No Deal: Agriculture Tariffs

Debate between Jim Shannon and Robert Goodwill

Tuesday 16th July 2019 Westminster Hall

[Mr Goodwill]

I understand that a win is a win, which is why the results of the initial referendum and the referendum on Britain’s continued membership of the European Union should be respected and delivered on by all parties in Parliament.

As a responsible Government, we have spent more than two years carrying out extensive preparations for all scenarios, including no deal. Nowhere has the preparation been more assiduous and detailed than in my own Department. As we heard, the Government announced on 13 March a temporary tariff regime that will apply for up to 12 months should the UK leave the EU without a deal. In developing the policy, we have sought to balance the five principles set by the Taxation (Cross-border Trade) Act 2018. The five principles include taking into consideration the interests of consumers, producers, external trade, productivity and competition.

We analysed a range of evidence, including information on average trade volumes, tariff data and Government modelling on tariffs in a no-deal scenario, supplemented with business stakeholder engagement. Under this policy, the majority of UK imports—87%—would be tariff free. However, tariffs will be in place for the remaining 13% of overall trade, to avoid significant adjustment costs for certain agricultural products, where tariffs help to provide support for UK producers against unfair trading practices such as dumping, and to maintain our trade commitments to developing countries.

We have not had tariffs on cereals to any extent for a number of years. Indeed, I believe the protections that we are introducing through tariffs on imported poultry meat will help protect the cereal industry, because the major customers of our cereal producers will be producers of poultry and other meat products, which we are protecting.

[Jim Shannon]

I declare an interest in this issue as the chair of the all-party parliamentary group on eggs, pigs and poultry, which has asked me to pose the following question. Does the Minister agree that it is absolutely essential that eggs and egg products are included in the tariff scheme, given that it is the most effective way to ensure that all UK egg producers can continue to make improvements and further welfare standards without the threat of being undermined by low-quality imports from third-world countries?

[Mr Goodwill]

I hope I can to some extent reassure the hon. Gentleman on the issue of shell eggs, which is the major egg market. Supermarkets have made it clear that they would not seek to buy lower quality products, and that they will continue to sell only Lion mark products. I have heard representations on liquid and powdered egg, which might be a problem, and we will continue to listen to the industry.

The no-deal tariff policy has been carefully designed to mitigate price spikes should we apply the full EU most favoured nation rates to our trade with the EU, which will result in large tariffs and potentially price increases for both consumers and producers. I will give a few examples. Should we retain EU MFN tariffs, it will result in tariffs on pasta of over 20%, and 12% tariffs on basic foods such as potatoes, cabbage and lettuce.

The policy has been designed with the objective of minimising disruption in the agricultural sectors, and it aims to strike the right balance between exposing sectors to an unreasonable level of disruption and liberalising tariffs to maintain current supply chains and avoid an increase in consumer prices. A mixture of tariffs and duty-free quotas will therefore be used for beef, sheep meat, poultry, pig meat, butter and some cheeses. The aim is for their impact on production and consumption patterns to be broadly neutral. A point was made on lamb imports from New Zealand, which will be maintained at roughly the same levels. Lamb production is of course seasonal, and New Zealand production has always filled a gap in the UK market.

Exiting the European Union (Agriculture)

Debate between Jim Shannon and Robert Goodwill

Tuesday 23rd April 2019 Commons Chamber

[Mr Goodwill]

That is indeed the case. Seed potato production in Northern Ireland is less important than it used to be, but 318 hectares of certified seed are still grown there by about 50 growers. Of the 4,000 tonnes marketed, 2,000 were marketed in the Republic, 1,000 were marketed in Northern Ireland, and 1,000 were exported to countries including Egypt, Morocco and the Canary islands. In the event of a no-deal scenario, 2,000 tonnes will be lost. The main varieties grown for the southern market, including Kerr’s Pink, Maris Piper and British Queen, are not generally in demand in the UK market, and in the event of no deal an adjustment will therefore be necessary. Growers may wish to switch to new varieties such as Miranda and Opal.

[Jim Shannon (Strangford) (DUP)]

Has the Minister had an opportunity to engage in any discussions with the Ulster Farmers Union or the Northern Ireland Agricultural Producers Association? It is important for consultation to be wide enough to involve those organisations, which represent the farming community throughout Northern Ireland.

[Mr Goodwill]

There was no need for formal consultation, because this is a “no change” piece of legislation. It allows the current situation to continue in the event of a no-deal Brexit. However, conversations took place with many stakeholders, including representatives of the Ulster Farmers Union, who were content that the regulations maintained the status quo.

--- Later in debate ---

[Mr Goodwill]

That explains why it is so important that we get a deal across the line. Indeed, having had at least three or four opportunities to vote for that deal, we certainly need to see an orderly way forward.

Let me just comment on the point about the hon. Member for Strangford (Jim Shannon) needing some sort of protection. I do not think he needs any protection at all. My experience of him in this Chamber is that he can very much stand up for himself and indeed for his constituents, who are involved in not only the agricultural industry but the fishing industry in a very important way.

[Jim Shannon]

Obviously, in my previous job in the Northern Ireland Assembly, one of the things we tried to do was to ensure that the EU had a protected position for the Comber potato. It is renowned not just across the whole of Northern Ireland and the Republic of Ireland, but across the UK mainland as well. Other Members here may say that their potatoes are good; I can only say that ours are the best.

[Mr Goodwill]

Who could possibly argue with that? I have to say, however, that the new potatoes from Jersey and Pembrokeshire do hit the market slightly sooner than the Comber potatoes. However, the protection of particular locally grown produce is very important. Indeed, we have Lough Neagh eels, which are protected, and Armagh Bramley apples, which also have a great following, not only across the water in Northern Ireland, but here on the mainland too.

Oral Answers to Questions

Debate between Jim Shannon and Robert Goodwill

Thursday 23rd November 2017 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

6. What steps the Government is taking to help (a) women and (b) men balance work with childcare responsibilities.

[The Minister for Children and Families (Mr Robert Goodwill)]

Childcare is often the biggest challenge for working families. The Government are committed to supporting men and women to balance work and care obligations. That is why we have doubled the childcare entitlement for working parents of three and four-year-olds in England from 15 to 30 hours, and introduced tax-free childcare, which is available in Ulster. The right to request flexible working also enables parents to arrange care in a way that works for them.

[Jim Shannon]

Will the Minister outline how the Government intend to practically, and even financially, support small and medium-sized businesses, who incidentally are collectively the largest employers in Northern Ireland, to fulfil their obligation to consider and implement, where practical, flexible working times for parents?

[Mr Goodwill]

Flexible working is good for the employer as well as the employee, helping morale, motivation and productivity. It is vital in these times that businesses retain and recruit key staff. Progressive companies understand this and how flexible working is an essential element in securing success. We are working with employer groups and others on how best to promote genuine two-way flexible working.