Lord Benyon
That the Grand Committee do consider the Eggs (England) Regulations 2021.
Relevant document: 17th Report from the Secondary Legislation Scrutiny Committee
The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Benyon) (Con)
My Lords, this instrument allows marketing standards checks on class A eggs imported from third countries to continue to be conducted at the locations where they already take place. It is needed because, without amendment, the retained regulation on egg marketing standards will require these checks to be relocated, causing disruption to the current inspection process and requiring considerable additional resources, with no material benefit for consumers. This instrument will have effect only in England. The Scottish Government and the Welsh Government will make the same amendment to their own domestic legislation.
Marketing standards are intended to ensure that the market is supplied with products of a standardised and satisfactory quality to meet consumer expectations. They are in addition to, and separate from, sanitary standards. Sanitary standards will continue to be checked at the border. The amendment made by this instrument is not a change of policy and confirms the existing arrangements for these marketing standards checks.
Through the functioning of the Northern Ireland protocol, Regulation 589/2008 on egg marketing standards, which Great Britain has retained, will continue to apply to Northern Ireland as it has effect in the EU. Therefore, the current checking arrangements for the movement of third-country class A eggs into Northern Ireland will not change. For class A eggs to be imported into Great Britain from a third country, the Secretary of State must determine whether the third country has equivalent egg marketing standards following an assessment of its legislation and checking practices. Only EU member states are currently recognised as producing eggs to this equivalent standard.
In the future, should we wish to import eggs from any third countries other than the EU, the Secretary of State must first make a similar determination of equivalence. Until then, class A eggs may not be imported into Great Britain from non-EU countries. We will continue to uphold the high standards expected by UK consumers and businesses.
Since a grace period has been granted for marketing standards and SPS checks on EU goods until 30 June 2022, checks will need to be conducted on class A eggs from the EU from July 2022. Any third-country imports that might be agreed before July 2022 would also require border checks. Under current legislation, all these checks would need to take place at the border.
If this statutory instrument does not pass, our current operating practices will not be compliant with our retained legislation. The change contained in this statutory instrument has been discussed with British egg industry stakeholders. Defra has held a joint consultation with the Scottish and Welsh Governments on the proposed change and continues to engage closely with the sector. I beg to move.
Baroness Jones of Whitchurch (Lab)
My Lords, I thank the Minister for his introduction to this SI, and for the helpful briefing that he organised with officials beforehand. However, he will know that the Secondary Legislation Scrutiny Committee has drawn this SI to our attention. Like other noble Lords, partly arising from that, I have a number of questions.
Obviously, our main concern is to maintain our high animal welfare and food quality standards. Clearly, we can maintain those standards more easily if the eggs are produced within the UK. I am absolutely with the noble Earl, Lord Cathcart, on that issue. Can the Minister remind us what percentage of class A eggs are currently being imported from the EU into the UK? We have heard some statistics today, but it would be helpful to have clarification from the Minister on that. Is it the case, as my noble friend Lord Rooker is saying, that third-country eggs are also coming to us via the EU? Is that standard practice? I think we should know more about this. Given that many of these procedures in the SI are about potential third-country egg producers coming direct to us in future, it would be helpful if the Minister could say whether he is aware that there are, in the sidelines, third-country producers awaiting some sort of green light to be able to sell into the UK market, and what the consequences might be.
That is just a general point. I now want to ask some specific questions—and the first question is about arrangements on the Northern Ireland border. In response to the question from the Secondary Legislation Scrutiny Committee on this issue, Defra said that all eggs from Northern Ireland to GB would continue to have “unfettered access” to the UK market. Does that mean that there are no checks carried out on these eggs at all either at the border or at the so-called points of destination, or anywhere else?
Meanwhile, as I understand it, class A eggs going the other way—from GB to Northern Ireland—will continue to be checked at the border, as GB will have the status of a third country with regard to Northern Ireland. Those are the issues that my noble friend Lady Ritchie raised, and I agree with her: we need to know more detail on the practical application of how the rules will apply going in both directions. It would be helpful if the Minister could clarify those arrangements under the terms of the protocol. Also, can he clarify how the outcome of the current negotiations on the Northern Ireland protocol between the noble Lord, Lord Frost, and the EU might impact on the regulation of imports to and from Northern Ireland in future? Will eggs be caught up with this, and is this an issue on its agenda for change?
