precisely what the loophole is in the egg marketing regulations? Are they EU regulations or UK regulations implementing EU regulations? The Committee is at a disadvantage, because we do not have access to the legal advice on which the Government have based their opinion. If the Minister would be good enough, in his response, to clarify the legal position on the importation of non-compliant shell eggs for processing, liquid and powdered egg and egg products contained in prepared foods, it would be a great step forward. Will he also state precisely what loophole in the egg marketing regulations he believes allows the marketing and sale of all eggs and egg products, aside from class A eggs? Will he satisfy us this morning as to whether he really means that because only class A eggs are covered by the egg marketing regulations DEFRA has simply chosen to put that interpretation on the legislation?

As a currently non-practising lawyer, who practised law in two different law firms in Brussels, I accept that asking two lawyers for their opinion might produce two different legal opinions. It seems that the British Egg Industry Council has one legal opinion, and the Government rely on another. It would be helpful for us to learn precisely the terms of that opinion. I have quoted Commissioner Dalli’s belief, which is widely held, that the European Commission is clearly saying that the United Kingdom would be entirely within its rights to choose to prohibit the importation not just of class A shell eggs but also shell eggs destined for processing, and liquid and powdered eggs, from non-compliant sources, from 1 January 2012.

The Commission infraction proceedings will take place only from 1 January, with a reasoned opinion against the 10 or 11 remaining member states that do not comply with the directive. That will mean that no reference to the Court of Justice, or legal proceedings against the ban, can happen until 1 April 2012. The consequences of failing to act are huge. Bearing in mind the fact that we all—consumers, manufacturers and parliamentarians—welcome a ban on battery cages, the consequences of failing to act cannot be quantified.

Consumers were led to believe that the ban would be in place from 1 January 2012. Egg producers have made an enormous sacrifice and invested hugely—£400 million —in enriched cages. There will be huge consequences for producers who are disadvantaged. As to what the costs will be to the manufacturers, processors and retailers who are being asked to check the eggs on import, to make sure that they are compliant, perhaps the Government would like to share a figure with the House this morning. Perhaps we should also look ahead to 1 January 2013.

When the Conservatives were last in power, we imposed a unilateral ban on sow stalls and tethers, which disadvantaged our pig sector and has led to consumers buying cheaper cuts of pigmeat produced with less animal welfare-friendly methods since the early ’90s. I want an assurance from the Minister that a level playing field is not elusive, that we can achieve it, that we can allow our egg producers to compete across the European Union and that we will not accept any imports of shell eggs or any other products from 1 January 2012.

--- Later in debate ---

[Mr Paice]

I assure the hon. Gentleman that, of course, we have sought our own legal advice. I was going to mention that issue later, but I am happy to address it now. Please forgive me, Ms Osborne, if I read from my notes verbatim, but I need to get it right. I must stress that I am not reading out direct legal advice. Perhaps I can use this opportunity to say to him that I have answered his parliamentary question and that I suspect that he will get the answer today. As I am sure that he knows, I am afraid that the answer is no. Governments do not publish legal advice given to Ministers. That was not the case under the previous Government, and it is not the case under this Government.

The treaty on the functioning of the EU prohibits quantitative restrictions on imports between member states and all measures that have a similar effect, with limited exceptions to that general rule, including where they are necessary on animal health or human health grounds. The advice that we have received shows that it is extremely unlikely that a court would extend those exceptions to animal welfare grounds in these circumstances. The treaty also states that any restriction of trade must not constitute arbitrary discrimination.

Given the traceability issues around distinguishing between imported eggs that have been reared in conventional cages in other member states and those that have not—I will come back to traceability in a moment—any ban would have to be on imports of all eggs from a particular country, whether reared in conventional cages or not. That would clearly penalise compliant producers in other member states, which runs contrary to the principle of the free movement of goods. The hon. Member for Ogmore and my hon. Friend the Member for Thirsk and Malton raised the ban on sow stalls, which we implemented a long time ago in this country. If we apply the logic of the argument that we are discussing to that, we would have had to introduce a ban on all pigmeat, including that not introduced in sow stalls. Neither the Government at the time nor the previous Labour Government believed that they had the power to do that. It is quite clear that we do not have the legal basis to take such action.

[Miss McIntosh]

I am most grateful to my right hon. Friend for sharing the advice with us. The sad fact is that if we claimed there was an animal health issue with shelled eggs or their products, we could reject them. I submit to the Minister that the legal basis on which we can rely for either a unilateral or multilateral ban is the EU directive coming into force from 1 January, which finds its legal base in the treaty. We are breaking new ground here. This is the first time that the Commission has imposed a community-wide ban on animal welfare grounds. I therefore submit that the legal instrument is the directive. I ask the Minister to respond to John Dalli’s comments that I read out about having the power and duty to keep products produced illegally off our markets, either unilaterally or, as the hon. Member for Ogmore (Huw Irranca-Davies) has said, multilaterally. I cannot accept that there are no grounds for a ban, because the EU directive is the legal instrument.

