Draft Food and Farming (Amendment) (EU Exit) Regulations 2019 Debate

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Department: HM Treasury
Deidre Brock Portrait Deidre Brock (Edinburgh North and Leith) (SNP)
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It is a pleasure to serve under your chairmanship, Mr Gray. I have concerns about the geographical indications for spirits. To be honest, I have concerns about the Government’s generally cavalier attitude to protected products and about the adverse effects that it may have as we plunge down the Brexit cliff towards the waiting rocks.

Specifically, I have concerns about the explanation offered in the explanatory memorandum that spirit drink geographical indications for products from the EU27 nations will be gone after Brexit and that we will retain only the UK ones. Why would that be considered a good thing? It is better for consumers here to know that the drinks they are consuming—especially alcoholic drinks—are the genuine article. If someone in Leith fancies a Calvados after dinner, they should be confident that it is Calvados, just as they would be confident in a good Scotch.

That decision is especially strange alongside the decision to recognise spirits from the US and the stated intention to recognise two Mexican spirits when negotiations are complete. That seems so strange that there must be some intent behind it. Is there something that has not been made clear to us that would necessitate such a specific diminution of the relationship with EU spirits producers and such a specific improvement in the relationship with US producers?

The curiosity of that anomaly is not lessened by the notes on engagement at the end of the explanatory memorandum. Under the GMO bit, there is a fair deal of engagement with companies interested in developing GMOs, with “establishments”—a strange word to use—interested in researching them, with NGOs and with environmental campaign groups. On wine, the devolved Administrations were involved in the detailed drafting and the provisions in the regulations, and industry and producer stakeholders were kept informed. On direct payments, stakeholders in England were consulted. On spirit drinks, though, the full text says:

“Defra has engaged with industry throughout the development of the new replacement regulation for 110/2008, and although no formal consultation has taken place with industry or the Devolved Administrations, stakeholders have been kept informed of progress.”

Why was there no formal consultation? Why was there no involvement of the devolved Administrations in the detailed drafting? Scotland, after all, has the bulk of the distilling industry, including 70% of the gin distilled in the UK. I very much hope the Minister will offer us an explanation for this strangeness and some greater insight into why such an asymmetrical decision has been taken.

I also wonder what effect this approach will have on our own spirits that are sold in the EU27 after we leave. Is whisky’s protection going to be diminished? Will Plymouth gin lose its protection in the EU? There is also a huge list of spirits drinks—nine full pages of the list in the EU regulation—that will no longer be protected in the UK. Will we now be open to poor-quality imitations?

Much of this SI seems fairly straightforward, but this issue needs some serious explanation before we are asked to approve the regulations. What is the rationale behind what appears to be a very strange idea?

David Rutley Portrait David Rutley
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I thank hon. Members for their contributions. We have discussed some of these issues in similar Committees before.

In response to the hon. Member for Stroud, who made points about the view of the House of Lords sifting committee on this particular SI, it is worth noting that this SI was laid, as I said, under the negative procedure, and it was then recommended that it be laid under the affirmative procedure. That is what we have done and, clearly, we are debating it today.

Again, I just want to point out that the suite of legislation on geographical indications under the EU withdrawal Act confers new duties on the Secretary of State; that is in consequence of the Secretary of State taking on functions from the European Commission as a result of withdrawal. However, it is not the instrument that we are considering today that confers new legislative duties. For spirit drinks, for example, that was the Environment, Food and Rural Affairs (Amendment) (EU Exit) Regulations 2019, which we debated earlier this month. This instrument confers only administrative functions on the Secretary of State from the EU Commission.

The hon. Gentleman asked about costs. As I said in my opening remarks, there are no legislative duties being imposed on the Secretary of State by this instrument. In terms of the administrative duties that result from this instrument, there are no costs associated with those duties.

The hon. Gentleman asked about scientific advice particularly around GMOs. At the moment, decisions on things such as commercial cultivation of GM crops and the marketing of GM products are taken at EU level, with each member state having a vote, and the European Food Safety Authority issues an opinion on the application. For the UK, that EFSA opinion is considered by the Advisory Committee on Releases to the Environment, a statutory body of experts that provides Ministers with independent scientific advice that informs UK votes. If we are to leave, EFSA opinions are publicly available, so we will continue to have access to them. ACRE will continue to have a role in advising the UK Government on applications made to, for example, grow a GM crop in the UK. The final decision will be taken away from the EU and made in the UK.

The hon. Member for Edinburgh North and Leith made some important points, particularly on spirit drinks, and we have discussed some of them before. She asked about the consultation that has been going on. I assure her we have a very strong relationship with the industry, through the Scotch Whisky Association. I was fortunate to meet the SWA in Edinburgh last November. That visit was one of the first things I did when I was able to get time away from the estate. We have a close dialogue with the Scotch whisky industry.

We recognise the geographic indication of Scotch whisky is pivotal to the industry and vital for the UK economy and the Scottish economy as well. We have not yet announced a decision on how EU GIs will be treated if the UK leaves the EU without a withdrawal agreement in place. The UK is not obliged to protect EU GIs after exit. The Government look forward to negotiations on the UK’s future economic partnership with the EU, during which we will be able to discuss the relationship between the UK’s new GI schemes and the EU schemes. In addition, we will warmly welcome any application from member states of the EU27, as we would from producers in the UK or from other countries around the world.

Deidre Brock Portrait Deidre Brock
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Is the Minister saying that current protections for those spirit drinks from Europe, which we have recognised up to this point, are no longer guaranteed to continue, and that it is very much dependent on negotiations?

David Rutley Portrait David Rutley
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I will reiterate what I said, because these are important matters: the UK Government have not announced how EU GIs will be treated if the UK leaves the EU without a withdrawal agreement in place. I also said that we look forward to further negotiations on the UK’s future economic partnership with the EU. All these things will be considered in that round.