Trade Bill

Debate between Baroness Neville-Rolfe and Lord Curry of Kirkharle

3rd reading & 3rd reading (Hansard) & 3rd reading (Hansard): House of Lords
Monday 18th January 2021 Lords Chamber

[Lord Curry of Kirkharle (CB) [V]]

My Lords, my interests are as listed on the register. I will be brief; I fully endorse all the amendments proposed in this group.

I have a few comments on the proposed trade and agriculture commission but, first, on behalf of my friends on the Cross Benches, I thank the Minister for being so helpful and considerate throughout the passage of this Bill. His patience and willingness to engage have been very much appreciated, particularly when the sense of time pressure has been apparent. Obviously, the constraints of the pandemic have imposed on the parliamentary process, and coupled with the need to speedily expedite so many Bills to meet the timetable determined by leaving the European Union, this has placed enormous pressure on the system—not only on Ministers but on the myriad of staff teams that have of necessity been required to support this demanding timetable. I thank all for their valuable support, which has been incredibly important and is very much appreciated.

I thank the Government again for recognising the need for the trade and agriculture commission, and for deciding to give it statutory footing through the Bill. This is a hugely important step forward and is valued by all key stakeholders. I have a very straightforward request for clarity from the Minister, and I apologise for raising this again. It is on the relationship between the TAC and the food standards agencies. I am deliberately using the plural because of the separate functions that exist within the United Kingdom, and these amendments today are addressing issues relating to the United Kingdom. Removing human health from the remit of the TAC—because, one assumes, the food standards agencies will undertake that responsibility—raises the question of how this will work in practice when a new trade deal is being scrutinised by all these bodies, and how this will be reported to Parliament. Will there be a number of separate reports, will the individual bodies and agencies collaborate and produce a joint report, or will the Secretary of State filter the various reports before submitting to Parliament?

I know that the Minister tried to respond to these issues on Report, so I apologise that I am probably stretching his patience to the limit, but I am still rather confused and would appreciate it if he could please explain it again so that I have clarity. I end by thanking all staff once again for their immensely valuable help with this most important Bill.

[Baroness Neville-Rolfe (Con)]

My Lords, I declare my interests, notably as chair of the UK-ASEAN Business Council, and of Crown Agents. I congratulate the Minister and my noble friend Lord Younger on getting this important Bill to this stage after such an extended passage. I endorse the comments of the noble Lord, Lord Curry of Kirkharle, about the support provided by the Ministers and their professional and helpful team.

Britain has a great trading history and we must enter the new era with confidence, backed by our strengthened Department for International Trade and the new Foreign, Commonwealth and Development Office. I spell them out for good reason: there is potential in goods, services and digital.

My noble friend will recall that there were some uncertainties on Report, and that in summing up and withdrawing his amendment, the noble Lord, Lord Stevenson of Balmacara, said that he or I might come back at Third Reading. This seems the right place to ask my questions, since the operation of powers in the devolved nations was under discussion. That has been clarified in these government amendments, to which I do not object, despite the earlier reservations I had expressed. I have given advance notice in the hope that the Minister can reassure me.

The clauses on trade information enable HMRC to collect information about UK exporters. It has been made clear all along that compliance with the request would be entirely voluntary. On Report, my noble friend the Minister said that the practical implementation of this would be a “tick box” on the tax returns—presumably, both corporate and personal. However, he gave no indication of the sorts of questions that would be asked; can he kindly do so today? I appreciate that this will be in regulations in accordance with what was Clause 7(4), but we need an idea of what information will be sought. For example, will it be the name of the trader, and which country or countries they exported to in the tax year in question? Will they need to provide a breakdown of customs headings?

Agriculture Bill

Debate between Baroness Neville-Rolfe and Lord Curry of Kirkharle

Report stage & Report: 3rd sitting (Hansard) & Report: 3rd sitting (Hansard): House of Lords
Tuesday 22nd September 2020 Lords Chamber

[Baroness Neville-Rolfe (Con)]

My Lords, it is always a pleasure to follow my noble friend Lord Holmes. He has made an eloquent case against the bureaucracy of new paper-based controls on wine. This is very timely, because Covid makes digital much more appropriate in many areas, and I look forward to hearing what can be done.

