Trade (Australia and New Zealand) Bill

Lord Purvis of Tweed Excerpts

Report stage
Tuesday 14th March 2023 Lords Chamber

[Baroness Bennett of Manor Castle (GP)]

My Lords, I rise briefly to offer general support for the direction of all the amendments in this group. I am sure that the Front-Benchers will have more to say. In response to the noble Lord, Lord Lansley, I note that the commitment from the Minister to offer regular impact assessments is not the same as something written into the Bill. The Procurement Bill contains increasing promises from the Government for more local and national public procurement for schools, hospitals, prisons, et cetera. I am not quite sure of the timing or how this interacts with the nature of the procurement in this Bill.

I want to pick up on a point from the noble Baroness, Lady Bakewell of Hardington Mandeville. She noted concerns about ongoing negotiations with Canada and Mexico. These amendments can also be taken as a broader expression of concern about the potential impact of opening up our markets to agricultural products from around the world, produced under far worse environmental, animal welfare and public health conditions than the standards we have been used to under EU membership and those of our own producers.

For anyone who has not seen it, there is a very interesting report on Politico reflecting on discussion around the potential CPTPP membership in which Canada is pushing with Mexico to have the same market access for agriculture as Australia and New Zealand have won under their deals with the UK. If we look at Mexico’s production conditions, we see that its beef imports have very high carbon emissions. Canada uses farrowing crates, tail docking, teeth trimming and lots of other practices that we would regard as wholly unacceptable in the pigmeat industry.

These amendments are to be taken together as a real expression of concern about what kind of food we will potentially see on our plates and the environmental impact of the food our farmers will be producing.

[Lord Purvis of Tweed (LD)]

My Lords, I apologise to the House and to the noble Lord, Lord Lennie, for missing the first minute of his contribution.

I agree with the noble Baroness, Lady Bennett, about why at this stage of the Bill we are seeking to raise some of the concerns that have already been expressed. It is not just we who have been raising issues about these agreements in particular. I can quote from a website that says we know that farmers are concerned by some of the trade deals we have struck, including with Australia:

“A Rishi Sunak-led Government will make farmers a priority in all future trade deals.”


That website is Ready for Rishi. As part of that commitment, he said that as Prime Minister he would introduce a new “Buy Local” campaign. He would also:

“Introduce a new target for public sector organisations to buy 50% of their food locally, to back British farmers and improve sustainability.”


The noble Baroness, Lady McIntosh of Pickering, raised this in Committee. In discussing procurement, we are justified in trying to find out how that target from the new Prime Minister of 50% of public sector procurement through buying local will be implemented, especially since that same Prime Minister has recognised the concerns about these agreements we are debating.

It is also worth noting that there have been significant concerns among not only farmers in England but those in Scotland, to which I will refer, and Wales. Today’s Order Paper notes that Welsh legislative consent has been withheld. We should take seriously why the Welsh Government and Parliament have not been able to provide legislative consent in these areas. We also know the concerns of the Scottish Government.

Before I progress, I thank the Minister for his proactive engagement. I support his commitment to seeking opportunities to promote British exporters. The level of engagement he has shown to the Front Benches and others is to his credit and that of his office. I appreciate his willingness and engagement. He and others, such as the noble Lord, Lord Lansley, are keen to see this agreement put in place. From these Benches, I wish to see agreements where there are opportunities for UK exports, especially in rural procurement. As my noble friend Lady Bakewell has indicated, we will not be shy in raising concerns about what the impacts may be, especially where the Government say when it suits them that these either are gateway agreements for CPTPP or will set precedents. I agree with the noble Lord, Lord Lennie, about this. It is right that we test the impact on our domestic industries.

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[Lord Lansley (Con)]

Going back for a moment to the point the noble Lord made earlier about the sale of food to public bodies and these procurement chapters, does he recognise that the purchase of food locally by schools, hospitals and the like will almost certainly not be, as I judge it, within the definition of covered procurement and not above the threshold; and, therefore, the procurement chapters, in so far as they extend procurement opportunities to Australia and New Zealand providers under this Bill—and under the Procurement Bill—really would not be relevant to that local provision of food?

[Lord Purvis of Tweed (LD)]

I am grateful to the noble Lord; he knows I respect his work on this area very much. I would like the Minister to confirm that that will be the case, because I am not convinced. I see the noble Baroness, Lady Neville-Rolfe, in her place. She was kind enough to have a meeting with me about it. I am not yet convinced, because of the elements within the Procurement Bill which will require there to be no discrimination for any of the treaty countries for public procurement in this country, that what he is arguing for, which is effectively a carve-out, will in fact be the case. My understanding is that under the Procurement Bill, we are unable to discriminate against any of the treaty suppliers. I am not sure that a public body in this country would be able to discriminate. I hope the Minister will be able to clarify that point.

