Covid-19: Government Support for Business

Liz Twist Excerpts

Thursday 16th December 2021 Commons Chamber

[John Glen]

I am sorry, but I cannot accept that. The Government have given an additional £12 billion to the devolved Administrations, which also benefit from the reduced VAT, the recovery loans and the other UK-wide measures, and the additional £430 million that was agreed this week.

[Liz Twist (Blaydon) (Lab)]

Two weeks ago, on a very frosty north-east morning, I met small businesses at my business forum. They told me of their concerns about what might happen over the Christmas period with covid-19. They included beauty businesses and businesses such as the Railway Tavern in Rowlands Gill in my constituency. Will the Minister please urgently address the need to support our hospitality and personal care businesses throughout this situation?

[John Glen]

The hon. Lady makes a very reasonable case about businesses in her constituency. As I have said, we will be engaging with the sector to come forward with appropriate interventions based on the data and the experience across the economy.

Oral Answers to Questions

Liz Twist Excerpts

Tuesday 2nd November 2021 Commons Chamber

[Helen Whately]

We are indeed taking steps to support the haulage sector, where there is a long-running situation with vacancies for HGV drivers. The action we have taken includes making available 5,000 temporary visas for the short term, increasing the number of tests available so that there is greater capacity for new drivers to take tests, changing cabotage restrictions, and funding improved facilities for drivers. In the longer term, we need to see both better pay and better conditions for lorry drivers.

[Liz Twist (Blaydon) (Lab)]

3. What recent steps he has taken to help reduce economic inequality.

[The Economic Secretary to the Treasury (John Glen)]

Distributional analysis published at the Budget and spending review last week shows that in 2024-25, tax, welfare and spending decisions made since the spending round two years ago will have benefited the poorest house- holds most as a percentage of income. This Government believe that work is the best route out of poverty. That is why the Government are investing £6 billion in labour market support over the next three years.

[Liz Twist]

Analysis of the Chancellor’s Budget and tax and spending plans for the next six years shows that they will cost women an additional £48 billion over that period. That is a staggering amount of money to be taken from women, and it is in contrast to the planned tax cuts for banks. Is that why the Government have failed to produce an equality impact assessment for this Budget, as they are required to—because the Chancellor knows that his tax choices are totally unfair?

[John Glen]

The hon. Lady must have missed a number of measures announced by the Chancellor in the Budget last week in which significant investment was made to support families through the household recovery fund and support for women in particular to get back into the labour market, alongside a whole range of other interventions.

Working People’s Finances: Government Policy

Liz Twist Excerpts

Tuesday 21st September 2021 Commons Chamber

[Liz Twist (Blaydon) (Lab)]

Let me start by saying that I make no apology for referring to a subject that I have talked about very often in this House and in questions—universal credit and child poverty, which are inextricably linked. I want to talk again about the serious and really disproportionate effect that ending the universal credit uplift will have on people in my constituency of Blaydon and across the north-east.

Many constituents have written to me expressing their concern about the cut—the loss of the £20. I have heard both from people who receive universal credit themselves and know what a huge difference that has made to them, and from those who are concerned about other people in their community who will be affected by the cut. There is a real and genuine concern about how people will suffer as a result of the loss of that £20.

One of the many constituents who got in touch with me, Stacey, will, after the cut, no longer be able to afford to take her child to their hospital appointments as the travel fare is too expensive, leaving her, she says, to choose between buying food and accessing healthcare. Stacey’s story highlights perfectly what we know from the data and what we hear from charities across the region. Forty-six per cent. of families with children in the north-east will be affected by the universal credit cut, and that in a region that already had the second highest level of child poverty in the country before the pandemic. The cut will leave families worse off.

Of the 20 constituencies with the highest increases in child poverty between 2014 and 2019, 17 are in the north-east. In my constituency of Blaydon, 27% of children live in poverty. That is data from before the pandemic.

[Jim Shannon]

The hon. Lady is bringing forward the very important issue of child poverty. Charities have indicated to me that child benefit is a godsend, but they also say that the benefit cap has remained the same since 2013 and that, in the same period, inflation has been 17.56%. That means that people who have been on the same wage for eight years will find that if they go to their boss and ask for a wage increase, they will lose their child benefit. Does the hon. Lady agree that it is time to address that too?

