Fertilisers and Ammonium Nitrate Material (Amendment) (EU Exit) Regulations 2019

Baroness McIntosh of Pickering Excerpts

Wednesday 20th February 2019 Grand Committee

[Baroness Byford (Con)]

My Lords, I am grateful to my noble friend for introducing this statutory instrument. I shall start where she ended and thank her for the consultation the department has had with the Agricultural Industries Federation and the National Farmers’ Union. It is essential that we take advice from or hold consultations with them. In the same way, I should declare our family’s farming interests because obviously fertilisers are used on the farm.

I have little to question my noble friend on, but I am grateful that the Government have responded to the Commons sifting committee which referred the question of costs to the department. That has been addressed and the Minister has reminded us that 99% of fertilisers are imported from the EU. It would be logical to accept this statutory instrument and I am grateful for the way in which the labelling requirements have been addressed; in other words, we can still use the EU fertiliser labelling scheme until the UK fertiliser labelling scheme is put into place.

The most important thing that I have picked up from this statutory instrument is the need to ensure that fertilisers are bought, sold, stored and then used on farms safely and securely. It is easy for accidents to happen, and we do not wish to see fertilisers fall into the wrong hands. I welcome these regulations and again I thank my noble friend for introducing them.

[Baroness McIntosh of Pickering (Con)]

My Lords, I thank my noble friend for introducing this statutory instrument on which I have just a couple of questions. Obviously farmers and farming are responsible for a great deal of our ammonia emissions. I want to make a general plea. Someone who is going to take over at the helm of Natural England is not known as being perhaps the best friend to farmers. To which body will farmers be able to turn to advise them on fertiliser use? Also, what is the relationship between this instrument and the ammonia and livestock farming regulations, which have either gone through or are to come through at the same time, that set new rules on housing and better feed and further restrictions on the storage and spreading of slurry? This relates to an earlier debate which I know my noble friend listened to.

It would make more sense if we could have an umbrella statutory instrument which covered every single item relating to the use and control of ammonia. I had farming interests. My brother and I shared the freehold of two fields which I have now offloaded on to him. I therefore have no further interests to declare, although I wish him good luck. It would be helpful if there was a single body that farmers could turn to for advice rather than the various bodies that are policing them. I am afraid that this is a constant theme to which I will return when the Agriculture Bill and the environmental protection Bill reach us. I am sure that my noble friend is a reasonable person, so would it not make more sense if we had one regulation coming through covering the whole issue of ammonia emissions? Good luck with that, but I thought I would mention it. Defra is a busy department with about 100 statutory instruments going through, so perhaps my suggestion would help.

In the guidance is a reference to the fact that:

“The Government will publish a new list of laboratories approved to test to the standards required for the new ‘UK fertiliser’ label”.


It may be that the Government have produced that list and I would be interested to see it as we are now at half past the eleventh hour before leaving. The guidance goes on to say that:

“Any necessary sampling or analysis must be carried out by a competent laboratory included in the Commission’s published list”.


I would expect to see that list and would welcome the news that it has been published.

The notice goes on to say, in the third paragraph from the end:

“The Irish government have indicated they would need to discuss arrangements in the event of no deal with the European Commission and EU Member States”.


Do we know whether we are included in those discussions? It would make sense if we were.

With those questions, and depending on the answers—although I do not intend to stand in the way of the statutory instrument—I look forward to my noble friend’s reply.

--- Later in debate ---

[Baroness Vere of Norbiton]

I thank all noble Lords who have taken part in what has thankfully been a short debate; I believe that this is a fairly simple piece of secondary legislation which we should be able to dispatch fairly quickly. However, I appreciate the comments made by many noble Lords, and certainly from my noble friend Lady Byford. The consultation period was very important to us, and it was quite interesting that the agreement was that two years was the best time; this is the period that had been used previously. For example, when the label had to be changed from “EEC fertiliser” to “EC fertiliser”—they had to knock out an “e”—that took two years, which seemed the appropriate amount of time for the bags to be relabelled and for more to be produced with the new label. The transition period is an important issue for the labelling and I am pleased that it seems all parties are happy with where we have got to.

I turn to the comments made by my noble friend Lady McIntosh. It is always a pleasure to see her in these debates, but I sometimes fear slightly what she may say—I do not want to say that she may go off-piste, when I am sure many of us are supposed to be skiing. She certainly asked me some questions that I cannot hope to answer within the scope of what the Committee is discussing. For example, I am afraid that ammonia emissions go far beyond what I have and can help noble Lords with, but it is important that many bodies already exist which farmers can go and speak to on the use of fertilisers. When we get to consider the Agriculture Bill in your Lordships’ House, we will be discussing advice to farmers and their relation to the environmental land management schemes which will be put in place. All those things are very important for how we function in harmony with the countryside, so perhaps my noble friend would hold her horses just a little while longer and we will come back to that.

