Aviation Security (Amendment etc.) (EU Exit) Regulations 2019
Baroness Sugg Excerpts(5 years, 9 months ago)
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Baroness Sugg
That the draft Regulations laid before the House on 31 January be approved.
Relevant document: 16th Report from the Secondary Legislation Scrutiny Committee (Sub-Committee A)
The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)
My Lords, the draft regulations will be made under the powers contained in the European Union (Withdrawal) Act 2018 and will be needed if the UK leaves the European Union without a deal. The instrument amends EU Regulation 300/2008 and its subsidiary legislation, which sets out the EU rules on aviation security standards that apply to airports, air carriers and entities with access to secure areas at airports. It governs matters such as the screening of passengers and cargo, access control and the vetting of staff.
The draft instrument corrects seven EU instruments which provide the framework for the security of passengers and cargo travelling by air. It also makes some minor changes to the Aviation Security Act 1982. Regulation 300/2008 establishes the framework for the aviation security regime in the European Union and sets out the common basic standards. It covers everything from passenger and cargo screening to staff recruitment and training and technical equipment specifications.
The draft instrument makes changes to the scope of the retained regulation to reflect that the UK will no longer be part of the EU after exit day. The retained regulation will apply to all flights departing from an airport in the UK. It will also retain provisions regarding inbound cargo, which I will come to later. The amendments limit its scope to the United Kingdom and remove provisions that will no longer apply to the United Kingdom. The amendments also replace legislative powers exercisable by the Commission or member states with regulation-making powers exercisable by the Secretary of State. In essence, the security screening requirements for all direct passenger flights to and from the UK will remain as they are today.
Regulation 272/2009 supplements the common basic standards by including additional provisions on aspects such as the methods of passenger and baggage screening permitted. It also sets the criteria for recognising the equivalence of security standards of third, non-EU countries when considering exemptions from these screening procedures for passengers transferring at EU airports. The supplementary requirements relating to aspects such as the types of permissible screening method remain unchanged. References to Commission legislative procedures are replaced by reference to domestic legislative procedures, at the same time maintaining equivalent levels of scrutiny.
The provisions relating to the criteria for EU recognition of the equivalence of third-country security measures with EU aviation security standards are deleted. This is because the concept of “equivalence” with the baseline standards in the retained EU regulations does not make sense in a UK-only context where we apply additional measures over and above that baseline. In the future, the UK will retain the ability to make determinations in relation to One Stop Security through Secretary of State direction-making powers under the Aviation Security Act. This power would be exercised on the basis of an assessment of equivalence with the totality of UK aviation security standards.
The third EU regulation covered by this instrument is Regulation 1254/2009, which sets out the conditions under which alternative security standards to the common basic standards may be applied. It covers, for example, non-commercial flights, where the full passenger screening requirements may not be necessary. It allows that for such flights, the common basic standards contained in the main framework regulation may not be appropriate and alternative security measures may be more appropriate. Specifically, such flights might involve light aircraft with a maximum take-off weight of less than 15,000 kilograms; law enforcement flights; flights for medical services, emergency or rescue services; or certain private or business aircraft flights. The draft instrument makes no changes to these criteria.
Regulation 2015/1998 implements the common basic standards by prescribing more detailed requirements. This covers matters such as airport security and planning, aircraft search, passenger and baggage screening, cargo and mail security, training and recruitment, security of supplies available in airport shops and on board aircraft, and technical equipment standards. It makes detailed provision for the practical implementation of the measures contained in Regulation 300/2008. All of these aspects are essential to aviation security and this instrument retains the provisions, subject to the necessary amendments to remove specific EU references.
