Draft Wine (Amendment) Regulations 2021 The Committee consisted of
the following Members: Chair: Caroline Nokes Abbott, Ms Diane
(Hackney North and Stoke Newington) (Lab) Betts, Mr Clive
(Sheffield South East) (Lab) † Bottomley, Sir Peter (Worthing West)
(Con) † Bridgen, Andrew (North West Leicestershire) (Con) Cherry,
Joanna (Edinburgh South West) (SNP) † Glindon, Mary (North
Tyneside) (Lab) † Hoare, Simon (North Dorset) (Con)...Request free trial
Draft Wine (Amendment)
Regulations 2021
The Committee consisted of the following Members:
Chair:
(Hackney North and Stoke
Newington) (Lab)
(Sheffield South East)
(Lab)
† (Worthing West)
(Con)
† (North West Leicestershire)
(Con)
(Edinburgh South West)
(SNP)
† (North Tyneside) (Lab)
† (North Dorset) (Con)
† (Newport West) (Lab)
† (East Yorkshire) (Con)
† (Devizes) (Con)
† (Minister for Farming,
Fisheries and Food)
† Skidmore, Chris (Kingswood) (Con)
(Warley) (Lab)
(Wolverhampton North East)
(Con)
(Blackley and Broughton)
(Lab)
† (New Forest West)
(Con)
† (South Derbyshire)
(Con)
Seb Newman, Committee Clerk
† attended the Committee
Second Delegated Legislation Committee
Monday 13 December 2021
[Caroline Nokes in the Chair]
Draft Wine (Amendment) Regulations 2021
16:30:00
The Chair
Before we begin, I remind Members that, in line with guidance
from the Government and the House of Commons Commission, they are
expected to wear face coverings and to maintain distancing, so
far as is possible, which I see you are all doing beautifully. I
remind Members that they are asked by the House to have a covid
lateral flow test twice a week if they are coming on to the
estate. That can be done in the testing centre in the House, or
at home. Please could Members email their speaking notes to
Hansardnotes@parliament.uk?
16:31:00
The Minister for Farming, Fisheries and Food ()
I beg to move,
That the Committee has considered the draft Wine (Amendment)
Regulations 2021.
The regulations, which were laid before the House on 23 November,
remove the requirement for wine imported to Great Britain to be
accompanied by a VI-1 certificate. This statutory instrument is
very good news; Members who arrived at the Committee early have
heard that I am inordinately excited about it. It is part of the
bonfire of Brexit red tape. It will help support an industry
worth over £1 billion a year, and will help the UK to remain a
global hub for the wine trade. If we agree to the SI, it is not
only EU wine that will be allowed into the country without a VI-1
certificate; so will wine from the rest of world, including wine
from Australia, Chile, New Zealand and the USA. These wines
represent about half the wines on our shelves. This is a really
positive step forward, and I thank the wine trade and Members of
this House for working with us on this.
(East Yorkshire) (Con)
The Minister is, in effect, proposing to reduce red tape. Should
that not lower the price of wine?
I was anticipating that question. That is probably something for
the wine trade to think about internally. Although the wine trade
will find the change beneficial, I suspect that the price of a
bottle of wine will not change all that much—but we live in
hope.
The SI will make changes to retained EU law to ensure that wines
produced in GB are subject to appropriate supervision, inspection
and authentication checks. It also introduces provisions to
ensure that the lot code arrangements between GB and the EU for
wines continue to operate. Lot codes are an important tool for
tracing wine products prepared or packaged under the same
conditions.
Finally, the regulations will implement article 5 of annex 15 to
the trade and co-operation agreement, concerning transitional
arrangements. There will be a two-year grace period from 1
May to allow wine stocks to be run down at producer and wholesale
level; stores have until stock runs out to comply.
We have a flourishing wine and viticulture sector in this
country. Through this instrument, the Government are making
regulatory changes that support wine importers, bottling plants,
and exporters across the country, from Accolade Wines in
Avonmouth and Kingsland Drinks in Manchester to Greencroft
Bottling in County Durham. We are removing a burdensome technical
barrier to trade. The Department will continue to work with the
industry and across Government to make sure that we have the best
possible regulatory regime for wine.
16:33:00
(Newport West) (Lab)
It is a pleasure to serve under your chairmanship, Ms Nokes. I am
delighted to speak from the Front Bench as the shadow Minister
for Agri-innovation and Climate Adaptation. [Interruption.] Yes.
