Rural Landlords and Land Letting: Reform

Baroness Jones of Whitchurch Excerpts

Thursday 21st January 2021 Grand Committee

[Baroness Jones of Whitchurch (Lab) [V]]

My Lords, I am grateful to the noble Baroness, Lady Rock, for tabling the debate and to all noble Lords who have spoken—far too many to mention individually. The overarching message has been the need to complete the unfinished business of agriculture tenancy reform. I pay tribute to the Tenant Farmers Association in particular for continuing to press this case.

As the Minister said during the passage of the Agriculture Bill, we all want a thriving tenanted sector and an environment in which all types of tenure run strong businesses. But to achieve this we need to address the critical issues that remain to be resolved. In particular, we need to ensure parity between tenants under the 1986 and the 1995 legislation to be able to object to a landlord’s refusal to enter a financial assistance scheme, along with new rights to invest in and improve the productivity of a holding.

I hope the Minister will agree that it is vital that all types of farming operation can participate in ELMS and make their contribution to environmentally sustainable agriculture. Could he also update the Committee on the Government’s plans to bring newer, younger entrants into the sector—those with the energy to drive forward the changes needed in this new era? A number of noble Lords raised that point.

Can the Minister update the Committee on progress since the Agriculture Bill received Royal Assent? Can he confirm that the regulations needed to implement the changes already agreed have now been laid? Are interim non-legislative measures being contemplated? When do the Government hope to bring forward a more substantial piece of primary legislation to address the outstanding issues?

EU Trade and Co-operation Agreement: Fishing Industry

Baroness Jones of Whitchurch Excerpts

Tuesday 19th January 2021 Lords Chamber

[Baroness Jones of Whitchurch (Lab) [V]]

My Lords, would the Minister like to join me in condemning Jacob Rees-Mogg’s flippant comment about fish being happier in the UK at a time when the fishers’ jobs are once more on the line? Does he understand the sense of betrayal they feel now that the reality of the Government’s broken promises becomes apparent? As they say, they are furious that the Government have tried to present the agreement as a major success, when it is patently clear that it is not. To begin to make amends, would the Minister like to clarify how much compensation in total will be made available to them? When will the fishers currently tied up in port or delayed in getting their fish to market start to receive the compensation they deserve for this shambles?

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Gardiner of Kimble) (Con) [V]]

My Lords, the Prime Minister announced that £23 million of funding is being made available to support the seafood sector. It will support those parts of the sector that have suffered genuine loss, through no fault of their own, as a result of disruption and delays of seafood exports to Europe. Details will follow shortly. I would say to the noble Baroness that I think there is an uplift in quota for UK fishers equivalent to 25% of the total value taken by EU vessels from UK waters over the five-and-a-half-year period, and 15% of that uplift is in the first year, so I do not identify with her view. What we want to do is work with all parties to ensure there is a smooth passage for this very important sector, and that is what we are doing, with very regular communication and meetings.

Environmental Land Management Schemes

Baroness Jones of Whitchurch Excerpts

Monday 14th December 2020 Lords Chamber

[Lord Gardiner of Kimble (Con)]

My Lords, as to any consideration in emergency cases of neonicotinoids, we are always guided by the best scientific assessment available. We will continue to do that and if there was an emergency application, it would be considered according to the science. Obviously, integrated pest management and all those things is another area where advancing the environment is absolutely key.

[Baroness Jones of Whitchurch (Lab)]

My Lords, given that the rollout of the ELMS pilots is happening later than we would wish, can the Minister confirm that any money not spent in one year will be rolled over to the next, so that farmers will not be disadvantaged by any delays?

[Lord Gardiner of Kimble (Con)]

My Lords, the whole purpose of the reductions in direct payments is that they will remain within the agricultural pot. I confirm that any surplus, if there was one, would be part of an agricultural budget.

Agricultural Transition Plan

Baroness Jones of Whitchurch Excerpts

Tuesday 8th December 2020 Lords Chamber

[Baroness Jones of Whitchurch (Lab)]

My Lords, I start by declaring two interests—at Rothamsted agricultural research institute and as a member of the South Downs National Park Authority, which is involved in several of the tests and trials.

To those of us who sat through the many hours of debate on the Agriculture Bill, the premise of this Statement is very familiar. As we have said many times, the shift from payments made on the basis of land ownership or tenure to payments for improved environmental performance and other social benefits is very welcome. I am sure that the new levels of detail contained in the transition plan are appreciated by those directly affected. Given that we voted to leave the EU in 2016, I am inclined to say, “What took you so long?”.

The Minister will be all too aware of the criticisms from the farming community that these details have been published only three weeks before they are due to take effect. Although the Minister talks about a seven-year transition, the confirmation of an immediate cut in basic farm payments from 1 January 2021 is a bitter pill to swallow, so I would like to probe this decision in more detail.

The transition paper spells out a minimum cut of 5% in subsidies next year, but the opportunity to reclaim these payments does not kick in until 2022. The Statement talks about wanting farmers to come with us on a journey, but this seems the wrong way to go about building their good will towards the huge upheaval necessary to deliver the transformation. Why do the Government feel that this payment gap is necessary? Have they done a risk assessment on the number of farmers who will be unable to operate with this reduced income? Will there be any financial compensation as part of the resilience package for those whose livelihoods are threatened? How will the £170 million saved by this cut in the first year be reallocated? What proportion will be available in 2022 for individual farmers to claim through the sustainable farming incentive?

