Draft Food and Drink, Veterinary Medicines AND RESIDUES (amendment ETC.) (EU Exit) Regulations 2019

Deidre Brock Excerpts

Wednesday 20th March 2019 General Committees

[Deidre Brock (Edinburgh North and Leith) (SNP)]

Like you, I am sure, Mr Austin, I have sat on what feels like hundreds of these Committees where the purpose of the secondary legislation has, by and large, been writing back into UK legislation provisions that are being lost as a result of Brexit. This SI is an unfortunate exception, as it fails to maintain the provisions that protect our food and drink sector in trade deals around the world.

The EU’s protected geographical indicators have helped to protect the branding of our food and drink products. They have helped producers here to market their goods across the EU and wherever the EU has done trade deals, and they protect our overseas and domestic markets against cheap and inferior imitations. Cornish pasties cannot be made in Paris, Arbroath smokies cannot come from Budapest, Caerphilly cheese is always Welsh, and Comber new potatoes have to come across the sea from Northern Ireland. The same goes for Scottish salmon —both wild and farmed—Stornoway black pudding, Scotch beef, Scotch lamb, Orkney beef, North Ronaldsay sheep, Shetland lamb, native Shetland wool, Orkney cheddar, and of course whisky.

Scotland has one in six of the UK’s protected products, so Scotland, I am afraid, is once again being unfairly penalised by a Brexit we never voted for. Those protected products are also some of our most lucrative: our top food export is salmon, and our top drink export is whisky. Without the economic muscle and political might of the EU protecting those products around the world and across the EU, there is a real danger that their market share will slip and income from them will decline, with jobs and businesses at risk. All of that will be on top of losing the easy access to the EU market that we currently enjoy. The UK simply does not have the clout to protect those products in the way that the EU does.

There are also, I am afraid, examples of UK Government Ministers—it is difficult to tell whether they are still Ministers, but they are certainly Ministers who have served under the current Prime Minister—saying that some of those protections would be used as bargaining chips in trade negotiations. When giving evidence to a Holyrood committee in September, the then Minister for Trade Policy—he might still be Minister for Trade Policy; I am not sure—said:

“The GI issue is not…straightforward”

and that some countries see these protections as “barriers to trade”. That is why it is so worrying that this dubious piece of legislation gives up the protection of the EU system in favour of a system dreamed up by someone who has delusions of UK adequacy, but no grounding in what our food and drink sector will need to survive and thrive. I have absolutely no idea why anyone thinks it is a good idea to give up using the EU system, which we could have continued to participate in after Brexit, in order to try to build one of our own, which will at best be a pale and powerless shadow of the former.

We are lucky that the EU sees those trade protections as important, and will continue to respect UK indications after Brexit. The downside is, of course, that it will not enforce UK indications in third countries with which we have trade deals, and it will insist on the UK recognising EU protections. I quote a written answer given by President Juncker to a question lodged in the European Parliament:

“The European Union schemes for the protection of geographical indications…within the European Union territory apply, without discrimination, to European Union and non-European Union GIs.

After leaving the European Union, the United Kingdom…is expected to protect the GIs of EU-27 according to its domestic legal order and in compliance with its international obligations, including those of the World Trade Organisation (WTO). The same will apply in the European Union in respect of UK GIs.

It remains to be determined in the framework of negotiations whether any specific measures or agreement for the protection of GIs between the EU-27 and the UK would be appropriate following the United Kingdom's withdrawal.”

Admittedly, that was in September 2017, but attitudes in Brussels may no longer be as forgiving as they were, after the recent shambles.

We are walking away from a perfectly decent and fully functional set of protections to set up a whole new system for protections that cannot be as effective, will never be as powerful and will not have the reach or influence to do the job—it will not be as good but we will have our own system to do it. How ironic that those who complained the loudest about EU red tape are now setting up whole new bureaucracies in the name of taking back control. It is like a “Carry On” film. The SNP cannot support the regulations and I cannot allow them to pass unchallenged with anything like a clear conscience. I will be pressing them to the vote and voting against them.

