Agricultural Products, Food and Drink (Amendment) (EU Exit) Regulations 2020

Lord German Excerpts

Wednesday 27th January 2021 Grand Committee

[Lord German (LD) [V]]

My Lords, I wish to clarify the parts of these regulations relating to the movement of wine into this country from the EU. I also have a question relating to the shipment of wine from Great Britain to the EU. This industry is important. The UK is a major global hub for wine. In the UK we consume 12 million bottles of wine a day, and about half of those come from the EU. In the first two weeks of this year, businesses were able to import only 144,000 bottles from the EU, meaning stocks were depleted by some 11.7 million bottles a day during this period. Can the Minister provide the latest information on amounts imported? The obvious outcome of stock depletion at this rate is scarcity and an increase in prices, as has been pointed out by south Wales wine importer Daniel Lambert in many media outlets.

As for trade in the other direction, wine is the sixth most important food and drink export from Great Britain—more valuable than beer and beef. The main question I wish to pose about these regulations is on the nature of this six-month easement. Is it an opportunity to get a new smoother procedure in place, or is it simply to provide a period for the wine trade to get used to handling the proposed new system? Will policy change? Will there be further negotiation to remove the non-tariff barriers that trade is now facing?

The VI-1 form, which was used to protect EU wine from cheap imports, is proposed to be largely replicated save for the lab test requirement for alcohol content. This is a cumbersome approach. The clunky government CHIEF system operated by HMRC is already proving very difficult for the wine trade. Parts of it are impenetrable or not functioning adequately, and this will have contributed to the drastic reduction in the number of bottles imported into Great Britain. Is there now a telephone hotline for advice in place, or must the trade rely on an email system which returns queries within five days? Article 3 of annexe TBT-5 to the TCA refers to a preference for an electronic system for documentation. That would be a major improvement. Paperwork is a major non-tariff barrier, and I would be grateful for an explanation of whether the Government intend to achieve that electronic process within the six-month period.

The Minister will be aware that wines from countries such as Chile are imported tariff-free into the UK in bulk, bottled at a UK bottling plant and then re-exported to the EU. There are great fears that the additional costs of re-exporting will endanger this trade and bottling plants in Great Britain. Can he provide any reassurance to this part of the industry?

The Wine and Spirit Trade Association is finding it very difficult to be able to express its concerns to Ministers. Would the Minister be prepared to meet me and its representatives to discuss their concerns? This would be a really important indication that the Government wished to allay the fears of the sector.

I realise I have asked a lot of questions of the Minister and I hope that, if he cannot reply today, he can do so in writing.