Common Organisation of the Markets in Agricultural Products (Fruit and Vegetable Producer Organisations, Tariff Quotas and Wine) (Amendment etc.) Regulations 2021
Debate between Lord Moynihan and Baroness Ritchie of Downpatrick
Lord Moynihan (Con)
My Lords, I am grateful to my noble friend the Minister for that clear explanation—a fascinating defence of correcting an error. It is in the spirit of recognising that she has clearly done a lot of work on this that I simply want to ask a few questions and draw her attention to a number of issues relevant to the statutory instrument.
I should add that my interests in the wine trade elements of the statutory instrument stretch back to being a member of the Select Committee of your Lordships’ House that looked into the wine trade in the UK and Europe, as well as to my membership of the Haberdashers’ Company wine committee. It is in that context that I wish to ask my noble friend the Minister a number of questions. I do so in gratitude to the WSTA, which has provided some very good briefings over recent months, as we have returned to this subject in the space of just two months to correct the error that my noble friend has kindly brought to the attention of the Committee.
The most significant change from leaving the single market has been the introduction of wine export certificates for English and Welsh wine exports to the EU. While the TCA has introduced a simplified certification regime that can be self-certified by producers without the need for costly laboratory analysis, which would have been the default outcome had the TCA not been agreed, the simplified system is still in my view—and in the view of many in the industry—paper-based but unnecessary. No other category of alcoholic drink is required to have an additional import certificate when entering the EU or the UK. I see no reason to maintain the requirement for wine coming into the UK.
The UK and the EU should surely agree on the forms that should now be scrapped completely for movements of wine between the two but, failing that, there is provision in the TCA to develop an electronic system, which we have debated in previous Committees on this subject. I would be very grateful if the Minister could confirm that that is being developed as a matter of urgency, hopefully by the end of the year.
The second item I want to raise—I am sure that the noble Baroness, Lady Ritchie of Downpatrick, will also raise this when she follows me—is the moving of goods into Northern Ireland. This is still a significant issue, as is well known to the Committee and the House. The Northern Ireland protocol requires goods sold in Northern Ireland to have a Northern Ireland or EU 27 food business operator identified on the label, but UK excise rules require an excise duty stamp as proof of payment of excise duty. This means that English producers must either produce specific labels for Northern Ireland or “oversticker”, which is costly and bureaucratic. Of course, there is a solution: get rid of excise stamps for spirits, since no other category of alcoholic drink requires proof of payment of excise duty.
Attached to the statutory instrument were a number of documents which the Government have published, technical notices which helped people prepare for the end of the transition period. In the spirit of removing ambiguities, I close by gently pointing out that, on the food and drink labelling changes, there is a guidance note on completing the wine exports self-certificate, which everyone now has to complete. It says with regard to box 7:
“Only complete this section if the place of unloading is different from the consignee’s address you entered in Box 2.”
However, box 2 is for the serial number. Perhaps officials could have a little look at that to make sure that the next edition of that form, which is now required, is corrected. But in the spirit of thanking my noble friend for bringing this statutory instrument to the attention of the Committee and removing ambiguities that had otherwise existed, I confirm that I support the statutory instrument and I think that both he and his officials have done some excellent work in clearing up the uncertainty—not necessarily an error, but an uncertainty—that has led to this statutory instrument.
Baroness Ritchie of Downpatrick (Non-Afl) [V]
I thank the Minister for his explanation of these regulations. It is a pleasure to follow the noble Lord, Lord Moynihan, on this issue. I note that this instrument, which is subject to the affirmative procedure, would amend several retained EU regulations relating to the common agricultural policy and the common organisation of agricultural markets for the fruit and vegetable producer organisations aid scheme. Basically, in my humble opinion, they seem to deal with marketing operating measures. I further note that, according to some research, this SI and previous related regulations are essential to prevent significant disruption at the end of the transition period.
The Minister stated that the regulations would not introduce new policy but would preserve the regime for supporting rural development, as well as updating other aspects of retained EU law to reflect amendments made by the EU in 2019 and 2020. In fact, the Minister in the other place, Victoria Prentis, made referrence to that fact and stated it directly as part of her contribution to that debate in the other place. Before moving to the actual SI, which I know is striving to remove those ambiguities as we proceed on the path following our exit from the EU, it is important that economic stability is created within the farming sector. For the landowners, the tenant farmers who are the producers, for the wider rural network and then for the processers, retailers and consumers, it is important that this legislation allows that to happen.
I hope the Minister can provide assurances to the Committee that this will underpin our agricultural and agri-food industry. Maybe she can provide an update on this issue in tandem with the implementation of the Agriculture Act of last year. Only last week, we had a debate in your Lordships’ House on the Hungry for Change report, where we discussed the need for the Government to be working with charitable organisations and other bodies in both the central and local government sectors to ensure greater accessibility to environmentally sustainable food for all at a reasonable cost. I am in no doubt that we all need to work together to develop a food system that becomes resilient to shocks in our system and to safeguard all our communities and people. Will the Minister indicate that this SI will enable us along the road to do just that? Will she provide assurances to that effect?
Moving on to the SI, I note that the regulations contained therein will fix an error relating to the commencement of Part 4 of the Agriculture (Payments) (Amendment etc.) (EU Exit) Regulations 2020. Will the Minister elaborate on the nature of the error, why it has to be corrected and how this correction will contribute to the marked importance of agricultural products to the rural and wider economy?
The noble Lord, Lord Moynihan, referred to the Northern Ireland protocol, the attendant issues that have arisen out of Brexit and the difficulties for products being imported into Northern Ireland from GB because Northern Ireland will still have to adhere to EU rules. Therefore, with the operation of the Northern Ireland protocol, where agri-food products are governed by this instrument, what is the relationship between it and the protocol? I presume that Northern Ireland will continue to be governed under the original EU rules.
We do not want any trading barriers between Northern Ireland and GB and vice versa. Therefore, could the Minister indicate whether, in negotiations with the EU, the Government will pursue a Swiss-style arrangement with it, which would eradicate a large proportion of the problems for SPS?
Furthermore, will this instrument ensure that Defra and the devolved Administrations continue to obtain certain production and price data from economic operators, and how will this manifest itself? What will be the intersection between this statutory instrument and the common frameworks for agricultural support; food labelling and compositional standards; plant health and varieties; and seeds? I indicate my interest as a member of the Common Frameworks Scrutiny Committee. Can the Minister provide an update in relation to this matter as well?
It is worth noting that many of these SIs, which deal with EU exit matters, coincide with many of the issues of divergence that are covered by common frameworks. It is further interesting to note that a large proportion of these frameworks relate to Defra and are at very early stages. Perhaps the Minister will be kind enough to indicate when we will receive the final frameworks for scrutiny. Why are they being held up? Perhaps she could write to me on those particular issues—I look forward to that.