Commercial Air Routes: United Kingdom and East Africa

Baroness Randerson Excerpts

Wednesday 13th February 2019 Lords Chamber

[Baroness Sugg]

I think I agree with what the noble Viscount says. The purpose of our slot reform would be to increase competition and benefit the consumer.

[Baroness Randerson (LD)]

My Lords, BA has in the region of 380 slots at Heathrow and Virgin has 27. Under the current system of slot allocation, every time new slots become available, they are allocated on the basis of the current ratio. This means that it is impossible to challenge BA’s position. This is not real competition and it is not good for consumers, who are offered no real choice. Will the Minister commit to look specifically at this aspect of slot allocation?

Air Passenger Rights and Air Travel Organisers’ Licensing (Amendment) (EU Exit) Regulations 2018

Baroness Randerson Excerpts

Tuesday 12th February 2019 Lords Chamber

The crucial thing is, what will happen when the legislation diverges from what is in our statutory instrument—when, for instance, the European Union decides to update the compensation arrangements, which it might do just in line with inflation? It might say, “Inflation has been 10% in the three years since this regulation was brought in—we’re going to update it”. This will pose a real question to government: how much power will we have taken back if we say that we will mirror the legislation, and how much will we disadvantage British consumers if we say we will not—in other words, that we will drift apart? This SI is of value only on day one. It will then start to diverge, which will be a major problem. Can the Minister say whether consideration has been given to what will happen as regulations which we have taken into our law are then updated in Community law? That is quite a serious point.

[Baroness Randerson (LD)]

I am sure the noble Lord has noted that the Government have conveniently—from their perspective—translated the euro rate of compensation into pounds using the current exchange rate. The noble Lord makes the good point that that could become distorted if, for example, we have the kind of significant change in exchange rates that the MP David Davies, for example, referred to last week.

[Lord Balfe]

I did not raise that point about the translation, but purely because my noble friend Lady McIntosh had already raised it. I was making the point about the change in regulation, which I am concerned about, not the change in internal things within it.

My second point is on the interpretation of regulation. When the European Court of Justice interprets a regulation, if we are following and providing the same rights, and the CJEU makes a judgment which interprets the regulation so that it is no longer in line, to what extent will we accept the judgment of the court? In other words, how real is this alignment when, not on day one but on, say, week six or month six down the line, things have started to diverge? Presumably we will not have an SI every week; what mechanism do the Government see being used to maintain the alignment between our regulation, which they say will follow the EU statute book—that is fine—and changes in the EU statute book? This question will come up, whether it is on this regulation, if we do not leave, but it will also come up if we leave. How dynamism plays its way through the legislative process will be quite a fundamental point for consumer rights, as it will be for trade union rights, which we will come on to in another debate.

--- Later in debate ---

[Lord Adonis]

As the noble Lord is aware, because we debated it at some length in Grand Committee, in one SI the consultees were “selected” and “trusted”, but that has not appeared in others. It is not clear in this case who did the selection and whether they were trusted—perhaps the Minister can tell us.

I want to pose to the Minister the obvious questions. Who has been consulted on these regulations? What were the “long-established stakeholder forums” which were consulted? What issues relating to the UK’s withdrawal from the EU were raised by the consultees? What was the Government’s response to each of those concerns?

I do not serve on the statutory instrument committees but, when I meet noble Lords leaving those meetings with a haggard expression, they tell me there are hundreds more SIs to come and that apparently they are getting longer—some of them are hundreds of pages. I hope that, in these committees, noble Lords are asking questions of the Government as to what these processes are. It would be very helpful to us if these statutory instruments came to the House with a description of which “trusted” and “selected” groups were privy to the Government’s consultations.

[Baroness Randerson]

Is the noble Lord aware that, in some of the forums that the Department for Transport brought together to discuss EU and Brexit issues, those who took part were required to sign non-disclosure agreements?

[Lord Adonis]

So it is not just Seaborne Freight that had to sign a non-disclosure agreement; it turns out that people who turned up to meetings in the department also had to. Perhaps the Minister would like to clarify whether non-disclosure agreements were involved. Indeed, I am told there was an attempt to try to get your Lordships to sign non-disclosure agreements on the ground that, if we debate these issues openly and start expressing our concerns, people might become alarmed—as the noble Lord, Lord Warner, said, there are some members of the public who observe our proceedings.

This is worse than deeply unsatisfactory and is no way to make legislation. It is totally unacceptable and should not be happening. There is nothing the noble Baroness can say that will meet the substantial points, but perhaps she can at least give us some basic information on how consultation has been conducted and what the results were.

Air Services (Competition) (Amendment) (EU Exit) Regulations 2019

Baroness Randerson Excerpts

Tuesday 12th February 2019 Lords Chamber

[Lord Balfe (Con)]

My Lords, the Chamber is much emptier now than it was for the earlier SI. I am intrigued that we are replacing the air services competition regulations, which apparently have never been used, with an SI which we hope will never come into force. This is almost comedy stuff. The Explanatory Memorandum states that,

“this instrument makes the corrections needed for it to function as domestic UK law after Exit day”.

What is the position regarding the replacement? If negotiations on it are going on at the moment, presumably the Department for Transport is involved in them. I would be interested to hear where they have got to. Are they on the point of producing the replacement or is it some way down the line? If it is on the point of being replaced, do the Government envisage bringing forward another SI to reflect the new regulation? Or will this be the first instance when we are seriously at variance with Europe: in other words, when it adopts a new regulation but we are still working on an old one? This picks up the point I made earlier this afternoon when I asked about divergence between Community and UK law. It needs to be addressed.

