Tuesday 23rd November 2021

(2 years, 5 months ago)

Grand Committee
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Baroness McIntosh of Pickering Portrait Baroness McIntosh of Pickering (Con)
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My Lords, I thank my noble friend for introducing the instrument before us this afternoon, on which I have a number of questions. Paragraph 8.1 on page 2 of the Exploratory Memorandum says that:

“This instrument does not relate to withdrawal from the European Union or trigger the statement requirements under the European Union (Withdrawal) Act.”


However, it would seem that it relates entirely to our withdrawal from the European Union and the retained legislation that pertains to that. I am therefore not sure why that paragraph is there. Can the Minister clarify that please?

Paragraphs 10.4 and 10.5 of the Explanatory Memorandum refer to the consultation, which was carried out through

“the online survey Citizen Space”.

I do not know about other noble Lords, but online surveys are complete anathema to me. They do not seem a very personalised or direct form of consultation. Can my noble friend please explain to us whether this is now the way forward? Is this the Government’s consultation mode of choice? I want to place on record that I do not approve of that at all. It was also carried out on what is traditionally a holiday period—from 19 July to 16 August. I thought that consultations normally take place over a 12-week or three-month period to enable those who wish to respond in some detail to do so. This also allows the industry to talk among themselves to see whether they want only one person to respond, or everyone.

Paragraph 10.4 goes on to say that:

“The consultation targeted stakeholders from the egg sector, with close engagement with egg enforcement bodies.”


It would be interesting to know whether the six responses received match those that were actually sought. How many targeted invitations were sent out? Of those six, only one agreed to the proposal. The overwhelming majority of respondents disagreed with it,

“preferring checks to take place at the border, due to concerns that these measures should mirror the requirements for import of Class A eggs into the EU.”

I would like to know the basis on which we have moved away from the historic checks that we did at the place of import and why the Government are not carrying the industry with us.

I have to say that I am deeply unhappy that, to mitigate the concerns expressed by the vast majority of those who expressed any concerns at all, all we are going to do is to organise a round table. Clearly, we cannot amend the statutory instrument so I would be very interested to know what form the round table will take. The fact that a round table is going to be convened demonstrates that there are widespread concerns in the industry. I would be very interested to know who from the department will attend the round table. Will it be at ministerial level or official-only level?

I pay tribute to the report produced by the Secondary Legislation Scrutiny Committee, and refer to the committee’s thoughts on page 12 and in Appendix 4 on page 32. It appears that there are going to be two different types of checks in relation to GB to Northern Ireland. There will be checks at the border to ensure that the consignment contains either class A or B eggs, as at present. However, all eggs from Northern Ireland will continue to have unfettered access to the UK market. There is clearly a discrepancy there.

Finally—I had better stop because I could spend the whole of the afternoon on this one little instrument—my noble friend said in his introductory remarks, if I heard him correctly, that sanitary standard checks will continue to be made at the border. If we are doing those checks at the border, why on earth can we not do all the checks at one place on imports into this country?

I did say finally, but I did not mean finally. Will my noble friend commit to bringing forward an instrument on the question of equivalence at such time as he suggests that non-EU countries may come forward with imports? I think he said that there would be an instrument at that time. Can he confirm that that is indeed the case? I think he will understand from my drift that I do not like the instrument before us.

Baroness Ritchie of Downpatrick Portrait Baroness Ritchie of Downpatrick (Lab)
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My Lords, the Minister referred to paragraph 10.3 of the Explanatory Memorandum, which states that consultation

“was undertaken as a joint consultation with the Scottish Government and Welsh Government. Northern Ireland is not involved in these amendments, due to the effects of the Protocol on Ireland/Northern Ireland.”

I declare an interest as a member of the House of Lords sub-committee that is scrutinising the protocol on Ireland/Northern Ireland, and I have some questions in this regard. What does that mean in practice? Can eggs from GB be put on the market in Northern Ireland, and vice versa? Do these eggs have to be checked before they can be put on the market in Great Britain or Northern Ireland? That issue was raised by the Secondary Legislation Scrutiny Committee. Living in Northern Ireland, I am very well aware that Marks & Spencer and Sainsbury’s sell quite a lot of products that come from GB. What will the nature of these checks be? Where will they be carried out?

I support the protocol and believe in its sustainability, but perhaps the Minister can advise on progress in the ongoing negotiations on the protocol between the UK and the EU, with particular reference to the SPS arrangements. That was one of the “non-papers” from the EU in relation to this issue.