[Liz Twist]

I thank the hon. Member for his intervention; of course, I absolutely agree with the important point he makes.

Some 7,320 households in my constituency of Blaydon, or 21%, will be affected by this cut, which represents a combined loss for low-income households in Blaydon of £146,400 a week. That is £146,400 being sucked out of the local economy each week, virtually overnight. Is that levelling up for my community? I thank the North East Child Poverty Commission for the important work it does to produce such figures, which graphically illustrate the problems we are facing.

We have talked a lot about jobs as well, because universal credit is as much an in-work benefit as it is an out-of-work benefit. Some 40% of those on universal credit are in work, many doing really important key worker jobs that did so much for our society during the last 18 months of the pandemic. This is not about people being lazy and wanting handouts. Low wages, poor-quality jobs, zero-hours contracts—they all mean that being in work is no longer enough to be out of poverty in this country.

[Jessica Morden (Newport East) (Lab)]

My hon. Friend is making an excellent point. She refers to the fact that 40% of universal credit claimants are in work. Does she agree that that means that one in 14 British workers might be affected by this cut?

[Liz Twist]

I thank my hon. Friend for her intervention and share her concern about the number of people who will be affected by this cut. Being in work is not enough; we need better quality jobs, with proper conditions and adequate pay.

I want to mention the energy price cap rise and the inevitable cost rises that will follow. Many of these families will feel the impact of that. Many may be living in poorly insulated homes and may feel the need to increase the heating in their properties. We know that there are links between poor quality housing and poverty and, indeed, poor health, so the energy price cap rise will have a significant impact on those families—probably more significant than for some of us. Labour wants to keep the uplift until we can replace universal credit with a better, more compassionate social security system that properly supports those who need it.

I want to refer also to the increase in universal credit claims as a result of the pandemic. I have managed to get information from Gateshead Council showing a significant increase in council tenants across Gateshead claiming universal credit. Indeed, from April 2020 to the end of March 2021—almost exactly that whole year of the pandemic—there were 1,758 new universal credit claims. Some of those dropped off during the year—perhaps they were not eligible, or whatever—but there was still an increase of nearly 1,100 tenants claiming universal credit.

One other issue, which we have talked about often and must not forget, is the five-week wait, which leads to incredible arrears, certainly in Gateshead. By 31 March, 69% of Gateshead tenants were in arrears by an average of £666. Clearly, those arrears need to be resolved at some stage. They are a debt around the neck of those people.

I want to talk about the national insurance rise. Research from the New Statesman and the Resolution Foundation shows that people in the north-east will lose a higher proportion of their disposable income than those in the south of England due to incomes on average being lower in the north-east: people in the north-east will lose up to 25% more income than those in the south-west. When it comes to social care, people will still need to sell their home to fund their care, especially people with lower value homes. They will still face a substantial cost before the cap kicks in. Homeowners in the north-east could face care costs of up to three fifths of their assets, including the value of their home, while homeowners in London face costs of just 17% of their assets due to the difference in the value of housing. That is deeply unfair, on top of the additional contribution for many workers who, as I said, are in relatively low-paid jobs.

[Matt Rodda (Reading East) (Lab)]

My hon. Friend is making a compelling and powerful speech about a wide range of issues affecting her region, and I commend her speech to the whole House. I was particularly moved by the point about housing and the difficulty for many tenants. Does she agree that there is a huge need for more council houses in this country?

[Liz Twist]

I absolutely agree about the need for additional council housing.

The rise in national insurance will disproportionately affect younger people and those on low incomes. It is absolutely right that we need more money for the NHS and social care after years and years of cuts, but it cannot be right that it is the lowest-paid earners who pay for it. The Government’s plan will not end the crisis in social care or help to fix the backlog in the NHS.

[Alex Cunningham]

The hon. Member for Aberdeen North (Kirsty Blackman) talked about the Conservatives not really understanding the plight of people living on universal credit. Does my hon. Friend agree with me that it might be a good idea for some of them to spend a month living on the income of a person on universal credit? Not just that, however. Let us load them with a debt of £10,000 and say that they have to pay off some of that debt out of their income as well, and maybe they might understand a little bit more.