Between 2021 and 2024, a total cut of 50% in basic farm payments is proposed. The NFU projects that livestock farmers will have lost between 60% and 80% of their income as a result of these reductions. Can the Minister assure us that, during this period, equivalent payments will be accessible to those who are willing to embrace the philosophy of the new schemes? When we will see the details of these schemes, so that farmers can be reassured that it can work for them on their farms? Is it intended for there to be a variety of projects of different lengths and complexities, so that all landowners and tenants will have the opportunity to make the positive difference to which we all aspire? Can the Minister assure us that any money that is not spent in year one, before the schemes are fully implemented, will be rolled over for payments the following year and will not go back to the Treasury?

I also want to ask about the impact of devolution on these measures. This is an England-only proposal, as agriculture is a devolved matter. As we know, the devolved nations are drawing up their own proposals to maintain more financial support for their farming communities. This could have a detrimental effect on the price of English livestock and arable produce compared with their Welsh and Scottish counterparts.

In his response in the Commons, George Eustice said:

“We will set up a joint group across the UK to do market surveillance, to ensure that there is not disturbance to the internal market and to share ideas on what works.”—[Official Report, Commons, 30/11/20; col. 42.]


Does the Minister agree that this sounds far too complacent for an issue that many people fear is an immediate and escalating danger to market access and price stability for English-grown food?

Finally, I want to ask about the ultimate goal of this transition. The Government’s press release states:

“These changes will be designed to ensure that by 2028, farmers in England can sustainably produce healthy food profitably without subsidy”.


Will this mark the end of subsidies for English farming? Is this the future of farming, predicated on a free market principle that you can compete in the market on price or you will not survive? What will this mean for UK farmers competing in a global market where the majority of their competitors, including obviously the EU, continue to receive farm subsidies? Also, what is the strategy for upland farmers, who will struggle ever to make a profit but who represent an iconic part of rural life? What are the implications for our food policy if the race to the bottom on costs becomes the driving principle?

I fear that the consequences of these proposals will be the end of small family farms and the rise of big corporations farming on a grand scale. They may indeed deliver some environmental benefits, but they also risk changing the nature of farming and the rural community for good in ways that I do not think we envisaged when we were debating the Agriculture Bill not so long ago. I hope that the Minister can persuade us that there is a plan for long-term financial support for those delivering environmental outcomes way beyond 2027 and that profit in the long term will not be the only measure of success. I look forward to his response.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, I welcome the Statement on the agriculture transition plan. There is much to be commended in the document, which sets out some of the detail that was absent from the Agriculture Bill. However, it is clear that many aspects of the plan are still in a state of flux and are being worked out as the implementation begins.

The document covers the period of 2021 to 2024, although the changeover from direct payments is scheduled to run for seven years. Farmers have been heavily dependent on area-based subsidies and it is welcome that these will reduce on a gradual basis. Next year, the reduction in basic payments of £30,000 will be 5%, followed by a further 15% reduction in 2022 and 2023, and 50% by 2024. For those with payments of over £150,000, the reduction will be 70% by 2024. This is a significant reduction and it is unclear whether it will be replaced by the three components of the Environmental Land Management scheme, especially since the landscape recovery component will not commence until 2024.

Can the Minister reassure us that farming incomes, which will become increasingly dependent on environmental measures, will be capable of sustaining both farmers and their families? I welcome the fact that all farmers will be eligible to apply for the first component of the sustainable farming incentive scheme. This is a step in the right direction in order to gradually introduce some farmers to the Government’s environmental agenda. However, there is no detail of how this will reward family farmers financially. The move by the Government to make all farms financially viable by the end of the transition period will need to be monitored very carefully, as some will see it as a leap of faith in the dark.

There is considerable mention of the environmental measures for which the Government will provide payments, including establishing animal health and welfare pathways. However, there is very little in the document that relates to food. Moving farmers from their previous way of working to a new environmental basis will be successful only if they are also able to produce food, whether in the form of animals or horticulture. Does the Minister agree that food production needs to be at the forefront of the reason for agriculture?

I welcome the scheme to help farmers who wish to exit from agriculture. Can the Minister give details of what the payments will be for this section of the scheme? Will it be funded from the £1.8 billion earmarked for agriculture over the next three years? Can he give reassurances that the land and farms thus released will be reserved for new entrants into farming? If the Government’s aim to transform our agriculture is to be realised, it will be vital that new entrants are given first preference for the farms of those who are exiting the sector.

The Government are clearly still at the development stage of their thinking on environmental land management reforms, and they promise to adapt the components as they go along. If some do not work, they will be altered and amended to improve them. This is to be welcomed but it does not provide certainty for farmers. Farming is not a short-term activity; it takes planning ahead and capital investment. The Government are looking to the private sector to help to finance some of their components, but the private sector is unlikely to come forward if it feels that the Government may be likely to move the goal- posts half way through the scheme. Can the Minister give reassurance that the three components of the Government’s agriculture policy will be fully tested before farmers are asked to commit their livelihoods to them?

The Government expect the environmental land management scheme to deliver the benefits of England’s peat strategy by paying for sustainable peatland management and restoration. Can the Minister provide the House with some more detail on exactly how and when that will be achieved?

I turn to the tree health pilot. It is vital that we protect our iconic trees from pests and diseases, which have decimated our hedgerows and forests in the past. There is evidence that huge numbers of saplings have been planted without any real sense of how they will be cared for and nurtured into adult trees. Can the Minister give reassurance that the thousands of trees that the Government quite rightly want to see planted will be the correct indigenous species to the area in which they are planted? As many as possible must survive to become the forests that the country will need to reach its zero-carbon targets.