One always learns things in these debates. I was fascinated to learn that my noble friend—and good friend—Lady McIntosh began her romantic life by talking about cabotage. I found something else to talk about when I first met my wife, but we do not need to go into that. Looking at the slot allocation regulations, the question that keeps coming to me is: why should any airline stay based in the United Kingdom at all? What advantages are we going to offer them? I can see the advantage in being in a union of 27 countries where there is a common base and common legislation, but what will be the advantage of being a UK airline? I can see none at all. Britain cannot do without airlines. We are not going to stop them flying here, but at the same time we have nothing to offer them that will be better, in any way, than what they will be getting from the EU. The Commission will no longer have a role in relation to airports.

According to the explanatory statement, article 9 says:

“Instead of any invitation to tender to operate a”,


public service obligation,

“route being open to Community air carriers only, this will be open to all air carriers with traffic rights to operate services within the UK”.

Is not the logical corollary that our rights to bid for public service obligation slots in the rest of Europe will be withdrawn? If we are going to open up and say that non-EU airlines can bid for these slots, surely the natural reaction would be to say that we are changing the whole basis of things. So this is not bringing EU law into UK law; it is bringing it in with one quite fundamental change, by opening it up to all air carriers with traffic rights to operate services within the UK. What is the thinking behind this? Why have we inserted this into a regulation that is supposed to bring EU law into line with our law, while making a big divergence by letting non EU-registered airlines bid for these slots? I would welcome the Minister’s observations on why this has been done.

[Baroness Randerson (LD)]

My Lords, the services SI is about unfair practices. It allows penalties to be imposed on air carriers guilty of unfair practices against the UK industry. Since these powers have apparently never been used at an EU level, it is probably right, just for once, to say that this is purely technical—although the Minister forbore to say so. However, the concept of an EU-wide approach, which is what we are abandoning here by replacing “EU” with “UK”, would be much more likely to be an effective deterrent against such practices than the UK operating on its own. The noble Lord, Lord Balfe, has just wondered out loud why an airline would base itself in the UK in future. This is another example of how we are opening ourselves up to being in a much more vulnerable position through our future isolation.

In her introduction, the Minister said that these EU regulations were being replaced. Will she clarify whether the Government intend, in due course, to replace this SI with an updated version when the EU has updated its regulation—or are we going to be stuck in a time warp with outdated legislation?

Motor Vehicles (Wearing of Seatbelts) (Amendment) (EU Exit) Regulations 2018

Baroness Randerson Excerpts

Tuesday 12th February 2019 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)]

My Lords, these draft regulations are made under the powers conferred by the European Union (Withdrawal) Act 2018 and will be needed if the UK leaves the European Union without a deal. They amend domestic seat belt-wearing legislation to ensure that it continues to work following withdrawal in the event of no deal. They make technical changes and do not alter policy. In Northern Ireland, seat belt-wearing legislation is a transferred matter. Of course, the Government remain committed to restoring devolution in Northern Ireland, but with exit day six weeks away, and in the continued absence of a Northern Ireland Executive, in the interest of legal certainty the Government will take through the necessary secondary legislation at Westminster for Northern Ireland. This has of course been done in close consultation with the Northern Ireland Civil Service.

Compulsory seat belt wearing has been in place for 36 years. Subsequent obligations have been placed on front and rear seat passengers domestically. The purpose of this statutory instrument is to correct technical deficiencies that would arise domestically if we were to exit without a deal. This will enable us to maintain a functioning statute book and retain the clarity that might otherwise be lost. The instrument maintains the status quo in terms of seat belt and child restraint use obligations and the recognition of medical exemption certificates. It does not diverge from the robust legal framework we already have in place. The current EU Directive 91/671/EEC sets out the requirements for compulsory seat belt wearing. There are exceptions and caveats but the basic position, stemming from the directive and incorporated in domestic law, is that for cars, vans and lorries, seat belts must be worn where fitted. Children must also use a suitable child restraint system, and children under three cannot be transported if there is no safety system in the vehicle.

Drivers and passengers who have a medical condition making it inadvisable for them to wear a seat belt can be issued with an exemption certificate. The Road Traffic Act 1988, The Motor Vehicles (Wearing of Seat Belts) Regulations 1993, and The Motor Vehicles (Wearing of Seat Belts by Children in Front Seats) Regulations 1993 require drivers and passengers to wear adult belts, including those approved in “another member State”, and recognise child restraints approved in “another member State”. They also recognise medical certificates exempting a person from the requirement to wear a belt issued in “another member State”. The Road Traffic (Northern Ireland) Order 1995, the Motor Vehicles (Wearing of Seat Belts) Regulations (Northern Ireland) 1993, and the Motor Vehicles (Wearing of Seat Belts by Children in Front Seats) Regulations (Northern Ireland) 1993 have the same effect in Northern Ireland. This draft instrument makes the necessary changes so that the regulatory regime in place after exit continues to operate as it does now.

