Draft Environment, Food and Rural Affairs (Amendment) (EU Exit) Regulations 2019

David Rutley Excerpts

Wednesday 13th March 2019 General Committees

[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (David Rutley)]

I beg to move,

That the Committee has considered the draft Environment, Food and Rural Affairs (Amendment) (EU Exit) Regulations 2019.

Once again, it is an honour to serve with you in the Chair, Ms McDonagh. The regulations group elements of six policy regimes for natural mineral waters, spirit drinks, food labelling, wines, genetically modified organisms and animal imports. The Department for Environment, Food and Rural Affairs sought agreement to group the regulations on a thematic basis to ensure that each policy regime would be subject to the required scrutiny. That is particularly valuable when regulations are inter-related, as in this instrument, where each regime includes a transfer of functions, which is the key element to all these regulations. The purpose of the statutory instrument is to make purely technical or operability corrections to ensure that the regimes continue to function as intended. The corrections remove or amend references to EU directives, remove or amend EU references, convert EU procedures to UK procedures, and transfer EU functions to the UK.

The instrument also allows existing recognition of natural mineral waters from the EU, Iceland and Norway to continue on a transitional provision for at least six months, thereby maintaining the status quo immediately before exit day. It provides the Secretary of State with the power to withdraw recognition of EU natural mineral waters after a period of notice if certain conditions are not met. That relates to EU directive 2009/54 on the marketing of natural mineral waters.

With the exception of the Secretary of State’s powers over the recognition of natural mineral waters, the instrument makes no further substantive changes. Although it represents a change of policy with respect to natural mineral waters, that change is only to retain the status quo, so that EU natural mineral waters are recognised in England. Without that provision, the natural mineral waters that obtained recognition in or by a member state in the European economic area would not have the right to be legally sold in England, irrespective of the Secretary of State’s power to regulate the field. That would lead both to restricted consumer choice in the UK, where one in three bottles of natural mineral water are of EU origin, and to changes in the price of the products because of market forces.

The SI will also ensure that we have a fully functioning scheme for the geographical indications of spirit drinks that allows us to register and amend indications. That is particularly important for Scotch whisky, which in 2018, accounted for a record £4.7 billion in exports. Although those exports would not be directly threatened without the SI, the industry would lose the ability to amend the Scotch whisky technical file to better reflect industry practice. That document provides the technical specifications for products that use the Scotch whisky GI name—production process, geographical area, specific labelling rules and so on. In that respect, the SI amends EU regulation 110/2008 to transfer functions from the European Commission to the Secretary of State.

On food labelling, the SI will transfer a series of legislative functions that are currently conferred on the European Commission so that they will instead be exercisable by public authorities in the UK. Those functions will allow the appropriate authorities to make important changes relating to how certain pieces of information can be presented to the consumer. Currently, those powers sit with the EU Commission and their transfer will ensure that we would not require new primary legislation to update, for example, the list of allergens that must be labelled on pre-packed food, or to change the way that nutritional values are presented.

On wine and aromatised wine, the SI will transfer the power to make rules on the production processes used to make aromatised wines, as well as rules on methods of analysis and administrative and physical checks, and transfer powers on wine relating to GI applications from the EU to the Secretary of State. That will enable us to consider applications for new wine GIs and deal with applications to amend and cancel wine GIs on the UK wines GI register. Without doing that, key aspects of our wine quality policy would become inoperable, which would put us in breach of World Trade Organisation provisions. The SI will roll over the framework for producers to protect geographical indications for aromatised wines, as well as the mechanisms to control their production and use.

In respect of the regime for genetically modified organisms, the SI will make operability changes to transfer existing powers from the EU to the Secretary of State, allowing the Secretary of State to develop technical statutory guidance on sampling and testing for the presence of GMOs, amend the threshold above which products must comply with traceability and labelling requirements, and apply unique identifying codes to GMOs. That will ensure that we can continue to enforce the rules on releasing genetically modified organisms into the environment, although it is important to state that no GM crops are grown in the UK, nor is it anticipated that any will be.

Finally, the SI includes animal health provisions to make operable European decisions on the import of cattle semen, pig semen, horse semen, ova and embryos. They also retain an historic health certificate and inspection report that remains in use when certain disease restrictions are in place.