I welcome this transition plan and look forward to more detail of the schemes to come, and to the Minister’s response.

Plant Health (Amendment etc.) (EU Exit) Regulations 2020

Baroness Jones of Whitchurch Excerpts

Monday 7th December 2020 Grand Committee

[Baroness Jones of Whitchurch (Lab)]

My Lords, I thank the Minister for his helpful introduction and for arranging a very useful briefing in advance of this debate. We know that he takes plant biosecurity extremely seriously and I pay tribute to his work on that issue. It is vital that we have effective biosecurity and phytosanitary controls in place when we end the transition on 31 December, so we do not object to the principles set out in these two SIs but, like other noble Lords, I have a few questions of clarification that it would be helpful for him to address.

First, paragraph 2.2 of the Explanatory Memorandum on the first SI talks about creating “operability amendments” through

“a ‘single market’ covering GB and the Crown Dependencies”,

but it then goes on to say that:

“Internal controls will also continue to apply to movement of goods”


within that GB single market. I am interested to know what these internal controls will consist of. Do they include, for example, checks on goods moving between England and Scotland? Paragraph 2.4 says that:

“Separate but parallel domestic legislation applies in Wales, Northern Ireland, and Scotland.”


Can I double check that those separate bits of legislation are exactly the same as the SI before us? There would otherwise be a challenge to businesses operating in that system.

Will the new plant passport reference codes referred to in paragraph 12.5 be the same throughout GB, whether the commodity originates in England, Wales or Scotland? Will all those plant passport numbers be compatible? Clearly there will be business implications for businesses moving plants passported within GB, so why has there not been an impact assessment of the regulations, given the inevitable business impact?

Also, in response to the Secondary Legislation Scrutiny Committee, Defra says:

“Between January 2021 and July 2021, physical inspections … will take place at the point of destination for imports from the EU.”


I wanted more information on this, although the noble Baroness, Lady Fookes, has I think already given me part of the answer. I wanted to know what “point of destination” really meant. My question was whether it referred to ports and airports or whether it had a wider meaning. I understand from her that it does indeed have that wider meaning and that it refers to the nurseries and so on where the plants are ultimately destined. If that is the case, it seems that there is a biosecurity issue about those plants travelling to that point of destination before they are checked. How will the inspection process account for that?

Following on in terms of inspections, the whole emphasis of this new package is that it will be done on a risk basis, but will there also be some scope for routine or random inspections? As I think that the noble Lords, Lord Walney and Lord Teverson, said, the system we set up will be known globally to all and sundry. If we are not careful we will be rather open to unscrupulous people if we operate a checking system for only high-risk products. We need to ensure that the system we introduce is robust and has some element of random checking within it. Perhaps the Minister could clarify that.

Paragraph 7.4 refers to separate legislative arrangements needed for Northern Ireland to align with the EU regulations for GB goods entering Northern Ireland. What are those separate legislative arrangements? Is it intended that we will debate them before the new year?

I will follow up on the example from the noble Lord, Lord Taylor, who said that Dutch bulbs could pass through GB without the need for paperwork, presumably because it is, in effect, EU to EU. Again, I did not know this, so I have learned something. Would this apply even if the plants travelling were in a higher category of risk, rather than being just Dutch bulbs?

The noble Baroness, Lady Altmann, referred to the Friends of the Earth submission—the issue about investigations taking place in third countries to determine whether or not equivalence with UK standards is being properly achieved. I echo that; it was also mentioned by the noble Lord, Lord Teverson. Regulation 30(7) removes that reference. Will investigations still take place in third countries? Where is that wording now that that reference, which seems to make perfect sense, has been taken out?

The second SI lists the animal and plant pests subject to quarantine. The Minister has made it clear to us that the list before us is a newly compiled list specific to GB. How does that compare with the EU list, given that EU countries are our nearest neighbours and therefore most likely to transfer existing or new pest threats? If the EU updates its list when it becomes aware of new risks, what will be the system for letting us know so that we can utilise its intelligence and update our risk-based plant controls to correspond? If there is an EU update, how does that impact on our list? How will our list be updated and how will we notify people if the list becomes a moveable feast and is constantly updated, as in many ways it makes sense to do?

Finally, Friends of the Earth says that a specific reference to an “examination procedure” for adopting amendments to regulations has been changed to applying a risk assessment. This seems a watering-down of the current arrangements and I would be grateful if the Minister could address that in his response.

Agriculture and Horticulture Development Board (Amendment) Order 2020

Baroness Jones of Whitchurch Excerpts

Monday 7th December 2020 Grand Committee

[Baroness Jones of Whitchurch (Lab)]

My Lords, I thank the Minister for his introduction to these SIs and the helpful briefing beforehand. I shall deal with the SI on the Agriculture and Horticulture Development Board first.

It obviously makes sense to have a streamlined and digitalised system for recording the movement of animals around the UK. This is crucial to manage and control any outbreak of disease or the spread of invasive pests. We know from painful experiences of the past the devastation that diseases such as foot and mouth can cause. That can be exacerbated by the movement of animals around the country. On the face of it, setting up a separate body in England to provide a multi-species traceability system will be a welcome and progressive move, and I note that it is broadly supported by the stakeholder organisations and devolved Administrations that were consulted. However, I just have a few questions about the status and operation of the livestock information service being established as a subsidiary of the AHDB.

