Exiting the European Union (Agriculture)

David Rutley Excerpts

Monday 18th March 2019 Commons Chamber

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

I beg to move,

That the draft Organic Production (Control of Imports) (Amendment) (EU Exit) Regulations 2019, which were laid before this House on 13 February, be approved.

[Madam Deputy Speaker]

With this we will consider the following motion:

That the draft Organic Production and Control (Amendment) (EU Exit) Regulations 2019, which were laid before this House on 13 February, be approved.

[David Rutley]

These statutory instruments are made under the European Union (Withdrawal) Act 2018 which incorporates EU law into UK domestic law on exit. This Act also gives powers to the UK to make amendments to the retained law to make it operative. One of the things these instruments do is take powers currently held by the Commission and transfer them to the appropriate Ministers in the UK.

These instruments are grouped as they both relate to amendments to EU organic legislation, namely Council Regulation (EC) No. 834/2007 on organic production and labelling of organic products and Commission Regulation (EC) No. 889/2008 laying down detailed rules for the implementation of Council Regulation (EC) No. 834/2007, with regard to organic production labelling and control, and Commission Regulation (EC) No. 1235/2008 laying down detailed rules for implementation of Council Regulation (EC) No. 834/2007 as regards the arrangements for imports of organic products from third countries.

I should make it clear that the instruments do not make any changes to policies; they are purely technical in nature. They correct technical deficiencies in organics legislation to ensure it remains operable on exit and to preserve the organic standards of the current regime. The Government are strongly supportive of organic standards, many of which were developed in the UK and adopted by the EU. The UK has a world-recognised standard of food production and labelling which we wish to see maintained.

The UK organics industry is currently regulated by EU law, which sets out standards for organic production. Regulations apply to the production of food, animal feed and livestock, including bees and farmed fish, marketed as organic. The regulations set out the requirements for organic production, processing, labelling and imports as well as the inspection systems that must be in place to ensure the requirements are met. They stipulate that organic food must be inspected and certified within the scope of a tightly regulated framework and originate from businesses registered and approved by organic control bodies on the basis of a rigorous annual inspection.

The UK has over 6,000 organic operators and the sector is worth over £2.3 billion in the UK economy. Many operators are farmers and small and medium-sized enterprises. Indeed, the Soil Association reports that in 2018 the organic sector was worth £2.3 billion to the UK economy, with organic sales increasing by 5.3% in 2018. The market is in its seventh year of growth. Home delivery of organic produce through online and box schemes is growing fastest, at 14.2%, and independent retailers maintain strong sales of organic, with sales increasing by 6.2%. Key categories driving growth in the market are beers, wines and spirits and chilled foods, and in 2017 exports are estimated to be worth £225 million, excluding food from other processing and animal feed. Ambient grocery products, which include tinned and packaged food, are the largest export.

The first instrument, the Organic Production (Control of Imports) (Amendment) (EU Exit) Regulations 2019 makes operable retained EU legislation in Council Regulation (EC) No. 834/2007. Commission Regulation (EC) No. 889/2008 and Commission Regulation (EC) No. 1235/2008 deal with reserved measures covering imports and trade in organic food, feed and vegetative propagating material or seeds for cultivation. For example, the instrument transposes powers from the Commission to the Secretary of State to recognise countries and control bodies that can operate for the purposes of export to the UK. Organic control bodies in third countries will be able to apply to the UK to be recognised to certify products from around the world to import to the UK.

The instrument also sets out minor technical amendments and maintains the status quo until 31 December 2020. To maintain the status quo, this SI gives recognition to certified organic products imported from the EU, the EEA and Switzerland for 21 months. The instrument also applies for the same period of time limit during which the UK would not require additional border checks for organic products imported from the EU, EEA and Switzerland.

[Bill Wiggin (North Herefordshire) (Con)]

My hon. Friend will, I hope, come to this later in his speech, but how will we ensure that the standards of our organic farmers in the UK are not undermined if we are not overly attentive of what is being shipped in at the borders?

[David Rutley]

My hon. Friend can be assured that we are in no way seeking to water down our standards. We will no doubt talk further about that during the rest of the debate.

The approach that I have referred to responds to industry concerns and helps to maintain continuity, ensuring a flow of products. The organic regulations will now apply to imports at UK borders rather than EU borders and will ensure the continued regulation and certification of imported organic products to the standards currently applicable in the UK—I underline that point. The import system allows traceability of each product at all stages of production, preparation and distribution. This gives consumers confidence that imported organic products have been produced to the same high standards as UK organic produce.

The draft Organic Production and Control (Amendment) (EU Exit) Regulations 2019 ensure that organic standards remain the same for organic operators within the UK by making operable EU legislation in Council regulation 834/2007 and Commission regulation 889/2008. Without these amendments, part of the legislation would not be operable when applied in a UK-only context—for example, references to the UK as a member state. The certification and traceability of organic food and feed products will continue and standards will remain the same. This instrument sets out minor technical amendments. It also references the time-limited period of 21 months during which we would not require additional border checks for organic products being imported from the EU, European economic area and Switzerland.

The first set of regulations concerns reserved matters, as these regulations relate to the control of imports and exports. The second set concerns devolved matters. That is why we have two SIs before us today. Although there is no formal duty to consult as there are no substantive changes to the status quo, we have engaged with the United Kingdom Organic Certifiers Group, UKOCG, and from that engagement it is clear at the outset that the UK organic control bodies are particularly concerned about continuing recognition of UK certified organic products by the EU and recognition of EU imports by the UK. Our decision to continue to recognise products from the EU, EEA and Switzerland for a time-limited period has been welcomed by the group as it provides certainty on imports for the immediate future. We continue to work closely with the group on this and on the future implementation of the UK regulations.

