Product Regulation and Metrology Bill [HL]

Lord Hunt of Kings Heath Excerpts

Committee stage
Monday 25th November 2024 Grand Committee

[Lord Sharpe of Epsom (Con)]

My Lords, I thank noble Lords who have spoken in this debate. I will speak to Amendment 16 in the name of the noble Lord, Lord Fox, which was introduced by the noble Baroness, Lady Brinton.

Regarding the EU’s REACH scheme, I shall refer to a specific example which relates to my time at the Home Office in the previous Government. It relates to cosmetics, as outlined by the noble Baroness, Lady Brinton, and my noble friend Lady Lawlor. In 2019, the Home Office aligned UK policy with two decisions by the European Chemicals Agency board of appeal which related to the testing on animals for the registration of cosmetics-only substances—specifically homosalate and 2-ethylhexyl salicylate. The marketing of cosmetics tested on animals is banned in the EU under cosmetics products regulation, but the ECHA—the European Chemicals Agency—confirmed that under REACH substances used solely in cosmetics may sometimes be tested on animals, as a last resort, to prove their safety for workers or the environment.

An NGO called Cruelty Free International, quite rightly, in my view, took the Government to court arguing that the UK’s alignment in effect led to the weakening of the long-standing—I think it was a 25-year—ban on animal testing of cosmetics and cosmetic ingredients. The UK court found in the Government’s favour but as the then Minister for Animals in Science, which somewhat surprisingly sits with the Home Office, the Home Secretary and I were firmly of the opinion that this was unjustified, so as of May 2023 we decided that no new licences should be issued to carry out this function. A small number of licences had been issued between 2019 and 2022.

The noble Baroness, Lady Brinton, and the noble Lord, Lord Browne, made persuasive arguments about why it might be in this country’s interest to align with the EU but, equally, it might not be, and this is a very nuanced subject. Failings of the domestic chemicals regulator—real or imagined—are an entirely separate subject. Alignment with, or invention of, our own rules that suit our national and public interest most definitely is in our interest. When I say public interest, in this case 76% of the public are against animal testing according to the RSPCA. So can I ask the Minister to guarantee that this ban on new licences in these cases will be maintained? I am disappointed that the noble Lord, Lord Fox, is not here because I was going to ask him if, in the spirit of nominative determinism, he would withdraw his Amendment 16. However, I say to the noble Baroness, Lady Brinton, that it certainly raised hackles, not necessarily human ones.

On the subject of dynamic alignment, I have two questions for the Minister about an apparent contradiction in our debates last Wednesday. I pored over Hansard, and I found that he said:

“If the UK makes a sovereign decision to mirror EU provisions, the Bill provides the mechanism and flexibility, on a case-by-case basis, to do so. This would avoid primary legislation each time technical changes are needed and would increase the certainty that businesses are crying out for”.—[Official Report, 20/11/24; col. GC 74.]


However, he went on to say:

“The powers in the Bill do not allow regulations to make automatic or ambulatory references to changing EU law. I reassure noble Lords that the Government will return to Parliament to make any changes to references to EU law within our regulations”.—[Official Report, 20/11/24; cols. GC 74-5.]


On careful reading, these statements seem a bit contradictory. So, although I am totally willing to be persuaded otherwise, perhaps the Minister could write to explain to the Committee exactly what is proposed and what was meant. If I am being particularly thick, I would be very happy for him to explain why.

[The Minister of State, Department for Energy Security and Net Zero (Lord Hunt of Kings Heath) (Lab)]

My Lords, I thank noble Lords who have spoken, particularly the noble Baroness, Lady Brinton, who spoke to the amendment in the name of the noble Lord, Lord Fox.

From listening to the debate, I suggest that the defects identified are not so much in this Bill or other legislative provisions that we have in place but more, as my noble friend suggested, in the energy with which the previous Government used the provisions at hand., I shall first explain why this is covered in existing legislation, and then I will come on to the energy, if you like, with which this Government will approach these important matters. I shall also set out the distinction between the regulation of chemical substances under REACH and other regulations, and the regulation of consumer products that contain chemicals.

The UK has a comprehensive regulatory framework for the use of chemicals. The REACH—registration, evaluation, authorisation and restriction of chemicals—regulation controls the manufacture, import, supply and safe use of chemical substances. The CLP—classification, labelling and packaging—regulation requires companies to classify, label and package their hazardous chemicals before placing them on the market. The REACH model operates in both the UK and the EU, but the systems have been independent since UK REACH entered into force on 31 December 2020, after we left the EU, and the EU REACH regulation was brought into UK law. So the regulation of chemicals must be managed separately under UK REACH and EU REACH.

REACH ensures a high level of protection for human health and the environment from risks imposed by chemicals. This includes minimising harm to workers who may handle chemicals during manufacturing processes, as well as minimising health impacts on our population and environmental damage from chemical substances. Chemical safety is governed by several interacting regimes. For example, certain products regulated by sector-specific regulations, such as cosmetics or toys, may contain chemicals that are also regulated by REACH and CLP. One of the aims when applying these regimes is to avoid putting in place overlapping or conflicting duties, which is the issue that we would have with the amendment in the name of the noble Baroness, Lady Brinton. That amendment risks having overlapping or conflicting duties.

