Agriculture and Fisheries Council
Robert Goodwill Excerpts(6 years, 10 months ago)
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The Minister for Agriculture, Fisheries and Food (Mr Robert Goodwill)
I represented the UK at the Agriculture and Fisheries Council in Luxembourg on 15 April.
The main item on the agenda was the reform of the common agricultural policy (CAP) post-2020, with a focus on the proposed new green architecture. Ministers highlighted their willingness to commit to higher levels of overall ambition such as spending 30% of pillar 2 funding on climate change actions, and endorsed the new policy design. However, some member states also pressed for large chunks of the Commission’s proposals to be optional, including some of the Commission’s eco-schemes.
This was followed by a ministerial lunch debate which focused on the impact of large carnivores and other species on agriculture. The Commission’s position that 100 % state aid was permissible to compensate for attacks on livestock did not satisfy several member states, who wanted greater latitude for farmers to shoot wolves and other predators.
Council reconvened with an exchange of views on the task force in rural Africa, with the final report proposing a new alliance between the EU and Africa. I intervened on the item, highlighting the importance of developing countries in the global food supply and giving examples from UK projects that increase smallholder inclusion in the value chain and empower women economically.
Commissioner Hogan also provided an update on the market situation, describing a stable and positive picture overall with concerns in sugar, apples and pears, and olive oil.
A number of other items were discussed under “any other business”:
The Netherlands informed Council about EU action against deforestation and forest degradation. I intervened, stressing our support for the proposal and encouraged the Commission to prepare an ambitious communication to step up action against deforestation.
Slovakia presented its joint declaration with the Czech Republic and Poland on the renewable energy directive post-2020.
The presidency informed the Council of the outcome of the research and agriculture conference held in Bucharest on 5 April.
[HCWS1534]
Contingent Liability: Centre for Environment, Fisheries and Aquaculture Science
Robert Goodwill Excerpts(6 years, 11 months ago)
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The Minister for Agriculture, Fisheries and Food (Mr Robert Goodwill)
It is normal practice when a Government Department proposes to undertake a contingent liability in excess of £300,000 and outside the normal course of business, for the Minister concerned to lay a departmental Minute before Parliament giving particulars of the liability created and explaining the circumstances. The Department should refrain from incurring the liability until 14 parliamentary sitting days after the issue of the statement.
This Minute relates to the Centre for Environment, Fisheries and Aquaculture Science (CEFAS), an Executive agency of DEFRA, entering into a commercial arrangement with the Kuwait environment public authority (an authority of the Government of Kuwait) who have asked CEFAS to contract with them to provide a marine environment monitoring information system for Kuwait. This is proposed to be a four-year contract of marine science services for which the Kuwaitis will cover all CEFAS’s costs of around £40 million.
The Kuwait Government wish to enhance their national environmental management capability to world leading standards and are pursuing a strategy of working with the best international government bodies from strategic partner countries. This Kuwaiti Government objective is being delivered under their Environment Monitoring Information System Kuwait (eMISK) programme which spans marine, waste, terrestrial, air and subsurface environments. The Kuwait environment public authority have asked CEFAS to tender for the marine programme and this is supported by both countries at ministerial level, as set out in the inter-government declarations of the joint steering group.
The benefits of this work to both Governments are the significant contributions it will make to the long-term health of the Gulf marine environment. It will also engage the next generation of Kuwaiti scientists in bilateral co-operation with the UK, maintain and develop CEFAS’s international capability, and position both Kuwait and the UK in a leading position in this area of science.
The contractual arrangements between the two parties follow standard Kuwaiti national commercial terms and conditions and include two contingent liabilities relating to a performance bond and liquidated damages claims. These liabilities are limited to a maximum of 20% of the £40 million contract value. Professional indemnity insurance will be purchased, using contract funds, to protect the Department against these risks leaving a residual excess value of no more than £250,000. Only uninsurable risks remain which would be due to late delivery or third-party claims.
CEFAS and DEFRA have considered the risks of this indemnity and they believe the likelihood of such indemnities being called upon is very low. Agency or departmental budgets are expected to fund any liability call. If such budgets are insufficient then any payment would be sought through the normal supply procedure.
The Treasury has approved the proposal in principle.
If, during the period of 14 parliamentary sitting days, beginning on the date on which this Minute was laid before Parliament, a Member signifies an objection by giving notice of a parliamentary question or by otherwise raising the matter in Parliament, final approval to proceed with incurring the liability will be withheld pending an examination of the objection.
[HCWS1517]
Exiting the European Union (Agriculture)
Robert Goodwill Excerpts(6 years, 11 months ago)
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The Minister for Agriculture, Fisheries and Food (Mr Robert Goodwill)
I beg to move,
That the draft Animal Health, Seed Potatoes and Food (Amendment) (Northern Ireland) (EU Exit) Regulations 2019, which were laid before this House on 3 April, be approved.
Let me first echo the points that were made during the last debate, not least by the right hon. Member for Lagan Valley (Sir Jeffrey M. Donaldson). I too would much prefer decisions of this type to be made by a functioning democratic Executive in Stormont.
This is one of a number of affirmative procedure statutory instruments to be considered as the United Kingdom leaves the European Union. It will ensure that legislation concerning the control of salmonella in the poultry sector, beef and veal labelling, and seed potato inspections and marketing will continue to function in Northern Ireland after exit.
Ian Paisley (North Antrim) (DUP)
Will the legislation apply only to Northern Ireland; is this a separate order for us?
Mr Goodwill
I entirely take the hon. Gentleman’s point, but this applies solely to Northern Ireland. Obviously, it applies under different legislation, but the instrument applies specifically to Northern Ireland in the event of a no-deal exit from the European Union.
David Simpson (Upper Bann) (DUP)
The subject of seed potatoes has been raised with businesses in my constituency, which have been told that if there is no deal they cannot export them to the Republic of Ireland.
Mr Goodwill
That is indeed the case. Seed potato production in Northern Ireland is less important than it used to be, but 318 hectares of certified seed are still grown there by about 50 growers. Of the 4,000 tonnes marketed, 2,000 were marketed in the Republic, 1,000 were marketed in Northern Ireland, and 1,000 were exported to countries including Egypt, Morocco and the Canary islands. In the event of a no-deal scenario, 2,000 tonnes will be lost. The main varieties grown for the southern market, including Kerr’s Pink, Maris Piper and British Queen, are not generally in demand in the UK market, and in the event of no deal an adjustment will therefore be necessary. Growers may wish to switch to new varieties such as Miranda and Opal.
Jim Shannon (Strangford) (DUP)
Has the Minister had an opportunity to engage in any discussions with the Ulster Farmers Union or the Northern Ireland Agricultural Producers Association? It is important for consultation to be wide enough to involve those organisations, which represent the farming community throughout Northern Ireland.
Mr Goodwill
There was no need for formal consultation, because this is a “no change” piece of legislation. It allows the current situation to continue in the event of a no-deal Brexit. However, conversations took place with many stakeholders, including representatives of the Ulster Farmers Union, who were content that the regulations maintained the status quo.
Ian Paisley
Did the Minister speak to the companies that process potatoes in Northern Ireland? The two main processors are Glens of Antrim Potatoes Ltd, which is in my constituency, and Wilson’s Country Ltd. It is essential for them to know that this is going to happen, and that their interests have been taken into consideration.
Mr Goodwill
The hon. Gentleman is right: the potato processing sector is very important. Seed potato production in Northern Ireland is worth about £2 million a year. Ware potatoes are not grown solely for ware, but are also a by-product of seed potato production. Potatoes that are too big to use for seed purposes go into the ware market, which is worth £20 million, but the processing will value-add £200 million. In Scarborough, in my constituency, McCain Foods processes potatoes and slices 1,000 tonnes per day. The processing sector is vital, not least because of the employment that it provides not just for UK citizens but for EU citizens who come here to work in the sector.
Ian Paisley
Does the Minister realise that the scale of potato production on the British mainland is so much more vast than it is in Northern Ireland? In fact, one processing line in England could probably take over the entire capacity of the Northern Irish processers. They have to be protected; otherwise, we will see our potato industry in Northern Ireland diminished.
Mr Goodwill
The hon. Gentleman makes another very valid point. That is why it is so important that we get this piece of legislation through to enable the current situation to continue.
Northern Ireland people are keen to support the crisps produced locally in Northern Ireland. If I may, I will also just touch on Comber new potatoes. They are renowned throughout Northern Ireland, which grows the variety Maris Piper in the main. They are a protected designation of potato, and I gather that they are grown in the constituency of the hon. Member for Strangford (Jim Shannon). That is another important part of the Northern Ireland potato market.
David Simpson
The Minister talks about protected species, and my hon. Friend the Member for Strangford (Jim Shannon) is also a protected species. However, on seed potato, my hon. Friend the Member for North Antrim (Ian Paisley) mentioned Wilson’s Country in my constituency. It will lose £60,000 per week if it cannot export seed potatoes to the Republic of Ireland.
Mr Goodwill
That explains why it is so important that we get a deal across the line. Indeed, having had at least three or four opportunities to vote for that deal, we certainly need to see an orderly way forward.
Let me just comment on the point about the hon. Member for Strangford (Jim Shannon) needing some sort of protection. I do not think he needs any protection at all. My experience of him in this Chamber is that he can very much stand up for himself and indeed for his constituents, who are involved in not only the agricultural industry but the fishing industry in a very important way.
Jim Shannon
Obviously, in my previous job in the Northern Ireland Assembly, one of the things we tried to do was to ensure that the EU had a protected position for the Comber potato. It is renowned not just across the whole of Northern Ireland and the Republic of Ireland, but across the UK mainland as well. Other Members here may say that their potatoes are good; I can only say that ours are the best.
Mr Goodwill
Who could possibly argue with that? I have to say, however, that the new potatoes from Jersey and Pembrokeshire do hit the market slightly sooner than the Comber potatoes. However, the protection of particular locally grown produce is very important. Indeed, we have Lough Neagh eels, which are protected, and Armagh Bramley apples, which also have a great following, not only across the water in Northern Ireland, but here on the mainland too.
