Direct Payments to Farmers (Legislative Continuity) Bill
Lord Teverson ExcerptsWednesday 29th January 2020
(5 years, 5 months ago)
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Lord Teverson (LD)
My Lords, I confess to having a roughly 4 acre field for which I get no subsidy whatever, except for an electricity pole for which I get about £200 a year—maybe less than that. I am also a co-chair of the Cornwall and Isles of Scilly Local Nature Partnership.
I will approach this in a slightly different way. I support this Bill, which is a sort of sticking plaster between now and 12 months’ time. It is quite delicious to me, in a way, to see the Conservative Front Bench going out strongly for state aid for a particular sector—something that normally the Conservative Party would not necessarily associate itself with. I know that this is a money Bill, so we will, quite rightly, not have much influence over it, as it is the other end’s business. We say that perhaps rather glibly as the Bill goes through, but this is big bucks—it is a lot of money. We put state aid into this industry of between £3 billion and £4 billion a year. That is quite a bit of money. In fact, if you look at it per household in the United Kingdom, every household contributes about £120 to the agricultural industry. That is just a little less than the TV licence fee, for instance. I guess that the 1.6 million people who use food banks might find it quite ironic that, on average, as a household they also pay £120 towards the food production sector in this country. That may well be necessary, and I will not argue against it here, but we should be aware of that, because that money can be used for other things as well, and increasingly will be, we are promised, over the next eight years.
I must admit that I am particularly impressed by the noble Lord, Lord Bew, who has somehow managed to persuade the Treasury, almost it seems without any argument, to add about a quarter of a billion pounds to this. That is excellent—perhaps we could find a way to do that with other sectors. I would like to have a masterclass from him afterwards on how he managed to achieve that.
The noble Earl, Lord Devon, in his excellent speech, talked about trying to get more certainty in this area. In fact, he mentioned that one good thing about the common agricultural policy, with all its faults, was that there was predictability. However, I should remind the House that, at the moment, the EU Commission is going through a major reform of the common agricultural policy which is in fact so fundamental that it has had to postpone it for one year. That has two strands: one is semi-renationalisation of agricultural policy, and the other is that some 25% of the EU budget, of which agriculture is a major part, will be dedicated to the climate change challenge. Ironically, therefore, even if we had stayed in the European Union, which clearly we will not, some of these issues regarding our agricultural sector would have come anyway, and maybe the Government could have come up with some of the same solutions that they are coming up with now. However, I am concerned that that uncertainty will be extended over some seven years—in fact you have to add this year on as well, so there will be eight years of transition to the next form of final implementation of the new system regarding payments for public good.
Actually, I want to praise Michael Gove as Secretary of State in Defra for changing the agenda here in a forthright, brave and courageous way to make a radical change in how this works. I regret that he will no longer be the custodian of the 25-year environmental plan, of which this effectively is a key part, because there is public expenditure here on a big scale, and a way to do it.
I was quite surprised that the noble Baroness, Lady Bennett, did not mention that we have a biodiversity crisis in this country at the moment. If you look at the State of Nature 2019 report, which came out at the end of last year, you will see a list of all the species, particularly in rural areas, which are heavily challenged and the numbers of which have decreased since 1970. That is urgent, yet we have an eight-year transition period until we put in a scheme that has some hope of reversing that biodiversity challenge. I say to the Minister that, both on getting more certainty for the sector, as the noble Earl said, and on our environmental challenges, surely we can start to make that transition shorter. We had a debate on the landing obligation for fisheries—the Minister did not answer it, but he was there—and, although that was a European and partly British issue, we know that you tend to wait for deadlines to happen before you get round to doing something about them. I think that eight years is too lazy; it risks leaving those major reforms to the last few years, which to a large degree it already does. So let us bring it forward.
Of course, the real challenge to the sector is not this one. The destabilising factor is not the funding mechanism; it is international trade. Let us be under no misapprehension whatever that, with the United States, with Canada—which has refused to do a rollover deal with the United Kingdom on its EU agreement—with South America and with Australasia, the key asks for those trade deals will be on agricultural entry to the UK market. How that is done is down to how good we are at negotiating as a country with those other nations. I hope and pray that we will be very good at doing that, but the uncertainty about those trade deals, how they will be interpreted and who has power—that power equation—will be unknown for some time.
I want to ask the Minister a couple of questions. As he is probably aware, in the Northern Ireland protocol under the withdrawal agreement, Article 11 states—clearly for once; it is a pretty unclear document otherwise—
“consistent with the arrangements set out in Articles 5 to 10, and in … respect of Union law”—
that is, European Union law—
“this Protocol shall be implemented and applied so as to maintain the necessary conditions for continued North-South cooperation, including in the areas of environment, health, agriculture”.
Under the state aid provision in Article 10, it states:
“The provisions of Union law”—
that is, again, European law—
“listed in Annex 5 to this Protocol shall apply to the United Kingdom, including with regard to measures supporting the production of and trade in agricultural products in Northern Ireland”.
Will this and future state aid to the agricultural sector be constrained by that Northern Ireland protocol?
My other question is this. Previous speakers have mentioned the Rural Payments Agency. The RPA has done a lot better on Pillar 1 payments. We are never confident about it, given its history, but what concerns me is that, as my noble friend Lady Bakewell pointed out very well, the current delay relates to Pillar 2. Effectively, the future support mechanism will be a Pillar 2-type process. How that is managed, enforced and communicated will be very complex. I wonder whether Defra has taken into account how much of the capacity of the RPA will be needed under the future regime.
My last question is this. A fundamental change that has not been mentioned in this debate is that at the moment, under the CAP, the money comes from Brussels a year later, as we heard, to cover the cost of the CAP paid out by the UK Government. That changes. This will now be an integral part of Defra’s budget. Given the fact that it is quite difficult to predict payments, there will be a difference from what has been budgeted for in government expenditure—Defra expenditure in particular—at the end of the year. If it is 10% of £3.5 billion, that is quite a bit of money. Will that be taken off Defra’s budget if it has under-budgeted or, if it goes over, will it be sent straight back to the Treasury? I know that in the past Defra has often suffered from Treasury cuts, and I am concerned that, if it gets its budgeting wrong, other essential services it provides will be prejudiced by the fact that the Treasury will be very unhelpful at the time.