[Mr Paice]

My hon. Friend is right, but she needs to read that legal instrument to see what powers it gives member states to introduce a ban. The fact is that it does not give those powers. The Commissioner has been through this over and over again. I have had private meetings with him and with others as well. He is absolutely adamant that there are no powers available to him or member states to introduce the ban in the way in which my hon. Friend has advocated

I hope that I can clarify the matter by coming to traceability, which is right at the heart of the issue. Before getting to that, I shall finish my point about the Commission’s role. Once Commissioner Dalli realised that there was going to be a big problem, the Commission started looking for a robust enforcement approach that would avoid a large number of producers having to close down their operations. More importantly, as my hon. Friend the Member for Tiverton and Honiton has said, the Commissioner also wanted to avoid the destruction of millions and millions of eggs, which clearly would not have been right when many people are struggling to make ends meet.

At the same time, the Commissioner wanted to protect producers who have complied with the ban. He came up with the concept of what has been described as a gentlemen’s agreement, which does not have a legal basis. Most of those member states who were expecting to be compliant did not like the idea. Those who were not compliant reluctantly agreed to the idea. I took the view that, although we did not want any slippage in the timetable, we had to face up to the reality that there would be non-compliant eggs and therefore something had to be done. In fact, the gentlemen’s agreement died. There was clearly no prospect of a gentlemen’s agreement, and it has not been progressed.

The Commission has acted on the practical things for which the UK has been pressing. As several hon. Members have said, it has begun pre-infraction procedures. More importantly, it has also asked for the action plans from all non-compliant member states to contain measures to accelerate compliance. In answer to the hon. Member for Ogmore, its intention is for a monthly report of those plans to be given to the Standing Committee on the Food Chain and Animal Health, which is known as SCoFCAH for short.

[Mr Paice]

The hon. Gentleman makes a perfectly reasonable suggestion. Obviously, I cannot tell him what the risk is. This is an extremely important point and, to go back in history, his Government took such a view about earlier issues when the boot was on the other foot. It is very difficult for someone to argue that other people are not complying with the law if they then proceed to break it themselves. Someone would lose a great deal of moral standing if they did that.

I want to make a final point about the Commission before I come back to the key issues. The Commission’s Food and Veterinary Office missions will be targeted from the beginning of 2012 at non-compliant member states and, to help that, all member states have been asked to submit lists of compliant producers. We have asked for all those measures, because they will give some protection to compliant producers in the UK and across the EU. Clearly, that is not enough, which is why we have said that we reserve the right to take our own actions. Yes, we have thoroughly investigated the possibility of unilateral action and, when I have said in the past that we were considering the matter, I was saying it exactly as it was. I think that hon. Members who know me well enough will know that I would be keen to take action, but, unfortunately, the legal advice that I have had from within, plus the statements from the Commission to which I have referred, have led me to believe that we cannot do so. That is partly because of the practical issues and difficulties in enforcing such an approach.

[Miss McIntosh]

rose—

[Mr Paice]

Let me continue, because I am addressing my hon. Friend’s point about the issue of traceability. Perhaps I can also mention the point about the egg marketing regulations, because the two matters are interlinked. The answer to her question about the egg marketing regulations is that class A are shell eggs and they have to be marked with a producer number and a mark defining the production method—in other words, it would be code 3 from a battery cage or, from January, from an enriched cage.

Class B eggs, however, which are mainly used in manufacturing, are not required to be marked with anything—with either a producer number or a code—so there is no traceability, which is the key point. If we were to introduce a ban, it would have to be on all non-grade A eggs or on all powder and/or liquid. We could not differentiate them, which is the nub of the challenge that we faced. Because of that, as I suggested earlier in relation to the legal advice, we would have been accused of a discriminatory approach and would certainly have been in breach of the legislation.

[Miss McIntosh]

Will the Minister confirm whether the marketing regulations are European Union regulations or UK regulations? If they are EU regulations, we, as a country, would have had the opportunity to query them and, presumably, amend them when they were drafted. Will the Minister comment on that? I look forward to his response to other questions, but what will be the cost to the industry—to processors, retailers and manufacturers—of doing what the Government are asking it to do from 1 January?

