Plant Health etc. (Miscellaneous Fees) (Amendment) (England) Regulations 2022

Baroness McIntosh of Pickering Excerpts

Tuesday 28th June 2022 Grand Committee

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

My Lords, this instrument makes amendments to plant health fees established in the Plant Health etc. (Fees) (England) Regulations 2018 to ensure that there is no underrecovery or overrecovery of costs.

First, it ensures that the fees charged for plant health checks on regulated commodities imported into England from all third countries reflect the frequencies of those checks established under the new risk-targeted inspection scheme set out in the Official Controls (Plant Health) (Frequency of Checks) Regulations 2022, which will be laid in Parliament on 30 June and apply from July 2022. This approach to fees does not apply to a new flat rate fee, which this instrument also introduces and which I will discuss shortly.

It is our responsibility to protect biosecurity across plant and animal health and the wider ecosystem. To that end, plant health checks, encompassing documentary, identity and physical checks, are carried out on certain regulated consignments imported into England from third countries that may carry pests or diseases that could pose a risk to our biosecurity.

Currently, the highest-risk commodities are subject to 100% plant health checks. The level of identity and physical checks on other commodities is based on risk. The new risk-targeted inspection scheme will provide a risk-based method to determine the frequency of plant health checks, focusing specifically on risks to GB biosecurity. This scheme will apply equally to certain regulated imports from non-EU countries and from EU member states, Switzerland and Liechtenstein.

It is UK government policy to charge for many publicly provided goods and services. The standard approach is to set fees to recover the full costs of service delivery. This relieves the general taxpayer of costs so that they are borne by users who benefit from a service. This allows for a more equitable distribution of public resources and enables lower public expenditure and borrowing.

Charging for plant health services is consistent with the principle that businesses using these services should bear the costs of any measures to prevent harm that businesses might otherwise cause by their actions or non-actions, since most serious plant pests and diseases that arrive and spread in this country do so via commercial trade in plants and plant produce.

In line with the standard approach that the full cost of service delivery be recovered from businesses using these services, fees for physical and identity checks will reflect the frequencies established under the Official Controls (Plant Health) (Frequency of Checks) Regulations 2022. For commodities subject to reduced levels of physical and identity checks, a proportionally reduced fee is applied.

This statutory instrument applies to England only. The Scottish and Welsh Governments are following the same approach in terms of applying fees to recover the full costs of their respective inspections. The Scottish and Welsh Governments laid corresponding legislation on 20 May and 21 June respectively.

Secondly, this instrument provides for a flat rate fee on certain plants for plants imported to England from all third countries. The new risk-targeted inspection regime will see plants intended for final users subjected to lower frequencies of checks, compared with 100% frequencies for plants not intended for final users. This flat rate fee aims to prevent plants that have completed their production stage in a third country and are ready to be sold to consumers after import benefiting from a cost advantage over plants imported to complete their production in Great Britain, while maintaining full cost recovery. The policy for a flat rate fee was proposed following stakeholder concerns. The Welsh Government have laid a similar piece of legislation to implement the flat rate fee.

We have worked closely with industry bodies, including the Horticultural Trades Association and the National Farmers’ Union, on developing our approach to the flat rate fee. Following a consultation, it was decided that a new flat rate fee should be applied to plants for planting and cuttings. After feedback that a switch to a flat rate fee would significantly increase fees for importing bulbs and seeds for the final user, we have restricted the flat rate fee to commodities where there is a clear benefit to trade. This excludes bulbs and seeds from the proposed flat rate fee.

Thirdly, this instrument extends an exemption from the payment of fees for pre-export and export certification services where goods are moving from England to a business or private individual in Northern Ireland. This will continue to enable trade between England and Northern Ireland in line with the Government’s movement assistance scheme. The Welsh and Scottish Governments are extending these exemptions in a similar fashion.

Finally, an error is corrected to reinstate in the fees regulations a provision for fees for samples taken on imports, which was omitted by the Plant Health etc. (Fees) (England) (Amendment) Regulations 2021.

This instrument is necessary because it ensures that there is no over-recovery of fees charged for plant health checks on commodities imported from third countries and maintains the full cost recovery of plant health services. If this instrument is not made, it would lead to over-recovery of fees from businesses, which would mean that proposals agreed with stakeholders on a flat rate fee for certain categories of plants would not be implemented. I beg to move.