[Liz Twist]

I would not like to load anyone with debt, frankly, but I do wish that people would understand what it is like to live on universal credit, and not just for a week or a month, with no recourse to a cash pot in the bank on which they can draw if they run out of money. Many of us will not understand that, but it came home to me very clearly when I became a councillor and an MP just how much on the breadline some people are, with no access to credit cards or other finance. It is a really difficult life for people.

I was talking about social care. As I said, the Government’s plan will not end the crisis in social care or help to fix the backlog in the NHS. It will take money from those already struggling financially, without fixing the problems. What my constituents want to know, when we talk about social care, is what services they will be able to access. We have talked about money and the need to address that, and we have talked about caps. What we have not talked about is what the Government’s social care plan means for those of my constituents who actually receive social care, with people coming in to look after them. Will they receive a better service? Will the staff, many of whom will be caught by the universal credit cap, see decent pay and conditions, and recognition for the really important work they do? We are missing a huge piece of the jigsaw and the Government need to address that. Labour has said that there are many other ways to raise the money, including taxing the incomes of landlords, and of those who buy and sell large quantities of financial assets, stocks and shares. Labour has been clear that we want those with the broadest shoulders to carry the burden.

I want to talk a little bit about the excluded, because so many of my constituents during the pandemic, including the self-employed, have found themselves facing real problems. They were excluded from any schemes that the Government brought forward and in many cases they were excluded from universal credit because of money that they might have put away for tax, or small amounts of money. Lots of single people running dance schools or hairdressers or working from home have found it hard to get through. It is really important that we recognise the pandemic’s impact on them. I know from Zoom calls with my constituents—people who own beauty salons, people who were creative—how much they have been affected. They really have suffered.

Lastly, I pay tribute to Gateshead food bank, Gateshead Council and the many other local organisations that have picked up a lot of the slack. They are doing a great job, but for goodness’ sake, it should not be necessary in this day and age.

--- Later in debate ---

[Jessica Morden]

My hon. Friend has made an extremely valid point. I see that at first hand in my constituency, and I hope that Ministers will note what he said, take it away and actually do something about it.

People are using credit, including high-cost credit, to cover essential outgoings—spending on groceries, energy bills, and school books and stationery for children. Those on the lowest incomes are also bearing the brunt of the rising food prices that we have talked about today. I pay tribute to Raven House Trust food bank, Caldicot food bank, and all the other food banks that serve Newport East for the fantastic work that they do to support people. I also pay tribute to the community and the churches for supporting those food banks during what has been a very difficult time.

[Liz Twist]

During the pandemic, we have seen our community groups, our churches and others come to the forefront and help people. Without that help, would not many more people have been in real difficulties?

[Jessica Morden]

My hon. Friend is right. We owe a debt of gratitude to all those out there in the community—in churches and in other organisations—who have stepped up to help those who are suffering the most.

According to the BBC food price index, food prices have risen by 8.3% since January, with meat and fish up by 22% and fruit and vegetables by 14.7%. As has already been said today, the Government have done very little to address the supply chain issues which are leading to higher prices yet again. We are seeing HGV driver shortages and delays at borders and ports, and we need the Government to address those problems. As we have seen in many news reports, the costs of raw materials for many goods and services have risen as well, affecting the cost of furniture, women’s clothes, vets’ bills, second-hand cars and more. So much for the positive strategy from this Government for shaping our future post Brexit.

National Insurance Contributions Bill (First sitting)

Liz Twist Excerpts

Committee stage
Tuesday 22nd June 2021 Public Bill Committees

[Jesse Norman]

I thank the hon. Gentleman for his questions. He repeated the question from Second Reading of why the measure is for one year, contrasting it with the freeports measures, which are for three years. The Exchequer Secretary was absolutely right, but it is important for me to add more colour.

The freeports measure is set at a lower upper secondary threshold, but for a longer period, because the goal is to bring people into an environment that has already been greatly supported by taxpayers, but to create circumstances in which they can have long-term secure employment, in particular with all the employment rights that come with more durable employment. The NICs relief for veterans is at a higher level for a shorter period, because the goal is to support a very specific process of transition, which veterans have as they come out of the armed forces.