Following the recent reshuffle of Labour’s Front Benchers, I have
a slightly different brief, but I remain focused on holding the
Government to account for protecting our environment and our
planet. I bring the apologies of my hon. Friend the Member for
Cambridge (), the shadow Food, Farming,
Fisheries and Rural Affairs Minister, who is in Westminster Hall
this evening, and so could not lead for the Opposition on the
regulations. I declare an interest: I have been known to have the
odd glass of wine after a long day in this House, so I speak with
some authority on the subject.
I am grateful to the Minister for taking the time to explain the
purpose of the statutory instrument. The regulations will ensure
that the United Kingdom meets its legal obligations to implement
the provisions in annex 15 to the trade and co-operation
agreement, which deals with the trade in wine. The regulations
will amend rules concerning lot marking and the import and export
certification arrangements for wine products, as well as putting
in place transitional marketing arrangements. These changes are
very welcome but long overdue. Labour Members will not oppose
them, not least because many of us, including my tenacious hon.
Friend the Member for Cambridge, spent much of the early part of
this year arguing that the Government should show some leadership
and get rid of that much-hated VI-1 form.
It may be that celebrations are in order, and that we can pop the
cork on the bottle of progress and common sense, but before we
get carried away, remember that there is so much more to do. I
gently remind the House of the factors in and concerns associated
with the debate and the issues covered by the SI. The Government
initially chose to roll over EU rules and regulations on wine
imports. Those rules required detailed import certification—the
VI-1 form, which we have heard about—in addition to standard
customs paperwork for all wine imports from third countries. The
form includes details such as how strong a wine is, what grape it
is, and how many containers are being sent. For each type of wine
in a consignment, all those details must be listed, and the form
requires a stamp from customs officials. That presents a
significant logistical challenge and cost burden for wine
importers.
I accept that a slightly simpler version of the VI-1 form was
negotiated in the UK-EU trade and co-operation agreement for wine
imports from the EU, but that form still required a customs
stamp, and that has delayed transit through ports and placed a
significant burden on our importers. The British wine industry
was at a loss to understand why Ministers took that path. I
acknowledge the work of the Wine and Spirit Trade Association,
which represents more than 300 companies that produce, import,
export, transport and sell wine and spirits in the UK. WSTA
members include the major retailers on our high streets, brand
owners, wholesalers, fine wine and spirit specialists, and
logistics and bottling companies. The association mounted a
strong campaign that has drawn attention to the problems faced by
so many in the sector, and I thank it for its work.
Leaving the EU made a significant difference, because in reality,
the EU’s import document is a technical barrier that protects its
wine industry. Whatever our views on our departure from the EU,
it made very little sense for the United Kingdom—a net importer
of wine—to maintain rules designed to disadvantage our imports.
We import over 99% of the wine that we consume, and around half
of those imports are from the EU.
I would like to take a moment to acknowledge the British wine
industry and will focus on the Welsh wine sector; as I am the
Member for Newport West, I trust that will come as no surprise. I
draw colleagues’ attention to an October 2021 article in
WalesOnline by Portia Jones, “11 beautiful Welsh vineyards that
offer so much more than just fine wine”. The wines mentioned have
won plaudits all around the world. I will move on swiftly,
because I can see that the Chair is beginning to get a bit
anxious.
(North Dorset) (Con)
Name them!
I will name them if the Chair—
The Chair
I am not sure that that would be in order.
I would love to name them, but sadly I am not permitted to, after
the Chair’s wise words. We know about these destinations in
Wales, but of course we all want the wine industry to flourish
and grow for the sake of all the great English and Welsh wines.
However, we are a significant importer of wines, sparkling and
non-sparkling. The Minister will know that we also have a vibrant
export industry, which is important, as are the regulations.
The Wine and Spirit Trade Association has been clear: as far as
it can tell, the additional bureaucracy was entirely unnecessary.
There was no customs requirement for it, and there were no safety
issues involved. Importing 25,000 litres of South African
Chardonnay, Australian Shiraz or Kiwi Sauvignon Blanc in a
flexitank with one VI-1 form is much less burdensome and
significantly cheaper than importing 20 wines in bottles from the
EU, which requires 20 additional pieces of documentation.
