Organic Production and Control (Amendment) (EU Exit) Regulations 2019

Baroness Byford Excerpts

Wednesday 13th March 2019 Grand Committee

[Baroness Vere of Norbiton (Con)]

My Lords, these instruments correct technical deficiencies in legislation relating to organic production to ensure operability on exit. The instruments introduce no new policy and preserve the current regime’s organic standards. The Government are strongly supportive of organic standards, many of which were developed in the UK and adopted by the EU. The UK has a world-recognised standard of food production and labelling which we wish to see maintained. We have grouped these instruments for discussion as they both relate to amendments to organic legislation.

Early indications from the sifting committees were that SIs laid as negative but with a connection to agriculture were being selected to be uplifted to affirmative. While the Organic Production and Control (Amendment) (EU Exit) Regulations 2019 were not specifically recommended for uplift by the sifting committees, we chose to voluntarily uplift this SI to reduce the risk of it running out of parliamentary time. The Organic Production (Control of Imports) (Amendment) (EU Exit) Regulations 2019 contain transfer of function provisions, and as such the affirmative procedure must apply.

These statutory instruments apply to the United Kingdom, and we have worked with the devolved Administrations on their development. The legislation amended by the Organic Production and Control (Amendment) (EU Exit) Regulations 2019 relates to devolved matters, and the devolved Administrations have consented to that SI. The Organic Production (Control of Imports) (Amendment) (EU Exit) Regulations 2019 are reserved. Officials have had very helpful discussions with their counterparts in the DAs, and we are working with them on all aspects of the organics regime to form an agreement on how we all work together going forward.

The Organic Production and Control (Amendment) (EU Exit) Regulations 2019 ensure that organic standards remain the same as now for organic operators within the UK by amending deficiencies in the retained EU legislation: for example, references to the UK as a member state. The certification and traceability of organic food and feed products will continue. This instrument sets out minor technical amendments and lays down a time-limited period during which the UK would not require additional border checks for organic products imported from the EU, the EEA and Switzerland.

The Organic Production (Control of Imports) (Amendment) (EU Exit) Regulations also amend deficiencies in the retained EU legislation but deal with reserved measures covering imports and trade in organic food, feed and vegetative propagating material or seeds for cultivation. The SI transfers powers from the Commission to the UK to recognise countries and control bodies that can operate for the purposes of export to the UK. It also sets out minor technical amendments and lays down a time limit for the recognition of organic products imported from the EU, the EEA and Switzerland.

The UK organics industry is currently regulated by EU law, which sets out standards for organic production. Regulations apply to the production of food, animal feed and livestock, including bees and farmed fish, and any food or feed products marketed as “organic”. They set out the requirements for organic production, processing, labelling and imports, as well as the inspection systems that must be in place to ensure the requirements are met. They stipulate that organic food must be inspected and certified within the scope of a tightly regulated framework and originate from businesses registered and approved by organic control bodies on the basis of a rigorous annual inspection. The regulations will now apply to imports at UK borders, rather than EU borders, and ensure the continued regulation and certification of organic products to the current standards applicable within the UK, and equivalent standards where these have been agreed with third countries.

In addition, to ensure we can maintain the status quo and allow UK organic importers to continue to access their goods and ingredients from Europe as now, we have added provisions which permit the UK, for a time-limited period until 31 December 2020, to recognise the EU, the EEA states and Switzerland as having an equivalent organic regulatory regime to the UK. During this period, the UK will also exempt the need for additional checks or paperwork for organic goods originating from these areas. This exemption does not apply to goods that are simply transiting through these territories. This will ensure the status quo remains immediately after exit.

These measures remain essential to ensure UK organic businesses can maintain their organic certification and thrive in this growing sector. These instruments will ensure operability and that the strict standards in place for organic production are maintained when we leave the EU.

Officials have engaged regularly with the United Kingdom organic certifiers group. Our decision to continue to recognise the EU, the EEA and Switzerland for a time-limited period has been welcomed by the group as providing certainty on imports for the immediate future. We continue to work closely with it on this and on the future implementation of the UK regulations. I beg to move.