Many people in the room have constituencies in which there are veterans or serving armed forces personnel, so they will appreciate the importance of the measure. Veterans are extremely skilled individuals who have extraordinary life experience, but there is often that process of transition. Therefore, the more effective approach is to provide more support for a shorter period to assist that transition in as flexible a way as possible.

[Liz Twist (Blaydon) (Lab)]

I understand the concept of the transition, but does the Minister not share my concern that it might go against the grain of what he is trying to do if we were to find that, after a period of one year of having the national insurance relief, people were out of employment? The proposal to look over a longer period would be beneficial to veterans in maintaining long-term employment.

[Jesse Norman]

I fully understand the concern of the hon. Lady, and precisely because the Government have been concerned about transition, we have introduced the relief. If it were the case that veterans still had a serious problem of finding secure and stable employment, of course that would be a matter that the Government would wish to reflect on and consider. I thank her for raising it.

To go to the second point raised by the hon. Member for Ealing North, he asked about the timing and the issues of real-time payments that the Bill contemplates. I understand the concern, in particular at this moment of pandemic when the Government are seeking to protect and support the cash flow of businesses and have done so across a vast number of them, across the whole of the United Kingdom, in many different forms. The Committee is aware of that.

The hon. Gentleman asked if we would look at that. Of course, I am happy to consider the matter further and to ask HMRC to consider it, but as he will recall, the matter has been given extensive consultation and internal discussion, and the IT and other problems that I described are not ones that can be wished away.

Economic Update

Liz Twist Excerpts

Monday 11th January 2021 Commons Chamber

[Rishi Sunak]

I thoroughly enjoyed my conversation with my right hon. Friend’s local businesses. He mentioned exactly the right point: quality of life. This is not just about our economy and jobs; this industry is so vital for our wellbeing, and it brings spirit, life and vitality to our local communities. He can rest assured that I will want to continue supporting the industry, as I have done in the past, and I will bear what he says in mind for future Budgets.

[Liz Twist (Blaydon) (Lab)]

A failure to make the £20 uplift to universal credit permanent would have a disproportionate impact on families across the north-east, which has the highest rate of unemployment and the second highest rate of child poverty. Will the Chancellor now commit to make that £20 uplift permanent?

[Rishi Sunak]

The hon. Lady, for whom I have a lot of respect, mentioned two things: unemployment and child poverty. We know that the best way to ensure that children do not grow up in poverty is for them not to grow up in a workless household; indeed, the rate of poverty among children who are not in workless households is five times lower. Work—removing unemployment—is the best, surest and most sustainable way out of poverty, which is why this Government have backed with billions of pounds our various initiatives to support people into work, which I know she will support, whether that is the restart scheme, the kickstart scheme, doubling the amount of work coaches or increasing the incentive for people to take on new apprentices. Those are all the surest ways to help people out of poverty, and that is why we are committing billions of pounds to that end.

Coronavirus Job Retention Scheme

Liz Twist Excerpts

Thursday 17th September 2020 Commons Chamber

[Liz Twist (Blaydon) (Lab)]

I am glad to be able to take part in this important debate. Yesterday, at Prime Minister’s questions, the Prime Minister proclaimed:

“We need to get people off furlough and into work”.—[Official Report, 16 September 2020; Vol. 680, c. 311.]

But he said that the scheme is not “the right way” to do that. Yet, he also stated that the Government will continue to apply the maximum creativity in putting their arms around the workforce in the UK. This contradiction is forcing millions into crippling uncertainty. The Government’s short-sighted decision to withdraw support for jobs and businesses across the UK will be nothing short of disastrous for people, for businesses and for jobs. We all know that. We have warned them time and again that this approach will result in job losses and hardship for ordinary people who are just trying to get through the coronavirus crisis.