The estimated cost of delivering the new service is £32 million over three years, and the net benefit over 10 years is estimated to be £30 million. However, as it is a limited company, does this mean that it will also be a for-profit company? Will it have directors, and to whom will they report? Farmers currently pay a levy to use the ADHB service. Will they have to pay for the new LIS service, and how do the anticipated charges for farmers compare to the current costs?

If the new service is intended to begin in spring next year, can I echo the question asked by the noble Baroness, Lady Bakewell, about the state of the new IT system? Is it already functioning and has it been properly stress-tested? Has it been tested to deal with the quantity of data to which she referred? Will the existing and the new systems run in parallel for a period of time, or is it proposed to have a D-day switch from one to the other? If there subsequently prove to be errors in the data collection, who will be responsible? There could be catastrophic results, if that was the case.

I also ask about the devolved implications. This is an England-only scheme. As the EM points out, Scotland and Northern Ireland intend to operate their own schemes, issuing identification numbers for animals that would allow them to be traced. Are they all proposing their own digital services and, if so, will they be compatible with the English version? Will the data generated be shared across the four devolved nations? Obviously, animals can and do move across the borders quite frequently. Is it proposed that the English data system will be able to identify and track the unique identification codes issued by the devolved nations?

Turning to the second SI on direct payments to farmers, the Minister will know that when we were dealing with the direct payments to farmers Bill earlier this year, I and others pressed him on why that Bill had a sunset clause which allowed for the extension of the basic farm payment scheme for one year only. The Minister’s response at the time was that the provisions of the Agriculture Bill would then kick in. But I said then that we would need some persuading that the transitional arrangements envisaged in the Agriculture Bill would be ready to be implemented on 1 January next year—and so it has come to pass.

Since the SI was published, we have seen the Government’s plan for sustainable farming announced this week. It confirms a cut of 5% in the direct payments next year, with further cuts thereafter, so when will we see a separate set of regulations confirming the cuts in these payments? Will it be necessary before the end of the year? Has Defra undertaken an impact assessment on the impact on different sectors and farm sizes? What financial support will be made available for farmers whose livelihoods are threatened by these proposals? These proposals are for England only, so has Defra done an assessment of the impact of different levels of farm subsidies being paid across the four devolved nations and the consequences for prices and the internal market of any divergence from a standard set of prices?

Finally, I will just say a few words on the WTO SI. Again, these have significant implications for relations with the devolved nations, as we discussed during consideration of the Agriculture Bill. At that time, there were concerns that the Bill gave the Secretary of State too much power to decide how farm support payments anywhere in the UK should be classified in relation to WTO rules and to set limits on those payments.

The EM says that these regulations were drafted in consultation with the devolved Administrations and that the majority of their comments were accommodated. Can the Minister say a little more about the nature of these discussions and what areas of dispute remain with the devolved Administrations? Paragraph 6 of the EM says that any devolved nation which wants to make changes to a scheme must notify the others. But what happens if another devolved nation is unhappy with these actions, and what would be the consequences if it followed that through?

I look forward to the Minister’s response to these questions.

Official Controls (Animals, Feed and Food, Plant Health etc.) (Amendment) (EU Exit) Regulations 2020

Baroness Jones of Whitchurch Excerpts

Wednesday 2nd December 2020 Grand Committee

[Baroness Jones of Whitchurch (Lab)]

My Lords, I thank the Minister for his introduction to these SIs and for the helpful briefing he organised beforehand. I accept that a number of technical and operational updates have been included, which makes sense. It is of course important that we have a functioning import system once the transition is over. However, I have a few questions that it would be helpful if the Minister could address.

First, as a minor point, I note that paragraph 7.1 of the EM for the first SI states that the intention is to continue delivery of robust import controls for all sanitary and phytosanitary imports while

“maintaining or improving biosecurity and welfare standards.”

Perhaps the Minister could explain what these improvements might be, as I could find no clear explanation of the Government’s intention in this regard.

The second SI has been substantially rewritten, based on the earlier SIs, as a result of the substantial amendments needed, and I agree that that approach makes sense and allows for easier scrutiny of the proposed text. There are obvious sanitary and phytosanitary risks from animal and animal product imports. Paragraph 2.2 of the EM refers to the need for

“appropriate safeguard actions to be taken in case of a reported non-compliance with official controls or disease outbreak in exporting countries.”

What do these actions include? Do they include banning imports from specific individual countries? Would we be able to target individual countries, or would there need to be an EU-wide ban for certain products if a particular section within the EU was involved?

Paragraph 7.2 explains that a new approach to managing biosecurity risk will be introduced from 1 April 2021. What arrangements are in place between 1 January and 1 April, and can we be confident that the new arrangements will be in place from 1 April? Paragraph 12.3 refers to importers of animals and animal products having to pre-notify the Government of imports from 1 January using the new technical system, IPAFFS, which replaces TRACES. Can the Minister confirm that IPAFFS has been fully tested, is a secure and reliable system and is able to deal with the volume of import trade which will come its way? Can he also clarify whether the devolved nations will be using IPAFFS as a pre-notification system so that all that information can be shared?

Turning to the third SI, on aquatic animal health et cetera, there are a number of technical changes to maintain control of aquatic animal diseases and to continue biosecurity standards which seem to make sense. However, all noble Baronesses have raised the issue, covered in the report of the Secondary Legislation Scrutiny Committee, of pet passports for the 300,000 pets moving across the border annually. As it points out, the SI allows pets travelling from the EU to the UK to continue to use the EU-issued pet passport. However, that does not yet mean that pets travelling the other way, from the UK to the EU, will have equivalent rights. When will we hear whether the EU has granted us part 1 listed status, which would allow this mutual benefit of travel both ways to continue? Is that part of the current Brexit negotiations, or a completely separate process? If part 1 listed status is denied by the EU, will we also review our attitude to the status of pets coming the other way, into the UK?

