Draft Veterinary Surgeons and Animal Welfare (Amendment) (EU Exit) Regulations 2019

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1 HOUSE OF LORDS Secondary Legislation Scrutiny Committee (Sub-Committee B) 13th Report of Session Proposed Negative Statutory Instruments under the European Union (Withdrawal) Act 2018 Draft Veterinary Surgeons and Animal Welfare (Amendment) (EU Exit) Regulations 2019 Includes 4 Information Paragraphs on 6 Instruments Ordered to be printed 22 January 2019 and published 24 January 2019 Published by the Authority of the House of Lords HL Paper 268

2 Secondary Legislation Scrutiny Committee (Sub-Committee B) The Committee s terms of reference, as amended on 11 July 2018, are set out on the website but are, broadly: To report on draft instruments and memoranda laid before Parliament under sections 8, 9 and 23(1) of the European Withdrawal Act And, to scrutinise (a) every instrument (whether or not a statutory instrument), or draft of an instrument, which is laid before each House of Parliament and upon which proceedings may be, or might have been, taken in either House of Parliament under an Act of Parliament; (b) every proposal which is in the form of a draft of such an instrument and is laid before each House of Parliament under an Act of Parliament, with a view to determining whether or not the special attention of the House should be drawn to it on any of the grounds specified in the terms of reference. The Committee may also consider such other general matters relating to the effective scrutiny of secondary legislation as the Committee considers appropriate, except matters within the orders of reference of the Joint Committee on Statutory Instruments. Members Rt Hon. Lord Cunningham of Felling (Chairman) Rt Hon. Lord Janvrin Lord Sherbourne of Didsbury Baroness Donaghy Lord Kirkwood of Kirkhope Rt Hon. Lord Rooker Lord Goddard of Stockport Baroness O Loan Baroness Watkins of Tavistock Lord Hodgson of Astley Abbotts Baroness Redfern Registered interests Information about interests of Committee Members can be found in the last Appendix to this report. Publications The Sub-Committee s Reports are published on the internet at seclegbpublications The National Archives publish statutory instruments with a plain English explanatory memorandum on the internet at Committee Staff The staff of the Committee are Christine Salmon Percival (Clerk), Paul Bristow (Adviser), Nadine McNally (Adviser), Philipp Mende (Adviser), Jane White (Adviser), Louise Andrews (Committee Assistant) and Ben Dunleavy (Committee Assistant). Information and Contacts Any query about the Committee or its work, or opinions on any new item of secondary legislation, should be directed to the Clerk to the Secondary Legislation Scrutiny Committee, Legislation Office, House of Lords, London SW1A 0PW. The telephone number is and the address is hlseclegscrutiny@parliament.uk.proposed Negative Statutory Instruments under the European Union (Withdrawal) Act 2018

3 Thirteenth Report PROPOSED NEGATIVE STATUTORY INSTRUMENTS UNDER THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 Proposed Negative Statutory Instruments about which no recommendation to upgrade is made Environmental Protection (Amendment) (Northern Ireland) (EU Exit) Regulations 2019