As this is a domestic statutory instrument, it falls to the Secondary Legislation Scrutiny Committee rather than our protocol committee to scrutinise it. What is the interaction between this statutory instrument and the protocol? Perhaps the Minister can give us some detail and clarity on that interaction and on the practical impact on the supply of eggs from GB to Northern Ireland and vice versa. As the noble Baroness, Lady McIntosh, said, eggs that travel from Northern Ireland to Britain enjoy unfettered access, so it would be good to get clarity on that.

It is important that the Government make a full analysis of the interaction of domestic primary and secondary legislation with the protocol. A lot of these statutory instruments come to us simply for information purposes, but we also get referred legislation from the EU that will affect and impact Northern Ireland on an ongoing basis. The Government have analysed the interaction of domestic primary and secondary legislation with the protocol. What has been done to ensure that that analysis takes place on an ongoing basis? If it is taking place, is it possible to publish the results and for a copy to be placed in the Library of both Houses?

Earl Cathcart Portrait Earl Cathcart (Con)
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My Lords, we started out as an egg producer on our farm in Norfolk about 10 years ago. For the first few years, it was a reasonably profitable business, but as more farmers have come into the market that profitability has increasingly been reduced. It is all about supply and demand. As the number of producers has increased, margins have been squeezed. In the past few years, we have been seriously considering whether it is worth our while continuing in the business, but as we employ three local people and it is still just profitable, we have continued in the hope that egg prices will go up.

On the surface, these regulations look innocuous enough. They went out to consultation, and of the six respondents, who all look after the interests of UK food and egg producers, only one was prepared to agree with them. The other five argued that the checks should take place at the border. Many emphasised that this change should be reciprocated by the EU to benefit British egg producers and egg exporters. This has not happened—I do not know whether Defra even tried—so exports from the UK to Europe will be subject to the full range of EU checks and bureaucracy, thus raising the costs and reducing the competitiveness of our exports.

As things stand, these regulations will make things lopsided—or rather, one-sided—with EU imports of eggs into this country being exempt from checks, bureaucracy and costs at the border but our exports being fully subject to all the EU rules and costs. So no level playing field there then. To my mind, Defra has scored an own goal here in not supporting its own UK egg producers, who have the highest welfare standards in the world, while helping with the import of cheap, low-welfare eggs. Thanks a bunch. One has to wonder why.

After the initial consultation, Defra held a virtual meeting in September with the consultees, who were told—I find this unbelievable—that the Government want their support to facilitate importing cheap EU eggs to help feed the nation. You could not make it up. Here we have a Defra official asking the very bodies that look after the interests of UK food and egg producers to support flooding the UK market with cheap, low-standard foreign imports. With margins already tight, we egg producers need that like a hole in the head. No doubt the Government were concerned about the supply chain problems, the lack of HGV drivers and the prospect, circulated in the media, that there would be empty shelves in the supermarkets at Christmas, but here we have Defra saying that it wanted cheap imports of eggs and to hell with its own egg producers.

Defra went on to say that it wanted to ease the process, as border inspections would involve more time and costs for egg importers. As an egg producer, am I bothered? All these regulations will do is flood our market with cheap eggs and increase the pressure to reduce the price that we get, thus further squeezing our margins. I am told that, when the consultees explained to Defra that UK producers could easily produce enough eggs to feed the nation—we already produce 90% of our requirements—but that with these regulations they were going to be undercut by lower-standard, lower-cost imports, Defra responded by saying that the consultees were acting only in the interests of protecting UK producer profit margins. As an egg producer, I say, “What profit margins?” They are tight enough already.

Just whose side is Defra on? Quite clearly, it is not its UK food producers. The Government have a cheap food policy priority and an anti-producer, pro-consumer mentality that seems prevalent in Whitehall. Surely the Government, and a Tory one at that, ought to protect and promote their own food producers, which they expect to operate with ever-higher welfare standards, rather than to protect and promote cheap imports? The problem is that although we have a Defra Secretary of State, George Eustice, an Agriculture Minister, Victoria Prentis, and my noble friend Lord Benyon, who all have farming interests and all support British farming, we have a Government who do not.

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I think that I have answered all the questions on Northern Ireland.
Baroness Ritchie of Downpatrick Portrait Baroness Ritchie of Downpatrick (Lab)
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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 Portrait Lord Benyon (Con)
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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.