The Secondary Legislation Scrutiny Committee also asked about the impact of separate zoonotic and biosecurity disease requirements for GB and Northern Ireland. It was told that goods moving from GB to Northern Ireland would need export health certification and that a trader support service will be available to support businesses. This issue was raised by the noble Baroness, Lady McIntosh, who asked whether the trader support scheme was already up and functioning and, if not, when it will be. The EM goes on to say that there will be no significant impact on businesses. May I ask the Minister to reflect on that statement, given the cost and potential complexities of providing export health certification to businesses that will be exporting to both Northern Ireland and the EU?

Turning to the fourth SI, which deals with veterinary medicines and residues, there is clearly concern about the potential risks to human health and the environment, as well as to animal welfare—issues echoed by the noble Baronesses, Lady McIntosh, Lady Bennett and Lady Bakewell. For example, we have made considerable progress in the UK on cutting back on the use of antibiotics in animal husbandry. However, I read recently that over the same period, the US has doubled its use of antibiotics. There are similar concerns about the use of hormone-injected beef in the US, which is currently banned in the UK. So, there is a need to be vigilant about our protections for the future.

In a submission to the Secondary Legislation Scrutiny Committee, Friends of the Earth referred to the forthcoming EU regulation, due to be enacted in November 2022, which will update the reference action points for antibiotics and antimicrobials. There will not be an equivalent update in the UK. May I ask the Minister to assure the House that a regulation at least equivalent to the latest scientific evidence and safeguards in the EU will be introduced in the UK, and can he explain whether that will be on a timely basis?

The EM also refers to the provision of a surveillance programme for residues of veterinary medicines in foodstuffs. What will be the nature of this surveillance? Will it include visiting the country of origin to check on animal welfare and potential contamination of animal products? What measures are contained in the SI for countries and export businesses that do not comply with our high food quality standards? Does the SI also apply to manufacturers of insecticide flea products for pets, which have been shown recently to be contaminating our watercourses?

Finally, these SIs have not been consulted on because the changes they make are relatively minor. What will be the formal consultation process for changes in policy post transition? A number of them have been flagged up in the SIs as coming on stream in the future. Will those future policy consultations meet the Cabinet guidelines for consultation?

I look forward to the Minister’s response to these questions.

Common Fisheries Policy (Amendment etc.) (EU Exit) Regulations 2020

Baroness Jones of Whitchurch Excerpts

Wednesday 2nd December 2020 Grand Committee

[Baroness Jones of Whitchurch (Lab)]

My Lords, I thank the Minister for his introduction and for his helpful briefing beforehand. It felt very strange reading the first SI, as I felt transported to a bygone age, long before all our efforts to produce the Fisheries Act and before an anticipated announcement with the EU on post-transition trade, which will of course have a major impact on future fisheries provision.

The first SI refers to a targeted consultation with key stakeholders on the Fisheries White Paper that took place in 2018, as though the last couple of years had not happened. I know from our briefing that this SI has been in development for some time and is necessary partly to incorporate changes to EU regulations that have occurred this year. So, given that some of the references in the SI are rather out of date, could the Minister clarify when exactly it was drafted, why it was not introduced before now and why it makes no reference to the impact of the Fisheries Act? We would have thought that would have had at least some impact on the details enclosed in it. It would help—to echo points raised by other noble Lords—if the Minister could clarify when he sees our legislative framework fully transitioning from the common fisheries policy to our ambition as an independent coastal state, as set out in the Fisheries Act. We seem to be treading water rather at the current time.

The Minister referred to ClientEarth’s submission to the Secondary Legislation Scrutiny Committee about the potential weakening of requirements in relation to scientific information and research surveys, sustainability of stocks and reporting. Again, his point was echoed by other noble Lords. It suggests that the detailed reporting requirements contained in EU law have not been replicated in this SI. I would be grateful if the Minister could address this.

In the Defra response to ClientEarth, the department says that it

“will comply with all of its reporting and data sharing requirements under the CCAMLR Scheme.”

Are these reporting requirements indeed equivalent to those in the EU? Are the mechanisms to begin that reporting from 1 January in place? Is the information published in a publicly available format? Will the Government continue to exchange information with EU colleagues, at least on an informal basis, as suggested by the noble Lord, Lord Teverson?

The Secondary Legislation Scrutiny Committee talked about a lack of clarity around the direction of future policy. Can the Minister give an indication of when the department intends to make more detailed policy announcements and when we will see the legislation to back that up? The SLSC drew particular attention to the issue of

“financial assistance for rewarding or deterring behaviour related to sustainability.”

I echo the specific questions of detail asked by the noble Baroness, Lady McIntosh, in this regard. How will the application of financial assistance work in practice? Defra says that this will be included in a separate SI. To clarify: is that the regulation that the Minister referred to in his opening remarks—the one to be published in the spring—or a separate one? He is looking at me quizzically so perhaps it is the latter.