These statutory instruments apply to the United Kingdom, and we have worked with the devolved Administrations on their development. Officials have had very helpful discussions with their counterparts in the DAs, and we are working with them on all aspects of the organics regime to form an agreement on how we can all work together moving forward.

[Jim Shannon (Strangford) (DUP)]

The Minister is probably aware that concern has been expressed by some agri-food companies in my constituency, although perhaps not those in the organic business, about packaging, labels and access to those things. There seem to be some delays either from the Department of Agriculture, Environment and Rural Affairs in Northern Ireland or the Department for Environment, Food and Rural Affairs here in London. They are asking what food stamp they will have to have on their packaging so that they can export their products. There is some cloudiness or mystery about exactly what that will be. Can the Minister clarify where we are?

[David Rutley]

I understand, I think, the hon. Gentleman’s point, in the sense that there are a number of labelling issues, as he appreciates—I know he is an expert in these matters. I think the point he is making is about the EU logo, which is mandatory for all products packaged in the EU. In the event of no deal, such products should not use the EU organic logo, but producers can continue to use the logos of their organic control body and certification code and sell in the UK and in countries that have agreed that the UK has sufficiently similar organic standards. That said, as he knows, there are still issues—I have no doubt that Members will speak about this—to do with the EU’s recognition of UK organics. There are issues with labelling that I can take up with him in more detail separately.

I will now wrap up my initial remarks, hear what other Members have to say and come back to these points in more detail. These measures remain essential to ensure that UK organic businesses can maintain their organic certification. These statutory instruments will ensure that the strict standards in place for organic production are maintained when we leave the European Union. I commend them to the House.

--- Later in debate ---

[David Rutley]

This debate has been interesting; I think we should do it more often at this hour. I will keep this short, because my good friends in the Whips Office are giving me the evil eye—I always want to ensure that I do what they want—and I know that Madam Deputy Speaker is keen for us to move quickly on.

We have had some fantastic contributions, not least from my hon. Friend the Member for Taunton Deane (Rebecca Pow). I did not know about her involvement with “Loads More Muck and Magic”, but clearly we have some real talent and expertise on this subject in the House, for which we are grateful. We also heard the enthusiasm of my hon. Friend the Member for North Herefordshire (Bill Wiggin).

I want to reassure the hon. Member for Totnes (Dr Wollaston) that there will not be a free-for-all. In my brief comments, I hope I can reassure her, the hon. Member for Stroud (Dr Drew) and others who raised concerns about this issue. We are committed to ensuring that the UK maintains its high standards for organic production and retains a strong testing regime for organic goods. The hon. Member for Stroud talked about control bodies. They will continue to certify operators as they do now. They are all accredited by the United Kingdom Accreditation Service as suitable to be a certification body, and that important work will continue. Before the UK accepts any applications from third countries or control bodies, rigorous checks will be carried out to ensure that the current high organic standards in the UK will be maintained.

Comments have been made about TRACES. We are replacing the TRACES NT import system, which is different from TRACES, with a manual system for an interim period for organics, until an electronic replacement is available. The manual system mirrors the one that was in place 17 months ago. A trial with a number of importers, with support from port health authorities, is being carried out to refine guidance, and it will help to ensure a smooth transition. We are looking at autumn 2020 for the electronic replacement.

There are of course opportunities ahead, not least because my hon. Friend the Member for Camborne and Redruth (George Eustice) was the Minister of State. He was an illustrious Minister of State, which is probably an understatement, given that he was in post for five years. He carried out really important work to set out the framework for the Agriculture Bill. I am really pleased to have sitting beside me his successor as the Minister for Agriculture, Fisheries and Food, my right hon. Friend the Member for Scarborough and Whitby (Mr Goodwill)—another outstanding Minister—who is just back in the Chamber, hotfoot from the EU Agriculture Council meeting today. The Agriculture Bill sets out how farmers and land managers will in the future be paid for public goods, such as better air and water quality and improved soil health. All of this will help the organic sector to move further forward.

We are working with organic and control bodies, and we have been holding technical discussions with the European Commission about the UK’s organic third-country recognition and to explore routes to help to ensure that UK organic products can continue to access the EU market. I recognise the fact that we have heard from both the former Minister of State and the current Chair of the Environment, Food and Rural Affairs Committee, and I hope that the EU will be listening to their very wise words.

We had a wide-ranging—and wide, I would say—speech from the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry). [Interruption.] No, not him, but his comments. He made points about devolution, but these statutory instruments apply to the United Kingdom, and we have worked with the devolved Administrations on their development. Officials have had very helpful discussions with counterparts in the devolved Administrations, not least in the Scottish Government—I was up there speaking to one of the Ministers about this—and we are working with them on all aspects of the organics regime to form an agreement on how we will all work together. I thank them for their work on these important statutory instruments in recent months.

I conclude by saying that, for the reasons I have set out, I commend these statutory instruments to the House.

Question put.

The Deputy Speaker’s opinion as to the decision of the Question being challenged, the Division was deferred until Wednesday 20 March (Standing Order No. 41A).

Motion made, and Question put,

That the draft Organic Production and Control (Amendment) (EU Exit) Regulations 2019, which were laid before this House on 13 February, be approved.—(David Rutley.)

The Deputy Speaker’s opinion as to the decision of the Question being challenged, the Division was deferred until Wednesday 20 March (Standing Order No. 41A).