The Department for Environment, Food and Rural Affairs has consulted with the devolved Administrations on the amendments that the SI will make, and they have consented to its coming into force. Its territorial extent is the United Kingdom, except as regards natural mineral waters and decisions to release GMOs. As the natural mineral waters amendments apply only to England, each devolved Administration would have to make equivalent amendments to its own natural mineral waters regulations to mirror that policy position; the devolved Administrations are currently deciding whether to follow England in that policy option. The amendments made to EC regulation 1830/2003 on the traceability and labelling of genetically modified organisms will apply to the UK, but the amendments to reflect and respect decisions on their release and marketing are a devolved matter in Scotland and Wales and a transferred matter in Northern Ireland.

We have consulted extensively, listened to stakeholders and reflected their views in the SI. Policy decisions on natural mineral waters were subject to a public consultation, which ran from 16 October to 13 November last year. DEFRA engaged all major stakeholders in the process throughout 2018, from individual companies to industry bodies. We have also written to the main stakeholders to explain the instrument’s implications.

With respect to spirit drinks, DEFRA maintains ongoing engagement with key stakeholders such as the Scotch Whisky Association and the Wine and Spirit Trade Association. A four-week public consultation on geographical indications, including for spirit drinks, ran from 4 October to 1 November last year. DEFRA has raised stakeholder awareness of the food labelling technical notice published on 24 September 2018 and has undertaken a consultation on amending food labelling laws. We have also consulted on new GI scheme rules, including for wine.

In January, DEFRA engaged with parties with an interest in genetically modified organisms on the amendments contained in the instrument. We have carried out extensive engagement on animal trade and pet travel. To date, the Department has engaged with more than 300 importers, covering 50 events; it will continue that engagement in the coming weeks.

These measures are essential to ensuring that the six policy regimes I have set out remain able to operate once the UK leaves the EU. For all regimes except natural mineral waters, the instrument will make technical or operability corrections to ensure that those regimes continue to function as intended. I commend the draft regulations to the Committee.

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[David Rutley]

I am grateful to the hon. Member for Stroud for his characteristically thoughtful contribution. I mentioned that the SI is purely technical and operability correction oriented, and it is important to recognise that. Although he raised concerns about bundling, I think he appreciates the sheer weight of SIs we need to get through. Certainly, both Opposition and Government Members have very kindly helped to facilitate that. The good news is that we are making good progress.

[Thangam Debbonaire (Bristol West) (Lab)]

The Minister says we have to get through these SIs. We had some time to get through them. They were all utterly predictable, but the Government have left them all until the very last minute. We are trying to get through 27 in the next 14 days, which in my view is utterly reprehensible.

[David Rutley]

I thank the hon. Lady for setting out her views so clearly. I just wish she would speak a bit more clearly so we could understand her views completely. Her concerns are understood, but we are in challenging circumstances. All I can do is commend, as I have before, the incredibly hard work of officials in the devolved Administrations and the Department for Environment, Food and Rural Affairs. I know she does not suggest this is not the case, but they have been working at pace. I have been working with them—sometimes trying to encourage greater speed and sometimes trying to keep up with them. The good news is that we are definitely through the vast majority of the SIs. There are several more to do, as she says, over the next few weeks, but when you are having this much fun, you just want to carry on, surely?

[Stella Creasy (Walthamstow) (Lab/Co-op)]

Given the concern that we could see statutory instruments referring to, as my hon. Friend the shadow Minister said, issues as broad as the production of wine and of horse semen, and the import and export of both, does the Minister not recognise that sometimes “more haste, less speed” is a worthwhile principle in making good legislation, even on something as difficult as this, and therefore that the problem with trying to push through so many statutory instruments at short notice is that we could miss things that are important to vital industries in this country, including equine and vinery services?

[David Rutley]

I thank the hon. Lady for her point. I understand we are covering a lot today, but—perhaps I need to do better at communicating this; I will try once more—the draft regulations are about transferring powers. There is a clear theme. The regulations are about technical operations, and I hope that has come through at least to some degree in the comments that have been made.

With the Committee’s permission, I will move on to some of the more detailed points that the hon. Member for Stroud raised. On animal imports in relation to the effect of leaving the EU on the animal trade and pet travel more generally, I want to reassure him that DEFRA has carried out extensive engagement on imports of animals and animal products. Even where consultation has not been required, there has been extensive engagement: the Department has engaged with over 300 stakeholders to date, with 50 events on this, so there has been close co-operation.