[Mr Paice]

They are European regulations—there is no question about that—as I am sure the advisers to the Environment, Food and Rural Affairs Committee will have confirmed to my hon. Friend. We have, in recent months, asked the Commission—and we will continue to ask it—to amend those regulations. That has not happened so far, and I must confess that the Commission officials with whom we have had detailed discussions do not seem overly keen on the idea, so we are faced with having to operate within the existing legislation.

On the issue of what exactly is an offence, it will be an offence to keep hens in those cages, and we would prosecute under the Animal Welfare Act 2006. That is clear. However, it will not necessarily be an offence to be in possession of an egg from an illegal cage, but it would be an offence to try to pass it off as an egg from a legal cage. It is important to be clear about that.

On the efforts that we have made within the constraints, the hon. Member for Ogmore challenged me about the Animal Health and Veterinary Laboratories Agency and my description of the use of ultraviolet light. He is right that the technique has never been used directly in the way that we propose, but, as he has also said, it has been used to identify eggs from caged hens within batches that have been described as free range or barn eggs. Not until now has it been specifically used to identify different types of caged egg production, but we have had it independently validated, and I have looked at it myself. When an egg is laid, the shell is momentarily a bit soft and takes an imprint of the material on which it is laid. If it is laid on wire, it comes through clearly under ultraviolet light, which is obvious. If it is laid on any sort of softer egg-laying surface, which is a requirement of an enriched cage, that comes through as a completely different pattern.

I must also make it clear, however, that the use of ultraviolet light is simply a marker for us and would not, by itself, be the basis of prosecution. If any suspect eggs are found, we will ask the country of origin to confirm our suspicions about whether the producer—do not forget that the information will be on the egg—is compliant or not. That is how the system will operate. If the eggs are found to be from an illegal system, they will be prevented from being marketed as class A eggs and sent for processing—that is, as I have said, downgraded to class B. I have now explained the point about marketing regulations.

As of today, as far as we can establish, the average price per dozen of class A caged eggs, which are, of course, legal at the moment, is about 54p, while the average price per dozen of class B eggs is 29.4p. That is nearly 25p per dozen cheaper, which is close to 50% of the price. That is a massive price differential. I cannot believe that anybody will seek to import eggs from non-compliant cages and risk losing half the value of the eggs if we detect them. We have to be sensible. The economic impact on anybody who has their eggs downgraded will be absolutely massive, and I do not believe that they would risk it happening. As far as shell eggs are concerned, our measures will be sufficient.

Let me turn to the understandably more concerning issue of processed eggs, which, as has rightly been said, represent about half the imports of egg and egg products into this country and approximately 9% of total consumption. As I have said, they are much less easy to trace, because the eggs are not required to carry any identification. That loophole causes us immense problems, which is why we have been pressing, and will continue to press, to get it closed. In the absence of that, we have had to use what opportunity we have, which, as I have said, is to work with the industry. The hon. Member for Ogmore is right and that is why I published a list in my statement, and was happy to do so, unusually, on the basis of name and shame. I am happy to update the list and, as of today, can add two more processors—Bumble Hole Foods Ltd and D Wise Ltd. That now means that nine of the major processors are on board, reducing still further the likelihood of eggs from conventional cages or their products being imported.

That is the situation. I am approaching the end of my allocated time and have almost finished addressing the issues, but I am conscious that I also need to respond to a number of questions. In the absence of the ability to instigate a ban, we have tried, as I have explained, to throttle the market. That is what it boils down to—we have tried to make sure that there is no market in the UK for illegally produced eggs or egg products.

I have dealt with the issue of legal advice. To return to my earlier intervention on my hon. Friend the Member for Thirsk and Malton, I have been in contact with like-minded countries in the EU. In the week before I made the statement, I telephoned them myself and not one of them is proposing any action yet. As far as we can establish, we are the only country proposing any measures from 1 January. Of course, I continue to work with them and, if there are prospects for more unified action, I will take it, but, as I have said, they are not minded to take action.

I have mentioned the regular monthly updates to the Standing Committee on the Food Chain and Animal Health and, in response to a question asked by the hon. Member for Ogmore, I will ensure that, somehow, that is brought to the House’s attention. I cannot give him the information about non-compliant imports, because of the issue of traceability, which I have mentioned. We do not know whether such imports are non-compliant, and we are trying to ensure that they are not. The European Commission cannot impose financial penalties, which is a matter for the courts following infraction proceedings. On the industry’s issues, it has not provided us with any form of costings. We are open about that. I am sure that if the costings had been onerous, the industry would have been quick to tell us.

Finally, I fully understand the importance of the issue. We have tried very hard to use the weapons available to us.

Wild Animals (Circuses)

Debate between Baroness McIntosh of Pickering and James Paice

Thursday 19th May 2011 Commons Chamber

[Mr Paice]

I can confirm that officials from my Department have spoken to the attorney acting for the European Circus Association, that it is developing a case, and that it expects to issue proceedings against the Austrian Government in the next few weeks.