[Baroness McIntosh of Pickering]

I am most grateful to my noble friend for answering as she did. This goes to the point that a number of your Lordships made during the debate that other regulations have been coming through. It must be just as irritating to the team at the department to have this piecemeal approach. It would help farmers enormously if we had one approach to a substance such as ammonia.

[Baroness Vere of Norbiton]

My noble friend is quite right but I see us as doing something specific today, which is to protect our country in the event of a no deal Brexit, which I am sure none of us would want to see. I recognise that we sometimes have to deal with these provisions in a slightly piecemeal fashion but they are designed to be piecemeal—to be nice little nuggets that we can discuss and then hopefully move on, having protected our legislative framework which is clearly so important.

I also put forward a slight word of warning because apart from my Defra job I have another, which is as the Whip for BEIS. I am sure that many of your Lordships will be aware that that department has issued an SI which amounts to 330-odd pages. I see my noble friend Lady McIntosh saying that is not a problem but I am afraid that many people have regarded it as a problem. To a certain extent, bite-size pieces can be better. I see the noble Lord, Lord Grantchester, rubbing his hands in glee and I hope that I will not be the Minister taking it through—I am sure that my noble friend Lord Henley will be better by then and with us.

To go back to the matters in hand today, my noble friend Lady McIntosh also mentioned the list of laboratories. Yes, that will be republished. At the current time, I believe that three laboratories do fertilisers. It will be republished shortly and I will make sure that that is the case.

I turn to the points raised by my noble friend the Duke of Montrose. What we are dealing with today is more about the imports than the exports, as I am sure he will appreciate. It is so important that our farmers have continuity of supply. Obviously, we cannot tell the European Union what to do if we leave with no deal. We will unfortunately be in a situation where there will be no reciprocity. However, it is the case that we import vast quantities of fertilisers, including ammonium nitrate, which is why we are extending a warm hand to those overseas manufacturers and saying: “Look, it’s okay. We will continue to recognise your labelling for the next two years to ensure continuity”.

With regard to chemicals more broadly and the REACH SI, regulations on which will I know be coming to us soon, that is a far more complicated area and we will have to go into it. It was most important for us to make sure that we have the systems and laboratories in place, and that we accept the results from overseas laboratories for that two-year period.

The question of exports was raised, both by my noble friend and the noble Baroness, Lady Young. Fertiliser manufacturers based in the UK will, of course, be able to sell products into the EU. If we leave with no deal, they will do so as a third country, but they will have to comply with the EU regulation—they already comply with it at the moment, Regulation (EC) No. 2003/ 2003—and any other relevant legislation.

The noble Baroness raised the point about ensuring establishment—this is a very broad term—within the EU after exit. Sometimes, when exporting to third countries, you have to comply with them as they require. In some cases of larger companies, it would be cost effective to have an office there, but for many it is simply a case of using an import agent in that country. Those requirements would come into being; however, this is for no deal only. If we have an implementation period, none of this will come into play. If we get a free trade agreement thereafter, as we hope, much of this will continue, as we all wish it to, so I am afraid we are dealing solely with a no-deal scenario today.

--- Later in debate ---

[Baroness Young of Old Scone]

I just do not want us to leave.

[Baroness McIntosh of Pickering]

On that point, highlighted by the noble Baroness, the technical notice says that Norway, Iceland and Liechtenstein, being party to the European Economic Area, will be covered. Will lab costs have to be applied to export to those areas in the event of no deal as well?

[Baroness Vere of Norbiton]

We will have to look into that in greater detail. I will write on that. We are possibly slightly off topic, as this is about the cost of exporting, but I will certainly write. I am very happy to do so.

Turning to the pesticides SI, it covers a range of different topics, so it is important that we discuss it today. It updates out-of-date references and provisions in the Ammonium Nitrate Materials (High Nitrogen Content) Safety Regulations 2003 and makes corrections to the EU plant protection product regulatory regime. It is a bit like what my noble friend Lady McIntosh is doing—it covers lots of things, but we are being told that we should not have done that. This instrument was laid on 18 February. We produced an impact assessment, which considered the collective impact of the three statutory instruments, and noble Lords will know that we have already discussed the other two affirmative SIs. This SI was discussed today in relation to the specific provisions about ammonium nitrate.

I believe that I have covered most of the points raised. Like my noble friend Lord Gardiner, I will review Hansard with great interest to check that I have covered all the points. Where I have already promised to write, I will certainly do so.