Bluetongue Virus

Mark Spencer Excerpts

Thursday 23rd May 2024 Written Statements

[The Minister for Food, Farming and Fisheries (Sir Mark Spencer)]

The Department for Environment, Food and Rural Affairs is publishing its framework for managing an outbreak of bluetongue virus serotype 3 in England.

Bluetongue is a disease affecting ruminants (such as cattle, sheep and deer) and camelids (such as llamas and alpacas) and is spread primarily by biting midges. It does not affect people or food safety.

BTV-3 first appeared in the Netherlands in September last year. We immediately stopped imports of susceptible species and related products from the affected region and required all imports from neighbouring regions to be tested for bluetongue to prevent the potential import of disease, and we continue to do this.

However, our proximity to the continent and the prevalence of disease puts us at risk of wind-borne incursion of infected biting midges, regardless of our stringent border controls. We detected our first case of BTV-3 in November 2023 as part of our annual bluetongue surveillance programme in Kent, then later in Norfolk.

We moved rapidly to contain disease by establishing temporary control zones in both locations, humanely culling animals that presented a risk of onwards transmission, and undertaking extensive testing and surveillance to understand prevalence and spread. Some 47,425 tests were undertaken, identifying 126 infected animals across 73 premises in four counties. Following this surveillance, there have been no further detections of BTV-3 and there are no current bluetongue temporary control zones in force.

While this represents a very low prevalence, we must not be complacent about the challenge this could pose to our livestock sector. Our latest risk assessment indicates that there is a high likelihood of a new introduction of bluetongue into livestock in Great Britain from wind-borne biting midges from northern Europe this year.

This disease control framework for bluetongue virus serotype 3 in England in 2024, published today by the Department, looks to mitigate the impacts of such an incursion on our vitally important livestock and farming sectors.

Although animal health and disease control are devolved matters, disease does not respect boundaries and the Government and devolved Administrations work closely through the UK-wide animal diseases policy group to consider and plan for animal disease outbreaks, and BTV-3 is no exception. Close working on the response to last year’s incursion and planning for 2024 has taken place, and continues to take place, to ensure consistency of approach as far as possible. This framework recognises that England’s proximity to disease on the continent confers a likely additional responsibility on the Department to stem spread to other parts of the United Kingdom. The Government will work closely with the devolved Administrations to support the objectives of the Great Britain bluetongue disease control strategy https://www.gov.uk/government/publications/bluetongue-gb-disease-control-strategy and the UK contingency plan for exotic notifiable diseases of animals https://www.gov.uk/government/publications/great-britain-and-northern-ireland-contingency-plan-for-exotic-notifiable-diseases-of-animals.

The framework has been developed on the back of extensive analysis of the potential trajectory of disease and close engagement with sector representatives on our livestock core group, as well as roundtables held with a wide range of sector groups. It provides an overarching guide to how any bluetongue outbreak will be managed so that livestock keepers and other potentially affected businesses can understand the possible effects for them individually and collectively. We want to ensure that our control strategy is proportionate. We will continue to work with industry to keep it briefed on the latest disease and veterinary assessments.

A safe and effective vaccine will be the best long-term protection against BTV-3. The Department and the Veterinary Medicines Directorate began conversations with manufacturers back in February and several vaccines are in development. Some have in recent weeks been expedited for emergency use on the continent. This is not the approach that the Department has settled with industry.

It is clear that confidence in the safety and efficacy of any vaccine is of paramount importance, not only for encouraging good take-up among keepers, but in protecting exports of beef, lamb and dairy products. The vaccine approved by the Dutch authorities has emergency use approval but not market authorisation. Vaccines without market authorisation can have potentially negative implications for trade and may impact our strong export market for meat and dairy products.

That is why we continue to actively engage with vaccine manufacturers on the development of an authorised BTV-3 vaccine and published a prior information note on 10 May to identify further potential suppliers. We are also actively monitoring vaccine data from EU countries and engaging with their Governments to learn from their experiences.

While this essential due diligence is undertaken, aside from some potential small-scale culling at the outset to prevent disease becoming established, disease control efforts primarily centre on movement controls of susceptible livestock and germinal products. These have the effect of delaying spread but cannot hold back disease indefinitely or eradicate it—as circulation becomes established in biting midge populations and their range expands over time, movement controls lose their effectiveness and will need to be modified or withdrawn. The plan sets out some of the steps that will be considered in tightening or lifting movement controls over time.

The framework also recognises the impact that movement controls can have on animal keepers and other affected businesses. It seeks to minimise burdens as far as practically possible, while maintaining the integrity of measures to mitigate risk of spread of this exotic disease. This includes, for example, a new online system that keepers can use to apply to the Animal and Plant Health Agency for licences to move their animals from disease control zones in the event of an outbreak.

Supporting farmers to take preventative action, the Government will offer free bluetongue tests to keepers in the high-risk south-east and eastern counties, from Norfolk down to East Sussex, who are planning to move animals out of these counties. This testing will be available as soon as the risk increases but before the first detection of disease. Keepers will be able to check on the APHA bluetongue interactive map if they are in an eligible area. We are introducing the scheme to give animal keepers the tools to manage the risk of disease spread outside of the higher-risk counties during the period before disease is confirmed.

All testing will be carried out at the UK’s bluetongue virus national reference laboratory at the Pirbright Institute, supported by our official laboratory network, where needed, to ensure sufficient capacity, and this scheme will go live when the risk level changes—this is likely to be in the coming weeks when temperature increases, wind patterns from the continent and prevalence of disease there coalesce to make incursion and spread likely.

We recognise how important it is that farming businesses across the country have access to the best possible advice to help them understand the disease, prepare and access the support that we are putting in place. That is why we have had and will continue our programme of engagement with industry, to ensure that they have all the information that they need and we understand the key issues they are facing. This is alongside our ongoing preparedness work, regular meetings with key stakeholders and webinars for vets and show organisers. We will continue to strengthen and expand our guidance to farmers, livestock keepers, show organisers, importers, exporters and associated industries—available via www.gov.uk/bluetongue —as the situation develops.

Finally, vigilance for bluetongue clinical signs in susceptible animals is key. We encourage keepers to monitor animals frequently, getting in touch with APHA immediately if they have any suspicions of this notifiable disease.

[HCWS500]

Expanding the Sustainable Farming Incentive Offer

Mark Spencer Excerpts

Tuesday 21st May 2024 Written Statements

[The Minister for Food, Farming and Fisheries (Sir Mark Spencer)]

Today, the Government will publish the details of the expanded sustainable farming incentive offer, providing significant improvements and expansion to the scheme, so that they work for farmers and their businesses.

In six months, almost a quarter of all farmers have applied to join the SFI. This is the Department for Environment, Food and Rural Affairs’ most popular agri-environmental scheme to date. This level of interest underscores the importance of schemes that are flexible and straightforward, qualities we have worked to incorporate based on the direct input of the farming community.

From July, farmers and land managers will have the opportunity to access an expanded offer, bringing together and enhancing the SFI and countryside stewardship mid tier. This will simplify and streamline the application process, allowing farmers to focus on what they do best: producing food. For the first time, the SFI is available to those who did not receive basic payment scheme payments.

The expanded SFI offer will increase the number of actions to 102, covering a wide range of themes. The 102 actions comprise of all the actions currently available in the SFI offer, 23 new actions including agroforestry, precision farming and no-till practices for the first time, a new and improved offer for upland farmers, a much wider range of actions accessible to tenants, and 57 improved versions of actions currently in countryside stewardship mid tier, including one endorsed action initially—species-rich grassland—which will come online when the offer opens. New actions will support flood and water management, helping businesses to become more resilient to the changing climate and challenging weather conditions. We are developing even more actions to be added to the expanded SFI offer later this year, including 16 more actions that were announced in January’s agricultural transition plan update.

To safeguard domestic food production, in March 2024 we placed limits on the amount of land farmers can enter into six SFI actions. In the expanded SFI offer, we are placing limits on an additional four actions to further safeguard domestic food production.

We are doubling the management payment, recognising the work farmers do to enter these schemes. From summer, those with existing agreements will receive up to an additional £1,000 in the first year of their agreement, paid quarterly. The management payment will pay £40 per hectare for up to the first 50 hectares entered into an eligible agreement and £20/ha for the first 50 hectares for years two and three.

On average, farmers taking part in the SFI are receiving more money than they would have done through the BPS. The average value per hectare of applications so far is £147. Alongside delinked payments for small farms this year —£115/ha—this adds up to more than the value of BPS per hectare. Farmers received £233/ha through BPS but are receiving an average of £262 through delinked payments and the sustainable farming incentive.

We have designed the SFI so that it works for small farms. In addition to the increased payment for the management payment, which favours smaller farms, we have extended eligibility to new entrant farmers and smallholders and quadrupled the number of actions available.

Our aim is to provide farmers with the necessary tools, funding and support to navigate the challenges posed by the changing climate, such as the recent prolonged wet weather. This will ensure their businesses remain resilient and productive while delivering environmental benefits. The expanded sustainable farming incentive offer and the protection of the farming budget at its current level is a clear indication of our dedication to the agricultural sector, and we are confident that it will contribute positively to both our environment and food security.

DEFRA invites all eligible farmers and land managers to explore the new expanded offer and take advantage of the benefits it provides.

This summer, we will publish information on countryside stewardship higher tier, including details of each higher-tier action, eligibility, how to apply and how to request specialist advice. From later this summer, farmers will be able to start working with Natural England or Forestry Commission advisers to prepare to apply. Online applications for higher tier will open in the rural payments service this winter. Applications will then stay open on a rolling basis, so farmers can choose when to apply.

[HCWS491]

Under-10-Metre Fishing Fleet: South-West

Mark Spencer Excerpts

Wednesday 15th May 2024 Westminster Hall

[The Minister for Food, Farming and Fisheries (Sir Mark Spencer)]

It is a pleasure to serve under your chairmanship once again, Ms Rees. I start by paying tribute to my hon. Friend the Member for St Austell and Newquay (Steve Double) for securing this debate. I should be clear at the beginning that it will probably not be possible for me to respond to all the points raised in the debate in the seven and a half minutes that are now available to me, but I will do as rapid a response as I can, to get through as much as possible.

Last Sunday, I had the privilege of joining colleagues in this Chamber to attend a memorial service in Grimsby as part of National Fishing Remembrance Day. We are grateful to those who have given their lives at sea to secure fish for the tables of our nation, but we must work tirelessly to make sure that those numbers are not increased and that we keep people safe at sea in the future.

The fishing industry in the south-west has an extraordinarily rich heritage and wonderfully diverse fleets, as my hon. Friend eloquently set out. There is strong industry leadership in the region—I commend the work of the Cornish Fish Producers’ Organisation, for example, which has been innovative across a range of issues. Its report on the true value of seafood to Cornwall makes for powerful reading. It shows that there are 15 shore-based jobs for every fisherman, and that seafood jobs are four times more important to Cornwall than they are to the rest of Great Britain. That is something we need to bear in mind when making decisions in the future.