Dr Andrew Murrison (South West Wiltshire) (Con)
Does my right hon. Friend agree that the importance of seed potatoes in respect of Northern Ireland and Brexit is because of the possibility of no deal? In that case, growers in Northern Ireland, whose seed potatoes are world renowned, not least because of their disease resistance, will have to change the kind of seed potatoes they produce—he touched on this in his remarks—if they are to export to markets outwith the European Union. That is because what is good for the European Union is not necessarily going to be appropriate for markets in, for example, north Africa. Despite the two years cited in the regulations, it is absolutely imperative that we get this measure on the statute book. If we do not, it is going to be very important for growers in Northern Ireland to be able to diversify in the way I have just described so that they can address markets outside the European Union, which presents a huge opportunity for them.
Mr Goodwill
My hon. Friend, who chairs the Northern Ireland Affairs Committee, is absolutely right as regards the importance of getting this piece of legislation through and on the statute book. Indeed, the quality of seed potatoes produced not only in Northern Ireland but in Scotland and on the higher ground in England is world renowned. Virus diseases can be controlled using propagation methods and the strictures on growing potatoes for seed. That means that we have a world-class standing in terms of the quality of seed that we can produce, with very low levels of the virus diseases that can affect potatoes. That means that we have to continue to keep those standards up.
Let me turn to the other measures in this statutory instrument. The Control of Salmonella in Poultry Scheme Order (Northern Ireland) 2008, the Control of Salmonella in Broiler Flocks Scheme Order (Northern Ireland) 2009, the Control of Salmonella in Turkey Flocks Scheme Order (Northern Ireland) Order 2010, the Beef and Veal Labelling Regulations (Northern Ireland) 2010 and the Seed Potatoes Regulations (Northern Ireland) 2016 are the measures being amended under this instrument.
These regulations make technical, legal amendments to maintain the effectiveness and continuity of UK legislation that would otherwise be left partially inoperable. Those adjustments represent no changes of policy; nor will they have any impact on businesses or the public. The sifting Committees considered this draft legislation on 21 February 2019. The Secondary Legislation Scrutiny Committee recommended that this instrument be debated in Parliament as it contained proposed amendments to the Plant Health (Amendment) (Northern Ireland) (EU Exit) Regulations 2019, which was in draft at the time. However, this element was laid before Parliament on 5 April 2019 and has been approved by the House.
Due to the decision of the Secondary Legislation Scrutiny Committee, parts 5 and 6 of the draft regulations have been omitted and included in the Plant Health (Amendment) (Northern Ireland) (EU Exit) Regulations 2019, and the draft regulation has been renamed the Animal Health, Seed Potatoes and Food (Amendment) (Northern Ireland) (EU Exit) Regulations 2019. So all the contentious or controversial aspects have already been removed, leaving this important but rather hollowed-out measure, which lacks the points that were of interest when it was referred. The draft instrument is being introduced under the correcting powers in sections 8(1) and 14(1) of paragraph 1 of schedule 4 and paragraph 21 of schedule 7 to the European Union (Withdrawal) Act 2018. Principally, it makes amendments to address technical operability issues as a consequence of EU exit.
This instrument applies to the fields of animal health, the marketing of seed potatoes and the labelling of beef and veal, which are devolved matters for Northern Ireland. The Scottish Government and the Department for Environment, Food and Rural Affairs are making similar changes by means of their own secondary legislation within their areas of legislative competence. I know that Opposition Members will mention consultations—indeed, they were mentioned earlier by Democratic Unionist party colleagues—so I will address this question for them. Although there was no statutory requirement to consult publicly on the instrument, officials engaged with key stakeholders covering different sectors to discuss the amendments that would be required and provided the opportunity to gain views on the draft instrument before it was laid. Stakeholders principally included the Ulster Farmers Union.
In regard to the structure of this SI, part 2 of the instrument amends the Control of Salmonella in Poultry Scheme Order (Northern Ireland) 2008, the Control of Salmonella in Broiler Flocks Scheme Order (Northern Ireland) 2009 and the Control of Salmonella in Turkey Flocks Scheme Order (Northern Ireland) 2010, to maintain and ensure high standards of poultry health. Part 3 amends the Beef and Veal Labelling Regulations (Northern Ireland) 2010, providing for the provision of information for non-prepackaged meat of bovine animals aged 12 months or less at the point of sale, establishing a system for identification and labelling of beef and beef products. This ensures the maintenance of the marketing standards of meat and bovine animals. Part 4 amends the Seed Potato Regulations (Northern Ireland) 2016, to ensure that high plant health and marketing standards are maintained. It also provides for a one-year interim period during which EU seed potatoes will continue to be recognised for production and marketing in Northern Ireland to ensure the continuity of supplies of seed potatoes.
What are the main changes? When I talk about changes, I mean changes to the text to cater for Brexit, rather than any substantive or policy changes. As with other instruments, various terms in the regulations or the directives that relate to the EU are amended to be relevant to the UK. The instrument updates references to retained EU legislation in parts 2, 3 and 4. Part 4 also introduces legislation that ensures that the legal requirements for producing and marketing seed potatoes are in place after the UK has left the EU.
There are three main changes. The first involves grade names. The current legislation is the Seed Potatoes Regulations (Northern Ireland) 2016, which includes all the requirements from the EU directive on seed potatoes—that is, directive 2002/56/EC. In those regulations, seed potatoes are sold in various grades, called union grades, depending on the age and quality of the seed. The instrument renames the union grades as “UK grades”. The actual names of the grades—PB, S, SE and E—are unchanged, as are the requirements to be met for each of the grades.
Secondly, if the UK leaves the EU without a withdrawal agreement, UK seed potatoes will be prohibited from being marketed in the EU. In those circumstances, the UK could also prohibit the marketing in the UK of seed potatoes produced in the EU and Switzerland.
However, the varieties currently purchased by UK growers from the EU are not currently available within the UK. England, Wales and Northern Ireland have therefore agreed that EU seed potatoes will continue to be permitted to be marketed for a period of one year after exit day. That should give the UK industry some time to produce some of these varieties themselves. The instrument gives effect to that change.
For a variety of seed potato to be marketed within the UK, it must be listed on the UK national list or the EU common catalogue. After the UK has left the EU, the instrument will permit the marketing of varieties that are on the EU common catalogue, but not on the UK national list, for a period of two years. That will give the companies that control such varieties time to enter them on the UK national list and will also allow UK growers to continue to have access to those varieties in the interim.
This instrument will ensure that the high biosecurity and marketing standards achieved in both animal and plant health in Northern Ireland are maintained when we leave the European Union, and I commend it to the House.
Mr Goodwill
I will briefly wind up and answer one or two points that have been raised. I agree with the hon. Member for North Antrim (Ian Paisley) about the quality of Northern Ireland’s food. Indeed, I believe the Ulster fry is the pinnacle of Ulster cuisine in the ingenious way in which it manages to incorporate both potatoes and lard. I always look forward to an Ulster fry when I visit Northern Ireland.
A number of points made by the hon. Member for Ipswich (Sandy Martin) are not specifically relevant to what is before us today, which is about the quality of produce produced in Northern Ireland. Matters relating to chlorinated chicken or other issues as regards future international trade deals are important, but they are not specifically before us today. He raised a couple of technical issues where we may or may not have made errors. I would be pleased for us to look at those again and correct any errors we may have made. As I said in relation to an earlier statutory instrument, the quantity of legislation we have had to go through means it is almost certain that we would have made some mistakes, and if they are brought to our attention—or if we notice them first—we will make sure they are put right.
I repeat that this statutory instrument is a “business as usual” SI. It does not make changes; it allows a continuity of the situation should we fall into a no-deal Brexit. If, as I seem to gather from what the hon. Gentleman was saying, he is concerned that we may leave the EU without a deal, the matter is simple: he should, together with his colleagues in the Labour party, vote for the deal to ensure an orderly departure from the EU and to ensure that we move into the implementation period, when many of these sorts of issues can be dealt with in the fullness in time and be properly dealt with. I am disappointed that, particularly in the north of England, where so many constituencies that elected Labour MPs actually voted to leave the EU, some MPs are not listening to their constituents.
Sandy Martin
Does the Minister accept that, if we were to have a permanent customs union and to move in the direction that the Labour party has been calling for, the Government would not need to have a backstop and they might get the support of the party on this side of the House as well?
Mr Goodwill
Staying in the customs union is not what the people in Scarborough and Whitby voted for when they voted—62% was the figure—to leave the EU. In any case, I ask that this measure be approved.
Question put and agreed to.
Agriculture and Fisheries Council
Robert Goodwill Excerpts(6 years, 11 months ago)
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The Minister for Agriculture, Fisheries and Food (Mr Robert Goodwill)
The Agriculture and Fisheries Council takes place in Luxembourg on 15 April.
As the provisional agenda stands, the primary focus for agriculture will be on the post-2020 common agricultural policy (CAP) reform package. Ministers will exchange views on the green architecture elements in the regulation on CAP strategic plans.
Council will also exchange views on the agricultural aspects of the Commission’s strategic long-term vision for a climate neutral economy, the market situation, and the taskforce in rural Africa, an expert group set up by the European Commission.
There are currently four items scheduled for discussion under “any other business”:
information from the presidency on research and agriculture.
information from the Commission on the declaration on smart and sustainable digital future for European agriculture and rural areas.
information from the Slovakian delegation on the renewable energy directive post-2020.
information from the Netherlands delegation on the EU Action against deforestation and forest degradation.
[HCWS1506]
Agriculture and Fisheries Council
Robert Goodwill Excerpts(6 years, 11 months ago)
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The Minister for Agriculture, Fisheries and Food (Mr Robert Goodwill)
I represented the UK at the Agriculture and Fisheries Council in Brussels on 18 March.
The main item on the agriculture-focused agenda was the reform of the Common Agricultural Policy (CAP) post-2020, covering three legislative files:
the regulation on CAP strategic plans,
the horizontal regulation, which is a regulation on the financing, management and monitoring of the CAP,
the regulation on common market organisation (CMO) of agricultural products.
Member states highlighted that further discussions were needed in areas such as the delivery model, wine labelling and greening. I intervened to introduce myself and expressed the UK’s interest to share thinking on our domestic arrangements as they develop. During the discussion Ministers also debated the outcome of the congress titled “CAP Strategic Plans - Exploring Eco-Climate Schemes” which took place in Leeuwarden, Netherlands on 6-8 February 2019, as well as the future of coupled income support in the CAP.