I rise to move Amendment 91 in my name and those of my noble friend Lord Lindsay—who, unfortunately, cannot be here today—and the noble Lord, Lord Curry of Kirkharle. As we are talking about marketing standards, I again declare an interest as the chair of Red Tractor. This is much the biggest of a number of important agriculture assurance schemes; ours covers £14 billion-worth of food and drink, and benefits from regular inspections by ACAS-accredited bodies to enhance food safety, traceability, animal welfare and environmental protection. As I said in Committee, we carry out regular inspections for the FSA—which has been much mentioned today—and the Environment Agency and help to promote export success based on certified standards. We support government endeavour and try to be the flagship of British food and farming at a very difficult time.

Amendment 91 is important because it strikes at the heart of the debate about the use or abuse of powers repatriated from Brussels and Luxembourg now that we have left the EU. We have seen a taster of what can go wrong in the overuse of such delegated powers in domestic legislation in the Public Health Act 1984, which we will be debating prior to the renewal of Covid restrictions next Monday, ahead of the Commons vote on Wednesday.

I should start, however, by congratulating my noble friend the Minister. This is an extremely difficult Bill to steer through our House. Agriculture, food and the environment are issues that excite us all disproportionately. I have therefore appreciated his readiness to listen and to try to get impact assessments back on the right path—which was the subject of an earlier amendment. I know that he also believes in consultation with the farming industry and other stakeholders in developing ELMS and, no doubt, in setting marketing standards, which are the subject of this clause.

My noble friend helpfully confirmed in Committee that there will be consultation on regulations made under this section—although, rather curiously, this is because marketing standards are covered by EU food law, which is being carried over into UK law. The duty to consult is contained in Article 9 of Regulation 178/2002, as the Minister told the noble Baroness, Lady Wilcox of Newport, in Committee. However, the provision is rather too limited for my taste. It says:

“There shall be open and transparent public consultation”—


which is good—

“directly or through representative bodies, during the preparation, evaluation and revision of food law, except where the urgency of the matter does not allow it.”

The bad news here is that consultation with the public can be direct, which is fine, or through representative bodies, which is not, as they have their own interests and axes to grind. Worse is the very wide exemption

“where the urgency of the matter does not allow it.”

This is exactly the sort of provision used in the Covid crisis, in some cases—such as on mask wearing—needlessly, as the debate about that went on for weeks and would have accommodated as well as benefited from public consultation.

In order to withdraw our amendment, my first request is for an assurance that there will be a bias in favour of consultation—open consultation, including engagement with parliamentarians, not just representative bodies, who can take too narrow a view. During foot and mouth, which was not even fatal, I remember that the NFU—which has actually done a lot today—and the food chain of which I was then part dominated consultation. However, they failed to help the Government to spot the disastrous impact on the tourist industry of closing down the countryside.

Our amendment is narrow. That is my fault, but, since I have given notice of this, perhaps the Minister could also comment on the availability and progress of consultation and/or the applicability of Article 9 to Clauses 36 to 39 and Clauses 40 to 42, which I think might fall outside food law.

The second area where I would like an assurance is, I acknowledge, more difficult. The regulation the Government are relying on—as the House of Lords Library has kindly explained to me—is contained in retained direct principal EU legislation. Such a measure can theoretically be amended not only by an Act of Parliament or by a devolved legislature, but by certain delegated powers. So in principle the EU (Withdrawal) Act 2018—or, I suspect, the EU (Withdrawal Agreement) Act 2020—can be used to modify the provisions of the regulation on which we are relying for consultation. The former has already been used on minor BSE, plant-protection and horse-testing regulations. I should add that all of this has emerged since my very helpful meeting with the two Ministers. Will there be public consultation if these two Acts are used to amend the powers deriving from Regulation 178/2002, on which so much weight is being put? If not, the Government should come forward with a short reassuring clause on consultation, as I have been arguing throughout the Bill.

We must ensure that the Executive are not given powers that are too sweeping, or we will get into an unholy mess. To save the agriculture and food area from this fate, I make a plea to the Minister for the reassurance I have asked for and, if need be, for the Government to rethink on consultation and to follow through soon on the very welcome promise last week on impact assessments.