Fisheries: EU Landing Obligation (European Union Committee Report)
Lord Teverson Excerpts(5 years, 5 months ago)
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Lord Teverson
That this House takes note of the Report from the European Union Committee Fisheries: implementation and enforcement of the EU landing obligation (26th Report, Session 2017–19, HL Paper 276).
Lord Teverson (LD)
My Lords, perhaps I may say to those Members who are about to leave the Chamber that fisheries is going to be a big issue over the next 11 months, so do not miss this chance to educate yourselves.
I will speak to both of our reports, but before I start I want to make clear that, although parts of the committee’s report may be critical not just of the industry but of the sector, we should recognise that fisheries is one of the toughest and most dangerous professions, so we should have this debate in that context. I also welcome the Minister, in his continued role, in this House, and I welcome the fact that he will be replying to the debate on behalf of the Government. I look forward to his speech.
I shall go through one or two facts about the landing obligation or, as we know it in common parlance, the discarding ban, although the fishing industry itself would argue that the two things are rather different. However, most people can think of it as being pretty much the same thing.
In 2013, when legislation in the European Union on the landing obligation came into force, the estimated amount of discarding by European fleets was running at 1.7 million tonnes of fish in that year. That is not just a biodiversity challenge; it is obviously an obscenity in terms of food waste. Of course, for some people who do not know much about this subject—and why should they?—returning fish to the ocean because the vessels do not have a quota for them might sound quite benevolent, but in fact the vast majority of those fish are unable to survive.
Why are these reports, the first of which was published in the middle of last year, still important? It is because this is a challenge for the European Union fleet as a whole and will continue to be relevant once we become an independent coastal state. No doubt one of the questions that will be asked is whether it is still the Government’s policy to have a landing obligation once we have “control of our own waters”. Confirmation of that would be useful, although I know that the Government have been quite strongly supportive of the landing obligation since it was introduced.
I shall give a timeline on how the legislation has been working. It was passed in 2013, much of it as a result of pressure generated in the United Kingdom by celebrity chefs and British NGOs. It was implemented over a four-year period, meaning that it was gradually introduced. It was a major culture change for the fishing industry, so it was sensible to introduce it gradually to cover different classes of fish and stocks over the period. It was finally implemented in total on 1 January 2019, after that long period of preparation— six years overall—since the legislation was agreed.
For our second report, the committee wanted to understand how the discarding ban or landing obligation had fared. The answer was not something good or anything that could be welcomed. What became quite clear from the stories we heard in the evidence, some of which I will go through, is that in reality, if I can be harsh enough to put it this way, the fishing industry itself has carried on as it was, the regulators have been gentle in terms of trying to enforce the discard ban but have not had the tools to be able to do so, and member states have effectively turned a blind eye to what has been happening. We still have that great challenge there.
What is the evidence for that? First, we should have had a lot more undersized fish landed. Half way through 2019, the total tonnage of undersized fish landed in the UK was 85 tonnes. Noble Lords might think that sounds small, but, interestingly, even more was landed—almost four times as much—the year before, so that had actually gone down.
Secondly, there were very few facilities in the ports in reality. One of the big issues is around choke, which is when a vessel in a mixed fishery—very relevant to United Kingdom fisheries—runs out of quota for a species and therefore has to stop fishing altogether. That is one of the problems of the landing obligation, which no doubt many speakers will talk about. But, to the end of 2019, I do not think there was any sign at all of any choke arising and fleets having to stop fishing because of that.
Thirdly, another area that should be an indicator of problems, with the landing obligation coming into operation and fear of the choke, is that quota swaps would stop happening, because fish quota owners would not wish to lose the opportunity to carry on fishing. Yet the information from Defra is very much that the level of swaps continued.
It is not only the fact that this is not happening out there on the high seas; there are also particular dangers. First, a disregard of legislation and the law is clearly not a good thing generally and is a bad culture in any industry. Secondly, quotas were increased to take account of the fact that fish would be landed rather than thrown away. Those quotas have gone up, but the way in which people have acted has not changed, so we have the real issue of greater overfishing.
What are the challenges here? First, there is enforcement; this is always difficult on the high seas and in territorial waters. Fishing is a secretive industry in many ways; people do not want to say where those resources are. There is culture; this is a major change in the way the fishing industry works, and all industries find it difficult to change quickly. Also, there are not the tools to do the job. The stark fact is that it has been proven in other areas—New Zealand, British Columbia, parts of the United States and other parts of the world—that you need remote electronic monitoring, effectively closed circuit TV, to be able to do this. The technology has been tested, works and is getting much less expensive. The other area of challenges is exemptions. If you have too many exemptions, the whole system starts to fail—and those have been increased recently. I suppose there is also the experience of two other nations, Iceland and Norway. It is said that it took some 20 years for Iceland in particular to adjust to its landing obligations. No one is saying that this is easy.
This is relevant because these whole issues will remain post Brexit, when we have control over our independent waters. My questions to the Government that arise from this report are: will it remain government policy to keep the landing obligation? I looked through the Conservative manifesto, which says a number of good things about fisheries, but I did not see a specific commitment to this. If you really want to stop discarding, you need remote electronic monitoring technology. Will the Government bite the bullet, however difficult that is, and eventually—hopefully in the medium term—introduce this technology? If so, will they also then insist that non-UK vessels coming into UK waters also have that technology? Also, when will the fisheries Bill—which I understand might be introduced to this House—actually arrive, so that we can see and start to really look at legislation on these issues?
What is quite clear is that the discard ban is the right policy. Discarding however many million tonnes of food is clearly wrong commercially, ecologically and morally, so I support the Government entirely in what I hope is their intention to keep this policy. But we have to make sure that we have a way to implement it. I beg to move.
Lord Teverson
My Lords, I congratulate the Minister on his response, especially because I do not think that he is even going to have this as part of his portfolio in the future. I hope he will remain very involved in this issue because clearly, in terms of biodiversity and all the other areas, the marine environment—as has been said, particularly by the noble Baroness, Lady Bennett—is extremely important. I am sure that the House recognises his great expertise and his track record in environmentalism from the anthropological side—in his early days of travel abroad—right the way through to his editorship of The Ecologist. He hugely boosted its readership at the time, although latterly it became difficult for it to survive due to the change in the way the media works.