--- Later in debate ---

[David Rutley]

I will get back formally to the hon. Gentleman on that point, but my understanding is that the court can appoint experts to help with particular issues. It is important to recognise that this SI also introduces additional appeals provisions as a result of the UK assuming the responsibility and functions previously belonging to the EU. In short, a person who thinks that the Secretary of State has got a decision or application wrong can go to this first tier tribunal to appeal against that decision. The appeal processes will cover all four regimes: agri-foods, wines, spirits and aromatised wines. The appeal provisions ensure that we comply with our obligations under the European convention on human rights. I will get back to the hon. Gentleman on his specific point.

A number of points were made about geographical indications. The hon. Gentleman asked when the three-year period would start. It will start from the day of exit. The whole point of having a three-year period is to enable time for the producers to adjust themselves and their packaging to the new situations. Protection of UK GIs in the EU will continue automatically after exit. They have been through the EU scrutiny process and they have earned the right to their place on the EU’s registers. To remove UK GIs from its registers, the EU would have to change its rules. If the UK GIs are removed from the EU registers, the Government will support UK GI holders in reapplying for EU GI recognition.

The key point here, certainly from the Government’s perspective, is that we should not lose sight of how important securing a deal is, for some of the very reasons we are talking about here, but we have processes in place should we find ourselves in a no-deal scenario.

[Deidre Brock]

Can the Minister give us a little more information about how long reapplying to the EU to be on that register would take, and what kind of support he will give businesses to do that? Businesses have told me they are worried about the length of time and the cost involved before they can be back on that register.

[David Rutley]

With the hon. Lady’s permission, I will return to that point in a minute. I am sure I will get some inspiration to answer those points specifically, and if not, I will write to her.

I have answered several questions on the situation that we find ourselves in. I think that the hon. Member for Edinburgh North and Leith made an important point about Scotch whisky. When I was appointed to this role, one of the first things I did was to meet with the Scotch Whisky Association in Edinburgh, to understand its views on the matter. As she rightly said, it is vital for our export business, for the Scottish economy and, of course, for the UK economy as a whole. I respect the important work that it does.

As I said, the protection of UK GIs will continue in the EU, unless and until the EU decides to change its rules to remove UK GIs.

[Deidre Brock]

I made a point about third countries in future trade deals and how protections might be dealt with in those circumstances. I am thinking particularly of evidence that we received in the Scottish Affairs Committee from Dr Maria Garcia of the University of Bath. She used Scottish whisky as an example. She said:

“Recognition of Scottish whisky and protection of that GI in trade negotiations will be much more difficult for the UK acting alone. It will have much less success, probably, in getting its demands met, than it would as part of the EU.”

What assurances can the Minister offer Scottish whisky producers and all the other people who are part of the PGI system in the UK that they will be protected in those sorts of trade deals in the manner needed?

[David Rutley]

I understand the hon. Lady’s point. The Government are working with their global trading partners to transition EU free trade agreements and other sectoral agreements. That includes commitments on the recognition and protection of UK GIs. We are working to have bilateral agreements in place, ready for when we need them. If there is no deal, the Government will seek to bring into force bilateral agreements from exit day, or as soon as possible thereafter.

We have already signed a trade continuity agreement with Switzerland to continue trade worth £32.1 billion in 2017. We also signed a mutual recognition agreement for certain wines and spirits with the USA that will guarantee ongoing protection for Scotch whisky there. The UK has also signed trade continuity agreements with Chile, the Faroe Islands, Palestine, Israel and eastern and southern Africa states.

I can now answer the request for more information on the time and support available. An application could be made very quickly or old applications could be largely recycled. It is not possible to say how long the EU would take to consider an application but the UK would not charge any fees and nor does the EU. We would want to support businesses and work with them. I can talk to the hon. Member for Edinburgh North and Leith afterwards about some of the details because she has raised some important points.

To conclude, the Government are committed to ensuring effective arrangements are in place to protect GIs in the UK after we leave the European Union, enabling new registration to take place. The instrument is essential to achieve that. There are no substantive policy changes and only minimal modifications from the current EU regime. It includes the UK assuming powers that had been undertaken by the European Commission.

The instrument ensures continued levels of protection for this collection of GIs and assures consumers that they will still be able to procure products that meet the high standards to which they are accustomed. For those reasons, I commend the legislation to the Committee.

Question put.