Trade (Australia and New Zealand) Bill

Baroness Bakewell of Hardington Mandeville Excerpts
Baroness McIntosh of Pickering Portrait Baroness McIntosh of Pickering (Con)
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My Lords, I am delighted to follow the noble Lord, who moved so eloquently his amendment. I lend my strong support to his Amendment 3, which encapsulates a discussion that was held at Second Reading by a number of noble Lords around the Chamber and previous legislation that we debated a year or two ago. I warmly welcome my noble friend the Minister to his place and am glad he has the opportunity to present this Bill in Committee.

It was very clear that the Trade and Agriculture Commission should have a role, and that the timing and sequence of that role in relation to trade agreements, or in this case procurement agreements, is absolutely vital. I look forward to my noble friend’s response to Amendment 3 and the other amendments tabled by the noble Lord, Lord Lennie. I particularly associate myself with Amendment 3.

Amendment 7 in my name is a probing amendment. I draw the Committee’s attention to the Department for International Trade’s impact assessment for this free trade agreement, particularly page 32, to which the noble Lord, Lord Lennie, also referred. Having been in touch with the Wine and Spirit Trade Association, I accept that it will be a beneficiary of this agreement going forward, provided that a chapter is included after the association agreement. It harks back to when we joined the European Economic Community in 1973 and were told that we would get cheap booze. Here we go again; it seems to be a relic of that time.

What is stark about table 3 on page 32 is the figures on food. Agriculture, forestry and fishing will take a change of minus 0.35%, a tumble of £48 million over 2019 figures; and, furthermore, semi-processed foods will take a tumble of 1.16%, which is a £97 million fall in equivalent growth value added. What is the issue that this Government have with farmers’ role in producing food, particularly in increasing the level of self-sufficiency? We are hovering around the 60% mark. Given the fact that we have a war on our borders, it is absolutely vital that we look to improve our food self-sufficiency. This has been recognised by my right honourable friend the Prime Minister, who remarked at the time of the leadership contest hustings last summer, which seems an awfully long time ago:

“We know that farmers are concerned by some of the trade deals we have struck, including with Australia. A Rishi Sunak-led Government will make farmers a priority in all future trade deals … We will maintain the highest standards of animal welfare, environmental protection and food safety.”


The problem that I have with the procurement aspect of the Bill—and with the Procurement Bill itself and the trade agreement with Australia and New Zealand—is that it is completely asymmetrical on farming, forestry, agriculture and processed foods. As the noble Lord, Lord Lennie, suggested, this goes to the safeguards. Normally, we have infinite safeguards: they are not time-barred. The noble Lord referred to these being between 11 and 15 years in length. For what reason are these safeguards time-barred? This breaks with tradition in other trade agreements, procurement agreements, or whatever the Minister wants to call it. It has been incredibly difficult to table amendments, so I really feel quite pleased that I have an amendment that passed go on this.

The reason that I referred particularly to lamb and beef in proposed new subsection (1) in Amendment 7 is that they are the two sectors where our farmers stand to lose out. Also, for 18 years I represented an area next door to where these are the prime products, and I grew up in the even more upland area of Teesdale. I am concerned about these two products in particular, as well as the other £48 million that we are going to lose in this sector.

We were told at the time of the general election that our food standards in this country would be respected, and not lowered for imported food. For what reason are we seeking to reverse that commitment given in 2019? In the next group of amendments, we will talk about the concerns of the Food Standards Agency, which were flagged up in its annual report for 2021—but why should we accept products, particularly lamb and beef, that do not meet the production and food safety standards in this country, and why are we not having permanent safeguards instead of those that are time-barred? I have a further question before I get too carried away: why are the tariffs harmful to British farmers and favouring New Zealand and Australian farmers?

Baroness Bakewell of Hardington Mandeville Portrait Baroness Bakewell of Hardington Mandeville (LD)
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My Lords, I apologise for not being present during Second Reading. At that time, I was suffering from Covid and was confined to my home. Noble Lords will be pleased to hear that I am now recovered and testing negative.

Amendments 7, 9, 15 and 17 in this group deal with the impact on British farmers and the environment. I will speak to Amendments 15 and 17 in the name of my noble friend Lord Purvis of Tweed, to which I have added my name and which relate to the chapters on farming and the environment.

Trade (Australia and New Zealand) Bill

Baroness Bakewell of Hardington Mandeville Excerpts
Baroness Bakewell of Hardington Mandeville Portrait Baroness Bakewell of Hardington Mandeville (LD)
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My Lords, I wish to speak to Amendments 4 and 5, in the name of my noble friend Lord Purvis of Tweed, to which I have added my name. It is clear that the Government are extremely keen to foster trade deals with any number of non-EU countries. It is also clear that this could be very beneficial to our British farmers if they are able to export their excellent world-class produce to new markets—provided that they are not bogged down with unnecessary and exhaustive paperwork.

