My Lords, before I start, I want to register a complaint about this Room. Since 2013, I have sat on this side of the Room, previously being a Minister and chair of the FSA. I am fed up to the back teeth; that light up there has been flashing for over eight years. It does not affect people on the other side. I fully accept that you have to be pretty sensitive to it, but it has been like that for eight years and no one has done anything about it.
Having got that off my chest, I thank the Minister for bringing forward these regulations. I accept, as he said, that they are very narrow, but this is a golden opportunity to raise other issues relating to eggs, as has been the case. I agree entirely with the speech of the noble Baroness, Lady McIntosh of Pickering. Some time, I would like the Minister to answer the point just made by the noble Lord: what is our latest self-sufficiency figure? I found a figure of 89% of imports, or £1.7 billion, and exports of only £315 million. It is not a big issue. I just wondered what it was.
People joked about egg fraud when I raised it as a Minister, but it is big business. We must take steps to stamp it out. I will give only a snapshot. In 2010, Mr Owen of Bromsgrove was fined £3 million and did three years inside. That case started while I was at Defra, from 2006 to 2008, because of the way it was tipped off. Some 100 million eggs were mis-sold due to mislabelling. The defence had the brass neck to argue that Owen was not the only person “creating mischief in the egg industry”. That is the kind of class act of barristers. That was the defence argument—a bit of mischief. Some 100 million eggs were mis-sold; basically, low-level stuff sold as free range.
In 2018—it has not gone away—there was payback of £500,000 and 30 months inside for Anthony Clarkson of Preston. Again, it was free-range egg fraud—buying barn eggs and selling them free range. There are plenty available. In February 2019, a Netherlands trader was convicted of selling eggs unfit for human consumption. The other thing is: can we trust the statistics on eggs? We are talking about big figures by definition. I regret to say that I have only just discovered that, from 1996, hopefully not until now, HMRC showed errors in its imports and exports of three times the real figure. For 2008, the claim was that 600,000 cases—a case is a lot of eggs, at least 360—were exported, but it turned out to be less than 200,000.
In February 2013, Defra reported that the UK imported 267,000 cases, but, in reality, it turned out to be 127,000 cases. The exports in the same year were given as 61,000 cases, but, in reality, it was only 16,000 cases. There is a brilliant graph of what HMRC was producing. I take exception to this because, at some point during that period, I would have answered Parliamentary Questions, both in 1997-99 and 2006-08, giving false information. I have never been informed about this; it has come about only because I was searching the web in preparation for this debate. I had no idea about the revised figures of this HMRC miscalculation. Quite a serious issue is: can we trust the figures that we are given?
As the noble Baroness, Lady McIntosh, said, this is all about the EU and Brexit. The EU’s export figures and documentation are brilliantly accessible, unlike ours.
I gather that, in 2019, the EU exported to the UK 12,048 tonnes of eggs for consumption—I have dealt only with eggs for consumption; I have not dealt with eggs for food production or day-old chicks. That figure is down in 2021 to 7,358 tonnes. The UK exported almost a similar figure in 2019: we exported to the EU 11,022 tonnes. That is now down to 6,685 tonnes. The EU imports eggs from all over the world. I am not familiar with the sanitary checks at the ports or the others. We are facilitating food imports from the EU without lots of checks because we accept it; we trust it. If anything is going around and being marketed in the EU, then it is okay by us—that is what we said—and it is why we are not employing loads of people to go round the world checking on food production, which is what the EU was doing for us before Brexit. We are relying on the EU to do it for us. If it is okay for the EU, it is okay for the UK.
The EU imports eggs from around the world—and I mean around the world: from Ukraine, USA and Argentina. It also imports from China—I repeat, China: the equivalent of 1,348 tonnes of eggs in 2020. Other countries include North Macedonia, Albania, Norway, Switzerland, Kazakhstan and Bosnia-Herzegovina. How do we know that the eggs that we import from the EU are only from the 27 member states? If eggs are being moved around the EU—and let us not forget that many of them will come in unmarked; they will be marked in the EU—how do we know that we are not importing from outside the 27?
I would hate to think, for example, that we were importing eggs from China without any checks. We would not know whether they were produced via slave labour, which, as we know, the cotton pickers are in Xinjiang. Who is checking on this? There are some serious issues. In 2020, the EU exported to the UK 100,160 tonnes equivalent. The UK was the biggest destination of eggs from the EU. The next were Japan, with 68,163 tonnes, Israel, with 14,809 and Russia, with 45,378, so the UK was by far the biggest recipient of exported eggs from the EU, with Japan being the next.
Where are they coming from and how do we know? Those are legitimate questions for me, for regulators, for food producers, for customers and for supermarkets. A lot has been done to improve the standards of egg production in the UK—I fully accept that—but how do we know that eggs are coming only from the 27 EU member states? There are some serious issues here that the Minister will, I hope, be fully briefed to answer.
My final point concerns another aspect of this. The eggs that are coming in will not all be for consumption; some of them will be for food production. I picked up from Food Manufacture magazine concerns about the importing of eggs to the UK for use in “British” products—that is, as ingredients in pre-prepared foods. We use imported eggs. If the fact is that we are only 89% or 90% self-sufficient, that 10% represents a hell of a lot of eggs.
I understand that there is a petition asking UK supermarkets, although this is not their full responsibility, and food producers to stop such imports. There is a complete lack of transparency in the sourcing of egg products in such foods. Customers today are faced with eggs on the shelves in supermarkets with the
British Lion brand and the name of the farm on them —great—but nobody knows where the eggs they are consuming in the pre-prepared foods they buy on the shelf next door come from, because there is a lack of transparency. They will certainly not all come from the UK as, by definition, they are imports. British Lion egg producers are quoted as saying:
“In recent years there have been a number of food safety issues associated with egg products produced in Europe and further afield.”
“Further afield” means outside of Europe. They go on:
“Using them also adds unnecessary food miles and does not meet the guaranteed, high standards provided by the Code of Practice for the production of Lion Quality Egg Products.”
What is the Minister’s view of the petition?
I have a soft spot for Defra and MAFF, having spent four years in total in both departments. It is the producers’ ministry; that is what I used to say when we were setting up the FSA. “We want the consumer to be looked at. Carry on being the producers’ ministry”, I used to say—but, listening to what the Minister said, it is no longer the producers’ ministry if its approach is to smash up the UK industry by saying that it wants lots of cheap imports. If that is its attitude on eggs, that will be the policy attitude on other foods and ingredients, which is what some of us said would happen before Brexit. We were constantly told by the noble Lord, Lord Gardiner, who was the Minister concerned—I must have a dozen cases of this in my files upstairs—that there would be no diminution in the quality of and food standards for imported food. That was repeated day after day, month after month, with great sincerity. Nobody is questioning the noble Lord’s sincerity but the reality is that the department is seeking to go back on that commitment. That is the only conclusion to draw in talking about cheaper food. Cheaper food comes about only because of less regulation, lower welfare conditions and worse pay and working conditions for workers. That is the only way it happens. It is what happens in this country, which is why we must be careful about the work of the gangmasters organisation.
The reality is that this is a good example. It is an egg. We all know what an egg looks like and what we can do with it. It is not so easy with other products, such as cuts of meat and grains; that is all too technical. The public understand that, if we as the public are being cheated on egg imports, how do we know we are not being cheated on other food imports when the ministry that is supposed to be looking after this and guarding the regulations is now hell-bent on trying to reduce standards? It is no good the Minister shaking his head; he has to give chapter and verse to answer exactly what his current department’s attitude is.
5.45 pm