The reason this is relevant and why I quoted the then candidate for leader of the Conservative Party’s commitment to 50% of public procurement in this country being local is that I do not know how that squares with what will be the legal requirement under the Procurement Bill that we are then unable to discriminate against Australian and New Zealand produce which will enter the market. I do not know how that squares.

I am simply asking the questions, because we have not had more meat on the bone, if that is not too inappropriate an analogy, about what has been published as a government commitment and is in the Procurement Bill. If the noble Lord has any other answers, I am happy for him to intervene on me. I do not know how he knows how this might be squared. I do not at this moment. That is why part of our agriculture sector is also questioning how these two commitments will come together. The different sequencing of this Bill and the Procurement Bill is relevant. Because it also sets the precedent for Canada and Mexico, with new produce coming in, and if these are gateway agreements for CPTPP, we are looking at potential competition with all CPTPP members for public procurement of produce. If you are a public body in the UK looking at cost-effective procurement of food for schools or hospitals and you are unable under the Procurement Bill to discriminate against Australian or New Zealand produce or that from any CPTPP country and state that there is local producing, similarly, I do not know that it is matched.

I hope that, at this late stage, the Minister can offer some reassurance. I hope that he is able to explain how these commitments to 50% of procurement can be matched, as well as give further reassurances, specifically on the impact on tenant farmers and biodiversity. There are genuine concerns here, I do not think they will go away and we need to offer that reassurance to these sectors, which are so vital to our rural economy.

[The Minister of State, Department for Business and Trade (Lord Johnson of Lainston) (Con)]

My Lords, I draw Members’ attention to my entry in the register of interests, although I do not believe there is any conflict relating to our debate today. I am also grateful for the apology of the noble Lord, Lord Purvis, for being slightly late. I was fractionally late for Questions this afternoon, and was called on to resign, among other things. I hope the House does not mind that I have not taken that too seriously.

I am delighted to be speaking on Report of this very important Bill. If it is appropriate to make a personal comment, I have deeply appreciated the high level of engagement with the Opposition Front Benches, my noble friends and noble Lords across the House. I do not want to put words into people’s mouths, but I think we agree that it is a fundamentally good thing to do a trade deal with Australia and New Zealand. I was watching the news yesterday and seeing the extraordinary advances we have made in collaboration, particularly with Australia, in our defence. It will benefit the economy in many areas in the north-west of this country, among other parts of this nation. The sheer sincerity of the brotherhood between our nations should be expressed very clearly. I very much hope that if the high commissioner of either Australia or New Zealand—I am grateful to the noble Lord, Lord Lennie, for engaging with Phil Goff recently—is watching this debate, they know that the fundamental spirit of the House is for a successful conclusion of this process and a good and successful trade deal with Australia and New Zealand.

At the same time, I am very aware of the issues that trade deals create. I am certainly not triumphal in any way about trade liberalisation or the effects that this trade deal will have on individuals and farming communities. I have been very sensitive to those discussions over the past few months and take this very seriously. I express my personal view that we must support our farming community, and this is unquestionably the view of this Government as well. It is important to have that on the record.

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[Lord Johnson of Lainston (Con)]

I was just coming to that. I may have taken a bit too long to get there but I am trying to reassure noble Lords by describing in detail the lengthy process of assurance that Australia provides us with. It is part of the global trading system and not necessarily unique to Australia. We must do the same, as I understand. If I am wrong, I will ensure that this is corrected, but we must do the same with any agricultural or meat exports that we send to Australia.

Are we confident that Australia is upholding their system and managing it properly? The answer is yes. I have been impressed with the calls that I have had around this subject. It is a detailed and complicated process of assurance that ensures that we are comfortable that what we receive is indeed what is advertised. I do not want to be called back here if there is a case where that does not happen, because clearly that is not my intention, but on whether we are confident about the processes in place, the short answer is yes.

Regarding South American beef being passed off under British beef titles, I understand that this was only from one retailer, and the National Food Crime Unit is investigating. This struck me as an isolated case. Forgive me that I do not have all the details, but the major supermarket retailers have all denied any knowledge of this and it has not affected them. This is a unique case. I am happy to have someone write to the noble Lord because it would be interesting to find out a bit more about this, but it is not relevant in this instance. It does not seem to be widespread, but is specific. That it has been caught and is being investigated is very important.

I come to a conclusion—

[Lord Purvis of Tweed (LD)]

Can the Minister address the commitment that the now Prime Minister made for 50% of public sector procurement to be sourced locally? Is that government policy? How does that interact with the legal requirements in the Procurement Bill that a public body in this country would not be able to choose a local producer over a treaty supplier producer, on that basis?