Council also held an exchange of views on the bioeconomy. Commissioner Hogan gave an overview of the implementation of the EU’s new strategy while member states exchanged examples of areas where the bioeconomy is being developed in their countries. I intervened on the item, welcoming the EU bioeconomy strategy and pointing to the UK’s national bioeconomy strategy which was published in December 2018.
A number of other items were discussed under ‘any other business’:
Slovenia informed Council about small-scale coastal fisheries and the European Maritime and Fisheries Fund.
The Netherlands informed Council about a decision by the Technical Board of Appeals of the European Patent Office regarding the possibility to patent the results of classical plant breeding.
The Commission provided an update about the outcomes of the workshops organised by the Commission Task Force for Water and Agriculture on 27 November 2018 in Sore, Denmark and on 5-6 February 2019 in Bucharest, Romania.
Poland provided an update on the potential impact on the meat market considering new trade challenges. As the discussion reflected on the possible impact of the UK leaving the EU, I intervened to set out the reasoning behind our recently published temporary tariff regime for no-deal.
[HCWS1476]
Environment, Food and Rural Affairs
Robert Goodwill Excerpts(7 years ago)
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Mr Goodwill
Indeed, one nugget that we did spot was the change that is under way in the European Commission to increase the de minimis fishing limit from €25,000 to €30,000 and we have managed to include that.
[Official Report, Twentieth Delegated Legislation Committee, 19 March 2019, c. 8.]
Letter of correction from the Minister for Agriculture, Fisheries and Food.
An error has been identified in my response to the hon. Member for Plymouth, Sutton and Devonport (Luke Pollard).
The correct statement should have been:
Mr Goodwill
Indeed, one nugget that we did spot was the change that is under way in the European Commission to increase the agricultural de minimis limit from €15,000 to €20,000, with an optional higher limit of €25,000, and we have managed to include that.
European Structural and Investment Funds Common Provisions
The following is an extract from the Sixth Delegated Legislation Committee on the draft European Structural and Investment Funds Common Provisions (Amendment) (EU Exit) Regulations 2019 and the draft European Structural and Investment Funds Common Provisions Rules etc. (Amendment etc.) (EU Exit) Regulations 2019.
Mr Goodwill
Yesterday, I said that we spotted that the European Commission was increasing the de minimis payment level for fishing communities, and we made that correction before the matter came to Committee.
[Official Report, Sixth Delegated Legislation Committee, 20 March 2019, c. 11.]
Letter of correction from the Minister for Agriculture, Fisheries and Food.
An error has been identified in my response to the hon. Member for Plymouth, Sutton and Devonport (Luke Pollard).
The correct statement should have been:
Mr Goodwill
Yesterday, I said that we spotted that the European Commission was increasing the de minimis payment level for agricultural communities, and we made that correction before the matter came to Committee.
Oral Answers to Questions
Robert Goodwill Excerpts(7 years ago)
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The Minister for Agriculture, Fisheries and Food (Mr Robert Goodwill)
The Agriculture Bill will underpin an ambitious new system based on paying public money for public goods. This will support a profitable farming sector that produces world-class food while protecting and enhancing our precious countryside.
Chris Davies
Will my right hon. Friend reassure the farmers of Brecon and Radnorshire, and indeed the farmers of the United Kingdom, that whether there is a deal or no deal, their future will be of paramount importance once we leave the EU?
Mr Goodwill
I can reassure my hon. Friend that farmers will be of paramount importance no matter which scenario we end up with. With regard to upland farmers, I can reassure him that my Department is in close contact with the sheep sector in preparing for these scenarios. Indeed, at yesterday’s EFRA Select Committee I specifically referenced the effect of EU most-favoured nation tariffs on sheep exports in a no-deal scenario.
Nick Smith (Blaenau Gwent) (Lab)
The Government talk about a trading relationship that is “as close as possible” with the EU, but they have repeatedly rejected the best way of securing it, which is a permanent customs union and strong alignment with the single market. Given that 90% of Welsh lamb exports go to the EU, will the Minister listen to Welsh hill farmers and press for the closer economic relationship that they need?
Mr Goodwill
Along with all the other options, the House rejected that option last night. It is a fact, of course, that 30% of the lamb produced in the UK is exported to the EU. Indeed, a large proportion of Welsh lamb, with its smaller carcases, meets that market. We are well aware of the problems that would occur. Of course, the best way to avoid that situation is to vote for the deal.
Dame Caroline Spelman (Meriden) (Con)
I chair the all-party parliamentary group for the horse, and we heard yesterday that 87 horses were killed on our roads last year. Will it be possible under future farming policy to extend bridle-paths? Will the Minister consider extending the period for the registration of existing paths so that none are lost and so that our overstretched volunteers and authorities have time to confirm them?
Mr Goodwill
Yes, I am aware that a number of stakeholders are not aware of that deadline. I would be happy to meet my right hon. Friend to discuss that. One of the public goods that we could deliver through the Agriculture Bill is better public access, which could include bridleways to join up existing paths so that not as many horses have to use the roads.
David Simpson (Upper Bann) (DUP)
Looking at farming policy, the Government announced recently that they would allow farming produce into Northern Ireland from the Republic of Ireland tariff free. What is the Minister’s opinion on the European Union reciprocating that?
Mr Goodwill
By not only announcing our tariff regime for other borders but making it clear that we do not wish to have a hard border across the island of Ireland, we hope that the Republic of Ireland will show a similarly flexible view and that the European Union will not impose any restrictions that the Irish Government would not wish to follow.
Several hon. Members rose—
Mr Richard Bacon (South Norfolk) (Con)
Mr Speaker, because I can lip read, I know that you want me to ask a question about pork and pork products, and it is true that we have a very successful industry, but it is—unfortunately, from the point of view of this question—unsubsidised by the British taxpayer. However, farm payments are central to farm policy. One of the horses running in the 14.50 at Cheltenham recently was called Single Farm Payment. Unfortunately, the horse came last. Can Ministers tell us what implications there are for farm payments, or do they feel that, as usual, delays were inevitable?
Mr Goodwill
I can report to the House that performance of the basic payment scheme in 2018 was much better than in previous years, with 98.8% of payments being made. We have guaranteed that the system will apply for this year and next year. Moving forward, we will have an exciting new scheme under the Agriculture Act—as I hope it will then be—that enables us to green the economy and make basic payments to more environmental schemes.
Deidre Brock (Edinburgh North and Leith) (SNP)
The Under-Secretary of State for Environment, Food and Rural Affairs, the hon. Member for Macclesfield (David Rutley), said in a recent Delegated Legislation Committee:
“The Government look forward to negotiations on the UK’s future economic partnership with the EU, during which we will be able to discuss the relationship between the UK’s new GI schemes and the EU schemes.”—[Official Report, Eleventh Delegated Legislation Committee, 26 March 2019; c. 10.]
We now have confirmation that brand protections for high-quality products, including Scotch beef, Scotch lamb and Scotch whisky, have become bargaining chips in the big Brexit bodge, and that there will be no support on day one of a no-deal Brexit. What financial compensation will be offered to Scotland’s food and drink producers for this UK Government policy blunder?
Mr Goodwill
I have to say that that is a load of nonsense. British consumers rely on geographical indicators to ensure that products they buy from the continent are kosher—are the right thing—and I think they would expect the same from us. I think there would be very productive negotiations, and I hope that we would reach quite rapid decisions on most of them.
Richard Benyon (Newbury) (Con)
There is a crisis of species decline in this country. While we can all see the virtues of operations like rewilding and species introduction, it is in the farmed environment where we will turn it around. Will my right hon. Friend assure us that in the Agriculture Bill and in Government policy, there will be a drive towards the right incentives to protect species and reverse the decline in biodiversity?
Mr Goodwill
It is not just that that is within the Agriculture Bill; it is front and centre within it and central to the way we will continue to support the agriculture industry and deliver the public goods that taxpayers want.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
I very much agree with the Minister when he talks about the importance of Europe as an export market for our lamb producers and hill farmers, but last night 160 of his colleagues voted for a no-deal Brexit, including the hon. Member for South Norfolk (Mr Bacon). A no-deal Brexit would expose lamb exports to a 12.8%, plus €171.3 per 100 kg, tariff. Will that be good for sheep farmers?
Mr Goodwill
The best way of preventing a no-deal Brexit is to vote for the deal. Nothing yesterday was supported by the House. The deal is the best thing for agriculture, the future and our long-term relationship with the European Union.
Dr David Drew (Stroud) (Lab/Co-op)
The problem is that the numbers participating in countryside stewardship continue to plummet. Morale at Natural England is at an all-time low, and there is the real problem that no money is going into environmental land management schemes. What will the Government do to move us towards an environmental payment scheme?
Mr Goodwill
The hon. Gentleman is absolutely right in some ways. We have not delivered the support for those environmental schemes that we should have delivered. I am pleased that the Rural Payments Agency has now taken that over from Natural England. I met its chief executive this week. If we cannot to get the money out on time, other farmers will not be incentivised to join those schemes, so my priority is to improve the situation, as we did with the basic payments scheme.
Liz McInnes (Heywood and Middleton) (Lab)
Kate Green (Stretford and Urmston) (Lab)
The Minister for Agriculture, Fisheries and Food (Mr Robert Goodwill)
We regularly have detailed discussions on the seasonal workers pilot with colleagues across Government. I will continue to work closely with Home Office colleagues in particular to ensure the successful operation of the pilot.
Kate Green
Farmers say that the pilots began too late for this spring season, and the Home Office does not appear to understand the needs of the sector. On 14 February, James Porter of the National Farmers Union Scotland told the Immigration and Social Security Co-ordination (EU Withdrawal) Public Bill Committee that the pilot was too small scale and needed to increase immediately to 10,000 places. Will the Minister have discussions with his Home Office colleagues so that the labour needs of the sector can be met as a matter of urgency?
Mr Goodwill
The first workers under the scheme will be arriving in April. Indeed, I met one of my officials who had just come back from Ukraine to ensure that the scheme works well. There will be 2,500 workers coming in each year, and I will also meet with the president of the NFU this afternoon to discuss what views she may have on that.
David T. C. Davies (Monmouth) (Con)
Mr Goodwill
I absolutely agree with my hon. Friend. Let me make it clear that EU workers already here will be able to stay. During the implementation period, people will be able to come to live, work and study from the EU and there will be registration scheme. Indeed, in a no-deal situation, European economic area citizens will be able to live and work here without a visa for three months, and they can continue to stay here, applying for European temporary leave to remain for 36 months after that, so we are still open for EU workers to come here in every scenario.
