Written evidence submitted by Defra (LS0063)
Items that it was agreed further information would be provided
- Information on the number of visas issued under the temporary schemes announced in September and October 2021 [Qq176, 188 and 228]. The Committee would look for this to cover the number who applied to be sponsors and were approved or rejected. It also seeks the latest numbers of visas (i) applied for (ii) approved (iii) rejected (iv) where someone has started work on a visa for (a) poultry workers (b) HGV drivers and (c) pork butchers. This would be helpful with particular regard to the Director General’s statement that he expected the additional pork butchers to be here in December [Q176], whereas the Committee had been told previously that this was unlikely
- There are four operators licensed to act as sponsors for the 2021 temporary visa schemes. For more information, please see:
https://www.gov.uk/government/publications/seasonal-workers-pilot-request-for-information/seasonal-workers-pilot-request-for-information
- Any government data concerning visa applications, issuance and/or rejections is owned and managed by Home Office and UKVI. This information is therefore not held by Defra.
- Defra has worked closely with scheme operators throughout this process to understand their capacity, processes, and timelines for arrival, as well as to identify and resolve issues as they arise. Throughout this process it was expected that the first pork butchers travelling to the UK under this scheme would arrive in December. This estimate remains on track.
- The latest data on HGV driver tests, including the number of tests that have taken place are expected to take place during the remainder of 2021 and 2022, as well as data on application journey times and other relevant performance metrics [Q186]
- Since July 2020 to October 2021, there have been 32,986 vocational tests conducted. This data is drawn from the Official Statistics, Large Goods Vehicle vocational testing figures published on GOV.UK. Figures are updated on a quarterly basis and data up to the end of October 2021 is the latest data available.
- DVSA and DfT have implemented a number of actions to increase the volume of HGV tests. These include streamlining car and HGV testing processes to remove testing requirements and delegating elements of off-road exercises to provide up to an extra 50,000 HGV driving tests per year. In addition, we have worked with the MOD to provide further support to veterans under the Career Transition Partnership scheme to provide an extra 240 HGV training places. As a result, testing capacity is now greater than pre-pandemic levels and is meeting current levels of demand. A Ministerial Roundtable is planned for early December to explore how government and the training and logistics industries can work together to build confidence in the sustained levels of test availability to encourage and support investment in new training vehicles and other resources.
- The current forecast for HGV tests for the period November 2021 – the end of December 2022 is 123,900. This is made up of 18,400 for November and December 2021 and 105,500 for the 2022 calendar year.
A: On time taken to complete HGV tests
- It is not possible to provide a metric on the actual time that specific individuals take to move through the HGV employment process. This process is dependent on the decisions and actions of individuals to progress through training. DVSA has testing capacity available and the current national appointment availability is 1.9 weeks which is a performance measure used to indicate how long a candidate might typically have to wait to take a test from the point of booking. This figure is a calculated national average and in practice means the length of time a candidate might have to wait for a test is less than two weeks.
B: On ensuring efficiency
- DVSA have implemented a variety of measures to maximise testing capacity including use of overtime and utilising additional staff to conduct HGV tests and has recruited 300 new car driver examiners which will ease the demand on examiners who are able to conduct vocational tests.
- In addition, MOD Defence Driving Examiners (DDEs) are working alongside DVSA examiners to conduct HGV tests to further boost output.
- DVSA monitors demand for tests and varies examiner resource to meet that demand. DVSA monitors waiting time, currently at 1.9 weeks (which is normal), forward bookings, currently around 22k (which is normal).
- Statistics on labour shortages and their impact across all sectors, including smaller retailers [Q201]
- An in-depth view of labour shortages and impact across ‘all sectors’ is not possible for the deadline allotted to this response, as this exercise would take considerable time and resource.
- Defra also collects and analyses a range of the latest data and intelligence from its stakeholders through regular and ad hoc information gathering exercises. This information often relates to discreet and sensitive business data collected from private sector entities – it is therefore considered to be commercially sensitive and cannot be shared outside the department.
- Additionally, Defra makes full use of a range of relevant statistics made available by other government departments - including HMRC data, overseas trade data, BEIS data on business populations, and a range of ONS data such as that on labour force and price inflation.
- The date(s) when Defra asked the Home Office how many applications for pork butcher temporary visas had been submitted to the Home Office [Qq226-229]
- Since the implementation of the temporary visa schemes, Defra and Home Office remain in regular contact about their progress. Updates have been discussed between departments and shared with ministers on a weekly basis. This will continue until the conclusion of the scheme.