4 2 SECONDARY LEGISLATION SCRUTINY COMMITTEE (SUB-COMMITTEE B) INSTRUMENTS DRAWN TO THE SPECIAL ATTENTION OF THE HOUSE Draft Veterinary Surgeons and Animal Welfare (Amendment) (EU Exit) Regulations 2019 Date laid: 13 December 2018 Parliamentary procedure: affirmative These draft Regulations propose to end the preferential access that veterinary surgeons with qualifications from a European Economic Area (EEA) country currently have when registering to practise in the UK. Given the importance of EEA veterinary surgeons for the UK, including in public health areas such as disease control and the safeguarding of animal health and welfare, the House may wish to explore further the approach the Government have taken with this instrument and the potential impact it may have. We draw these Regulations to the special attention of the House on the ground that they give rise to issues of public policy likely to be of interest to the House. 1. The Department for Environment, Food and Rural Affairs (Defra) has laid these draft regulations with an Explanatory Memorandum (EM) to address deficiencies arising from the UK s withdrawal from the EU. 2. The key changes proposed in the draft Regulations are amendments to the Veterinary Surgeons Act Defra explains in the EM that, under current EU-level arrangements on the free movement of persons with professional qualifications, veterinary surgeons with qualifications from a country in the European Economic Area (EEA) enjoy more favourable access to practise in the UK than those with qualifications from the rest of the world Defra says that when the UK leaves the EU, the EU will no longer recognise UK qualifications, and that in those circumstances, it will no longer be appropriate for the UK to provide more favourable treatment to veterinary surgeons with EEA qualifications. While people with EEA qualifications will still be able to register to practise in the UK, they will need to meet the same registration conditions as specified by the Royal College of Veterinary Surgeons (RCVS) for people with third country qualifications. A key element of this registration requirement is a degree from an accredited veterinary school. 4. Defra emphasises that the proposed new approach will not affect the rights of those veterinary surgeons who are already registered to practise in the UK, and that transitional arrangements will ensure that those who are in the process of registering with the RCVS on exit day are entitled to have their application (and any related appeal) considered under the rules as they applied before exit day. 5. In addition to this significant change, the draft Regulations also propose a minor amendment to the Animal Welfare Act 2006 to ensure that, where a power of entry currently exists, an inspector can continue to enter premises 1 In the UK, the Veterinary Surgeons Act 1966, together with the European Recognition of Professional Qualifications Regulations 2015 (SI 2015/2059), transposed Directives 2005/36EC and 2013/55/EU on the mutual recognition of professional qualification in relation to veterinary surgeons.

5 SECONDARY LEGISLATION SCRUTINY COMMITTEE (SUB-COMMITTEE B) 3 to assess compliance with regulations under section 12 of the Act which relate to the promotion of animal welfare. This power of entry is not to apply in respect of any secondary legislation made under section 12 of the Act after exit day. Impact 6. In the EM, Defra states that it does not expect the draft Regulations to have any significant impact. The Committee notes, however, that veterinary surgeons with EU qualifications play an important role in the UK veterinary sector. The RCVS said in a position statement in September 2018 that about 1,000 vets with EU qualifications join the UK Register every year, making up around half of the annual intake. 2 The RCVS also said that these EU graduates play a key role across all veterinary sectors including clinical practice, academia, research and, in particular, public health, where they account for about 95% of all veterinary surgeons. 7. According to Government Veterinary Services, veterinary surgeons provide an important service to the public, from disease control to safeguarding animal health and welfare. 3 We asked Defra whether it had consulted with the RCVS about the impact of the proposed changes on the veterinary sector in the UK, especially in relation to public health. The Department told us that: We have had informal discussions with RCVS about the impact of these proposals and RCVS were content with the proposed approach as they estimate that only a small proportion of EEA degrees will be affected by these changes, and that a majority of those with EEA degrees wishing to come to the UK after EU exit will continue to have their degrees recognised by RCVS. Only a small number of applicants will need to sit an RCVS statutory exam after the EU exit. RCVS will use an accreditation system, European Association of Establishment for Veterinary Education (EAEVE) that brings together veterinary educational experts from across Europe to evaluate the quality of veterinary degrees. Veterinary surgeons with degrees from accredited veterinary schools will be able to register with RCVS without sitting a professional examination. Those vets who hold a degree from a non-accredited school will need to sit a professional veterinary exam, administered by RCVS. Holders of EEA degrees who are already on the RCVS register or those who apply before exit day will be unaffected by the proposed changes. 8. Defra also commented on the role veterinary surgeons play in issuing export health certificates for products of animal origin such as meat, dairy, processed products and animal by-products. It is expected that the need for such certificates will increase significantly if the UK has to certify exports of products of animal origin to the EU after exit. The Department told us that: DEFRA and APHA [Animal and Plant Health Agency] are putting plans in place to meet the export certification requirements post exit. 2 See RCVS, RCVS issues statement regarding no-deal Brexit (27 September 2018): uk/news-and-views/news/rcvs-issues-statement-regarding-no-deal-brexit/ [accessed 17 Jan 2019] 3 See HM Government, Government Veterinary Services: civil-service-government-veterinary-services/about [accessed 17 Jan 2019].