The innovative marketing of Cornish sole, otherwise known as megrim, has yielded benefits in terms of increased sales. I hope that the marketing of Cornish king crab will work wonders for spider crabs in due course. The industry has worked hard to ensure Marine Stewardship Council accreditation for Cornish sardines and Cornish gillnet-caught hake. I pay tribute to those involved in all the work going on. I acknowledge that there are also challenges, many of which have been raised my colleagues this afternoon.

Starting with pollock, my hon. Friend the Member for St Austell and Newquay recognised the action that we have taken to compensate those who have been impacted. We were challenged that we should have had a consultation—apparently, we should have consulted. I think that, at that moment in time, had the Government said, “Thanks for raising your concerns. We’ve heard you. We’re going to have a three-month consultation before we decide what to do,” we would have had a disaster. There was no time to navel-gaze at that moment. That is why the Government took strong action at the time and stepped in to try to assist those fishermen.

I am grateful to hon. Members here who came banging on my door with enthusiasm and tenacity in order to secure the future of those fishermen. We want to keep them fishing. We want to keep them in those ports and generating those jobs, which is why we went out and set up a scheme. Around 50 vessel owners will be directly compensated for half their reported pollock landings income in 2023. Almost £400,000 has been paid out so far, and a number of owners are still to submit their paperwork. I encourage them to do that.

Let me turn to bass, which is of course another significant fish species. My hon. Friend the Member for St Austell and Newquay and other colleagues rightly raised the importance of bass fishermen to the south-west. They are also important around the country. That is precisely why we worked with the fishing industry on a bass fisheries management plan. That FMP, published last December, sets out a road map for sustainable domestic stock management. That is crucial.

I should be clear that we always seek to strike the right balance between increasing fishing opportunities where we can and protecting stock for future generations. That is not always easy, because it can have an impact on people’s incomes and their ability to catch fish, but every fisherman I meet tells me that they want future generations to be able to carry on catching fish. They believe in that sustainability, but want to work with the Government to ensure that we see that.

Quota was mentioned briefly. For many years, we have heard about what seems to be an imbalance between the inshore fleet’s access to what it sees as its fair share of quota and that of larger vessels, those not under 10 metres. We will of course continue to listen to those representations, to ensure that we find a way through.

On tuna, I think I am on the record as being quite excited about the opportunities that tuna bring, which a number of colleagues mentioned. I regret to say that we only have a little more than 66 tonnes of bluefin tuna quota, but I am keen to increase that in future, to ensure that we seize the opportunities for the sporting sector and commercial fisheries, and make the most of them.

Before I finish, I will turn to the immediate challenge for the port of the loss of the Plymouth auction. We are keen to help, if we can, and I want to keep colleagues informed. I am very grateful to my hon. Friend the Member for South East Cornwall (Mrs Murray), who raised the issue with me last week and highlighted the challenge being faced. I think the best outcome is for the private sector to step in, but there may well be a role for Government to assist in that process. What I do not want to see is fish moved in the short term to Brixham and other ports, maybe Newlyn, and for that to corrupt the model that exists at Plymouth in the longer term. We want to see that succeed, and I will of course work with colleagues across the parties to ensure that we find solutions. It might well be worth convening a cross-party roundtable to ensure that we in Government are informed and that Members are aware of what we are doing. I commit to that.

Leaving time for my hon. Friend the Member for St Austell and Newquay to sum up his debate, I will end on an upbeat note. I think that the inshore fleet has a positive future, and I am always impressed by the passion of those in it and by their innovation in the industry. I am sure they will find a way to benefit from the opportunities and the challenges they face. The Government are here to help. We have a track record of helping, and we will continue to do so. Working together and continuing to have that dialogue, we will ensure that we have a bright, profitable and sustainable future for the fishing sector in the south-west.

Agriculture

Mark Spencer Excerpts

Monday 13th May 2024 Commons Chamber

[The Minister for Food, Farming and Fisheries (Sir Mark Spencer)]

I beg to move,

That the draft Agriculture (Delinked Payments) (Reductions) (England) Regulations 2024, which were laid before this House on 16 April, be approved.

I declare my farming interests, as set out in the Register of Members’ Financial Interests. The instrument continues the important agricultural reforms that we are making in England—reforms that support the long-term prosperity of the sector. It applies progressive reductions to delinked payments for 2024. Delinked payments were introduced on 1 January 2024 in place of payments to farmers under the basic payment scheme in England. The reductions in the instrument were first announced in our agricultural transition plan in November 2020. They continue the progress of gradually phasing out untargeted subsidy payments over our seven-year agricultural transition period in England. We are now in the fourth year of that seven-year transition.

We remain committed to moving away from untargeted payments, which have served our industry so poorly. Most of the money has been paid to the largest landowners, and the payments have done little to improve food production or the environment over that time. I reiterate that the overall annual farming budget is being maintained at an average of £2.4 billion per year across this Parliament —money that is no longer being spent on untargeted subsidy payments and is not lost to farmers. Instead, it funds the sustainable farming incentive and other farming support.

As was the case under the basic payment scheme, we are applying the reductions to delinked payments in a fair way. Higher percentage reductions are applied to amounts in higher payment bands. We plan to make delinked payments in two instalments each year, which will of course assist with farmers’ cash flow. By continuing to gradually reduce the subsidy payments, we are freeing up money so that farmers can access a range of environmental land management schemes and grants to suit all farm types. We planned for the agricultural transition, and we are delivering on it.

[Sir John Redwood (Wokingham) (Con)]

I am pleased that the Minister and the Prime Minister are keen on promoting more home-grown food. As the transition occurs, what proportion of total subsidies paid will be for promoting food? It still seems to be too small.

[Sir Mark Spencer]

My right hon. Friend will understand that the basic payment scheme did not motivate food production at all, as it was not linked to it. As we move to the new regime, we are promoting better productivity through grants for better equipment. We are investing in new technology. Alongside that, we are pushing to improve gene editing and gene technology, to try to make agriculture more sustainable and more productive at the same time. As we go through this transition, we are certainly keen to increase the productivity of our agricultural sector.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister as always for his positivity about the farming sector. The farmers’ union has asked me a specific, technical question that I would like to have on record. Does the Minister agree that since the transfer window for delinked payments closed on 10 May, clarity is needed that that will not apply to cases of inheritance, with the ability to transfer ownership not affecting payments that can be made when a business is passed on through a death in a family? Should that not be reiterated to those who may believe that they would lose necessary payments? The Minister may not be able to answer that right away, but could he let me know?

[Sir Mark Spencer]

The hon. Member will be familiar with how matters of inheritance tax are for the Treasury rather than this Department, but we want to see that fair transition between generations so that family farms can be passed from one generation to the other to continue to maintain our landscapes and produce top-quality food, as we have for a long time. I will ensure that he gets the right answer to his question as soon as possible.

Our new schemes are investing in the foundations of food security and profitable farm businesses, from healthy soils to clean water. This year, we have increased payment rates for our environmental land management schemes by an average of 10%. Some payment rates went up by significantly more: species-rich grassland rose from £182 to £646 per hectare.

[Mike Amesbury (Weaver Vale) (Lab)]

The frustration that farmers in the Cheshire part of my constituency have raised with me is about the speed at which money gets out the door and into farms. The Minister will also be familiar with the unprecedented weather patterns that we have had. What extra provision will be put in place to deal with some of the consequences of climate change and, in particular, flooding that we have seen recently?

[Sir Mark Spencer]

I am grateful to the hon. Member for raising that important topic. We have listened to those farmers and improved the speed at which we pay for new SFI agreements, moving those payments forward to help farmers with cash flow. That is why we changed the basic payment scheme to ensure that we made payments not in one chunk in December but in two payments, with one in July and one around December.

The hon. Member also mentioned the unprecedented season that we are in the middle of and the pressure that will put on farmers in the autumn. That is why we introduced the support fund that is now trying to help affected farmers in the east of England in particular—I know that does not apply to Cheshire. We have committed to extending that scheme to try to help people. We are still in conversations with the National Farmers Union and farmer groups to try to look at what more we can do to mitigate the impact that the season will have.

Many of those farmers will not feel the effect of that weather in their cash flow until this autumn. Many of those who have not been able to plant arable crops have had the benefit of not having to pay out for fertiliser and agricultural sprays during this season—ironically, that will help their cash flow—but they will have an empty shed at the end of that process, which will put huge pressure on cash flows in the autumn when they would have had crops to sell.

[Mr Laurence Robertson (Tewkesbury) (Con)]

I am pleased with the Minister’s last remarks: he is recognising the problems that farmers have. This morning, I received an email from the NFU referring to its recent survey and stating that short and mid-term confidence among farmers is at its lowest level since records began, and that production is expected to decrease over the next year. Given all the problems that farmers are facing, is he absolutely sure that now is the right time to make these reductions?

[Sir Mark Spencer]

I should be clear and gently push back when my hon. Friend mentions reductions. The budget for the basic payment regime was £2.4 billion, and £2.4 billion is still the budget. So the size of the cake is completely the same, but the way in which the cake is being cut is different. Those are the changes we are making. The way in which we are dividing that cake is different, which is causing some challenge to some farmers.

My hon. Friend mentioned farmer confidence and the fact that some farmers are saying that productivity rates will be lower this year than they have been in the past. I think there is some truth in that: many farmers—I again draw attention to my entry in the register—have experienced unprecedented weather events and have been unable to plant crops, so they will see lower productivity this season. We are very much aware of that, and we continue to talk to farming representatives about how we can help to mitigate some of the impact later this year.

[Jim Shannon]

The Minister is gracious in giving way, which I appreciate very much. If farmers cannot plant their crops, they cannot produce the food, as he knows. If they cannot produce the food, prices increase. The Government are committed to reducing inflation, as they should be, and we welcome the fact that it is coming down. However, if we do not help the farmers with food production, inflation has the potential to rise. What can the Government do to alleviate those problems?

[Sir Mark Spencer]

The hon. Gentleman highlights a long-term challenge that we face: if we are going to be impacted by climate change and increasingly difficult weather patterns in future, we need to ensure that farmers have the resilience needed to manage those. That means investing in gene technology to make sure that we have varieties that can deal with different swings in climate, new machinery, new technology and new farm equipment. We were able to take money from the basic payment scheme and invest it in grant schemes, in order to help farmers invest in the new machinery and technology to mitigate some of those impacts. There is a lot that we can and are doing to help them along on that journey.

[Mike Amesbury]

rose—

[Sir Mark Spencer]

I will give way one more time, but I am conscious that other Members want to speak.

[Mike Amesbury]

I thank the Minister for giving way; he is being generous with his time. Has any impact assessment of ELM been done? Has it been published? I feel that we are operating blind here.