[Baroness Byford (Con)]

My Lords, I thank my noble friend the Minister for introducing these two Motions. I am particularly pleased that there will be a smooth transfer into UK law. The organic sector is still considered a fairly small one, but a very important one. The UK sector brings in a good, healthy amount of money—£2.2 billion to the UK economy and exports worth some £200 million —so the continuation of this trade is hugely important. At this stage I declare my own family farming interest, but we are not organic. We produce very healthy, good food, but it is not purely organic.

The Explanatory Memorandum talks about there being some 6,000 operators. Many of those are small businesses. Those classified as “small” employ “up to 50 people”. That is actually quite a lot of people in an organic movement. I wondered what proportion of the smaller ones have, say, 10 or five employees. What went through my mind was: although this is not supposed to have any financial burdens, if you are a smaller business it obviously has greater implications for you and the organisation of what you have to do. I would be grateful for a response on that one. I am glad that, on the control of imports, it is clearly laid out. I smiled slightly when we had a 20-page list of individual categories, which shows how complex and varied the whole organic sector is.

I welcome the production and control amendment, because I hope it will give great certainty to organic producers. It takes up to three years to turn to become organic from having been, perhaps, commercial farmers. We have often said that farming is a long-term investment —clearly it is—but on the organic side it is more demanding, because there are certain things you can and cannot do during your term of transfer.

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[Baroness Byford]

My Lords, returning to our discussions of these two instruments, I have just about covered everything that I wished to. I stressed the importance of the organic movement: we are now up to some 6,000 organic operators. That is worth a lot of money to farming and agriculture in the UK economy and, even more importantly, to the growth of our exports.

I am grateful for the smooth transition the Government have planned, and apart from my question on the definition of “small” and “very much smaller” businesses, I well realise that the Explanatory Memorandum indicates that there is no expected cost to them. However, I would be grateful to the Minister for clarification on that when she comes to respond.

[Baroness Miller of Chilthorne Domer (LD)]

My Lords, we warmly welcome these SIs, which are absolutely essential for the continuity of trade in organic products. We particularly welcome the fact that the Government recognise the voluntary uplift.

I declare an interest which makes me a little more passionate about the sector. I used to work for the Soil Association, albeit very many years ago. It was an interesting time to be there, as it was developing certification techniques with the EU. The sector has moved on a lot in the 25 years since.

By and large, the sector is very happy with these SIs, as are we; it did not have any concerns about them as they currently are. The sector is happy that they are being proposed and debated as a framework for certainty for organic producers and consumers.

As the noble Baroness, Lady Byford, said, it is a really vibrant market. The organics market in the UK is worth some £2.3 billion, of which 8% goes abroad, mainly to EU countries. The importance of the organic sector for the UK is that it has introduced consumers to many ideas about more sustainable agriculture. So apart from being worthy both in economic terms and as an employer, it has been a flagship, introducing ideas around sustainability, the importance of soil, issues around chemical inputs and so on. It really is a sector that deserves our full attention.

The Government have taken the necessary step to ensure the continuity of trade through this SI. If there is any concern, it is really that this is a period of certainty for only 21 months. As annexe 2 mentions, at the end of that period, things will become uncertain again. In farming, 21 months is as nothing. If you are trying to make investments or change your farming methods, or if you are in conversion, 21 months is an extremely short time. Both producers and UK certification bodies would like to move as soon as possible to a period of greater certainty; I hope that the department is working on that.

The question of how the regulation will be administered, controlled and, particularly, developed in the light of future changes and challenges is something that I hope the Minister can touch on in her reply. Undoubtedly, there will be challenges from developments within other organic regulations. It is a fairly fast-moving scene now, with different products being withdrawn or coming on to the market. Of course, if we start to enter into trade agreements with the US—heaven forbid, but it is possible—that will be a massive challenge. I hope the Minister can give us some certainty about how this is going to be developed.

For consumers, it is equally important that the certification is gold-plated. Organic products command a premium price, so it is essential that consumers, when paying that premium price, can absolutely rely on the origin processing methods of that produce. Otherwise, if any doubt enters that market, it would adversely affect all those who are engaged in genuine organic production.

It would be difficult this afternoon not to mention tariffs—I heard the Minister’s caveat, so I will mention it only briefly. That will be another massive pressure on producers. I gather that tariffs are about to be published or may have been published this afternoon. That is another huge pressure on producers that I hope we will have the chance to debate in your Lordships’ House in the very near future.