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

Lord Gardiner of Kimble Excerpts

Wednesday 13th March 2019 Grand Committee

Moved by

[Lord Gardiner of Kimble]

That the Grand Committee do consider the Environment, Food and Rural Affairs (Amendment) (EU Exit) Regulations 2019.

Relevant document: 19th Report from the Secondary Legislation Scrutiny Committee (Sub-Committee B)

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

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

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

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

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

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

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

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

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

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

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

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

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

[Baroness McIntosh of Pickering (Con)]

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

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

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

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

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[Lord Gardiner of Kimble]

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

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

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

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

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

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

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

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

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

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

[Baroness McIntosh of Pickering]

And Harrogate Spring Water.

[Lord Gardiner of Kimble]

And Harrogate Spring Water; I thank my noble friend. I do not say this to encourage a feeling that I am against EU produce, but I think that the British Government have taken a very pragmatic approach to an issue that I very much hope does not transpire and that we can find satisfactory arrangements.

On the points raised by the noble Baroness, Lady Bakewell, on trade, I very much hope that EU companies would consider applying, if that were to be the case. The Government support consumer choice; that is very important. I am mindful, however, of what I have said about London tap water and other wonderful waters from all parts of the United Kingdom. Looking at the noble Lord, Lord Beith, I think of some very fine water from Northumbria. Around our country, we have these great examples. On the issue of labelling, as we know, following the death of Natasha, the Secretary of State embarked on a consultation so that people can know much more about what is in made-up food. A lot is happening, thank goodness, voluntarily, but we are having this consultation because we take very seriously the need for consumers to have all the information they desire and need.

The instrument does not amend food labelling rules—it is not intended to; it is about temporary fixes to operability. On the issue of Northern Ireland borders, only a limited range of goods will need to enter the UK, including Northern Ireland, through a border inspection post. The purpose is to protect human, animal and plant health after we have left. In a no-deal scenario, animals and animal products from countries outside the EU would need to enter Northern Ireland through a UK border inspection post, as is the case now. We will always keep our biosecurity analysed for risk.

Clearly, we are also committed as a Government to continue discussions with the Commission and the Irish Government to jointly agree long-term measures to avoid a hard border, which we strongly desire to avoid, and to limit the impact on life on the island of Ireland, which is crucial.

There may be other key points. The noble Lord, Lord Trees, asked about BIP capacity. It is considered sufficient. There are 25 UK BIPS. The estimate is for an extra 8,000 checks at UK BIPS. Port health authorities—I have quizzed this myself—have confirmed that they can meet that extra demand with existing food inspectors. Ports are developing more capacity to deal with it. I know that work is in progress at Calais, at Coquelles. A lot of work is going on.

I am looking for other key points that I should answer. On the issue of consultation on food labelling, raised by the noble Baroness, Lady Jones, Defra has raised stakeholder awareness of the food labelling technical notices of last September and of the amending of food labelling laws consultation, which I mentioned. Defra Ministers have engaged many times with key stakeholders externally to the consultation.

The instrument is about technical operability, with the exception of natural mineral waters. All these areas are technical, so on the precise instrument, the answer is that it was not necessary. However, I would like to say—and perhaps will write to noble Lords about this—that there are many instances of ongoing engagement on spirit and drinks, food labelling, GMOs, animal imports and working with importers. There has also been, to date, engagement with 300 stakeholders covering 50 events. Therefore, beyond these statutory instruments, a very considerable amount of consultation and working with others has been undertaken.

This may be the last point. The noble Baroness, Lady Jones, raised a question about separate food labelling across the devolved Administrations. Clearly we have to respect the devolved arrangements and food labelling is devolved, but it is fair to say that all four parts of the kingdom are working together very closely to ensure that there is no disruption to the UK internal market in the event of a no-deal scenario, or indeed any scenario. I think that there is a recognition among all parts of the kingdom that the internal market within the UK is tremendously important and that we should work collaboratively. The evidence I have from all the SIs, on these matters and beyond, is that sense and pragmatism is prevailing.

I will study Hansard again, because there may be some points in the many questions I have sought to answer that noble Lords would like more detailed answers on.

[Baroness Jones of Whitchurch]

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

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[Lord Trees]

Perhaps by writing I could have an answer to the question on when the replacement for TRACES might be operational.

[Lord Gardiner of Kimble]

The successor to TRACES, IPAFFS, was launched on private beta on 14 February, for organisations with the greatest need. It will be operable for all third-country exports from the day we leave. We intend a separate system for imports from the EU, with IPAS coming into play in the summer, I think. I would not like to give a precise date, but obviously we want this working effectively, and I will write to the noble Lord—

[The Deputy Chairman of Committees (Lord Rogan) (UUP)]

My Lords, there is a Division in the Chamber. The Committee will adjourn for 10 minutes.

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[Lord Gardiner of Kimble]

My Lords, I commend these regulations to the Committee.

Motion agreed.