The regulations remove existing powers and duties in the Road Traffic Act 1988 and the Road Traffic (Northern Ireland) Order 1995, which exist to make subordinate legislation for implementing an EU directive. The powers and duties that are being removed relate to the implementation of the EU seat belt directive. Once the UK has exited the EU, it would no longer be appropriate to retain the powers and duties to implement the obligations imposed by a European directive. We will retain existing domestic powers in the Road Traffic Act 1988 and the Road Traffic (Northern Ireland) Order 1995 to enable Government to maintain, and amend where necessary, the existing legal framework governing seat belt wearing. This SI replaces the duty to provide an exemption from wearing a seat belt for any person holding a certificate issued in an EU member state with a power to do so.

The regulations replace the term “another member State” with “a member State” where it occurs in domestic legislation. This is necessary to ensure the law remains clear and continues to have its current effect. Without these changes, the relevant provisions might be rendered ineffective. Changing this terminology will ensure that medical certificates issued to drivers and passengers in EU member states who cannot wear seat belts because of a medical condition continue to be recognised in the UK.

The change in terminology will also ensure that passengers are obliged to wear an adult seat belt even when the only belt available was approved by an EU member state and is not otherwise compliant with use in the UK. That is important because there is an exemption from the requirement to wear a seat belt if a compliant seat belt is not available. If such seat belts ceased to be compliant by virtue of our not making this technical change, then their non-use would no longer constitute an offence. We want to be clear that, in simple terms, if a seat belt is available then it must be worn. After exit day, any lack of clarity over what constitutes a compliant seat belt could lead to confusion, which would clearly be neither a safe nor a sensible policy.

It is similar with child restraint systems. The final effect of the change in terminology is to ensure that driving in the UK with a child restraint system that would meet the requirements of the law of an EU member state, but that would not otherwise meet the requirements of domestic legislation on seat-belt wearing, does not become an offence. That is to try to avoid confusion for any family travelling to the UK over whether that child restraint is legal.

We have in place a robust legal framework in respect of seat-belt wearing which aims to improve road safety. In the interests of safety, we want that framework to continue after exit day. The Government want to ensure that domestic seat-belt legislation continues to work in a way that retains good travel, tourism and business access from EU member states following the UK’s exit. For this to happen, we need to ensure that the legislative basis is sound and that the statute book functions properly. I beg to move.

[Baroness Randerson (LD)]

My Lords, I will begin by pointing out that Paragraph 7.8 of the Explanatory Memorandum says:

“With exit day less than one year away”.


I keep repeating this because I want to know where these SIs have been all this time. Someone clearly did the work on them a long time ago, and we are now rushing them through this House. Why have they been left to this late stage?

That is my complaint over with. Turning to the issues in this SI, as the Minister has said, it is a simple transposition. But it is an important topic, because hundreds of thousands—probably millions—of British people travel abroad to Europe every year. A very large number of them take their car, and could therefore start off with perfectly legal seat belts only to find themselves in an illegal situation by the end.

This SI basically says “If it is legal in the EU, it will be legal in the UK. If you are exempt in the EU, you will be exempt in the UK”. What about UK drivers going to the EU in the situation I have just explained? Has the EU indicated what it intends to do in the event of a no-deal Brexit? On some transport issues, it has given a fairly clear—if not always desirable—indication. Has it made any comments on this at all?

Those who are in favour of Brexit, including the Secretary of State, want the freedom to develop our own standards. If we do, will we be guaranteed that, when we go to Europe with, say, our child’s bumper seat—which people often take with them on holiday—it will be legal when we get there?

There has been a lot of coverage lately of the end of the EU medical insurance system as it applies to UK residents. Is there a set format for the medical certificates referred to in this SI? Is there a particular form or list of medical professionals who can sign these certificates? My point is, how easy will it be in future for UK citizens to get a certificate of medical exemption that will be instantly recognised as authentic and acceptable, even by someone who perhaps does not speak English? To reverse that, if there is an EU format, then we will clearly be used to it, and the authorities in Britain coming across someone with a medical exemption would know about it. I am trying to tease out the way in which British people will be treated in future when they drive in the EU.

[Lord Tunnicliffe (Lab)]

My Lords, leaving the EU without an agreement is a thoroughly stupid thing to do, but if it happens, this SI is thoroughly sensible and we will not oppose it. My understanding, which I think is the same as that of the noble Baroness, Lady Randerson, is that it is not symmetric: that it does nothing for UK drivers in the EU but sensibly addresses the issue of drivers who would unknowingly be breaking the law were this SI not completed. It produces a sensible environment in which friends—as I would call them—from the European Union can drive in the UK.

Motor Vehicles (International Circulation) (Amendment) (EU Exit) Order 2019

Baroness Randerson Excerpts

Tuesday 12th February 2019 Lords Chamber

[The Earl of Dundee (Con)]

My Lords, can my noble friend comment on a few points? First, the European Union general safety regulations are expected shortly, before the end of March. Can she reassure noble Lords that post Brexit these standards will be observed and matched by the United Kingdom? Secondly, regarding reciprocal arrangements affecting uninsured drivers after EU withdrawal—and not least if there should be no deal—what protection would there be for a driver insured in the United Kingdom who has a collision in France with an uninsured vehicle, for example? Thirdly, post Brexit the desired aim is to make it as simple as possible to get hold of and use an international driving licence. In response to questions in another place the Government have already undertaken to reduce unnecessary complications, in particular by seeing whether there can be an international driving permit app for mobile phones, thereby avoiding the inconvenience of paper copies. What progress has been made on this?

