The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con)
My Lords, I am enormously grateful to my noble friend Lord Taylor of Holbeach for raising this important issue and, of course, for the contributions of all noble Lords. I am also grateful to the members of the public who shared their concerns digitally.
We have been working with the logistics industry over a number of years to understand and minimise the potential impacts on hauliers and the traders they serve at the end of the transition period. We want to increase understanding and reduce confusion across the system, and make the process as seamless as it can possibly be. Where improvements can be made, we make them as quickly as we can so that, in time, the system will adjust.
I believe that these processes will be part of normal business life, like filling in a VAT return: it is not pleasant, but you just do it. We are absolutely committed to reducing friction as much as we possibly can—to remove the grit from the engine, as the noble Lord, Lord Inglewood, said. I assure noble Lords that the latest available data shows that overall freight volumes between the UK and the EU are back to normal levels. I will write with further details about value and the number of empty containers—in fact, I will probably be writing on pretty much everything today, but that is a tribute to the quality of the debate.
I turn first to market access for hauliers, because the deal we reached with the EU allows 95% of journeys to continue as they previously did. That is one of the most important things that we were able to deliver for the haulage sector as a whole. I assure the Lord, Lord Bradshaw, that we received a substantial amount of advice, both commissioned and unsolicited, from a wide range of voices in the logistics sector.
As we have heard today from several noble Lords, specialist hauliers—those involved in cultural and sporting events—have significant concerns following the TCA, and they have of course been impacted because of the number of internal EU movements on which they rely. Market access agreements for hauliers transporting equipment for cultural events was discussed regularly and in detail during the negotiations between the UK and the EU. The UK put forward specific proposals for liberalised access but the EU was unable to agree more flexible arrangements. Of course, the Department for Transport remains in contact with the industry, and we are also working in close collaboration with DCMS and BEIS to see what we can do to support the creative industries.
Turning to the wider changes—perhaps a little beyond transport—introduced by the end of the transition period, on exports, since the start of January, traders and hauliers have needed to comply with new requirements to export to the EU, including customs declarations and sanitary and phytosanitary checks. I am pleased to say that the number of turn-backs at the border is far lower than some forecasts and, indeed, than some noble Lords suggested in their remarks today. For example, the noble Lord, Lord Berkeley, who called it a complete disaster, might be interested to know fewer than 5% of trucks at the short straits have to be turned back, and some of those will be because they do not have a valid Covid certificate, not because they do not have the correct customs forms. We need to temper our messages. I am not saying that there is no room for improvement—we must strain every sinew to make sure that people are fully aware of their obligations—but I am saying that the system is not completely broken, as has been implied by some noble Lords.
On imports, we have assisted international hauliers by taking a phased approach to the introduction of various checks. Until 1 July, traders can import non-controlled goods from the EU by using the existing customs processes or by making a declaration in their own records at the point the goods entered GB, followed by a supplementary declaration, which must be submitted to HMRC within 170 days of the date of import. That seems a reasonable and doable solution. The next milestone is 1 April and relates to some products of animal origin; we are of course communicating those changes. The more significant change happens from July 2021, when traders moving any goods will have to make full customs declarations at the point of importation and pay relevant tariffs.
Of course, we are taking many steps to make sure that we as a Government are ready and that traders are ready. We are making sure that HMRC can cope with the increased volumes by building on the successful delivery and upscaling of systems for the end of the transition period. I will write with more detail, particularly to my noble friend Lord Holmes, who I understand is a bit of an expert, so I will need some officials’ help with that.
We are also delivering new compliance capabilities to improve HMRC’s ability to spot and tackle non-compliance, including using data from when staged controls end. We are introducing a compliance approach to support traders to get ready and continuing to take robust action against those who choose not to comply. We are streamlining authorisation requirements, applications and processes to help meet the expected increase in demand and to improve effectiveness. We are also working with the intermediary sector to increase capacity and capability for traders to comply with the new declaration requirements.
Of course, all those changes need to be communicated, and the Government have done an enormous amount of outreach to hauliers and haulage managers. That started many months ago, and it continues. It is continually being improved. We are learning lessons and putting them in place. All information is provided on GOV.UK, and there is a haulier handbook, which is updated when needed. We engaged in the process of drafting the handbook with Logistics UK, the Road Haulage Association and many others to ensure that it was as clear as possible. It is published in English and 13 other EU languages. We will consider other languages if there is a demonstrated need, but we feel that we have enough at the moment. We also have 46 information and advice sites. When I first heard about them, I thought, “What use are they going to be?”, but more than 137,000 hauliers have visited them since they opened in November. I think that is astonishing. More than 11,400 hauliers have received specific border readiness consultations at our sites, so it is not surprising that less than 5% of trucks arriving at the border are fully non-compliant. We are doing all right.
