Draft Livestock (Records, Identification and Movement) (Amendment) (EU Exit) Regulations 2019 Debate

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Department: HM Treasury
David Rutley Portrait The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (David Rutley)
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I beg to move,

That the Committee has considered the draft Livestock (Records, Identification and Movement) (Amendment) (EU Exit) Regulations 2019.

Mr Howarth, it is, as always, a pleasure to serve with you in the Chair. The European Union (Withdrawal) Act 2018 enables the Government to provide continuity and legal certainty by bringing EU legislation into UK law as retained EU law and to fix any legal deficiencies in the retained texts that exist as a consequence of EU exit.

The statutory instrument makes operability amendments to retained EU legislation on the identification and traceability of livestock, especially for cattle—all bovines—sheep and goats, so that it continues to function correctly on our statute book after the UK exits the European Union. Pigs are not mentioned in the SI, because EU legislation on pig identification and traceability has been fully transposed into UK law, as it originated in a European Community directive.

EU legislation in this area consists of an EU Council regulation for bovines, and one for sheep and goats. Underneath them sit Commission regulations or decisions that set out more technical details. In summary, the Council regulations prescribe regimes to help to control disease outbreaks by ensuring that the movements of farmed bovines, sheep and goats can be traced. To do that, they say how and when animals are identified, what records their keepers shall maintain and when they must report movements to a competent authority. The Commission regulations that sit below them address such details as criteria for selecting farms for compliance inspections, rules on ear-tagging and passports for bovines, and technical standards for electronic ID tags used for sheep.

I should make it clear that the changes being made to the retained law are technical operability changes. They include such matters as changing references to “Member States” to “the appropriate Minister” or to “the United Kingdom”, “Community rules” to

“rules set out in retained EU direct legislation”

and so on.

The EU legislation to be retained is directly applicable in each member state. As animal health policy and its delivery are a devolved competence, each territory of the UK enforces them via its own separate existing SIs, and will continue to do so with the retained law. The devolved Administrations were fully involved in the preparation of the instrument, and their Assemblies have consented to its being made.

I should also emphasise that the SI does not introduce new policies. The current rules that livestock keepers or businesses must comply with will be unchanged by the SI. The UK Administrations have plans to modernise our respective livestock traceability systems and rules over the coming years—for example, to make them more digital. That work is not affected by the content of the SI, which is about maintaining the status quo.

I will now address points made about the SI by the Committees that sifted it as a negative procedure SI in December: the Commons European Statutory Instruments Committee and the Lords Secondary Legislation Scrutiny Committee. Both Committees considered that it met the requirements to be changed to an affirmative SI, because they saw it as conferring significant new legislative functions on Ministers and allowing Ministers to charge for certain controls.

On the first point, the Committees considered amendments made by the SI as conferring new legislative functions on Ministers in the UK, in the Department for Environment, Food and Rural Affairs or in the UK devolved Administrations. In practice, animal health policy is a devolved competence in the UK. How that function is exercised is therefore already a matter for devolved Ministers. The changes made by the SI simply clarify that the delivery of livestock ID and movement functions will, as now, be for the appropriate Ministers in the UK: the Secretary of State at DEFRA, Welsh and Scottish Ministers, or Ministers in the Department of Agriculture, Environment and Rural Affairs in Northern Ireland.

The transfer of legislation-making functions—the ability to make policy changes in the future—from the Commission to appropriate Ministers in the area of retained animal health law is effected by a different affirmative SI, which some of us may remember, that was approved by this House on 27 February: the Animals (Legislative Functions) (EU Exit) Regulations 2019.

David Rutley Portrait David Rutley
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The hon. Member for Bristol West shows how assiduous she is in her duties by remembering that SI. Excellent! That is particularly good at such an early hour in the morning in Parliament.

On the second point, both Committees noted that the draft SI contains a charging power, with the Commons sifting Committee noting that Regulation 4(12) has the effect of allowing Ministers to charge to cattle farmers the costs of systems set up to identify and register cattle and trace their movements. I simply note that although that possibility is set out in article 9 of the retained Council regulation on the identification and registration of bovines, charging for those controls is not the policy of present and past UK Administrations. There are no plans to make it so.

