Draft Timber and Timber Products and FLEGT (Amendment) (EU Exit) Regulations 2020

James Morris Excerpts

Wednesday 4th November 2020 General Committees

[The Lord Commissioner of Her Majesty’s Treasury (James Morris)]

I beg to move,

That the Committee has considered the draft Timber and Timber Products and FLEGT (Amendment) (EU Exit) Regulations 2020.

The regulations were laid before the House on 5 October and amend the Timber and Timber Products and FLEGT (EU Exit) Regulations 2018, on the trade in timber and timber products. The technical amendments in the statutory instrument address deficiencies that have arisen since the 2018 exit regulations were made. They relate, in addition, to the implementation of the Northern Ireland protocol. The minor amendments in the statutory instrument will ensure that the regulations for the trade in legally harvested timber will operate effectively in the United Kingdom.

I should make it clear that all the amendments made by the statutory instrument are technical operability amendments and do not introduce any policy changes. The policy is considered to be reserved, and we have worked with the devolved Administrations on the regulations.

The licensing regulations address the issues of illegally harvested timber through two measures. On the supply side, the FLEGT regulations provide for a licensing regime with countries that have entered into a partnership agreement, allowing them to issue licences that prove legality of harvest. On the demand side, the timber regulation prohibits the placing on the market of illegally harvested timber and requires businesses to exercise due diligence on timber to ensure its legality.

Illegal logging is a significant driver of deforestation, which is a major contributor to climate change and leads to the loss of biodiversity and critically important ecosystem services. It directly affects rural communities that rely on forests for livelihoods, and results in revenue loss for Governments and legitimate businesses. The timber regulation and FLEGT licensing system are therefore vital tools in preventing the illegal trade in timber and the associated economic, environmental and social costs.

The main purpose of the statutory instrument is to make amendments to the 2018 exit regulations, to facilitate operability within the context of the Northern Ireland protocol. That is achieved by substituting, in several instances, “Great Britain” for “the Community” and “the United Kingdom”. There are several instances in which references to the United Kingdom are retained from the 2018 regulations. That is to do three things: first, the definition of a “partnership agreement” in the UK FLEGT regulations will continue to refer to an agreement with the UK. The UK reference is necessary because a partnership agreement is a treaty, and only the UK may enter into treaties with other states.

Secondly, for the purposes of the UK timber regulation, reference to the UK defines the market on which timber is placed in the United Kingdom. If that market were to be defined as Great Britain, it would have the effect of imposing the obligation to exercise due diligence on businesses importing timber from Northern Ireland to England, Scotland or Wales. That would represent a new check on goods moving from Northern Ireland to Great Britain, so the definition “the United Kingdom” is retained.

The third retention of “the United Kingdom” is in relation to monitoring organisations. Those are approved businesses that are able to offer access to their due diligence systems to those placing timber on the market. The regulations set out requirements in relation to where businesses must be legally established if they are to apply to be a monitoring organisation. If this area were to be defined as Great Britain, it would preclude businesses in Northern Ireland from being able to apply to be a monitoring organisation under the UK regulations. As such, the definition “the United Kingdom” has been retained.

This instrument also amends the dates on which the first reports on the UK timber and FLEGT regulations are required. This is to ensure an appropriate amount of time between the implementation of the regulations and the first report being produced. Without that amendment, the first report would be due just three months after the regulations came into force.

The regulations also correct a typographical error in the 2018 exit regulations by changing “in” to “by” in relation to sanctions imposed by the United Kingdom on timber imports or exports.

This instrument also amends the reporting period for the FLEGT regulation to the calendar rather than financial year, to bring it in line with other reporting schedules. This amendment was necessary to deal with an amendment to the EU regulations made after our 2018 exit statutory instrument.

Finally, the instrument substitutes “IP completion”—for the implementation period—for “exit” in the context of the date at which existing monitoring organisations established in the UK will retain recognition. This change is simply to correct a deficiency that has arisen since the 2018 exit regulations.

This instrument has always been intended for the affirmative procedure. Both the Joint Committee on Statutory Instruments and the Secondary Legislation Scrutiny Committee have formally considered the instrument without comment. The instrument was not subject to consultation as it does not alter existing policy.

In line with published guidance, there is no need to conduct an impact assessment for this instrument, as no, or no significant, impact on the private or voluntary sectors is foreseen. The instrument relates to the maintenance of existing regulatory standards, and the cost of any direct impact from the instrument falls under £5 million. The territorial extent of this instrument is the United Kingdom. This is considered a reserved policy; devolved Administrations were engaged in the development of the instrument and are content.

The office for product safety and standards—part of the Department for Business, Energy and Industrial Strategy—is the delivery body for the regulations and will continue in that role for both Northern Ireland and Great Britain. It has been involved in the development of the instrument and has no concerns relating to implementation or resources. Its expertise in the enforcement of the regulations, and its history of working with businesses to understand and meet their obligations, will ensure a consistent and transparent transition.

The UK has a long and proud history of work in this area, and the Government’s 25-year environment plan has made clear our commitment to support and protect international forests. These regulations will ensure that we can continue to protect valuable global resources, safeguard the livelihoods of some of the world’s most vulnerable people, and contribute to tackling climate change. I commend the draft regulations to the Committee.

--- Later in debate ---

[James Morris]

I thank the shadow Minister for his characteristically detailed contribution. He asked how the UK intends to work with voluntary partnership agreements. I will write to him on that. He also raised a number of issues to do with the Northern Ireland protocol. Again, I will write to him with an explanation of how the instrument operates with the protocol, if that is satisfactory to him.

[Daniel Zeichner]

Of course.

[James Morris]

The instrument would make no change to the existing policy to tackle the trade in illegally harvested timber. The Government’s 25-year environment plan sets out our continued commitment to protecting and restoring the world’s forests and to supporting sustainable agriculture. The instrument would ensure that we have the operable regulations that we need to address that.

As I have outlined, all the changes that the instrument would introduce are technical operability amendments to ensure that we can continue to operate the regulations and protect global forest resources after the end of the transition period. I commend the regulations to the Committee.

Question put and agreed to.