We welcome the clarification provided on the position of wine
produced before the agreement was put in place. On the legal
marketing of these products, we note that wine is an unusual
product, in that it has a long shelf life, and its value can
increase over time. What happens with the two-year transition
period that the Minister mentioned? Will she explain what happens
after that? Given the long shelf life of the wine in our cellars,
fridges, shops and kitchens, is that period long enough? What are
the reasons for not having a longer, more sustainable period?
We also have questions relating to the impact on Northern
Ireland, which is referred to in paragraph 7.8 of the explanatory
memorandum. All too often, Northern Ireland is an afterthought
for the Government, but not for us on the Opposition Benches.
Will the Minister confirm that the VI-1 form—and all the problems
that it brings, which I outlined—will continue to apply in
Northern Ireland? We are not quite sure what is happening in
Northern Ireland, so I would be grateful if the Minister could
address that in detail. If that is not possible, perhaps she
could guarantee to do so in writing.
I would like to acknowledge wine producers from across the United
Kingdom; they, like all of us, have had a tough two years. Our
economy is fuelled by business women and men who go above and
beyond and show the best of British. I ask the Minister to join
me in wishing all British wine producers a happy and safe
Christmas, and I thank them for all they do. We do not oppose
these changes, but Labour Members will continue to be vigilant.
We will toast the wine sector, and we will always stand up for
wine producers and consumers in all parts of our United
Kingdom.
16:40:00
(Worthing West) (Con)
It is a delight to follow the hon. Lady, who I think is the only
one here who has been elected twice in the last two years. For
those who want to follow the Welsh vineyards trail, the history
of at least 10 of the 11 Welsh vineyards goes back 150 years. I
pay tribute to Welsh whisky, which I have enjoyed.
I thank the Minister and her colleagues for responding to the
point, made by Members from across this House, that the VI-1 form
is not necessary. I pay tribute to the Wine and Spirits Trade
Association, which briefed a number of us, and had one or two
gatherings in the days when a gathering could or could not be a
party; to the English wine producers; and to the Welsh and the
Scottish—or I would, if any Scottish Members were here—for their
contribution to encouraging Government to find a way forward that
is sensible, and in which there are no losers and many
winners.
Will the Minister say—it would be a kindness if she could write
afterwards, if she does not know the answer now—when it will be
possible to sell fizzy wine or champagne in a pint bottle, which
was illegal during our membership of the EU? Many argue that
sharing a pint with a friend or a spouse is better than sharing a
half-bottle, which is not enough, or a full bottle, which is
often a bit too much.
16:42:00
It is a great pleasure to respond to the hon. Member for Newport
West, and to my hon. Friend the Member for Worthing West, who is
co-chair of the all-party parliamentary group on wine and
spirits, which has been extremely helpful to us in formulating
this policy. I share his liking for Welsh whisky; there is also
Isle of Man whisky, which is really delicious. I have heard
before the point that he raises about fizzy wine. I am not sure
that that is entirely in scope of the regulations, and I will, if
I may, write to him about that, because there are other
Departments involved in that conversation.
The hon. Member for Newport West raised various issues, including
the transitional period, which I dealt with earlier. The
transitional period will apply until the bottle is sold or drunk,
so there is no end to that period in terms of retail sales. The
SI does not apply in Northern Ireland and will not result in any
changes to certification of GB-produced wine sent to Northern
Ireland. Northern Ireland will obviously continue to follow the
rules for VI-1 certification set out in the protocol. Most
movements of GB wine to NI have fallen within the scheme for
temporary agri-food movements to Northern Ireland. Movements of
GB wine to NI are very small; they may often fall below the 100
litre de minimis requirements for a VI-1 certificate set out in
EU law.
I remind Members of the positive changes in the instrument. The
regulatory changes that we are introducing enable us to meet our
international obligations and implement annex 15 of the TCA. We
have listened to the wine trade and Members of this House and
removed the requirement for VI-1s for imports from not only the
EU, but other nations from across the world that produce
excellent wine.
A number of people may not know what the VI-1 form is. If they
put “VI-1 form” into a search engine, fortunately the first
result that comes up is the Government site, which is up to date;
but the third result, using the search engine that I use, is the
Food Standards Agency, which might be encouraged to update its
information, because it is a year old and does not take account
of these welcome changes.
When we have made these changes—we are possibly jumping the gun a
little bit—I am sure that we can pass that on. I ask hon. Members
to support the SI, and I hope that the wine trade will continue
to flow well this Christmas.
Question put and agreed to.
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