6. Mr Byrne’s questions that were interrupted by the Division Bell [Qq281-282]
- The Government is committed to helping people with the cost of living and providing a safety net for those that need it through our well-established social security systems. The level of support that this Government has put in place throughout the pandemic reflects this. And we recognise that some people may require extra support over the winter as we enter the final stages of recovery, which is why vulnerable households across the country will now be able to access a new £500 million support fund to help them with essentials. The Household Support Fund will provide £421 million to help vulnerable people in England with the cost of food, utilities and wider essentials.
- The forthcoming government Food Strategy is a once in a generation opportunity to create a food system that feeds our nation today and protects it for tomorrow. It will build on existing work across Government and identify new opportunities to make the food system healthier, more sustainable, more resilient, and more accessible for those across the UK.
Items that arose during the hearing which the Committee seeks further information
7. An update on access to the Chinese market for UK pork, including a chronology of the Government’s dialogue with the Chinese authorities and the steps it has taken, plus what remains to be resolved and the Government’s expected timetable for a return to pre-covid levels of access to the Chinese pork market [Qq174 and 221]
Update on current situation:
- Defra’s engagement with counterparts in China had reached a standstill, despite our extensive and repeated requests both at Official and Ministerial level. However, Defra have recently been experiencing a re-opening of communication channels. This renewed engagement has enabled a further virtual inspection by the General Administration of Customs China (GACC) at a UK pork processing plant on 18th November 2021.
- Consequently, Defra have now hosted virtual inspections by GACC of all three UK pork establishments suspended by China following outbreaks of COVID-19 among staff. Although Defra cannot predict GACC’s decision in this respect, Defra are hopeful that this renewed engagement from GACC will lead to progress in the lifting of suspensions by GACC for all three FBOs.
- Seeing China lift export restrictions on all affected UK establishments remains a government priority. Defra, in collaboration with the Department of International Trade (DIT) and the Foreign, Commonwealth and Development Office (FCDO), will continue to monitor the situation and do all it can to resolve this issue. However, the lifting of the suspension of these establishments is ultimately in the gift of the Chinese Authorities.
Background:
- The decision to both approve, and withdraw approval, of UK Food Business Operators (FBO) exporting to China are made by the General Administration of Customs China (GACC) as the relevant Chinese competent authority and the importing country.
- The Chinese authorities have concerns regarding importing SARS-CoV-2 on food and food packaging and have therefore taken an interest in the COVID-19 situation in all exporting countries. This includes temporarily preventing specific establishments from exporting to China where they have identified a perceived risk. This is not in line with World Health Organisation guidance which advises that “as food has not been implicated in the transmission of COVID-19, imported food should be subjected to the same import controls as before the pandemic”[1]. The UK have raised concerns regarding these trade restrictive measures both at the World Trade Organisation SPS Committee and in bilateral discussions with China and we will continue to do so.
- GACC require any exporting food establishments to suspend exports to China should an outbreak of COVID-19 occur among staff in their premises. To recommence exporting to China, all affected food establishments must follow a process prescribed by the Chinese Authorities to demonstrate the implementation and Competent Authority verification of what China consider to be effective COVID-19 controls. This process includes the submission of extensive documentation and a virtual inspection of the site.
- This issue is not unique to the UK and Defra meet with counterparts in like-minded countries on a regular basis to discuss the current challenges faced by FBOs exporting China globally.
- During 2020, five GACC-approved UK pork FBOs experienced COVID-19 outbreaks and, in line with GACC’s guidance, voluntarily ceased the export of pork products to China. Three of these UK establishments remain suspended.
- Defra has fulfilled all of China's technical requests to enable decision-making by GACC on the re-listing of these three UK pork establishments. This includes the submission to GACC of extensive COVID-19 dossiers, as well as completing virtual video inspections for each of these FBOs, chaired and facilitated by Defra with the support of UK food safety and public health authorities.
- Steps taken by Defra to date to resolve this issue:
- Defra has fulfilled all of China's technical requests to enable the re-listing of these UK establishments. This includes the submission to GACC of extensive COVID-19 dossiers, countersigned by the relevant Food Safety Competent Authorities and Public Health Authorities, as well as completing virtual video inspections chaired and facilitated by Defra with GACC Officials.
