Food and Farming (Amendment) (EU Exit) Regulations 2019

Baroness Byford Excerpts

Monday 25th March 2019 Grand Committee

[Baroness Vere of Norbiton (Con)]

My Lords, these regulations group elements of four policy regimes: spirit drinks; wines; genetically modified organisms; and agricultural direct payments. The purpose of this statutory instrument is to make purely technical or operability corrections ensuring that these regimes continue to function as intended. These corrections deal with removing or amending references, converting EU procedures to UK procedures and transferring EU functions to the UK. The four policy regimes are dealt with together in a single instrument for the convenience of both Houses. I will cover each in turn.

First, this instrument makes operable the regulation and protection of, and methodology for analysis of, spirit drinks once we exit the EU. The amendments specify protection for the UK’s geographical indications, and this instrument will make the necessary operability amendments to ensure ongoing protection of the US spirit drinks Bourbon whiskey and Tennessee whiskey, following the signing of the UK-US spirit drinks agreement in January. This instrument will also prevent EU 27 spirit drink geographical indications being automatically recognised as protected in the UK after leaving the EU.

With respect to wines, this instrument will amend EU retained law to make it operable from the day of exit. The amendments will allow us to continue to apply or enforce provisions relating to detailed wine-making practices, including the blending and analysis of wine. The absence of these amendments would undermine consumer confidence in wines, damage our trade in and production of wines and impact on the significant contribution the sector makes to the UK economy.

The amendments for spirits, together with those for wine, are part of establishing geographical indication schemes in the UK. These amendments are a component of the wider suite of Defra legislation on geographical indications, including the Environment, Food and Rural Affairs (Amendment) (EU Exit) Regulations 2019, debated on 13 March and approved on 19 March, and the Food and Drink, Veterinary Medicines and Residues (Amendment etc.) (EU Exit) Regulations 2019, debated on 20 March and approved on 21 March.

On genetically modified organisms, the SI makes purely technical changes to keep the retained EU legislation operable on exit from the EU. The amendments will allow us to continue to regulate and enforce the applications process for consent to market genetically modified organisms in the UK. It will also allow us to continue to regulate the export of genetically modified organisms, both those which originate in the UK and those which are merely passing through the UK. It also seeks to correct minor errors in exit statutory instruments which have already been laid.

Finally, on direct payments, this instrument will make minor technical amendments to roll over currently existing provisions in retained EU law relating to: environmentally sensitive permanent grassland; buffer strips, field margins and strips of eligible hectares along forest edges without production; the ratio of permanent grassland; and criteria for ecological focus areas. No policy change is made by these corrections. They address drafting errors in two of Defra’s EU exit statutory instruments relating to direct payments. I apologise to noble Lords for this oversight. The earlier instruments were laid at a time when Defra was preparing a large amount of EU exit secondary legislation, but Defra has sought to rectify the errors at the earliest opportunity.

In seeking only to allow the policy regimes to continue to function as intended, this instrument generates no new enforcement bodies and there is no significant impact expected on the existing enforcement regime.

It is worth noting that this statutory instrument was originally laid under the negative procedure. However, the Lords Secondary Legislation Scrutiny Committee recommended that the regulations be made under the affirmative procedure. The suite of legislation on geographical indications under the EU withdrawal Act confers new duties on the Secretary of State. This is in consequence of the Secretary of State taking on functions from the European Commission as a result of withdrawal. However, it is not this instrument that confers new legislative duties; for example, for spirits drinks it was the Environment, Food and Rural Affairs (Amendment) (EU Exit) Regulations 2019, which we debated earlier this month. This instrument confers only administrative functions to the Secretary of State from the European Commission. The Minister at the time the Committee made the recommendation to change this SI to an affirmative instrument, George Eustice, agreed that this instrument should be made subject to the affirmative procedure, and it is a pleasure for me to speak to it before your Lordships today.

Defra has consulted with the devolved Administrations on the amendments contained in this instrument, and they have been consented to. For genetically modified organisms, decisions to release or market GMOs are a devolved matter in Wales and Scotland and a transferred matter in Northern Ireland. However, there are no GM products in the approval pipeline for release in the UK and none is expected in the foreseeable future.