One key area of Regulation 2015/1998 is the EU inbound cargo regime. The EU operates a regime known as ACC3, which stands for “Air Cargo or Mail Carrier operating into the Union from a Third Country Airport”. In essence, this is a requirement for air carriers carrying cargo into the EU from a non-EU country to hold security designations. These designations confirm that they are screening cargo to the required standards and that a secure supply chain exists from the origin of the cargo to its point of entry into the EU. Responsibility for administering this system and granting designations is currently shared between member states. If the UK leaves the EU without a deal, it will no longer be part of this system, but it is of course critical that we maintain our inbound cargo security protections. The effect of this draft instrument is to retain the requirement that carriers must hold a security designation in order to fly cargo into the UK from third countries, and to apply this in a UK-only context. The new system of UK-ACC3 designations will be managed by the Civil Aviation Authority and the Department for Transport. In order to ensure a seamless transition on exit day, new UK designations will be issued to all carriers flying into the UK who currently hold EU designations. On expiry, carriers and screening entities will need to apply directly to the UK for new designations in the event of no deal. New designations will be granted using largely the same criteria as the existing system to minimise any additional burden on industry.
Regulation 2019/103 amends Regulation 2015/1998. The amendments that come into force before exit day have already been incorporated into Regulation 2015/1998 and will be retained and amended accordingly. The amendments that come into force after exit day do not form part of retained EU law. The only provision in Regulation 2019/103 that becomes part of retained EU law on exit day deals with the coming into force date of those later amendments. As the provision does not therefore serve any purpose, it is revoked by this draft instrument.
Regulation 72/2010 covers the requirements for Commission inspections of EU airports and national authorities, which will no longer be applicable, so the draft instrument revokes this regulation. The draft instrument also amends the Aviation Security Act 1982 to remove references related to Commission inspections and inspectors.
Finally, in this instrument, Decision C (2015) 8005 contains detailed provision relevant to and in parallel to the detailed provision in Regulation 2015/1998. This Commission decision is a restricted confidential instrument which contains sensitive information necessary to require airports to carry out effective security procedures. Because of the security-sensitive nature of the provision it makes, for example, on the types and quantities of material used for equipment testing, the decision is circulated only on a “need to know” basis and is not published.
Under the withdrawal Act, EU instruments not published before exit day are not required to be published on exit day and therefore cannot be meaningfully amended by this draft instrument. In order to retain the important aviation security rules contained in the decision, the requirements previously contained in it will instead be imposed by a direction. The direction will be given by the Secretary of State under powers contained in the Aviation Security Act 1982. The direction will form part of the single consolidated direction which sets out our domestic aviation security requirements that apply on top of EU legislation. The direction is regularly updated and a new version, incorporating the content of the decision, will be issued prior to EU exit. The content of the new direction will be disseminated to the same UK entities as those which currently see the EU decision.
The best outcome is for the UK to leave the EU with a deal, and delivering a deal negotiated with the EU remains the Government’s top priority. However, as a responsible Government, we must make all reasonable plans to prepare for a no-deal scenario. This draft instrument ensures that in the event of a no-deal exit from the EU, the legislative framework for aviation security will give the aviation industry clarity about the regulatory framework in which it would operate in a no-deal scenario. It will ensure that we can continue to keep passengers and our aviation infrastructure safe and secure. I beg to move.
Baroness Sugg
I thank noble Lords for their consideration of these draft regulations. I agree that this is an important SI, dealing with vital security at our airports and in our skies.
The noble Baroness, Lady Randerson, and the noble Lord, Lord Rosser, asked about future regulation-making powers, and I apologise that these were not specified in the EM. Currently, three legal processes are used for agreeing amendments to EU aviation security, and that depends on the level of the regulation. Essentially, we are following what has been done under the previous regulation.
In order to maintain equivalence between existing EU procedure and the proposed UK procedure for making future amendments, the statutory instrument provides the Secretary of State with powers to make amending regulations by affirmative resolution for amendments to provisions currently covered by Regulation 300/2008 and the overarching Regulations 272/2009 and 1254/2009, and by negative resolution for amendments to provisions currently covered by Regulation 2015/1998 and the amendments to that.
Lord Berkeley
Does that mean that the Secretary of State intends, through the amendments the noble Baroness has mentioned, that the regulations will stay in line with the European ones as they develop?