[Baroness Randerson (LD)]

My Lords, it is important to start by mentioning that a special report by the Secondary Legislation Scrutiny Committee drew attention to deficiencies in the Explanatory Memorandum and to the fact that this is an important policy issue. There are many controversial aspects to it, so I am very disappointed that there was no proper consultation. This could seriously inconvenience members of the public. In fact, if they are not familiar with what is now required of them, or could well be required of them in the event of a no-deal Brexit, they could end up with a conviction abroad that could have serious consequences—even for their careers.

As the Minister has explained, there are two sorts of IDP: one based on the 1968 Vienna convention, which the UK Government have only recently ratified and which will come into force on 28 March; and one relating to the 1949 convention. I draw attention to paragraphs 7.2 and 7.6 of the Explanatory Memorandum. If you read them without full attention—even five times—they are extremely complex and confusing. If that is the sum of the Government’s efforts at explaining the arrangements, the average casual observer is unlikely to understand what is going on.

As a result of reading the Explanatory Memorandum several times, I believe that there are two types of international driving permit. Twenty-three EU states plus Norway and Switzerland abide by the 1968 convention IDP, and Cyprus, Ireland, Malta and Spain abide by the 1949 convention IDP. Of course, you could easily need both to go on holiday. If you want to go on holiday to Spain and plan to drive down through France, you will need both.

Until now, international driving permits have been provided by the AA and the RAC. For no clear reason the Government have decided to abandon that arrangement and to use post offices instead. I am very keen on using the Post Office but I wonder whether now is the time to abandon a well-worn system and to start all over again with a new one. I would feel better about using just post offices if we were going to use all post offices—but the Government will be using only 2,500 of them, and I was not terribly reassured by the point made by the Explanatory Memorandum that most people will be within 10 miles of an issuing post office. Ten miles is an awfully long way to go to get a document.

According to the report from the Secondary Legislation Scrutiny Committee, under the new arrangements Northern Ireland will have only two post offices issuing permits. I would like the Minister to clarify that the Government have had second thoughts about that and that it is no longer the case. My concern is that there is no online system and that the Government have abandoned the previous mail order system operated by the AA and the RAC. Saying that you can get a permit only by going into a post office and queueing up is a really 19th-century approach.

Another point that really concerns me is that there are no arrangements for issuing IDPs abroad. I declare an interest: my son lives and works abroad with his family. What about people like him who are already there? Will he have to come home to collect an IDP from the Post Office in order to continue to be able to drive legally in Europe in the event of a no-deal Brexit?

The Minister clarified one of my other questions, which was the legal basis for the Government taking over the issuing of IDPs on 1 February through a negative instrument.

My other concern is about the lack of publicity. There is something on the government website, but that is for those who spend their leisure time looking through GOV.UK for fun. Publicity is needed that tells people to go to that website to find out which sort of IDP they need. It is no good relying on just putting something on the website. That is where you get clarity once you know that there is a problem. Therefore, what are the Government’s plans for publicity to build up public understanding, knowledge and awareness of this issue? It is not simple; it is complex. It appears that one form of IDP lasts for three years—unless your driving licence does not last that long, in which case it might last for less time—and the other lasts for only a year. Supposing that you go regularly to Spain on holiday, you might be able to plan ahead for three years with one of your IDPs but you will need to apply every year for the other one. This is not a simple situation.

--- Later in debate ---

[Baroness Sugg]

My Lords, I thank noble Lords again for their consideration of the draft regulations—the last of ours today. In the event of no deal, we remain confident that we will achieve mutual recognition and exchange agreements for driving licences with the EU and member states. As I said, we recognise EU and non-EU driving licences and very much hope that EU member states will also do so, which will remove the complexity of the system. But, obviously, until we have that agreement we must be prepared for all scenarios, so it is important to ensure that we can issue IDPs under the 1968 Vienna convention to provide that certainty for UK motorists driving in the EU.

I will respond to some of the questions raised. My noble friend asked about uninsured drivers. We intend that the UK should remain part of the green card-free circulation zone, and we are working towards that. We are seeking reciprocal arrangements to ensure that UK drivers who are hit by an uninsured driver, for example in France, can obtain compensation from the French national insurers’ bureau. On safety regulations, we have one of the best road safety records in the world; I am not familiar with the specific document which my noble friend referred to, but I assure him that we will work to continue and maintain that good safety record.

On the IDP format and the idea of an app—a new one on me, but I like the sound of it; you could perhaps called the IDP look “traditional”—the format is specified in the UN conventions, and at the moment an app or electronic document is not applicable. However, I agree with my noble friend that we should consider that in order to modernise and to enable permits to be applied for more easily.

On consultation, obviously this affects a huge number of people. We did a lot of consultation around the 1968 Vienna convention, which brought this in, we have held many discussions with motoring organisations such as the AA, the RAC and the RAC Foundation, and we have also had separate engagements with consumer associations, which are helping us to provide guidance to people.

On the communications point, I agree that the Government’s duty is to ensure that UK licence holders are provided with the correct and sufficient information to make sure that they are ready for the changes. As I say, we hope that they will not be needed. We have published guidance on GOV.UK, which covers everything, such as the type of IDP you will need in each member state—the noble Baroness was right to point out that you will need different IDPs if you are driving from France to Spain, which, just to add to the confusion, are valid for different amounts of time. The Post Office website also provides information on your nearest IDP-issuing branch, and which countries you will need which IDP for, and it will continue to update this guidance as we progress, I hope, with achieving bilateral agreements.