The power to make EU exit SIs exists to fix deficiencies in retained law that there would otherwise be as a consequence of EU exit. The existence of the charging power is not such a deficiency. The change that article 4(12) of the draft SI makes to that provision is to change the term “Member States” to “appropriate Minister”. The SI has also been considered by the Joint Committee on Statutory Instruments, which has made no observations on it.

Key stakeholders, including farming unions and sector bodies, were informed in the early stages that this instrument was being prepared. None has commented on drafts of the instrument during its preparation. Given that it is concerned simply with ensuring that the retained EU legislation is operable, and as the changes it makes entail no changes to the day-to-day rules that keepers comply with or to the systems they use to record and report movements, that is understandable. The stakeholders have been much more focused on, and involved with, our plans to develop our livestock movement tracing systems over the next few years but, again, they are not part of the SI. An impact assessment has not been produced for the draft instrument, as it will have no impact on the livestock or other sectors.

The SI will ensure that the law on livestock identification and traceability, as retained, will continue to function correctly after we leave the EU. For the reasons that I have set out, I commend the draft regulations to the Committee.

--- Later in debate ---
David Rutley Portrait David Rutley
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I thank hon. Members for their contributions. A number of important points have been made. Yes, these are minor technical changes but they come against a landscape of important Government policy, so I take seriously all the issues raised. I reassure Committee members that these changes are very technical: they do not change the day-to-day processes that keepers currently have to comply with.

I reassure the hon. Member for Stroud that the SI does not change powers that already exist. The Government have no plans to change the balance of funding between the taxpayer and the industry, except in the matter already announced: sampling fallen stock for transmissible spongiform encephalopathy, or TSE. That accounts for about £15 a year on average for farmers.

The hon. Member for Argyll and Bute asked why the ability to charge was being transferred across. We are trying to maintain continuity in the law and to minimise the number of changes; we want to make only changes that need to be made. I reassure the hon. Gentleman again. As I said on my opening remarks, what he mentioned is not the current policy of present or past UK Administrations and devolved Administrations, and there are no plans for it to be. The issue is continuity.

The hon. Member for Stroud was concerned about why pigs are not included in this statutory instrument. I reassure him—I did try to get this across in my opening remarks—that the operability fixes for domestic pig movement were in a negative SI that has already been approved. They have been taken care of in another piece of legislation.

The hon. Member for Stroud also asked about changes to beef labelling and timetables of bovine identification. The SI regarding changes to beef labelling references was approved yesterday. It is complicated: we are discussing several different SIs at any given point. The hon. Member for Stroud, and other Members, were concerned about a new database. We are working in partnership with the industry to improve animal health with a new database. We are working closely with industry partners on taxpayer-funded programmes, and we want to encourage our partners to share data. The system is in development. Our current systems remain in place, and both function for international trade, including with the EU.

Another issue raised by the hon. Member for Argyll and Bute related to the amount of consultation. There had been an active dialogue. I meet with the National Farmers Union every week along with other food industry trade bodies. They have been engaged in the early stages of this SI, but no issues came up because it is so technical. There has been much more active engagement on new plans for the future related to livestock tracking, and that might have been confusing. That relates to future plans, and is not included in this SI.

I am seeking inspiration so that I can answer the questions from the hon. Member for Plymouth, Sutton and Devonport. He will be pleased with my answer: could he please repeat the question? I think that means that I will come back to him in writing. I know that he takes these questions very seriously; rather than giving him an answer on the fly, I will give him a full answer, if that meets with his approval.

Luke Pollard Portrait Luke Pollard
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indicated assent.

David Rutley Portrait David Rutley
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I am very grateful for that. The hon. Gentleman asked a question about the date of the introduction of bovine electronic identification. The date comes from the EU Council regulation, and we have retained that date.

I think I have answered nearly all the questions—except for some; we will respond about the technical ones.

Brendan O'Hara Portrait Brendan O'Hara
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Very quickly, one question that the Minister has not answered is about the impact on the devolved Parliaments and the Welsh Assembly. Can he guarantee that there will be no impact in respect of agriculture?

David Rutley Portrait David Rutley
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That was an oversight on my part. I assure the hon. Gentleman that there will be no impact.

I am grateful to Committee members for their valuable contributions to the debate. To summarise, these regulations are making technical changes to ensure that existing EU law operates appropriately once we leave the EU. For those reasons, I commend the statutory instrument to the Committee.

Question put and agreed to.