Furthermore, an MP standing down from Parliament on principle to cause a by-election is something that is not often done. It was courageous; it may not have paid off absolutely immediately, but it did two years later. I think that the House recognises both his courage and his commitment to this area.
On the report, he may well have had, as he suggested, instructions on how Ministers respond in the House of Lords and been educated on how to perform today. There is also a rule for committee chairs introducing reports such as these: when you sum up, you should be as brief as possible, especially when there is a debate coming up with 30 more speakers and it is the last business of the House on a Thursday. So I am just going to thank all those who have contributed, particularly those who are not members of the committee. I also want to thank our excellent committee clerk, Jennifer Mills, and our administrator, Jodie Evans, for their work. This is a really important subject and I think it is recognised that it will certainly be a key issue during the negotiations with the European Union. We will no doubt come back to this subject.
Trade Policy: Environmental Aspects
Lord Teverson Excerpts(5 years, 5 months ago)
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Lord Gardiner of Kimble
We will obviously want to retain all our environmental standards—our food safety and other standards—both in our own production and in that coming via imports, because we want to be one of the world-leading countries with a successful green economy. Clearly, we will not compromise on those standards in our trade negotiations.
Lord Teverson (LD)
My Lords, the Minister will be very aware of biosecurity—I welcome his work in this area—the absence of which could be one of the greatest threats to our environment and our future biodiversity. One area of concern is ballast water for ships on international trade. In 2017, the International Maritime Organization greatly tightened up the regulations governing ballast water, yet I understand that the Department for Transport has not put any resource into implementing that decision. Will the Minister have a word with his DfT colleagues and make sure that this happens?
Lord Gardiner of Kimble
The noble Lord hits on an important part of what we need to do. We are working on this; I have already had discussions with the Department for Transport, and I will continue to do so. We are very clear about the importance of this issue. One of the chief areas I am concerned about is invasive species, which is one of the key five environmental problems. What the noble Lord has said is extremely helpful.
Office for Environmental Protection
Lord Teverson Excerpts(5 years, 5 months ago)
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Lord Teverson
To ask Her Majesty’s Government when the Office for Environmental Protection will become (1) operational, and (2) take on its full statutory powers and responsibilities.
The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Gardiner of Kimble) (Con)
My Lords, we plan for the OEP to be operational from 1 January 2021, at which point it will begin to perform its full statutory powers and responsibilities. It will therefore be operational from the day that the UK leaves the oversight of the EU institutions, at the end of the implementation period. The OEP will be ready to receive complaints from day one.
Lord Teverson (LD)
My Lords, I thank the Minister, and welcome that announcement and that reassurance. The Minister will also be aware that Defra, where this body probably will lie, keeps very close to its executive agencies and its non-departmental public bodies. In fact, it calls them “the Defra family.” How will he ensure that, if it is part of that family, the office will remain entirely independent and fearless in carrying out its statutory duties?
Lord Gardiner of Kimble
The noble Lord is right: independence is key. The environment Bill will state that the OEP will be operational independent of Defra. Ministers will not be able to set its programme of activity or influence its decision-making. It will be accountable to Parliament through a sponsoring Minister. We intend the chair to be subject to a pre-appointment scrutiny hearing. Ministerial appointments will be regulated by the Commissioner for Public Appointments. It is important that the OEP is independent. It will be.
Lord Gardiner of Kimble
Yes, I asked rather the same question of officials, if I may say so. The OEP must lay its annual statement of accounts before Parliament, including an assessment of whether it has been provided with sufficient funds to carry out its functions. Clearly, we want to get the OEP set up and we need to establish a board and a chair before it becomes operational. We will have to see. As I say, I used the figure of 60 to 120 people. It may be 100. We are not setting a distinct figure. What we want is for the job to be done properly.
Lord Teverson
My Lords, it is well known to the Minister that perhaps one of the greatest reasons for the Government taking notice of the Commission and its powers and beyond is that the Commission is able to fine Governments who do not comply as an ultimate sanction. Will the OEP have that power over the United Kingdom Government?
Lord Gardiner of Kimble
My Lords, the distinction is that under the EU arrangements the Commission may bring legal proceedings against a member state Government only. Under our domestic legal arrangements, we believe that fines would simply move money around the domestic public finance system. Indeed, fines may also shift resources away from their intended use in implementing measures to protect the environment. The key point is that if a public authority failed to comply with a court order, the OEP would be able to bring contempt of court proceedings, which could lead in turn to fines being imposed.
Common Fisheries Policy and Animals (Amendment etc.) (EU Exit) Regulations 2019
Lord Teverson Excerpts(5 years, 8 months ago)
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Lord Teverson (LD)
My Lords, I, too, thank the Minister for his explanation, although I was disappointed in that he pointed out that there will be greater opportunity for scrutiny in future, as I assure him that my colleagues on the EU Energy and Environment Sub-Committee, including the noble Duke, the Duke of Montrose, scrutinise very carefully all the Explanatory Memorandums and everything else that comes through the department as does, I am sure, my colleague in the European Parliament, Mr Chris Davies, who is chair of the Fisheries Committee there. The scrutiny might be different, but it will be, I hope, as good as what we do at the moment.
That brings me to one of the items that we looked at in our committee meeting this morning, although it might seem slightly irrelevant: the Council regulation on fish stocks in the Baltic Sea, an area of European waters that has particular issues. I was interested in a comment made by the noble Baroness, Lady Jones, on the previous SI about dates, because that Explanatory Memorandum said that the UK is leaving the EU whatever the circumstances on 31 October 2019. I am not making a point on that. My serious point is that I note from the Explanatory Memorandum that this SI is necessary partly because the date of 29 March is no longer applicable. I would like reassurance that whatever date we leave—if we leave—we will not have to go through this process again; for example, if the date moves from 31 January to, say, 14 January, because Brexit gets sorted out earlier. Is this SI now robust in respect of dates?