- In late January, Defra Officials wrote to GACC to request the re-listing of the two pork establishments which had hosted GACC for virtual inspections earlier that month.
- The Defra Secretary of State wrote to his counterpart GACC Minister Ni in March 2021 to urgently request the relisting of both sites. The Secretary of State sent a further letter in May 2021 to request a meeting with GACC regarding the lack of progress on the now three delisted sites. GACC have not acknowledged either letter. DIT Ministers have also written to GACC.
- In May 2021, a letter from the UK Deputy Chief Veterinary Officer was sent to GACC to request the urgent relisting of the delisted FBOs and to ask for a face- to - face meeting.
- Also in May, the UK CVO met with China’s Deputy Head of Mission to discuss GACCs lack of acknowledgement to our letters and the lack of progress with the delisted pork FBOs.
- In August 2021 the DCVO again wrote to GACC to highlight the latest UN Food and Agriculture Organisation's guidance on the risks COVID-19 transmission via food or food packaging.
- The Defra Market Access Team briefed No. 10 in October 2021 to aid in his November 2021 discussions with President Xi Jinping regarding problems with trade including the pork FBO delisting.
- Beyond direct engagement with GACC, Defra continues to engage with FCDO and DIT colleagues at every different level to ensure a consistent, approach to UK Government pressing GACC for the re-listing of UK pork establishments.
- Additionally, the UK raised concerns regarding these trade restrictive measures at the World Trade Organisation Sanitary Phytosanitary (WTO SPS) Committee in November 2020, March 2021, July 2021 and in bilateral discussions with China.
8. On the Food Resilience Industry Forum [Q180], I understand this currently meets on a quarterly basis although around November 2020 it was meeting twice weekly (presumably due to the nature of the pandemic at that point). Could Defra provide a list of the Forum’s meeting dates since it was established, and also a list of its current membership.
- There are around 100 members ranging across the entirety of the food sector, with a maximum of 2 representatives from each member.
9. The number of pigs that Defra expects will be culled during 2021 and 2022 [Q214]
- Defra does not collect official data for the number of pigs culled on farms. Producers, who are responsible for the welfare of animals on farm, are also not required to submit such data. However, from our engagement with the pig sector, we understand that since 1 September, between 10 -15,000 pigs may have been culled on farms as a result of the shortage of workers in slaughterhouses, and a further 1,000 may have been culled the week commencing 29 November. The industry has informed Defra that culls are continuing on farms but there have been no specific updates on numbers.
- We expect that the measures that we announced on 14 October and are now delivering will help to reduce the current backlog of pigs and reduce the need for culling. These measures include visas to allow 800 butchers to work in the UK for a 6-month period, and Private Storage Aid and Slaughter Incentive Payment Schemes to encourage an increase in the throughput of pigs in abattoirs.
- The culling figures should be seen in context: around 180-190,000 pigs are slaughtered in abattoirs each week – amounting to approximately 2.2 million since 1 September. We believe the number would have been higher if it wasn’t for our interventions of the visa scheme and the Private Storage Aid scheme – these schemes have given pig farmers certainty that there will be increased capacity in the system in the near future and therefore they do not need to cull their pigs.
- The market has also adjusted, and we have also taken other steps to increase capacity:
- The industry has increased weekly throughput by 6-10,000 pigs by maximising overtime and Saturday kills in the pre-Christmas period.
- Where culling is required, which we now expect to be very low numbers, we have taken steps to support this:
- The Animal Plant and Health Agency (APHA) are working to reduce the time that it takes them to process and approve Welfare At Time Of Kill (WATOK) license applications. These licences enable farmers to cull pigs on farm, if needed.
- Defra will continue to monitor the situation and is working closely with the industry through this challenging period.
10. Given the risks that the food supply chain currently faces, under what circumstances would Defra foresee using the powers under the Agriculture Act 2020 to intervene (having deemed there to have been a market disruption), and what action(s) could be taken? [Qq214, 216-217]
- The Agriculture Act crisis powers (Sections 20-22) are intended to be used only in cases of extreme market disturbance and are expected to be applied for a limited period only and not as a means to provide long term assistance. They can be used if there is severe disturbance in agricultural markets or if there is a serious threat of a severe disturbance. These powers are intended to be used only if supply chain disruption affects primary producers: they can be used if such a disturbance has, or is likely to have, a significant adverse effect on agricultural producers in England in terms of prices achievable for one or more agricultural products.
