Agriculture (Payments) (Amendment, etc) (EU Exit) Regulations 2020

The SI makes specific reference to imports of wine and quality policy. What are the arrangements likely to be for geographic indicators on exports? Are these covered in this SI, or will there be an additional SI for that purpose? GIs are of great importance to our wine and spirit producers as well as to those making products using milk.

The third and fourth SIs are again needed to ensure that the Northern Ireland protocol can be implemented. Would it be premature to ask the Minister just how many SIs that relate to ensuring the Northern Ireland protocol is safeguarded we will debate before the end of December? It would be useful to know.

In relation to the fruit and vegetable producer organisation aid scheme, the Explanatory Memorandum states that groups of growers will still be able to come together with the aim of planning production, concentrating supply and making them stronger in the marketplace. The Minister may have answered this, but I shall ask him again anyway: is the transnational producer organisation likely to interfere with this process?

Provisions for the import of hops and hop products are to be amended to align with the border delivery model. What proportion of hops used in the brewing industry in the UK is imported from third countries and what proportion is grown in the UK? Originally, EU forms and certificates from third countries were to be accepted for two years. However, this period has now been shortened to 1 July 2021. How will that affect the UK brewing industry?

On chicks and hatching eggs, can the Minister say which third countries are importing these products into the UK? I also have concerns about the use of optional indication certificates for poultry meat imports, as Defra has stated that we do not currently enforce poultry meat marketing standards. I understand that this relates to labelling as to the method of rearing, such as “free range”. However, many third countries do not have the same stringent animal welfare standards as the UK. I feel certain that consumers will want to be aware of these imports.

Lastly, I refer to paragraphs 2.6 and 2.12 of the Explanatory Memorandum to the miscellaneous amendments regulations, which refer to imports of beef and veal from third countries. It may be that the third countries referred to are the same as those which import chicks and hatching eggs but, again, I ask the Minister which they are.

As the Minister said, the Secondary Legislation Scrutiny Committee has drawn these matters to the attention of the House as it believes they are of considerable interest to the public at this time, especially as the poultry meat marketing standards are currently not being enforced and as a 12-month transitional period is needed to enable the future import regime and associated checks to become operational. I agree with the committee’s view.

I am happy to support the four statutory instruments but look forward to answers to the questions that I have posed to the Minister.

This SI also changes the provisions for fruit and vegetable producer organisations. The Minister clarified in the other place that there were 34 in total and four are believed to be transnational. Am I right in understanding that those transnational producer organisations will not be able to apply for support, even if the majority of their production takes place in the UK? Have those affected producer organisations been informed of this change, and are they content with it?

The second SI proposes changes to EU retained law to enable the Secretary of State to approve or cancel protected designations of origin and protected geographical indications for wine. This SI only deals with wine, so I presume that other protected designations are dealt with in other SIs. The SI says that there is not expected to be any significant impact on business. Given the UK’s growing wine industry, which I think we would all accept has been curtailed by EU regulations in the past, will it give our wine producers more flexibility in the descriptions of the wines that they are able to market? Is it envisaged that we would have the UK equivalent of appellation contrôlée as a UK quality standard in future?

What UK body will replace the Commission in registering PDOs and PGIs? Will it be British only or include Northern Ireland? Will UK products such as wine remain registered in the EU or will they have to be re-registered to access the market at the end of transition?

The third and fourth SIs address issues arising from the transition from EU import certificates of conformity to those aligned with the border delivery model. It seems strange that the dates for ending the transition period for these certificates for beef and veal labelling is different from that of hops, hatching eggs and chicks. I refer to the excellent note from the Secondary Legislation Scrutiny Committee on this issue. When it asked Defra about this, it was told that some provisions were made to align with the border delivery model, while other timescales meant that there would be a delay for a two-year transition,

“in order to allow policy teams to deliver the necessary IT system changes and recruit additional HMI inspectors”.

Three obvious questions arise from that. First, are some of the border issues so complicated that they need a two-year IT project to complete? Is there any danger of further delays, as we have known in the past, with the IT system not being up and running by that date? Secondly, are the HMI inspectors referred to specialist border inspectors, or is it envisaged that there will suddenly be a huge extra volume of work when the transnational arrangements end—which is why it is being staged, to enable those extra recruitments to take place? Thirdly, has sufficient thought been given to the extra burden on businesses importing across the border which might import mixed cargos with different deadlines for the forms and certificates?

