My Lords, I will start with Amendment 89A. Marketing standards establish detailed rules on the quality of agricultural products and the provision of product information to consumers. They are intended to make sure that products offered to consumers are accurately and consistently labelled and of acceptable quality, and that unsatisfactory products are kept off the market. They are overall in the interests of producers, traders and consumers. They encourage high-quality production, improve profitability and transparency and protect consumer interests. At present, certain agricultural products marketed in the EU must conform to marketing standards and associated labelling requirements set out in EU law. The marketing standards apply at all marketing stages, including import and export.
The noble Lord, Lord Holmes, asked why we could not do nothing. We all despise unnecessary bureaucracy, but VI-1 forms are needed until the end of the transition period under the terms of the withdrawal agreement. We will be looking at these rules again at the end of the transition period. I reassure him on digitalisation: the administration of maintaining marketing standards of imported wine products, including the digitalisation of VI-1 forms, is included in the current scope of Clause 35(1). These provisions do not therefore need to be explicitly added into the clause. The scope to replace VI-1 forms with an electronic document is also covered under retained EU law, specifically Article 27
of retained EU delegated regulation 2018/273. Therefore, the purpose of this amendment is already covered. The Government cannot digitalise unilaterally, but it is already an option under retained EU law, and we are looking at introducing it. It is likely that South Africa will be the first partner we seek to do this with at the end of the transition period.
I turn to Amendment 91. Clause 35 will give the Secretary of State the power to make regulations and amend existing EU and domestic legislation concerning marketing standards to ensure that they are tailored to meet the needs of domestic farmers, retailers and consumers. A full review of the marketing standards is going to be undertaken. As part of this, detailed policy thinking, stakeholder engagement and consultations will need to take place. Any changes would be made with the purpose of tailoring the marketing standards to fit the needs of the domestic farming sector.
I can confirm unequivocally that any use of the powers in Clause 35 would be covered by an existing duty to consult. As for the question about the bias towards consultation, I say that the Government’s preference is to consult the public on these matters. We would never rely solely on the views of representative bodies, and we will not bias our consultations towards one group.
Marketing standards are covered by food law, and a duty to consult is contained in Article 9 of regulation 178/2002. This regulation states that
“There shall be open and transparent public consultation, directly or through representative bodies, during the preparation, evaluation and revision of food law, except where the urgency of the matter does not allow it.”
This regulation will become retained EU law via the European Union (Withdrawal) Act 2018.
One of the principles of good law making is not to repeat law which already exists, in order to protect the coherence of the statute book. We are aware that there is an exemption for urgent situations in Article 9 of Regulation 178/2002 and I place on record that there are no plans to make any urgent amendments using the Clause 35 power. Urgent changes would usually be made under food law instead. There are specific regulations which cover food information and safety and there is no future intention to broaden the powers in Clause 35 to cover any such areas.
It is standard procedure that a summary of the responses to a consultation be published on GOV.UK within 12 weeks of it closing. Further to this, any statutory instruments made using the power will also be accompanied by an Explanatory Memorandum and a proportionate analysis or full regulatory impact assessment where the net direct cost to business is above £5 million. The Explanatory Memorandum will include details on the outcome of any consultations which have taken place. A more detailed analysis of the consultation outcome will also be published on the departmental website at the time the statutory instrument is laid before Parliament. The impact assessment will provide the rationale for government intervention, details of all the options considered and the expected cost and benefits, particularly for businesses. Clause 35 is subject to the affirmative procedure. Any statutory instruments which are introduced must be actively
approved by both Houses of Parliament. This procedure ensures that Parliament can properly scrutinise the statutory instrument before it comes into force.
Turning to Amendment 92A, I assure the noble and learned Lord, Lord Wallace of Tankerness, that we fully expect all 88 geographical indications from the UK to remain protected in the EU after 31 December this year. I understand the point made by the noble and learned Lord, and the noble Lord, Lord Foulkes, about the relevance of these to the Scottish economy, particularly whisky and smoked salmon. I am not sure I got the reference to potatoes. Geographical indications do not have to originate from EU member states to be protected under the EU’s geographical indications scheme. The EU currently protects products from many non-EU countries such as Japan and China.
If the EU wanted to remove UK geographical indications from its register, it would have to go through the burdensome process of changing its rules. Of course, the Government cannot guarantee what the EU will do, but it has given no indication whatever that it is considering such changes. It would be, in the words of the noble and learned Lord, “capricious” of the EU to try to do so.
If the UK does not secure a new trade agreement with the EU, we will, under the withdrawal agreement, continue to protect EU GIs in the UK. There would therefore be no incentive for the EU not to reciprocate. The noble and learned Lord, Lord Wallace, and the noble Lord, Lord Foulkes, asked me to be more specific on that point. I cannot, because we are in the process of negotiating these issues. The UK is definitely not seeking to loosen its GI rules. GIs are very important to the UK and the Government will establish robust GI schemes at the end of the transition period. All UK GIs will continue to be protected in the UK from 1 January 2021. The Government’s objective in trade negotiations with the EU will be to secure the best outcome for UK GIs and, obviously, the UK economy as a whole.
I hope that I have given enough reassurance, and that the noble Lord, Lord Holmes of Richmond, will feel able to withdraw his amendment.