Secondly, like other noble Lords, we share the concern expressed by the Secondary Legislation Scrutiny Committee that the majority of respondents to the original Defra consultation were against the proposals in this SI. The Defra letter explains that a subsequent round table was held on 24 September. Stakeholders expressed concerns about whether imported eggs would be subject to the same standard of checks as domestic eggs and produced to the same high health, welfare and food standards. Rightly, my noble friend Lord Rooker raised issues about egg fraud, and he gave some shocking examples of it this afternoon. Clearly, we need to ensure that our consumers are not being mis-sold—and that is a concern that the stakeholders expressed at the meeting on 24 September.
What do the current checks on UK eggs entail? I do not quite see how we can differentiate between the sanitary provisions that the Minister was talking about and how they are marketed. I would have thought that the marketing is about the sanitary provisions, so the two should go hand in hand. Does the Animal and Plant Health Agency regularly and randomly visit UK poultry farms to check on animal welfare issues and on whether the birds are, for example, being reared organically? Does the same provision for checks on animal welfare et cetera also apply to imported eggs? Otherwise, how can we be sure that food standard equivalence is being applied?
The Defra response to the Secondary Legislation Scrutiny Committee referred to the APHA carrying out random checks on domestic and imported eggs at warehouses, distribution centres and packing centres, but this does not seem to include visits to where the birds are being reared, so how can we be assured that the high animal welfare standards included in the marketing of imported eggs can be trusted? This was an issue raised by a number of noble Lords. Obviously, this matters because descriptions such as “free range” or “organic” carry a premium price, so the temptation for some degree of fraud is obvious for all to see.
Once we have finished the 21-month transition period with the EU, what arrangements will be in place to check welfare standards on site for both EU and third-country egg producers? Will we go to see where the chickens are being reared and the eggs are being produced?
Thirdly, are all UK eggs currently produced distributed via warehouses and packing centres or do some go straight to market? This was the question raised by the noble Baroness, Lady Bakewell. I can imagine that there is a healthy trade in local eggs at farm shops and farmers’ markets or potentially in the restaurant sector, so how is the APHA monitoring the quality of eggs that do not go via those distribution centres? What would stop egg importers avoiding packing and distribution centres and therefore avoiding the checks? Could they also go straight to market or to some locality without going through the distribution centres?
Then there is the question of what happens at the ports. This issue was raised by the noble Baroness, Lady McIntosh. Presumably the APHA is already doing other checks at ports and custom points on foodstuffs being imported; it is already there with the resources, so it would not be too much of a stretch to check egg imports as well, particularly as we have heard that the phytosanitary checks will still carry on at the ports. Therefore you could argue that it would be more efficient to inspect all those consignments together, so I wonder why we are not still planning on doing that.
Finally, I am trying to get to the root of this issue. Is it an issue about overall APHA staffing levels? Is this ultimately the issue? Is it about staff shortages? What level of vacancies is being carried by the APHA? What proportion of APHA staff were previously EU staff who have left and cannot be replaced? Is this an issue at the heart of the matter?
The most important aspect of this debate is the need to maintain our high animal welfare and food safety standards. I absolutely share the concern of stakeholders and noble Lords this afternoon that these proposals do not provide sufficient reassurance that we will be maintaining those same high standards. I hope the Minister will be able to provide further reassurance on this issue, and I look forward to his response.
Lord Benyon (Con)
I thank noble Lords who have contributed to this debate. I will endeavour to answer all the questions that have been asked.
My noble friend Lady McIntosh referred to the sentence in the Explanatory Memorandum that relates to whether we used the European Union (Withdrawal) Act powers for this statutory instrument. I can confirm that we did not. I think she and others also asked why, given that the egg sector opposes the proposal—or so it was deemed from five out of the six responses—the Government are moving ahead with it.
In response to the consultation, Defra and the Welsh and Scottish Governments held a round table, as has been said, on 24 September to address the concerns raised by the industry. Invited to the meeting were the checking authorities responsible for egg marketing standards checks across Great Britain—the APHA egg marketing inspectors, who operate in England and Wales, and the Scottish Government poultry officers. In response to concerns expressed by the industry that imported eggs should be subject to the same standard of checks as domestic eggs and produced to the same high health, welfare and food standards, Defra explained that the checks will continue to be made on a risk basis, as well as randomly, in line with Article 24.2 of Regulation 589/2008, and that food quality will not be impacted by this SI.
