My Lords, we have spoken previously about similar reforms. There was an SI in 2021, for example, and during that debate we on these Benches said that it was important that the Government work with, rather than against, the industry as they continued to make the reforms. So, these regulations are welcome, and it is good that the Minister in his opening remarks confirmed that the department has been working constructively with the industry. We note that the industry has been very supportive of the regulations before us today. Clearly, that support is good and welcome, and there are many positives in what the regulations lay out.
However, the Secondary Legislation Scrutiny Committee laid out pretty lengthy concerns, which need addressing. They were largely about the operation of the internal market and, as the noble Baroness, Lady McIntosh of Pickering, mentioned, in particular the Welsh and Scottish Governments, who signalled opposition to the changes. I note that the Minister talked about moving forward with the Welsh Government, but the noble Baroness made important points about the situation regarding Scotland, so I would be interested to hear his response to those concerns.
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The committee’s report also referred to the potential negative impact on consumer confidence, and in particular labelling. The report says that
“it will be important that all products are labelled clearly so that consumers can make an informed choice of what they are buying”.
Can the Minister clarify exactly what the labelling requirements will be, to ensure consumer confidence? The report also expressed concerns about the timing of the reforms, given that the Government are undertaking a broader review of wine regulations with a view to consolidating them in early 2025. Again, the noble Baroness mentioned further SIs coming forward, so it would be helpful to have a better understanding of the timing.
I also draw attention to the consultation section of the Explanatory Memorandum. Interestingly, it does
not cite specific details but is quite broad and vague. For example, it says that of the 96 responses to the consultation,
“many … were supportive of the changes”.
It also contains a number of very vague statements, including:
“Changes to importer-labelling requirements received strong support”,
when 36 respondents said it would have a positive impact, but 24 said it would have a negative one.
Paragraph 10.3 is on allowing wines
“to be registered as Protected Designation of Origin … where those wines are produced from hybrid-grape varieties”.
That apparently “received solid support”, but the consultation document notes that some responses indicated there would be a risk of lower-quality wine damaging the reputation of domestic wines. That is also in the report from the Secondary Legislation Scrutiny Committee.
Paragraph 10.4 states:
“The production and sale of piquette received positive responses from respondents representing single businesses in the industry who intend to make use of the change. Other respondents noted that it would have no impact or that they would not intend to make use of the change”.
In fact, of the 85 organisations that responded, 32 anticipated a negative impact and only 18 a positive one.
Paragraph 10.5 states:
“The proposal to allow for the blending of imported wine received a broad range of responses. Many respondents indicated that they felt positively about the change and intend to make use of it”.
However, it is all a bit vague and can be a little misleading.
I wonder what the Government are doing to address the concerns that emerged from the consultation. Although it was positive overall, there were sufficient negative responses and issues raised for the Government to need to give a more detailed response. I will be interested to hear what the Minister has to say about that.