Cableway Installations (Amendment) (EU Exit) Regulations 2019

Debate between Baroness Vere of Norbiton and Lord Teverson

Thursday 26th September 2019 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con)]

My Lords, this instrument is being made under powers conferred by the European Union (Withdrawal) Act 2018 and will give clarity and certainty to industry by fixing deficiencies in two pieces of legislation that will arise when the UK leaves the EU. The first is EU Regulation 2016/424—the “EU regulation”—which is a directly applicable EU regulation. The second is the Cableway Installations Regulations 2018, or SI 2018/816—the “2018 regulations”—which implemented the EU regulation.

Cableways are a mixture of funicular railways and aerial transport systems, such as ski lifts, for the transport of passengers. They are important for tourism and local communities. The majority, around 70, are in snow sports resorts in Scotland. They include chair lifts, surface tow systems, rope tows and passenger transport systems such as the Emirates line in London.

These regulations will not apply to all cableways. Those that entered into service before 1 January 1986 and are classed as historic, cultural or heritage installations, such as the Great Orme Tramway in Wales and the Babbacombe Cliff Railway, are excluded from the scope of the 2018 regulations and the EU regulation.

The 2018 regulations amend the EU regulation designed to harmonise national laws regarding the design and manufacture of cableways equipment to be used in installations designed to carry passengers. The EU regulation is in part directly applicable in the UK, so it forms part of domestic law, and the 2018 regulations supplement the EU regulation where further detail is required. The EU regulation and the 2018 regulations ensure conformity of standards of cableway components across the EU, require the Secretary of State to notify the EU Commission of the notified body responsible for carrying out conformity assessments to ensure that cableway systems, subsystems and their components meet EU harmonised standards, and require the Secretary of State to set rules on the design, construction and entry into service of new cableway installations.

The 2018 regulations and the EU regulation contain a number of elements that will be inappropriate after the UK leaves the European Union. The EU withdrawal Act will retain the EU regulation in its entirety in UK law on exit day. The instrument before your Lordships makes changes that are necessary for the legislation to continue to function correctly after exit day. The majority of the corrections are to amend European Union references and terminology to domestic references, alongside removing requirements to notify matters to the EU Commission.

The most significant change in this instrument is the new power for the Secretary of State to designate standards after exit day. There are no immediate plans or need to exercise this power, but it is sensible to make provision for the future. Until this power is exercised, products that conform to the current EU harmonised standards will continue to be considered compliant with the EU regulation as amended by this instrument. Any introduction of national standards would be subject to full consultation with industry and appropriate technical and safety bodies.

The other significant change is that the definition of “approved body” replaces the definition of “notified body”. The effect is that the Secretary of State can approve bodies to carry out a conformity assessment. This is the process demonstrating whether the essential requirements of the regulation relating to cableway components have been fulfilled. There are no such approved bodies in the UK at present so this will have no immediate practical significance to industry and, as with standards, EU notified bodies will continue to be recognised until such time as there are designated standards and a UK body is approved. The other changes are mostly minor and technical in nature.

In the event that we leave the EU without a deal on 31 October, these regulations are necessary to maintain the status quo after exit day and will ensure the continuity of operations and safety for operators and passengers. The Government’s objective is to avoid uncertainty for cableway operators following exit day, which I hope noble Lords agree is a sensible approach. I beg to move.

[Lord Teverson (LD)]

My Lords, I was tempted to ask whether this included zipwires, to make sure that people going down them got to the bottom. More importantly, I know from my own family that there are more high-wire facilities in parks and adventure parks. Children go on them above the trees; they are great for exploration and daring. Does this include that type of facility? I should probably have listened to the Minister even more carefully. Who inspects these facilities now? Is it local authorities? How is it done? How are we sure that the regulations, whatever they are, are not just enforced but checked? I suspect that these facilities will increase in number over the years.

I am quite concerned that because pre-1896 cableways are termed cultural, we therefore do not particularly worry about health and safety around them. Perhaps the Minister would like to explain that as well.

High Speed Rail (West Midlands–Crewe) Bill

Debate between Baroness Vere of Norbiton and Lord Teverson

2nd reading (Hansard): House of Lords
Monday 9th September 2019 Lords Chamber

[Baroness Vere of Norbiton]

I am unable to confirm that just at this moment, purely because I do not know, not because that decision has gone one way or the other. My apologies.

Oakervee is looking at the costs and benefits and, as the noble Lord mentioned, the costs have increased—the envelope was originally £55.7 billion, and Allan Cook now estimates that that is between £72 billion and £78 billion.

The noble Lord, Lord Teverson, asked about similar projects in other nations. It is difficult to compare us to someone else. We have very different countryside, and various stakeholders have very different needs. That point was raised by the noble Lord, Lord Snape. If we were to keep absolutely everybody happy on the environmental side of things, we would never build anything ever again. Clearly, that is not a feasible option, and therefore we must have a balance. While Oakervee will look at this, given our landscape and our need to mitigate against justified environmental concerns that have been raised, the cost of these things becomes quite high. I mentioned at the outset that there is a significant amount of tunnelling and cutting; some of that is down to the landscape that the line is going through, but also environmental concerns there. In later debates I will give examples of where we have literally moved the route to go around a tree. Those are the sorts of things that, with respect, may not necessarily happen in other countries. On the flip side, knowing France fairly well as I do, much of the country does not look like Staffordshire, so there are differences.

[Lord Teverson]

I thank the noble Baroness for going through those details, but they sound like a list of excuses, if you like. I understand all of that, but the rest of Europe is not blasé about these issues. As we know, the French public can be equally awkward. While I hear the noble Baroness, I find it difficult to understand the differences in culture.

[Baroness Vere of Norbiton]

I would be happy to return to this issue outside the Chamber where perhaps we could have a better and more detailed conversation. I was also going to say that we should meet when the review has been published so that we can talk about the more detailed costs and benefits assessment. That conversation is probably too lengthy to have in the Chamber today.

I turn now to a few of the environmental matters which have been raised, because of course they are very important. I think that it was the noble Lord, Lord Hunt, who referred to the noble Baroness, Lady Jones of Moulsecoomb, saying that he admired her “hippy way” of bringing things up. I thought, “No, that is not the case at all, because these issues are important”. We had a good conversation when we met, and I hope that both noble Baronesses, Lady Jones and Lady Young, along with other noble Lords will accept an invitation to a briefing by the HS2 environment team. Perhaps we can then get to the root of the issues of concern because this is a huge area. I believe that HS2 has a great deal of information on it and I hope that the team will be able to put at least some of the fears of noble Lords at rest, although I am probably resigned to the fact that the noble Baroness will not change her view.

I want to refer to the point raised by the noble Earl, Lord Glasgow. He asked whether having a railway line causes an area to become not beautiful any more. Having visited the area that phase 2a of HS2 will go through, I agree with him that it is lovely and a great part of the country which already has the west coast main line and a motorway running through it. However, it is still beautiful. I think that there are many positives. On the habitat side, again we can raise those issues with the environment director and talk about them further.