Pete Wishart (Perth and North Perthshire) (SNP)
Two thousand five hundred—what an absolute and utter joke. The farmers and growers in my constituency are laughing at it. This is where an obsession with immigration gets us: to crops left to wither in the field. The NFU says that 90,000 workers are required for a feasible working scheme. When will the Minister get serious about meeting that target?
Mr Goodwill
I have already said that we will continue with the possibility of EU workers coming here. I know that a number of Bulgarians and Romanians continue to come here, and there are about 29,000 seasonal workers in the country. Of course, the best way to make sure that we get into a stable situation is to vote for the deal.
Stephen Crabb (Preseli Pembrokeshire) (Con)
This issue is bigger than just seasonal workers on farms: throughout the rural economy, there are people working in food processing, logistics and a wide range of other sectors. We still need people from the EU to come here, so will the Minister assure the House that our immigration policy post Brexit will continue to be open and welcoming?
Mr Goodwill
I can absolutely give that assurance. There are 400,000 EU nationals working in the UK food chain, and we would be delighted for them to stay here, work and contribute to our economy. Indeed, I am told that one reason why some may not come is the weakness of sterling, but if we get the deal through, I would not be surprised if sterling hardened.
Nigel Huddleston (Mid Worcestershire) (Con)
draft Common Organisation of the Markets in Agricultural Products Framework (miscellaneous amendments, etc.) (eu exit) Regulations 2019
Draft Common organisation of the markets in agricultural products and common agricultural policy (miscellaneous amendments) (eu exit) regulations 2019
Draft Agriculture (Legislative Fuctions) (EU Exit) (No. 2) Regulations 2019
Robert Goodwill Excerpts(7 years ago)
General CommitteesRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Minister for Agriculture, Fisheries and Food (Mr Robert Goodwill)
I beg to move,
That the Committee has considered the draft Common Organisation of the Markets in Agricultural Products Framework (Miscellaneous Amendments, etc.) (EU Exit) Regulations 2019.
The Chair
With this it will be convenient to consider the draft Common Organisation of the Markets in Agricultural Products and Common Agricultural Policy (Miscellaneous Amendments) (EU Exit) Regulations 2019 and the draft Agriculture (Legislative Functions) (EU Exit) (No. 2) Regulations 2019.
Mr Goodwill
As a farmer myself, and given the family business’s participation in an agri-environmental scheme, I should mention my entry in the Register of Members’ Financial Interests.
The three statutory instruments amend retained EU law setting out the overarching framework for the common organisation of markets in agricultural products, and retained EU and domestic legislation on related wider common agricultural policy provisions. They also amend retained EU law on organic food and feed, and on imports and exports of processed agricultural goods. The amendments will maintain the effectiveness and continuity of retained EU law and domestic legislation that would otherwise be deficient following our exit from the European Union, and will ensure minimal disruption for businesses and other stakeholders.
The legislation is technical in nature and limited in scope. We are upholding standards and maintaining processes, and the legislation makes appropriate corrections to ensure that those standards and processes continue to operate in a UK context. Where changes are required, we have endeavoured to ensure that they will have a limited impact on businesses and other stakeholders. All three instruments apply across the whole UK, and we have consulted extensively with the devolved Administrations to ensure that the legislation on the common organisation of the agricultural markets continues to work, while respecting the devolution agreements.
Two of the instruments, the draft Common Organisation of the Markets in Agricultural Products Framework (Miscellaneous Amendments, etc.) (EU Exit) Regulations 2019 and the draft Agriculture (Legislative Functions) (EU Exit) (No. 2) Regulations 2019, operate in areas of primarily devolved competence, with the appropriate powers transferring to the devolved Ministers. In many of those cases, the Secretary of State is able to act on behalf of the devolved Administrations, should they give their consent. However, in some circumstances that does not apply to Wales. Due to certain provisions specific to the Welsh devolution settlement, in certain instances allowing the Secretary of State to legislate or otherwise act on behalf of Wales would have implications for devolved competence for Wales. The Welsh Government have carefully considered whether the Secretary of State should be able to act on their behalf in respect of each of the functions concerned, and the drafting reflects the outcome of that consideration.
The other instrument, the draft Common Organisation of the Markets in Agricultural Products and Common Agricultural Policy (Miscellaneous Amendments) (EU Exit) Regulations 2019—[Laughter]—amends only provisions relating to reserved matters.
Mr Goodwill
There will be an opportunity, I am sure.
All three instruments concern the common organisation of the agriculture markets, more commonly referred to as the CMO. The CMO sits in pillar one of the common agricultural policy, alongside direct payments, and it was set up as a means of meeting the objectives of the CAP—in particular, to stabilise markets, ensure a fair standard of living for agricultural producers, and increase agricultural productivity. Over time, it has broadened out to provide a toolkit that enables the EU to manage market volatility, incentivise collaboration between and competitiveness of agricultural producers, and facilitate trade.
The first statutory instrument, the draft Common Organisation of the Markets in Agricultural Products Framework (Miscellaneous Amendments, etc.) (EU Exit) Regulations 2019, amends the overarching framework for the CMO rather than the details of each policy area, and is intended to lay the groundwork for the more detailed amendments in other CMO instruments. The policy areas in the instrument can be described as public intervention and aid for private storage, aid schemes, marketing standards, producer organisations, import and export rules and crisis measures. The instrument also deals with the basic legislation for the scheme for the promotion of agricultural products, EU regulation No. 1144/2014.
The second statutory instrument in the grouping, the draft Common Organisation of the Markets in Agricultural Products and Common Agricultural Policy (Miscellaneous Amendments) (EU Exit) Regulations 2019, ensures the operability of certain provisions relating to the reserved policy areas of regulation of anti-competitive practices; international trade; imports and exports; and intellectual property law.
The second set of regulations amend provisions in legislation on the common organisation of the agricultural markets and the wider common agricultural policy, as well as in EU legislation relating to imports and exports of processed agricultural goods that largely mirrors the relevant provisions on non-processed agricultural goods within the CMO. The regulations also confer legislative functions held by the Commission on the Secretary of State in reserved policy areas, to enable the smooth functioning of related schemes for producers, traders, importers and exporters of agricultural goods.
In particular, the second statutory instrument contains amendments to: recognise producer organisations that provide exemptions from certain aspects of competition law across all agricultural sectors; make operable requirements for written contracts in the dairy sector; provide for an appeals route in the domestic courts relating to protection of a name as a designation of origin or geographical indication for wine; confer powers on the Secretary of State to make regulations about checks relating to protected designations of origin and geographical indications for wine; facilitate and regulate the import of beef and veal, wine, hops, fruits and vegetables, and ovalbumin and lactalbumin; facilitate and regulate the import and export of fruit and vegetables; and make operable rules relating to the granting of export refunds for processed agricultural goods.
The third statutory instrument in the group, the draft Agriculture (Legislative Functions) (EU Exit) (No. 2) Regulations 2019, amends EU legislation relating to CMO schemes; CAP financing, management and monitoring; and organic food and feed. Under the amendments, functions currently exercised by the European Commission will instead be exercisable by public authorities in the United Kingdom. That will enable those legislative functions to continue to be used at a national level after the UK leaves the EU.
The instrument relates to EU regulations covering the common organisation of agricultural products and related CAP provisions, as well as organic food and feed. The EU regulations confer various functions on the Commission, so that it can develop the technical details required to operate a specific regime. Examples of those functions include: specifying forms to be used; setting financial limits or prices; defining scheme eligibility criteria; establishing key dates; and defining programmes or scheme periods. After EU exit, without amendment, the legislative functions in these retained EU regulations would be inoperable. That would prevent the UK Government and, where applicable, the devolved Administrations from being able to make any necessary changes to these policy regimes to keep them up to date. This instrument uses powers in the European Union (Withdrawal) Act 2018 to correct that deficiency, so that the functions can be exercised by UK public authorities.
I will try to pre-empt some of the questions that I suspect I might get from the Opposition. I am sure that they will want to ask whether the instruments will also be needed if we agree a deal with the EU. Yes; they make operability amendments that will be necessary for the retained EU law to function, and to maintain the integrity of our statute book, either at the end of an implementation period, or sooner if we leave the EU without a deal.
I know I will be asked whether a formal consultation has been carried out. I make it clear to the Committee that we have not carried out a formal consultation, as the changes are technical in nature and do not describe any change in policy. There will be no concrete changes. We continue to engage with stakeholders; indeed, I am meeting the chiefs of the National Farmers Union and the Country Land and Business Association later in the week.
I might be asked when the Agriculture Bill will be coming back. I make it clear to the Committee that we wish to bring the Agriculture Bill here as soon as possible. It would be helpful if we could get the withdrawal agreement through at the third time of asking. That would clear the House and enable us to get these important bits of legislation through. I may be asked how we can change what is the statutory instruments. Once we have left the EU, we can amend and change the provisions; the SIs are about maintaining the status quo, including any changes that may flow from the Agriculture Bill, or other changes we wish to make.
In closing, the instruments make appropriate changes to ensure an operable legal framework for the CMO on leaving the European Union. The changes are deliberately minimal, and will commence only when necessary to ensure operability and address deficiency.
Mr Goodwill
I will take the questions in reverse order, starting with those asked by the hon. Member for Plymouth, Sutton and Devonport. He specifically asked about the functions that the Secretary of State exercises on behalf of the devolved Administrations. I repeat the point I made in my opening remarks: the Welsh Government have carefully considered whether the Secretary of State should be able to act on their behalf in respect of each of the functions concerned, and the drafting reflects the outcome of that consideration. I met with the Welsh and the Scots yesterday, and I think we have a good working relationship with the devolved Administrations. We wish above all to respect the devolution settlements, and we understand the importance of decision making at that level. Indeed, part of the wish expressed by the British people in the referendum was to have control of our own affairs, and not be controlled from another capital. I am sure that people in Edinburgh would sympathise with that, although we wish to keep the United Kingdom together as one country.
To quickly address the wine situation, the Government have not announced a decision about how non-UK GIs will be treated if the UK leaves the EU without a withdrawal agreement in place, but we recognise the cultural and economic importance of geographical indications. The hon. Gentleman talked about the day on which we will leave the European Union; maybe we should have a sweepstake in the Committee to see who gets closest. However, as far as I am aware, we will leave on 12 April in the event of no deal, and on 22 May if the deal can be delivered. Those who are concerned about no deal face a simple choice: they should vote for the deal, to enable us to leave in an orderly way. If we do not leave the European Union as instructed in the referendum, I do not believe the people of this country will treat any party kindly.