[Sir Mark Spencer]

We have consistently and regularly engaged with farmers and stakeholders to listen to their concerns. The hon. Gentleman will be aware that in January we announced increases in many of those sustainable farming incentive opportunities, because we listened to farmers telling us that some of those payments were not right and were not high enough. We listened and we increased those payments. We are constantly scanning and listening to the sector and working hand in hand with farmers to ensure that the schemes we devise and introduce are farmer friendly and are understood by the farming sector.

This year we have increased payment rates in our environmental land management schemes by an average of 10%, although some payments went up by significantly more. We have also doubled the management payment for the sustainable farming incentive, which is now worth £2,000 for the first year of an agreement. That will encourage even more smaller farms to join the scheme, on top of the many that have already done so.

From the summer we will launch up to 50 new actions that will allow farmers to access the scheme funding for things such as precision farming and, for the first time, agroforestry. The new actions give even more choice to farmers in what they can do, especially those on moorlands and grasslands. Nearly half of all farmers are now in one of our schemes. So far there have been almost 22,000 applications to the sustainable farming incentive under our 2023 offer, and there are now more than 35,000 live countryside stewardship agreements in place.

Farmers taking part in the sustainable farming incentive are typically more than making up their lost basic payments. The value per hectare of applications to date is £148. That, alongside delinked payments for small farms this year of equivalent to £117 per hectare, adds up to more than the value per hectare of the basic payment scheme before we started our reforms: £233 per hectare under the old basic payment scheme versus a total of £263 under delinked payments and the SFI.

Smaller farms potentially have access to more income than before. Under the basic payment scheme, half the money went to the 10% of largest farms. Under SFI, payments are based on the actions the farmers take rather than simply the amount of land they have. There are many credible ways in which SFI agreements can produce more income than the basic payment scheme for a typical farm.

The sustainable farming incentive can also help to deliver a reduction in costs and waste on farms to make them more resilient and improve food production—for example, by paying farmers to plant companion crops to help manage pests and nutrients, assessing and improving the health of farmers’ soil, and growing cover crops to protect the soil between main crops. This year we will make it even easier for famers to access funding by allowing them to apply, through one application process, for actions that were previously in countryside stewardship —particularly in mid-tier—and the sustainable farming incentive. That is part of our commitment to make it as easy as possible for those who want to apply.

We have also announced the largest ever grant offer for the agriculture sector, totalling £427 million. It includes a doubling of the investment in productivity and innovation in farming to £220 million this year. That will provide support for farmers to invest in automation and robotics, as well as in solar installations to build on farm energy security. It also includes £116 million for slurry infrastructure grants and £91 million for grants to improve the health and welfare of our farm animals.

[Selaine Saxby (North Devon) (Con)]

I thank the Minister for clarifying the details of today’s announcement. Farmers in my constituency are delighted about being able to apply for the slurry grant, but the works imposed alongside it by Natural England mean that it is not viable for them to continue with their herds.

[Sir Mark Spencer]

Of course, we continue to engage with Natural England and the Environment Agency, which have an interest in ensuring that we get slurry infrastructure in the right place. If my hon. Friend has specific examples of the system not working, I would be delighted to take those cases up for her. We want to see investment in the south-west, and in other constituencies, to ensure that we manage on-farm nutrients and slurries in the best environmental way. Not only does that benefit the environment and those farms; it also helps the farm business, in that farms are managing their own nutrients and do not have to spend money on costly artificial fertilisers because they can replace some of that with organic manures.

We are providing a range of other support for farmers and land managers, including a third round of our landscape recovery scheme later this year. The farming resilience fund continues to provide free business support to help farmers to plan and adapt their business. To date, over 20,000 farmers have received that support. Our schemes and grants help to support viable businesses, to maintain or increase food production, and to achieve better outcomes for animals, plants and the environment. All that is possible only because of the regulations, which I commend to the House.

--- Later in debate ---

[Sir Mark Spencer]

I thank all hon. Members who have contributed to today’s debate. I also thank the Secretary of State for being in his place to demonstrate his support. Two former Secretaries of State turned up in the Chamber to offer their support, and I pay tribute to my right hon. Friends the Members for Suffolk Coastal (Dr Coffey), and for Camborne and Redruth (George Eustice), for their measured contributions to today’s debate.

As we have said, it is vital that we continue to gradually move away from untargeted subsidies, as planned. Such payments have inhibited productivity improvements, and are fundamentally unjust. Our farmers deserve better. Applying reductions to delinked payments means that we can fund our other farming schemes. Our new schemes are designed to support farmers to be profitable and resilient, while delivering improved environmental outcomes and supporting sustainable food production.

In January, we announced the biggest upgrade to our farming scheme since leaving the EU. We will be adding up to 50 new actions for which farmers can be paid on their farms, which means that there will be more choice than ever for our farmers, and our increased payment rates ensure that they will be rewarded fairly under our environmental land management schemes. There are a wide range of schemes, grants and advice that farmers can access right now, and I encourage farmers to take advantage of these offers, which will support their businesses in both their profitability and their environmental footprint. For example, our new schemes are providing support to farmers to help them reduce costly artificial imports and increase their productivity.

Food production is, and always will be, the primary purpose of farming, but delinked payments are not about food production. Instead, we are investing in our new schemes, which support farmers to produce food sustainably alongside improving the environment. The vast majority of land in the sustainable farming incentive continues to produce food. The Government take food security very seriously.

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

I am grateful to my right hon. Friend for giving way, and I apologise to the House for not being present at the opening stages of this debate; I was in the Public Accounts Committee. I also declare my interest as a working farmer. Does he agree that there is a danger in this system that if farmers’ incomes get squeezed, it is the infrastructure that is likely to suffer? Will he make sure that there are sufficient incentives in the new scheme for farmers to invest in infrastructure—in cattle barns, in grain stores and in drainage? These sorts of things are likely to suffer and therefore productivity could also suffer.

[Sir Mark Spencer]

I am grateful for that intervention. That is why we are offering grant schemes for such infrastructure projects. For example, there will be grant schemes to improve on slurry infrastructure, on calf housing and on beef housing, to make sure that we not only invest in that infrastructure, but do it in a way that is sensitive to our environmental and animal welfare footprints. That is exactly what we are trying to achieve. While I am talking about infrastructure, it is also vital to the rural economy that we support things such as local abattoirs to ensure that they are there for the future. We have introduced the abattoir support scheme for those small abattoirs, to make sure that that infrastructure is in place to support the farming network as we move forward.

The Government take food security very seriously. Underlining our commitment to improving food security, at the National Farmers Union conference this year the Prime Minister announced the introduction of the annual food security index. This underpins the three-yearly UK food security report. Applications under our 2023 sustainable farming incentive already cover over 2 million hectares of land. The scheme has already had a higher uptake than in the first few years of countryside stewardship and is on track to achieve a higher uptake than the first year of environmental stewardship. We know that 81% of farmers that took part in research rated the existing sustainable farming incentive offer positively, which is an increase from 51% at a similar point in the pilot. This shows that we are listening to farmers and making improvements to the scheme so that it works on the ground for those individual farmers. We are making even more improvements in our 2024 offer.

Turning to some of the comments, it is worth noting that there is consensus in the House that this is the right thing to do. There was some criticism, and some political points were made by the Opposition, which is entirely their right, but this Conservative Government are backing our farmers, improving food security and protecting the environment. Let us take a moment to look at what is happening in Wales. The Leader of the Opposition was clear that the Welsh Labour Government were a blueprint for what they would do in the UK if they got into power, but if Welsh Labour’s approach was applied to England, an estimated 20,000 farms would be forced out of business. That would be a complete catastrophe for the rural economy and for farming in England and would detrimentally affect food security in the UK. In Wales, Labour politicians have suggested that farmers hit by TB should simply go out of business. We on this side of the House will never turn our back on farmers that face those challenges. We will always be there to support them and make sure that we back them. Following that blueprint would take us back to square one. This instrument is essential so that we can fund our schemes that support farmers to be resilient and sustainable over the long term, and I commend it to the House.

Question put and agreed to.

Resolved,

That the draft Agriculture (Delinked Payments) (Reductions) (England) Regulations 2024, which were laid before this House on 16 April, be approved.

Oral Answers to Questions

Mark Spencer Excerpts

Thursday 9th May 2024 Commons Chamber

[Munira Wilson (Twickenham) (LD)]

15. What steps his Department is taking to help reduce air pollution.

[The Minister for Food, Farming and Fisheries (Sir Mark Spencer)]

We are driving down emissions and concentrations of the most harmful air pollutants, reducing their impact on public health and the environment. Through the Environment Act 2021, we introduced further legal targets for fine particulate matter. We have allocated £883 million to support local authorities, and air pollution has fallen significantly since 2010, with emissions of nitrogen oxide down by 48%, PM2.5 down by 24%, and sulphur dioxide down by 74%.

[Jane Hunt]

Given that incinerator capacity far outweighs waste, I welcome the Government’s decision to introduce a short-term pause in the determination of applications for environmental permits for certain types of waste incineration facilities. Will the Minister please now extend that pause beyond its current official end date of 24 May and include existing incinerators that have applied to increase their capacity?

[Sir Mark Spencer]

I am grateful for my hon. Friend’s question. Our assessment of incineration capacity and needs is ongoing—I do not want to prejudge the outcome of that work or any of the next steps—but the Government are clear that proposed waste incineration facilities must not result in overcapacity or compromise our ambitions to minimise waste and improve recycling.

[Munira Wilson]

Last month, my local authority of Richmond upon Thames, along with other councils, was informed by DEFRA that its local air quality grant of £1 million—which had been awarded just two months earlier—was being rescinded. Given the number of areas in Twickenham breaching air quality standards, including areas close to schools, and with World Health Organisation targets becoming ever more stringent, how does the Minister think he is meeting his commitment to “expand the resources available to councils to improve air quality”?

[Sir Mark Spencer]

I am grateful for the hon. Lady’s question, which gives us the opportunity to highlight the great progress we are making in this area. We want to continue to make progress and support local authorities, but we did have concerns that the local air quality scheme was not delivering the most positive outcomes, and some of the bids that were coming forward were not aimed at improving air quality: we had bids for a robotic chatbot and for a kinetic art project. We want to focus on improving air quality and make sure we are funding local authorities to do just that.

[Duncan Baker (North Norfolk) (Con)]

8. If he will take steps to implement a dog groomers charter mark that includes a register of serious injuries for dogs.

[The Minister for Food, Farming and Fisheries (Sir Mark Spencer)]

Under the Animal Welfare Act 2006, groomers must protect dogs under their control from harm and provide for their welfare needs. Where that Act is breached, offenders face imprisonment or an unlimited fine. As the legislation is already clear, we do not have any plans at the moment to implement a charter.