Connecting Europe Facility (Revocation) (EU Exit) Regulations 2019

Debate between Baroness Vere of Norbiton and Lord Teverson

Monday 20th May 2019 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con)]

I thank all noble Lords who took part in the debate, which has been short but good. I was doing very well, but, unfortunately, I missed that last question, so I will definitely have to write on it, and that will be supplemented by anything else that I am not able to cover this evening.

The SI that we are discussing today, as many noble Lords noted, was prepared to enable the continuation of funding to UK organisations involved in trans-European network projects in the event the UK leaves the EU without a withdrawal agreement in place.

I will give a tiny bit of further background to the statutory instrument. It revokes regulation 1316/2013 on the Connecting Europe Facility—the CEF regulation. The Connecting Europe Facility is an EU funding programme to support the development of trans-European infrastructure networks for transport, energy and telecommunications. The CEF regulation sets out the conditions, methods and procedures for providing for EU funding for projects relating to the three trans-European networks. It also establishes the amounts of funding available for the period of the 2014-2020 multiannual financial framework.

The first question for the Government in considering how to handle this regulation was whether we needed to retain it in UK law. As the CEF regulation deals with internal EU mechanisms, it will be redundant and will serve no purpose as retained EU law under Section 3 of the European Union (Withdrawal) Act 2018. This instrument therefore revokes the CEF regulation, as well as the Commission delegated regulation 2016/1649 which supplements it.

The second question for the Government was how to address the implications for the funding of TENs projects in the UK. It is possible that projects that have been awarded funding from the EU budget will still be due money, which may not be paid, or may not be paid immediately, by the EU in the event of a no-deal exit. In 2016, the Government announced a guarantee that projects in the UK granted EU funding before exit would continue to receive funding from the Exchequer if the EU payments they would have received were not made. This guarantee was extended in July 2018 to cover successful applications for EU funding until the end of 2020. The guarantee ensures that UK organisations such as charities, businesses and universities continue to receive funding over a project’s lifetime if they successfully bid into EU programmes before the end of 2020.

A number of noble Lords asked how much funding we are talking about. The amount for the 2014-20 period is €345 million. I believe that there are 44 live projects—I will happily provide a list of them—23 of which are completed but may not have received their final amounts, 20 of which are in process and one of which will continue after 2020.

That brings me to another important point. As the noble Lord, Lord Teverson, brought up, the guarantee extends to projects that have been successfully bid for before 2020. The funding will then continue; providing that the project has been bid for, it will get the money.

[Lord Teverson]

That is fantastic but not what the Explanatory Memorandum says. It states:

“The powers would also enable the Secretary of State to make similar payments”—


—payments, not successful bids—

“up to 2020”.

I am therefore delighted by the Minister making that statement.

[Baroness Vere of Norbiton]

Let me keep going and see how we do.

The noble Lord, Lord Rosser, raised the issues of whether the projects will receive the funding, depending on whether the EU decides to give it, and the timing. I am afraid that we do not know because it will depend on future negotiations. I assure the noble Lord that the Government stand behind these payments, which will be made in the circumstances that they are not received from the EU.

The noble Lord, Lord Rosser, also mentioned the present circumstances and the Government’s limited role. The Government have a limited role because it is often private companies making the bid. The Government are not part of the decision process because, as I hope I have already explained clearly, it is clearly set out in the regulations such that the regulations govern the decision process.

The funds that will be paid out, or are guaranteed to stand behind these payments from the EU, are “new money”, to use the terminology. They are not from existing DfT budgets.

The instrument provides the necessary powers for DfT, the Department for Business, Energy and Industrial Strategy and the Department for Culture, Media and Sport to “operationalise” the Government guarantee and make payments in respect of CEF grants if these are not met by the EU in the event of the UK leaving the EU without a withdrawal agreement in place.

Common Fisheries Policy (Amendment etc.) (EU Exit) Regulations 2019

Debate between Baroness Vere of Norbiton and Lord Teverson

Tuesday 26th March 2019 Lords Chamber

[Baroness Vere of Norbiton]

I believe that we will be and I shall write if that is not the case—it is indeed the case.

Enforcement is an incredibly important issue. Defra is working very closely with the Marine Management Organisation, the Association of Inshore Fisheries and Conservation Authorities, the Royal Navy, Border Force and other organisations to make sure that appropriate arrangements are in place for day one. The UK will maintain its scheme of monitoring, control and surveillance through vessel monitoring systems, electronic logbooks and other reporting requirements. Over time, as we develop our fisheries regime, we will use the new powers in the Bill to create the offence of vicarious liability against, for example, owners and charterers of fishing vessels.

The noble Lord, Lord Teverson, was very clear that we should make sure that all those operating on the front line of control and enforcement are briefed on what they should do on day one: this is critical, because we have seen what has happened when things have gone wrong. People can be in the wrong place at the wrong time and doing the wrong things; tempers can get very frayed indeed and it can escalate extremely quickly. So, following approval from Her Majesty’s Treasury and Ministers, we are implementing our full control and enforcement preferred approach and putting in place a significant uplift in our control and enforcement capability for day one. In addition, the Joint Maritime Operations Coordination Centre—JMOCC—has been established to enhance joint working between law enforcement agencies and the Royal Navy to improve patrol capabilities and increase information sharing across government.

I thank the noble and right reverend Lord, Lord Eames, for drawing our attention to the issue of the Irish border. Many people think that that is a land border, but it is a sea border too, and I know of concerns about the suspension of the agreement between the UK and the Republic of Ireland due to a verdict of the Supreme Court of Ireland several years ago. This agreement allows for fishing in the inshore 0-6 nautical miles zone of Northern Ireland/Republic of Ireland waters. The Government are pleased that the Irish Government have committed to resolve the issue and to restore the agreement on the Irish side. We will certainly continue to discuss this with the Irish Government. Furthermore, we are working very closely with the Irish Government to patrol the seas in that area. It is absolutely critical that in all these circumstances, we work very closely with our neighbours to make sure that there are no misunderstandings, while recognising that, for example, control of seas around Northern Ireland is the responsibility of DAERA in Northern Ireland.

The noble Baroness, Lady Jones, mentioned the replacement of penalties. I should point out that fisheries administrations already have the power to adopt appropriate measures for ensuring control, inspection and enforcement activities under domestic legislation, so it is not necessary to bring the powers across. Where we already have the powers, obviously, we have not brought them across. The current and proposed future UK system of control and enforcement delivers effective penalties. We have no intention of weakening what we already have in place. Section 24 in Part III of the Fisheries Act 1981, for example, sets out penalties for offences, and Chapter 3 of the Marine and Coastal Access Act 2009 sets out the civil sanctions to be imposed by the appropriate licensing authority.