6 4 SECONDARY LEGISLATION SCRUTINY COMMITTEE (SUB-COMMITTEE B) At the same time, a new paraprofessional role is being introduced, Certification Support Officers (CSO), designed to support official vets. CSOs will work under the direction of the official vet who can judge which tasks can be delegated. Ultimately, the official vet must be satisfied that the required conditions have been met before signing the certificate. Taking into consideration all the above factors, and the opportunity for the veterinary service providers to use CSOs, we estimate the market should be able to meet the demand. 9. We asked the Department for further information about the introduction of the CSOs and whether legislation will be required to underpin this new role. Defra explained that: CSOs will be authorised to perform administrative tasks which assist official veterinarians. None of these tasks will include the performance of veterinary duties and so their role does not require legislation. We launched an online training programme just before Christmas. The training takes a total of six hours culminating in an exam and, on successful completion, the CSO is authorised by the Animal and Plant Health Agency which takes a maximum of 10 days. We have not arrived at any estimates for how many CSOs will be required as the market for certification services will employ CSOs and they are best placed to determine how to meet the demand, how best to use existing official veterinary capacity and whether to recruit new official vets if we leave the EU without a deal. We will continue to engage the industry to ensure that we are well prepared to respond to increased demand for export health certificates. It is feasible that CSOs may be in place as early as February, however, we would anticipate a surge in training and CSO posts as we draw closer to 29 March and the prospect of leaving the EU without a deal. Conclusions 10. This instrument proposes to end the preferential access that veterinary surgeons with EEA qualifications currently have when seeking to practise in the UK. The significant change is proposed in the context of the ending of the mutual recognition of qualifications following the UK s withdrawal from the EU. The Committee notes the assurances provided by the Department regarding the new registration requirements for EEA veterinary surgeons and the introduction of the new role of CSOs who are to provide support in relation to export health certificates. 11. Given the importance of EEA-qualified veterinary surgeons for the UK, especially in public health areas such as disease control and the safeguarding of animal health and welfare, the House may nevertheless wish to explore further the approach the Government have taken with this instrument and the potential impact of the proposed changes, especially in relation to the future availability of veterinary surgeons for public health roles. We therefore draw the draft Regulations to the special attention of the House, on the ground that they give rise to issues of public policy likely to be of interest to the House.

7 SECONDARY LEGISLATION SCRUTINY COMMITTEE (SUB-COMMITTEE B) 5 INSTRUMENTS OF INTEREST Draft Companies, Limited Liability Partnerships and Partnerships (Amendment etc.) (EU Exit) Regulations The purpose of these draft Regulations is to ensure that the UK s company law framework can operate effectively after a possible no deal exit from the EU. While the Department for Business, Energy and Industrial Strategy (BEIS) says that the instrument aims to preserve the company law framework unchanged as far as possible and appropriate, the information provided in the Explanatory Memorandum (EM) suggests that some of the proposed changes appear to be more significant. A key proposal in the draft Regulations is to end the preferential treatment currently afforded in some aspects of UK company law to businesses from the European Economic Area (EEA). Amongst other changes, the instrument proposes to revoke provisions that enable the current regime for mergers between UK companies and companies in EEA countries. BEIS estimates that around 50 cross-border mergers are carried out under this regime every year. Other proposed changes would involve a loss of voting rights and a loss of the ability to make distributions for certain EEA businesses after a one-year transition period following exit. Despite the significance of these proposals, the EM provides only limited information on the expected impact of these changes on shareholders and other relevant stakeholders. The EM also says that to minimise sensitivities ahead of negotiations with the EU, only the Law Society was consulted. The Committee recommended an upgrade of these Regulations to the affirmative procedure when they were initially laid before Parliament as a proposed negative instrument, because of the significance of the changes and the lack of information provided on their expected impact. 4 The Committee remains concerned that the Department has not provided more extensive information to assist Parliament in its scrutiny of these draft Regulations. Draft Farriers and Animal Health (Amendment) (EU Exit) Regulations This instrument proposes to end the preferential treatment of farriers who have a professional qualification from a country in the European Economic Area (EEA) and wish to work in the UK. Under the proposals, EEA qualified farriers will be subject to the same registration conditions as farriers from the rest of the world after the UK s withdrawal from the UK. The proposal does not affect the rights of those EEA farriers already registered to practise in the UK, and transitional arrangements ensure that those who are in the process of registering with the Farriers Registration Council (FRC) on exit day will have their application (and any related appeal) considered under the rules as they applied before exit day. The Department for Environment, Food and Rural Affairs says that after the UK leaves the EU, the EU will no longer recognise UK qualifications, and that it would not be appropriate to provide more favourable treatment to EEA countries unilaterally. The Department has told us it expects the impact of the changes to be negligible: there is not a shortfall of farriers, with only 11 farriers with EEA qualifications registered by the FRC to practise in Great Britain, out of a total of around 2,900 farriers. This is in contrast to veterinary surgeons where the Department 4 6th Report, Session (HL Paper 236)