However, Australian and New Zealand exporters will in fact gain far more than our UK counterparts. The main tariff reductions are on the UK side. Trade with the UK is likely to be a very small proportion of Australia and New Zealand’s trade; they have other trading nations much closer to their shores. Their animal welfare standards are not as high as those in the UK, and there are no safeguards against Australian imports after 15 years—sugar after eight years, and dairy after six years. Even the previous Secretary of State admitted that the current deal sold UK farmers short.

Regarding tariff quotas, in year 1 Australia will access 35,000 tonnes of beef quota with no duty. This is an estimated 10% of the UK’s total import requirements. This will rise to 30% of total import requirements by year 10, which will be more than 12% of total UK production. It appears that the Government’s aim is to reduce the profitability and viability of our beef farmers, who produce some of the very best beef in the world.

Trade (Australia and New Zealand) Bill

Baroness Bakewell of Hardington Mandeville Excerpts
Lord Johnson of Lainston Portrait Lord Johnson of Lainston (Con)
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My Lords, it has been a pleasure to take my first Bill through your Lordships’ House. I thank noble Lords for the constructive approach that has been evident throughout the Bill’s passage. We have had robust discussions and debates on the Bill. Likewise, I have had the privilege in recent weeks of engaging with Peers outside the Chamber, and I have benefited from those conversations, which have been in-depth and valuable. The experience, diligence and practical knowledge of noble Lords have challenged and tested the strength of the Bill and its underlying trade deals. I am sure noble Lords will agree that this provides reassurance to the public on the quality of our democratic processes, our accountability and the constructive challenge function of your Lordships’ House. It remains for me only to give a few specific thanks to noble Lords and others before we complete our consideration of the Bill.

First, I thank the Opposition spokespersons, the noble Lords, Lord Lennie and Lord Purvis of Tweed, for the constructive way that they have continued to approach the scrutiny of the Bill—as well as the additional work outside in engaging with our various high commissioners, which I personally appreciated very much.

I pay tribute to my noble friend Lady McIntosh of Pickering for the valuable conversations that we have shared on this legislation and her continued championing of our important agricultural sector. I hope that she has been reassured throughout the Bill’s passage through this House of the Government’s commitment to maintaining our high food standards and safeguarding measures for this sector and UK farmers within both deals. It was due to the scrutiny of my noble friend Lady McIntosh and the noble Lord, Lord Kerr, that we identified the minor drafting error in Clause 2(1)(a), which has subsequently been corrected.

I thank my noble friend Lord Lansley, whose knowledge, frankly, makes my job all the easier as he makes the points in my speech before I get the chance to do so. It is absolutely right that I also thank the noble Baroness, Lady Hayter, and all the members of the IAC for their considered input.

This has been very much a team effort. Behind the scenes, the extraordinary Bill team have put in an unbelievable amount of effort. My thanks go to: James Copeland, Thomas Bingham, Donald Selmani, Jack Collins, Alex Garcia-Pineiro and Catherine Ajani. I also thank my private secretary Sehar Shaheryar and other officials who make up my private office, led by Simon Moore.

Finally, I thank the parliamentary staff, the doorkeepers and the clerks for their professionalism and continued support and to your Lordships’ House.

The Bill provides a power to give effect to our procurement commitments within these agreements, improving three areas of our existing procurement legislation in the UK. We will see benefits to our public services and companies trading in these partner countries—ultimately, unlocking billions in government contracts in a more secure way than ever before.

In conclusion, the Bill will achieve the essence of our post-Brexit vision of Britain. Some noble Lords have questioned the presence of the Government’s trade agenda during the Bill’s passage. In response I say: here it is. These deals guarantee a global interconnectedness of trade deals, with the United Kingdom at the very heart of these new routes, meaning new opportunities for our businesses and citizens. This will result in new markets for our goods and services and new ways to travel and share our cultures. To our friends, trading partners, clients, suppliers, brothers and cousins in Australia and New Zealand, I say, “Hold tight! The UK is coming.” I reiterate my thanks one final time and, with that, I beg to move.

Baroness Bakewell of Hardington Mandeville Portrait Baroness Bakewell of Hardington Mandeville (LD)
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My Lords, I apologise on behalf of my noble friend Lord Purvis, who is, unfortunately, unable to be here this afternoon. We thank the Minister for his comments, as well as his patience and expertise during the passage of this Bill. We thank the Bill team for their help and support, as well as the Labour Front Benches and Cross Benches. We also thank Elizabeth Plummer in the Liberal Democrat Whips’ Office, without whose help I do not think that my noble friend Lord Purvis and I would have been where we are today. We support the passage of the Bill and thank the Minister for his help.

Baroness McIntosh of Pickering Portrait Baroness McIntosh of Pickering (Con)
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My Lords, I congratulate my noble friend on steering his first Bill successfully through the House—my congratulations go too to the whole Bill team. I am grateful to him for the time he took at every stage to talk me through. He knows of my disappointment that the Scottish Government have withheld their consent, and that this is not the deal that the British farmers would have hoped for; but we live to fight another day and I look forward to future trade Bills coming through.