The noble Lord, Lord Teverson, asked about the cost of joining RFMOs. I am afraid I cannot remember what each of the initials stands for, so the noble Lord will have to forgive me, but for the IOTC—I am guessing that the T might stand for tuna; I cannot remember.

[Lord Teverson]

Yes, tuna.

[Baroness Vere of Norbiton]

Yes. The cost of joining the IOTC is £150,000 to £200,000; for ICCAT it is £100,000 to £150,000; for the NAFO it is £45,000 to £80,000; and for the NEAFC it is £400,000 to £600,000. That is the cost of our participation when we sign up as a member in our own right.

The noble Lord, Lord Teverson, also spoke about sustainable fisheries partnership agreements, which are agreements with nations that tend to be much further away. As an independent coastal state, the UK will set its own fishing opportunities in agreement with third countries, and we are considering whether and how we should replace existing agreements. The UK has not fished in Morocco since 2011 and it has not fished in Mauritania since 2012, so the only active fishing interest we currently have is an agreement with Greenland, with one vessel fishing there. That has been active in eight of the last 10 years. But certainly, we can go back and look at this in due course, once we have left the EU.

On the issue of quota and the figures, we have revoked provisions that relate to the setting of UK total allowable catch and quota for the UK. These provisions could not be made operable because it would be inappropriate for the EU to set the UK’s quota once it is no longer a member state. International quota swaps have already happened in 2019, so the fishing opportunities available to the UK as stated in the regulations are already out of date. The Secretary of State will therefore replace the current EU figures with the UK fishing opportunities, using common law or prerogative power. The 2019 figures will be published as an annexe to the UK quota management rules, which will be updated in time for exit day.

If the noble Lord will oblige me, I would like to come back to him on the legal side of the North Sea multiannual plan. I have a response here but I am not satisfied with it and I would rather write to him.

This SI brings across provisions that already exist for fees and charges. This does not in any way represent a change to the status quo, as the fisheries administrations already have this power.

Sharing of the MS data is of course a very important issue. A number of provisions in the CFP oblige member states to co-ordinate with or assist other member states, often in close co-operation. The UK absolutely intends to co-operate with the EU and our other neighbours, but of course is unable to legislate for co-operation with member states in the absence of international agreements, which I hope we will get in the future. Data for scientific purposes will continue to be collected and shared with international organisations such as ICES and the RFMOs. The data will also be published, as it currently is.

Detergents (Amendment) (EU Exit) Regulations 2019

Debate between Baroness Vere of Norbiton and Lord Teverson

Wednesday 13th March 2019 Grand Committee

[Lord Teverson (LD)]

I am sorry to interrupt the Minister at this late stage but can I be clear about whether these detergents are subject to REACH regulations? Do they have to go through the REACH system as well? As she probably knows, for the majority of chemicals if more than 1 tonne is exported from or imported into the UK those chemicals are covered by REACH regulations, which lay down a large number of other provisions. Are those included or not? I am sorry if that is an unfair question. I do not need an immediate response.

[Baroness Vere of Norbiton]

No question is an unfair question, my Lords.

[Lord Teverson]

But it is a vital question.

[Baroness Vere of Norbiton]

It is a very interesting question. They are subject to the REACH regulations, which were mentioned by the noble Baroness, Lady Jones of Whitchurch. I note her concerns about those regulations. As I am sure she is aware, they will be debated in due course in your Lordships’ House and were already debated in the other place on 25 February. I have a little more information on that issue, but I want to put it into proper context so I will write to the noble Lord.

I return to biodegradability and whether it would be downgraded in future. Whether these detergents and surfactants hang around in the environment for a long time is a very important issue. It is clearly a bad thing because they play havoc with water tension and so on. The Government have set out a vision for a green Brexit, in which environmental standards will be not only maintained but enhanced. The biodegradability criteria in the detergents regulations are essential in avoiding these adverse impacts on the environment. We are obviously mindful that if these are not disposed of properly, they can cause foaming and degrade or assist the eutrophication of rivers, which I believe is not beneficial to organic life.

Trade agreements can cover a range of issues and although the UK will be able to negotiate its own trade deals in the event of no deal, focusing on growth areas for our economy, the UK Government continue to be committed to high environmental standards after EU exit and to maintaining a high degree of continuity with current climate goals, green policies and wider environmental targets. I reassure the noble Baroness that, as I mentioned earlier, any changes to the technical annexes will be done by statutory instrument, and will therefore come before your Lordships’ House. Those sorts of issues would be included within that.

A number of noble Lords touched on the resourcing of the HSE—I had fair wind that this might come up. This issue was noted by the SLSC, but I suspect that it probably got to the stage where it had seen the HSE a number of times and thought, “Hang on a minute, we probably want to do something”. For these instruments, the additional administrative requirement for the HSE is minimal. However, I will commit to trying to get an understanding across the piece about how many additional functions the HSE is being asked to take on, and confirm that it is satisfied with the resources it has. That is only fair, because this one is minimal. I completely understand that but the SLSC has made that point and it is worth following up on.

The issue of fees for the HSE is an interesting one. This is only for derogations, and there has been only one derogation across the EU. The fees for derogations are agreed; there was a consultation with the industry. I could go into great detail about these fees but they are designed to meet the costs of derogations; obviously, we do not expect those to happen very often. A derogation occurs where one is using a detergent for a specific purpose which does not fall within the regulations. It would be highly unlikely nowadays with the biodegradable detergents we have for them to be frequent at all.

I move on to the issue of experts. Noble Lords will be aware that the Health and Safety Executive is a world leader in the regulation of chemicals and will continue to be so following EU exit. It also has the necessary regulatory scientific and technical expertise in-house. However, The Government Chief Scientific Adviser’s Guidelines on the Use of Scientific and Engineering Advice in Policy Making of 2010 state that,

“advice from external sources should be sought whenever necessary”,

and we would of course do so. Sources of research and advice may include: the departments’ own experts and analysts; research and funding councils; expert advisory systems such as the Science Advisory Council and the scientific advisory committees, and research and non-departmental sources. We have a great tradition of science and research in this country, and I remain convinced that we would find the right group of experts for the right problem. As noble Lords will be aware these experts will be used to update the annexes, which will go through the usual process.

The noble Baroness, Lady Jones, touched on governance. We have been here a few times before—

Feed-in Tariffs (Closure, etc.) Order 2018

Debate between Baroness Vere of Norbiton and Lord Teverson

Monday 4th March 2019 Lords Chamber

[Baroness Vere of Norbiton (Con)]

My Lords, I thank the noble Baroness, Lady Jones of Moulsecoomb, for securing this timely and important debate on the future of small-scale low-carbon generation. I also thank the right reverend Prelate the Bishop of Salisbury for his measured, thought-provoking and sometimes hopeful speech. It was certainly a very welcome contribution.

By way of context, the UK is a world leader in cutting emissions while creating wealth. Between 1990 and 2017, the UK reduced its emissions by over 40% while growing the economy by more than two-thirds—the best performance in the G7 on a per-person basis. According to PwC, the UK has decarbonised its economy at the fastest rate of any G20 country since 2000.