[Duncan Baker]

A constituent recently brought quite a distressing case to my office. A routine trip to the dog groomer’s turned into a disaster for her beloved pet. The dog was seriously injured due to the groomer using incorrect equipment, resulting in painful lacerations, multiple veterinary visits and permanent scarring. Unfortunately, that is not an isolated case. I am aware that, as the Minister says, the Animal Welfare Act provides some framework in relation to intentional harm, but I am amazed at the lack of regulation in the industry. Will the Minister make an assessment of what further legislative steps can be taken to regulate the dog grooming industry and ensure the safety of all dogs?

[Sir Mark Spencer]

I am grateful to my hon. Friend for raising this case, and obviously I sympathise with his constituent whose pet suffered that poor practice. The Government’s belief in the importance of animal welfare underpins the strong protections included in the Animal Welfare Act, and we will take steps to address widespread welfare issues where they arise.

[James Wild (North West Norfolk) (Con)]

9. What assessment he has made of the adequacy of (a) operational and (b) consented waste incineration plant capacity.

[The Minister for Food, Farming and Fisheries (Sir Mark Spencer)]

Officials are currently assessing planned residual waste treatment capacity, including incineration, against expected future residual waste arising in England, so that we can understand our future capacity needs following the implementation of key commitments in the resources and waste strategy. This capacity assessment will be published in due course.

[James Wild]

My North West Norfolk constituents welcome the moratorium on new waste incinerators and the review, but given that the incinerators already operating and those with consent provide enough capacity as we meet legally binding targets to halve residual waste, may I urge the Minister to make that temporary pause permanent so that we do not have to have an unnecessary and unwanted incinerator in Wisbech?

[Sir Mark Spencer]

DEFRA officials are currently scoping the need for a review of the role of waste incineration facilities, and I do not want to prejudge the conclusions of that exercise. The current pause period will end on 24 May, and the next steps will be announced no later than that date.

[Henry Smith (Crawley) (Con)]

10. What steps his Department is taking to help improve animal welfare.

--- Later in debate ---

[Jane Hunt (Loughborough) (Con)]

T5. What can be done to improve compensation payments for cattle farmers following a TB outbreak?

[The Minister for Food, Farming and Fisheries (Sir Mark Spencer)]

We are constantly working with those farmers facing the misery of a TB outbreak. I am aware of an outbreak in my hon. Friend’s constituency in Leicestershire, which is very painful for the individual farmers concerned. That is why we must throw everything we can at this terrible disease—every tool in the toolbox—to try to stop TB spreading across England.

[George Galloway (Rochdale) (WPB)]

T6. I am so old that I grew up in a land without plastic; a better Britain wrapped in brown paper and string. Last year, our households on this small island handled 90,000 million tonnes of plastic. It is indestructible—it cannot be burned and we cannot get rid of it. Will the Minister support the global plastics treaty campaigned for by Greenpeace and others?

Sport Horse Industry: Import and Export Controls

Mark Spencer Excerpts

Tuesday 30th April 2024 Westminster Hall

[The Minister for Food, Farming and Fisheries (Sir Mark Spencer)]

It is a pleasure to serve with you in the Chair, Dame Caroline. I also pay tribute to the hon. Member for North Shropshire (Helen Morgan) for securing this important debate. I recognise the great economic, social and cultural benefits of the sport horse industry to this country, and I am pleased to have the opportunity to speak on the Government’s support for it.

On the introduction of the new import controls under the border target operating model, the introduction of biosecurity controls on imports is not optional. Now that we have moved away from the EU’s rigid biosecurity, surveillance and reporting systems, we are responsible for protecting our own biosecurity from threats such as foot and mouth disease, African swine fever and the African horse sickness virus, which we must remain alert to despite it never having reached these shores. Otherwise, such threats could devastate UK industries and cause significant damage to the environment, public health and the wider economy. We remember the impact of foot and mouth in 2001, which cost British businesses nearly £13 billion in 2022 prices. It caused massive disruption to many industries, including the sport horse industry.

Biosecurity controls are also essential to protect our exports and international trading interests. Our trading partners want to be reassured that we maintain the highest biosecurity standards. Maintaining our reputation for high biosecurity standards is in the interests of the sport horse industry, to ensure that we can continue to move first-class animals and germinal products in and out of the country.

[Dr Neil Hudson (Penrith and The Border) (Con)]

I congratulate the hon. Member for North Shropshire (Helen Morgan) on securing this important debate. I declare my interest as a veterinary surgeon. The Minister will be aware that a couple of years ago the Environment, Food and Rural Affairs Committee published our report on the movement of animals across borders. There is a balance between allowing the smooth movement of animals and protecting the biosecurity of our animals in the UK. We looked at the key issues of trying to replicate the tripartite arrangement, which allowed for the smooth movement of high-health horses between the UK, France and Ireland, and progressing the digital identification system for horses, both of which would allow smooth but safe movement. Government progress in those areas would help to protect our industries and our biosecurity.

[Sir Mark Spencer]

I am grateful to my hon. Friend for his intervention and for his work in this subject area. He is very informed on these matters and the House benefits a great deal from his expertise. We will continue to work with the sector. We want to have as much freedom of movement as possible, but in a way that protects our biosecurity. I am sure there will be more opportunity for us to benefit from my hon. Friend’s expertise as we find solutions to the challenges.

The new controls begin today. They require high-risk consignments, including equine germinal products from the EU, to enter GB via an appropriately designated border control post, where 100% documentary, 100% identity and 1% to 5% physical checks are undertaken. We are aware that the sport horse industry and its representatives, including the hon. Member for North Shropshire, have been concerned about the controls coming in during the peak season for the import of equine germplasm. We have been glad of their engagement on this topic and for their having drawn their concerns to our attention so that we can address them and make sure we get the implementation right.

The import of equine germinal products provides for genetic diversity and the rapid genetic improvement of British breeding horses. Using the chilled rather than frozen product enhances conception rates, as the hon. Member for North Shropshire pointed out. We know that the movement of these goods is highly time sensitive, if they are to be successful, so we have to consider appropriate measures that work for the sector. We have considered that in the context of the new BTOM controls.

Thanks to representations from the hon. Member for North Shropshire and others, we are aware that on some import routes logistical challenges mean that some checks required by the BTOM cannot currently be undertaken within the required timeframe for the products to reach their destination mare. DEFRA officials have therefore worked closely with the main importers of chilled equine germinal products, port health authorities and the British Equine Veterinary Association to develop and secure approval for a temporary contingency measure with an optional additional adaptation. That will facilitate trade while maintaining essential biosecurity controls.

The contingency measure temporarily reduces the requirement for official identity checks from 100% to 20%, and allows them to take place at a border control post or at the destination, using the optional temporary adaptation pilot process with the BEVA. As a result, the consignments, which also benefit from 100% documentary checks before arrival in GB, complete official import controls in the minimum time possible.

On the movement of live horses—which the hon. Member for North Shropshire was keen to address—in planning and implementing controls we aim to reduce any disruption or administrative burden as far as possible. We recognise that in the case of the sport horse industry we can often rely on robust industry processes that are in place to assure the health of the animal. For that reason, when new border controls on live animal imports come into force, we have developed and agreed, with the help of industry, an exemption for certain horses that meet a definition of high health. Verified equines used in racing, competition, breeding and sales can all qualify for that facilitation if arriving from the EU and sanitary group A countries.

We estimate that approximately two thirds of equine imports will be eligible for the exemption. They will be cleared for import on the basis of a documentary check, and their identity as a high-health horse will be verified with industry databases. That provision will allow them to avoid attendance at a border control post for a physical inspection unless a concern raised during the documentary check triggers such an inspection.

We are also focused on ensuring that the border control post infrastructure, which we will have in place for equines that must come through one, works as well as it can for the animals and their requirements. It is intended that the existing airport BCPs will be supplemented with Government-run BCPs at Holyhead and at Sevington in Kent, which will have the additional impact of assisting animals transferring from the island of Ireland and our friends in Northern Ireland. We are confident that we will have sufficient infrastructure, given the planned exemption for high-health horses, but we will continue to test that position over the intervening months.

We have already been fortunate to have had the benefit of the expertise within the industry to help to shape the physical design of the equine facilities at Sevington, and we have made many adaptations because of that advice. That co-design will undoubtedly make the site more effective in the way it operates. We hope to continue that joint work to test and challenge the operational procedures at the border control post in relation to the way horses travel to the site and are handled and inspected. Of course, that will be an area of focus for our work over the coming months.

We continue to welcome the open and supportive dialogue that we have with the sport horse industry. I again thank the hon. Member for North Shropshire for securing the debate. This is an important set of issues, and I am grateful for the opportunity to discuss them.

Question put and agreed to.

Checks on Goods Entering UK

Mark Spencer Excerpts

Monday 29th April 2024 Commons Chamber

[Stella Creasy (Walthamstow) (Lab/Co-op)]

(Urgent Question): To ask the Secretary of State for Environment, Food and Rural Affairs if he will make a statement on the introduction of checks on goods entering the UK under the border target operating model due to be live on 30 April 2024.

[The Minister for Food, Farming and Fisheries (Sir Mark Spencer)]

Under the border target operating model, tomorrow the Government are introducing documentary and risk-based identity and physical checks on medium-risk animal products, plants, plant products and high-risk food and feed of non-animal origin imported from the EU. Checks on high-risk products, currently conducted at destination, are moving from destination to border control posts and control points. Recent media reports suggesting that the introduction of these controls will be delayed are incorrect.

Documentary checks will happen at all risk levels. Physical checks will initially focus on the highest-risk goods, with some also taking place on medium-risk commodities. We will build up to full check rates to both protect biosecurity and minimise disruption. We will continually review our enforcement approach as we track compliance and trade flow, and will adjust our approach accordingly. This pragmatic approach will support traders as they adjust to the new regime.

The Government have worked closely with industry, inspection agencies and the Animal and Plant Health Agency, known as APHA, to ensure we are ready for the introduction of these controls. We are confident that border control post infrastructure has sufficient capacity and capability to handle the volume of checks expected under the border target operating model. We are confident that our systems are robust, dynamic and effective, and that the inspection authorities are appropriately staffed and trained.

I close by emphasising that the introduction of these biosecurity controls is not optional. Now that we have moved away from the EU’s rigid biosecurity surveillance and reporting systems, we are responsible for protecting our own biosecurity against threats such as African swine fever.

[Stella Creasy (Walthamstow) (Lab/Co-op)]

Let us start by saying this is not about Brexit because, whether Members supported or opposed Brexit, nothing proposed here is inevitable or unavoidable. Having left the EU, we need border controls, but what is proposed will not be controlled—it will be chaos.

The EU brought in checks in 2021, but this Government have delayed doing that five times. In that time, they could have negotiated a sanitary and phytosanitary deal to avoid the mess that is about to happen. Instead, from Wednesday, for the first time, 2.7 million lorries will need to be stopped at Dover so their contents can be checked, and another 4 million will require a health certificate for the animal products they carry. On top of that, 5 million of them will have to pay a common user charge for the privilege of importing goods deemed medium or high risk, whether or not they are inspected. The costs to business, which we know will be passed on to consumers, are horrendous and chaotic, and the charges were confirmed only on 18 April.

