My Lords, I am grateful to the Minister for introducing these SIs and for the helpful briefing he organised for us beforehand. As he says, they are largely technical amendments necessary to enable retained EU law relating to the CMO, the CAP and rural affairs to operate effectively after exit day. I agree with the noble Lords who said that the wording of these five SIs is particularly complex, and we were grateful to have a prior opportunity to work through some of those complexities before debating them. Having said that, we do not find them particularly controversial, but I have a few general questions about the approach taken here, on themes that run through these five SIs but also some of those we will debate in the coming weeks.
First, a number of SIs in this group amend existing EU exit SIs that we have previously debated and approved. This includes amendments to transition periods, which are required because the original SIs set out specific dates when arrangements would cease, based on an assumption that we would leave on 29 March 2019, which, as the Minister said, clearly did not happen. These amendments update a series of those transitional arrangements so that they will commence on “exit day”, whenever that might be, and cease after a given period of time. I agree with the noble Baroness, Lady Bakewell, that this makes very good sense.
In the absence of an acceptable deal, and on the basis on the Benn Act, I am of course grateful for this change in approach so that we will not have to repeat this exercise when Article 50 is inevitably extended once more. But can the Minister explain why the original SIs, which contained specific dates when the transitional arrangements would end, spelled out that they were based on the UK leaving the EU on 29 March? Why did we not foresee that this might be a problem? Why has there not been consistency on this matter? Other EU exit SIs set out the length of the period that would commence on exit day. It is such a common-sense way to approach this that I am curious as to why we have been inconsistent in our approach.
Secondly, as the Minister described, these SIs provide for transitional arrangements to give businesses time to adjust before they must adapt to the new regulations and requirements stemming from Brexit. As he said, this includes a 21-month transition period for forms and certificates the UK will accept from third countries attesting that a fruit or vegetable product meets marketing standards requirements, during which both the new UK forms and certificates and their equivalent EU versions would be accepted. It also includes a three-month transition period for veal imports, which would have allowed the EU time to gather and submit the required notification information to the UK. That is all very well, and I understand that we have now changed those transitional arrangements, but can the Minister advise whether these new transitional arrangements have been reciprocated by the EU? If not, can he advise the Committee what impact this will have on UK businesses and how these changes have been communicated to those affected? If a mutual transition period is not agreed, what action is Defra taking to encourage a pragmatic approach to enforcement within the UK?
Thirdly, the SIs in this group amend retained EU law and domestic legislation relating to the CAP and CMO to ensure continuity and facilitate a smooth transition to a domestic regime. As we know, the powers to change and diverge from these retained measures will be set out in the agriculture Bill. The farming sector expressed frustration at the delay to the previous Bill’s progress earlier in 2019. The National Farmers’ Union said in response to the 2017-19 Agriculture Bill failing that the timetable for changing farm payments should be delayed by at least a year, to start from 2022.
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The Treasury previously guaranteed to maintain the same level of support under both Pillar 1 and Pillar 2 of the current CAP until the end of this Parliament,
whether the UK has a transitional period or not. This was of course understood to be in 2022, when the new provisions under the previous Agriculture Bill were expected to take effect. Can the Minister assure the Committee and the farming sector that if the Prime Minister and the leader of the Opposition get their wish for an early election, payments would be guaranteed until at least 2022 in the unlikely event that we have a Conservative Government re-elected? Can he advise whether any consideration would be given to further extending transitional arrangements relating to the CMO and CAP payments, owing to the delay in bringing forward another agriculture Bill? I am sure he will understand that this has caused further uncertainty in the farming community. What representation has he received from stakeholders on this issue?
On devolution, as the Minister described, many of the areas covered by the SIs are devolved, with the powers transferred to devolved Ministers but with provision for the Secretary of State to act on behalf of Scottish Ministers, Welsh Ministers or the Department of Agriculture, Environment and Rural Affairs in Northern Ireland. My noble friend Lord Jones understandably raised the concerns of the upland sheep farmers in Wales, the impact of all this and whether it was necessary to take a different line or strategy in Wales to protect upland farming from a policy that might be pursued elsewhere. The Explanatory Memorandum advises:
“The ability of the Secretary of State to be able to act for one or more of the Devolved Administrations will allow for powers to be exercised uniformly across the UK or across certain constituent nations, where it is convenient to do so”.
It goes on to state:
“The ability of the Secretary of State to act with the consent of Ministers does not apply to Wales in certain cases”.
This is because in some areas relating to enforcement Wales has chosen to introduce its own statutory instruments, including on the administration of apiculture or beekeeping schemes and some of the design elements of school milk schemes. Can the Minister shed some light on why the Welsh Government have taken this approach and what discussions have taken place to try to ensure a uniform approach? I am sure he would agree that that would be preferable for businesses in the sector, which would not necessarily have to make changes as they import and export across the borders.
The Explanatory Memorandum also notes that some of the European Commission functions that have been amended could be exercised in ways that are reserved, such as when they affect trade or are devolved in other ways. In such cases, the power is conferred on the Secretary of State as they need to be exercised uniformly across the whole of the UK. Can the Minister elaborate on this explanation by providing examples of when the Secretary of State might use such powers and insist on that uniformity, rather than allowing for the greater flexibility that devolution brings? In that case, when the Secretary of State exercises those powers what role will the devolved authorities have? To what extent will they be consulted to show that they are content with the proposals before they are implemented?
Finally, as the Minister knows, Scotland chose not to be part of the agriculture Bill, which will lay the foundations for agriculture policy outside the EU.
Does that have any implications for powers that have been conferred on the Secretary of State that need to be exercised uniformly across the UK? I look forward to the Minister’s response.