We have a public information campaign that ensures that UK nationals have all the information and advice they need to continue to plan and book their travel to Europe. It includes radio adverts, Spotify adverts and social media. As I say, we are in no way complacent that we will achieve this deal and IDPs will not be needed—that is why we are bringing forward these SIs. However, if we do not get a deal—I agree with the noble Lord that this is a very good example of why we need a deal—there is still the option of the mutual recognition of driving licences, which we are moving towards, especially as we are 45 days out. If we are closer to exit without this agreement and it looks less likely that we get it, I absolutely agree with the noble Baroness that we need to do all we can to ensure that we communicate that.

[Baroness Randerson]

Can the noble Baroness specifically address the issue of people living abroad—there are millions of Britons live abroad—and how they would obtain an IDP, and whether specific publicity will be aimed at them?

[Baroness Sugg]

The noble Baroness was right to point out that, sadly, we are not able to issue these abroad, in the same way that we are not able to issue driving licences abroad, which obviously gives expats in particular specific problems. We are working actively with the Foreign Office to communicate with UK nationals who live overseas, using the normal consular routes to provide information on that. We are encouraging UK licence holders already resident in EU or EEA countries to exchange their licences ahead of exit day, which will avoid the potential for them to have to retake tests. IDPs are designed for visitors, not people who are resident in another state, so we are providing clear advice to people who are resident in another state that they should exchange their licences ahead of exit day.

[Baroness Randerson]

I am grateful to the noble Baroness for giving way again. The concept of “resident in another state” is in itself quite old-fashioned. People go to work for six months, three months, even a year. They will not want to change their driving licence to make life even easier for them in that period of time; they will want an IDP for a short time. Of course, they have not had to bother about all this up to now.

[Baroness Sugg]

I agree with the noble Baroness. This is why we recognise EU and non-EU driving licences for a period of up to 12 months, for people to drive if they are not resident, because of the changing nature of how people live and work. That is why we very much want to achieve mutual recognition. However, if that is not possible, we will be in a situation where people will have to apply for IDPs before 1 March.

On resourcing, which both the noble Baroness and the noble Lord brought up, as did the SLSC, we have expanded the turn-up-and-go service for issuing IDPs from 89 originally to 2,500 post offices, which means that 90% of the UK population live within 10 miles of an issuing branch. We have also optimised that branch network to ensure that there is a good level of availability at locations that are points of departure for UK motorists, such as ferry ports and airports. The noble Baroness is quite right to point out that there were not enough post offices in Northern Ireland that could issue IDPs; that has significantly increased from two to around 100. We have had confirmation that all the staff have been trained on how to issue all three different formats, and, while this will be demand led, should demand increase, we have the facility to expand the services to an additional 2,000 post offices, which will mean that 90% of the population will live within three miles of an issuing branch.

It is difficult to quantify how many of these we will need, given that we do not have clear data on individual journeys and what licences people who undertake those journeys have. So far, we have issued an average of 2,500 IDPs a day since 1 February—about one per relevant post office per day. The DVLA has printed 2 million IDPs across all three formats to prepare for the increase in demand. However, as I say, if we see an increase in demand, we have the possibility to expand it. On staffing levels, we do not believe that we will need further staff for the Post Office. It takes around five minutes to apply for an IDP and get it issued. I very much hoped to be able to be a mystery shopper and get down to a post office myself, but, sadly, I ran out of time before this debate. We remain confident that the Post Office will be able to deal adequately with this request. Back in the day when tax discs were issued over the counter, it delivered 30 million transactions across 4,000 branches for the DVLA, so we think it has the capacity.

The noble Baroness asked about the change to the issuing of IDPs, as they are now issued by the Post Office and not online. At the end of 2017, we looked at four different options: to continue and extend the existing arrangements, which you could do by post—that was with the AA and the RAC; to give responsibility to the DVLA to issue IDPs, via the Post Office or another supplier; the possibility of an online system but with the physical document provided by someone else; and we looked at a DVLA online direct supplying system. We decided to reject the option to continue and extend the existing arrangements, as it would not have been possible to continue that under the current government procurement rules. There was also considerable uncertainty about the volume which was needed, which continues, and we thought that would be difficult for potential suppliers to be able to quote accurately. We did consider the possibility of an online system, but ultimately that was rejected. We thought that there would be a significant risk of a wasted investment on that. Moreover, such a system would not have been available to the 5 million licence holders who are without a photo card licence—although, obviously, the vast majority have one.

I return to the point that we are hopeful of achieving mutual recognition on this if we do not get a deal, but I agree with the noble Lord and the noble Baroness that this is a complex system—a messy one, as the noble Lord called it. We do not want to be in a situation where IDPs are necessary, and that is why we are trying to achieve a deal with the European Union; I very much hope that we will reach agreement on a deal soon, but the issuing of IDPs is a sensible contingency approach in the event of a no-deal scenario. It is the only way to absolutely ensure and guarantee that our licences will still be recognised after exit in the event of no deal. It relies on the international arrangements that are outside the control of the EU, but we hope to agree a deal or mutual recognition, which is obviously in the control of the EU and we will continue to press ahead with that.

This SI is essential to ensuring that UK motorists will be able to drive in the EU following exit day. The option of purchasing an IDP provides drivers with that certainty for driving in the EU under all potential scenarios.

Motion agreed.