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

I am delighted to report that my right hon. Friend the Secretary of State is currently visiting the Pickering “slowing the flow” project at the request of North Yorkshire county council.

Will my hon. Friend assure the House that there will not be a knee-jerk reaction banning all wild animals in circuses until we have taken the best possible legal advice? Is it not a little hypocritical of Parliament to receive, in the House of Commons, performers from circuses that use wild animals, and then to reject those very performers?

[Mr Paice]

I am sure that my hon. Friend is right. Any Government must take serious heed of the legal advice they are given. Any Ministers who wilfully ignore such advice and risk the Government’s being taken to court and losing are, in my view, neglecting their duty. We have made the right decision: we have taken swift action to deal with the issue of the welfare of circus animals, and I believe that that is the right course.

Oral Answers to Questions

Debate between Baroness McIntosh of Pickering and James Paice

Thursday 17th March 2011 Commons Chamber

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

T3. I wish to raise the whole sorry saga of the single farm payment, as administered by the Rural Payments Agency. One farmer in my area has not received payment since 2009. I understand that the target for March will not be met, that the accuracy of the figures remains woefully short of what might be expected and that we risk incurring EU fines. Can the Minister assure the House that that will not be the case this year?

[Mr Paice]

As my hon. Friend said, the new Government inherited a catastrophic situation with the RPA, which had incurred for the country massive fines from the EU as a result of late payments and inaccuracies—I am determined not to repeat that. I am extremely sorry that we are not going to be able to meet the target for end of March payments, but we are determined that this year’s payments should be accurate, rather than have a continuation of the problems of errors and the fines that then ensue. I am determined to get money flowing as quickly as possible to the many farmers whom I recognise need it.

Oral Answers to Questions

Debate between Baroness McIntosh of Pickering and James Paice

Thursday 3rd February 2011 Commons Chamber

[Mr Paice]

My hon. Friend is right to urge caution. There are two slightly different perceptions. One is of the dogs that people use as fashion accessories, such as the pit bull-type dogs used by the louts that we sometimes see walking about the streets. However, the tragedies often involve household pets that, for some reason, have gone wrong. We have to bear that in mind and look at the whole picture.

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

17. What recent estimate she has made of the level of farm incomes; and if she will make a statement.

[The Minister of State, Department for Environment, Food and Rural Affairs (Mr James Paice)]

The latest forecasts of farm incomes were published on 27 January. They indicate that average incomes are likely to show a marked increase in 2010-11 on arable farms, but to fall on livestock farms. I am sorry to say that the current price for grain is likely to increase that differential.

[Miss McIntosh]

Is the Minister aware that incomes are expected to drop by 60% for pig farms, 30% for sheep farms, 48% for farms with grazing livestock and 24% for dairy farms, and that the increase for arable farmers that he referred to is due only to the single farm payment? In the context of common agricultural policy reform, will he assure the House, and farmers, that the emphasis will remain on farm production and on ensuring a fair return to our producers?

[Mr Paice]

I do not think that my hon. Friend is right to attribute the rise in arable income to the single farm payment. It is because the price of wheat today is more than double what it was a year ago. As my right hon. Friend the Secretary of State said earlier, our approach to the common agricultural policy is about trying to drive up productivity and competitiveness and to stop wasting money in areas in which it should not be spent. That is why we want to see a greater proportion of the funding spent on pillar two, in which we can actually aid competitiveness.

Oral Answers to Questions

Debate between Baroness McIntosh of Pickering and James Paice

Thursday 4th November 2010 Commons Chamber

[Mr Paice]

There would be no point in having a consultation if I were to announce the results of it now, so I am not going to do so. However, I can tell the hon. Lady, as my right hon. Friend has said and I have just said, that we have absolutely no intention of allowing any public benefit of our woodland, be it access, biodiversity or carbon storage, to be damaged by whatever action we take on public ownership.

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

Is the Minister aware of the Forestry Commission’s involvement in a pilot flood protection project to protect Pickering from future floods by planting a great number of trees to soak up the excess water and prevent it from entering Pickering? Will he give me an assurance today that that project will not be at risk from any future cutbacks and that the Government will continue with their tree planting programme?

[Mr Paice]

It is worth making the point to my hon. Friend that under the previous Government the amount of trees and new woodland planted in this country fell dramatically. The Opposition, as they now are, need to account for that. My hon. Friend is absolutely right; trees have a vital role in flood prevention and alleviation, and although I do not know the detail of the scheme to which she refers, I have no doubt that it will continue in some guise.