- If these conditions are met, the Act provides powers to provide financial assistance once the Secretary of State has made a Declaration outlining which sector(s) are affected by the severe disturbance and the reasons for that disturbance. Any financial assistance provided can be provided for a period of up to 3 months from the date of the Declaration, although this can be extended for a further three months if necessary.
- Any financial assistance available under these powers is not prescriptive and if it is to be applied, should be tailored to the specific exceptional circumstances that arise. For example, assistance could include the giving of grants, loans, or guarantees as well as the use of intervention or Private Storage Aid schemes such as that recently provided to support exceptional market disturbance in the pig meat sector.
- Together with the devolved administrations, Defra has established the UK Agricultural Market Monitoring Group (UKAMMG) to monitor and assess the impact of market developments across the UK. The group meets monthly or more regularly if required and monitors UK agricultural markets including price, supply, inputs, trade and recent developments, enabling it to provide forewarning of any atypical market movements and allowing us to respond to emerging issues quickly and effectively.
11. Information about Defra’s discussions with the Home Office on the details, including the complexity, of the pork butcher temporary visa scheme and the skilled worker visa route including details of correspondence as well as meetings (and the dates of these correspondence and meetings) [Q230]
- Until 31 December up to 800 pork butchers will be eligible to apply for temporary visas, allowing them to travel and work in the UK for a period of 6 months. This temporary adjustment is in addition to foreign butchers already being eligible since December 2020 to apply to come to the UK through the Skilled Worker Route as part of the Point-Based Immigration System.
- Defra and Home Office have maintained a close relationship regarding the Points-Based Immigration System since its conception, particularly concerning its impact on UK food sectors. Additionally, the temporary visa schemes are delivered through the mechanism of the Seasonal Workers Pilot, which has been managed and evaluated jointly by departments since it was created in 2019. We worked hard to design and implement these additional visas in a way that would facilitate for pork butchers, and we continue to work together to monitor its impact and identify issues to resolve in a timely manner.
13. On the point about import checks, the Secretary of State and Director General cited a lack of veterinary capacity in the EU (specifically in three EU countries) as the reason why checks on EU POAO imports were deferred on 14 September – hitherto, this hadn’t been mentioned in Government explanations for the rescheduling of the start of import checks and controls from 1 October/1 January as far as I am aware (e.g Defra’s written memorandum to the inquiry, or Lord Frost’s written parliamentary statement of 14 September). Could further explanation be given on this point, including the latest assessment of veterinary capacity in the EU to undertake import checks of POAO destined for GB, and what steps the Government is taking (e.g. to encourage greater veterinary capacity in this area in EU countries). Information on what steps the Government is taking to publicise with EU governments and businesses the current timetable for the introduction of GB POAO import checks would also be welcome. [Qq276 and 279]
- Like the UK in 2020, EU member states are having to increase certifier capacity. The top 6 EU Member States account for over 75% of all food imports. Confidence levels are rising that Member States have sufficient capacity, and there is now evidence that trader nervousness over whether state run certification would have the capacity or agility to service industry’s just in time operating models are being addressed.
- Only Poland publicly declared that they had insufficient capacity in the run up to October, but EU member states were generally welcoming of increased time to build resilience. Defra is monitoring the situation closely and will continue to pursue all opportunities to work with key exporting states on the matter. We are holding discussions with the top 10 EU member states who account for 94% of all sanitary and phytosanitary import trade raising industry concerns and providing advice on consolidation and groupage models. Belgium, as a result, have agreed with hauliers and supermarkets a more flexible certification model, resolving stakeholder concerns.
- The phasing of POAO certification will reduce the impact of any teething problems by building up volumes over a 4-month period.
14. Reference was made to decision-making based on the data at various points by the Director General (e.g Q180). Could Defra provide details about the data it uses when formulating policy around labour shortages and their impact, including the timeliness of this data.
- Defra also collects and analyses a range of the latest data and intelligence from its stakeholders through regular and ad hoc information gathering exercises. This information often relates to discreet and sensitive business data collected from private sector entities – it is therefore considered to be commercially sensitive and cannot be shared outside the department.
- Additionally, Defra makes full use of a range of relevant statistics made available by other government departments – including, but not limited to, overseas trade data, BEIS data on business populations, and a range of ONS data such as that on labour force and price inflation.
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