Seaborne Freight

Baroness Randerson Excerpts

Monday 11th February 2019 Lords Chamber

[Baroness Randerson (LD)]

My Lords, we now know that the Government’s own estimate is of an 87% reduction in cross-channel trade for three to six months if there is no deal. Given that the whole point of Brexit no-deal preparations is to minimise risk, why did the Department for Transport approve the contract with Seaborne when it was known that there was a high risk that the company would not be able to fulfil the contract? When we spoke about this on 8 January, the Minister gave me solemn assurances that the financial backing for Seaborne was good. How did that situation change so dramatically overnight?

What the Minister did not tell me on 8 January was who will pay for the dredging of Ramsgate harbour. The Minister told us today that no public money will be put forward to Seaborne, but who will pay for the dredging of the harbour, given that we now know that no company could provide ships in time for a no-deal Brexit to use that harbour?

[Baroness Sugg]

My Lords, we went ahead with the contract with Seaborne on the understanding that it was a start-up company and did not currently provide the service. As I explained, this was a shorter and therefore cheaper route, which was why we were keen to make use of it. But we have enough capacity in the remaining contracts for prioritised goods.

The DfT is not party to the dredging work at Ramsgate, but of course we will continue conversations with a number of stakeholders, including Thanet Council, over any plans to re-establish ferry services at the Port of Ramsgate.

Drones: Consultation

Baroness Randerson Excerpts

Tuesday 29th January 2019 Lords Chamber

[Baroness Sugg]

I thank my noble friend for the work he does in his role as president of BALPA and his highlighting of aviation issues both inside and outside the Chamber. It has not been possible to offer every stakeholder a seat on the airspace strategy board, but the DfT and CAA are working with GATCO and BALPA to ensure they have the appropriate representation in the governance structure. Given their expertise and, as my noble friend points out, their practical experience, we really value BALPA and GATCO’s ongoing input and we will continue to work with them to consider what sub-committees they should sit on as part of the new airspace modernisation programme.

[Baroness Randerson (LD)]

My Lords, Gatwick and Heathrow are now purchasing equipment to combat drones, but it is very expensive. Does the Minister believe that all airports have to equip themselves with this expensive equipment? This could be beyond the financial capacity of some small airports, but a small airport being interrupted by a drone could be just as dangerous. Precisely how are the Government working with airports across Britain to ensure a rapid response to another drone attack?

[Baroness Sugg]

My Lords, the noble Baroness makes a very important point. Of course, we need to ensure that all our airports are protected, but there is a degree of proportionality to that. I met with airports recently and will continue to work with them on ensuring that they have the best capability possible. Also, the Centre for the Protection of National Infrastructure is working on standards for counter-drone technology and offers advice to organisations, including airports, on the availability of current technology.

Ship Recycling (Facilities and Requirements for Hazardous Materials on Ships) (Amendment) (EU Exit) Regulations 2019

Baroness Randerson Excerpts

Tuesday 29th January 2019 Lords Chamber

[Baroness Sugg]

That the draft Regulations laid before the House on 13 December 2018 be approved. Considered in Grand Committee on 23 January.

[Baroness Randerson (LD)]

My Lords, I seek an assurance from the Minister. I promised her after our discussion in the Moses Room that I would look at Hansard carefully to see what she had said in response to my questions. I regret that she did not address my concerns. Although the letter that I received this morning attempted to do so, it basically conflicts with the Explanatory Memorandum.

Again, this is a no-deal SI. I keep hoping that the House of Commons will rescue us from this dystopian nightmare, but it looks again today as if it might not do it, so I accept that we have to prepare for this and I do not seek to interrupt that process. Unlike the three SIs that we have just approved, this SI involves new policy. As your Lordships will be aware, ship recycling is a very dangerous process. If done without high levels of safeguard, it can be dangerous to both the environment and the individuals involved in it.

To tackle this, EU regulations have created a list of approved facilities for ship recycling, not all of which are in the EU—the Minister told us last week that some facilities are in Turkey and the USA. The approval process for those facilities involves inspection, which is complex and expensive, particularly for those outside the EU.

Like the other no-deal SIs, this one removes references to the EU and gives substitute powers to the Secretary of State. However, it goes further. Paragraph 7.3 of the Explanatory Memorandum makes it clear that the UK list would initially include all facilities on the EU list. However, it also,

“establishes a new procedure allowing ship recycling facilities worldwide to apply for inclusion onto the new UK approved list”.

Given that there are some very dubious practices in ship recycling in some parts of the world and that it would be very costly for us as an individual country acting alone to inspect and constantly police standards in a yard on the other side of the world, I regard this as a worrying new policy.

I can see that the policy is in the buccaneering spirit of the Brexiteers—“We can do this more cheaply. There are easier ways of doing this. Cut some costs”—but it could mean a dangerous lapse in standards and controls. The Minister assured me this morning that it would not lead to a lapse in standards, so my purpose in speaking is to invite her to reassure us on the Floor of the House that the Government are not looking to expand their list in the way in which the Explanatory Memorandum states, and will take a precautionary approach so as to maintain the highest environmental standards.

--- Later in debate ---

[Baroness Sugg]

It does include some non-EU countries. I am afraid I cannot find the list in my files, but I will write to the noble Lord to confirm which countries are on it. The EU has very high standards of recycling and we will continue to match them after we leave.