I know that the noble Baroness mentioned Defra, but the Secretary of State for Defra already has powers to amend UK REACH through the Environment Act 2021 and through REACH itself, which sets out a bespoke regime for imposing restrictions and other regulatory controls on chemical substances. The primary statutory purpose of UK REACH is to ensure a high level of protection for human health and the environment from substances that contain chemicals. In some cases, animal studies may be necessary to understand these human health or environmental hazards but, of course, I very much take on board the noble Lord’s point about animal testing, and I know of no plans to change the rules laid down by previous Ministers on that.

The Bill, as we know, relates to consumer products, and the definition of “product” stated in the Bill means that many of the substances regulated under REACH, and the ways they are used, are out of scope of the powers, regardless of these amendments. It should also be noted that the provision in Clause 1(2) is limited to the mitigation of the environmental impact of products. This limitation is reinforced in Amendment 51. As I have already commented, changes to REACH may be prompted by human health and safety, rather than environmental, considerations. The UK REACH work programme, published annually, sets out the work that has been done under UK REACH.

The fact is that the amendment would not provide the Secretary of State with the powers sought by the noble Baroness. We think the powers within UK REACH enable human health and environmental concerns to be considered alongside each other, where necessary. Existing sector regulations, such as those for cosmetics and toys, already include powers for the Secretary of State to regulate the use of chemicals in specific products beyond the overarching restrictions that can be applied under UK REACH. These powers can be, and already have been, used to make provision by regulation in UK law that corresponds, or is similar to, provision in relevant EU law. Such changes to UK regulations have been informed by independent expert scientific advice provided to the Office for Product Safety and Standards by the scientific advisory group on chemical safety for non-food and non-medicinal consumer products.

We have used these powers to make regulatory changes based on advice from that advisory group, following the EU’s introduction of new or amended prohibitions on the chemicals used in cosmetics and toys. My understanding is that, in some circumstances, the Government implemented scientific advice that was different from advice received by the EU. I am sure that the previous Government would have said that this demonstrated regulatory sovereignty to choose what products can be placed on the GB market and also demonstrated our status as a global leader in product regulation, supporting businesses and protecting consumers.

Powers in the Bill, alongside existing sector regulations, will ensure that we are able to regulate the use of chemicals in consumer products, including cosmetics and toys, as well as other consumer products with similar chemical exposure risk, so we will be able to continue to protect consumers from product-related harm. The noble Baroness, Lady Brinton, asked whether chemicals blocked in Britain but permitted in the EU would be available for use in this country. If we decided to ban chemicals that the EU continued to permit, those chemicals would not be permitted to be used for the GB market, because we have sovereignty.

I will confirm the point made by the noble Lord, Lord Sharpe, on animal testing. The ban on using animals to test cosmetic products or ingredients has been in place, as he said, since 1998. We do not wish to revise the ban and do not wish to risk any unintended consequences that might result from bringing REACH within scope of the Bill.

On my noble friend Lord Browne’s point on the pace of reform, at the moment the Government are pursuing a programme of work on a wide range of hazardous substances to gather evidence of risk and exposure pathways. Publishing the work programme 2024-25 late in the financial year has not prevented the continuing development of ongoing streams. Obviously, the UK work programme 2024-25 was prepared under the previous Government. Once approved by Ministers, it will be published on the Health and Safety Executive’s website. But let me say that I understand the essential point that has been raised. My point is that there is nothing wrong with the legislative framework. The point of contention is the vigour with which any Government use their sovereign powers in the way that noble Lords want.

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[Lord Hunt of Kings Heath (Lab)]

My Lords, the quick answer is that these matters are being considered by Ministers at the moment, but I will feed back to them what noble Lords have raised today.

[Baroness Brinton (LD)]

My Lords—

[Lord Hunt of Kings Heath (Lab)]

I would be glad to give way to the noble Baroness, but as we will come back to her in any case—

[Baroness Brinton (LD)]

I have a question. I am very grateful for the Minister’s response, but he has not yet responded to my final question and, following his reply to the noble Lord, Lord Browne, I need to repeat it to check. I said that this was a probing amendment to clarify the interconnected nature of, and differences between, the UK and EU chemicals industries. Under its current wording, Clause 1(1) says:

“The Secretary of State may … make provision, in relation to”.


Could that be used to amend and update UK REACH to align with EU REACH? I ask this in light of the letter that the noble Lord, Lord Leong, wrote to colleagues on 17 October:

“Though the Bill is not intended to cover REACH specifically, chemicals have not been excluded from its scope … We are currently considering the best approach to chemicals regulation in the UK and will set out priorities”.


That is the fundamental bit of this amendment. We can debate EU REACH and UK REACH, but it is about the influence on this Bill.

[Lord Hunt of Kings Heath (Lab)]

My Lords, the quick response is that we do not envisage it being used in that way because we already have separate legislation to deal with that. I will follow up with a more detailed response, but I do not believe that the provisions would allow that to happen. However, I will double-check and clarify that.

