Eggs (England) Regulations 2021

Earl Cathcart Excerpts

Tuesday 23rd November 2021 Grand Committee

[Baroness Ritchie of Downpatrick (Lab)]

My Lords, the Minister referred to paragraph 10.3 of the Explanatory Memorandum, which states that consultation

“was undertaken as a joint consultation with the Scottish Government and Welsh Government. Northern Ireland is not involved in these amendments, due to the effects of the Protocol on Ireland/Northern Ireland.”

I declare an interest as a member of the House of Lords sub-committee that is scrutinising the protocol on Ireland/Northern Ireland, and I have some questions in this regard. What does that mean in practice? Can eggs from GB be put on the market in Northern Ireland, and vice versa? Do these eggs have to be checked before they can be put on the market in Great Britain or Northern Ireland? That issue was raised by the Secondary Legislation Scrutiny Committee. Living in Northern Ireland, I am very well aware that Marks & Spencer and Sainsbury’s sell quite a lot of products that come from GB. What will the nature of these checks be? Where will they be carried out?

I support the protocol and believe in its sustainability, but perhaps the Minister can advise on progress in the ongoing negotiations on the protocol between the UK and the EU, with particular reference to the SPS arrangements. That was one of the “non-papers” from the EU in relation to this issue.

As this is a domestic statutory instrument, it falls to the Secondary Legislation Scrutiny Committee rather than our protocol committee to scrutinise it. What is the interaction between this statutory instrument and the protocol? Perhaps the Minister can give us some detail and clarity on that interaction and on the practical impact on the supply of eggs from GB to Northern Ireland and vice versa. As the noble Baroness, Lady McIntosh, said, eggs that travel from Northern Ireland to Britain enjoy unfettered access, so it would be good to get clarity on that.

It is important that the Government make a full analysis of the interaction of domestic primary and secondary legislation with the protocol. A lot of these statutory instruments come to us simply for information purposes, but we also get referred legislation from the EU that will affect and impact Northern Ireland on an ongoing basis. The Government have analysed the interaction of domestic primary and secondary legislation with the protocol. What has been done to ensure that that analysis takes place on an ongoing basis? If it is taking place, is it possible to publish the results and for a copy to be placed in the Library of both Houses?

[Earl Cathcart (Con)]

My Lords, we started out as an egg producer on our farm in Norfolk about 10 years ago. For the first few years, it was a reasonably profitable business, but as more farmers have come into the market that profitability has increasingly been reduced. It is all about supply and demand. As the number of producers has increased, margins have been squeezed. In the past few years, we have been seriously considering whether it is worth our while continuing in the business, but as we employ three local people and it is still just profitable, we have continued in the hope that egg prices will go up.

On the surface, these regulations look innocuous enough. They went out to consultation, and of the six respondents, who all look after the interests of UK food and egg producers, only one was prepared to agree with them. The other five argued that the checks should take place at the border. Many emphasised that this change should be reciprocated by the EU to benefit British egg producers and egg exporters. This has not happened—I do not know whether Defra even tried—so exports from the UK to Europe will be subject to the full range of EU checks and bureaucracy, thus raising the costs and reducing the competitiveness of our exports.

As things stand, these regulations will make things lopsided—or rather, one-sided—with EU imports of eggs into this country being exempt from checks, bureaucracy and costs at the border but our exports being fully subject to all the EU rules and costs. So no level playing field there then. To my mind, Defra has scored an own goal here in not supporting its own UK egg producers, who have the highest welfare standards in the world, while helping with the import of cheap, low-welfare eggs. Thanks a bunch. One has to wonder why.

After the initial consultation, Defra held a virtual meeting in September with the consultees, who were told—I find this unbelievable—that the Government want their support to facilitate importing cheap EU eggs to help feed the nation. You could not make it up. Here we have a Defra official asking the very bodies that look after the interests of UK food and egg producers to support flooding the UK market with cheap, low-standard foreign imports. With margins already tight, we egg producers need that like a hole in the head. No doubt the Government were concerned about the supply chain problems, the lack of HGV drivers and the prospect, circulated in the media, that there would be empty shelves in the supermarkets at Christmas, but here we have Defra saying that it wanted cheap imports of eggs and to hell with its own egg producers.

Defra went on to say that it wanted to ease the process, as border inspections would involve more time and costs for egg importers. As an egg producer, am I bothered? All these regulations will do is flood our market with cheap eggs and increase the pressure to reduce the price that we get, thus further squeezing our margins. I am told that, when the consultees explained to Defra that UK producers could easily produce enough eggs to feed the nation—we already produce 90% of our requirements—but that with these regulations they were going to be undercut by lower-standard, lower-cost imports, Defra responded by saying that the consultees were acting only in the interests of protecting UK producer profit margins. As an egg producer, I say, “What profit margins?” They are tight enough already.

Just whose side is Defra on? Quite clearly, it is not its UK food producers. The Government have a cheap food policy priority and an anti-producer, pro-consumer mentality that seems prevalent in Whitehall. Surely the Government, and a Tory one at that, ought to protect and promote their own food producers, which they expect to operate with ever-higher welfare standards, rather than to protect and promote cheap imports? The problem is that although we have a Defra Secretary of State, George Eustice, an Agriculture Minister, Victoria Prentis, and my noble friend Lord Benyon, who all have farming interests and all support British farming, we have a Government who do not.