I am very grateful to both noble Baronesses for their contributions, questions and broad support for this measure. To take the noble Baroness’s last point first, I wish the same on everyone else over Christmas. I think we all deserve an extra glass of wine—drunk in moderation, no doubt.
The noble Baroness, Lady Bakewell, asked when the provisions will be introduced. It is intended that they will come into force on 1 January 2022, in a few weeks’ time. This will include the provisions to amend the Wine Regulations 2011. Longer term, the Government will consider consolidating and updating the Wine Regulations 2011 as part of our general review of domestic wine policy.
Both noble Baronesses asked about Northern Ireland, and quite rightly so. The statutory instrument does not apply in Northern Ireland, as they correctly pointed out, and will not result in any changes to the certification of GB-produced wine sent to Northern Ireland. Obviously, Northern Ireland will continue to follow the rules for VI-1 certification set out in the protocol. Most movements of GB wine to Northern Ireland have fallen within the scheme for temporary agri-food movements to Northern Ireland, and movements of GB wine to Northern Ireland are very small. They often fall below the 100 litre de minimis requirements for a VI-1 certificate set out in EU law.
The noble Baroness, Lady Hayman, asked about the Northern Ireland protocol. It is an absolute priority for the Government. She will be aware of the negotiations
that my noble friend Lord Frost is leading. We very much hope that they will be successful and that the circumstances of the Northern Ireland protocol, which must change, will be understood and accepted on both sides. I cannot give her an up-to-date assessment of those negotiations but it is very much hoped that we can reach agreement without resort to any attempt to trigger Article 16. That would be a failure of negotiation, and we are working hard with our European partners. That is very relevant to this, because it is a massive industry for France, Spain, Germany and Italy, and we want to continue to have it here.
Both noble Baronesses asked about the impact of the measure. They rightly raised concerns about the cost of wine and asked whether that would have an impact on increased usage. Industry estimates that the cost savings due to the removal of VI-1 certificates would amount to around 10p per bottle of wine for an averagely priced bottle of around £6. That would represent a saving of approximately 1.7% of the retail price or 1% for a bottle of £10 wine.
However, this would most likely not trickle down to consumers. I hope it does, but that is a matter for the trade. The Wine and Spirit Trade Association pointed out in discussions today that the marketplace is limited because of the cost of complying with the VI-1 certificates; it costs about £350 every time you go to a laboratory for analysis for the correct certification. The loss of that cost will mean that a wider choice is available to the public, but I hope everyone will agree that it is not a dramatic reduction that is likely to impact on the wrong kind of alcohol use.
The point on the impact assessment was very well made. The primary objective of this instrument is to bring in measures to enable the UK to implement the TCA, which has already been agreed and ratified. The only aspect that goes beyond options set out in the TCA is removing the requirement for wine imports from the rest of the world to produce a VI-1 certificate. We accumulated significant evidence that this decision would be widely welcomed by the wine trade. The need to conduct an impact assessment was deemed unnecessary, and this view was supported by the Department of Health and Social Care.
The noble Baroness, Lady Hayman, made a general point about supporting the wine industry. We are working closely with the industry to promote English and Welsh wine. Defra is working closely with the FCDO to ensure that Great British wines are served at our embassies around the world and doing a lot to promote what was in our lifetimes a nascent and very small industry but is now developing extremely well. We want it to be an option for land managers to look at new vineyards but also a means of helping our exports.
I thank all noble Lords who have contributed to this debate. I will look in Hansard to see whether there are some points I have missed. In the meantime, I remind noble Lords of the positive changes contained in this instrument. The regulatory changes we are introducing enable us to meet our international obligations and implement the 15th annexe of the TCA concerning the trade in wine with the EU.
We have listened to the wine trade and your Lordships and have removed the requirement for VI-1s, not only for our imports from the EU but for those from other excellent wine-producing nations across the world. I hope noble Lords will therefore agree that this instrument is worthy of your Lordships’ support. I beg to move.