I am grateful to the noble Lord, Lord Hodgson. He struck a key point in relation to the office of environmental protection, which was in the draft environment Bill but was, to a degree, amended to become more robust in the Environment Bill that will now be lost with the Dissolution of Parliament. Will the Minister confirm two things? First, when that body is established, will it include the marine area? I am almost certain that it will because the Bill mentions waters and so on, but I would like to understand that more clearly. Will the responsibility of the OEP extend to the territorial waters, the EEZ line, or, indeed, to wherever British fishing vessels fish, even in international waters? More importantly—this is exactly the point made by the noble Lord, Lord Hodgson—how long are we likely to have to wait until that body is established and what will happen in the meantime? How will we make sure that the decisions made post-Brexit by Defra are enforced and that, exactly as the noble Baroness said, Defra is not just marking its own homework.
It seems to me that our marine environment is as important as our terrestrial environment. On that theme, as the Minister will know, there is an overall target for all stocks in the common fisheries policy to be sustainable in terms of MSY by 2020. That is next year, and the rest of those stocks will be agreed, with scientific advice, in December this year. One of the cod stocks in the Baltic Sea is not at a sustainable level, so this principle has already been broken. If that is true for some of our own stocks in the North Sea and the western waters, will Defra actually change the stocks post Brexit—if that happens—to a sustainable level in the waters over which we have control, thus at least maintaining the government policy, as I understand it, to retain sustainability not just within a CFP context but in our own waters?
Another area mentioned by the Minister, which is in the Explanatory Memorandum, is regional management fisheries organisations beyond territorial waters and EEZs. Through the EU, we were signatories to a number of them, and I know that we are trying to rejoin a number of them, including the Indian Ocean Tuna Commission. The most important one is the North East Atlantic Fisheries Commission, an important if imperfect conservation organisation. Have we now joined it? Are we a member of that organisation so that we can participate in its actions?
As the noble Baroness, Lady Neville-Rolfe, said, enforcement is key to this. I entirely accept that the Government wish the landing obligation to remain, so that the discard ban will continue and will be enforced post Brexit. However, and I understand the questions here, traditional control methods do not work to stop discarding. Just having a fleet of vessels that plod around inspecting other vessels does not really work in terms of the landing obligation. I would be very interested to understand the Government’s position on this and whether they have started to move on remote electronic monitoring, which is the only tool in the box that really works for this challenge.
Baroness Jones of Whitchurch (Lab)
My Lords, I thank the Minister for his introduction to this SI and for organising a helpful briefing beforehand. I also thank all noble Lords who have contributed to this discussion.
At the outset I will say something about the overall content of this SI. I find it amazing that an SI dealing primarily with amendments to the common fisheries legislation also has buried away in it amendments to the transport of animals regulations. This is particularly irritating as we dealt this afternoon with a separate SI on animal welfare; it would have made much more sense to have included these amendments in that.
It is even more concerning since the Minister of State, George Eustice, stated in the other place that the Government had no intention of consolidating these SIs into a meaningful piece of legislation, which would have made more sense for those working in the sector and abiding by the rules. So do the Minister’s civil servants consult before issuing what seem to be random pieces of legislation that do not bear any connection? Does he agree that this is not the best way to go about making legislation that could be on the statute book for some time before being superseded by new primary legislation? While we are on the subject of primary legislation, can the Minister shed some light on when the fisheries Bill is likely to see the light of day? It might address some of the issues raised this afternoon.
Lord Teverson
I have a caveat. I fully welcome the extra resources that the MMO has and the fact that the Navy is doing that. The Navy has been largely absent from monitoring recently, because it has been dealing with other border security issues. However, the difficulty is that that budget is mainly financed from the Brexit process. Many of us do not have a lot of faith given the fact that, as the Minister will know, Defra is always on the front line regarding budget cuts, and once we get through Brexit—if indeed we do— frankly, those extra budgets will disappear and we will be back to where we are, with all the enforcement challenges that we had prior to that. I am not asking the Minister for a reply but warning him, in case he stays in office.
Baroness Neville-Rolfe
I am not sure that I am allowed to comment, but I was rather reassured by the list that that my noble friend read out and the fact that the Navy will now be more involved—as indeed it used to be historically, before Defra experienced cuts. It feels as though fisheries, if we get Brexit, will become a more important national asset, which will therefore justify the expenditure. I hope that that will be respected by Ministers when they come to look at these budgets.
Peatlands: Commercial Exploitation
Lord Teverson Excerpts(5 years, 10 months ago)
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Lord Teverson
To ask Her Majesty’s Government what plans they have to end the commercial exploitation of peatlands.
The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Gardiner of Kimble) (Con)
My Lords, we have taken action to tackle domestic extraction of peat. The National Planning Policy Framework, published in 2012, ended the granting of new licences for peat extraction. We continue to focus on reducing demand for peat in horticulture in England, and on the uptake of alternatives. We are investing in research to overcome barriers to peat replacement. The forthcoming England peat strategy will set out our approach to speeding up progress.
Lord Teverson (LD)
My Lords, I welcome some progress in this area, but the Minister will know that our peatlands hold the equivalent, or a carbon sink, of something like 20 years of industrial emissions. Although I welcome things such as the peat restoration programme, surely it is better that they are not destroyed in the first place than that they need to be reconstituted? The voluntary process for reducing the commercial use of peat is not meeting its target, so when are we going to have mandatory targets that end the use of peat for commercial reasons?
Lord Gardiner of Kimble
My Lords, I sympathise with all that the noble Lord has said. That is why we are working on recovery plans. Amateur gardeners account for two-thirds of the peat being used. We have to reduce our use of peat and go for peat-free products. I read of one that incorporates wool and bracken, for instance. We are working with industry; I am very pleased that Kingfisher, one of the big retailers, is moving towards peat-free compost. That is how we must all proceed in reducing the use of peat and restoring what we have. It is vital to our environment.
Brexit: Plant and Animal Biosecurity
Lord Teverson Excerpts(6 years, 2 months ago)
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Lord Teverson
To move that this House takes note of the Report from the European Union Committee Brexit: plant and animal biosecurity (21st Report, HL Paper 191).