The feed-in tariffs scheme, introduced in 2010, alongside other government schemes, has been instrumental in enabling the UK to build a successful renewables industry in support of this rapid decarbonisation effort. Indeed, renewables accounted for 33.1% of generation in Q3 2018—the highest ever share—and the UK achieved a record 76 hours of continuous coal-free electricity generation in April 2018. Through partnerships with business, we are both tackling climate change and moving to a smart, low-carbon energy system.

We are working with industry to develop an ambitious sector deal for offshore wind, which could result in 10 gigawatts of new capacity, with the opportunity for additional deployment, if this is cost-effective, being built in the 2020s. We have also supported the deployment of new renewable technologies by investing up to £557 million in contracts for difference. Alongside this, and irrespective of the closure of the FiT scheme to new entrants, which was announced in 2015 and comes into force on 1 April 2019, installations already on the scheme will continue to receive support in accordance with the terms they received on joining. We recognise the need to go further, building on our remarkable progress in cutting emissions from electricity. The Clean Growth Strategy sets out our plans through to 2032, including ambitious proposals on smart systems, housing, business, transport, the natural environment and green finance.

We are delivering a smart and resilient energy system fit for the 21st century that will benefit every home and business. Small-scale generation and battery storage can play a crucial role in cutting carbon emissions as part of this smart, flexible and efficient system, both reducing local demand and providing clean power into the grid when it is needed. But, as the Secretary of State for Business, Energy and Industrial Strategy set out in his lecture “After the trilemma—4 principles for the power sector”, consumers of all types should pay a fair share of system costs. While government must be prepared to intervene to provide insurance and optionality, wherever possible we must use market mechanisms to take full advantage of innovation and competition.

In this context, it is worth reflecting on the success of the feed-in tariffs scheme and the reasons it is no longer aligned with the Government’s vision for a smarter, flexible energy system that minimises support costs to consumers. The scheme has made an important contribution to renewable generation and it outstripped predictions. It generates enough electricity to power 2 million homes. Since 2010, the scheme has supported over 830,000 installations and been instrumental in helping to grow the small-scale low-carbon sector. Our support has contributed to lowering the cost of renewable energy significantly. However, to date over £5.9 billion has been spent through FiTs to support small-scale renewables, and over £30 billion is expected to be spent in continuing to support the existing installations over the scheme’s lifetime. All bill payers share these costs, and the FiT scheme currently adds £14 a year to the average household energy bill, at a time when the focus is also on reducing average bills.

This consumer-funded subsidy model does not align with the wider government approach to minimising support costs on consumers. Take solar as an example: 99% of FiT schemes are solar PV. The support these installations receive comes directly from consumer bills; as hardware costs fall, it is vital that we control the impact on bills and move towards subsidy-free solar deployment.

Furthermore, looking specifically at the FiT export tariff, it is a flat-rate tariff that does not reflect the actual value of the electricity at the time of export, and is mainly issued on estimated exports to the grid, rather than actual measured values. It may be that payments are being made for electricity that has not been generated and fed into the grid. This stifles innovation in export tariff design and in technical solutions to track or shift time of export in a way that would provide whole-system benefits. Therefore, as this successful scheme closes to new entrants—new, not existing—we need to develop a market that sends the right signals to incentivise investment in local generation and storage, in a way that makes sense for a smarter system.

The Government have recognised that green power will likely be the cheapest power by the mid-2020s, and the prospect of subsidy-free solar PV is becoming increasingly realistic for developers. Two such sites have already deployed in the UK and the planned construction of two more large-scale subsidy-free solar projects has recently been announced. Alongside this, a range of emerging technologies, including electric vehicles, smart appliances and battery storage, are being developed that can work alongside solar and help to decarbonise our economy. For example, while the cost of solar cells has fallen by 80% since 2008, the cost of lithium-ion batteries has also fallen by over 70% since 2010 and is expected to halve again by 2030, according to industry experts. Companies in the UK, such as Moixa, are taking advantage of this reduction in costs and installing their battery systems in homes and businesses in the UK and abroad.

Increasingly, business investment in renewable projects and smart energy technologies will unlock growth in the UK solar industry. This market-led innovation in energy is absolutely key to our modern industrial strategy and our clean growth strategy. If we deploy smart, flexible technologies, we could save the UK between £17 billion and £40 billion by 2050, and this would benefit both consumers and the environment.

Turning to the smart export guarantee, we recognise the need to ensure that while these smart innovations are developed, consumers do not give away the power they have generated for free simply because suppliers are not yet ready to provide payment for their export. That is why we are consulting on a smart export guarantee. It provides a guaranteed route to market for small-scale low-carbon generation. We expect to see suppliers bidding competitively for electricity to give exporters the best market price, while providing the local grid with more clean, green energy.

I am sure noble Lords will appreciate a little more detail on the smart export guarantee. The Government are proposing to mandate that larger electricity suppliers—those with over 250,000 customers—offer small-scale generators a price per kilowatt hour which is exported to the grid. The remuneration will be available to all the technologies currently eligible for the FiT scheme—up to 5 megawatts. Suppliers will be obligated to provide at least one tariff. The consultation proposed five possible options for tariff design, and when we see the results of the consultation we will be able to bring forward further details. We are also guaranteeing that remuneration must be greater than zero, even at times when negative pricing would be in effect.

The noble Lord, Lord Grantchester, asked about the timing of this and, as I am sure he knows, the consultation closes tomorrow. We will analyse the responses to the consultation very quickly. We propose to bring forward proposals in this area as soon as possible; we do not want to see a significant hiatus between the closure of the FiT scheme and the SEG scheme coming into force. Of course, after any installation of capacity between the two schemes, that capacity would then be able to sign up for the SEG scheme when it is operational.

On the point about £1 a year made by the noble Baroness, Lady Jones, and the noble Lord, Lord Grantchester, it is true that that is for the export tariff, but I have already discussed this and why it does not represent good value for money for anybody. I also mentioned that it is £14 a year for consumers—that is all consumers, including the most vulnerable. That is a really important point that we sometimes forget: often, the people benefiting most from the FiT scheme are those who have the capacity and the agency to get solar panels fitted on to their very large houses, which is not necessarily the case for those who live in slightly smaller houses.

The noble Lord, Lord Teverson, asked about smart meters, a topic close to his heart, and indeed mine because we debated that Bill earlier. We are not aware of any technological reasons why smart meters cannot be installed in premises with generating facilities. Certainly, I will investigate further and respond to him because he asked for more detail about SMETS 1 and SMETS 2, so I will have to find some more information about that.

The right reverend Prelate the Bishop of Salisbury expressed concerns about jobs in this sector. Certainly, this is a highly skilled sector. While we expect that some people will have to shift jobs—it is very difficult to quantify the impact across the different technologies, capacity sizes and regions—we have not been able to quantify the job losses, if any.