Baroness Sugg
I am not able to give the noble Lord that reassurance as we are not sure how EU regulations will develop. However, we are of course committed to maintaining our high security record. As has been mentioned, we already have more stringent measures and that will continue.
On the more stringent measures and the Commission decision, the Aviation Security Act gives the Secretary of State powers to give directions to or serve notices on specified parties—for example, directly to air carriers or airports—for the purpose of discharging his aviation security responsibilities. The single consolidated direction is a compilation of the various directions and, after the UK exits from the EU, the single consolidated direction will continue to refer to the retained EU legislation, supplemented already, as I have said, by the more stringent measures. This is essential to maintaining our existing aviation standards, which will be continually assessed and modified, where necessary, to reflect the current threat picture.
The single consolidated direction will also be used to set out the content of the Commission decision, and the content decision will continue not to be published. The information was not published before and will not be published in the future. I understand the noble Lord’s concerns about that but, obviously, if more details were out there on the specifics of what was needed for aviation security that would put us at risk—for example, the specifications of screening equipment, the volume of detection, the criteria for the random testing of airport supplies, details of the exact screening requirements such as what percentage of passengers are checked, and the green list for aviation security. There is no change in this.
Lord Rosser
I appreciate that there are security issues involved—I do not pretend otherwise and the Minister may think this unnecessary—but is it still not possible for the Secretary of the State to publish something at least saying what general areas the regulations or amendments he has made cover without being specific about what they said?
Baroness Sugg
That would be a new development. As I say, the SI ensures that we continue what we have done previously. However, I will take back the noble Lord’s suggestion to consider whether in the future we could do that.
The noble Lord, Lord Rosser, also asked who will be inspecting the CAA, the Secretary of State and airports after exit day. We will continue to maintain our high standards. We will be part of the ICAO and may have EU inspections for one-stop security purposes. This country has an excellent record of aviation security and will continue to have it after we leave the European Union.
The noble Lord, Lord Rosser, asked about derogation from standards. Some small airports and demarcated areas within airports already have some derogation. That is what we are carrying over. There are no plans to ask for additional derogations.
On civil aviation security equipment manufacturers, the noble Baroness, Lady Randerson, asked about standards. I point to the European Civil Aviation Conference which, despite its name, is a branch of the International Civil Aviation Organisation and is made up of 44 member states. We will continue to play an active role in ECAC after Brexit and that will include contributing to the development of improved standards on security equipment. ECAC also undertakes testing of aviation security equipment to certify that it meets the required standards. We will maintain that relationship. Any international manufacturer producing such equipment can submit it to ECAC for testing and certification and that is the standard we will continue to use. There should not therefore be any other barriers to UK manufacturers supplying EU airports post EU exit.
On ACC3—this is an important part of the SI—I say to the noble Lord, Lord Berkeley, it is not our choice that we will no longer be part of this scheme. It is an impact of leaving the European Union without a deal. The scheme is open only to member states and, if we leave without a deal, we will no longer be a member state. This is not a policy choice that we are taking; it is an effect of us leaving if we leave without a deal. That is why we have had to bring in a new system.
We want to minimise disruption and additional burdens on industry while maintaining our standards. That is why we have the new UK ACC3 designation and that will be issued to all carriers and the supply chains which currently hold the EU designation. We have consulted carefully on this and, prior to leaving, the CAA will formally confirm the new UK ACC3 designations for carriers and that will be reflected in the UK ACC3 database. However, as the noble Baroness pointed out, this is a moving feast. There will be new cargo flights for existing designations and, when they are due for renewal, carriers in that instance will have to apply directly to the UK for the new ACC3 designation. In order to manage the new regime we will need to maintain a record of all granted designations. In a no- deal scenario, we will lose access to the EU database that forms the backbone of the EU ACC3, comprising the approved carriers, the entities and the validators. We will need a new system and that is what we have set up. However, we will ensure that that continues to maintain our high security standards and minimises disruption.