Lord Teverson (LD)
My Lords, it is very appropriate that this debate should follow one on defence and security because it has exactly the same theme, except that the bugs are not cyber bugs but actual ones, since those still exist. It is also appropriate because I understand that this week is Invasive Species Week; the first such week took place in 2015. I know that the Minister, who is very involved in this sector, has also been involved in a number of other initiatives. The other reason this debate comes at exactly the right time is the publication of the report by the intergovernmental committee on biodiversity and ecosystems, which laid out how the numbers of species within the ecology across the globe were threatened. One thing it highlighted, which was perhaps not publicised quite so strongly in the press, was that alien and invasive species are a severe threat to biodiversity across the globe—including Europe, obviously, and our own country. That is why this subject is so important.
Also, to reflect some of the comments in the previous debate, if Brexit happens, although we will be leaving the European Union, we will not be leaving the European biosphere. We share its marine and aerial environments, and we are only 22 miles away from its terrestrial environment. The question to which my committee particularly wanted to find an answer was whether, post Brexit, our ecology will be as protected on invasive species and biosecurity as it was during our membership of the European Union. Can we even improve on the situation that we have at the moment?
The threat is very real. I am sure that all of us will remember the foot and mouth outbreak back in the early 2000s. That cost the country some £8 billion, but in some ways that was nothing compared to the effect it had on farming communities and rural communities throughout the kingdom. We know that we now have ash dieback disease; a recent report from Oxford University suggests that the total cost of that disease will be some £15 billion over 100 years, half of that—£7.5 billion—coming over the next 10 years. These threats are real and they are about real organisms. There is the Asian hornet and the American skunk cabbage, which I am sure the Minister will talk to us more about later, although I had never heard of it before. It is also about oak disease and a number of other threats to our ecology at this moment.
We are not only a part of the European biosphere but absolutely integrated into the systems of the European Union in this area of national security and defence. Let me remind Members of four of those systems: the animal disease notification system; the alien species notification system; the rapid alert system for food and feed; and, lastly, the plant health interception system. While I very much welcome the Government’s response—they wanted to remain a part of those systems—one of my first questions to the Minister is: has that bid progressed in any way? Are we at all confident that we will be able to participate in those systems, and if there is no deal in place do we have alternative systems? Most importantly, I am aware that, through those systems and that shared intelligence among the communities of scientists and researchers in those areas, we have advance warning of these organisms approaching us across the continent. We are able to prepare and plan for those potential invasions. How will we be able to continue having those connections and those sorts of systems once we are outside the European Union?
On day-to-day issues, the IT system called TRACES is absolutely fundamental in tracking the progress of trade between European Union member states of animal and plant products. We have had assurances from the Government that we now have an alternative to that system. Has it been truly tested yet? Will it be able to integrate with the TRACES system, allowing us at least to approach on the phytosanitary side the frictionless trade that will be so important between us and Europe on food and animal products in future? Those are clearly key issues.
Other issues that came out of the report are, first, around trade. I have mentioned EU-UK trade, which is very important for the farming industry in this country, but will we be able to have the systems that we will need to cope in the future? It particularly concerns me that the Government are clear in making the point that from day one, when we leave the Union or end the transition period, we will have exactly the same list of potential threats to biosecurity. We will have the same lists as parts of those systems but, clearly, they are likely to diverge quite significantly over the first one to three years. How will we deal with frictionless trade at the point when we have that divergence on scientific advice? Will we instead ensure alignment well into the future?
The greatest concern is about new trade deals. We often talk about America and the great leverage it would have on a trade deal with us. On the details of that trade deal, we are far from confident that environmental and biosecurity issues will be at the top of that list. Will they be a sine qua non, without which we will not do that deal? Can the Minister assure us that that is still the case? We know that even with China, there are huge issues with food quality. A lot of the problems with invasive issues in foodstuffs have been to do with Chinese products, as is a lot of the protection. Again, there is huge leverage there so, as a nation, will we be so concerned about having those trade deals post Brexit that we will not pay sufficient attention to those areas?
I come on to resources. We know that Defra has in the past been under huge constraints and reductions in funding. We know that large resources have been taken in there for Brexit planning. Will they remain there to ensure our biosecurity well into the future, rather than just on Brexit day one?
I come back to a theme that my committee has often talked about and taken evidence on: the veterinary profession. On the front line of industrial veterinary work, something like 95% of staff are EU citizens. The committee went to the London Gateway port two weeks ago, where we met the veterinary team on the front line. Of that team of eight, the lead and six others were Spanish, and one was Italian. There is a real issue about keeping those people here. Most of them will earn less than £30,000 and, under the present government proposals, they will not be able to enter the system.
Our research laboratories are the pride of the country; we are the European Union experts on foot and mouth disease, bluetongue disease and many others. We have access to the rest of that network of research laboratories, with all their scientific evidence and expertise. In addition, there is a collegiate feeling among the scientists and researchers in that community. How will we replace the research laboratories that concentrate elsewhere in the EU on other diseases and threats that do not exist here?
On the island of Ireland, the issue is different from the normal one about customs and borders, as bugs know no borders. Can we keep the island of Ireland as a single biological territory in terms of rules, regulations and biodefence? Will that be possible?
I have laid down a long list of challenges. However, we recognise that Brexit will give the United Kingdom the ability to make its own rules and regulations about biosecurity. Witnesses have looked at the very strong rules that New Zealand and Australia have to protect their bio-environment. Does the Minister see what areas of greater protection we might have, taking into consideration that those southern ocean territories are much more isolated from other territories than we are from Europe?
This is sometimes seen as rather a niche subject, yet it is a key part of the defence and security of our nation. There is already a threat and it is costing us £1.7 billion annually to make this defence effective. We are looking to the Government to assure us that once we leave Europe—if we leave Europe—we will have the same defence that we have now.
Lord Teverson
My Lords, I congratulate the Minister on pronouncing “epidemiological” correctly. I was trying to avoid it and find an alternative all the way through my speech. The committee and I absolutely recognise his dedication to this area. We welcome his taking the responsibility so seriously and the way he has responded to the debate. We look forward to him writing to us as well.
It is the end of the day, so I thank all those who have contributed, including committee members. It is also great to see some recent former members, particularly the noble Lord, Lord Trees. I thank him for all his excellent input on the veterinary side and broader areas during his membership of the committee. I also thank the Deputy Speaker, the noble Viscount, Lord Ullswater, who has presided over the debate and was an important member of the committee until recently. I also thank the noble Lord, Lord Browne, and the noble Earl, Lord—
Noble Lords
Lord Teverson
I know the noble Earl so well by his forename that I sometimes forget his title. He regularly contributes to these events. As others have, I thank Alexandra McMillan and Jennifer Mills, the clerking team for this committee. They have been absolutely excellent.