The noble Baroness, Lady Jones, talked about a wide range of issues, going far beyond the FiT scheme we are discussing today. It is a topic worthy of a much longer debate. It is the Government’s position that we do not provide subsidies for the production of fossil fuels—the noble Baroness is looking at me aghast. We would never be able to do the issue justice in the very short time we have today, drilling down into the necessary detail.

Building on the considerable success of the feed-in tariff scheme, the smart export guarantee will ensure that small-scale, low-carbon generators do not export their electricity to the grid for free while also protecting consumers from unfair cost burdens. The SEG would provide space for innovative market solutions to come forward, reinforcing our vision for smarter, cleaner and more flexible energy systems. As a reminder, the consultation on these proposals remains open until tomorrow and I encourage all noble Lords to engage in the wider conversation around delivering this vision.

[Lord Teverson]

My Lords, may I be clear on what the Minister is saying? I thought she was quite positive in some areas. Was she saying that the Government intend that there will not be a gap when the exports finish—not a guarantee, but an intention? If there was a gap, would there be a reimbursement during that time? That is what I heard.

[Baroness Vere of Norbiton]

I am afraid that the noble Lord heard incorrectly and I apologise if that was what was understood from my description of what will happen. The consultation closes tomorrow; we will look at the consultation responses as soon as we possibly can. It is our intention to bring forward the new scheme as soon as possible, but we recognise that there will be a hiatus between the two schemes. However, anybody installing generating capacity between the two schemes will, of course, be able to sign up to the SEG when it becomes available. Installing generating capacity also means that they can take advantage of their own home-generated energy, so it has many advantages.

International Waste Shipments (Amendment) (EU Exit) Regulations 2019

Debate between Baroness Vere of Norbiton and Lord Teverson

Wednesday 27th February 2019 Grand Committee

[Baroness Vere of Norbiton]

I thank noble Lords for their contributions, especially the noble Lord, Lord Dubs, whose approach to this SI has been particularly forensic—I hope that he will do many more. I will address some of the issues raised today. A number of questions were asked that go into slightly more detail beyond the nugget of legislation that noble Lords are looking at today. I will therefore probably write a letter in addition to what I say today, particularly on the border crossing issue, which goes far beyond the scope of our considerations. I hope that I can answer noble Lords’ questions and put their minds at rest.

My noble friend Lady McIntosh mentioned the UK plan. I assure her that there are no concerns about the UK plan; it has been in place since 2012 and will continue.

Furthermore, my noble friend referred to the 556 approvals. She is quite right: when this instrument was laid, it looked like we had a mountain to climb in getting this waste approved and out of the country. I am pleased to say that this is an example of us working really well with our EU counterparts, who recognise the same as us that the shipment of this type of waste is hugely beneficial on both sides. It is an economic arrangement and makes sure that we get our waste treated in the right place, particularly where we do not have the capacity to do it ourselves.

The noble Lord, Lord Teverson, mentioned the trade in waste, both with China and more generally. If we lived in a perfect world, we would be able to dispose of and treat waste in our own nations, and that would continue for ever. However, some waste has a greater economic value to other countries or they have greater facilities to process that specific sort of waste, so I cannot see a future, at least in the short term, where we will ban all waste exports, because we simply cannot deal with some waste ourselves. However, we want to promote UK-based recycling and export less waste to be processed abroad. We are looking at a suite of measures, such as increasing the monitoring of international waste shipments and charging higher fees to improve compliance. We set out all these ideas in the recent resources and waste strategy, as the noble Lord will know, and we will publish more detailed plans soon.

The instrument retains the prohibition on the export of waste for disposal to countries outside the EU or the European Free Trade Association. The export of hazardous or household waste for recovery to countries outside the OECD is prohibited. Where we export waste destined for recycling to countries such as China—there will be other examples—that are better able to cope with this sort of waste, they will have specified which wastes they are willing to import and the procedures that UK exporters must follow are very well set out.

[Lord Teverson]

Do we have officials who check what happens to this stuff once we have exported it outside the EU and EFTA? Do we follow the supply chain and check what happens to it?

[Baroness Vere of Norbiton]

I would not want to confirm that 100%, but I hope very much that that is the case. I will investigate exactly what happens in the supply chain in order to find out whether we know exactly what happens at the other end. I think that all noble Lords will find that interesting; I know that I certainly would.

Turning to the Basel convention, I can confirm that we are members in our own right and that in fact we play a leading role within the convention in the way that it moves forward. We ensure that we get the best environmental outcomes from that particular organisation. That will remain the case and noble Lords should be reassured in that regard.

On Gibraltar, we are working closely with the Government of Gibraltar to support their EU exit preparations on waste shipments. Where the UK has 11 approvals outstanding, Gibraltar currently has 45 consents to ship waste to Spain which extend beyond exit day, and these will require reapproval by the Spanish authorities. It is a transitional issue for approvals to ship waste which have already been consented to. The EU legislation provides a framework for where consent has yet to be granted. Gibraltar is covered by the UK’s ratification of the Basel convention and our membership of the OECD, so there is no legal impediment to Gibraltar continuing to ship waste to Spain after our departure from the EU. If no agreement is reached within the next short period of time, what will happen is that Gibraltar would put forward new applications which will be submitted from 30 March onwards. Again, there is no legal impediment to those applications being agreed to. There will be a slight break in the continuity of service, but we do not think that it would be for very long. The Environment Agency has spoken to the affected exporters and contingency plans are being made.

I turn now to consultation, an issue which was raised by the noble Lord, Lord Teverson. This is a technical instrument and, if I may coin a phrase, nothing has changed. Much of what happens already will continue to happen. Organisations will get their approvals. There will be two countries working together, and the waste will go from A to B. However, it is important that we make sure that everyone is aware of the plans we have in place. As I explained earlier, we have held events where we talked to the stakeholders involved in this area. The conversations were focused strongly on contingency planning and encouraging them to make sure that they are ready for Brexit, if it is a no-deal Brexit, on 29 March. We have issued a technical notice on the continuity of waste shipments which was published on 14 October.

A number of questions were asked about costs and resourcing. I would like to reassure noble Lords that much of this will not change. The amount of enforcement which has to happen will stay the same, and the number of applications which have to be submitted to a certain office in a certain place will also remain as it is. We do not foresee any significant changes in costs or additional resources being required as a result of us leaving the EU without a deal. The systems are already in place, and we are confident that they will continue.

I would like to respond to some of the questions put by the noble Lord, Lord Dubs. He mentioned the sister—or brother—legislation, which has been mentioned. This is happening with some of the no-deal SIs, in particular Defra SIs. Some of the cross-cutting SIs are picking up various issues from other SIs and putting them into one because they sit more comfortably with each other. The SI we are talking about is the Environment and Wildlife (Legislative Functions) (EU Exit) Regulations 2019. These regulations were approved by the House of Lords on 12 February and the instrument was then passed by the House of Commons on 14 February. That piece of legislation has gone through and, once this instrument has gone through, the two will combine together and the SI will be made.