The Secondary Legislation Scrutiny Committee also drew our attention to the fact that the UK does not currently enforce poultrymeat marketing standards. I am very grateful that the Minister has clarified, after our pre-meeting with officials, that that is not so much the case and that a clarification has been issued. I thank him for that. However, if poultrymeat is imported from a third country, does that mean it could still say that it was free-range or organic, and that would not be checked? Could it claim not to be chlorine-washed when it has been? I understand from our pre-meeting that little or no poultrymeat is currently imported using these optional descriptions. Can the Minister clarify whether that might be expected to change in the future? These seem to be quite common terms so it is surprising that there are no imports using these labels now. Could unregulated poultrymeat be mixed with other products and given a misleading description? Can the Minister explain what is meant by that explanation? The SI also refers to the organic certificators’ group having been consulted. Is it now content with the proposals?

On a slightly different issue, perhaps I may ask a follow-up question on the application of the Northern Ireland protocol. In a recent SI debate, the noble Lord, Lord Goldsmith of Richmond Park, revealed that 72 border posts were proposed between Northern Ireland and Britain. Is there a list now of where those posts will be based? Are they fully staffed—with trained staff—and ready to be operational at the end of the transition period? Do those trained staff include the specialist inspectors who would have to deal with the checks on the imported fresh food produce that the SIs specifically relate to? I look forward to the Minister’s response.

Domestic wine production is a growth sector in England and Wales. The noble Baroness, Lady Jones of Whitchurch, referred to domestic wines. These regulations maintain the operability of retained EU law, which is the status quo. Our aim is to ensure that imports of third-country wines continue unaffected while continuing to increase domestic wine production. Existing EU GIs, such as Champagne, will continue to be protected in GB through the withdrawal agreement. We cannot use that name for UK sparkling wines. However, our producers are carving out a strong niche for high-quality sparkling wines and I observe, for example, that two Champagne houses are investing in English vineyards.

The noble Baroness, Lady Jones, asked about the ramifications for transnational groups in the UK. There are four such groups, three in England and one in Northern Ireland. We have kept DAERA fully informed and are working with affected producer organisations to ensure that they are aware of the impact on their business and to help them plan for the future. Transnational POs can still come together, but EU-based members will no longer be able to claim under the aid scheme after the end of the current programme.

The noble Baroness, Lady Jones, raised an important point, which we have discussed, about the definition of administrative decisions and ensuring that what might be described as political decisions are not made under the auspices of administrative decisions. Those decisions have limited scope and do not choose the recipients of the intervention or which sectors to intervene in. They are decisions that, following a tendering process, set rates for buying in commodities under public intervention and for private storage aid, and then allow publication of the rates to be offered. Those decisions are made according to clearly prescribed criteria in the CMO regulations. For example, the tendering procedure is clearly laid down in regulations and the quantities, periods and prices involved are subject to overall limits. The amendments in this instrument would allow the tendering procedure to open and the decision on the maximum price to be published, without requiring legislation to open the procedure and publish the price. It is important to emphasise the narrowness of the scope because I agree with the instincts that the noble Baroness outlined. Changes to these rules and amounts would require legislation and parliamentary oversight. The amendments in the instrument do not introduce new processes or powers, or enable the relevant authorities to do anything new. Instead, they ensure that the relevant authorities will be able to continue operating those clearly prescribed mechanisms, as they do currently, and in a timely fashion, after the transition period.

I turn to some of the remarks relating to the Common Organisation of the Markets in Agricultural Products (Miscellaneous Amendments) (EU Exit) Regulations and the No.2 regulations of the same name. The noble Baroness, Lady Bakewell of Hardington Mandeville, asked about beef and veal. My understanding is that in 2019, 6.8% of the beef and veal imported into the UK came from the following non-EU countries: Uruguay, Australia, Namibia, Brazil, Argentina, Japan, New Zealand, Chile, United States of America, UAE, Botswana and Paraguay. The remainder of our imports came from the EU. While the regulations cover only technical requirements for age on slaughter labelling, and when the terms “beef” or “veal” should be used, I reassure both noble Baronesses that separate legislation concerning high production and animal health standards will continue to apply to beef and veal imported into Great Britain after the transition period.

As I have said before, in all our trade negotiations we will maintain our high environmental protection, animal welfare and food safety standards. These will not change.

The noble Baroness, Lady Bakewell, also asked about importing hatching eggs and chicks and the welfare standards of the country of origin. For hatching eggs and day-old chicks, 85% of our imports come from the EU and we remain committed to high standards of animal welfare and food safety in the future, as we do now.

The noble Baroness, Lady Bakewell, asked about a percentage in relation to hops. I am afraid the detail I have is that we were a net importer of hops and hop products to the worth of £60 million in 2018, while producing £14.1 million-worth ourselves. When I looked into this, one issue was the fact that hops have distinct flavours. We are therefore keen to ensure that there is a continuing ability for production of beer in this country which uses that variety of hop products, although when I studied those figures I thought that there might be some scope for further domestic production. Having looked into that, it is important to ensure that we have that range of hops for our beer production.