I sum up by saying that I welcome everybody’s concentration in bringing this matter to the fore, but it will get more difficult to contain, not just, as the noble Lord, Lord Trees, said, because of increasing global trade, but because of climate change and the proliferation of personal travel. Yet it is so important that it is contained. I am positive about the way the debate is being taken seriously and has been responded to by the Government. I thank the Minister for that. I beg to move.
Trade in Animals and Related Products (Amendment) (Northern Ireland) (EU Exit) Regulations 2019
Lord Teverson Excerpts(6 years, 2 months ago)
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Baroness Jones of Whitchurch (Lab)
My Lords, I thank the Minister for his introduction to the SIs this afternoon and for arranging a useful briefing for us beforehand. I particularly thank our Northern Ireland departmental colleagues, who joined us online and were particularly candid about some of the challenges facing cross-border trade, with which they are grappling at the current time. Their briefing and insight was extremely helpful. It is clear that close co-operation with the south is essential although, as I understand from an earlier letter from the Minister, it is not possible to have specific bilateral talks on trade between the UK and EU member states, such as the Irish Republic, in advance of us leaving.
Whatever happens as a result of the Brexit negotiations, it is fairly obvious that trade across the Irish border will become more bureaucratic and less free-flowing in future. There will, for example, be a need for phytosanitary certificates for plants crossing the border. There will be a new need for importers to be registered and new offences arising from the new requirements to take goods to an approved place of inspection. At a minimum level, this will require a huge communication initiative to ensure that farmers, food manufacturers and retailers are made aware of the cross-border import issues. Can the Minister assure us that all of those affected by these changes have been made aware of these new rules?
On the trade in animals SI, the Minister will know that when this was considered by the Secondary Legislation Scrutiny Committee, it expressed surprise that the regulations had been delayed after being cleared for consideration by the House. The reason given was that the Department for Agriculture, Environment and Rural Affairs chose to delay it pending negotiations on third-country status. As a result, we are now dealing with it under the “made affirmative” process. I shall not make heavy weather of this, but it seems the wrong way round to proceed. Surely, the UK Parliament should have considered the content before the issue was included in the package for conclusion with the EU on those third-country negotiations. Having said that, we accept that the SI is largely technical in nature. It is clearly important that we can continue to import the goods covered by it post Brexit with the minimum of disruption at the Irish border, and it would be helpful if the Minister could reiterate that there will indeed be no additional checks at the border—although I think he has made that point clear.
On the plant health SI, these regulations are very similar to those which we have already debated covering England. Again, the presence of the land border between the north and the Republic brings these issues into starker focus. As the Minister explained, goods entering from the EU that currently require a plant passport under EU rules will now require a phytosanitary certificate, which can be checked digitally rather than at the border.
However, there seems to be a real challenge in managing goods coming from a third country. In our earlier briefing with Northern Ireland officials, it was initially suggested that goods from third countries would arrive via Belfast port or Belfast airport and could be checked at those entry points—the noble Baroness, Lady Parminter, raised this issue, although I have put a slightly different emphasis on it so clarification would be helpful. In our earlier discussions, it became clear that the other obvious route for third-country goods to arrive was via Dublin airport; there was an expectation that they would then be driven across the border. If that were the case, surely border checks would be necessary. Perhaps the Minister can clarify how goods will be handled when they arrive at Dublin airport en route to Northern Ireland. If I am right in what I am saying, is there a danger that, once this route becomes known, many more importers might opt for it because no checks on the border would allow importers to avoid additional checks? Either there will be checks on the border, which everybody says is completely undesirable, or goods coming via Dublin airport will face no checks, in which case there is a danger of goods being imported illegally. I would be grateful if the Minister could explain how he thinks those journeys will take place and what checks will take place.
Can the Minister also explain more about the new offences created in this SI, which seem to include unlimited fines for failing to take goods to an approved place of inspection? Is that indeed the case? Is there ever a limit to an unlimited fine? How will that be calculated? Too prohibitive a fine could mark the end of business for some importers. Will importers be given adequate notice of this new provision? Does the Minister feel that it is proportionate, given the significant changes in import arrangements with which businesses will be grappling? Will these new fines be phased in, or on what date are they due to be applied? It would be helpful for importers to know that. Has any estimate been made of how many businesses will be affected by this new measure?
As the Minister knows, the animal health, seed potatoes and food SI was debated in the Commons on 23 April. During that debate, my noble friend Sandy Martin MP—the Defra shadow spokesperson—pointed out what he thought were other technical and grammatical errors in the text of the SI. At the time, the Minister gave an assurance that he would look at these possible errors and correct them if necessary. Were his concerns checked and corrected before the SI came before us?
When we met with officials, it also came to light that our exit from the EU would have a major impact on seed potato growers in Northern Ireland, as 50% of their seed potatoes are exported to the Republic and the EU bans the import of seed potatoes from third countries. What steps are being taken to mitigate the impact of this loss of trade on Northern Ireland businesses?
These issues aside, we accept that the SI is broadly technical in nature. We are therefore happy to approve it in all other respects.
Finally, it continues to be a considerable political failure that these devolved issues do not have a Northern Ireland Assembly to scrutinise them—a point made by noble Lords on the Cross Benches. I very much hope that this will be rectified soon.
Lord Teverson (LD)
My Lords, I have been very impressed by the debate. I remind Members of the House that there will be a debate on Wednesday afternoon on Brexit and biosecurity, which goes through this whole issue and applies much more broadly. The speakers’ list is still open. I am sure that the Minister and I would very much appreciate further participation.
Lord Gardiner of Kimble
I entirely agree with the noble Lord, Lord Teverson. I am very much looking forward to the debate; I rather think I am looking at a number of the participants already. I am most grateful to the noble Lords, Lord Browne of Belmont and Lord McCrea, for participating and emphasising that we wish this matter were being dealt with elsewhere. That should be the right way forward—it is the way mature politics needs to proceed—so I very much endorse what the noble Lord, Lord Browne of Belmont, and the noble Baroness, Lady Jones of Whitchurch, have said. In my view, the responsibility is really on everyone in the public service to ensure that these talks are productive and successful. Alas, as we all know, we are talking about people’s lives and communities. We want a better time for Northern Ireland—what a great place it is—so, although I should not be doing this, it is a privilege and we are seeking to do the right thing for Northern Ireland.