In the current system, to which the noble Lord referred, the UK has a responsibility for designating certain destinations to form part of the EU system. That will also be removed and the EU will take on that role.
On compliance and inspection of airports, as I mentioned earlier, the EU has said that it will recognise one-stop security and we expect some EU inspections in the future. However, domestic aviation security compliance is already managed by the CAA and will continue to be so after exit day.
The noble Baroness, Lady Randerson, raised the important issue of costs. As the basic aviation security requirements will not change, any costs to the industry will be minimal. There will be modest administrative costs to air carriers on expiry of their existing designations because of the change in the ACC3 system. We have aimed to minimise additional costs. The evidence required for both systems will remain the same, so carriers should be able to pay for a single independent validation report and submit it to both the UK and EU authorities. There is no direct charge to carriers applying for an EU ACC3 designation and the CAA will not impose a direct charge on that either. I agree with the noble Lord that it would be easier to stay with the same system but, as I say, it is a consequence of leaving with no deal.
On the question of the noble Lord, Lord Rosser, about how the current system on costs works, the current regulations allow member states to decide how to allocate the costs of aviation security, subject to the relevant rules of Community law. That means that member states do it differently. There are some that use central funding for it. In the UK currently we have the user-pays principle: the costs are borne by the airline and the airports and ultimately passed on to the consumer. Industry meets those costs by virtue of the charging system under Section 11 of the Civil Aviation Act 1982, and that arrangement is expected to continue after we leave.
On the cost to government, another point raised by the noble Baroness, Lady Randerson, the CAA already has the expertise to assess applications for cargo security designations under what it does in the EU system and it is making appropriate contingency preparations to deliver continuity under that scheme. It has incurred a one-off cost in developing the new database to assist in administration. That cost is around £150,000 and will be funded out of the CAA EU exit programme contingency fund provided by the Department for Transport. There may also be a modest increase in CAA resources required to administer the system in the future. We expect that to be around two full-time posts a year.
I hope that I have answered the majority of the questions. If I have missed any I will follow up in writing. As I have said, delivering a negotiated deal remains our top priority. This SI makes it clear what the benefits of delivering a deal will be and what the implementation period will be. However, in the event of no deal, it is essential to ensure that a crucial part of the regulatory framework for civil aviation continues to work effectively after exit day and that passengers continue to benefit from the level of security we see today.
Merchant Shipping (Marine Equipment) (Amendment etc.) (EU Exit) Regulations 2019
Baroness Sugg Excerpts(5 years, 10 months ago)
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Baroness Sugg
That the draft Regulations laid before the House on 16 January be approved.
The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)
My Lords, these regulations will be made under powers in the European Union (Withdrawal) Act, and are needed if we leave the EU without a deal. Marine equipment, as we are discussing today, is the collective term used to describe a ship’s safety and pollution prevention equipment. Examples include lifejackets, fire extinguishers and navigation lights.
Marine equipment is regulated globally by the International Maritime Organization, the IMO, under three international conventions: the International Convention for the Safety of Life at Sea, the International Convention for the Prevention of Pollution from Ships and the International Regulations for Preventing Collisions at Sea. Collectively, these international conventions require flag state administrations, such as the UK, to ensure that marine equipment complies with certain safety requirements regarding design, construction and performance standards; and to issue the relevant certification before equipment is installed on board a ship flying its flag. The flag state in the UK for these purposes is the Maritime and Coastguard Agency, the MCA.
Historically, each EU maritime administration had its own systems and requirements for the approval or conformity assessment of marine equipment. To help the free movement of goods, the EU adopted legislation to harmonise the way in which EU member states implement the IMO conventions. This legislation allows member states to designate conformity assessment bodies on behalf of the EU to issue an EU-wide approval for marine equipment.