To respond to the questions asked by the hon. Member for Glasgow East, I have already mentioned how we respect the devolution settlement. Voting for the deal is the best way of avoiding any chaos that he may predict.
The hon. Member for Stroud talked about mistakes that may have been made. As I said, there may have been mistakes, but they can be corrected very easily. Many of the changes that we may need to make in future will be the result not of mistakes, but of the need to keep up with changes at an EU level. He said that these measures are complex; that is true, but the changes being made are simple. Most of these regulations received scant scrutiny the first time they were presented to Westminster, having been decided in Europe, but in future we will be able to amend them in our sovereign Parliament without needing another 27 countries to agree to our way forward.
The hon. Gentleman raised the NFU’s concerns about producer organisations. Those are important to us, but no change is being made. In many ways, the power in this country tends to lie with the supermarkets, so I am not worried that producer organisations will misuse the exemption. Indeed, the Competition and Markets Authority is looking at how supermarkets are exercising their powers—[Interruption.]
Mr Goodwill
Before we were so rudely interrupted, I was trying to rush through my comments in order to get to the end before the Division, but I can now take a little more time to explain the situation and to answer the questions comprehensively.
The hon. Member for Stroud talked about anticipating future SIs. Changes will need to be made to keep up with changes to EU legislation, as I already said, but the SIs before us today make no fundamental changes. They are about changing EU authorities into the relevant UK authority.
The hon. Gentleman also asked why we are rolling over the articles, rather than starting afresh. With regard to future competition law as it relates to agriculture, the articles covering the EU producer organisation regime are being amended by the European Union (Withdrawal) Act in order to be made operable, but will eventually be repealed and replaced by domestic successor legislation using the powers in the Agriculture Bill.
Greener UK were concerned about any reduction in our very tight environmental standards. The Secretary of State has made it clear on several occasions, and I can reassure the hon. Gentleman, that there will be no change. There will be no reduction in our standards. Indeed, with our new method of agricultural support delivering public goods, in my opinion we will have the greenest agriculture in Europe.
The hon. Gentleman talked about organic production. Of course, we will continue to respect EU standards, but many of the licensing bodies in the UK, such as the Soil Association, have even more stringent requirements. The Agriculture Bill will give us the opportunity to help those farmers who may well want to convert to organics. The chance to have better trade relations with the United States will be a great opportunity for UK food, particularly organic food, to be sold into the United States market.
We are transferring powers on organic regulations to the UK from the European Commission. The powers include measures to implement the prohibition of genetically modified organisms, measures to implement rules for production, conversion, processing, approval of certain products, exceptional production, labelling, and precautionary and control measures, which will ensure the notification of UK organic operators, and measures to set out the forms and methods of communication. I think we have a comprehensive approach to the issue of organic production.
A question was asked about school milk, which EU funding supports to an extent. We want children to be healthy and well-nourished, and regular dairy consumption makes an important contribution to that. I have a glass of milk most days myself, as it is the cheapest beverage in the Tea Room—it says a lot for the way that milk is taken for granted that a glass of milk in the Tea Room is a third of the price of a cup of tea. Alongside participating in the school milk scheme, the Government are doing a great deal nationally to promote children’s dairy consumption through, for example, the much larger national free nursery milk scheme, and ensuring the availability of milk for pupils under the school food standards, including free milk for disadvantaged pupils.
Mr Goodwill
I thank the hon. Gentleman for that question, which leads me smoothly on to my next point. Regardless of whether we have a deal with the EU, funding will be available under the scheme for at least the next few years, and we will keep the position under review.
My last point is on the database and IT availability for a whole variety of areas. We are working very hard as a Department to make sure that we have IT systems up and running. I am very optimistic that they will work well.
Mr Goodwill
I know the history. The hon. Member for Stroud can shake his head, but we know that this has been a problem for various Governments. A lot of the systems have been run at the beta phase—the testing phase—and they have worked well, including in my previous Department, Education, for the nursery scheme. That system worked very well after a few initial glitches.
The operability amendments made by the regulations will maintain the effectiveness and continuity of this legislation on the common organisation of agricultural markets and wider CAP provisions that would otherwise be inoperable following our exit from the European Union, as well as the provisions covering organic food and feed, and imports and exports of processed agricultural goods. They will ensure that we can continue to operate schemes under these regulations for our vital farming sector and maintain the standards they set, which support confidence in our farmed goods on domestic and international markets. I commend the regulations to the Committee.
Question put and agreed to.
Resolved,
That the Committee has considered the draft Common Organisation of the Markets in Agricultural Products Framework (Miscellaneous Amendments, etc.) (EU Exit) Regulations 2019.
Draft Common Organisation of the Markets in Agricultural Products and Common Agricultural Policy (Miscellaneous Amendments) (EU Exit) Regulations 2019
Resolved,
That the Committee has considered the draft Common Organisation of the Markets in Agricultural Products and Common Agricultural Policy (Miscellaneous Amendments) (EU Exit) Regulations 2019.—(Mr Goodwill.)
Draft Agriculture (Legislative Functions) (EU Exit) (No. 2) Regulations 2019
Resolved,
That the Committee has considered the draft Agriculture (Legislative Functions) (EU Exit) (No. 2) Regulations 2019.—(Mr Goodwill.)
Draft Agriculture (Legislative Functions) (EU Exit) Regulations 2019
Draft Common Agricultural Policy (Financing, Management and Monitoring) (Miscellaneous Amendments) (EU Exit) Regulations 2019
Draft Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019
Draft Common Agricultural Policy and Agriculture and Horticulture Development Board (Amendment etc.) (EU Exit) Regulations 2019
Robert Goodwill Excerpts(7 years ago)
General CommitteesRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Minister for Agriculture, Fisheries and Food (Mr Robert Goodwill)
I beg to move,
That the Committee has considered the draft Agriculture (Legislative Functions) (EU Exit) Regulations 2019.
The Chair
With this it will be convenient to discuss the draft Common Agricultural Policy (Financing, Management and Monitoring) (Miscellaneous Amendments) (EU Exit) Regulations 2019, the draft Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019 and the draft Common Agricultural Policy and Agriculture and Horticulture Development Board (Amendment etc.) (EU Exit) Regulations 2019.
Mr Goodwill
We are all keen to get on today, are we not? I welcome a star-studded cast of Members on both sides of the Committee, especially my immediate predecessor, my hon. Friend the Member for Camborne and Redruth. For any particularly difficult questions that I cannot answer, and my officials cannot enlighten me on, I am sure that we can rely on him.
As a farmer myself, and given the family business’s participation in an agri-environment scheme, I mention my entry in the Register of Members’ Financial Interests.
The matters in the four draft statutory instruments are closely related, and I thank the Committee for taking the logical and sensible step of considering all four together. With a number of small exceptions, which I will explain shortly, the regulations will make purely technical amendments. The amendments are necessary to address European laws being brought on to the UK statute books in a partially inoperable form and to enable the common agricultural policy and the Agriculture and Horticulture Development Board legislation to continue to function as it does today.
The instruments are not solely required in a no-deal scenario and, in the event of an agreement, they will ensure that the current legislation remains operable at the end of any implementation period. The statutory instruments will ensure that the UK Government are able to meet their commitments to funding in the agricultural sector. The Government have pledged to continue to commit the same cash total in funds for farm support until the end of this Parliament, which is expected in 2022, and that includes all funding provided for farm support under both pillar one and pillar two of the current CAP. That commitment applies to the whole of the United Kingdom.
The UK Government have guaranteed that the existing level of agricultural funding under CAP pillar one will be upheld until 2020 as part of the transition to new domestic arrangements. The UK Government have also guaranteed that any rural development projects for which funding has been agreed before the end of 2020 will be funded for their full lifetime.
As the Committee is well aware, agriculture and fisheries are devolved policy areas, and are of special importance for all parts of the UK. We have worked closely with the devolved Administrations to produce the draft instruments, and they place great importance on them. They have given their consent to the instruments.
I will outline the three CAP draft statutory instruments in turn. They will enable regulations to continue to operate effectively. They do not introduce new policy, and they preserve the regime for supporting CAP beneficiaries. Amendments in the instruments include omitting redundant references to the “European Commission” and “member states”, and amending references to “Union law” throughout, so that the retained European Union regulations continue to operate effectively as part of national law.
One purpose of the modifications is to ensure continuity and clarity as to who is responsible for the implementation and administration of the CAP schemes. The obligations and discretions currently placed on member states will continue to be exercised after exit by relevant authorities in the United Kingdom. In that context, a “relevant authority” is the Secretary of State, Scottish Ministers, Welsh Ministers and the Department of Agriculture, Environment and Rural Affairs in Northern Ireland.
The draft Agriculture (Legislative Functions) (EU Exit) Regulations 2019 amend five different EU regulations that give the European Commission powers to change existing legislation relating to the financing, managing and monitoring of the CAP, direct payments, the rural development programmes and the fisheries programme funded by the EMFF, the European maritime and fisheries fund. The five regulations work together to provide the necessary powers to ensure the smooth functioning of the CAP and EMFF-funded fisheries schemes in the light of economic, scientific and environmental changes. For example, the Commission is currently empowered to make legislation adding to a list of practices equivalent to crop diversification in the light of developments in the sector. The regulations also provide powers to, for instance, update the model used to estimate the net revenue of an EMFF or rural development project if a more accurate model becomes available.
As its title suggests, the instrument makes amendments to confer existing legislative powers on the appropriate authorities, which as I have mentioned are either the Secretary of State or the relevant Administration of each constituent nation. The amendments largely consist of replacing references to “the Commission” with “the appropriate authority” or “the Secretary of State.” The instrument also contains operability changes relating to the EU financial discipline mechanism. That mechanism ensures that the pillar one budget, which is the budget for direct payments and agricultural market measures, is not exceeded. It works by reducing the value of direct payments if forecast expenditure on pillar one exceeds a predetermined budget.