[Lord Curry of Kirkharle (CB) [V]]

My Lords, I will be brief. I will speak to Amendment 91. My interests are as listed in the register. In addition, I repeat what I stated when speaking to Amendment 18: I chaired the Better Regulation Executive from 2010 to 2015. It is pleasure to follow the noble Baroness, Lady Neville-Rolfe, with her in-depth knowledge and experience of the subject matter, and I am delighted to add my name to this amendment. Like the noble Baroness, I appreciated the commitment from the Minister that impact assessments will be undertaken as the Bill progresses.

I fully endorse the concerns expressed by the noble Baroness, in particular the risks we face through time pressures to get legislation through Parliament before the end of this year. We have a very crowded programme. There is a sense of significant pressure on Defra in having not only the Agriculture Bill but the Fisheries Bill and the Environment Bill to progress through the legislative process, against the huge diversion and all-consuming concern of the Covid crisis. It would be a huge mistake if, against this pressure, Defra were to short -circuit the consultation process just to get things done. I appreciate the difficulty that the Minister is under on this issue. However, the consultation process is in place for a purpose and it is essential that we adopt best practice. I look forward to the Minister’s reply.

Enterprise Bill [HL]

Debate between Baroness Neville-Rolfe and Lord Curry of Kirkharle

Wednesday 25th November 2015 Lords Chamber

[Lord Curry of Kirkharle (CB)]

My Lords, I remind the House once again that I chair the Better Regulation Executive and clearly have an interest in this subject. I compliment the noble Lord, Lord Mendelsohn, on his eloquent speech, because we—the BRE—absolutely agree with the tenor of what he said. I shall comment on Amendment 17.

At the beginning of the coalition Parliament, when the BRE embarked on the one-in, one-out process, as your Lordships will be aware, we reported every six months on our progress. Initially, we did not include the impact of EU regulation in that six-monthly reporting process. It was precisely because we became very concerned that we were potentially misleading the business community by not highlighting the impact that EU regulation was having on it that we then, part-way through that process, declared through the RPC’s reporting mechanisms the cost as we understood it of EU regulation and its impact on the business community. Yes, the cost of EU regulation in the previous Parliament largely equated to the savings that we achieved through our domestic one-in, two-out process, but the reason for our declaring that through the RPC is precisely why the noble Lord raised the subject this evening: because we did not want to mislead the business community.

Our policy has been to work in Brussels to try to encourage the same transparency and to apply the same principles there of setting a regulatory budget. We encourage the Commission, the Parliament and the Council to adopt the same policies as we have adopted here, and to work with other member states, seeking their support through agreement to sign up to these principles. We have made significant progress there, although it has to be said that we have not quite achieved that budgetary process yet. But in our view, that is where we should now target our resources to address the cost of EU regulation.

[Baroness Neville-Rolfe]

My Lords, I start by associating myself with the comments of the noble Lord, Lord Mendelsohn, about the noble Lord, Lord Stevenson. I am so glad to see him back and on the road to recovery.

This part of the Bill is about transparency and accountability, and about asking regulators to assess the impact of their work for the business impact target and to report on the effect of the Regulators’ Code and the growth duty.

I was glad that my noble friend Lord Lindsay was able to bring his great knowledge of regulation and of being a regulator to this debate. Of course, the RPC assesses the impact of EU regulation, as we discussed in Committee, but this is not taken into account in checking against the business impact target. We agree that the cost to business of EU legislation should be transparent, but the SBEE Act already achieves that. I cannot agree that those costs should now automatically be added to the target.

As a Government, we are rightly held accountable for the impact of our regulation on business. We should therefore focus the target on the measures that we are wholly in control of, not on EU regulation. That needs to be dealt with at source. As the Prime Minister’s recent letter to Donald Tusk made clear, the Government will continue to press the Commission to introduce a target to cut the total burden on business. This could include stock as well. The European Council and Parliament have already made similar calls on the Commission for burden-reduction targets, so this is under active discussion.

Amendment 18 provides for publication of guidance regarding qualifying regulatory provisions—measures which will score in the business impact target—but Section 21 of the SBEE Act already requires the Government to publish their determination of qualifying regulatory provisions and the methodology for assessing their economic impact.

The noble Lord, Lord Mendelsohn, said that Amendment 18 required a review of the stock of regulation. That is not how we read it, but I do not think that that matters for today’s purpose. The Government agree that the stock of regulation should be reviewed regularly. In the previous Parliament, Red Tape Challenge reviewed thousands of regulations, and our new programme of Cutting Red Tape reviews is continuing that work.

