My Lords, as we said in Committee:
“Part 6 of the Bill allows regulations to be made to ensure compliance with the United Kingdom’s obligations under the WTO Agreement on Agriculture”,—[Official Report, 28/7/20; col. 130.]
particularly those related to domestic support. The regulations will set out procedures and arrangements to ensure that the whole of the UK continues to comply with existing obligations under this international treaty.
Amendment 92B seeks to impose a duty on the Secretary of State to consult relevant stakeholders when making regulations under Clause 40. Relevant stakeholders in this instance are the devolved Administrations, since it is they who will be required to abide by spending limits and work together with the UK Government to classify and notify domestic support at the WTO.
We do not anticipate any direct impact on farmers because the devolved Administrations will retain the freedom to design and implement their own domestic support policies within the overall spending limits. As I outlined in Committee, consultation is already well advanced. In answer to the question from the noble Lord, Lord Foulkes, Defra Ministries work very closely with their DA counterparts through a regular interim ministerial group on agriculture, which I believe is the same body that he referred to earlier. Government officials work closely with all their counterparts from all Administrations to draft the regulations under these powers. I can again report that good progress has been made and that the views of officials from the devolved Administrations have been taken into consideration throughout the whole of the drafting process. In terms of Scottish consent, we have received confirmation that the Scottish Parliament has recommended consent for provisions in the scope of the LCM procedure.
The Government fully recognise the devolved status of agriculture. Indeed, Clause 40(1) is drafted in such a way as to specify that regulations can be made only for the purpose of ensuring compliance with the WTO
Agreement on Agriculture. It is this narrow function of ensuring overall UK compliance with an international treaty that remains reserved for the UK Government and that Part 6 addresses. The UK Government consult the devolved Administrations and all relevant stakeholders appropriately, but it is not efficient or constitutionally proper for the UK Government to be bound to consult on all matters that are reserved.
The noble Baroness, Lady Wilcox, asked what functions are envisaged under these powers. In order to ensure that the UK remains in compliance with obligations under the WTO Agreement on Agriculture, it will be necessary to collect data on agricultural support schemes from the four nations of the UK in order to classify and report this information at the WTO. Additionally, spending limits will be placed on each country of the UK to ensure that the UK as a whole honours a commitment to limit spending on certain types of trade-distorting support.
Where reserved matters overlap or intercept with devolved areas of competence, the UK Government of course recognise that the devolved Administrations will have an interest. The Government therefore work with those Administrations, as we are currently doing, to accommodate their comments and concerns when we can, to the satisfaction of all those involved. I am pleased that Defra officials have particularly good relations with their counterparts in the devolved Administrations.
We already have a bilateral agreement in place with the Welsh Government on the making and operation of regulations under Part 6, and we have offered to extend this agreement to the Scottish Government and DAERA ministers in Northern Ireland. Additionally, my honourable friend the farming Minister, Victoria Prentis, placed on record in the other place a commitment to consult with the devolved Administrations on the making of regulations under these powers.
Lastly, I understood that the noble Baroness, Lady Scott, was concerned about how these regulations impacted directly on farmers. These powers allow for a framework of regulations to be made for ensuring UK-wide compliance with existing international obligations. Within this framework and within the boundaries of existing WTO agreements that seek to limit the use of trade-distorting financial support to agriculture, each Administration will still be able to design their own schemes to deliver their policies on supporting farmers and managing the farmed environment.
I hope that I have given sufficient reassurance and that the noble Lord, Lord Foulkes, will feel able to withdraw his amendment.