Turning now to the imports of waste from Ireland and the impact on the Irish border— which again I will try to answer as much as possible—we have in the past agreed to allow imports of hazardous waste to the UK for specialist disposal, for example, by high-temperature incineration. This has been at the request of the Irish Government, and these imports have been agreed on the basis that suitable disposal facilities are not available in Ireland. This is the same for many countries when they work together on these transactions. When the UK leaves the EU, such import of waste for disposal from EU member states will be prohibited under EU law. If EU member states wish to continue to export waste to the UK for disposal—that is, from Ireland to Northern Ireland—it will be for the EU to amend its legislation to make this possible. So it will not be possible in the future. In 2017, the UK imported 12,973 tonnes of waste from Ireland. Of this, 7,978 tonnes of hazardous waste was imported to England for HTI.

I shall probably stop at this point on the Northern Ireland-Irish border issue. I can see myself getting into hot water around it, and it would be sensible for us to give a considered response on this specific issue.

However, in general terms, I hope noble Lords will agree that the SI does what it says on the tin and keeps as much the same as possible. We hope it will not be needed in the future, but if it is, we know that the international transfer of waste will happen in an orderly fashion. I commend the Motion to the Committee.

Disposable Cups Ban

Debate between Baroness Vere of Norbiton and Lord Teverson

Monday 21st May 2018 Lords Chamber

[Baroness Vere of Norbiton]

My noble friend is quite right. It is the moisture barrier between the cardboard and the inside of the cup that is the problem. However, I understand that a large amount of research has been going on in this area and that products are coming on stream which will be recyclable. I should also say that on capacity, the Alliance for Beverage Cartons and the Environment is looking at increasing the capacity for recycling, and indeed a company called DS Smith in Kent has the capacity to recycle nearly all the cups that are currently being used.

[Lord Teverson (LD)]

My Lords, is not the real answer to go cup-less altogether? I went to Portland, Oregon, where part of their urban regeneration has put water fountains throughout the city and in public places. Is that not the obvious way to change government guidance on planning to make sure that British cities can benefit from that just as much?

[Baroness Vere of Norbiton]

My Lords, I am not going cup-less anytime soon. In terms of water refill, the noble Lord is absolutely right. He will know about the City to Sea initiative, which is an app for your phone. There are water fountains in airports, train stations, retailers and coffee shops. These are the sorts of initiatives that we should be focusing on; indeed, it is funded by the water industry.

Nuclear Safeguards Bill

Debate between Baroness Vere of Norbiton and Lord Teverson

Committee: 1st sitting (Hansard - continued): House of Lords
Thursday 22nd February 2018 Lords Chamber

[Baroness Vere of Norbiton]

I thank the noble Lord for his intervention. I am on paragraph 11. I have many more paragraphs to go and I hope that in those paragraphs I will be able to keep him very happy indeed.

I understand and share the sentiment of wanting to maintain a close relationship with Euratom. The noble Lord, Lord Warner, mentioned this relationship and it could indeed include any of the things that he mentioned, but they are subject to the negotiations. However, we have already stated very clearly that the Government will seek a close and effective association as part of phase 2 of the exit negotiations with the European Commission. What we cannot accept is that the regulations must await a definitive outcome of talks which are by their nature uncertain in both timing and result. It is therefore vital that we continue to work to enable the set-up of a domestic safeguards regime, and to have ready the bilateral safeguards and nuclear co-operation agreements that we will need to function as a responsible nuclear state from day one of exit.

This approach will reassure the international community that the UK remains committed to nuclear non-proliferation, and will provide clarity to industry that it will continue to be able to move vital materials, parts and expertise once we leave Euratom. There can be no question of waiting until we know the outcome of the negotiations on our future relationship before we can put in place our own arrangements. The implications of not having the right systems operating from when Euratom safeguards arrangements no longer apply are too serious for industry and for our position within the international civil nuclear community.

[Lord Teverson]

Can we actually make this clear? I have not heard anyone in this Committee saying, “Please, Her Majesty’s Government, do not do anything until this thing is finished”. We are not asking for anything to be delayed, we are saying, “Please get on with it”, but we need some information on the way; we have to have some idea of the destination, and Brussels wants some idea of the destination by 22 March and then in October. If it does not happen, what are the contingency plans? We are not asking for anything to not happen now. I do not think the Minister understands that. Did I hear anybody say that?

--- Later in debate ---

[Lord Carlile of Berriew]

I am grateful to the Minister for giving way. I suspect that she is now on paragraph 15, but she is not answering this debate, which is about whether Her Majesty’s Government are prepared to provide specified information to Parliament on certain criteria. What she is telling us would all be very interesting if we had not heard it many times before, but it is a dissertation on the roles of different organisations. Can we please have an answer to this debate? It is 4.32 pm on a Thursday and I would have thought that it could be answered in a few paragraphs—maybe numbers 47 to 50.

[Lord Teverson]

I was happy with the answer that the Minister was giving about NCAs.

[Baroness Vere of Norbiton]

With the greatest respect, I did not interfere in the writing of the speech of the noble Lord, Lord Carlile, and I will crack on a bit further to answer the points raised by the noble Lord, Lord Teverson, as I too think this bit is very interesting. We are talking about these additional countries because we are obviously going to have to set up NCAS with them, too, for trade to continue. I assure noble Lords that discussions on the four priority NCAs started a while back and are progressing well. They are on track to be completed before the UK leaves the EU. I can also assure noble Lords that this Government, as part of their planning process, have factored in the time necessary to seek parliamentary ratification of the agreements both in the UK and in third countries. This will enable the NCAs to come into force from the moment that Euratom arrangements no longer apply to the UK.

I turn now to the UK’s discussions with the IAEA. Noble Lords will be aware that the UK began formal discussions with it some months ago to conclude new safeguards agreements that would replace those between the UK, IAEA and Euratom when the Euratom arrangements are no longer applicable. These discussions, which began some months ago, as my noble friend Lady Neville-Rolfe mentioned, have been constructive and fruitful, and substantial progress has been made. I can be a little more specific: formal negotiations started last September and there were several rounds of preliminary meetings before that. There have been two rounds of negotiations so far, which have made substantial progress. I hope that that is helpful.

The amendment asks that the IAEA should recognise the ONR as the approved safeguards authority in the UK, as mentioned by the noble Lord, Lord Teverson. I will make it clear that the IAEA’s focus in respect of the UK’s safeguards lies with the voluntary offer agreement and additional protocols rather than with the domestic legislation underpinning the domestic regime or the UK Government’s arrangements for fulfilling their commitments. However, as I have set out, the Government have already held productive and fruitful discussions with the IAEA on the UK’s future safeguards agreements and understand what the IAEA requires of us in setting up the system. It is not necessary to consult on the detail of legislation or on the ONR’s readiness to implement the new regime with the IAEA.

