Agriculture Bill

Lord Lilley Excerpts

Report stage & Report: 3rd sitting (Hansard) & Report: 3rd sitting (Hansard): House of Lords
Tuesday 22nd September 2020 Lords Chamber

[Baroness Neville-Rolfe (Con)]

My Lords, it is a pleasure to follow the noble Lord, Lord Purvis of Tweed, and to be reminded of our debates on the Trade Bill—it seem so many aeons ago—and the amendment which, as I recall, was not adopted in the other place in its revised form.

I have been reflecting for some time on how, if I was still a Minister, I would deal with the three related and important amendments before us: Amendment 93 in the name of the noble Lord, Lord Grantchester, on which I will focus; and two amendments in a later group, Amendment 97 in the name of my noble friend Lady McIntosh of Pickering and Amendment 101 in the name of the noble Lord, Lord Curry of Kirkharle, who for many years has been a towering figure in farming. They raise some similar issues, and they all have lots of supporters and some detractors, led by my noble friend Lord Trenchard.

I am a supporter of the World Trade Organization and its predecessor, GATT. Having been trained as an economist, I know that trade brings great benefits in terms of world prosperity, as is convincingly explained by the theory of comparative advantage. This is particularly important when we face recession and the shock of the Covid pandemic affecting, I am afraid to say, every corner of the globe. That is a very different background from that when we were debating the Trade Bill. We must support the WTO and have regard to its rules. The Minister suggested in Committee that provisions of the kind we see in Amendments 93, 97 and 101 might be incompatible with them. We could be ushering in a new argument with the WTO and major problems of compliance, which would be particularly unfortunate given the current problems with the WTO—in particular with the Appellate Body, referenced by my noble friend Lord Trenchard. It is not easy to see a way round this, and there is a severe difficulty in establishing equivalence in order to implement the necessary criteria for maintaining standards, so we must tread a careful path.

Since this Bill was first presented in the other place, the Government have come a long way. They have established the Trade and Agriculture Commission, in which Red Tractor is involved—I should again register my interest as its chair. The noble Lord, Lord Grantchester, was kind enough to mention it and the importance of high food standards in the UK, which I endorse. The comments of Henry Dimbleby, quoted by my noble friend Lady McIntosh, were also interesting and relevant.

The new trade commission, which we will discuss later, is a victory for the farming unions who fought for it, as they felt that their interests were being ignored. It has wider value as an excellent sounding board for Liz Truss, the Secretary of State for International Trade, and her teams on a swathe of current trade negotiations. The widely welcomed Japan agreement is the first green shoot and, to pick up the words of the noble Baroness, Lady Jones of Moulsecoomb, has not bent the rules.

In closing, I shall revert to my question about what a Minister might do. I would try to address the substantive issues, without coming down in favour of one approach. I would build on what has already been done, by, for example, agreeing to extend the life of the Trade and Agriculture Commission for a few months and by planning some wider consultation to bring in the voice of those who might feel excluded from the commission once it has published first its interim and then its final reports. Among other things, I would do more to reassure, by repeating the promise the Government have made that they are not planning to change food regulations to let in chlorinated chicken or hormone-treated beef. Such undertakings could not be reversed in the other place, and I rather agree with my noble friend Lady Noakes that we do not always need to make amendments to have concerns addressed. I also agree with her that science and innovation matter a great deal.

The UK benefits greatly from the international order and enduring economic ties, especially free trade. This is the future and we must tread with care. Before there is a vote on any of these important amendments, the Minister may want to comment on whether they could fall foul of WTO rules.

[Lord Lilley (Con)]

My Lords, I rise to support the amendments proposed by my noble friend Lord Trenchard and agree with what he, and my noble friends Lady Noakes and Lady Neville-Rolfe, have said. However, listening to this debate, I have occasionally felt the House has been transported back to the debates on the corn laws in the early 19th century. Then, as now, landowners, supported by their friends—romantic believers in an unchanging rural England—argued that we should prevent the import of cheap food, protect the labouring classes from their predilection for it and require them to eat more expensive food and that if we did not, it would mean our farming industry would be destroyed, our fields would remain untilled and our agricultural capacity would be permanently diminished. We know, of course, that the protectionists lost and the free traders won. Most people look back and think that was one of the great victories for progressive legislation in this country which raised the well-being of the labouring classes, although it may have diminished rents of landowners for a time. I hope we will bear that in mind as we consider these amendments.

It is generally accepted that WTO rules permit us to ban foods based on their risks to human health. So it should, as long as those rules are scientifically based. It is also generally accepted that WTO rules do not, unless in rare and exceptional circumstances, permit bans on imports based on the production processes used if they do not have an impact on human health. That is why the EU ban on US poultry washed in peracetic acid or very dilute solution of chlorine is based on the supposed risk to human health, not on the welfare of chickens. We all know the scientific basis for the allegation of risk to human life is tenuous, otherwise the population of North America would not be so large. That is why the noble Lord, Lord Grantchester, and others, want a standard based on the welfare of poultry, not on the welfare of humans. However, to do so would be contrary to WTO rules. Paradoxically, they are asking us to set aside an international treaty, albeit for specific and limited purposes. There are reasons the WTO has these rules. First, when countries prohibit the import of goods, particularly food, based on the alleged inferiority of standards in other countries, it is usually done for protectionist reasons and not for the reasons they give. Secondly, it is extremely difficult to enforce rules about standards applied in another country, unless you adopt quasi-colonial controls reaching out into those countries from more developed countries, which many countries in the world do not want to see themselves subjected to. The WTO recommends where possible we adopt international standards, as my noble friend Lord Trenchard said, such as Codex Alimentarius and so on, as long as they are based on sound science.

I hope that the House will think twice before going back more than a century to introduce protectionism, flout international law and do something where the sole purpose is to raise the cost of food.