The second SI focuses on the application of the Northern Ireland protocol. Like the noble Lord, Lord Teverson, I have struggled somewhat with some of the fishing implications of the protocol, but we are beginning to work our way through them. The SI explains that the UK intends to accede to the multilateral Agreement on Port State Measures to Prevent, Deter and Eliminate Illegal, Unreported and Unregulated Fishing—the PSMA. Once the UK joins the PSMA, it will be required to impose controls on all non-UK vessels. The Explanatory Note states:

“The controls include: a requirement to use designated ports; a requirement to obtain authorisation prior to using ports; requirements to submit certain documents in advance of using ports; and a regime of inspection.”


What will be the practical difference in the implementation of the PSMA rules on Northern Ireland and GB fishers? How will it differ for each of those groups? Does a list of designated ports already exist? If so, where is it published? Who will be responsible for imposing the regime of inspection and controls? Will it include the British Navy?

The Explanatory Memorandum states:

“There is no, or no significant, impact on business”.


However, the regulations significantly alter the fishing rights of and controls on Northern Ireland and GB fishers. Were they consulted on the new requirements? If so, are they content with them? Do those in the different categories understand the different rights and responsibilities that they will have in future? Would the Minister like to comment on what he sees as being the consequences in real terms? In our earlier briefing, the Minister said, rather colloquially, that he thought that it meant that Northern Ireland fishers will be able to “face both ways”. Can he clarify what he meant by that? This may be a rare occasion when Northern Ireland actually benefits from the Northern Ireland protocol in terms of trade provision.

I do not know whether the Minister saw the recent press report that Scottish fishers on the western coast of Scotland are considering re-registering their boats in Northern Ireland ports. This would enable them to land their shellfish, most of which is destined for European markets, without paying any EU tariffs or taxes. Can the Minister that this would be perfectly legal, provided that it represented a genuine move in the place of operation? Has any further thought been given to the consequences of this? Is there a concern that it might spark a wider practice of companies switching their base of operation to Northern Ireland to avoid tariffs?

I look forward to the Minister’s response to these questions.

Farming: New Entrants

Baroness Jones of Whitchurch Excerpts

Monday 23rd November 2020 Lords Chamber

[Lord Gardiner of Kimble (Con)]

My Lords, my noble friend has raised a key point. Not only do we need access to land and skills, we want to ensure this through the productivity grants, which are part of the Agriculture Act and the work we want to undertake in this area. This important part of the Act addresses not only access but also equipment, technology and so forth, whether it is for entrants or indeed established farmers. That is part of our continuing work.

[Baroness Jones of Whitchurch (Lab)]

My Lords, I am sure that the Minister will acknowledge that increasing the number of affordable rural homes is vital to enabling new entrants to come into the farming sector. However, the housing Minister revealed to me recently that the Government do not keep data on the number of existing affordable homes that are lost through sale or inflated rents. When are the Government going to address the haemorrhaging of cheap homes for rent in rural areas so that young families can afford to live and play their part in the rural economy?

[Lord Gardiner of Kimble (Con)]

The noble Baroness is absolutely right that affordable rural housing is key to ensuring that we have a vibrant agricultural industry. That is why in 2018 the Government launched the revised National Planning Policy Framework. The rural housing chapter gives strong support to rural exception sites and includes new policies to support the building of homes in isolated locations where that supports, for instance, farm succession. In addition, the Government have amended the permitted development rights to support rural housing and agricultural productivity by enabling up to five new homes to be created from existing agricultural buildings, an increase from a maximum of three.

Agriculture (Payments) (Amendment, etc) (EU Exit) Regulations 2020

Baroness Jones of Whitchurch Excerpts

Wednesday 18th November 2020 Grand Committee

[Baroness Jones of Whitchurch (Lab)]

My Lords, I thank the Minister for his introduction and the helpful briefing that he organised beforehand. When we agreed to take all these SIs in one go, I do not think I realised just what a complicated task we were setting ourselves, because there is an enormous amount of detail in them and they all seem to be connected and to overlap. I therefore have a number of questions, but I fear that I may be referred to other SIs to find the answer.

As my colleague Daniel Zeichner pointed out in the Commons, the Explanatory Memorandum says that Defra does not intend to consolidate the relevant legislation at this time. All I would say is: “Good luck” to the person who eventually takes that task on because of the complications that we can all see before us.

We also face once more our old enemy the correction of previous drafting errors. This is an ongoing saga. Can I suggest to the Minister in all good faith that we need some kind of standing procedure to deal with all the errors that are coming to light and may well come to light in the coming months, rather than having to revisit SIs one by one as we are at the moment?

Turning to the individual SIs, I have a few questions. The first SI makes provision for public intervention, private storage and aid to continue at times of market failure. The proposal is that this should be done administratively, rather than by political decisions. The Minister has clarified that this administrative decision will be published on the Government website. However, given our recent experience of market failure in the collapse of dairy prices, which was a hugely political event, can the Minister explain whether that would be the sort of thing that would be decided as an administrative decision and whether there would be any parliamentary oversight of decisions such as that? Would Parliament have any say on that at all?

This SI also changes the provisions for fruit and vegetable producer organisations. The Minister clarified in the other place that there were 34 in total and four are believed to be transnational. Am I right in understanding that those transnational producer organisations will not be able to apply for support, even if the majority of their production takes place in the UK? Have those affected producer organisations been informed of this change, and are they content with it?

The second SI proposes changes to EU retained law to enable the Secretary of State to approve or cancel protected designations of origin and protected geographical indications for wine. This SI only deals with wine, so I presume that other protected designations are dealt with in other SIs. The SI says that there is not expected to be any significant impact on business. Given the UK’s growing wine industry, which I think we would all accept has been curtailed by EU regulations in the past, will it give our wine producers more flexibility in the descriptions of the wines that they are able to market? Is it envisaged that we would have the UK equivalent of appellation contrôlée as a UK quality standard in future?