According to IPPR research, 2 million viable jobs are at risk. Other countries have extended their schemes, why cannot we? In fact, we should. I am not arguing that the furlough scheme should be carried on just as it is. I am not arguing for a one-size-fits-all approach to job retention and I am certainly not asking the Government to throw money at every industry. What we need is a flexible, targeted support scheme beyond the autumn to save millions of people in vulnerable sectors from the jobs crisis. To avoid this inevitable jobs catastrophe, we need some key actions and changes to the furlough scheme. We need to expand part-time working and reward employers who give people hours rather than cut jobs. We need to provide training and support for those who cannot come back full time. We need to target sectors most in need, including retail, which is a major employer in my constituency of Blaydon and already suffering. We need to target hospitality and other people hit by local lockdowns. We need to provide certainty for workers and businesses, but, instead, what have we got? We have the job retention bonus, which is a scheme that will see taxpayers’ money going into businesses that were going to bring back workers anyway. My constituents do not need a bonus, they need a lifeline.

Things will only get worse if the Government continue with their plans to strip people of that lifeline shortly. Earlier this week, the north-east chamber of commerce said that it knows that the winding down of the job retention scheme is likely to lead to significant redundancies in the months ahead. The continued rise in the claimant count in my constituency in the north-east is an early indicator of that. Many of those people who are jobless and claiming at the moment are in the 18-to-24 age group. The crisis has had an unequal impact on young people in the north-east.

We know as well that some people have got on the job retention scheme as it is coming to an end, but there are other people who have been excluded, who have fallen through the cracks. So many businesses in my constituency tell me that they are not able to claim grants and they are not able to furlough themselves. These are not rich business people. They are not fat cats. They are people who are just working hard to make ends meet and to provide businesses and employment in the constituency. I hope that the Government will think again and consider extending the furlough scheme, but in a new form, which better reflects the needs of the people. That will give people in my constituency—both employees and entrepreneurs—a chance to survive.

Contingencies Fund Bill

Liz Twist Excerpts

Committee stage & 2nd reading & 2nd reading: House of Commons & Committee: 1st sitting & Committee: 1st sitting: House of Commons
Tuesday 24th March 2020 Commons Chamber

[Liz Twist (Blaydon) (Lab)]

I want to touch briefly on the situation of charities and their funding in the context of coronavirus. I am aware that charities have already been in conversation with the Ministry of Housing, Communities and Local Government about funding to allow them to assist in responding to the crisis. So many people face huge need and social isolation. Just some of the factors affecting those people are funding for food banks, which is falling because of the current situation, as are donations; funding for listening services; and funding for care services, which are needed more than they have ever been.

Charities face huge challenges, and they, too, need contingency funding measures if they are to survive and assist our communities as we face this challenge. Many of them are losing income because of the need to close their charity shops and the cancellation of fundraising events. Will the Minister confirm that charities should be eligible for the same business interruption measures as other business organisations? Will he look again at the trading income threshold, which, as I understand it, requires 50% of income to come from trade?

Charities need a stabilisation fund to help them to stay afloat and assist our communities, and I hope that that will be made available to our charities in the context of this contingency funding. Will the Minister confirm that they will be eligible for support to pay their staff, as other employers are? It is vital that we retain the infrastructure of our charities if we are to get through this situation and survive into the future.

There must be emergency funding for frontline charities that are supporting the response to coronavirus to ensure that they can remain afloat and provide that service. I am aware that my hon. Friend the Member for Lewisham, Deptford (Vicky Foxcroft) has written to the Chancellor of the Exchequer about that, and I hope he will respond thoughtfully and positively to the points that she has made.

We face a huge issue as we move, quite rightly, into greater social isolation. Charities such as Age UK Gateshead, which covers my constituency, and Samaritans have a real and positive role to play in countering the mental strain of loneliness and isolation, which many people will undoubtedly face in this situation. I ask the Minister to ensure that charities are given the funding that they need.

While I am on my feet and I have, I hope, the Minister’s ear, I put in a plea for funding for the self-employed, particularly those in what I would call microbusinesses—the dance schools, the musicians, the driving instructors and the pest controllers—who are contacting me, even as I have been sitting here, to say, “I just don’t know what I am going to do.” They not only have no income, but they do not qualify for the various grants and loans. They are left trying to claim universal credit, but the huge backlog of claims means that, with the best will in the world, no payments will be made quickly. So many of them have contacted me in desperation in the last couple of weeks. They have lost not only their main income but their future business, and they will have to rebuild from the start. Can the Minister press the Chancellor to provide funding for that group of people?

