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

Baroness Parminter Excerpts

Wednesday 20th February 2019 Grand Committee

[Baroness Parminter (LD)]

My Lords, I certainly have no intention of opposing this fairly straightforward statutory instrument, particularly since ringing round a couple of the people who were described as the key stakeholders. When I phoned one of them, they sent me a reply and copied it to the department. Clearly there is a healthy, if not cosy, relationship between the industry and the department.

I want to make two points. Paragraph 7.5 of the Explanatory Memorandum talks about what will happen, and has been happening, in terms of a risk assessment for these fertilisers. It refers to certain ways in which a fertiliser can be treated,

“if there are justifiable grounds for believing that it constitutes a risk to safety or health of humans, animals or plants or a risk to the environment”.

That is a really important point, given the impact of fertilisers. We accept that they have an important role to play in farming but they are not without their risks. I would like a little more clarity from the Minister about our process for identifying those risks. The memorandum goes on to talk about the changes in the rules being carried out in conjunction with the HSE. Of course—that is perfectly right and proper because the HSE has a remit with regard to human health. However, I would like some reassurance about what the process is at the moment. I am not saying that there are any changes—I am pretty sure there are not—but I would like some clarity. What engagement is there between the HSE and the Environment Agency to ensure that environmental concerns about fertilisers potentially coming into the UK are assessed appropriately, particularly given that, sadly, we import the majority of our fertilisers at the moment?

My second point is merely one of process—a matter that other noble Lords have mentioned. Paragraph 6.3 of the Explanatory Memorandum talks about the need for some changes to be made. They are changes which pertain to this SI but which will be covered in a further SI—the Pesticides and Fertilisers (Miscellaneous Amendments) (EU Exit) Regulations, which will come before us at some point in the future. That SI is the third of the triumvirate of pesticides SIs, which we discussed at great length in the Committee last week. A government impact assessment said that both business and the Government would be extensively impacted, and it seems wrong that this third pesticide SI was not discussed at the same point. I accept that there is an argument that it should and will be subject to the negative procedure at some point, but with that to one side, if you have an impact assessment which covers three SIs and says that there are major implications, it would be helpful for the House to discuss them concurrently.

[Baroness Young of Old Scone (Lab)]

My Lords, as I came to the House today, my local farmers were carting megabags of EC fertilisers everywhere I went. I presume they have come to the conclusion that spring is here; it seems that in spring a young farmer’s fancy turns not to love but to fertilisers.

I thank the Minister for her clear exposition of the regulations, and for the briefing meeting that she very kindly convened. I am sure everyone will be delighted, at this point in the evening, to hear that this statutory instrument appears comparatively straightforward. We welcome the changes that have been made as a result of the consultation and the sifting exercise, including the introduction of a two-year transition period for the fertilisers part of the regulation.

I would much prefer that the transition period be overtaken by an outbreak of sanity and us remaining in the EU, rendering the provisions unnecessary. However, it would be good to hear from the Minister what the Government anticipate that the longer term will hold. Currently, fertilisers are partially harmonised in that member states are permitted to have a domestic regime in addition to the EU rules. Do the Government anticipate us trying to keep in harmony with EU fertiliser standards and controls in the longer term, and if not, what impact would that have on both imports and exports?

Of more concern, though admittedly affecting only a small number of UK fertiliser manufacturers, is the position of those manufacturers who export to the EU. They may already have to meet individual member state requirements where a member state has a domestic regime. A technical notice has been issued by the Government on where the parachutes are if we crash out on 29 March. Under that, UK manufacturers who wish to continue trading with the EU will have to send samples to EU labs for testing in order to comply with EU regulations. Any necessary sampling or analysis will be carried out by competent laboratories included in the Commission’s published list. Manufacturers in the UK will be able to label their products “EC fertilisers” only in accordance with the EU framework, and UK companies will only be able to export EC fertilisers to the EU if they comply with the EU regulations, which include a requirement that I did not quite understand, that,

“the manufacturer is established within the EU”.

Therefore, I ask the Minister for clarification on two points. First, in the short term, does the requirement to have the sampling and analysis carried out by an EU lab double up the costs—an EU lab and a UK lab—and is this an additional burden on UK manufacturers? This would be at odds with the Government’s statement in the Explanatory Memorandum that there will be no added cost burdens to manufacturers. Secondly, does the requirement that the manufacturer is established within the EU in reality rule out UK manufacturers being able to market their products under the EC label if we crash out of the EU at the end of March?

All this would be unnecessary if we came to the conclusion that leaving the EU is the arrant folly which it is, but I am sure the Minister is not going to give any key assurances on that tonight.