The hon. Gentleman also talked about impact assessments. As he knows, because we have been through this many times before—I am getting a glare from the hon. Member for Bristol West—

[Thangam Debbonaire]

I am smiling.

[David Rutley]

No, it was a glare. Yesterday we had an SI Committee and were able to set out clearly what the costs were—very minimal, in that situation—regarding veterinary medicines. In this situation, these changes are minimal.

On food labelling, there will be changes, but through representation and our engagement with the food and drink sector it was clear that we needed to find a sensible transition to the new arrangements, where there would be at least 21 months and, with GI, three years to transition. As a result, the costs involved are very minor.

Based on guidelines, there was no need to conduct a formal impact assessments, but once again I can assure the hon. Gentleman that there was maximum engagement with those bodies. Indeed, I meet the Food and Drink Federation, the British Retail Consortium, UKHospitality and the National Farmers Union every week to ensure that I am fully aware of their concerns about issues such as this and many others.

[Sir John Hayes (South Holland and The Deepings) (Con)]

I have been listening to the Minister with interest and concentration, but the truth is that cathartic change always brings about challenge, and it is a cathartic change that we are going through. He is right to say that in the particular case of this SI, the change is minimal, and the future will look much like the past. On the issue of cost, however, it may be that the reconcentration on what we do allows us to think through the cost-effectiveness of that. Over time, we may be able to do all kinds of things, in my hon. Friend’s Department and others, that will be more cost-effective and efficient and will save money. All this discussion about costing money must be balanced against the advantage of that re-examination of how to do things best and most efficiently.

[David Rutley]

I completely agree that there are opportunities to see how we can do things better and in a more cost-effective way. We will have that opportunity once we leave the EU. At the moment, this is very much about continuity; we can look forward to those opportunities, but I wanted to reassure colleagues that for now, this is about continuity and keeping things as they are. In future there will be opportunities to review, obviously with parliamentary scrutiny.

A number of concerns were raised about GM crops, but again, all we are talking about here is transferring powers. No GM crops are grown in the UK, as I said in my remarks at the beginning. I want to ensure my words are on record clearly: no GM crops are grown in the UK at the moment and none is anticipated. Decisions to approve the commercial cultivation of GM crops are based on a robust and independent science-based assessment, with the planting of GM crops agreed to only when it is clear that people and the environment will not be harmed. We do not have any intention to relax the regulations after we have left the EU. As I said before, no future GM crop is anticipated in the UK. I hope the hon. Member for Stroud is reassured on that. The good news is that we have the scientific expertise to ensure that all the required analysis can be conducted.

With regard to border inspection posts and the concerns raised by the British Veterinary Association, with whom the hon. Member for Stroud has a clear and trusted relationship, we are working closely with BVA, seeking its feedback, input and support to ensure it is ready for the extra volume of export health certificates and preparations for the border inspection posts. There will be no import controls or checks at the border for live animals and animal products directly from the EU on the day the UK leaves the EU. The exception to that rule is animals, animal products and high-risk food and feed not of animal origin coming from third countries that travel through the EU before arrival in the UK.

Clearly, we will continue to monitor the situation, but on day one the risks do not change because we trust the EU regime. We have been part of it for many years, which is why I believe we are in good shape. By transferring these powers, we will be in the right position come EU exit day. Overall, the six regimes will continue to function in a similar way to before and, for the reasons I have set out, I trust the Committee will support the regulations.

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[David Rutley]

I thank my right hon. Friend for his late, but powerful, intervention. I know he feels passionately about such issues. I agree that we do need a wider review of food labelling and we are committed to doing that once we have left the EU. He will know, because he follows these issues with interest, that we are already looking to reassert and strengthen our approach with allergen labelling, following the recent tragic cases. That will help during the period we are entering, whether that is no deal or a transitional implementation period. There is a commitment once we leave the EU to a much wider review of labelling, which will focus on food safety, sustainability and welfare standards, and will address many of the issues that concern him. I welcome the chance to talk to him further on that. With that, I again commend the regulations to the Committee.

Question put and agreed to.

Resolved,

That the Committee has considered the draft Environment, Food and Rural Affairs (Amendment) (EU Exit) Regulations 2019.