Organic Production and Control (Amendment) (EU Exit) Regulations 2019

Baroness Miller of Chilthorne Domer Excerpts

Wednesday 13th March 2019 Grand Committee

[Baroness Byford]

My Lords, returning to our discussions of these two instruments, I have just about covered everything that I wished to. I stressed the importance of the organic movement: we are now up to some 6,000 organic operators. That is worth a lot of money to farming and agriculture in the UK economy and, even more importantly, to the growth of our exports.

I am grateful for the smooth transition the Government have planned, and apart from my question on the definition of “small” and “very much smaller” businesses, I well realise that the Explanatory Memorandum indicates that there is no expected cost to them. However, I would be grateful to the Minister for clarification on that when she comes to respond.

[Baroness Miller of Chilthorne Domer (LD)]

My Lords, we warmly welcome these SIs, which are absolutely essential for the continuity of trade in organic products. We particularly welcome the fact that the Government recognise the voluntary uplift.

I declare an interest which makes me a little more passionate about the sector. I used to work for the Soil Association, albeit very many years ago. It was an interesting time to be there, as it was developing certification techniques with the EU. The sector has moved on a lot in the 25 years since.

By and large, the sector is very happy with these SIs, as are we; it did not have any concerns about them as they currently are. The sector is happy that they are being proposed and debated as a framework for certainty for organic producers and consumers.

As the noble Baroness, Lady Byford, said, it is a really vibrant market. The organics market in the UK is worth some £2.3 billion, of which 8% goes abroad, mainly to EU countries. The importance of the organic sector for the UK is that it has introduced consumers to many ideas about more sustainable agriculture. So apart from being worthy both in economic terms and as an employer, it has been a flagship, introducing ideas around sustainability, the importance of soil, issues around chemical inputs and so on. It really is a sector that deserves our full attention.

The Government have taken the necessary step to ensure the continuity of trade through this SI. If there is any concern, it is really that this is a period of certainty for only 21 months. As annexe 2 mentions, at the end of that period, things will become uncertain again. In farming, 21 months is as nothing. If you are trying to make investments or change your farming methods, or if you are in conversion, 21 months is an extremely short time. Both producers and UK certification bodies would like to move as soon as possible to a period of greater certainty; I hope that the department is working on that.

The question of how the regulation will be administered, controlled and, particularly, developed in the light of future changes and challenges is something that I hope the Minister can touch on in her reply. Undoubtedly, there will be challenges from developments within other organic regulations. It is a fairly fast-moving scene now, with different products being withdrawn or coming on to the market. Of course, if we start to enter into trade agreements with the US—heaven forbid, but it is possible—that will be a massive challenge. I hope the Minister can give us some certainty about how this is going to be developed.

For consumers, it is equally important that the certification is gold-plated. Organic products command a premium price, so it is essential that consumers, when paying that premium price, can absolutely rely on the origin processing methods of that produce. Otherwise, if any doubt enters that market, it would adversely affect all those who are engaged in genuine organic production.

It would be difficult this afternoon not to mention tariffs—I heard the Minister’s caveat, so I will mention it only briefly. That will be another massive pressure on producers. I gather that tariffs are about to be published or may have been published this afternoon. That is another huge pressure on producers that I hope we will have the chance to debate in your Lordships’ House in the very near future.

[Baroness Jones of Whitchurch (Lab)]

My Lords, I am grateful to the Minister for introducing these SIs this afternoon and for organising the helpful briefing beforehand. We accept that these SIs are necessary to maintain current standards regulating the UK’s growing organic sector. The continued availability of high-quality produce and sustainable food supplies, in which the organic sector plays a key role, is vital for our food industry and important for consumers. For example, the Soil Association reports that the UK organic sector grew by 5.8% in 2018, its eighth consecutive year of growth. As the EM makes clear, the industry is worth something like £2.2 billion to the UK economy. I very much take the point of the noble Baroness, Lady Byford, who quite rightly said that so many people in that sector work in small businesses and make a particular contribution to the economy in that regard. Obviously, it is important that their futures are protected.

The noble Baroness, Lady Miller, said she felt that the sector did not have any concerns about these SIs. I will come back to that, but the Minister will be aware that the industry is already reporting negative impacts caused by the ongoing uncertainty of Brexit. Confidence is being undermined and businesses are warning that the consecutive years of growth achieved by the UK organic sector could be at risk. Therefore, we are looking to this batch of organic-related SIs, and to what the Minister is able to say this afternoon, to reassure the market of continued access, which the sector deserves and requires.

With this in mind, I have some questions for the Minister, the first of which is on imports. The noble Baroness, Lady Miller, raised the issue of the 21-month deadline. Annexe 2 of the Explanatory Memorandum says:

“For a strictly time-limited period of 21 months we will exempt the need for additional checks or paperwork for organic goods being imported directly from the EU, the EEA states or Switzerland except those organic goods which do not originate from but are simply transiting through these territories”.


I would like to explore what that 21-month deadline means. Can the Minister give some clarity on that? Has that amount of time been chosen to line up with the transition period? If so, what would happen if the transition period was extended? Is it an absolute deadline whether there is a deal or no deal? Is it written in blood, so to speak? Perhaps she could clarify the status of that 21-month deadline so that we are all clear on that.

Secondly, on exports, as has been touched on, future export arrangements with the EU are a matter for future negotiations. But can the Minister give us an assurance that future access to the EU market for our strong UK organic exporters is indeed a priority for the Government? Can she explain why we are giving guarantees to organic imports while no such guarantees are in place for UK organic exports? There is an imbalance there, and perhaps the Minister can explain why that is the case.

The Government have given notice that, after 29 March, importers will no longer use the EU’s Trade Control and Expert System New Technology, or TRACES, to register consignments of organic produce but must use a manual UK organic import system while a digital system is being developed. Can the Minister give the Committee an update on the progress in building the UK’s own digital system? Will it be fully functional on exit day? What work is being done to ensure that UK industry and its international partners are aware and prepared for this change? What assurances can the Minister give that the temporary manual system, and eventually our own permanent IT system, will provide the same level of certainty over origin and movement of produce as we have at the moment?

Paragraph 12.3 of the Explanatory Memorandum, on control of imports, explains that there has not been an impact assessment but:

“There may be minimal familiarisation needed for businesses to set up to use the new import and export systems”.


Can the Minister say what “minimal” means in this instance? Is she assured that this rather minimal objective has been achieved, and will that give businesses the information and knowledge that they need to be able to operate under these new systems? In other words, is the Minister sure that the communication and training systems are in place, running fully and meeting their objectives?

On the ongoing issue of resources and expertise, annexe 2 to the Explanatory Memorandum on control of imports states:

“The UK will be able to accept applications from overseas control bodies to certify to the UK organic standards, and subsequently approve these bodies if the UK wishes”.

Currently, Defra has approved eight certification bodies: six in the UK and two in Ireland. Is any additional expertise or resource needed for the UK to consider and process other applications when we are basically on our own in this matter, rather than having the EU’s information scrutiny process to rely on as well? Are those eight certification bodies up to the job and resourced properly, and do we need other certification bodies?

On a small point, annexe 2 in both SIs explains that certain duties—in Articles 29 and 38 of the Council regulations—have been downgraded from “shall” to “may”. The notes explain that these duties have already been completed by the EU. Will the Minister provide more information on what these articles include and why the specific duties have been downgraded? What is the thinking behind that? If they have been fully completed by the EU, perhaps they are not needed at all and there should be no reference to “may”.