The Secretary of State reserves the right to change the list. The power to add new facilities to it is included so that it does not become static. If we did not include this power, it would not be possible without primary legislation to add ship-recycling facilities to the UK list and to mirror what the EU does on its list. Over time, that could reduce the choices that UK ships have, compared with their EU counterparts. Because we will be retaining the standards and criteria for approving ship-recycling facilities used under the current EU regulation, the UK and EU lists will continue to be compiled to the same high standards. The powers in this instrument cannot be used to lower the standards of ship recycling.

If the EU changes its criteria, we will of course consider revising ours along similar lines. We do not think that this will happen for a few years, until the ship recycling regulation—which is fairly new—beds down. The Commission is committed to reviewing the EU regulation 18 months before the Hong Kong convention comes into force. That could lead to amendments to the criteria for ship-recycling facilities on the European list to align it more closely with that convention. If this happens, we will liaise closely with the EU, as our two regimes are virtually identical. Again, any change to those criteria would need to be done through regulation.

The EU regime is one of the strictest in the world. We are committed to maintaining those high standards, regardless of our membership of the European Union. I am happy to confirm that there are no—

[Baroness Randerson]

I appreciate the Minister’s attempts to reassure us. I ask her to go back and look at paragraph 7.3 yet again to see whether the Explanatory Memorandum needs to be recast, because both I and the noble Lord, Lord Berkeley, have quoted things from it which give a different impression of government policy. I am relieved to hear what the Minister has to say. I accept it totally, but there is a gap between what she is saying to us here today and what the Explanatory Memorandum appears to suggest. That could lead to confusion in the future.

[Baroness Sugg]

I have read the Explanatory Memorandum a number of times. I do not think it is contradictory, but I acknowledge that perhaps further reassurance could go into it. I will certainly follow up in writing and place copies in the Libraries of both Houses to provide that reassurance.

No facilities on the UK list are in Bangladesh, India or Pakistan, but I will send the noble Lord the full list.

As I was saying, the EU regime is currently one of the strictest in the world. It has incredibly high standards, and we are committed to maintaining them regardless of our membership of the EU.

Railways: Reliability

Baroness Randerson Excerpts

Wednesday 23rd January 2019 Lords Chamber

[Baroness Sugg]

It will not surprise the noble Lord to hear that I do not agree with him on that point, but I acknowledge that the rail system as it stands is not perfect. We have an ageing railway, which is at capacity. We need to look at how we run things and that is what we are doing through the rail review. It has been well over a decade since the last big change in the rail network. While we have seen record private investment and many more services, the system has of course had its challenges. We think that the time is right for a comprehensive review to ensure that our railways are run in the best way that they can be.

[Baroness Randerson (LD)]

My Lords, this is a specific example, but one of many that have been brought to my notice. In the three months leading up to Christmas, Southern Rail cancelled the Wallington to Victoria service 205 times and it was delayed 896 times. That is 1,101 times that passengers on that route faced disruption and misery. How can the Government justify a 3.2% fare hike on that route in the light of such appalling service—or are the Government not responsible for the fare hike either?

[Baroness Sugg]

My Lords, we have frozen fares in line with inflation, but I understand the frustration that people must feel when they have seen such significant disruption. We do of course have a compensation scheme that actually amounts to more than the rail fare freeze would be. On the particular line that the noble Baroness mentioned, London Victoria has 240,000 passengers a day. Over the Christmas and new year period, we did some work to improve reliability and make space for new services, and 99% of those engineering projects were completed on time. We installed new tracks, points, signalling and overhead structures to help improve the reliability of services at London Victoria.

Merchant Shipping (Recognised Organisations) (Amendment) (EU Exit) Regulations 2019

Baroness Randerson Excerpts

Wednesday 23rd January 2019 Grand Committee

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)]

My Lords, the draft regulations that we are considering will be made under powers in the European Union (Withdrawal) Act and are needed if we leave the EU in March without a deal.

Recognised organisations, or ROs, play an important role in ensuring that ships are built and maintained to operate in compliance with standards on safety and the prevention of marine pollution. They carry out these functions on behalf of maritime nations. In the UK, the Maritime and Coastguard Agency delegates about 85% of its survey work to ROs.

Globally, the International Maritime Organization develops rules on ROs. The IMO’s Recognized Organizations Code entered into force in 2015. The code contains criteria against which ROs are approved, authorised and assessed, and gives guidance on how flag states should monitor ROs.

The EU has adopted legislation to harmonise the way in which member states implement those IMO requirements. Under EU legislation, member states may delegate the inspection and survey of ships to EU-recognised ship inspection and survey organisations, or EU ROs, by authorising them to act on their behalf. At present there are 12 EU ROs. Six of them have been authorised to act on behalf of the UK. The Maritime and Coastguard Agency intends that these six ROs would remain authorised by the UK and be recognised as UK ROs following our exit from the EU.

The MCA regularly meets UK-authorised ROs and has kept them informed of these proposals. They have raised no objection and understand why the changes are needed to ensure that the UK continues to have a functioning statue book for the approval of ROs.

EU Regulation 391/2009 and related legislation established a system for approving ROs; criteria for assessing RO performance, which is based on IMO criteria; monitoring measures and remedial measures if ROs are underperforming, including fees and penalties and, finally, the removal of RO status.

