Fertilisers and Ammonium Nitrate Material (Amendment) (EU Exit) Regulations 2021

Baroness McIntosh of Pickering Excerpts

Tuesday 26th January 2021 Grand Committee

[Baroness McIntosh of Pickering (Con) [V]]

My Lords, I am most grateful to my noble friend for presenting the regulations and his introduction to them. As the noble Lord, Lord Clark, just suggested, they are fiendishly complicated so I hope my noble friend will permit me to ask a couple of questions relating directly to how they will apply and on a couple of other matters relating to fertilisers more broadly.

Looking specifically at paragraph 7.3 of the Explanatory Memorandum, if my understanding is correct, this says clearly—and my noble friend referred to this—that an EU manufacturer must have a manufacturing base in the EU to be able to import into Northern Ireland, whereas a manufacturer in Great Britain will be able to continue to export to Northern Ireland but will have to produce one label for export to Northern Ireland and make separate provision for continuing to export to the rest of the European Union. Could my noble friend confirm that that is the case?

I was contacted by the AIC, which deals in seed and agricultural production. It suggested that there will be a two-year transitional period, during which businesses will be able to continue to manufacture and sell material labelled as an EC fertiliser under Regulation 2003/2003 for use in Great Britain, provided that those products conform to EU standards. Will my noble friend confirm that that is just for a two-year period and what happens at the end of it?

Also, will the UK fertiliser manufacturers hoping to export to the EU and Northern Ireland need to be established within the EU or Northern Ireland, as I mentioned, and will products have to be labelled accordingly with the EU-established manufacturer or importer as appropriate? Presumably that will be an additional cost to the UK fertiliser manufacturer. I ask because paragraph 3.1 of the Explanatory Memorandum clearly states that there should be not so much no increased costs, but no increased obligations on businesses. However, there would certainly seem to be the cost of producing these labels.

I have two rather more technical points. Detonation-resistance testing for the production and importation of high-concentration ammonium nitrate is a legal requirement, but this is now limited to a single UK-based laboratory, which apparently lacks the capacity to meet demand. The nature of the product additionally limits its easy transport between countries by courier. There is, I understand, a current derogation of two years to allow European-sourced ammonium nitrate to continue to be tested in EU accredited laboratories. Clearly this derogation must be extended to allow testing in any accredited ISO laboratory.

Finally, the UK now has oversight of its trade remedies through its countermeasures policy. Presumably our Trade Remedies Authority, when it is up and running, will be in charge of this. The application to the UK of existing trade remedies on urea ammonium nitrate from the USA, Russia and Trinidad and Tobago is due to terminate, so urea ammonium nitrate will not be subject to the EU-imposed anti-dumping duties, though I gather that the anti-dumping duty on ammonium nitrate from Russia will still apply. I understand that these latter two points probably go broader than Defra, but I would be keen for my noble friend to write to me for our better understanding of how this applies to these regulations, particularly for those volatile products to which the noble Lord, Lord Clark, referred.

With those comments, I am delighted to consider the SI this afternoon and look forward to hearing my noble friend’s response.