The SI makes changes to prevent the financial discipline mechanism becoming inoperable. As agriculture is devolved, the Administrations have each assessed what amendment is appropriate to remedy that inoperability. Devolved Administrations have chosen to omit the financial discipline mechanism, whereas England has chosen to use the powers contained in the European Union (Withdrawal) Act 2018 to make financial discipline operable on an England-only basis. For England, operability amendments are made to financial discipline provisions, to ensure that the mechanism is compatible with existing EU domestic funding practices. That does not constitute a new policy, as that mechanism currently applies in the EU.
The draft Common Agricultural Policy (Financing, Management and Monitoring) (Miscellaneous Amendments) (EU Exit) Regulations 2019 amend the retained EU law that sets out the overarching framework for how the CAP schemes function, governing the financing, managing and monitoring arrangements that underpin schemes. They remove the EU audit and accounting regimes, which would clearly no longer be appropriate for Exchequer-funded payments. Those regimes will be replaced by the domestic system that currently operates in parallel to the EU system, to provide equivalent assurances to our Parliament. Under that domestic system, current levels of checks and scrutiny regarding CAP payments will be retained.
The draft Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019 make technical amendments to the supplementary regulations, which set out detail about the financing, management and monitoring arrangements for the CAP schemes. This instrument ensures the operability of five different pieces of EU law, making sure that the management and monitoring aspects of the retained EU legislation maintain current standards after exit. That includes setting out further detail about how checks to beneficiaries should be carried out, and how penalties should be applied to those found to be in breach of the legislation. The instrument also pertains to five other pieces of retained EU law. Four of those are implicitly tied to EU audit and accounting systems, which as I say will be replaced with the existing domestic equivalent. The final revoked piece of EU law relates to the EU policy monitoring system, which again will be replaced by our existing domestic policy evaluation process.
Finally, the draft Common Agricultural Policy and Agriculture and Horticulture Development Board (Amendment etc.) (EU Exit) Regulations 2019 make operability amendments to domestic regulations made under the European Communities Act 1972, and implement certain provisions of the EU common agricultural policy. I draw the Committee’s attention to the fact that we re-laid the explanatory memorandum for this instrument on Thursday last.
In the memorandum that was withdrawn, paragraph 4 —which deals with the instrument’s extent and territorial application—stated that the amendments to the Agriculture and Horticulture Development Board Order 2008 apply to the UK. In fact, although parts of that order apply to the UK, the amendments proposed in relation to horticulture in this instrument apply to Great Britain, and those that relate to the red meat levy apply to England only. That reflects the territorial coverage that the levy body, the AHDB, has for specific sectors, which is now presented correctly in the explanatory memorandum. That correction has no impact, other than to align that memorandum with the instrument we are debating. I apologise for any inconvenience it has caused, although I am sure that most Members present had spotted that issue when preparing for today’s Committee.
As well as operability changes to domestic regulations under the European Communities Act 1972, the SI also amends one order concerning the Agriculture and Horticulture Development Board to address two operability issues arising from the United Kingdom leaving the European Union. In one case, that has required us to make a small policy change. Currently, a minor levy exemption applies to livestock imported from another member state and slaughtered in England within two or three months of being imported. For continuity, we retain the exemption. To ensure that we are then in line with World Trade Organisation rules and are not favouring the EU, we are extending the exemption to cover any such livestock imported from the rest of the world. We expect that minor policy change to have little or no impact on the ground, given the very low levels of live imports from beyond the EU. Indeed, officials were hard-pressed to give me an example. One that came to my mind was a stock bull imported for breeding purposes that became infertile or injured and was then slaughtered here in the UK.
An alternative would have been to scrap the exemption altogether, but in the interests of continuity, we have left the situation changed. When we have left the EU, a UK Government could of course reverse the decision, taking advantage of the freedom people opted for in the referendum. DEFRA and the devolved Administrations have liaised with stakeholders regarding plans to make CAP retained EU law and existing domestic legislation operable at the point of EU exit. We have kept them informed of the SI’s progress. With regards to financial discipline, DEFRA is liaising with stakeholders through a targeted engagement exercise to discuss the proposed new guidance, which will set out how pillar one spend should be apportioned towards England. Because the minor policy change to the AHDB order is expected to have little or no impact on the ground, as we believe the relevant circumstances rarely arise, we have consulted the levy board, but not other stakeholders.
The statutory instruments provide important and necessary continuity for stakeholders and beneficiaries. They will help to ensure that farmers, fishermen and land managers continue to receive payments that support their vital work. I urge Members to agree to the amendments proposed in the regulations, which I commend to the Committee.
Mr Goodwill
I thank all hon. Members who contributed to the debate and asked interesting questions. These regulations ensure that we are able to make amendments to the CAP legislation in the same way as the EU does currently, to respond to changing circumstances in the agriculture sector and have the flexibility to manage the pillar one budget through the financial discipline mechanism.
They will ensure the continued operation of the financing, management and monitoring arrangements that underpin the common agricultural policy in the United Kingdom and will provide the AHDB with an operable legal framework. Although these are very complex matters, as the hon. Member for Stroud noted, the changes that we are making are simple and straightforward. In most cases, we are merely substituting EU bodies with UK bodies, which will help us to take back control of our own legislation.
Thangam Debbonaire (Bristol West) (Lab)
I hope that the Minister is getting used to my cheekily taking my position as the Whip but then asking questions about process—although this question is about content. He says that the changes being made are quite straightforward, yet he also talks about the devolved Administrations. I am concerned about what will happen to the democratic oversight of decisions that relate to Northern Ireland, where there is currently no Assembly.
Mr Goodwill
To put it simply, officials went through the regulations, and every time they saw a reference to an EU body, they changed it to a reference to a UK relevant body, whether that was in England, Northern Ireland, Scotland or Wales. I share the disappointment felt by many people that we have not had an agreement in Northern Ireland and a return to devolved administration; at the moment, civil servants are making the decisions, based on decisions taken in the past. As a former member of the Select Committee on Northern Ireland Affairs, I know how tough the job of those civil servants is; the longer it is since there was a devolved Administration in Northern Ireland, the more difficult it is to make decisions based on political policies that were decided at that time. I hope that all the political parties in Northern Ireland will get together to participate fully in the democratic process and give the people of Northern Ireland their voice once again through the devolved settlement, delivering on the Good Friday agreement—the Belfast agreement.
The hon. Member for Stroud asked some general questions about payment windows. There will be no changes to the scheme, but given the performance of the last Labour Government, I have to say that people in glass houses should not throw too many stones. The Labour party must take some responsibility for the complexity of the system introduced in England, which contrasts with the much more workable system in Scotland. We are often critical of European legislation, but if we gold-plate it ourselves, we must take some of the blame.
The hon. Gentleman also talked about new schemes. Obviously, under the new policies that we will introduce once the Agriculture Bill is on the statute book, we will be in a position to facilitate new schemes. We will have an improved system that will allow us to base our agriculture policy and agricultural support on UK priorities, rather than on the often compromised priorities that emerge when we negotiate within the European Union.
The hon. Gentleman talked about consultation. In a debate on a previous statutory instrument, I gave a long list of those whom we have spoken to and who have not expressed concerns. There are no concrete changes; as I have said already, in most cases we are substituting EU bodies with UK bodies.
The hon. Gentleman asked whether we should make modifications at this stage to take account of the directions of change that we discussed in debates on the Agriculture Bill. The answer is no; this is a “business as usual” measure. If he wants to make changes, the first thing he needs to do is vote for the deal, so that we can actually leave the European Union. The Agriculture Bill will create those opportunities, but that will be possible only with a deal. I hope that we can work closely with the devolved Administrations as well.
The hon. Gentleman asked a question about the red meat levy. The exemption that we are concerned with relates only to livestock imported into the UK and slaughtered in England within two to three months of arrival. There are believed to be very few cases, if any, in that category. The overall red meat levy is payable on all livestock slaughtered in England for the human food chain and raises approximately £26 million a year. Extending the exemption to imports from beyond the EU might affect the KPA. No exemptions were sought for such imports last year.
The hon. Gentleman mentioned the Soil Association. I can reassure the association that we are maintaining the status quo. As I say, the Agriculture Bill will give us great opportunities in the delivery of organic production, for example.
I was asked about future funding arrangements: as agriculture is devolved, who will pay for what? I reassure the Committee that the Government have pledged to continue to commit the same cash total in funds to farm support until the end of this Parliament, which is expected to be in 2022.
Mr Goodwill
I know what the hon. Gentleman is going to ask, and I will try to cover it.
That includes all funding provided for farm support under both pillar one and pillar two of the current CAP. Obviously, if there were an early election—of course, under the Fixed-term Parliaments Act 2011, that is not as straightforward as it used to be—since no Government can tie the hands of a future Government, it would be up to the parties standing in that election to put their plans in their manifesto and then deliver on that when elected.
Gavin Newlands
I am not sure whether there are any Scottish Tories here, but I am sure that, given their rural constituencies, they would be keen to learn whether the Conservative party manifesto will commit to giving Scottish farmers back the money that was stolen from the convergence uplift.
Mr Goodwill
I am certainly not going to rush my fences and write the next manifesto on the hoof, particularly as we do not expect to go to the people again until 2022. The last time we consulted the people on what we should do was in the referendum, and we have not delivered on that one yet, so perhaps we should get on with the work in hand.
Mr Goodwill
I will make a point about the Barnett formula before I give way. We have also committed that the Barnett formula will not simply be applied to DEFRA’s agriculture budget in 2022. That means that farmers in Wales, Scotland and Northern Ireland will not just be allocated funding according to the population of each nation. Each is significantly smaller than England, but they have large areas of agricultural interest. In October 2018, the Government announced an intra-UK allocations review, which will look into the factors that should inform the allocation of convergence funding from 2020 to 2022. The review will report ahead of the 2019 spending review, and its recommendations will be available to Treasury Ministers when future funding decisions are made.
Did I answer the hon. Gentleman’s point? I thought I had.
Dr Drew
I was actually going to make another point. Since I think we must assume that the Agriculture Bill will be delayed, these SIs are quite important. The starting point for the reduction of direct payments is 2021—that is in the plan, not in the Bill itself. Will the Minister assure me that if there is a delay, the seven-year transition period will move with it? Or are we going to try to reduce that transition period? Obviously, that would cause those who need direct payments even more difficulty.
Mr Goodwill
I thank the hon. Gentleman for that question. We are keen to make progress on the Agriculture Bill. We will get it on the statute book as soon as possible, and it will certainly be on the statute book as and when it is required.
