My Lords, I declare my farming and land management interests as set out in the register.
Ensuring that our farmers and growers have the right tools to grow crops and raise livestock is essential for food security and the rural economy. This instrument makes amendments to legislation for plant protection products—or pesticides, as they are sometimes known—to extend and reinstate transitional arrangements put in place after EU exit. These measures allow, first, the import of seeds treated with pesticides, authorised in the EU but not here in Great Britain, and secondly, the import of certain pesticides from the EU that are identical to those authorised in Great Britain.
I first turn to treated seeds. Seed treatments protect seeds and young seedlings from a range of threats, and for many farmers are crucial to ensure good crop establishment. The arrangements for treated seed imports will end in December, meaning that if nothing changes, this import route will no longer be available next year or beyond. Right now, many important seed treatments come to Great Britain through this route. For example, 99% of British maize seeds are protected with at least one pesticide available through these arrangements. That is £550 million-worth of crop which, as the main feed crop for cattle and a key biogas fuel, can have important downstream impacts on food and energy costs if there are changes in quality and yield.
Although emergency authorisations have recently been granted for several of these products—recognising the threat to the crop and the lack of other means of control—this is a short-term solution that cannot provide farmers with certainty in coming years. This instrument will extend current arrangements for three and a half years, providing certainty for farmers, alongside time to develop more enduring solutions.
With any change to pesticide legislation, it is crucial to ensure that our high standards for public health and environmental protection are maintained. Only seed treatments authorised by at least one EU member state can be imported and used through these arrangements. This means they will have passed through a strict regulatory regime with similar high standards to Great Britain.
I turn to parallel imports. After EU exit, transitional arrangements meant that pesticides that were identical to products authorised in Great Britain could keep being imported for several years. These products tended to be cheaper than those on the British market, allowing farmers to reduce costs. Parallel imports ended in December last year, and farmers have until June 2024 to use the products currently in store. Noble Lords will be aware of the financial burdens farmers and growers currently face. Global events have significantly increased input costs, meaning that access to cost-effective pesticides is more important than ever for farmers already operating close to the margin.
This instrument will allow previous permit holders to re-apply for a parallel trade permit, lasting up to two years. Grace periods may be granted when that permit expires, allowing stocks to be sold for another six months, and stored and used for up to a year after that. This timing has been carefully considered. It will reduce financial burdens on farmers now, while ensuring sufficient regulatory oversight. To ensure compliance with our high standards, parallel products must be identical to their GB-authorised reference products. Through sampling and intelligence-led investigations, our regulator can identify products that are not up to these standards and will remove the permit if this is the case.
Across both parallel trade and treated seed imports, we are making the changes using powers in the retained EU law Act. Implementing these measures underscores our commitment to supporting hard-working farmers and delivering food security.
The measures are temporary, extending or reinstating post-EU exit transitional arrangements. They therefore do not constitute a significant change in policy. Rather, they provide farmers and manufacturers more time to adjust to the changes brought about by EU exit. For manufacturers, that is time to submit full applications for these important products and their alternatives. For farmers, it is time to adapt and integrate new products and methods into their practice. This will include the use of integrated pest management techniques, which we are already supporting through the sustainable farming incentive. The length of the extension has been designed to encourage this adjustment, so that manufacturers and farmers take the crucial steps needed to ensure that a permanent solution is reached, with our support.
I conclude by emphasising the importance of these measures. They will ensure that farmers and growers have the tools to grow healthy crops, feed the nation and produce our energy. The timely implementation of these measures is crucial so that they are in place before current arrangements end. I hope noble Lords will support these measures and their objectives, and I commend these draft regulations to the House.