8 6 SECONDARY LEGISLATION SCRUTINY COMMITTEE (SUB-COMMITTEE B) is also ending the mutual recognition of qualifications, but where there is a greater dependency on professionals from the EU. Draft Plant Health (Amendment) (England) (EU Exit) Regulations 2019 Draft Plant Health (EU Exit) Regulations The purpose of this set of two draft Regulations is to ensure that retained EU plant health legislation in England, which implements current EU protective measures against the introduction and spread of organisms harmful to plants or plant products, remains effective in a possible no deal exit from the EU. According to the Department for Environment, Food and Rural Affairs (Defra), the draft Plant Health (EU Exit) Regulations 2019 replicate the EU s current common list of regulated pests and plant material for England, Wales and Northern Ireland, with equivalent legislation being taken forward separately in Scotland. The purpose is to facilitate a UK internal market for regulated plant material while protecting biosecurity. The draft Regulations also propose to replace the current concept of EU Protected Zones for areas that are free from plant pests and where imported plant material must meet higher plant health standards, with the World Trade Organisation s similar concept of Pest Free Areas. The draft Plant Health (Amendment) (England) (EU Exit) Regulations 2019 set out the arrangements for import controls of plants and plant products from the EU and Switzerland which will replace the current EU plant passport regime after exit. Defra explains that, as required under the International Plant Protection Convention, plant materials entering the UK from the EU will require a phytosanitary certificate issued in the country of export. To maintain the flow of goods, however, they will not be physically checked and stopped at the border, on the understanding that biosecurity risks will not change immediately on exit. Instead, businesses will need to pre-notify Defra of any imports and documentary and identity checks will be carried out remotely and a fee will be charged. Businesses wishing to import regulated plant material from third countries via the EU after exit will also need to pre-notify arrival of such material to Defra and, in addition, facilitate physical plant health checks. These checks will take place at their own premises, rather than at ports, to enable frictionless trade. The premises will need to be authorised by Defra and provide specified inspection facilities. We have asked the Department for additional information about the new authorisation process which we are publishing at Appendix 1. Universal Credit (Restriction on Amounts for Children and Qualifying Young Persons) (Transitional Provisions) Amendment Regulations 2019 (SI 2019/27) Universal Credit (Restriction on Amounts for Children and Qualifying Young Persons) (Transitional Provisions) (Amendment) Regulations (Northern Ireland) 2019 (SR 2019/3) 15. These Regulations implement the first of the modifications to Universal Credit announced by the Department for Work and Pensions on 11 January In amending earlier instruments, 6 they alter transitional provisions which would have meant that claims for Universal Credit made after 1 5 See Written Statement, 11 January 2019, HLWS Universal Credit (Transitional Provisions) Regulations 2014 (SI 2014/1230) and the Universal Credit Regulations 2013 (SI 2013/376).

9 SECONDARY LEGISLATION SCRUTINY COMMITTEE (SUB-COMMITTEE B) 7 February 2019 would only have received payment for a maximum of two children. The effect of the amendment made by these Regulations is that families with three or more children will continue to receive an additional amount in Universal Credit for all children born before 6 April The limit will now only apply to those households claiming Universal Credit which had a third or subsequent child after the limit came into effect. The cost of this policy change is estimated to be 250 million over the next five years and an estimated 15,000 families per year will benefit from the change. 7 7 Universal Credit (Restriction on Amounts for Children and Qualifying Young Persons) (Transitional Provisions) (Amendment) Regulations (Northern Ireland) 2019 make the same change in Northern Ireland (SR 2019/3).

