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

Baroness McIntosh of Hudnall Excerpts

Wednesday 18th November 2020 Grand Committee

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

My Lords, I declare my farming interests as set out in the register.

These instruments are closely related as they apply to regulations relating to the common agricultural policy, or CAP. I emphasise that these instruments are minor and technical in nature. They do not make new policy or change existing policy. Instead, they will make existing policy and legislation operable at the end of the transition period.

The Agriculture (Payments) (Amendment, etc) (EU Exit) Regulations 2020 update exit SIs made in 2019, minimising ambiguity about legacy CAP schemes by removing the direct payments provisions from previous exit SIs and clarifying that those SIs relate only to the common organisation of agricultural markets—CMO—and rural development. Amendments to direct payments provisions had already been made on exit day under the Direct Payments to Farmers (Legislative Continuity) Act 2020. There are also Northern Ireland protocol-related technical amendments, such as changing “United Kingdom” to “Great Britain”.

The regulations allow the UK to comply with Article 138 of the withdrawal agreement, which provides that EU law will continue to apply after 31 December to ongoing rural development programmes and CMO operational programmes implemented by producer organisations until those programmes end.

The regulations amend provisions concerning public intervention and private storage aid schemes, which offer financial support when market prices for agricultural products fall below thresholds laid down in legislation. Currently, the schemes allow the European Commission to buy commodities then publish its decisions using implementing Acts. This instrument allows Defra and the devolved Administrations to make these decisions, which will then be published on GOV.UK.

The instrument makes amendments to retained EU law relating to devolved aspects of producer organisations in the Fruit and Vegetables Aid Scheme to ensure that the scheme continues to operate in the UK post the transition period. This scheme provides funding to producers to encourage collaboration, increase competitiveness and improve the quality and quantity of produce grown.

The instrument makes other amendments to retained EU law to ensure that Defra and the devolved Administrations can continue to obtain certain production and price data from those in the supply chain, as they do currently. This information is used for market monitoring purposes.

Finally, this instrument also tidies up aspects of other retained EU law; for example, it changes “Exit Day” to “IP completion day” or reflects updates to EU law.

I turn to the Common Organisation of the Markets in Agricultural Products (Producer Organisations and Wine) (Amendment etc.) (EU Exit) Regulations 2020. This instrument amends provisions of retained EU CMO legislation in the reserved areas of regulating anti-competitive practices and agreements; international relations; import/export controls; and the regulation of intellectual property. It ensures that, post transition period, these functions can be carried out by the Secretary of State. It also amends retained EU law concerning reserved provisions of producer organisations in the fruit and vegetables sector and ensures that functions relating to the recognition of producer organisations in this sector can continue to be exercised by the Secretary of State. It will also omit references to transnational POs within retained EU law, as they are no longer relevant in a domestic context, and updates a reference in relation to contractual negotiations in the milk sector.

On wine, the instrument ensures that protection of designations of origin, geographical indications and traditional terms in the wine sector operate effectively and that Great Britain is able to process domestic and third-country applications for such matters. It will also ensure that the UK is compliant with the rules of the WTO. It will give the Secretary of State the power to approve or revoke protected wine names and terms on the domestic GI register and approve or deny applications already made to the EU. It will also enable the Secretary of State to make administrative decisions involved in processing applications for protected wine names or terms, amending those protections and the use of those terms on the label of the product. It also revokes EU-implementing Acts that duplicate information in the protected designations of origin and protected geographical indications register.

I turn to the Common Organisation of the Markets in Agricultural Products (Miscellaneous Amendments) (EU Exit) Regulations 2020 and the Common Organisation of the Markets in Agricultural Products (Miscellaneous Amendments) (EU Exit) (No. 2) Regulations 2020. The majority of the amendments made by these instruments relate to the implementation of the Northern Ireland protocol and references to Northern Ireland as it will remain aligned to the EU under the protocol. Amendments are also being made to a small number of the transitional provisions, either to align with the Government’s border operating model, which introduces new border controls for the movement of goods between Great Britain and the EU in three stages until July 2021, or because they were introduced on the basis that the UK would leave without a deal and are no longer required.

The Secondary Legislation Scrutiny Committee drew the attention of the House to the department’s explanation for why poultry meat imports from the EU would not require an optional indications certificate for a period of 12 months. Optional indications refer to the use of labelling terms concerning farming or chilling methods. I would like to apologise as the department’s explanation did not provide sufficient context on checks relating to poultry meat marketing standards and this may have caused concern, but it has since been clarified with the committee and the department has asked for a correction to be issued.

I reassure your Lordships that, although the specific matters are not covered by these regulations, the Government remain committed to high environmental protection, animal welfare and food safety standards.

These statutory instruments, which are predominantly technical in nature, provide clarity in the context of continuity. For those reasons, I beg to move.

[The Deputy Chairman of Committees (Baroness McIntosh of Hudnall) (Lab)]

My Lords, the noble Lord, Lord Loomba and Lord Dodds of Duncairn, and the noble Baroness, Lady McIntosh of Pickering, have withdrawn from the debate. I call the next speaker, the noble Baroness, Lady Bakewell of Hardington Mandeville.