I was asked about cross-compliance. The European Union (Withdrawal) Act 2018 does not give us the power to make wholesale policy changes, and we do not think it would be appropriate to use the powers in the Act to omit cross-compliance from retained CAP legislation. Instead, we have the flexibility to amend cross-compliance within the confines of the current legislative framework. Further substantive changes to cross-compliance will be able to be made through the Agriculture Bill.
I was also asked why the devolved Administrations have taken a different approach to agriculture. Agriculture is a devolved policy area, and the devolved Administrations are currently able to operate CAP schemes within the legislative framework. It is for each Administration to decide how these EU regulations should be made operable.
The hon. Member for Plymouth, Sutton and Devonport raised issues to do with EMFF funding and the Fisheries Bill. I had been doing so well, but that is one that I will need to write to him about, as it is quite a technical issue and I do not want to get it wrong—similarly with the dispute mechanism, although of course that is one of the things for the future. As I said, at the moment, we are keeping measures in place as they are; there is no change.
The hon. Gentleman mentioned the exchange rate. The exchange rate for payments is fixed in September. That has been the case for some time. He also mentioned fixed-term Parliaments. As I said, no Government can tie the hands of a future Government, and it will be up to the parties what they put in their manifestos.
Luke Pollard
On the technicalities of the two threshold levels, I would be grateful if, when the Minister prepares his note to me, he set out the thinking behind the €2 million mark, whether that is RPI or CPI-related, and what formula created those two levels.
Mr Goodwill
I will ’fess up: I was not aware of that difference. There may be a perfectly logical explanation that is not policy related.
Sir Oliver Heald (North East Hertfordshire) (Con)
I notice that there is an article in the regulations entitled, “Financial Discipline in England”, which sets out how that would work. Am I right that the other nations would not have to have any financial discipline, or would they make their own arrangements?
Mr Goodwill
The other nations have chosen not to opt into the financial discipline mechanism, which we use—I was going to say “to top-slice”, but that is too emotive—to ensure that we have provision for emergency payments and other such measures. That is in no way to suggest that the Scottish Administration are behaving recklessly; it is just how they are choosing to deliver that policy. I hope my right hon. and learned Friend is reassured. Indeed, I met with the DAs this morning, and Mr Ewing was very keen to talk about how we move forward constructively, respecting the powers devolved to the Scottish Parliament and Administration.
These draft statutory instruments are required to ensure our continued ability to pay UK beneficiaries of the CAP and the common fisheries policy as now. They will help to ensure compliance with the rules set out in the retained CAP legislation and to ensure that public money is spent appropriately. On that basis, I commend the regulations to the Committee.
Question put and agreed to.
Resolved,
That the Committee has considered the draft Agriculture (Legislative Functions) (EU Exit) Regulations 2019.
draft Common Agricultural Policy (Financing, Management and Monitoring) (Miscellaneous Amendments) (EU Exit) Regulations 2019
Resolved,
That the Committee has considered the draft Common Agricultural Policy (Financing, Management and Monitoring) (Miscellaneous Amendments) (EU Exit) Regulations 2019.—(Mr Goodwill.)
draft Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019
Resolved,
That the Committee has considered the draft Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019.—(Mr Goodwill.)
draft Common Agricultural Policy and Agriculture and Horticulture Development Board (Amendment etc.) (EU Exit) Regulations 2019
Resolved,
The Committee has considered the draft Common Agricultural Policy and Agriculture and Horticulture Development Board (Amendment etc.) (EU Exit) Regulations 2019.—(Mr Goodwill.)
Draft Market Measures (Marketing Standards) (Amendment) (EU Exit) Regulations 2019
Draft Market Measures Payment Schemes (Amendment) (EU Exit) Regulations 2019
Draft Market Measures (Miscellaneous Provisions) (Amendment) (EU Exit) Regulations 2019
Robert Goodwill Excerpts(7 years ago)
General CommitteesRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Minister for Agriculture, Fisheries and Food (Mr Robert Goodwill)
I beg to move,
That the Committee has considered the draft Market Measures (Marketing Standards) (Amendment) (EU Exit) Regulations 2019.
The Chair
With this it will be convenient to consider the draft Market Measures Payment Schemes (Amendment) (EU Exit) Regulations 2019 and the draft Market Measures (Miscellaneous Provisions) (Amendment) (EU Exit) Regulations 2019.
Mr Goodwill
As a farmer, I mention my entry in the Register of Members’ Financial Interests. The matters in these statutory instruments are closely related, and I thank the Committee for expediting matters by considering them together.
The instruments amend retained EU law and domestic legislation, setting down the detailed rules for the common organisation of the markets in agricultural products, to ensure their smooth transition into a domestic regime. They are distinct from the instruments being debated in the House tomorrow that amend the overarching framework legislation for those detailed rules. The amendments in the instruments will maintain the effectiveness and continuity of retained EU law and domestic legislation that would otherwise be deficient following our exit from the European Union. They will ensure that the transition from a regime governed primarily by EU law to one governed by domestic law causes minimal disruption for businesses and stakeholders.
Mr Ranil Jayawardena (North East Hampshire) (Con)
The Minister talks about making sure that domestic law and the provisions of the statutory instruments do not make problems for businesses, but the Quality Standards for Green Bananas (England and Wales) Regulations 2012 are one of the measures that the statutory instruments tackle. Can he assure us that he will not allow the example of bendy bananas being ruled out from sale to continue when we have our freedoms, and that the statutory instruments do not lock us into the wrong regulations?
Mr Goodwill
I am tempted to speculate, as some newspapers in this country did, about EU regulations on bendy bananas, but much of that was wide of the mark. Bananas are exported in their green state and turn yellow as they approach the market. If one keeps them for too long, they turn brown. As part of our policy on minimising food waste, if anyone would like Mrs Goodwill’s recipe for banana bread, I would be more than happy to provide it. There are regulations in place to ensure that consumers are not sold produce that is below the standard. The shape of a banana has little relevance to the eating quality, except where some diseases of bananas cause abnormal curvature. I did my banana homework before we started.
This legislation is technical in nature and limited in scope. We are upholding standards and maintaining processes. This instruments make appropriate corrections to ensure that the standards and processes continue to operate in a UK context. Where changes are required, we have endeavoured to ensure that they will have limited impact on businesses and other stakeholders. We have consulted extensively with the devolved Administrations on the instruments to ensure that the legislation on the common organisation of agricultural markets continues to work, while respecting the devolution agreements.
Two of the instruments under debate—the draft Market Measures (Marketing Standards) (Amendment) (EU Exit) Regulations 2019 and the draft Market Measures Payment Schemes (Amendment) (EU Exit) Regulations 2019—apply across the UK and operate in areas of devolved competence, with powers being transferred to the devolved Ministers. In many cases, the Secretary of State is able to act on behalf of the devolved Administrations, should they give their consent.
However, in some circumstances, that does not apply to Wales. Due to certain provisions specific to the Welsh devolution settlement, allowing the Secretary of State to act on behalf of Wales in certain instances would have implications for Wales’ devolved competences. The Welsh Government have carefully considered whether the Secretary of State should be able to act on their behalf in respect of each of the functions concerned, and the drafting of the instruments reflects the outcome of that consideration.
The draft Market Measures (Miscellaneous Provisions) (Amendment) (EU Exit) Regulations 2019 amend a suite of domestic statutory instruments and have the same territorial application as the regulations they amend.
The draft instruments concern the common organisation of agricultural markets, more commonly referred to as the CMO. The CMO sits in pillar 1 of the common agricultural policy alongside direct payments, and was set up as a means of meeting the objectives of the CAP—in particular, to stabilise markets, ensure a fair standard of living for agricultural producers and increase agricultural productivity. Over time, it has broadened out to provide a toolkit that enables the EU to manage market volatility, to incentivise collaboration between, and the competitiveness of, agricultural producers and to facilitate trade.
The three draft instruments relate to the UK’s marketing standards regime, some payment schemes operated under CMO rules and miscellaneous amendments that provide for the enforcement of marketing standards and scheme rules. The draft Market Measures (Marketing Standards) (Amendment) (EU Exit) Regulations 2019 amend a suite of EU regulations that lay down marketing standards and related rules for bananas; beef and veal; carcase classification; fruit and vegetables; hops; milk, milk products and spreadable fats; and pigmeat. Marketing standards, as enforced under the CMO, are designed to ensure a stable market for agricultural goods by enforcing even standards for certain agricultural goods, preventing the market from being flooded with cheaper, substandard goods. I hasten to add that that does not prevent the marketing of wonky vegetables, the sale of which I applaud as a way of reducing food waste.
However, I draw one point to the attention of the Committee. It has come to my attention that a small number of provisions in the marketing standards regulations will require minor amendments, as a result of changes made by the EU to regulation (EU) No. 543/2011, which relates to marketing standards for fresh fruit and vegetables. The changes were published in the Official Journal last week and are due to come into force before exit day. We will make a new statutory instrument to amend the draft instrument to reflect the changes and both instruments will be made together. This will ensure that our regulations link correctly to retained EU law as it is on exit day. I stress that that is not due to a mistake on our part; the EU has made changes that we need to catch up with.
The marketing standards regulations aim to minimise disruption to the flow of goods while preserving standards, and to make marketing standards legislation appropriate to the domestic context of the United Kingdom after EU exit. The amendments in the draft instrument are designed to be as minimal as is practicable in order to prevent wastage and reduce the burden on producers, but as robust as required to ensure that UK consumers can be confident that product information is transparent and accurate.
The draft Market Measures (Miscellaneous Provisions) (Amendment) (EU Exit) Regulations 2019 amend a suite of domestic statutory instruments that provide for the enforcement of EU marketing standards in beef and veal labelling in England; carcase classification and price reporting in England; the quality of green bananas in England and Wales, as we have touched on; olive oil marketing standards in the UK; marketing of fresh horticultural produce in England, with some general provisions for the whole of the UK; certification of hops in the UK; milk price reporting in England and Northern Ireland; and the school milk scheme in England and Northern Ireland.
As far as is possible, existing requirements have been maintained. Where necessary, changes have been made to correct deficiencies arising as a result of the transfer of EU legislation into domestic law. For example, requirements to report to the EU or to allow a representative of the European Commission to attend inspections have been removed or replaced, as appropriate, with domestic equivalents. Criminal offences relating to the import and export of fresh horticulture and hops have been amended to reflect that the EU will become a third country on our exit.