My noble friend Lady McIntosh hit on a vein: I think she and many of your Lordships know that I am rather keen on the horse. Obviously, the Government recognise the value of the equine sector to the UK economy. I also know—declaring an interest in that my wife’s family breed horses in County Tipperary—that it is of great importance to the rural economy of Northern Ireland and the Republic. We therefore need to do all we can to ensure the movement of horses between the United Kingdom and Ireland—and indeed France; across the piece—and to ensure that in some way we can continue what was the tripartite agreement. We need to work on some arrangement to ensure the free movement of horses, particularly bearing in mind biosecurity. We do not want any future arrangements to jeopardise something that is absolutely crucial, particularly in that thoroughbred end—racing—where pest diseases, viruses, et cetera, are absolutely kept to a minimum by high biosecurity.
How to find an arrangement to best succeed the tripartite agreement is something for negotiations. We all recognise—the UK Government and, I think, the Irish and French racing interests as well—that what we had was of value, and we need to see how we can work. This is why the British Thoroughbred Industries Brexit Steering Group is collaborating with Defra officials. We absolutely need to see what we can do for a very important part of the rural economies of the Republic and our country.
The noble Baroness, Lady Parminter, rightly raised a number of points about the resource implications and so forth. My understanding of the sort of numbers under a new regime is that the five inspectors would need to be increased to 11—a doubling. All consignments of regulated—that is, high-risk—plants and plant products currently imported from the EU under the existing EU passport system would require pre-notification, to be accompanied by a phytosanitary certificate and subject to remote documentary checks in the event of exit without an agreement. This plays into a point that I emphasised and that the noble Baroness, Lady Jones of Whitchurch, acknowledged: this is precisely because neither we in this country nor the Republic want to have checks at the border. We think there are ways in which these matters can be checked. As we said in the previous debate, we should not be nervous of thinking about the best ways of heightening biosecurity. Making this the responsibility of a country’s plant health authority has that strength and imprimatur. If we import something from Italy, say, it will be the Italian plant health authority that has to signify the phytosanitary certificate. We should not be fearful of some elements of this new arrangement because they are about what we increasingly need to look at.
Plastics: Reduction in Use
Lord Teverson Excerpts(6 years, 2 months ago)
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Lord Gardiner of Kimble
My Lords, it is absolutely essential for us all that, in seeking to do the right thing, we are in a position to do so. In response to the noble Lord, Lord Dubs, Morrisons are replacing plastic bags for loose fruit and vegetables with paper ones. That sort of thing is happening up and down the country with retailers that understand their responsibility to ensure that we have a better planet for the next generations.
Lord Teverson (LD)
My Lords, one of the ways that we will reduce the use of plastic is making sure that we dispose of it responsibility, not at the cost of the environment. One way of doing that is banning exports of our waste and clearing up our own mess. What target do the Government have for banning the export of low-grade recyclate?
Lord Gardiner of Kimble
My Lords, the noble Lord is absolutely right that we must recycle more here. We must use less, so there will be less recycling. We certainly need to do more at home, so we need to work with industry to have suitable plants to take much more of the UK’s plastic waste. Other countries that take waste are also important. We are a party to the Basel convention and it is essential that we work together to ensure that we are absolutely not sending plastic, or other waste, to countries that cannot cope with it and therefore pollute the environment.
Brexit: Food Prices and Availability (EUC Report)
Lord Teverson Excerpts(6 years, 2 months ago)
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Lord Teverson
That this House takes note of the Report from the European Union Committee Brexit: food prices and availability (14th Report, HL Paper 129).
Lord Teverson (LD)
My Lords, it is a great pleasure to introduce this report, which, like the previous one that was debated this afternoon, is a year old. For that reason, I am sure that we will bring the debate up to date. On the other hand, in a key way nothing has happened: we are still in the European Union, and the concerns, fears, expectations and hopes of this report when it was written a year ago are still to be proven or unproven. I hope that today’s debate may still contribute something, for when or if Britain leaves the European Union, on this important area of food. I emphasise, though, once again, like all my fellow EU Sub-Committee chairs, that the committee itself is completely neutral on Brexit or no Brexit: what we are attempting to do through these reports is to explore the issues in depth and to call Ministers and the Government to account, as we will today.
The report we are debating today is particularly important because food is not an issue that we necessarily debate in this House very regularly. Although food and Brexit, and the issues that are in the report, are very important, we Members of the House of Lords are able to go downstairs and have a two-course meal for probably a fiver. It does us good, it is very nutritious and there is probably no one around the Chamber, I suspect, who is challenged in terms of diet, consumption, being able to eat or food poverty. Yet today a report came out saying that we now have some 1,800 food banks in this country and that some 14 million meals over the last year were provided to those in fuel poverty—sorry, food poverty; I was speaking in the wrong debate there. What I want to emphasise during this debate is that while we as—dare I say?—typical Waitrose customers may not be too concerned about this area, it is a real challenge to a large number of families in this country. Food prices and food security really matter.
Let me give a little background. Why is food particularly important and why is it different in terms of the Brexit debate? First, unlike services and unlike many manufactures, food is perishable. If we do not deliver it, if we do not get it through borders, if we do not manage to get it through phytosanitary controls, the product is wasted. It is an important part of the food supply chain that is very time-determinate. The other area is that food is particularly important in terms of public health and biosecurity. Therefore we cannot just throw open our trade gates and ports, because there are serious issues around public health—as we saw with the tragedy of foot and mouth disease some decades ago—and all the challenges we have with biosecurity.
We import some 50% of our food, and 30% of all our food comes from other European Union countries. You have to add on to that, in terms of this debate, another estimated 11% that comes through the 50 trade deals and agreements that the EU has with some 56— sometimes reported as 60—other states. So altogether, 40% to 41% of the food consumed in this country comes through EU or EU-related treaties. For some 30 years our self-sufficiency—an area which sometimes receives particular political attention—has declined. That is not necessarily a very easy answer.
