Draft Equine (Records, Identification and Movement) (Amendment) (EU Exit) Regulations 2019

Debate between David Rutley and Caroline Flint

Monday 18th February 2019 General Committees

[David Rutley]

I thank my hon. Friend for his contribution; I thought he was going to talk about the derogation, which obviously will continue. I will seek some inspiration and come back to him in my closing remarks.

At present, the EU’s 2015 implementing regulation on horse passports applies directly in the UK, as it does in all member states. The EU law is supported by UK domestic enforcement legislation. After exit day, the EU legislation will be retained under the withdrawal Act. The draft regulations have the important, immediate job of making the necessary technical amendments to the retained law so that the movement of equines into the EU can continue.

[Caroline Flint (Don Valley) (Lab)]

The explanatory memorandum states:

“Equine welfare is enforced by local authority Trading Standards and robust identification information makes it easier to deal with cases of abandoned, lost or stolen equines.”

In my constituency, and many others, horses and ponies are abandoned on private land. One farmer had 70 left on his land, and there was little enforcement by the local authority, because there are not the powers to deal with those ponies and horses and they do not have identification. Post Brexit, will we have a better system for dealing with ponies and horses that are already in our country and whose owners are hard to identify?

[David Rutley]

The right hon. Lady makes a good point, to which I will come back later. Clearly, provision is in place under the Animal Welfare Act 2006, and in recent years we have made other changes that make it easier to address the issue of stray horses, but also those that have been tethered. We will need to take further steps in that direction.

The draft regulations ensure that the food chain continues to be protected and that the contribution of equine identification to animal welfare and biosecurity continues to be made. EU law requires that equines be identified by way of a passport. In most cases, equines born after 2009 must also be uniquely identifiable by way of a microchip; I will say more on that point in a moment. The passport contains important information about the equine, including its unique equine life number, a microchip number when one has been inserted, and a silhouette on to which the equine’s markings are drawn. The passport also records details of any veterinary medicines administered to the animal and its current food chain status eligibility.

The equine passport is long established, and these draft regulations will maintain the status quo for the vast majority of people. Domestic legislation on the identification of equines—the Equine Identification (England) Regulations 2018—has recently been updated. That includes a new provision that equines, regardless of age, must be microchipped. Therefore, we are taking further steps, notwithstanding the fact that we probably need to do more. The devolved Administrations have prepared equivalent instruments.

Having all equines microchipped, except for those recognised and listed as belonging to semi-wild populations —an issue raised by my hon. Friend the Member for North Cornwall—will significantly enhance our equine identification credentials as a third country and mark us out as a leader among our peers. Underpinned by domestic legislation, the UK’s central equine database was launched at the national equine forum on 8 March 2018 and now contains data about virtually every equine in the UK.

I draw hon. Members’ attention to an additional process change made by the draft regulations, namely the insertion of a new article 15A. As a third country, the UK will be required to generate a supplementary travel document to accompany some equine movements. Equine IDs issued by passport-issuing organisations in the UK will not suffice for that purpose under EU law, because the ID must be issued by the competent authority of the third country—for example, the Department for Environment, Food and Rural Affairs in England. The travel document is likely to be necessary only for unregistered equines, provided that the Commission agrees to recognise our stud books relating to registered equines. The Animal and Plant Health Agency has drawn up a simple single-page document that will meet the requirements of the legislation and which can be printed off and signed by the vet at the same time as other travel documentation is issued. That would be the export health certificate. APHA has confirmed that it is on track to being fully resourced to accommodate that change.

The House of Lords sifting Committee specifically raised the cost of blood tests for equines moving into or through the EU following UK withdrawal. Let me make the position completely clear. European rules state that third countries must be assigned a disease risk status, and there are seven possible categories, based on the geographic region of the third country and the level of associated health risk. Blood testing is a mandatory requirement for all equines from third countries. The number of tests required reflects the disease risk category assigned to the third country. Given the UK’s high health status and high welfare standards, of which we are rightly very proud, we would expect to be assessed as low risk and therefore subject to the minimum number of such tests. That would limit the cost impacts on the sector, which we understand to be in the order of £200 to £500, depending on the third-country category in which the UK is placed by the EU.