The European Union (Withdrawal) Act retains in UK law EU directly applicable legislation, such as that on ROs. It makes provision in Section 8 to correct deficiencies in such EU legislation as arises from the UK leaving the European Union. We need to amend that retained EU legislation on ROs for the legislation to function correctly in the future. The regulations will therefore amend EU Regulation 391/2009 and subsidiary EU legislation, and they will make the changes needed to adapt an EU system for ROs to one that can function as a UK system after exit. The regulations will change references to “Member State” and “the Commission” to “Secretary of State” or “the United Kingdom” where appropriate, and they will change definitions and other wording to reflect the UK’s position outside the EU. Redundant reporting requirements have been removed.

Powers have been transferred from the European Commission to the Secretary of State in relation to standards for RO performance and to keep up with changes in the minimum performance criteria for ROs, especially in the light of IMO changes. In addition, the powers of the Commission to regulate in Article 14 of Regulation 391/2009 have been transferred to the Secretary of State. This will enable the Secretary of State to legislate in order to establish criteria to measure the effectiveness of the rules, performance and procedures of ROs and criteria to determine whether an RO’s performance is an unacceptable threat to safety and the environment. The Secretary of State will also be able to legislate to make and amend rules for imposing fines and penalties and ultimately for withdrawing recognition, and rules for interpreting the minimum criteria for ROs.

The regulations include provision to ensure that ROs that are, immediately before exit day, both recognised by the EU and authorised by the UK continue to be recognised after we leave. These ROs will become recognised directly by the UK and will continue to be authorised by the UK through new agreements to be put in place with the ROs before exit day. That will help provide ROs with certainty and clarity. Another transitional provision will ensure that ROs continue to maintain an independent quality assessment certification entity.

Commission Decision 2009/491 relates to using data from port state control inspections of ships to assess the work that ROs do. The regulations make changes to the decision to replace an EU procedure with powers to amend criteria for using port state control data. Article 8(1) of Regulation 391/2009 provides for assessment of ROs every two years by the Commission and the member state that put forward an RO for approval. The regulations retain the two-yearly assessment but transfer responsibility for it to the Secretary of State.

The regulations also transfer powers to review fines and penalties from the European Court to the UK courts by way of a statutory appeals procedure. Finally, they remove provisions relating to derogation from certain provisions of international law in Article 13(2) of Regulation 391/2009 and Commission Implementing Regulation 1355/2014. In the case of the latter, this has been revoked. The EU introduced these derogations on the basis that they appeared to be incompatible with EU law. We do not regard the provisions as incompatible with UK law and, as the UK did not lodge objections to them in the IMO, any attempt to derogate from them would be in breach of the UK’s international law obligations.

These regulations will be accompanied by Merchant Shipping Notice 1672. This provides information to the industry on the standards that ROs apply and on requirements for recognising, authorising and monitoring ROs. This shipping notice has been drafted and will be issued once the SI has been passed.

I should also mention Directive 2009/15, which governs the relationship between flag states and ROs. The UK implemented the directive administratively through formal agreements between the MCA and each RO. The directive will not be saved in UK law after exit. However, the MCA will put in place new arrangements with each RO when the regulations come into force. These will be very similar to the current arrangements between the MCA and the ROs but will reflect the changes made in these regulations.

The changes made in these regulations are needed to ensure that the law on recognising, authorising and monitoring ROs continues to function after the UK’s withdrawal from the European Union. This will enable the UK to continue to comply with its international obligations to ensure the safety of ships and the prevention of pollution. I beg to move.

[Baroness Randerson (LD)]

My Lords, these regulations involve ship inspections. The four sets of regulations this afternoon will lead me to repeat myself on a couple of occasions because the same themes come through in each one. All of them have safety issues at their core. The current EU-based system will be replaced with a UK-only system. As I understand it, it will continue to work within a system of international standards and the new legislation will retain existing criteria for the recognition, authorisation and monitoring of ROs: so far, so good. But ships move about and currently we have obligations to report to the EU to share information. How will this sharing happen effectively in future? Most of our ships will be sailing through EU waters at some point in their journey and many of the ships that visit our shores are EU ships. We need to know how that information is going to be shared in the future because of the safety implications.

The inspection of ships, both UK and foreign ones, is a key issue for the safety of ports. Therefore, I was quite surprised to read that there has been no formal consultation. Reasons were given on each of these SIs why there was no formal consultation. If you take the SIs together they are a pretty significant bundle of legislation and would be worth consultation in the round, if not as individual pieces of legislation.

It states in the Explanatory Memorandum that the Secretary of State will be given power to make subordinate legislation. Can the Minister clarify whether this will be an affirmative or a negative procedure?

Finally, the list of ROs we have been provided with makes for interesting reading. I do not in any way pretend to be an expert in these issues. Can the Minister enlighten me as to how this list is drawn up? How is this rather disparate list of organisations there and how do we change it? What are the criteria for changing it if we want to? I would be grateful for some information on that.

[Lord Tunnicliffe (Lab)]

I thank the Minister for presenting this instrument. I have no great problem with it but I lack a little bit of understanding. The first thing I would like to be clear on is whether this is a no-deal instrument, that is, something that needs to be processed quickly because it is necessary if we fall out of the EU without a deal—which in my view and that of my party would be the least satisfactory outcome. I can see that the instrument does its work in the event of a no deal; I am not so clear about what happens to it if there is a deal. Will it be repealed or will it be paused? Will it continue to exist? The Minister may find it efficient to answer that question referring to all four statutory instruments if it is the same answer.