As my right honourable friend the Secretary of State for Business, Energy and Industrial Strategy set out in his Statement to the House in September last year, the Government are seeking new agreements with the IAEA that follow exactly the same principles as the existing ones. This will ensure that the IAEA retains its right to inspect all civil nuclear facilities and to receive all current safeguards reporting, ensuring that international verification of our safeguards activity continues to be robust.

In addition to this, the Secretary of State set out on 11 January the Government’s intention to update the House on our overall progress with Euratom, including on the EU negotiations and other important matters such as international agreements. I trust that these reports, the first of which we expect to provide in a few weeks’ time—indeed, just before the Easter Recess—will reassure noble Lords that significant and substantial progress is being made. Indeed, noble Lords will be able to see it for themselves and will no doubt bring it back to the House to discuss, should they wish.

Amendment 15, tabled by the noble Lord, Lord Carlile of Berriew, inserts two new subsections and seeks to require that, by 29 March 2019, the Secretary of State must present to Parliament a substantially detailed report, along with draft regulations implementing any agreements reached with Euratom relating to safeguards, and have such regulations approved by both Houses. Amendment 14 seeks to prevent the substantive provisions of the Bill coming into force until regulations under Amendment 15 to implement safeguards agreements with Euratom have been approved. While I have sympathy with the noble Lord’s aim of ensuring robust parliamentary scrutiny, the process set out in Amendment 15 would not be appropriate. As we have already discussed in our deliberations on this Bill, I am confident that there are appropriate processes in place to ensure proper parliamentary scrutiny of the substantive powers in the Bill. Noble Lords can be assured that the regulations establishing a UK safeguards regime under the powers in the Bill will be subject to the draft affirmative procedure.

I turn now to the report proposed in this amendment. We have been open about our strategy for withdrawal and our future relationship with Euratom. In the Written Ministerial Statement on 11 January, we outlined a twofold approach under which we are seeking a close association with Euratom through our negotiations with the European Union. I refer noble Lords to the Written Ministerial Statement. It goes into some detail about our specific objectives in relation to a close association with research and training, continuity of open trade arrangements and close and effective co-operation on nuclear safety. This is a very broad ambition of ours, and it goes much further than the nuclear safeguards that we are specifically talking about today. Simultaneously with these discussions about our broader relationship with Euratom, on which we will report to your Lordships’ House every three months, we are putting in place measures to ensure that we can operate as an independent and responsible nuclear state from day one.

As noble Lords will be aware, we are planning negotiations on a possible implementation period. The Government have confirmed that they intend to include Euratom matters. This implementation period will start after the date that we leave the European Union. This must be taken into account. We are being open with our plans for a domestic regime, and we have been clear on our intentions for the new domestic regime. As made clear in the Written Ministerial Statement, the Government intend to be able to put in place a robust regime equivalent in coverage and effectiveness to that currently provided by Euratom. To put this more clearly, and for the avoidance of doubt, we would be meeting IAEA standards on day one and working our way to Euratom standards as soon as possible thereafter. A key but inevitable difference will be that reporting and assurance activities would be carried out by the ONR rather than Euratom.

The approach of using a domestic body rather than a supranational one to operate a domestic safeguards regime is common among other non-Euratom countries, such as the US and Canada, whose safeguards regimes consist of a state regulator, with the IAEA providing independent international verification. This approach necessitates some differences in the approach of the regime but we do not consider it to necessitate a reduction in standards. To be absolutely clear about independence, it is the international oversight provided by the IAEA and the inspections carried out by its inspectors that underpin the independence of nuclear safeguards around the world. As I have already mentioned, we have committed to providing Parliament with quarterly reports on progress from across the Euratom programme. These reports will include a section on ONR capacity and readiness as well as on research, which was mentioned by the noble Lord, Lord Fox.

Before I close, I want to return to the comments made by the noble Lord, Lord Carlile, about the meeting that he attended with officials. I want to flesh out the Government’s consultation strategy on this because I fear he thinks it is narrower than is truly the case. The Government continue to have discussions with the nuclear industry on the future of the nuclear safeguards regime. In addition to official-level engagement, Richard Harrington, the Minister for Energy and Industry, held a representative industry stakeholder forum in September. There have been further forums since then and the next one will take place on 5 March. The Government have provided the industry with pre-consultation drafts of regulations that we propose to make, and in late February we held a technical workshop on the draft regulations with key nuclear operators.

I hope my explanations have provided sufficient reassurances to noble Lords, and that the noble Lord feels able to withdraw his amendment.

[Baroness Vere of Norbiton]

I thank the noble Lord, Lord Broers, for that comment. I did have a little more flesh on that particular bone so I shall share it now. On the question of research, the Government’s objectives are set out in our recent future partnership paper, Collaboration on Science and Innovation. We are seeking a close association with the Euratom research and training programme, including the Joint European Torus and International Thermonuclear Experimental Reactor, or ITER, projects. The Government have already guaranteed our share of the funding for the Oxfordshire-based JET fusion reactor until the end of 2020, demonstrating our commitment to continued collaboration.

[Lord Teverson]

My Lords, I found part of the Minister’s statement extremely useful and I thank her for that, particularly on the NCA question.

However, there is an issue on which I would like clarity; I think it is very straightforward, and I ask this in a very positive tone. It is the Commission and the EU 27’s offer and negotiating position on transition that the whole of the Euratom acquis is also included in the broader EU transition agreement. Are the British Government in line with that, and will they go down that route as well? I do not hear that we are rejecting it. We have potential issues with the initial situation over residents and people on the EU side, but are the Government saying they are going to have the Euratom acquis as part of the transition that will be agreed, whether that is until the end of 2020 or the two years? If they were saying that, it would take a lot of pressure off what we are talking about as long as the IAEA was happy with it. That seems a very straightforward question and I presume there is a government policy on it. In the response today to Barnier’s negotiating position I did not see any contesting of the Euratom side of it, so I presume we are going ahead and agreeing that transition in March.

[Baroness Vere of Norbiton]

I thank the noble Lord, Lord Teverson, for that interesting question. If it is okay, I shall write to him, because I should like to find out more information about what we are allowed to say at this time.

Brexit: Agriculture and Farm Animal Welfare (European Union Committee Report)

Debate between Baroness Vere of Norbiton and Lord Teverson

Tuesday 17th October 2017 Lords Chamber

[Lord Teverson (LD)]

My Lords, the common agricultural policy has probably not been one of the most popular policies of the European Union over the past 40 years in the United Kingdom. Successful as it was in its original years in ensuring food security for the European continent after many years of warfare and trial, when we joined in the 1970s it was perhaps seen as the main reason for the large budget contribution that the United Kingdom made to the European Union. I remember all too well in the 1980s the structural problems, with the milk powder mountains and wine lakes. More recently, we have had schemes such as set-aside that were not particularly successful, the issue of the green pound and all the other bits of Eurocrat jargon that surround the CAP.