The draft Market Measures Payment Schemes (Amendment) (EU Exit) Regulations 2019 amend EU regulations that lay down detailed rules for rice processing; information provision and promotion measures; and public intervention and aid for private storage.
The draft statutory instruments make appropriate amendments to existing EU legislation to ensure that the legislation governing the CMO and agri-promotions can operate effectively after EU exit. That includes making technical changes to remove or replace references to EU institutions, as well as omitting certain provisions that will be inoperable once the UK has left the EU.
Luke Graham (Ochil and South Perthshire) (Con)
My right hon. Friend is talking about several measures that will affect different parts of the United Kingdom. Will he confirm now or later in writing how the measures will overlap with the overall UK framework? Even though certain certifications and marketing standards may be devolved, we want to ensure consistency for consumers, so that they can be confident of getting the same quality of product, whether in Scotland, Wales, England or Northern Ireland.
Mr Goodwill
I reassure my hon. Friend that these measures—I am reluctant to describe them as changes, because nothing is really changing, other than the UK becoming the competent authority, rather than the EU—will have no impact on the devolution settlement; any measures that are devolved at the moment will continue to be devolved. There is no threat to that situation. In fact, we wish to build on our excellent devolution process. Only today, I met the devolved Administrations, with Fergus Ewing representing the Scottish Government.
Mr Jayawardena
I thank my right hon. Friend for giving way again. I am sure he will correct me if I am wrong. As well as giving us his wife’s banana bread recipe, which I am sure is excellent, will he inform us when the Department might review the application of the draft instruments? As he said, no changes are proposed today, but it might be right to make changes in the future.
Mr Goodwill
My hon. Friend gets to the absolute crux of why people voted to leave the European Union. With the freedoms given to us, we will be able to review these measures in the future. Indeed, the Agriculture Bill, when it becomes an Act, will give us further powers to modify and innovate across a variety of areas to ensure that we have policies tailor-made for UK situations, rather than the often one-size-fits-all policies on the EU statute book.
Mr Goodwill
The first good step will be to get the withdrawal agreement across the line. Indeed, I encourage all Committee members not to miss their third opportunity—they have had two already—to ensure that we deliver on the result of the referendum.
An example of an omission from the current regulations is the requirement to notify the EU; there seems little utility in mandating the Secretary of State to tell himself what he already knows. To pre-empt a question that I am sure right hon. and hon. Members will wish to ask: yes, the draft instruments will be needed if we agree a deal with the EU, as well as in a no-deal situation. They make operability amendments that will be necessary for retained EU law to function effectively and to maintain the integrity of our statute book, either at the end of an implementation period or sooner, if we leave the EU without a deal. If Opposition Members are worried about the damaging effect of no deal outlined by organisations such as the National Farmers Union, the remedy is to vote for the deal. I know that some Opposition Members have already shown exemplary wisdom in that regard.
The draft instruments make necessary changes to ensure that there will be an operable legal framework for marketing standards; that those marketing standards can be enforced; and that certain CMO payment schemes operate once we have left the European Union. The changes uphold our standards and maintain continuity for businesses and stakeholders.
Mr Goodwill
I thank hon. Members for their contributions. What will hopefully be clear is how producers and consumers are well served by passing the instruments, which will make operable retained EU law and domestic legislation on the organisation of agriculture markets to protect standards and our vital farming sector.
The draft Market Measures (Marketing Standards) (Amendment) (EU Exit) Regulations 2019 make operability changes to a suite of EU regulations laying down marketing standards and related rules for the seven areas: bananas, beef and veal, carcase classification, fruit and vegetables, hops, milk, milk products and spreadable fats, and pigmeat.
The draft Market Measures (Miscellaneous Provisions) (Amendment) (EU Exit) Regulations 2019 make the appropriate amendments to ensure operability for a number of domestic statutory instruments that provide for enforcement of EU rules for marketing standards for fresh horticultural produce, beef and veal labelling, carcase classification, green bananas, olive oil, and hops, as well as for enforcement of the rules of the school milk scheme and for reporting prices of milk and milk products.
The draft Market Measures Payment Schemes (Amendment) (EU Exit) Regulations 2019 make appropriate amendments to EU regulations laying down detailed rules for the three areas of public intervention and aid for private storage, measures to promote agricultural products, and conversion rates for rice. The amendments will ensure that the legislation can operate in a domestic context.
A number of points were raised during the debate, which I will refer to briefly where they are relevant to the measures. The hon. Member for Ipswich seems to still be fighting the last referendum campaign. Although leaving with no deal would deliver for the 52% who voted to leave, I believe that the deal that the Prime Minister has produced is a deal that delivers for everybody and that we should all get behind. He mentioned that it was technical in nature, but the changes are simple; they merely take account of the fact that we will be leaving the European Union. Indeed, when we have left the European Union, we will be able to change things if we want, as the right hon. Member for Don Valley said, because we will be an independent nation. It sounds as if the hon. Member for Ipswich would like to stay in the European Union and not be given the freedoms that the British people voted for.
If we choose to align with EU standards, for example on carcase classification, that will be our choice. Indeed, companies in the UK are well used to exporting to markets around the world and can meet the specifications required in a whole range of countries, so there is no reason why we cannot make changes ourselves, should we wish. I repeat, however, that the amendments do not make changes to the regulation.
The hon. Member for Ipswich mentioned consultation. We had some consultation. We carried out targeted stakeholder engagement on the instruments relating to the CMO in November 2018, engaging stakeholders with a particular interest in the areas covered by the instruments. The stakeholders did not raise any significant concerns, and responses were mostly seeking to clarify issues of policy. We acknowledge the responses from stakeholders and thank them for their comments. Some stakeholders asked DEFRA to consider longer transitional periods for proposed labelling changes. We took their comments on board and provided for longer transitional periods.
The right hon. Member for Don Valley said that the measures before us ensure that we do not fall off a cliff edge. The measures will be relevant whether we have a deal or a no-deal situation and will ensure that business can carry on as usual. The hon. Member for Ipswich was talking about how everything that comes out of Europe seems to be fantastic and how we sign up to everything, but I respectfully remind him that the United Kingdom was held back in a number of areas when we moved on animal welfare. We banned dry sow stalls and veal crates and we took a number of measures on battery hens. We legislated ourselves, but we found that our markets were eroded by others not moving in the same direction. We have been held back in some ways by the EU.
To those who say that the Government will not maintain standards, I say that agricultural food standards in England are already very high, as they are consumer and retailer-led. They often go over and above the current standards set by EU legislation. For example, in the hops sector, brewers have the ability to set the standards they require from their suppliers, and those are often above the minimum EU standards. There is no desire for standards to be lowered for domestic or imported products.
Caroline Flint
The Minister makes an important point about standards. I absolutely agree that in many respects, we have been ahead of the European Union. We could go further, particularly in the transport of livestock, which is another area that could be improved. I take this opportunity to say that my hon. Friends on the Front Bench have confirmed that we have not objected to as many SIs as I perceived. We have agreed to hundreds and hundreds of SIs and changes. For the most part, Labour has agreed with the transposition of the regulations, and I wanted to correct the record on that.
Mr Goodwill
I thank the right hon. Lady for those comments. In many ways, the Labour party has not stood in the way of such measures as the ones we are considering. However, the Labour party has stood in the way of the big one: the Brexit deal. Many Labour Members have voted against the deal, meaning that we cannot make progress in moving to the situation where we can make those changes, for which the regulations are the preamble.
The hon. Member for Argyll and Bute raised the sensible and reasonable point of what happens if we make mistakes. Well, we will fix them. As the changes are small and technical, it is unlikely there will be any major mistakes. As I have said, we have already picked up something where the EU had moved and the numbering of particular articles in the schedule had changed because a few were added at the top. He is absolutely right that under a no-deal situation, the tariff regime would be very difficult for the sheep markets. Tariffs in the region of 40% would be difficult for sheep farmers not only in Scotland, but elsewhere in the United Kingdom, given that we export 30% of our lamb. In particular, the carcases that tend to go on to the EU market are the small hill carcases, such as those produced in his constituency. Once again, the message is clear: vote for the deal so that we will not have a no-deal Brexit and so that we can negotiate a long-term farming agreement.
The hon. Gentleman mentioned the plight of hill farmers. I am not a hill farmer—we grow grain on some wonderful lowland areas—but I know from my constituency how tough it is being a hill farmer. The measures in the Agriculture Bill seek to switch aid from direct payments for production or for just being a farmer to public goods. I would argue that the public goods that hill farmers are delivering in terms of the wildlife and the environment—the walls, the hedges, and all those other features—are just the sort of things that Scottish farmers would want to grasp with both hands. It is disappointing that the Scottish Administration are perhaps not taking the same line as we are. When British taxpayers’ money goes into agriculture in the future, we will no longer be able to rely on French farmers burning tyres in the road and marching up the Champs-Élysées to protect farmers’ support. Under the Agriculture Bill regime, if Governments were to suggest cutting agricultural support, people would be writing to their MPs asking about the hedgehogs, the badgers, the bumble bees, the hedges and all those other features—those public goods—that the money will support. I hope that Scotland will be late arrivals at the Agriculture Bill ball, and join in on what I believe will be revolutionary changes to how we support agriculture, in a way that the general public as well as farmers will welcome.
The technical and operability amendments made in the regulations will maintain the effectiveness and continuity of the CMO legislation, which would otherwise be inoperable following our exit from the European Union. They will ensure that we can continue to operate schemes under the regulations for our vital farming sector, and maintain the standards they set, which support confidence in our farmed goods on domestic and international markets. I commend the regulations to the Committee.
Question put and agreed to.
Resolved,
That the Committee has considered the draft Market Measures (Marketing Standards) (Amendment) (EU Exit) Regulations 2019.
Draft Market Measures Payment Schemes (Amendment) (EU Exit) Regulations 2019
Resolved,
That the Committee has considered the draft Market Measures Payment Schemes (Amendment) (EU Exit) Regulations 2019.— (Mr Goodwill.)
Draft Market Measures (Miscellaneous Provisions) (Amendment) (EU Exit) Regulations 2019
Resolved,
That the Committee has considered the draft Market Measures (Miscellaneous Provisions) (Amendment) (EU Exit) Regulations 2019.—(Mr Goodwill.)