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

Baroness Bakewell of Hardington Mandeville Excerpts

Wednesday 13th March 2019 Grand Committee

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, I also thank the Minister for his introduction and for the time of his officials in the briefing. This SI was originally scheduled to be a negative instrument, but was upgraded to an affirmative instrument after Secondary Legislation Scrutiny Sub-Committee B had completed its sifting process. This was a wise decision, as some significant changes are covered in this SI—not least on natural mineral waters, but also on geographical indications and GMOs. It is all about environmental protection, food and intellectual property. The last, in particular, will have significant impacts in some areas of the UK.

As the Minister said, this is a transfer of functions and there will be mutual recognition between the UK and the EU from day one. However, unless I have misunderstood it, there will be a six-month transition period during which imported EU mineral waters will not be able to be labelled “mineral water” and recognised for sale in the UK. As the Minister said, these EU mineral waters represent approximately 30% of UK market sales. There will therefore be a gap in the market, which it is unlikely our own UK mineral water bottlers will be able to fill. Our own mineral waters are very specific to geographic areas—Highland Spring, Buxton and Glastonbury Chalice Well being three. My husband comes from Derbyshire, so my preference is for Buxton when I can get it. If the EU’s Volvic, Evian and Pellegrino mineral waters are not available, the UK consumer may find they are unable to buy an alternative as demand will outstrip the supply of our production.

At the end of the six-month transition period, an EU-based mineral water company can reapply for permission to import into the UK. It will be up to the Secretary of State to either withdraw or grant such permission. If I have understood it correctly, if any EU state recognises our UK mineral water, the Secretary of State cannot withdraw an EU water company’s permission. It will be up to his or her discretion. Is it likely that many EU mineral water companies may not bother to reapply? On the upside, if one of the EU countries recognises a UK-based mineral water, all 27 will have to do the same—so markets will be opened up. Likewise, if one of the devolved Administrations permits an EU mineral water company to import its products, the other three will also permit it to be imported.

I turn now to the question of geographical indication, or GIs, about which we have had some discussion. This is a wide classification including Scotch whisky, Irish whiskey, Cornish pasties, Wensleydale cheese and Camel Valley wines. These are extremely important to the economy of the areas that produce this fine food and drink. Paragraph 7.3 of the Explanatory Memorandum indicates that there will be no change to description and labelling. I look to the Minister to give reassurance that the status of iconic GIs will not be diminished but protected after we have left the EU.

The labelling of local produce is extremely important, especially to the farming community, where lamb and beef in particular command a high price if they come from certain breeds and areas of the country, such as salt-marsh Welsh lamb.

Food labelling is of particular interest to me as someone who reads all the labels of foods that contain more than one product. As a lifelong coeliac, I look out for wheat-based and gluten-containing products in everything. The current labelling system, whereby allergens are highlighted in bold, is extremely useful, as the allergens leap out at you and you do not have to read all the ingredients in depth. Often, there is a gluten-free, crossed-grain symbol on the front of the product; thus I can safely buy sausages from two well-known food retailers without having to refer to the small print on the back.

I am not alone in meticulously reading ingredient labels. I therefore ask the Minister to give his reassurance that there will be no watering down of the regulations once exit day has passed. As we all know, poor labelling has become a matter of life or death for some. A review of labelling will need to ensure more stringent regulations, not a watering down of existing ones.

[Baroness Jones of Whitchurch (Lab)]

My Lords, I thank the Minister for his introduction this afternoon and for the courtesy of meeting us beforehand. This SI covers a wide range of issues and has all the hallmarks of a hurried amalgamation of outstanding issues which have to be cleared before Brexit day. I hope that stakeholders and businesses with an interest in the content can find the relevant changes buried away in this SI, with its rather unenlightening title concerning intellectual property, which seems to cover a lot of sins that are not immediately obvious.

I also make the point that the amendments to Commission decision 2009/821/EC concerning border inspection posts, and those referring to health certificates, should have been dealt with as part of the earlier SI on the import and trade in animals and animal products. I am not sure why they have been tagged on here in this way.