The Government have admitted that the checks will cause inflation, but they claim it is only £300 million—0.2%—over three years. Independent analysis shows it will be 10 times that amount, or £8 a month on the average food shop. If the Minister wants to dispute that figure, will he finally publish the modelling that the Government have refused to disclose so we can see how they have come to their numbers? We know their numbers are wrong because, while they have confirmed that the common user charge—the direct cost to each lorry—will be about £145 a time, they admit they have not calculated how much the new veterinary checks will cost, with some running to hundreds of pounds. They cannot make those calculations because they told European countries to set their own standards and charges, so how can Ministers tell us we can be confident when we do not know what will be passed to be healthy in Hungary, Germany or here?

If food standards matter to people, they will be disappointed because the Minister has just admitted that only “some” checks will happen on medium-risk goods from Wednesday. Will he put a number on how many checks will happen from Wednesday? Medium-risk goods are anything of animal origin that are not alive, but could also be beetroot or sweetcorn. What a mess.

Small businesses are going to be clobbered for a fee for a service they will not even get. On top of that, Sevington has not even been declared a border control post to carry out any of the checks. Where will goods coming into Dover be checked on Wednesday, especially if they are high risk? What about the other ports around the UK that can set their own charges? And who is going to enforce any of this? The Government told industry to be prepared, but there will not be any checks after 7 pm, so people can say goodbye to those just-in-time supply chains for perishable goods. People coming back from holiday have no idea what their “personal use” is, so they could be stopped for carrying gorgonzola.

With 36 hours to go, we need some straight answers. Our constituents cannot eat the paperwork or afford the price rises these checks will create. Corner shops, delis and restaurants will go bust and our ports will be bunged up. I say to the Minister that there is still time to cancel the Brexit border tax, so will he please listen to concerns from across the House and do so?

[Sir Mark Spencer]

The hon. Lady either chooses not to understand what is happening, or deliberately tries to inflame a situation that will be of great benefit to the UK moving forward. She deliberately picked the highest figure available. For low-risk goods, there is a £10 charge for products, capped at a maximum of five products, so the maximum amount that can be charged on a lorry load of low-risk goods would be £50.

The hon. Lady is right that we have calculated that over three years that will lead to an additional 0.2% on food inflation. In comparison, an outbreak of foot and mouth disease cost this country £12 billion, not taking into account the impact on international trade and our reputation as a country, so these checks are a small price to pay for ensuring we are safe and protected for phytosanitary and sanitary goods coming into the UK.

[Mr Speaker]

I call the Chair of the Environment, Food and Rural Affairs Committee.

--- Later in debate ---

[Sir Robert Goodwill (Scarborough and Whitby) (Con)]

Obviously, as part of the European Union and the single market, we could not impose checks to ensure that diseases such as African swine fever did not come into the country. The Minister has said that there will be a graduated approach to the introduction of the checks. What is the timescale for ramping them up to a level that he believes will be satisfactory? If consignments are diverted to Sevington, what measures will be in place to ensure that those trucks or vans actually arrive at Sevington and people do not dump what is on board in a layby or transfer it to another vehicle?

[Sir Mark Spencer]

I thank my right hon. Friend for his question and for the scrutiny that his Select Committee has undertaken.

It is important to distinguish between those goods that come into the country through approved routes, via approved importers on traditional lines, and those people who may seek to import goods into the UK illegally or without that documentation. There will still be border control checks by Border Force at the port of Dover to catch those who are trying to do something illegal, but those who are operating within the system will move to Sevington. To stop halfway and avoid those checks would be a criminal act and those goods would not be able to be sold within the UK marketplace.

[Mr Speaker]

I call the shadow Minister.

[Daniel Zeichner (Cambridge) (Lab)]

We recognise the need to ensure the UK’s biosecurity, but I echo the points made by my hon. Friend the Member for Walthamstow (Stella Creasy). What a mess. It is 29 April and the new checks are being introduced tomorrow, but the businesses involved are unclear about how the system is supposed to operate—and that is after the five delays that we have heard about and huge sums wasted on border control points. Perhaps the Minister can tell us how much has been wasted on Portsmouth, for instance.

We want these checks to work. I have been to the London and the Dover port health authorities and been extremely impressed by the work that they do, but it is baffling that, in the battle against Asian swine flu, at Dover, the Minister is taking away vital funding, as the Government move the checks 22 miles up the road to Sevington. Can he tell the House how food vehicles will be controlled on that journey, as Dover Port Health Authority tells me clearly that they won’t?

The Government have admitted that the cost will be an extra £330 million annually. Others say it will be more. What definitive figures can the Minister provide for the inflationary impact that this Government’s border measures will create for food supplies in the UK? What assessment has been made of the savings and efficiency that would be made if we were to achieve a better veterinary agreement with the EU?

In conclusion, the British chambers of commerce says that DEFRA has failed to listen to industry over these changes. Others say the same. Many businesses are exasperated by the endless delays and the repeated and continual lack of clarity and certainty in the implementation of the new system. Why have the Government left businesses and even border chiefs in a position where they simply cannot plan properly and are left in the dark, as one put it, at one minute to midnight in terms of being told about the essential features of the new system? What is the Minister going to do to sort out the mess?

[Sir Mark Spencer]

I thank the shadow Minister for his questions and his interest in this topic. What is clear is that there is a distinction between those goods that are coming into the country illegally, which will still be inspected at the port of Dover by Border Force, and those that are coming in via legitimate routes, by legitimate trade links, from areas that have been inspected by their own country’s equivalent of the Food Standards Agency to make sure that those port goods are safe to come into the UK with the correct documentation. Those goods will go to Sevington. But if someone tries to do something illegal, they will be picked up by Border Force at the port of Dover, via inspection, including intelligence-led inspection. [Interruption.] The shadow Minister says that there is no money, but we are in conversation with Port of Dover to resolve that.

The other challenge that the shadow Minister put to us was that we have delayed this a number of times. That has happened because we have been in conversation with those people and hauliers who have had comments on how to improve the system. We have listened to those concerns and now have the model that will operate, given the advice and liaison we have had with those companies.

[Dr Neil Hudson (Penrith and The Border) (Con)]

As a veterinary surgeon, I am passionate about biosecurity. I am reassured that our Conservative Government are taking this matter very seriously indeed. I thank the Animal and Plant Health Agency and everyone at our borders who do so much in this regard. Prior to leaving the EU, we did not have the opportunity systematically to check animal and plant products coming into the UK. Does my right hon. Friend agree that we now have the opportunity to strengthen our biosecurity and that the introduction of the border target operator model will protect animal, plant and, ultimately, human health in the UK moving forward?

[Sir Mark Spencer]

I pay tribute to my hon. Friend for his work in this area and his expertise in it. Moving forward, we will be in a much stronger place in terms of our phytosanitary and sanitary protections. That is the right outcome. We will continue to ensure that we are safe in the UK and that we protect our borders proportionately.

[Mr Speaker]

I call the SNP spokesperson.

--- Later in debate ---

[Sir Mark Spencer]

The hon. Gentleman’s characterisation is simply untrue. We have been working closely with the sector, with hauliers, and with companies that want to import food into the UK. We are approaching this in a pragmatic, proportionate way. We have taken our time to get it right. I do not apologise for taking time to ensure that the system that we will introduce tomorrow is proportionate and pragmatic. We have listened to the companies that will use the systems to ensure that we get it right and it works. We are ramping this up at a pace that is slow but steady to ensure that we get to the right place in the right time, to keep the country safe from any disease.

[Damian Green (Ashford) (Con)]

My right hon. Friend makes the point that there have been delays, and he makes no apology for them. Given those delays, will he accept my assurance, since Sevington is in my constituency, that the team working there, whom I have spoken to about this in great detail, are absolutely prepared and well trained to do the checks as well as they could possibly be done? People can be assured of the safety of import checks at Sevington, because the team there are absolutely across everything that needs to be done.

[Sir Mark Spencer]

I am grateful to my right hon. Friend for his support, and the reassurance that he gives the House. We will continue to listen, and to work with those who want to import goods into the UK, to ensure that we remove as many barriers to the operation of free trade as possible, but at the same time keep ourselves safe.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

Our trade intensity has fallen to the lowest level in the G7, and ITV’s Joel Hills has stated that the estimated costs of the new model are 10 times the Government’s estimate. I hope that the Department will publish its detailed workings soon, but surely the bottom line is that the cost of living crisis has not gone away, and the Minister is basically introducing a system that will cost UK consumers more to check on imports coming from the EU to standards that are exactly the same as the UK’s, and which of course meet EU standards in the first place. Does he seriously think that voters will forgive him?

[Sir Mark Spencer]

The right hon. Gentleman says that there will be extensive costs. As I said, for low-risk products they are £10 per product, limited to a maximum of five products per common health entry document. That means that the costs are reasonable. We calculate that there will be a 0.2% increase in cost over three years. He says that these goods are coming from within the EU under the same regulations. African swine fever is moving across Europe. It is already present in Italy. Were that disease to get to the UK, it would be devastating for the UK pork market and the UK pig population. It would also damage our ability to export pork products around the world if we lost our credibility as being free from African swine fever.

[Mrs Natalie Elphicke (Dover) (Con)]

The Minister is absolutely right about the devastating impact of not having proper checks and the risk of African swine fever, so can he explain why Dover Port Health is having its costs slashed for essential checks at the border? Will he accept that the existing checks should be maintained in full at Dover Port Health; that Dover port of is the right authority, with its state-of-the-art facility, to do these important checks, in respect of which it is the most experienced body across the entire channel; and that we should not risk having these checks at some new, untested, supposedly trained facility 22 miles away in Ashford? That is a risk to this country.

[Sir Mark Spencer]

I pay tribute to my hon. Friend’s tenacious campaign on behalf of her constituents and the port of Dover, but I hope she will not mind my drawing attention to the fact that these are separate regimes: goods coming in legally, via legal channels, with the right documentation will move to Sevington, but the port of Dover is the right place for Border Force to ensure that we are protected from illegal imports, and those checks will still take place. The conversations with the Port of Dover over funding continue, and we want to see Port of Dover continue to help to keep us safe and intercept any illegal imports that people may attempt to bring into the UK.

[Tim Farron (Westmorland and Lonsdale) (LD)]

Those of us from rural communities, particularly those like mine in Cumbria that had to live through the horror of the foot and mouth outbreak in 2001, know how vital it is to have biosecurity at our borders—but intelligently applied, so that we do not damage supply chains and have excessive red tape. Does this issue not shine a spotlight on the fact that we are now, sadly, increasingly reliant on food imports? Britain produces only 60% of the food we eat. Does that not remind us that the Government’s agricultural payments scheme, which actively disincentivises the production of food on good-quality, productive agricultural land, is extremely foolish and should be reversed if we are serious about our security as a country?