10 8 SECONDARY LEGISLATION SCRUTINY COMMITTEE (SUB-COMMITTEE B) INSTRUMENTS NOT DRAWN TO THE SPECIAL ATTENTION OF THE HOUSE Draft instruments subject to affirmative approval Companies, Limited Liability Partnerships and Partnerships (Amendment etc.) (EU Exit) Regulations 2019 Environment and Wildlife (Legislative Functions) (EU Exit) Regulations 2019 Farriers and Animal Health (Amendment) (EU Exit) Regulations 2019 Plant Health (EU Exit) Regulations 2019 Plant Health (Amendment) (England) (EU Exit) Regulations 2019 Instruments subject to annulment SI 2018/1399 SI 2019/5 SI 2019/6 SI 2019/24 SI 2019/27 SR 2019/3 Marine Environment (Amendment) (EU Exit) Regulations 2018 Weights and Measures etc. (Miscellaneous) (Amendment) Regulations 2019 Protocol 1 to the EEA Agreement (Amendment) (EU Exit) Regulations 2019 Ionising Radiation (Environment and Public Protection) (Miscellaneous Amendments) (EU Exit) Regulations 2019 Universal Credit (Restrictions on Amounts for Children and Qualifying Young Persons) (Transitional Provisions) Amendment Regulations 2019 Universal Credit (Restriction on Amounts for Children and Qualifying Young Persons) (Transitional Provisions) (Amendment) Regulations (Northern Ireland) 2019

11 SECONDARY LEGISLATION SCRUTINY COMMITTEE (SUB-COMMITTEE B) 9 Appendix 1: DRAFT PLANT HEALTH (AMENDMENT) (ENGLAND) (EU EXIT) REGULATIONS Additional information from the Department for Environment, Food and Rural Affairs (Defra) Q1: Paragraph 2.8 of the Explanatory Memorandum (EM) refers to the checks of third country regulated goods at businesses own premises and the need for Defra to authorise these premises. What is involved in this authorisation process and how burdensome is it for businesses? Are there fees involved in authorising premises or other costs involved in establishing premises that are suitable for these checks? A1: Businesses will need to complete an application form and submit it to the Animal and Plant Health Agency (APHA). APHA inspectors will visit the premises and assess their suitability based on a specification and guidance published at end The requirements for trade premises and the application process have been designed to minimise burdens on businesses whilst protecting plant health biosecurity. It is not anticipated that visits to inspect and authorise trade premises will be lengthy, although this will vary depending on the business. Defra is picking up the cost of the inspections to authorise the premises visit up until end March We expect to begin charging businesses for such inspections during 2019/20 and will set the charge to recover the costs incurred (this is consistent with our approach to charging for other plant health services). The hourly inspection rates for similar inspection services is (April 2019 charge). Q2: Have the new authorisation process and the March deadline for free authorisations been communicated to relevant businesses? Have the inspections already started? If so, how many premises have been inspected and is there an estimate on how many premises will need to be inspected and authorised? When does the Department expect to start charging for inspections and will this require further (secondary) legislation? A2: Our guidance sets out that an annual charge will apply for audit inspections of authorised premises. We are considering the fees for initial authorisation and the timescale for their introduction, and will provide further information to businesses in due course. Introduction of fees for the authorisation of these premises and annual audits will require further secondary legislation. The application form for registering trade premises as Places of First Arrival (PoFAs) was made available before Christmas, and businesses are now able to apply. We estimate that a relatively low number of businesses will require their premises to be authorised in a no deal scenario. Q3: Paragraph 12.9 of the EM says that the costs of third country checks and certificates are simply a transfer of what previously took place in the EU. Does this mean that UK importers already have to pay for such checks and certificates under the current arrangements? A3: Yes, UK businesses importing regulated plant material from third countries already pay for such checks under current arrangements. Currently, the majority of such checks are carried out in the EU, and charged for by the relevant NPPO. Q4: Paragraph 12.7 of the EM refers to the additional fee on importers for documentary and identity checks. What will be the level of this fee? A4: APHA currently charges 9.71 for the documentary and identity check for each consignment of imported (regulated) plants. 9 January 2019

12 10 SECONDARY LEGISLATION SCRUTINY COMMITTEE (SUB-COMMITTEE B) Appendix 2: INTERESTS AND ATTENDANCE Committee Members registered interests may be examined in the online Register of Lords Interests at The Register may also be inspected in the Parliamentary Archives. For the business taken at the meeting on 22 January 2019, Members declared no interests. Attendance: The meeting was attended by Lord Cunningham of Felling, Baroness Donaghy, Lord Goddard of Stockport, Lord Janvrin, Lord Kirkwood of Kirkwood, Baroness O Loan, Baroness Redfern, Lord Rooker and Lord Sherbourne of Didsbury.

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