What UK body will replace the Commission in registering PDOs and PGIs? Will it be British only or include Northern Ireland? Will UK products such as wine remain registered in the EU or will they have to be re-registered to access the market at the end of transition?

The third and fourth SIs address issues arising from the transition from EU import certificates of conformity to those aligned with the border delivery model. It seems strange that the dates for ending the transition period for these certificates for beef and veal labelling is different from that of hops, hatching eggs and chicks. I refer to the excellent note from the Secondary Legislation Scrutiny Committee on this issue. When it asked Defra about this, it was told that some provisions were made to align with the border delivery model, while other timescales meant that there would be a delay for a two-year transition,

“in order to allow policy teams to deliver the necessary IT system changes and recruit additional HMI inspectors”.

Three obvious questions arise from that. First, are some of the border issues so complicated that they need a two-year IT project to complete? Is there any danger of further delays, as we have known in the past, with the IT system not being up and running by that date? Secondly, are the HMI inspectors referred to specialist border inspectors, or is it envisaged that there will suddenly be a huge extra volume of work when the transnational arrangements end—which is why it is being staged, to enable those extra recruitments to take place? Thirdly, has sufficient thought been given to the extra burden on businesses importing across the border which might import mixed cargos with different deadlines for the forms and certificates?

The Secondary Legislation Scrutiny Committee also drew our attention to the fact that the UK does not currently enforce poultrymeat marketing standards. I am very grateful that the Minister has clarified, after our pre-meeting with officials, that that is not so much the case and that a clarification has been issued. I thank him for that. However, if poultrymeat is imported from a third country, does that mean it could still say that it was free-range or organic, and that would not be checked? Could it claim not to be chlorine-washed when it has been? I understand from our pre-meeting that little or no poultrymeat is currently imported using these optional descriptions. Can the Minister clarify whether that might be expected to change in the future? These seem to be quite common terms so it is surprising that there are no imports using these labels now. Could unregulated poultrymeat be mixed with other products and given a misleading description? Can the Minister explain what is meant by that explanation? The SI also refers to the organic certificators’ group having been consulted. Is it now content with the proposals?

On a slightly different issue, perhaps I may ask a follow-up question on the application of the Northern Ireland protocol. In a recent SI debate, the noble Lord, Lord Goldsmith of Richmond Park, revealed that 72 border posts were proposed between Northern Ireland and Britain. Is there a list now of where those posts will be based? Are they fully staffed—with trained staff—and ready to be operational at the end of the transition period? Do those trained staff include the specialist inspectors who would have to deal with the checks on the imported fresh food produce that the SIs specifically relate to? I look forward to the Minister’s response.

[Lord Gardiner of Kimble (Con)]

My Lords, I thank the noble Baronesses for their contributions and important questions on some of these matters. I agree with the noble Baroness, Lady Jones of Whitchurch, that although the regulations are detailed they are intended, as I have explained, not to change policy but to ensure that there is operability in this area as we move forward.

On the point about consolidation, I am very grateful that I am not a specialist in parliamentary drafting, because this would be a mammoth task. I very much take on board the noble Baroness’s point about errors. We all regret when there is an error. Having worked with officials, I think they would apologise to the noble Baroness and to us all, but the pressure is sometimes very intense and these things happen. I regret any error that is made, but the most important thing is to be open about it and correct it as soon as we can. The opportunity that arises now, given that we must attend to these SIs, is to be very straightforward and say that there were a number of errors which we are attending to with these SIs. We should not say that the SIs have been brought forward only to deal with errors because they have not.

The noble Baroness, Lady Bakewell, referred to the length of time of rural development programmes. Some long-term agri-environment and forestry agreements will still be live after the closure of the current Rural Development Programme for England because of the time taken to deliver the environmental benefits from the programme. She also referred more generally to the protected designations of origins and the protected geographical indications after the transition period. These regulations, along with other instruments, will allow Great Britain to administer and enforce the GI schemes and to ensure that the United Kingdom meets its WTO obligations.

On some other points raised about the relationship to our exports, it is important to say that there are GIs for our exports also. Once awarded GI status, a product name is added to the relevant public GI register, thereby providing a basis for protection against any misuse of the name. I reassure the noble Baronesses that this level of protection will apply to all UK GIs. The register will also contain GIs protected through the withdrawal agreement and trade agreements. This domestic protection will enable us to secure reciprocal levels of protection for our wine products on export markets.

Domestic wine production is a growth sector in England and Wales. The noble Baroness, Lady Jones of Whitchurch, referred to domestic wines. These regulations maintain the operability of retained EU law, which is the status quo. Our aim is to ensure that imports of third-country wines continue unaffected while continuing to increase domestic wine production. Existing EU GIs, such as Champagne, will continue to be protected in GB through the withdrawal agreement. We cannot use that name for UK sparkling wines. However, our producers are carving out a strong niche for high-quality sparkling wines and I observe, for example, that two Champagne houses are investing in English vineyards.

The noble Baroness, Lady Jones, asked about the ramifications for transnational groups in the UK. There are four such groups, three in England and one in Northern Ireland. We have kept DAERA fully informed and are working with affected producer organisations to ensure that they are aware of the impact on their business and to help them plan for the future. Transnational POs can still come together, but EU-based members will no longer be able to claim under the aid scheme after the end of the current programme.