Incidentally, on this subject, I am grateful to the Minister for writing a follow-up letter on the questions raised by my noble friend Lord Knight and others when we dealt with that more substantial SI a couple of weeks ago. I am aware the Government have today published technical information on imports between Northern Ireland and the Republic. However, in the case of animals crossing the border between Northern Ireland and the Republic—in other words, those being exported—the letter confirmed a rather alarming fact. Without a deal, all animals seeking to enter the EU—the Republic of Ireland—would have to do so via an EU border inspection post, with locations that are yet to be decided.

The Minister’s letter also confirmed that, while the Government continue to engage constructively with Ireland—as has been a common theme in debates on other SIs—there are in fact restrictions on the UK having bilateral discussions with EU member states. There is therefore only a limited amount of progress that can be made between the UK and the Republic of Ireland at this point. I do not want to dwell too much on this today as it is not the main subject of the SI, but it must be extremely unsatisfactory for farmers in Northern Ireland, who will face extreme restrictions on exporting to the south. I hope the Minister can provide reassurance to those farmers that urgent steps are being taken to make sure that the border inspection posts and all other means to ease exporting are put in place as soon as possible.

As the noble Baroness, Lady McIntosh, said, the SI before us was drawn to the special attention of the House by scrutiny Sub-Committee B. I agree with her: this raises important issues of public policy, particularly as it affects consumers’ rights and choice. I had not picked up the issue of chocolate but, now she has raised it, I too would like to know whether the price and availability of cocoa and chocolate will be affected—I certainly have great interest in the Minister’s answer.

As has been said, the SI sets out new regulations for accrediting natural mineral water. As the Explanatory Memorandum sets out, the amendments will maintain the existing recognition of mineral waters from the EU, Iceland and Norway, which would ensure market stability, continued trade and consumer choice. Given that we export and import mineral water to and from the EU, this is obviously a sensible provision, but the SI also seems to contain an open threat which I have not seen before in SIs dealing with traded goods. It says that if the Secretary of State finds that there is at least one UK mineral water that is not being recognised in any member state in the EU, then all accreditation for all EU mineral waters in the UK will cease, effectively forthwith. The effect of this would be that all EU mineral waters, including some very big brands that have been referred to, would not be able to be sold in the UK as natural mineral water. Is this negotiating tactic being adopted more widely? Is this the way we are going to do our future trade talks with the EU? Have the consequences been considered and discussed with UK mineral water exporters? I understand that they do not export as much as we import, but they would no doubt find that all their export opportunities to the EU would be cut off if we were to operate such a tit-for-tat approach. Is this a tactic with which they agree?

Has any consideration been given to the impact that this would have on consumer choice? We might all say that we should not import water, particularly not in plastic bottles, from the EU or anywhere else—the Minister has said before that London tap is a very fine brand and we should all drink that—but there is an issue about consumer choice. When we ask consumers, they all have their very strong preferences and preferred brands and it is important that we are clear about the consequences. Also, he said that this is a devolved issue. In fact, this provision is an England-only provision, so could we find that, for example, Evian water was available in Scotland and Wales but not in England? I think that he probably has an answer, but it is important that that is recorded so that we are clear on the legal position.

I turn to the protection of geographical indications of spirit drinks. The regulations transfer authority for registering geographical indication from the EU to the Secretary of State, as the Minister said. I think I am right in saying that there has been some sensitivity around these designations in the EU in the past. Certainly, the EU has been seen to be operating the rules in quite a stringent way, so it is not easy to get a geographical indication. That may be a good thing, but what type of objections to GI status would we be considering under the new regime? Will they be similarly stringent, in the way that the EU currently operates, or do we envisage relaxing the rules in some way? If we had different rules in the UK from those that would continue to be operated in the EU, could it have an effect on the export market of our drinks producers? If we were more relaxed about it and yet wanted to export Scotch whisky, could the EU say that, because we have not abided by the EU standards of GIs, we could no longer export to the EU?

There are obvious advantages to expanding our GIs, as the noble Baroness, Lady Bakewell, said—to celebrate regional and local provenance—and we all understand how advantageous that would be in many ways. What we do not want to do is to cut off our nose to spite our face and find that our exports are damaged in some way.