Finally, I want to flag funding for transport services. The coronavirus has produced a huge change in the usage of our transport systems, which are vital for the future. I know that many transport authorities are looking at how they can maintain transport services, but it is important that we work sympathetically and flexibly to maintain our public sector transport system.

Wild Animals in Circuses (No. 2) Bill

Liz Twist Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 4th June 2019 Commons Chamber

As I have explained previously, under the Animal Welfare Act 2006 an inspector may seize an animal if it is suffering or is likely to suffer if its circumstances do not change. If someone is convicted of either causing unnecessary suffering to an animal or failing to provide for its welfare needs, the courts also have a power to disqualify them from owning or keeping animals.

[Liz Twist (Blaydon) (Lab)]

There is concern about using two different bits of legislation to solve one problem. Would it not be clearer to cover this issue in the Bill, rather than relying on the Animal Welfare Act?

[David Rutley]

That is an interesting point. It is difficult to get the balance right, but the key thing to remember is that we are discussing an outdated practice that we want to see removed on ethical grounds. Seizure is much easier where there are genuine welfare concerns—I will explain why in more detail—and those powers are contained in the 2006 Act.

If the animal is subject to the Dangerous Wild Animals Act 1976—of those animals currently kept in circuses, only camels and zebras are subject—it may be seized if it is being kept without a licence or if a licensing condition is being breached. There is no need to replicate those powers here. In Committee, concern was raised about repeated breaches of the Act. The courts would have the power to impose unlimited fines, which makes it highly unlikely that a circus would continue to reoffend, for economic reasons.

Powers to seize animals interfere with the peaceful enjoyment of possessions, which is protected by article 1 of protocol 1 to the European convention on human rights. Interferences must be justified and proportionate. That may be easy to do if an owner is mistreating an animal and the powers are being exercised under the Animal Welfare Act, which is the point I was trying to make earlier. However, the objective of this legislation is simply, but importantly, to prevent the use of wild animals in circuses on ethical grounds. Preventing someone from using animals for other purposes, which is what the seizure and deprivation powers do, goes beyond what is necessary to achieve the objectives of the Bill.

Wild Animals in Circuses (No. 2) Bill

Liz Twist Excerpts

2nd reading: House of Commons & Programme motion: House of Commons
Tuesday 7th May 2019 Commons Chamber

[Liz Twist (Blaydon) (Lab)]

As we have heard from so many hon. Members today, this Bill is long overdue. We have heard about the many earlier attempts to get this ban on the statute book. A statement from the Government in 2012 indicated that they were going to pursue this path, so the Bill today is well overdue.

My constituents have been contacting me about this issue since I became a Member of Parliament, and I know that people feel strongly about it. Indeed, a change.org petition on the subject attracted more than 200,000 signatures—I know that many of my constituents signed it—and there have been other e-petitions along the way. It is about time that we moved on from this archaic practice and recognised that our entertainment comes at a huge price—the welfare and care of the animals that are moved from place to place in poor conditions and under a great deal of stress. As I have said, this Bill is well overdue.

In 2010, a Labour Government public consultation found that 94.5% of respondents supported a ban, which really is not surprising. Animals in circuses are subjected to brutal training methods and violence, which have no place in our society. I am glad that it looks as though a ban will finally be imposed. As others have said, it is frustrating that we are way behind the times in this country. Many countries across the globe have already implemented similar bans, and it is simply unacceptable that the UK is left lagging behind other countries with regard to animal welfare standards in circuses. Furthermore, recent research shows that animal freedoms and animal rights are not being adhered to, even though people care very much about them. That is why I am keen to speak in this debate.

Hon. Members have referred to various issues that will require work in Committee. They include the definition of a travelling circus; the powers to seize animals; liability; the disqualification of offenders from keeping wild animals; and the power of entry. I am sure that all those details can be dealt with in Committee. A key issue is the definition of a travelling circus, and I hope that great consideration will be given to ensuring that people’s concerns are addressed in that respect.

I am glad to see this Bill coming forward, but a lot of other important animal legislation is needed and my constituents are certainly keen to see it passed. The issue of recognising animal sentience has been mentioned, as has the fact that we missed the opportunity to include that in the European Union (Withdrawal) Act 2018. We have also talked about longer sentences for animal cruelty and about extending the scope of the Ivory Act 2018, which will be familiar territory for many people in the Chamber today.