We have engaged extensively and listened to stakeholders’ views on all these policy areas. We have consulted on the issue of geographical indications, which cover both wines and spirit drinks, and continue to stay close to our key stakeholders in those sectors. No consultation was undertaken for direct payments, because the changes are entirely technical and intended to ensure current provisions continue to be available after EU exit.

On GMOs, a technical notice and, more recently, further guidance was published. The changes are entirely technical and intended to ensure currently available provisions continue to be available after exit. This SI makes minor corrections to earlier GMO-specific SIs, on which Defra engaged with parties with an interest in GMOs.

An impact assessment has not been prepared for this instrument, as its purpose is to maintain existing regulatory standards and there is expected to be minimal impact on business. I beg to move.

[Baroness Byford (Con)]

My Lords, I thank my noble friend for introducing these amendments, which are technical and will allow a smooth transition when we leave the EU. As she said, they are technical changes that affect certain aspects. I have a couple of things to raise, and I should declare an interest since our farm receives environmental payments—she referred to grassland, buffers and ecological areas that are included in this SI for which we receive payments.

My question concerns the fact that, as she referred to, the Select Committee selected this for the affirmative procedure. She said that this was not really necessary and that it was due to something that had happened earlier. Was that known before this SI was produced in the way it is? Otherwise, it seems unusual to have it included as an affirmative instrument, although I accept what she said.

I also want to ask her whether there will be changes to any other statutory instruments coming through. It is getting more and more confusing for those of us looking at them to look at something that happened a week or two ago and try to compare it with what is happening now. I hope she is able to tell me that this will be the last of this set of statutory instruments that we shall look at.

So my two questions are: why was it included in this SI if that decision had not been reached before? Will there be some consolidation of any further SIs coming through? That would make life much easier for all of us.

--- Later in debate ---

[Baroness Vere of Norbiton]

I thank all noble Lords for their contributions to what has turned out to be a short debate. I expected it to be fairly short, but some very valuable questions have been raised so I will be very pleased to answer as many as I can. If there is more that I can add then I will certainly write.

I turn first to the comments made by my noble friend Lady Byford. It is always a pleasure to have her in the Committee to make sure that we are doing things correctly, and she certainly does that. She referred to the issue of the Select Committee and the instrument being made affirmative. Without wishing to detract at all from the valuable work done by the Select Committee, it is the case that the functions being transferred across in this SI are administrative functions, not legislative. There was a potential slight misunderstanding about exactly which powers were coming across. Other legislative functions have come across in other SIs but not in this one. However, we took the decision that this gives us as a Government the opportunity to explain the position, so we decided that we would accept the Select Committee’s decision to make it affirmative, although there was always the opportunity for us to have gone back and explain that. We felt, “Why not make sure that everyone is completely happy?”, so we decided to stand in front of your Lordships today and explain that these are administrative functions, while those legislative functions came across in other SIs that were affirmative anyway and have already been discussed by the Committee.

My noble friend also asked whether there were further statutory instruments to come. There are a few but not as many as there were, so that is a bonus. Nearly all of them have now been scheduled for debate, so we have a good idea of what is left. Obviously, we are consolidating where possible to ensure that we do not have too many debates. It is vital to ensure that our legislation is up to date for exit day, whenever that comes. We can certainly say that we are in the end game now; we are at the end of the process and we should have everything in place very soon. As my noble friend will know, there are more coming tomorrow, so I hope she will join us then.

[Baroness Byford]

I thank the Minister for that. The difficulty is that sometimes some people are present in the debates, such as the one that we are having now, who have not had the advantage of hearing the earlier debates that we have had, which makes it quite difficult for all of us—myself included—to pick up on some of them. I am grateful for her clarification. I am well aware that we have quite a lot more to come, but my hope is that they will be complete in themselves so we do not have to go over ground that we have already covered, which I think has been the frustrating bit with some of these instruments.

[Baroness Vere of Norbiton]

I completely accept that comment. I recognise that this is sometimes very difficult because we are dealing with the same issues for different products in different SIs. Certainly, the instruments that will be under discussion tomorrow are much more wholesome and complete.

I turn to some of the comments from the noble Baroness, Lady Bakewell, who also made the point, which I will take on the chin, about the efficacy of debating all these separately. As I have said before, that issue is always to be balanced with the danger of having too many issues in one place; we all know of the famous BEIS SI that was over 500 pages long. I recognise that there is a balance to be struck, and both noble Baronesses have made some very good points.