Common Organisation of the Markets in Agricultural Products (Wine) (Amendment, etc.) Regulations 2021

Daniel Zeichner Excerpts

Monday 19th April 2021 General Committees

[Daniel Zeichner (Cambridge) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Hollobone.

I hope that I will not need to take us to 6 o’clock, because at first sight the Committee is considering a simple change correcting a previous error, which the Minister has elegantly explained and for which no apology is required. An honest mistake was made, but it was spotted and corrected. I have to say that I am rather pleased that I was not involved with the previous SI. Looking at paragraph 7.1 of the explanatory notes, it is clear that there is no way that many of us would have noticed the issue. As I have observed before, there is a huge level of complexity and detail in these regulations that, frankly, most of us do not have the capacity to work through. We are very reliant on civil servants and grateful to them for doing that.

I should also like to note the importance of geographical indications in general, and for our domestic wine industry, which we all wish to see go from strength to strength. I can assure you, Mr Hollobone, that the Opposition will not oppose the instrument, but—of course there is always a “but”—there is an issue on which I will be slightly less gracious, on which we have touched before when SIs relating to wine are discussed, and which I suspect that the Minister may have anticipated. The VI-1 may sound like a horrible warhead, but it is actually a horrible form, and it is exercising many people. It was the main issue raised when the SI went before the Lords last week. I certainly found Lord Moynihan’s contribution very telling and powerful.

I shall briefly remind the Committee of the issue, which is about wine import certification and the blue tape with which the Government are currently strangling parts of the British wine industry. The Government have chosen to roll over EU rules on wine imports that require a detailed import certificate in addition to standard customs paperwork, the VI-1 form, for all wine imports from third countries. These detail how strong a wine is, what grape it is made from and how many containers are being sent. Each different type of wine in a consignment must list all these details and the form requires a stamp from customs officials, presenting a significant logistical challenge and cost burden for wine importers in the UK.

While a slightly simpler version of the VI-1 form has been negotiated in the UK-EU trade and co-operation agreement for wine imports from the EU, this still requires a customs stamp, which will delay transit through ports and place a significant burden on our importers. The Government have delayed the introduction of these new forms twice, but as it stands they are still going to be introduced at the end of the year. The British wine industry is quite frankly at a loss to understand why the Government are so set on introducing this import documentation at all.

The EU’s rationale for having an import document that is effectively a technical barrier to trade is, in reality, to protect its wine industry. For the UK, which is a net importer of wine, it makes very little sense for us to maintain rules designed to disadvantage our imports; we import over 99% of the wine we consume in this country, and around half those imports are from the EU.

As I said, we want our own wonderful wine industry to flourish and grow—there are great English and Welsh wines produced in this country, which is why we support the correction to ensure that geographical indications work properly. In terms of volume, however, we remain a significant importer. The Minister will know that we also have a vibrant export industry based on this trade, with the UK acting as a major wine hub for the rest of the world and wine being our sixth biggest food and drink export in 2019. So this is important.

Yet the Government seen happy to wrap these vibrant industries in blue tape. These forms are a measure that will be significantly damaging to our UK wine importers, who already have to deal with a raft of new barriers to trade as a result of leaving the EU. It will disproportionately damage SMEs, particularly independent wine merchants like Cambridge Wine Merchants in my constituency, as well as pubs, bars and restaurants, for which a wide selection of niche and interesting wines is a unique selling point. It will be damaging to UK consumers, who could see cost increases and decreased product choice, and to the Government themselves, who could see a loss of revenue to the Exchequer and are committing themselves to carrying out yet more form stamping at the border due to the customs stamp requirement.

Daniel Lambert, who will probably be well known to the Minister and who imports up to 2 million bottles of wine a year for 300 retailers including supermarkets, has been vocal in the media about the situation he now finds himself in due to the Government’s decisions. He has likened the impact on the sector to a

“multiple pile-up in the fog”.

He is not happy and neither are others. Yet again we see the Government’s incompetent Brexit deal wrapping ribbons of red tape around the UK’s wine sector for no good reason whatever.

As the Minister said, the Wine and Spirit Trade Association has been clear that, as far as it can tell, the additional bureaucracy is unnecessary. There is no customs requirement for it and no safety issue involved. Wine is already heavily regulated by rules such as the geographical indications to ensure quality control and no other alcoholic drink requires a similar form, so will the Minister clarify the Government’s practical reasons for introducing the forms? If there is no real consumer protection purpose for them, the Government must have another reason for their introduction.

I understand that it has been suggested that maintaining wine import certification rules will level the playing field for wine from the rest of the world. I am sure that the Minister recognises that there are two different scenarios here. I am reliably informed by the Wine and Spirit Trade Association that the supply chain for wine imported from third countries thousands of miles away, often moved in bulk, is very different from the supply chain for wine imported from the EU, which is often imported by SMEs. Importing 25,000 litres of Australian wine in a flexitank with one VI-1 form is much less burdensome and costly than importing 20 wines in bottles from the EU that require 20 additional pieces of documentation.

Rather than imposing a requirement on all imports, the Government could just as easily create a level playing field by not introducing a requirement for import certificates for EU wines and scrapping the current requirements for non-EU wine imports. The only explanation for the Government’s action—Lord Moynihan made the point powerfully—is that it is a negotiating ploy in ongoing trade negotiations with third countries. I am sure that the Minister will deny it, but in my view, the Government are using the British wine industry and particularly British small businesses as pawns in a bigger trade game and happily leaving them endure extra bureaucracy just for extra leverage. Small wonder that Ministers are so reluctant to respond to the sector’s concerns. I am told that repeated requests from the Wine and Spirit Trade Association for a meeting to discuss the issue have been ignored.

At a time when the Government are already having to delay the introduction of mandatory customs procedures, it makes no sense to introduce additional controls if they are non-essential. As a minimum, it would be far more sensible for the Government to delay the introduction of the forms until an electronic version can be established, but the British wine industry is clear that it would be far better to scrap the unnecessary forms. It is entirely within the Government’s gift to do that.

The Government have a perfect opportunity to put their money where their money is, scrap the red tape and support British businesses. Will the Minister explain why on earth they are choosing not to do so when they have been given the chance—a Brexit benefit, no less?

Will the Minister commit today to meet me and the Wine and Spirit Trade Association at the earliest opportunity to discuss the issue further? If not, I fear there will be an empty chair, perhaps occupied by a bottle of wine wrapped in red tape, or even red, white and blue tape. We do not oppose the statutory instrument but we are cross about the Government’s continuing failure to engage.