[Sir Mark Spencer]

I am familiar with the beauty of the hon. Gentleman’s constituency; as he knows, I was there on Saturday with the shadow Minister. He gives the figures for what we import in total, but for the food we can produce we are at 72%. The Prime Minister has also recognised that challenge, and we will introduce a food security index so that we can monitor this issue, to make sure that the Government’s policies do drive farmers to increase their productivity and their production. I have full confidence in the ability of our farmers to continue to produce top-quality British food, to continue to expand their productivity and to keep the country well fed.

[James Wild (North West Norfolk) (Con)]

These changes are required under World Trade Organisation rules and are about keeping us safe from disease threats, but in practical terms, how will it work for mixed loads in particular, to reduce the cost to business and therefore to consumers?

[Sir Mark Spencer]

My hon. Friend asks an important question. That is why we have capped the maximum charges to five per load, particularly to support SMEs. As I say, for those of medium risk the charge is £10, or a maximum of £50 per load. That cap is specifically aimed at helping and supporting SMEs that are importing food into the UK.

[Sir Chris Bryant (Rhondda) (Lab)]

What do the Government have against the £6.2 billion floristry industry in this country, which employs 240,000 people—seven times as many dentists as we have in this country? Many of them work in small family businesses on very small margins. Why did the Government do absolutely no impact assessment when they increased the costs for those bringing in chrysanthemums, dianthus, solidago, orchids and gypsophila to £500 and introduced severe delays on products that need to be at market by 9 o’clock in the morning? Weddings, funerals, Mothers’ day and Valentine’s day—is there any family event that will not feel the dead hand of this Government?

[Sir Mark Spencer]

The hon. Gentleman is right to highlight how important that sector is to the UK economy; that is why we want to protect those growing flowers here in the UK from any diseases that may be imported via products that have not come through the right channels with the right documentation. We want to keep the growing sector in the UK safe from any of those diseases; that is why we are introducing these checks.

[Sammy Wilson (East Antrim) (DUP)]

The border operating model will not apply on trade between Northern Ireland and Great Britain; those trade routes are exempt. However, given the record of dodgy products being manufactured in the Irish Republic and brought through Northern Ireland to GB, can the Minister give an assurance that, should that route be used either by Republic of Ireland producers or other EU producers, he will not be installing checks on Northern Ireland to GB trade, which is so important to the Northern Ireland food industry and economy?

[Sir Mark Spencer]

Of course, we recognise the importance of the Northern Ireland economy, and we want to ensure that Northern Ireland feels part of the United Kingdom. We will do everything we can to limit any impact. As the right hon. Gentleman identifies, there is currently no timescale for the introduction of the way in which we will monitor and work with those who are moving goods across from that part of the United Kingdom. We want to ensure that that does not become a back-door route, and we will continue to have conversations with the authorities in that part of the world.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

On the subject of back-door routes, can my right hon. Friend tell us when the border control points for the Welsh ports that connect to the EU through the Republic of Ireland will be operational?

[Sir Mark Spencer]

I cannot give my right hon. Friend a date at this moment in time, but we are in detailed conversations—particularly with those at the port of Holyhead, which is an important UK port—and as soon as we have a date, I will update him from the Dispatch Box.

[Neil Coyle (Bermondsey and Old Southwark) (Lab)]

The Minister says that this policy will benefit Britain, but the Centre for Economic Performance says that our food prices are already 30% higher because of Brexit, and independent analysis shows that the Government’s approach will cost another £2.9 billion. Why is he ignoring British business estimates on this issue and hitting British customers with another Tory tax at this difficult time?

--- Later in debate ---

[Sir Mark Spencer]

As the hon. Gentleman will be aware from my previous answers, we are working hard to ensure that we keep UK food producers free from plant and animal diseases. That is why we are introducing these checks in a proportionate way that does not impact on business, it is why we have limited the amount of charges that can be introduced to five per lorryload, it is why we have ensured that those fees are set at only £10 for medium-risk products, and it is why we will continue to work with industry to ensure that we have a proportionate approach that does not take cash away from businesses and only recovers the cost of keeping us safe as a country.

[Gen Kitchen (Wellingborough) (Lab)]

Why have the Government refused to implement a tonnage-based approach, as the EU does, which would support small and medium-sized importers, particularly in Wellingborough? Not doing so risks putting them out of business. To avoid that, will the Minister adopt measures such as ensuring that all small and medium-sized importers can join the trusted trader scheme?

[Sir Mark Spencer]

We did look at different models. Of course, we could have adopted the model of third country to the EU, but that would have created significant cost for those wishing to import food across the channel. We also looked at adopting the EU’s model, which, again, would have cost way more than the model that we are introducing. The model that we are rolling out tomorrow is the best and most pragmatic model that we have been able to develop through working with and listening to the advice of those in the sector.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

Food prices are 30% higher than they were three years ago, and independent estimates reckon that new border checks are equivalent to adding a 10% tariff to imports. What assessment has the Minister made of the impact that border checks will have on living standards in Welsh households, in which one in every four adults has been skipping meals to make ends meet?

[Sir Mark Spencer]

Actually, on increased food prices in Wales, the biggest danger is taking 20% of land away from Welsh farmers and out of production and imposing a top-down approach to those farmers. I hope that the right hon. Lady will rethink her support for the Welsh Government’s disastrous proposals, which will drive thousands and thousands of people out of Welsh agriculture.

[Patrick Grady (Glasgow North) (SNP)]

As a direct result of all these changes, small businesses will close, jobs will be lost and consumer choice will be reduced. That is the exact opposite of what Brexit was supposed to achieve, is it not?

[Sir Mark Spencer]

I do not accept the hon. Gentleman’s characterisation. This is a pragmatic approach to keeping the country safe from animal and plant diseases while allowing the free flow of trade via a model in which people can get certification away from the ports to ensure that they can import products, and stamping down on those who want to act illegally.

[Helen Morgan (North Shropshire) (LD)]

Obviously, these controls will introduce additional logistical steps, which are problematic for time-critical products. I recently met people from Maincrop Potatoes Ltd in my constituency. It trades potatoes to producers, so it has a deadline to hit on those production lines, and it will be importing more this year because of the disastrous potato harvest. Can the Minister provide any reassurance that that process will be streamlined enough to enable that business to continue to move its goods around in a timely way?

[Sir Mark Spencer]

I draw the House’s attention to my entry in the Register of Members’ Financial Interests. What the hon. Lady has described is exactly what we want to try to achieve: making sure that trade, particularly in goods such as potatoes, flows across the channel as freely as possible, but that we protect ourselves from diseases such as brown rot that could be devastating to the UK’s potato production.

[Stephen Farry (North Down) (Alliance)]

Could the Minister set out the Government’s current policy towards a comprehensive UK-EU veterinary agreement, and what negotiations—if any—are happening in that regard? That would surely be a huge win for consumers and producers right across the UK, and would have the added bonus of further reducing the level of checks required on agrifood movements across the Irish sea.

[Sir Mark Spencer]

I do not think that if we were to reach that agreement, it would include veterinary medicines, but of course we continue to have conversations with our friends in the EU to remove as many barriers as possible. We have a strong interest in making sure that the farmers and vets in Northern Ireland continue to get adequate supplies of medicine, and we will work with our friends in the EU to unblock as many of those barriers as possible.

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

My understanding is that the Minister was opposed to Brexit in 2016, and I presume one of the reasons for that is that he opposes red tape. Do this measure and others not indicate that, as feared, Brexit is turning into the biggest chapter of red tape in UK economic history?

[Sir Mark Spencer]

I am a strong believer in democracy. The Brexit debate was one that was settled by the great British public. They voted to leave the European Union, and now I want to embrace the opportunities that that brings for the UK. As a Government, we will continue to work tirelessly to make sure that we make Brexit work for the UK and seize those opportunities that come our way.

[Mr Speaker]

I am now going to have to suspend the House. I suggest that we suspend for 10 minutes in order to allow the Front Benchers to read the statement.

Draft Veterinary Medicines (Amendment etc.) Regulations 2024

Mark Spencer Excerpts

Tuesday 23rd April 2024 General Committees

[The Minister for Food, Farming and Fisheries (Sir Mark Spencer)]

I beg to move,

That this Committee has considered the draft Veterinary Medicines (Amendment etc.) Regulations 2024.

It is a pleasure to serve under your chairmanship, Dame Maria. The draft regulations, which were laid before the House on 4 March, will amend the Veterinary Medicines Regulations 2013 in respect of Great Britain to ensure that our legislative regime for veterinary medicines is fit for purpose to protect animal health, the environment and public health, including the people handling the medicines or the treated animal and those consuming produce from treated animals.

It is estimated that more than half of our households have companion animals. Many of those households will rely at some point on veterinary medicines to keep their pets healthy and well. Farmers also rely on veterinary medicines, including vaccines, to prevent disease and protect the health and welfare of, for example, more than 9 million cattle and 21 million sheep. That, in turn, helps to protect our food chain.

Veterinary medicines are necessarily highly regulated goods. The 2013 regulations set out controls on their marketing and manufacture, as well as their supply, prescription and use. Those regulations, which have not had a major update since 2013, now require amendment to reflect advances and developments in the industry. The draft instrument will make the biggest change to them in a decade. We received strong support from our stakeholders across the supply chain in response to our public consultation in 2023 on the proposed changes to the 2013 regulations.

Given the length and the technical nature of the draft regulations, I will focus on the key changes in them. They will ensure that safe and effective veterinary medicines of high quality continue to be available to treat our animals. They will also encourage the appropriate and responsible use of veterinary medicines, which is especially important for medicines to which bacteria and parasites can develop resistance, making them harder to treat.

The draft regulations will modernise the regulatory requirements for veterinary medicines and ensure that they are fit for purpose by reflecting technological advancements and developments, for example by allowing electronic package leaflets or QR codes on packaging and by adopting a flexible approach to novel therapies. The latter will make it possible to deal with their novel nature, in respect of the data required for the technical dossier supporting an application to market such a medicine.

With these amendments, we can ensure that the most innovative veterinary medicines can be brought to our market without unnecessary regulatory barriers and without compromising our assurance of their quality, safety or effectiveness. We will maintain the UK as an attractive market for companies by removing the renewal requirements for marketing authorisations, increasing certain data protection periods and harmonising across the UK the requirements for post-authorisation monitoring of adverse events related to the medicines, such as side effects.

[Sir Greg Knight (East Yorkshire) (Con)]

In respect of the supply of veterinary medicines, paragraph 7.8(d) of the explanatory memorandum notes the requirement for

“online retailers to register with the regulator.”

Will a registration fee be payable?