At the moment, under the most recent form of funding, the new system for landowners means that the more land you own, the more subsidy you get, so the barley barons get most of the cash, our food prices are higher than the world average, small farms are still going out of business and rural biodiversity is still declining. We can look at the common agricultural policy and say that it has not been an overwhelming success for the United Kingdom—and perhaps not for Europe. It still takes 36% of the European budget, although that has hugely declined from more than half the budget over the life cycle of the common agricultural policy.

You could say that if there is one area where Brexit has to work, it must be agriculture. Indeed, we heard much evidence of the various opportunities from our withdrawal under Brexit to move away from the common agricultural policy. The first is cheap food. At the moment, it is true to say that, with external tariffs for food, farmers are relatively protected, and some of our witnesses suggested that if we moved away from the common agricultural policy post Brexit, food prices could reduce by 7% or 10%.

We have an excellent opportunity to save taxpayers’ money. At the moment, under the CAP, our farmers and landowners receive €28 billion per annum in subsidy. It accounts for 40% to 60% of farm income. We could stop that, as the New Zealanders did in the 1980s, take it back into the Treasury and use that money elsewhere.

We could get rid of some of the rules. We found it a little difficult to find too many rules that the agricultural industry wanted to get rid of immediately, but the three-crop rule was one of them and there are others, perhaps more contentious ones such as on pesticides, that could be removed. In terms of animal welfare, we could move the gauge up or down. We could take more opportunities to drive our own welfare standards within agriculture.

Of course, we do not have to give all those funds back to our own taxpayers; we could use them perhaps more intelligently in terms of environmental management, rural development, integrated policies and making sure that agriculture is not an isolated area of policy but that it ties in well with climate change and broader environmental policy.

The United Kingdom is a big food importer. Our trade balance with the European Union is some €18 billion per annum. That surely gives us some leverage to attract free trade agreements from other countries across the world that want access to that market. Clearly, we have access to most of those elsewhere already so that would not change greatly. That is a list of important positives from disengaging from the CAP as part of the Brexit process. We heard a lot of that from many our witnesses.

Of course, there are challenges as well, which are significant. First, regarding trade, some 80% of our exports of agricultural produce go to the European Union. If we add in the food sector and those countries where the EU has free trade agreements from which we benefit, the number goes up to 97%. Part of that is around perishability. It is much easier to export products to geographically close areas and, obviously, it is part of the single market. Indeed, at the moment the EU external tariff is 54% on dairy products and some 22% on cereals. That gives an idea of the sort of level of tariff barriers there could be.

Of course, there will be non-tariff barriers as well. We as a committee are not saying in any way that we would not be able to reach a trade agreement, but if we did not, clearly some of those non-tariff barriers would be even greater. I am sure that the noble Lord, Lord Trees, will tell us about phytosanitary conditions and all of those other non-tariff issues.

We would hope to trade at least on World Trade Organization terms, but I hope there will be much better opportunities with the EU in a future agreement. However, already we have issues with the WTO over tariff rate quotas. This is already a key area. The Government have been successful in finding agreement with the European Union over the splitting of these quotas, but immediately that has caused a reaction in the United States, New Zealand and Brazil objecting to that solution and opening up that whole area of future tariff rate quotas with both the EU and the UK. It gives a taste of future meddling and perhaps vexatious intervention that some of these issues will create.

People are one big area the industry is concerned about and that is why being able to retain current EU staff and workers in this country, and in this sector in particular, is important. It is well known, and has been said many times, that 90% of our vets in abattoirs, an important part of our animal welfare programme, are non-UK EU nationals. In both food processing and agriculture, we require a large number of workers from the EU. Yes, we could replace them from other parts of the world, but that obviously will depend on our migration policy. Already we have difficulty in attracting and retaining people. An issue that came over very strongly is that agricultural workers in particular are skilled workers. The way in which they are able to harvest is very skilled but not in terms of a Home Office definition. It is an area where automation cannot substitute in the medium or short term. People are a key factor.

The committee welcomes the Government’s response on funding, which is guaranteed at current cash levels up to the next election. In reality, after that—this is not something that we should blame the Government for—the public and taxpayers will find it difficult under continued austerity to justify the amount of money that goes to this sector. So there will be a real issue around selling that deal. Of course, that may be around being able to guarantee better environmental management of all the public services that farming provides.

There is an issue around devolution. One of the things that the CAP provides is a common framework for agricultural policy not just for all member states but within the United Kingdom. Yet, importantly, agriculture is devolved. How do you make sure that there is a continued single market within the United Kingdom? Will we have four different regimes? Indeed, policy stability is one area that I had not thought of but it came through from some of our witnesses. The CAP might be difficult to change, but at least it meant the future could be planned to a large degree. Will that remain? In Ireland, there is an issue not so much of devolution but of cross-border trade and supply chains, so there are particular challenges.

Our report on welfare received a great deal of media attention on, for example, beef hormones and chlorinated chicken, which is not really a welfare issue, but under international pressure for other trade deals will those welfare standards be challenged? Our witnesses, particularly from this sector, were very keen that welfare standards should not decline post Brexit.

Lastly, in terms of the challenges of which there are many more for those who have read the full report, there is Defra itself. We have said many times in our environmental and fisheries reports that the workload on Defra is huge. Apart from being sympathetic to the Minister on the Front Bench, we again ask whether there are sufficient resources for Defra to deliver legal certainty and all those policies in that huge area over the period.

If I may start to conclude my remarks, there is a real dilemma in this area. Two approaches can be taken in terms of benefits and potential positives about Brexit and the negatives. Will we become a low-tariff, competitive New Zealand-style economy, open to free trade, open to those opportunities to bring down food prices and move on those deals where high-quality food and welfare standards will be difficult to enforce, given the sort of negotiations we will have with countries such as Australia, Argentina, Brazil and particularly the United States? Or will we continue to be a country, outside Europe, that demands high welfare standards and high-quality food and that looks to protect our hill farmers? It is absolutely clear that all our livestock farming cannot compete with the economies of scale, and particularly the lower welfare standards, in the large economies of the United States, Australia and New Zealand, perhaps, but also Argentina and Brazil. They can be characterised as the Liam Fox version and the Michael Gove view of Brexit—interesting but the Government will have to resolve that dilemma.

Will the Minister be able to include agriculture more successfully in his 25-year environmental plan? What is going to happen about tariff rate quotas? How does he see the whole WTO negotiations? How can we have a farming Bill when at present we do not know what the end destination is? Will the Minister reconfirm our commitment to high animal welfare standards? How does he see the transition?

Some 71% of land in the UK is devoted to agriculture, which employs 800,000 throughout the food supply chain and is 7% of the economy, worth £100 billion of value added. It is a vital part of our economy and our future. This raises as many challenges as it does opportunities. I beg to move.

[Baroness Vere of Norbiton (Con)]

My Lords, I respectfully remind noble Lords of the advisory speaking time of six minutes. There is another debate after this, and I am sure those noble Lords would be most grateful.