My noble friend Lady McIntosh also asked about the nature of the survey, noting that it was online. All relevant industry representatives responded and were at the round table, so it is fair to say that a pretty full consultation has happened. She asked about UK exports to the EU. I can confirm that UK exports are checked at the border for both hygiene and marketing quality.
A number of noble Lords asked about resources at the APHA. This statutory instrument changes the current legislation, requiring marketing standards checks to take place at the border to allow the continuation of a current practice. We have the resources to do this now. I am quite open that, if we were not to pass this and require those checks to take place at the border, it would put considerable resource demands on the APHA. It would require a border control post to have a very large chilled space, so that every lorry that came in with its 28 pallets of eggs could be safely unpacked and those eggs moved into a chiller space. If they were not, they would risk deteriorating in quality, so that would have to take place. They would then have to be reloaded and taken to a distribution point where we had the resources to check them. I hope noble Lords remember this important point.
The noble Baroness, Lady Ritchie, raised a very well-made point about the implications of this SI for Northern Ireland eggs entering the UK and whether they will be treated differently, with Northern Ireland continuing to follow EU rules. Eggs produced in Northern Ireland are not considered to be entering GB from a third country. The statutory instrument does not change the way eggs moved from GB to Northern Ireland will be checked. Northern Ireland eggs will continue to have unfettered access to the GB market, as at present, and will continue to be checked in the same way as domestic eggs from England, Scotland and Wales. In any case, the checks on third-country eggs are identical to those performed on domestic eggs. They will continue to be checked by egg marketing inspectors on a risk-assessed and random basis at the point of destination, at packing centres, at distribution centres and at wholesale premises.
I think she asked whether eggs from GB can be put on the market in Northern Ireland. Class A eggs imported into Northern Ireland from third countries will continue to be checked at the time of customs clearance and prior to their release for free circulation, in accordance with Article 24.3 of Regulation 589/2008, as it has effect in the EU. I think I have said whether eggs have to be checked before they can be put on the market in GB.
Baroness Ritchie of Downpatrick (Lab)
On Northern Ireland, I mentioned the importance of a full analysis by Her Majesty’s Government of the interaction of domestic primary and secondary legislation with the protocol. I also asked what is being done to ensure that such analysis takes place and that, if it is taking place, a report could be placed in the Library of both Houses.
Lord Benyon (Con)
The noble Baroness is right to raise this point, as others have done, about the ongoing negotiations around the Northern Ireland protocol. I do not feel qualified give an accurate, up-to-date report. After this Committee, I will find out whether there is going to be an immediate communication about the status of the Northern Ireland protocol and an analysis of its functioning, particularly in relation to this matter. If there is not, I will make sure that she receives more information. The noble Baroness, Lady Jones, raised that as well.
I have answered quite a few of the questions—probably not every single one.
Lord Rooker (Lab)
The Minister has been very helpful; I fully accept that. I do not expect him to know the answer to this, but I hope that he will take my word for it that if any of us in this Room is wearing any cotton fabric or garment, it is possible using element analysis to find out where the cotton was grown. The same technique can be used to decide whether lamb was created in Wales or New Zealand. Does the technique of element analysis figure in any of the checks about where eggs have come from?
Lord Benyon (Con)
That is a very good point, and I will seek further information. I hope to reassure him and my noble friend Lord Cathcart that the idea that we are somehow allowing the import of substandard products that discriminate against our domestic producers is easily detectable through the measure that he mentioned which shows precisely how that egg is produced. I do not know whether it can deal with the point about fraud, or whether it can say, for example, that the egg came from Argentina or China, but this is a fresh food product, so obviously there is an issue about timing. I think that would militate some of the fraudsters who might want to try to enter the supply chain, but I assure the noble Lord that no undercutting of our producers will be facilitated by this measure or by my department in our determination to support the producers of this country. I really want to re-emphasise that point.
I hope that noble Lords fully understand the need for this instrument, which is to ensure that marketing standards checks on class A eggs imported from third countries continue to happen at the locations where they take place today. As I outlined in my opening speech, the instrument will also avoid any disruption to the level of checks that currently take place and will allow egg marketing inspectors to continue to uphold our high standards. I believe I have answered all the questions, but if I have not, I am very happy to provide written answers, I will check Hansard and respond in writing to any questions I may have missed.