I stress that the testing requirements, as with the need for an additional APHA-issued travel document, are not in any way due to the legislation. Both requirements are a consequence of the UK withdrawing from the EU and becoming a third country, where we would be subject to already existing laws set down for third countries. The equine sector is already very familiar with blood tests. It is the industry norm for current movements from the UK to third countries. The equine sector has been receptive and welcoming of the new equine regime introduced over the past year and has been calling for the changes for some time. The draft regulations will back up those existing rules.

To summarise, the draft regulations seek only to make technical amendments to retained EU law following the UK’s withdrawal from the EU, ensuring the continued operability of the rules after exit and that UK horses are compliant with EU requirements for third-country equines. The regulations do not make any substantive change to policy or enforcement. Retention of the system and the rules regarding equine identification are vital to protect equine health and ensure the safety of the human food chain and the continued orderly movement of equines into and through the EU.

I trust that Members will agree that it is important to have the draft regulations in place in order to ensure that retained law is operable following our exit. They preserve our high standards of equine identification, ease of movement, welfare and protections of the human food chain. I therefore commend the draft statutory instrument to the Committee.

Finance (No. 2) Bill

Debate between David Rutley and Caroline Flint

Monday 11th April 2016 Commons Chamber

[David Rutley (Macclesfield) (Con)]

I am grateful for the chance to follow the characteristically thoughtful and hard-hitting speech by the hon. Member for Leeds West (Rachel Reeves). As she knows, I respect her and her experience, but there is no question but that a tax is required on the sugar in that speech, which was too sour on this occasion. I prefer the analysis of my hon. Friend the Member for Somerton and Frome (David Warburton).

I congratulate the Government and Treasury Ministers on the Bill. Before I explain why, I congratulate my hon. Friend the Member for Kingswood (Chris Skidmore), the Chancellor’s Parliamentary Private Secretary, on the recent addition, Henry, to his family. We are all grateful on this side of the House for his safe arrival.

It is a pleasure to speak in an important debate on an important Finance Bill, which builds on the success of the Government’s long-term economic plan and takes a number of long-term measures that will make life better and more prosperous, not just now but for future generations. It supports savings for lower earners, with the introduction of the savings nil rate in clause 4, as promised in the autumn statement. The measure excludes the highest-earning additional-rate taxpayers but allows for up to £1,000 of zero-rated savings income for basic rate taxpayers, and only up to £500 for higher-rate taxpayers. That adds to other measures that the Chancellor has put in place such as lifetime individual savings accounts, which were announced this year, and the help to buy ISA, which rightly focus on younger savers.

The Bill works to support further fiscal stability, with necessary uprating in gaming duty in clause 140 and tobacco duty in clause 142. It deals with anti-avoidance issues, as has been discussed, in part 10, with the new general anti-abuse rule penalty clause in clause 146 and escalating sanctions in clause 147. It also promotes economic dynamism, with taxes on income and dividend income—it raises the personal allowance in part 1—and the new dividend income nil rate in clause 5 and schedule 1.

It goes on. The Bill introduces in clause 25 welcome improvements and flexibility both to the averaging of profits in the tax treatment of farmers, extending it from two years to five years, and for creative artists. Farmers have long been central to rural life in and around Macclesfield, and in many other constituencies across the country, and creative artists are increasingly adding to our economic and cultural mix in Macclesfield, as demonstrated by the upcoming Barnaby festival—details are available on its website. I hope that the new tax relief for the production of orchestral concerts in clause 50 and schedule 8 will add to that mix.

The Bill is radical in reforming enterprise taxes, as has been said, with cuts to, and relief from, capital gains tax in clauses 72 and 76, and the cutting of corporation tax to just 17% in 2020 under clause 42. These measures show that Britain is open for business, and are for the benefit of the young and enterprising entrepreneurs whom we need for the next generation of business leaders. That economic dynamism is needed for the long-term projects that the Government are rolling out, and it will benefit our children and grandchildren throughout their working lives.

Young people understand—and young people certainly understand this far better than old Labour Front Benchers—that supporting an enterprise economy is not a selfish, atomistic pursuit but a recognition that we all advance by pooling more effectively our comparative advantages into a common, more productive economy. According to research by UK Trade & Investment and the Economist Intelligence Unit which was published only 15 months ago, “running my own business” is the No. 1 career aspiration for the year 2020 among young people in the UK.