The noble Baroness, Lady Jones of Whitchurch, asked about transitional provisions. Funnily enough, in discussing these matters I am obviously seized of the fact that there is this range of dates. I queried this strongly and what we have done—I think this is right—is to have reviewed this on a sector-by-sector basis, to see where it would be practical and possible to align with the border operating model. In doing so, this has resulted in a varying number of end dates. The noble Baroness made a point about having confusion for businesses being the last thing we would want to do. I reassure her that we have actively engaged with businesses ahead of laying these instruments and have updated the relevant guidance on GOV.UK. In fact, representatives from all the sectors have welcomed the provisions, as they allow for appropriate adjustment.

For instance, with regard to the two-year transitional provision concerning EU certificates for fruit and vegetables, I understand we will be using this time to implement upgraded computer systems, as was alluded to, while bolstering our Horticultural Marketing Inspectorate numbers and working with the EU to implement an improved inspection service procedure for member states. After 31 December, the free movement of goods from the EU will end; inevitably, additional checks on imports and additional inspectors will be required. We are working with the APHA to ensure that we have the right calibre of inspectors. That will clearly be important.

The noble Baroness, Lady Jones of Whitchurch, asked about organics. I understand that the UK organics certifying groups are content with the provisions we have brought forward.

In relation to poultry meat marketing standards, I have drawn attention to the correction we made. I reiterate my apologies for it not being sufficiently in context in an earlier version. Although food safety regulations are not covered under these instruments, I reiterate that the Government remain committed to promoting robust food standards and existing food safety provisions, which will of course be retained in the retained EU law. No products other than potable water have been approved to decontaminate poultry carcasses, and this will remain so.

I am mindful of the time so I will be quick in addressing a number of other points. On the Northern Ireland protocol, I am sure that there will be other statutory instruments where, in part, the protocol and the changes following it will need to be applied to other statutory instruments that I bring forward.

I should say, as an aside, that I inquired whether we should have a Northern Ireland protocol SI so that all these matters could be wrapped in it. There was a suggestion that it was rather better to deal with them according to subject matter rather than in that way. If that might have been a suggestion of the noble Baroness, it was one with which I had sympathy, but it was then suggested that it would be more consistent to deal with the whole area of points of concern.

There are one or two further detailed points to cover. On impact, we have worked strongly with businesses because we are conscious that, because of the changes, we need to work with them. We are doing so—that is very important—so that they are aware of the changes and understand why we have a different range of dates to ensure that there are adjustments that work constructively.

If there are any other points, I might receive some information and will write to the noble Baronesses. At this juncture, and mindful that I have already taken a little too long, I commend the regulations.

On wine, the instrument ensures that protection of designations of origin, geographical indications and traditional terms in the wine sector operate effectively and that Great Britain is able to process domestic and third-country applications for such matters. It will also ensure that the UK is compliant with the rules of the WTO. It will give the Secretary of State the power to approve or revoke protected wine names and terms on the domestic GI register and approve or deny applications already made to the EU. It will also enable the Secretary of State to make administrative decisions involved in processing applications for protected wine names or terms, amending those protections and the use of those terms on the label of the product. It also revokes EU-implementing Acts that duplicate information in the protected designations of origin and protected geographical indications register.

I turn to the Common Organisation of the Markets in Agricultural Products (Miscellaneous Amendments) (EU Exit) Regulations 2020 and the Common Organisation of the Markets in Agricultural Products (Miscellaneous Amendments) (EU Exit) (No. 2) Regulations 2020. The majority of the amendments made by these instruments relate to the implementation of the Northern Ireland protocol and references to Northern Ireland as it will remain aligned to the EU under the protocol. Amendments are also being made to a small number of the transitional provisions, either to align with the Government’s border operating model, which introduces new border controls for the movement of goods between Great Britain and the EU in three stages until July 2021, or because they were introduced on the basis that the UK would leave without a deal and are no longer required.

The Secondary Legislation Scrutiny Committee drew the attention of the House to the department’s explanation of why poultry meat imports from the EU would not require an optional indications certificate for a period of 12 months. Optional indications refer to the use of labelling terms concerning farming or chilling methods. I would like to apologise as the department’s explanation did not provide sufficient context on checks relating to poultry meat marketing standards and this may have caused concern, but it has since been clarified with the committee and the department has asked for a correction to be issued.

I reassure your Lordships that, although the specific matters are not covered by these regulations, the Government remain committed to high environmental protection, animal welfare and food safety standards.

These statutory instruments, which are predominantly technical in nature, provide clarity in the context of continuity. For those reasons, I beg to move.