The noble Baroness, Lady Jones, raised an important point, which we have discussed, about the definition of administrative decisions and ensuring that what might be described as political decisions are not made under the auspices of administrative decisions. Those decisions have limited scope and do not choose the recipients of the intervention or which sectors to intervene in. They are decisions that, following a tendering process, set rates for buying in commodities under public intervention and for private storage aid, and then allow publication of the rates to be offered. Those decisions are made according to clearly prescribed criteria in the CMO regulations. For example, the tendering procedure is clearly laid down in regulations and the quantities, periods and prices involved are subject to overall limits. The amendments in this instrument would allow the tendering procedure to open and the decision on the maximum price to be published, without requiring legislation to open the procedure and publish the price. It is important to emphasise the narrowness of the scope because I agree with the instincts that the noble Baroness outlined. Changes to these rules and amounts would require legislation and parliamentary oversight. The amendments in the instrument do not introduce new processes or powers, or enable the relevant authorities to do anything new. Instead, they ensure that the relevant authorities will be able to continue operating those clearly prescribed mechanisms, as they do currently, and in a timely fashion, after the transition period.

I turn to some of the remarks relating to the Common Organisation of the Markets in Agricultural Products (Miscellaneous Amendments) (EU Exit) Regulations and the No.2 regulations of the same name. The noble Baroness, Lady Bakewell of Hardington Mandeville, asked about beef and veal. My understanding is that in 2019, 6.8% of the beef and veal imported into the UK came from the following non-EU countries: Uruguay, Australia, Namibia, Brazil, Argentina, Japan, New Zealand, Chile, United States of America, UAE, Botswana and Paraguay. The remainder of our imports came from the EU. While the regulations cover only technical requirements for age on slaughter labelling, and when the terms “beef” or “veal” should be used, I reassure both noble Baronesses that separate legislation concerning high production and animal health standards will continue to apply to beef and veal imported into Great Britain after the transition period.

As I have said before, in all our trade negotiations we will maintain our high environmental protection, animal welfare and food safety standards. These will not change.

The noble Baroness, Lady Bakewell, also asked about importing hatching eggs and chicks and the welfare standards of the country of origin. For hatching eggs and day-old chicks, 85% of our imports come from the EU and we remain committed to high standards of animal welfare and food safety in the future, as we do now.

The noble Baroness, Lady Bakewell, asked about a percentage in relation to hops. I am afraid the detail I have is that we were a net importer of hops and hop products to the worth of £60 million in 2018, while producing £14.1 million-worth ourselves. When I looked into this, one issue was the fact that hops have distinct flavours. We are therefore keen to ensure that there is a continuing ability for production of beer in this country which uses that variety of hop products, although when I studied those figures I thought that there might be some scope for further domestic production. Having looked into that, it is important to ensure that we have that range of hops for our beer production.

The noble Baroness, Lady Jones of Whitchurch, asked about transitional provisions. Funnily enough, in discussing these matters I am obviously seized of the fact that there is this range of dates. I queried this strongly and what we have done—I think this is right—is to have reviewed this on a sector-by-sector basis, to see where it would be practical and possible to align with the border operating model. In doing so, this has resulted in a varying number of end dates. The noble Baroness made a point about having confusion for businesses being the last thing we would want to do. I reassure her that we have actively engaged with businesses ahead of laying these instruments and have updated the relevant guidance on GOV.UK. In fact, representatives from all the sectors have welcomed the provisions, as they allow for appropriate adjustment.

For instance, with regard to the two-year transitional provision concerning EU certificates for fruit and vegetables, I understand we will be using this time to implement upgraded computer systems, as was alluded to, while bolstering our Horticultural Marketing Inspectorate numbers and working with the EU to implement an improved inspection service procedure for member states. After 31 December, the free movement of goods from the EU will end; inevitably, additional checks on imports and additional inspectors will be required. We are working with the APHA to ensure that we have the right calibre of inspectors. That will clearly be important.

The noble Baroness, Lady Jones of Whitchurch, asked about organics. I understand that the UK organics certifying groups are content with the provisions we have brought forward.

In relation to poultry meat marketing standards, I have drawn attention to the correction we made. I reiterate my apologies for it not being sufficiently in context in an earlier version. Although food safety regulations are not covered under these instruments, I reiterate that the Government remain committed to promoting robust food standards and existing food safety provisions, which will of course be retained in the retained EU law. No products other than potable water have been approved to decontaminate poultry carcasses, and this will remain so.

I am mindful of the time so I will be quick in addressing a number of other points. On the Northern Ireland protocol, I am sure that there will be other statutory instruments where, in part, the protocol and the changes following it will need to be applied to other statutory instruments that I bring forward.

I should say, as an aside, that I inquired whether we should have a Northern Ireland protocol SI so that all these matters could be wrapped in it. There was a suggestion that it was rather better to deal with them according to subject matter rather than in that way. If that might have been a suggestion of the noble Baroness, it was one with which I had sympathy, but it was then suggested that it would be more consistent to deal with the whole area of points of concern.

There are one or two further detailed points to cover. On impact, we have worked strongly with businesses because we are conscious that, because of the changes, we need to work with them. We are doing so—that is very important—so that they are aware of the changes and understand why we have a different range of dates to ensure that there are adjustments that work constructively.

If there are any other points, I might receive some information and will write to the noble Baronesses. At this juncture, and mindful that I have already taken a little too long, I commend the regulations.