Having listened to debates on the Budget in the House and elsewhere, I think that it is important that we remind ourselves why young people are champions of the common value and common purpose that enterprise provides and why it is important that the Bill responds to that. That is key to explaining why the Bill is important for building on the foundations of this Government’s economic success with enabling measures for the success of future generations.

All business transactions must involve at least two parties: the supplier and the consumer. The very word, “enterprise”, is derived from joint undertakings that have been prised—extracted—from “inter”, or working for mutual advantage. It is a profound force for good. It is also voluntary, so carries the element not only of opportunity but of suitably managed risk. For risk to be suitably managed, suppliers need to be flexible. They need to be responsive to demand to survive and thrive in competitive markets. The Government need to ensure that the freedom to be flexible and the confidence to be bold exist for enterprise to thrive. The Government need to remove barriers and provide a stable and enabling environment for entrepreneurs. They are doing so in clause 42 by reducing corporation tax and by incentivising capital gains through clause 72 so that investment improves. As I said in my intervention on the shadow Minister, the Federation of Small Businesses clearly welcomes this.

The Government need to ensure that we have decent standards of education and skills training, hence the importance of the enterprise levy in part 6. The Government need to clear barriers to growth, whether those are unnecessary regulation and high and complicated taxes, or poor infrastructure for transport and communications. These are sometimes known as horizontal measures as they stretch across the whole economy and across large sectors, and do not apply only to a few selected winners within those sectors picked by Ministers and mandarins. This Government have been right to facilitate joint working between Whitehall and local authorities and business on the ground through growth deals and city deals and by encouraging local enterprise partnerships. That is profoundly long-termist.

[Caroline Flint (Don Valley) (Lab)]

The hon. Gentleman highlights the importance of skills and apprenticeships. Does he share my concern that apprenticeships, in the way in which they are delivered, still adopt the gender segregation of the past? Most of those going on engineering apprenticeships are boys and men, and most of those going on childcare apprenticeships are young women. Would it not be a good idea to ensure that those in receipt of the apprenticeship levy should demonstrate that they have made every effort to undo the job segregation that exists in our workplaces and in apprenticeships?

[David Rutley]

The right hon. Lady makes an important point. We want to tackle such segregation. In Macclesfield, AstraZeneca, a great pharmaceutical company that employs many engineers, has 30 new apprentices who started last summer. Many of them are women. That is exactly the route that we need to take. With the new levy, businesses will hopefully have a greater say in how apprenticeships should be taken forward, their quality improved and the gender mix enhanced. That was a good intervention.

The hon. Members for Bassetlaw (John Mann) and for Kirkcaldy and Cowdenbeath (Roger Mullin) spoke about productivity. Clearly, productivity rates are too low. As we heard in the Budget, the OBR believes that the long-term challenges are even worse than it had originally thought. The Red Book shows that the IMF and the OECD point to productivity challenges in many other countries, as well as the UK. I am pleased to see that the Government are tackling that head-on. Hon. Members can take a careful look at page 61 of the Red Book and see the vast array of initiatives that are being taken forward to address the productivity challenge. Those reforms rely on encouraging and enabling local enterprise all over the country.

The present Chancellor is the first Chancellor I can think of who has looked at the powers of the Treasury and actively sought to devolve them—to transfer those powers. That is progressive and it is the right way to secure long-term economic progress. Opposition Members should welcome that, like their colleagues in local government in cities close to me, such as Liverpool and Manchester.

That all adds to the Government’s commitment to forge local strategic partnerships which are needed for the success of other productive sectors such as life sciences, not least in the cluster known as the life sciences corridor in east Cheshire, a sub-region of the country which has productivity rates 14% higher than the UK average and higher than in the sub-regions of Bristol or Edinburgh. We in east Cheshire cannot be alone in enjoying high rates of productivity, so I welcome again the tax measures in clauses 72 and 42 that reduce the barriers of capital gains tax and corporation tax and see the Government encouraging business across the UK, including in the highly productive fields of advanced manufacturing and innovation. We see that clearly in the work that AstraZeneca is doing on Zoladex and other treatments not just in Macclesfield, but across the country. Other businesses should follow suit. It is vital for our economic growth.

In conclusion, the Bill delivers concrete measures that will enable a more enterprising economy. It is a Bill for the long term that makes us more flexible in dealing with short-term shocks and impacts, and it is a Bill for rebalancing the economy and for promoting productivity, which is a vital challenge. That is why I will be proud to support it in the Division Lobby later this evening.