On my noble friend’s point, I have listened to the debate and understand the concerns. I know that Ministers are considering this, and I will ensure that the strong points raised here are put to them as they consider how to take forward this work.

[Baroness Brinton (LD)]

I am grateful to all noble Lords who have spoken in the short debate on this group. I am particularly grateful to the noble Lord, Lord Browne, for covering the 10 restrictions adopted in the EU but not in the UK, since it left the EU. I was debating whether to raise them or not; I am glad that I left them to him. He pointed out the cost-benefits of using REACH. Manufacturers have made it very clear that they want things as simple as possible and, usually, would prefer one form of REACH—the one to which they are likely to export or from which they will have products coming in. I recognise that other Members of the Committee will disagree with that. I am grateful for the comments of the noble Baroness, Lady Lawlor; lemon and lavender sound like a lovely, simple way of looking at it, but cosmetics are much more complicated. We need to be very careful about that. I look forward to hearing from the Minister but, in the meantime, I beg leave to withdraw the amendment.

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[Lord Sharpe of Epsom (Con)]

My Lords, I thank the noble Lord, Lord Lucas, for his proposed amendments to Clause 2, which, as highlighted by the Delegated Powers and Regulatory Reform Committee, has been recommended for removal due to the broad and vague nature of the powers it grants. The liability for regulations and charges related to products is a matter of extreme importance. Without clear guidelines and transparent information, businesses could face significant uncertainty, which in turn undermines their ability to comply effectively.

The Government’s focus on clarity in other areas will ring hollow if they fail to address the critical need for clarity in liabilities—an issue that the amendments in the name of the noble Lord, Lord Lucas, seek to address directly. Regarding Amendment 20, by ensuring that products are marked with clear and comprehensive information, such as origin, local representation and ownership, we can establish clear responsibility for product compliance. This would not only improve regulatory transparency but foster trust with consumers and businesses alike.

I urge the Government to take this opportunity to acknowledge the importance of clear liability and responsibility frameworks. Although these amendments are to Clause 2, and we continue to discuss its broader issues, nevertheless the noble Lord’s proposed changes are a necessary step towards ensuring both accountability and transparency in product regulations.

[Lord Hunt of Kings Heath (Lab)]

My Lords, I am grateful to the noble Lords, Lord Lucas and Lord Sharpe, for their comments in this interesting debate. I am glad that the noble Lord, Lord Lucas, was able to meet my noble friend and officials. I am sure they have taken note of his concerns, although he obviously has some reservations about that. I have also noted the comments of the noble Lord, Lord Sharpe, about the shape of the Bill, which we have already well debated and no doubt will continue to do so.

Despite the noble Lords’ concerns about the Bill, the fact is that we are trying to produce a workable yet robust framework for regulating product safety in what I think we all acknowledge is a rapidly changing and evolving marketplace. We want to ensure that businesses, whether operating through traditional channels or online marketplaces, are held accountable for the safety of the products they distribute. The Bill’s approach is targeted, addressing the need for traceability and enforcement while avoiding excessive regulatory burdens that could stifle innovation and growth. I believe most noble Lords think that is the right balance, although some are somewhat critical of the way in which we have sought to do it in the Bill.

Amendments 20 and 24 in the name of the noble Lord, Lord Lucas, propose to allow regulations to make requirements in relation to the marking of products, including their origin, the identity of the local representative, their value and their beneficial ownership, while also allowing regulations to require authorised representatives to accept liability and demonstrate financial strength. The amendments reflect important concerns, particularly around traceability and accountability, especially in the context of online marketplaces: for example, where a product creates a consumer safety concern, or the circumstances which the noble Lord mentioned in his introductory speech. Our view is that Clause 2(2)(e)(ii) and Clause 2(3) already provide the necessary mechanisms to ensure that authorised representatives and other relevant parties carrying out activities in relation to a product can clearly be identified for product safety purposes.

While I can see where the noble Lord is coming from with the proposed additional requirements, such as marking the product’s value or beneficial ownership, they would create an additional administrative burden for businesses without providing significant additional benefits for consumers or enforcement. The Bill as drafted aims to ensure that sufficient information is available for product safety and enforcement and we are not convinced that the extra information would offer clear advantages in those areas.

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[Lord Lucas (Con)]

My Lords, I am very grateful for the Minister’s comprehensive reply. On Amendment 24, I remain unclear whether the powers in the Bill allow for representatives to have to demonstrate deep pockets. I would be happy to be written to if the Minister cannot reply now. If he could point me in the direction of homework related to Amendment 25, such as the OBR analysis and so on, I would be most grateful.

[Lord Hunt of Kings Heath (Lab)]

I would be very happy to do that.

[Lord Lucas (Con)]

I beg leave to withdraw the amendment.

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Amendment 22 not moved.

[Lord Hunt of Kings Heath (Lab)]

My Lords, this might be a convenient moment to adjourn the Committee.

Committee adjourned at 6.32 pm.