[Sir Mark Spencer]

My right hon. Friend asks an interesting question. There is no fee to register, but it is important that those who are selling these medicines into the UK market take the trouble to register so that we can guarantee the safety of our pets, our farm animals and our consumers.

When we were part of the EU, officials in my Department contributed to the development of new EU laws on veterinary medicines, with the main aim being to reduce the regulatory burden. It has always been the expectation that the requirements will also apply in the UK. We are making changes to the regulations in respect of Great Britain, which will, for example, make it easier for businesses to apply for licences for medicines on a UK-wide basis, reducing the regulatory burden for pharmaceutical companies. These companies, which are often global companies, are set up largely to serve the European market as a whole. Changes will also enable common labelling and packaging to be used across the UK. Altogether, this will encourage companies to continue marketing much-needed veterinary medicines here in the United Kingdom.

We are maximising our ability to take appropriate action in the case that a safety concern arises about a product or an active substance—the ingredient that gives a medicine its therapeutic activity. We are doing so by introducing simple registration schemes for manufacturers, importers and distributors of active substances, for online retailers of veterinary medicines, and for manufacturers of exempted medicines for small pet animals. That will improve our regulatory oversight in those areas, without creating an unnecessary burden.

This draft regulations will require pharmaceutical companies and wholesale dealers to report information on supply shortages, which will help us to secure the supply chain and maximise our ability to take action when there is a shortage and maintain the availability of treatment options for our animals.

We are progressing the Government’s plan to tackle antimicrobial resistance through a further reduction in the unnecessary use of antibiotics in animals. The draft regulations make it clear that antibiotics must not be used routinely or to compensate for poor farming practice, while still allowing for preventive use of antibiotics in critical cases in which animal welfare is at risk.

[Olivia Blake (Sheffield, Hallam) (Lab)]

I admire the ambition in the Minister’s statement, but does he share my view that antifungal resistance is not taken seriously enough in this country and that more could be done on prevention, especially in relation to agents that help to get rid of fungal infections, which are dangerous to animal and human health? It is just as serious an issue as antibiotic resistance.

[Sir Mark Spencer]

The hon. Lady is right to highlight that point. We pay a lot of attention to antimicrobial resistance, but she is right to say that we do not always take antifungal resistance as seriously. We need to be aware that nature has the ability to mutate and change, and we need to meet the challenges head on. That is why the regulatory regime is so important: to prevent the overuse of some of these treatments, which could lead to resistance forming.

Making changes to farm infrastructure and practices takes time. The changes that we are making will allow for that, while putting trust in our farmers, who have voluntarily reduced their antibiotic use by 59% since 2014.

Finally, the draft regulations will update the fees for the regulatory services provided under the 2013 regulations, in line with the cost recovery principles in the “Managing Public Money” guidelines. They will allow us to continue the effective regulation of the veterinary medicines sector, protecting animal health, human health and the environment. I commend them to the Committee.

--- Later in debate ---

[Sir Mark Spencer]

I am grateful to the shadow Minister for his support and co-operation. He mentioned divergence, but it is important to recognise that we do not want divergence for divergence’s sake. We want to align with the EU to make things as simple as possible for our food producers, but to maintain our ability to do things differently if we so choose.

Antibiotic use is an important part of the strategy, which I know interests a lot of hon. Members across the House. We have considered it very closely, and it is something that we are very much looking to do.

The shadow Minister asked why we do not fully ban the preventive use of antibiotics in healthy animals. We have included provision for vets to prescribe antibiotics to prevent disease in animals in exceptional circumstances, because a blanket ban might result in a risk to animal welfare and a risk of increased spread of disease.

Our position for many years has been that we do not support antibiotic use to compensate for poor animal husbandry or hygiene. That is now laid out in legislation. The way we would describe that exceptional circumstance, I suppose, is that the use of veterinary antibiotics to prevent disease would have to be prescribed by a veterinary professional. That would be permitted only where there would be a risk of infection or severe consequences if antibiotics were not applied.

The shadow Minister asked about supply in Northern Ireland. We are very conscious of that issue. The changes being made are in line with international standards and, to a large extent, with European regulations. This will encourage applications for new and innovative medicines for the whole UK, including Northern Ireland; such applications could include those for new vaccines to reduce the reliance on antibiotics. They would apply in Northern Ireland, as well as the rest of the UK.

The shadow Minister talked about shortages, which we recognise could be a challenge. The review of shortages will be on a case-by-case basis. We will work with veterinary officers, as well as suppliers and wholesalers, to ensure that there is reliable and available information as soon as an issue is known and identified. In instances of temporary supply issues, the VMD will permit the import of alternatives only until the supply issue is resolved or another suitable product is authorised.

I hope that I have answered the shadow Minister’s questions. I am grateful for the Committee’s support this afternoon.

Question put and agreed to.

Draft Official Controls (Fees and Charges) (Amendment) Regulations 2024 Draft Plant Health (Fees) (England) and Official Controls (Frequency of Checks) (Amendment) Regulations 2024

Mark Spencer Excerpts

Tuesday 16th April 2024 General Committees

[The Chair]

I will call the Minister to move the first motion and speak to both instruments. At the end of the debate, I will put the Question on the first motion and then ask the Minister to move the second motion formally.

[The Minister for Food, Farming and Fisheries (Sir Mark Spencer)]

I beg to move,

That the Committee has considered the draft Official Controls (Fees and Charges) (Amendment) Regulations 2024.

[The Chair]

With this it will be convenient to consider the draft Plant Health (Fees) (England) and Official Controls (Frequency of Checks) (Amendment) Regulations 2024.

[Sir Mark Spencer]

It is a pleasure to serve under your chairmanship, Ms Rees. The first instrument was laid before the House on 26 February. Following your guidance, Ms Rees, I will speak to both instruments, addressing fees on import controls on UK sanitary and phytosanitary goods under the border target operating model.

The fees and charges regulations facilitate flexibility in the application of fees and charging requirements for official controls on sanitary and phytosanitary imports arriving in Great Britain. We have designed a global risk-based import model for sanitary and phytosanitary goods that will deliver a streamlined approach that protects public, plant and animal health; boosts our economic growth; and minimises friction at the border. The instrument enables the necessary fees and charges for official controls, reflecting the new sanitary and phytosanitary border official controls regime, as published in the border target operating model.

The instrument introduces greater flexibility in the composition of fees and charges for official controls while maintaining the requirement of cost recovery. That allows for more comprehensive cost recovery and enables the application of the risk factors set out in the border target operating model to the fees.

The instrument changes the “duty to charge” to a “power to charge” by extending the circumstances in which charges may be reduced or waived. The implementation of the border target operating model relies on the flexible application of risk, ongoing financial viability of competent authorities, and proportionate financial liability across stakeholder and operators. Changing the duty facilitates that desired flexibility.

The instrument enables a consistent charging model across any Government-run border control post in GB. It will be particularly vital once border control post checks on EU imports are introduced in Wales and Scotland, to support trade continuity in all our Administrations.

Finally, the instrument enables fees and charges to be levied digitally and away from border control posts. Without this legislation, all sanitary and phytosanitary consignments entering GB would be required to visit a border control post to physically make payments. That would be administratively and operationally unworkable, because it would require all consignments, not just those selected for an inspection, to attend a border control post, which would add time and burden for hauliers. Every effort has been made to ensure that the fees and charges distribute costs fairly and proportionately for businesses of all sizes and across all sectors, while enabling the Government to fulfil their cost recovery obligations. I am pleased to state that the devolved Administrations have given their consent for the regulations to extend across Great Britain.

To summarise, the instrument facilitates the implementation of the border target operating model and is necessary to enable fees and charges to fund the new sanitary and phytosanitary border official controls regime.

The plant health and official controls regulations apply a requirement for risk-based import checks on medium-risk goods from the EU, Switzerland and Liechtenstein from 30 April 2024, as published in the border target operating model. The instrument ensures that certain imported goods are not within scope of this change, including fruit and vegetables that are currently being treated as low-risk goods while risk assessments are being conducted. It also excludes goods entering Great Britain via a listed west coast port.

Changes are being made to the fees legislation to reflect the risk-based level of identity, physical and documentary checks on medium-risk goods, ensuring that the cost of plant health services are recovered. Fees are also updated for certain goods from non-EU countries to account for changes in the frequency of checks. Finally, two minor typographical errors regarding import checks are being corrected in the fees legislation.

Currently, checks are carried out on high-risk consignments of plants, plant products and other objects imported into Great Britain from the EU, Switzerland and Liechtenstein. Checks are also being conducted on regulated goods imported from all other third countries on a risk basis. GB plant health services carry out these checks and charge for the services accordingly to prevent the introduction and spread of organisms harmful to plants or plant products.

This instrument removes the temporary easement that applied after exiting the EU from import checks of medium-risk plants and plant products imported from the EU, Switzerland and Liechtenstein. These goods will become subject to risk-based checks and the associated fees. I am pleased that the devolved Administrations have given their consent for the regulations to extend across Great Britain, with the exception of regulations 2 and 3, which relate to fees and apply to England only. Welsh and Scottish Government Ministers laid their equivalent fees legislation earlier this year.

I emphasise that the regulations ensure that checks are in place from 30 April 2024 to mitigate any biosecurity risks against certain goods from the EU, Switzerland and Liechtenstein. Protecting our biosecurity is of paramount importance. By facilitating the implementation of the border target operating model and enabling fees and charges for the relevant import controls, the instruments enhance the operation of the biosecurity regime in Great Britain. I hope hon. Members will support the measures and their objectives. I commend the regulations to the Committee.

--- Later in debate ---

[Sir Mark Spencer]

I am grateful to the shadow Minister, the hon. Member for Chesterfield, and to my hon. Friend the Member for Dover for their interventions and thoughts. First, I will say that we have worked closely with businesses to get this right—in the design phase, through the graduated implementation, and with practical tips to make importing as smooth as possible where checks are needed. Businesses indicated that they needed time to prepare for these changes, so we revised the timeline for introducing controls on EU goods, and our phased approach gives them the time to adapt.

We continue to engage with stakeholders across all sanitary and phytosanitary sectors within the UK and across the EU, and with trading partners around the world, to raise awareness of the border target operating model. Information is being shared through a series of live and virtual engagement events and communications detailing the actions required. Online guidance is available at gov.uk. We will, of course, adapt a carefully calibrated approach to enforcement of the new controls that minimises the risk of disrupting trade flows, with an emphasis on educating and supporting businesses to comply rather than enforcing over-vigorously in the first instances.

One of the questions raised was why checks cannot continue at the point of destination, given the impact on the horticultural sector. The place of destination scheme was always intended to be a temporary measure to facilitate the EU exit transition for EU goods. New controls have been phased in over time to give businesses time to adapt their supply chains and import pathways accordingly. The draft border target operating model was produced and developed in collaboration with those stakeholders, and therefore the proposals and timelines have had industry input.