I hope that the Minister will be able to reassure us about the fate of the animals that are currently in circuses. Can he confirm that what happens to them will be monitored? The question of monitoring is a consistent theme when we look at legislation to protect wildlife; it was also discussed during the passage of the Ivory Bill. The same concerns apply to the strengthening of the National Wildlife Crime Unit. Can the Minister confirm that the unit’s funding will be continued?

Draft Veterinary Medicines and Animals and Animal Products (Examination of Residues and Maximum Residue Limits) (Amendment Etc.) (EU Exit) Regulations 2019

Liz Twist Excerpts

Tuesday 12th March 2019 General Committees

[David Rutley]

The arrangements that I am talking about are UK-wide; we are bringing what currently sits in EU law into, and across, the UK. If the hon. Gentleman wants further clarification, I can seek some inspiration, but it is a UK-wide statutory instrument.

In line with the Government’s better regulation principles, a formal impact assessment has not been carried out because the costs involved are small. The impact on businesses has been assessed as well below the threshold requiring an impact assessment. It is vital that marketing authorisation holders can be held accountable for their products, and this regulation provides for that.

Part 4 of the instrument sets out the necessary amendments to retained EU regulations that become UK law as provided by the European Union (Withdrawal) Act 2018. It is linked to another instrument: the Food and Drink, Veterinary Medicines and Residues (Amendment etc.) (EU Exit) Regulations 2019, which transfers the power to set maximum residue limits to the UK from the European Commission, and is yet to be debated in this House.

European regulation 470/2009 sets out how maximum residue limits for substances used as veterinary medicines are set. MRLs are the maximum safe limit of a particular substance in produce from animals. These limits are used to establish withdrawal periods—the period that must elapse after the last administration of a medicine before produce from that animal may enter the food chain. Without these amendments, the UK would be unable to regulate the marketing and use of veterinary medicines effectively. That would have negative impacts on businesses and our ability to protect human and animal health and the environment.

Although a formal public consultation has not been carried out, and has not been required under existing guidelines, the Government have proactively engaged with the animal health industry to discuss how we ensure that the regulatory regime continues to function effectively after exit day. Lord Gardiner of Kimble has met the veterinary pharmaceutical industry association, the National Office of Animal Health, on a number of occasions as part of our extensive engagement. Officials from the Veterinary Medicines Directorate continue to hold regular meetings with key industry representatives. The industry has welcomed our proactive and continued engagement with it. We have worked closely with the devolved Administrations on this instrument, and where it relates to devolved matters they have given their consent.

[Liz Twist (Blaydon) (Lab)]

I would like to ask about the different standards in different UK devolved areas and when it comes to trading with other countries. Is there not a risk that we will have different standards as time goes on? We therefore need co-operation to ensure that we can continue to trade effectively.

[David Rutley]

Well, we will be leaving the EU, so we need our own mechanisms in place to validate veterinary medicines. That is primarily what we are talking about here. We are bringing back to the UK powers by which medicines are authorised. We will carry on doing that. As it happens, most authorisations already take place in the UK. Unlike for some medicines used for humans, veterinary medicine authorisations often take place in the national states themselves. It will be important to maintain high standards. The hon. Lady and I have exchanged views on that matter in other situations, and I know that she will continue to hold me and the Government to account on these matters. The steps that we are taking in this legislation will bring across powers that are currently in the EU so that we can do what currently takes place. The only thing that is different is the market authorisations. We are requiring those entities to have a market presence in the UK, but at a very low cost. That is the approach we felt was most appropriate to get the balance right.

The Government are committed to ensuring continued levels of protection for human and animal health, as well as making it straightforward for businesses to put medicines and relevant food products on the market, ensuring that UK businesses and individuals continue to have access to a range of veterinary medicines. This instrument will help to maintain the established veterinary medicines and residues surveillance regimes, and will ensure that an effective regulatory framework for veterinary medicines is in place. This instrument does no more than is appropriate to remedy deficiencies in law arising from leaving the EU. For the reasons I have set out, I commend this statutory instrument to the Committee.