[Baroness McIntosh of Pickering (Con)]

My Lords, I thank my noble friend for introducing the regulations before us. I broadly welcome them, but I have a number of questions.

Paragraph 12.1 of the Explanatory Memorandum states:

“The impact on business … is that these changes are estimated to save businesses c. £1.2m per annum due to lower levels of checks and subsequent impact on fees.”


Obviously, a lower level of fees will be pleasing for the industry, but I had not grasped that we are introducing a lower level of checks through this instrument.

One of the difficulties of this instrument, which my noble friend just introduced, was also set out in the Secondary Legislation Scrutiny Committee’s fifth report. As my noble friend stated at the outset, there will be a second statutory instrument at the end of June that will set out the regime. Why has the way in which the fees have been structured been separated from the regime? Why have we not had an opportunity to consider them both together? I would have thought that the regime was probably of most interest. When might we expect to see that statutory instrument, as today is already 28 June?

Am I right to assume that paragraph 28 talks about the inspection fees being corrected, as they are being reinstated, when samples of imported consignments are taken for lab testing to confirm the presence of certain plant pests? Can my noble friend elaborate on whether that is done on an ad hoc basis or responding to intelligence? Does it include such laboratories as FERA, which I had the honour to represent in North Yorkshire for the last five years I was in the other place?

Also, is this one of the instruments that appears on the famous dashboard that we heard about last week? Is it one of the 570 statutory instruments that is retained EU law or is it a stand-alone instrument? Will we come back to look at this in a different context? I welcome the opportunity to debate and approve the regulations this afternoon.

[Baroness Jones of Whitchurch (Lab)]

My Lords, I thank the Minister for his introduction and for the helpful briefing that he organised beforehand.

The Explanatory Memorandum makes it clear that the purpose of the regulations is to help reduce biosecurity risk and to protect the environment from the spread of harmful pests and diseases. Obviously, these are objectives that we can all aspire to, but I would like to explore in more detail whether the proposed changes will achieve that result.

The new fees structure set out in this SI is based on a new risk-targeted inspections scheme which is set out in a separate SI, the Official Controls (Plant Health) (Frequency of Checks) Regulations, which this SI says will apply from July 2022, and to which the Minister referred as well. However, that SI has not been published yet. When I queried this with the department, I was told that it would be published on 30 June, which happens to be a couple of days after this debate. The noble Baroness, Lady McIntosh, also raised this point. Where is the parliamentary scrutiny in this process? We are being asked to agree the fees without seeing the risk-based scheme in the first place.

The basis of the proposed changes was set out in a government consultation. In the Government’s response to the consultation, dated 31 March 2022, they concluded that imposing full checks on all categories of plants needed to be balanced with the impact on regulators and trade. In effect, it appears that this is a watering down of our biosecurity risk regime at a time when the threat of importing new plants and diseases with new and emerging pathogens is increasing.

I think it is fair to say that this is not a very reassuring SI in terms of the impact on biosecurity, and that the proposed changes were not greeted with unanimous support during the consultation. For example, the Government’s response to the consultation flags up that concerns were raised about the ability of the plant health risk group to respond quickly to new outbreaks. Obviously, there are different sorts of outbreak; some can be predictable, as can some disease threats, but some occur unusually and out of the blue. Is the plant health risk group really in a position to be able to judge and assess that risk, and to measure the right plants that are coming across our borders? There was a feeling that the inspection methods and technology applications were out of date and that we needed to modernise them. Concerns were also raised about the need for more transparency on the interception of pests and diseases and that, if a new pest or disease had been identified on UK shores, it needed to be shared more immediately.

These are all real challenges that Parliament has not yet had the chance to discuss, so I hope that the Minister can clarify why we have had such limited opportunity for parliamentary scrutiny on a very important issue that we have debated on a number of occasions in the past. Quite rightly, everyone has said that there is an acute need to take biosecurity more seriously.

Returning to this SI, first, it acknowledges that some commodities will be subject to reduced levels of physical and identity checks, leading to a lower fee being applied. However, nowhere does it really say that those at higher risk levels will have to pay a higher fee. I am interested to know how that will work in terms of our biosecurity protection.