From 30 April, the place of destination scheme will come to an end. High and medium-risk plants and plant products must come through a border control post or designated control point where identity and physical checks will be carried out. Border control posts have long since been used to manage import inspections of goods from non-EU countries, and are an essential component of our biosecurity regime.

Turning to the question about what resources we put in to deal with the plant health checks at the border, import checks of high-risk plants and plant products imported into Great Britain from the EU were introduced on 1 January 2021, recognising the relevant biosecurity risk that such goods pose. More than 55,000 high-risk plants were imported from the EU in the past six months, which were subject to a risk-based import check, including more than 10,000—about 19%—that received physical checks. More than 350 consignments of EU high-risk plants were intercepted, including 131 due to the presence of a quarantine pest or disease, and the remainder related to incorrect health documentation. We will continue to work closely with the Animal and Plant Health Agency to ensure that we get those regulations right as we move forward.

My hon. Friend the Member for Dover asked about Sevington, which is 22 miles away from the Port of Dover. The legislation allows for border control posts to be located away from the point of entry in specific circumstances, and processes will be put in place to mitigate appropriately any additional biosecurity risks that result from Sevington’s inland location. Where a physical check is required, goods cannot be legally placed on the UK market until the load has been taken to the border control post, inspected and cleared. An instruction to attend the border control post for an inspection constitutes a legal requirement, and should a vehicle fail to attend the border control post, officials can require the return or destruction of the goods, or for the relevant local authority to carry out controls such as an identity or physical check. Any placing of the goods on the market would be illegal, and the relevant local authority would be able to take the appropriate action, such as a recall from sale and potential legal action.

[Mr Perkins]

Before the Minister moves on, he has explained what will happen, but he has not really explained why. The hon. Member for Dover made a number of points about why she felt the move might be a bad idea for security and the facilities at Dover. Will the Minister expand a little more on why that has happened, rather than just on what will happen?

[Sir Mark Spencer]

There has been a lot of discussion with industry and the sector to get to the right point. What matters is not the location of where those goods are inspected, but that they are definitely inspected and that we tackle this on a risk-based basis. Where there is high risk, clearly we need to ensure that those checks are physically taking place at a location within the UK before they reach the open market; where there is low risk, we try not to intervene too much, so that we allow trade to flow. I think that the debate over where that check takes place is less important than the fact that those checks do take place and that UK phytosanitary security is kept at its maximum level.

Turning to costs, there is a commitment to cost recovery. The existing provisions of the official controls regulation still specify that charges should not exceed costs. That remains untouched. We can only recover costs; we should not be able to make a profit from doing so. The rates will be reviewed quarterly and recalibrated annually to address any over-recovery. The Government will keep the rates under review and will continue to consider the context of the charge on businesses of all sizes across the sectors through policy evaluation. Quarterly reviews will be undertaken in the first year of implementation to monitor the import notification volumes, levels of payment compliance and import flow through planned Government-run BCP facilities. It is something that we have thought about a lot. That is why we introduced the cap. We were conscious of the impact on SMEs, and that is why we put in the cap.

The shadow Minister, the hon. Member for Chesterfield, asked about the impact that this might have on food inflation. Our calculation is such that over three years, we anticipate a 0.2% impact on food inflation. As we become more efficient and businesses understand how this will operate, we hope that the impact will be mitigated over time.

In closing, I say that we continue to have our ears open and to listen to industry, and we will continue to work with them.

[Mr Perkins]

I am grateful to the Minister for giving way before he sits down. He said that he will continue to listen to industry. The hon. Member for Dover and I both asked why there had not been an impact assessment. It might have better enabled him to listen to industry had he done an impact assessment. Will he explain why there was no impact assessment?

[Sir Mark Spencer]

There has been a huge amount of consultation and working with the sector to get to this point. I think that that was the right way of doing this, of listening and building the model together, trying to understand the challenges that the sector faces. My commitment is that we will continue to have those discussions and to listen to industry, working with them to ensure that this works as efficiently as possible. With that, I commend the draft regulations to the Committee.

Question put and agreed to.

Resolved,

That the Committee has considered the draft Official Controls (Fees and Charges) (Amendment) Regulations 2024.

DRAFT PLANT HEALTH (FEES) (ENGLAND) AND OFFICIAL CONTROLS (FREQUENCY OF CHECKS) (AMENDMENT) REGULATIONS 2024

Resolved,

That the Committee has considered the draft Plant Health (Fees) (England) and Official Controls (Frequency of Checks) (Amendment) Regulations 2024.—(Sir Mark Spencer.)

Draft Fair Dealing Obligations (Milk) Regulations 2024

Mark Spencer Excerpts

Tuesday 19th March 2024 General Committees

[The Minister for Food, Farming and Fisheries (Mark Spencer)]

I beg to move,

That the Committee has considered the draft Fair Dealing Obligations (Milk) Regulations 2024.

It is a pleasure to serve under your chairmanship, Mr Gray.

I begin by saying how proud I am to support the UK’s dairy sector, from the hardworking farmers to the innovative processors and manufacturers which produce the multitude of world-renowned products so dearly loved by consumers. The regulations safeguard the future of the UK’s dairy sector by ensuring that those involved in it are treated fairly. Although there are some fantastic examples of working relationships in the sector, we know that wherever there are commercial imbalances in supply chains, unfair practices sometimes emerge. Farmers are often the victims of such unfairness.

The Government introduced new powers in the Agriculture Act 2020 that allow us to address unfairness with new rules to govern the relationships between buyers and sellers. This statutory instrument, concentrating on the dairy sector, represents the first exercise of those powers. To inform our approach, we conducted a public consultation and have subsequently maintained a close working relationship with industry stakeholders to ensure that the rules are workable and proportionate. I am happy to report that since we introduced the regulations, the broad industry sentiment is that we have achieved that goal.

The regulations establish a framework for fair and balanced contracts; within those broad parameters, we have maintained flexibility for contractual arrangements that reflect different business practices, as long as all expressed terms are clear and transparent. The rules therefore support freedom to contract, introducing additional parameters only where necessary.

The regulations begin by establishing a legal requirement for written contracts. Although these are already commonplace, they are often the starting point for enshrining the rights and responsibilities of farmers and processors in a clear, unambiguous fashion. Importantly, the regulations prohibit unilateral changes to the contracts; once signed, the terms and conditions cannot be changed without consent. Clearly, businesses must adapt and occasionally changes may be needed, but when they are, they should be discussed and agreed, never imposed.

The regulations also introduce a new approach to pricing, requiring processors to be more open about how price is determined and promoting transparency. There are many good examples of where processors openly communicate to suppliers how market conditions and other factors influence the milk price, and we want that kind of openness to become the norm, so that farmers are assured that their price is calculated fairly.

Where appropriate, we have accounted for the fact that where farmers are genuinely represented, either by representative groups or via structures in the company, those relationships can be regulated more lightly. As such, exemptions from the regulations are available: from the pricing provision where balanced negotiations take place, and from the rules on contract variations where amendments are agreed on farmers’ behalf by their elected representatives.

The regulations also introduce new rules addressing other problems farmers have experienced, including in the process of contract termination. The details of any process will still be a matter of negotiation, but will now be subject to some broad restrictions to avoid unfair practices. We want to encourage stable, constructive relationships and avoid short-termism; as such, all contracts must include clear notice terms, with farmers receiving a minimum of one year’s notice of termination by a processor. To ensure that a farmer never feels unfairly trapped in contract, it must also be clear how farmers themselves can request cancellation.

The regulations establish new rules on contractual exclusivity. Although we are not preventing this where it works well, it has occasionally been used in a way that disadvantages the farmer. Some of the practices used alongside exclusive arrangements, such as volume caps and A and B pricing, are no longer permitted in such circumstances. All processors must write into their contracts a clear dispute resolution procedure, setting out how a farmer can raise an issue and how it will be dealt with. That will mean better communication between the parties, which has sometimes been lacking, and could prevent many of the issues we have seen emerging.

We know that ensuring compliance will be critical to the success of the regulations. We are in the process of recruiting the Agricultural Supply Chain Adjudicator, who will be in post before the regulations come into force. The individual will be responsible for investigating any complaints related to the regulations and has the power to issue substantial fines to anyone found to be in breach.

I hope I have provided the Committee with the reassurance that this instrument is necessary, effective and welcome. The regulations do not interrupt what is already working well, but instead will ensure that the whole industry operates at the same standard, benefiting the entire supply chain.

--- Later in debate ---

[Mark Spencer]

I am very grateful to the shadow Minister for those questions. What I will say to him for a start is that we talked to the Groceries Code Adjudicator quite a lot and sought its advice. The GCA has a very good working relationship with retailers, including the major retailers. We did not want to break that system up. We want to allow it to continue, because, as I say, the GCA has the sort of working relationship whereby it is able to snuff out challenges and problems quite quickly, because of that close working relationship. I think that to expand that office would have diluted its effectiveness.

Of course, we want to keep the adjudicator within DEFRA. I know that the shadow Minister has been critical in the past that the Department for Business, Energy and Industrial Strategy was the Department overseeing the GCA; it now sits within the Department for Business and Trade, of course, but the DBT consults with those of us in DEFRA. I also know that he has been critical of the fact that BEIS conducted a review of the GCA at one time. Of course, we want to try to retain control of the adjudicator and ensure that it sits neatly within DEFRA, so that we can continue to watch it very closely.

The shadow Minister also talked about timescales, asking when the new adjudicator will be in place. I cannot stand here today and guarantee when they will be in place, because, of course, we are going through a recruitment process. We need to make sure we get the right person; I would rather have the right person than just get anybody quickly. But I am confident that we have a broad pool of quality people to choose from and hopefully the right person will come through that process, although I do not want to prejudge that process until it is complete.

Finally, the shadow Minister talked about food waste. That is something that we have looked at, of course, and we are very keen to reduce food waste wherever we can. Actually, the dairy sector is very good at not wasting food; it is very good at putting milk into cheese and yoghurt if there is an over-supply of liquid milk, rather than just producing more liquid milk. I think that the greatest amount of milk that is wasted is wasted from domestic fridges, rather than within the sector itself. I am sure there is more that we can do on food waste, but that will require another vehicle or another method.

[Daniel Zeichner]

Obviously, this is a cyclical industry and it is particularly distressing when we hear stories of milk being poured into ditches, which of course it should not be, or being disposed of in other inappropriate ways, because of some of the imbalances in the supply chain. Is the Minister confident that the new system will lead to less milk being wasted in that way?

[Mark Spencer]

I actually am. I think this measure will help, because it will mean that there is much more fairness in those supply chains and that those contracts are much more robust in how they are formed. So, I think we will be able to avoid such wastage of milk in the future.

The shadow Minister mentioned devolved Administrations. Of course, we have consulted very closely with the devolved Administrations and they are very supportive of the regulations.

Question put and agreed to.