My noble friend Lord Taylor of Holbeach mentioned the inland border facilities. There are, and will be, a number of them. Information on all of them has been published on GOV.UK, with details of their logistics, their functions and their facilities. Hauliers are told what to expect at the site, what they need to prepare and any key documents that they need to bring.
The noble Lord, Lord Berkeley, was concerned about whether we have been talking to EU hauliers. I can reassure him that, of course, we have. We not only speak at their industry days, but we make speeches at their major conferences and events, and we have exhibition stands both physically and virtually. Much of that will continue.
The noble Baroness, Lady Coussins, asked whether we have digital interaction. We do. We have a dedicated haulier website with an embedded live chat function. This function has on average 35 in-depth conversations, lasting 20 minutes, each day, and around 700 hauliers a day ask advice. We have agents who speak English, Polish, Romanian and Bulgarian. We are particularly pleased that that is working well. However, we understand that there are lessons to learn, and we have learned them. We must put that into our communications as we go through April and then through the second change in July.
I now turn to Northern Ireland support and the specific situation in Northern Ireland. The Government remain committed to supporting hauliers in moving goods from Great Britain to Northern Ireland. For example, we established the Trader Support Service—the TSS—which is designed to support all businesses impacted by the Northern Ireland protocol. The service is free to use, and it can complete declarations on behalf of traders without traders needing to engage directly with new digital customs systems and processes. More than 34,000 traders are registered to use the service, and thousands of declarations are being processed each day. The contact centre is, of course, providing additional support. To date, the TSS has processed more than 68,000 goods movements, involving 200,000 consignments, since launching. The contact centre has more than 700 staff and answers more than 17,000 calls, with an average answering speed of six seconds.
Not only do we have the TSS but there is also the movement assistance scheme—MAS—which was announced to complement the existing TSS. It provides help to all those traders who move food or agricultural products for which specific sanitary and phytosanitary—SPS—controls apply. This means that a trader moving live animals or other animal or plant products does not need to pay to have them inspected. The MAS scheme also has a dedicated helpline for general enquiries for traders and, together these measures, it is making it easier to move agri-food goods from Great Britain to Northern Ireland.
A third intervention in Northern Ireland was Defra’s digital assistance scheme—DAS—which supports the continued movement of agri-food goods from Great Britain to Northern Ireland. It also addresses the costs and burdens of compliance with a protocol for industry. It uses digitised certification and verification processes and was backed by a major amount of government funding.
A number of noble Lords have mentioned groupage, which is a concern that we are well aware of. We have developed two groupage models, and they have been agreed. The guidance for these models for Northern Ireland was published on 29 January, and we will be looking to see how these models work and whether further improvements can be made.
Noble Lords will know that yesterday the Government went further to support trade between GB and NI. My noble friend Lord Frost is clear that progress needs to be made to address the direct and often disproportionate impact that aspects of the protocol are having on the citizens of Northern Ireland, contrary to its intended purpose. So, yesterday, following official-level notification to the Commission earlier this week, we set out temporary technical steps that largely continue measures that are already in place. They provide more time for businesses, such as supermarkets and parcel operators, to adapt to and implement the new requirements of the protocol.
For my noble friend Lord Attlee, I will speak very briefly on abnormally large loads. I am aware of this issue, and we have taken it up with the French Government via the British embassy. I will write with further details, but we hope to have it resolved.
I have not covered haulage drivers, but I reassure the noble Lord, Lord Whitty, that they are towards the top of my list of things to do. It is a significant issue, and the Government are doing a significant amount on apprenticeships, but it is time for me to speak to the industry because I believe that it has to step up and start looking at ways to recruit its own drivers. It is critical.
To the noble Lord, Lord Snape, I say that of course we want to see a switch to rail freight where it is feasible. We had an Oral Question on this recently. It forms part of the Government’s plans for the future.
All the measures I have mentioned today highlight the fact that my department and the Government are supporting hauliers to transport goods internationally on many fronts.
The Deputy Chairman of Committees (Baroness Garden of Frognal) (LD)
The Grand Committee stands adjourned. I remind Members to sanitise their chairs and desks before leaving the Room.