We have to remember that, unlike manufactures—certainly unlike services—the agricultural sector is still least affected by reductions in trade tariffs and the costs of trade. Barriers to agricultural produce, whether processed or raw, are still relatively high in world trade. As we know, the EU tariffs that we reflect at the moment in our joint customs regime are on average something like 22% on the cost of food coming in from non-EU areas—although developing countries of course have preferential terms in that area. It is worth saying that one of the biggest determinants of the change of food prices is the exchange rate. It was certainly true for the Minister when we held the inquiry that that was far more important than the Brexit issue. We must remember that the two are intricately related; a bad or difficult Brexit probably means a major impact on exchange rates as well.
I will go through a couple of scenarios that the committee considered as to what might happen with food prices. One is very optimistic: once we are a free trading nation, we will have complete control over our tariffs and could decide to completely reduce them to zero and open our agricultural markets to the rest of the world. In that scenario, food prices should come down quite substantially. That would of course have a major effect on the UK agricultural industry, but it might be seen by a Government at the time as a price worth paying. But we must remember that, under World Trade Organization rules and most favoured nation rules, if we reduce tariffs to zero for one area and do not have trade agreements with other nations, they all have to be reflected in precisely the same way. That is particularly concerning in terms of a no-deal exit from the European Union. We could reduce prices in that sort of situation, because there would probably be a glut of UK products that could no longer be exported to the EU because of its external tariff. So there is optimism on prices.
Alternatively, in a no-deal Brexit we will almost certainly have, not the frictionless trade we all want for the future but one that is very much the opposite—high paperwork, full controls on phytosanitary, documentation and new IT systems. In terms of the export and import of goods, it is estimated by the port of Dover that the difference could be from two minutes, as at the moment, for goods passing through on ro-ro to as much as 45 minutes under full documentation. Efficiency will go down, and that cost will ultimately have to be borne by consumers. A completely open and free trading nation could have world markets and increased food security, but, again, our domestic self-sufficiency will almost certainly go down. Again, we have a whole area of technical regulations and red tape barriers. As we now know, even more than a year ago, we have a situation where other free trade deals are probably far more difficult to implement than we had thought at the time.
I will look briefly at a no-deal scenario. Exchange rates will probably go adversely, which will cause prices to go up. There will be border checks and a tariff regime—although, as the Government since our report have published what those tariffs might be, it is interesting to see that there would still be substantial tariffs in a number of areas such as pigmeat, sheepmeat and similar products, and not so much in manufactures.
In the time that I have left, I will concentrate on labour and food security strategy. One of the consistent themes in the reports of my sub-committee is the real challenge of labour post Brexit, with or without a deal. This was mentioned in previous debates. Certainly, some 30% of the individuals engaged in the food processing industry, which is the largest manufacturing industry in this country, are non-UK EU nationals. In Cornwall, where I live, that proportion is significantly greater. Some 80% of the workers in the horticultural industry are seasonal, and 96% of them are from other EU countries. So there really is a challenge in delivering UK food in terms of both the supply chain and actual production and harvesting. We also looked a number of times at vets, who are overwhelmingly non-British EU citizens. There, too, there is a huge challenge.
I will return to the other development since this report was produced a year ago—immigration policy, and the potential £30,000 level of barrier to entry. Clearly these sectors will be hugely challenged by that. A year ago, the Minister was even against a seasonal workers scheme. I believe that now there is a change there, and I would be interested to hear from the Minister whether it is still the intention to change that.
Members of the committee felt very strongly that overall there was a need for a food security strategy. I would like to think that through listening to our report the Government have now undertaken to publish one post Brexit, but I would be interested to hear from the Minister where that is now.
I have one or two questions from the committee. First, we have already seen within the WTO the conflict around tariff rate quotas and splitting those between ourselves and the European Union, and the objections, particularly from southern hemisphere producers. I would be interested to hear where we are on that. On IT systems, the so-called CHIEF system had huge capacity issues in terms of future customs procedures, so can the Minister say where we are in terms of replacing the system or at least enabling it to cope with the huge amount of increased paperwork? On tariffs, I found it difficult to understand the Government’s proposal in terms of the Northern Ireland/Republic of Ireland border, where they said that there should be no tariffs. I do not understand how that cannot cause both large distortions in trade and indeed criminality —so I would like to understand that. It was almost a surprise to the committee that the former Minister, Sir George Eustice, said that to help trade through ports there would be no phytosanitary checks. If that is still the case, how long would that last for, and when will that national food strategy come out?
One of the things that came out strongly from our report is that the Minister at the time seemed a lot less concerned about food and its security and pricing than the committee and certainly our witnesses were. It is quite obvious that the frictionless trade in food and food products that all of us, including the Government, want, is impossible in the context of the red lines that the Government still have. I do not understand how those can be reconciled, and nor does the committee. Food will be the first casualty of Brexit, particularly if it is a no-deal Brexit. In addition, we have food poverty and real wages have not gone up in the UK since before the recession in 2008. For the lowest decile of the population, food now accounts for 33% of household expenditure, whereas for the top decile—which I suspect a number of us are in, although perhaps not myself—it is only 10%. That is a real challenge. I look forward to the Government taking this issue seriously for the future and to the answers that will be given by the Minister, as well as to the noble Earl’s maiden speech. I beg to move.
Lord Teverson
My Lords, I also congratulate the noble Earl, Lord Devon, on his speech. I give him one bit of advice: when you sum up the last debate on a Thursday in this House, you should be very brief—and I will be.
I thank all noble Lords for their varied contributions. I am now tempted to get into a debate about climate change, but we will not do that. I am pleased—I have every faith in what the Minister says about this—that the Government have now perhaps changed their message from the rather casual view on food prices and biosecurity demonstrated to the committee and mentioned by the noble Lord, Lord Rooker. That has also happened on the Labour side, with all the various difficulties there. I hope those will change.
I am a proud resident of Cornwall. I represented it in the European Parliament, together with Plymouth. However, my maternal family is from Devon. When I have a cream tea in my home near Tregony in the centre of Cornwall, I usually put the cream on the bottom and the jam on the top, but could the House keep that within these four walls?