Official Controls (Animals, Feed and Food, Plant Health etc.) (Amendment) (EU Exit) (No. 2) Regulations 2020

Lord Bilimoria Excerpts

Tuesday 19th January 2021 Grand Committee

[Lord Bilimoria (CB) [V]]

My Lords, outside the trade agreement, the EU granted the UK national listed status on 24 December, which allows the trade of live animals and products of animal origin and plants to continue after the transition period. Sanitary and phytosanitary—SPS—border checks will be required for trade in live animals and products of animal origin, meaning that agri-food traders will meet with extra costs and burden. Does the Minister agree with that?

SPS border controls will include extensive checks and specialised paperwork, and frequent physical inspections will be required. Does the Minister agree that it is incumbent on both sides to minimise disruption and keep goods moving, as businesses continue to get to grips with the changes since 1 January? Does he also agree that authorities could help by relying on pragmatism rather than penalties, and that honest mistakes should be coached and not penalised in the coming weeks and months?

The issues that arise must be resolved quickly. As president of the CBI, I can say that the CBI is on hand to help the Government by getting information and guidance to businesses as quickly as possible. As firms adjust to new processes and procedures, they will be keen to see quick progress on issues outside the deal to support businesses, and greater regulatory co-operation outside the area we are discussing. For example, financial services and the mutual recognition of professional qualifications are other areas that need to be dealt with. Over the coming weeks and months, it is vital that government and business work together closely to shape the new relationship with the EU and ensure that the UK remains a competitive, dynamic and innovative economy.

We have heard that some hauliers have been reluctant to carry multiple firms’ loads together in one shipment, particularly for food, given the added challenges posed by collating paperwork and clearing customs. A handful of major logistics firms have also stopped deliveries to and from the UK, given a high number of consignments reportedly not meeting new requirements. Of course, the pandemic has not helped the situation, but does the Minister agree that there is a shortage of customs agents? It is estimated that about 50,000 would be required, but that there are possibly only 11,000 to 12,000 now. When does he see this situation being resolved?

Finally, we have heard that, in Dublin, the volumes are down 50% on normal levels—this was reported yesterday. That might of course be due to stockpiling before Christmas and Covid. However, can the Minister comment on the veterinary health certificates required under the EU’s SPS rules, which are also causing considerable problems for UK food companies?