We will publish information regarding the operation of the target soon. I think that we have to do it by May, but I am hopeful that we will do it a long time before that. These documents will be laid before Parliament, which can debate them if it chooses to do so. The SBEE Act already requires annual publication of a list of all provisions outside the target, and the Bill will add to that a summary of other regulatory activity outside the target.

Turning to Amendment 38, I note that the duties in this part are aimed at ensuring that regulators are open and transparent about the impact that they have on the businesses that they regulate. This enables them to be properly held to account. I understand the concern about the impact of these measures on regulators’ capability and capacity. We agree that these duties should operate proportionately; we do not, of course, want to overburden regulators or, indeed, the RPC. I agree with my noble friend Lord Lindsay that the RPC’s involvement could actually help to make the job easier because of the good systems that it has developed, the way that it approaches analysis and the way that that can be spread across the public sector.

Our initial impact assessment suggests that the transparency obligations that we are introducing here will cost less than £1.5 million across all 65 regulators. That is less than 0.1% of their total budget for regulatory activity. Of course, if our implementation were to lead to disproportionate cost, we would look at the approach again. I am absolutely sure that the costs of transparency will be more than outweighed by the benefit. The discipline of assessing impact will encourage regulators to look at different options, including non-regulatory approaches and sharper targeting. They will be prompted to think harder about whether regulation is necessary.

Let me give an example. In 2013, the Environment Agency very sensibly voluntarily assessed the impact of a proposed measure on hydro power. When the agency board saw its own assessment, it concluded that the costs did not justify the benefits and withdrew the proposal, eventually bringing one forward that was much better. It was a benefit to both the businesses and the agency.

Reporting will encourage proper application of the Regulators’ Code. Section 2.2 of the code asks regulators to engage with business. Doing so could help regulators to find ways of regulating that are more effective and require less enforcement.

I understand concerns about costs; I always share them, but we are trying to keep those to a minimum and I am sure that the benefits will be considerable. I hope I have reassured the House that the transparency we seek is already provided for, and that the Government intend the duties to operate in a proportionate manner. The House has noted our plans for the business impact target and to publish more detail on that. I hope, in the circumstances, that the noble Lord will feel able to withdraw his amendment.

--- Later in debate ---

[Lord Curry of Kirkharle]

My Lords, I am moving a small, technical amendment to correct a drafting error in the Small Business, Enterprise and Employment Act 2015. This came to light as departments included the statutory review clause for legislation being introduced in this Session.

An important and often overlooked part of the better regulation agenda is reviewing legislation that impacts on business on a regular basis to see if it is working, is cost effective and continues to be needed. That is a really important principle. The Small Business, Enterprise and Employment Act strengthened the previous system of reviews through a statutory duty requiring Ministers to include a provision in secondary legislation to review the legislation. Where this is not considered appropriate, Ministers need to publish a statement. Once the legislation is in force, the Minister must carry out a review of the legislation within five years. These reviews are published as a report. They look at the legislation to see if it has worked, continues to be needed and is cost effective. Recommendations will be made around keeping the legislation as it is, repealing it or amending it to make it more cost effective and less burdensome to business.

This duty applies both to domestic and EU-derived legislation. For EU-derived legislation there is a requirement to look at how other EU member states implemented the directive to ensure that how it is implemented in the UK does not put British business at a competitive disadvantage. As part of that exercise, it is clearly sensible for the comparative process to embrace other member states which are most relevant from a UK perspective, bearing in mind the nature of the activity subject to regulation. For example, in many cases there may be more to be learnt from member states that have a broadly similar institutional and regulatory structure to us in the UK, or where the scale of activity is comparable to that found here.

My amendment helps achieve that outcome by correcting a drafting error. The Act introduces a “the” in front of “other member states” in Section 30, where it says,

“have regard to how the obligation is implemented in the other Member States”.

This unfortunately implies that in their reviews, departments must look at all the other EU member states. Clearly, that would be very burdensome and was never the intention. I therefore propose to remove “the” and add “so far as is reasonable” to the requirement to ensure that departments are able to carry out their reviews in a proportionate way and are not open to judicial challenge. I thank noble Lords, hope the amendment will be supported and beg to move.

[Baroness Neville-Rolfe]

My Lords, I am glad to be able to take this opportunity to thank the noble Lord, Lord Curry, for his great work on deregulation. “Intelligent regulation” was the phrase used by the noble Lord, Lord Mendelsohn, and that applies here. I also associate myself with earlier comments that he made about the Better Regulation Executive, which is the dynamite behind the Red Tape Challenge.

I thank the noble Lord for proposing this amendment. It is supported by the Government. The principle that new regulation should be kept under regular review is widely supported, but I accept the noble Lord’s argument that it is important that these reviews are carried out in a proportionate manner. In the case of EU measures, that must mean focusing the comparison on those other member states most relevant from our perspective.

Enterprise Bill [HL]

Debate between Baroness Neville-Rolfe and Lord Curry of Kirkharle

Wednesday 28th October 2015 Grand Committee

[Baroness Neville-Rolfe]

I thank noble Lords for these amendments and agree with the noble Earl, Lord Kinnoull, about the importance of, as it were, rewarding the good as well as shaming the evil because I think that is very important in almost all aspects of life, including childcare.

It strikes me that at the heart of this amendment is a desire to ensure that regulators take the specific needs of small business seriously and are transparent about the action they have taken in this regard. This is a desire we all share. The Regulators’ Code, to which regulators must have regard, is clear that regulators should design regulatory approaches that are proportionate and based on factors such as business size and capacity. The new reporting requirement set out in Clause 14 will ensure that regulators are transparent about the effect that these considerations have had on the way they exercise their regulatory functions and the impact they have had on those they regulate, including small businesses.

I am very grateful to the noble Lord for raising the issue of productivity in the UK because when I was on the Back Benches I was always researching productivity in the Library and trying to raise it. It was not the fashion but now it has been recognised as an extremely important driver for the long-term growth and success of our nation. It is one of the key economic challenges for this Parliament because, obviously, it has not grown as strongly as we would have liked in recent years. Business has a critical role in taking the agenda forward, which is why we published Fixing the Foundations in July—a 15-point plan that I think sets out a very ambitious vision for where we want to be in 2020.

The growth duty reporting requirement in the Bill ensures transparency over the actions a regulator has taken as a result of the growth duty, including where the duty has enabled a regulator to contribute to productivity. We intend to issue guidance on the preparation of these performance reports. I will certainly reflect on the productivity point in that guidance, which is perhaps where it could sit, as it is important because it contributes to growth.

Turning to Amendment 49ZA, I understand the concerns around the perception that business, especially small businesses, may attract greater scrutiny from a regulator if they were to make a complaint about it. I also very much agree about the value of feedback—the point made by the noble Earl, Lord Kinnoull. If you are in business, as I was for many years, complaints are jewels to be treasured because they tell you how your business is interacting with your customers, whichever sector you are in. Good practice exists in some regulators. For example, I understand that the Pensions Regulator—not the most fashionable of regulators—runs straightforward anonymous feedback surveys on its website as a routine. In developing the guidance I have mentioned on how the reporting duty will work, we will want to tap into good practice elsewhere. If noble Lords have examples of that, it would be extremely good to have them.

On Amendment 49A, the commissioner will have a focused remit and great personal authority and credibility, which will change culture and practice on payment issues. This approach received broad support during consultation. As I have said many times, I do not believe that we should widen the scope of the Small Business Commissioner. However, where issues in relation to regulatory activity are relevant to the commissioner’s scope, this can be addressed in the commissioner’s annual report. I hope that my response will help noble Lords to feel a little happier about the way this part of the Bill is developing, and that the noble Lord will feel able to withdraw the amendment.

[Lord Curry of Kirkharle (CB)]

My Lords, I just add one comment on this, prompted by the comments of the noble Earl, Lord Kinnoull. The prevailing culture with the regulator is very important. I value the Minister’s comments on that. Part of my role has been to try to encourage a better relationship between the regulator and the business community—namely for it to regard the businesses as clients it needs to work with to deliver an outcome. I believe that we made some progress in that respect. As noble Lords know, in the small business Bill we had the small business champion. I hope that businesses will feel they have a recourse to approach the small business champion if they are dissatisfied with the regulator.