Marine equipment approved in accordance with the EU legislation may be installed on any EU-registered ship, and the international obligation of each EU member can be discharged accordingly. The MCA, on behalf of the Secretary of State, has designated 10 conformity bodies for the EU which approve marine equipment in the UK. In the event of no deal, the MCA intends to convert these 10 bodies from EU-notified bodies to UK-approved bodies, to allow for continuity in the method of approval for marine equipment in the UK, and to ensure that the UK continues to meet its international obligation.
The MCA regularly meets with these 10 bodies and has kept them informed of the proposals. The 10 bodies have been supportive to ensure that the UK continues to have a functioning statute book. Similarly, the MCA regularly meets with manufacturers of marine equipment, and has received only positive feedback on the proposed instrument.
The EU directive 2014/90, known as the marine equipment directive, and related legislation established the harmonised EU system, criteria for designating conformity assessment bodies, mechanisms for ensuring the compliance of equipment, and remedial measures for removing risks to the safety of life. The regulations in this case, which this SI is changing, includes the Merchant Shipping (Marine Equipment) Regulations 2016, which implement the 2014 marine equipment directive in UK law. The Act also makes provision in Section 8 for regulations to correct deficiencies in retained EU law arising from the UK’s withdrawal from the EU.
These regulations make the changes needed to the marine equipment regulatory framework to adapt the EU approval system to one that can function effectively as a UK approval system, if we leave without a deal. The regulations retain the status quo as far as possible to avoid market confusion and allow continuity of operations for manufacturers. Specifically, the regulations do not change the design, construction and performance standards applicable to marine equipment; the methods for conformity assessment of marine equipment; the requirements to become a designated conformity assessment body; and the mechanisms for protecting the UK market against fraudulent or unsafe equipment. The regulations will allow UK ships to continue to use marine equipment that has been approved under the EU system. However, the regulations also establish a new approval system. The regulations make changes needed to ensure the UK approval system works, for example by changing references to “member state” and “the Commission” to “the United Kingdom” and “Secretary of State”.
Noble Lords may be aware that, once again, the SLSC recommended that these regulations be upgraded to the affirmative procedure. Again, I am grateful to the committee for its careful consideration of the regulations. The committee noted that in a no-deal situation it is the Government’s long-term aim that UK ships will use the UK approval system only. The committee was concerned about the additional costs for manufacturers that might need to seek an EU approval as well as a UK approval. As we set out in the new Explanatory Memorandum, the regulations before the committee do not place any limit on how long the UK ships can use EU-approved equipment. Therefore, there will be no additional costs for manufacturers as a result of this SI. If anything were to change in the future, the Government would introduce regulations to remove the time limit only after widespread consultation and careful consideration of the costs and benefits.
Lord Adonis (Lab)
The Minister said that there would be no additional costs to manufacturers. But will there be additional costs to ship owners—that is, to the consumers?
Baroness Sugg
No. There is no time limit in these regulations on how long UK ships can use EU-approved equipment. The regulations allow UK ships to use EU-approved equipment or UK-approved equipment, but there is no time limit on that, so there should be no additional costs. There will be small familiarisation costs, but no significant costs.
The regulations also establish a UK conformity mark for the new UK system. UK ships will carry equipment that bears either the EU wheelmark or the new UK mark. The only significant difference between the UK and EU approval systems is that the EU system requires a manufacturer outside the EU to appoint an authorised representative in the EU; the UK system does not require this. We decided to make this authorised representative requirement voluntary to avoid creating a barrier to the new UK system.
The regulations include transitional provisions to smooth the transition from the EU to the UK approval systems. First, UK conformity assessment bodies that, immediately before exit day, are designated EU-notified bodies will automatically be converted to UK-approved bodies, which will be authorised to carry out conformity assessment activities for the UK. That gives certainty to the 10 UK-based conformity assessment bodies of their status after exit day.
Secondly, any application for conformity assessment lodged with a UK body before exit day for EU approval will be treated as an application for UK approval after exit day. In that way, a manufacturer will not need to make another application for conformity approval if it has not been determined.
Finally, the regulations will revoke Commission Implementing Regulation (EU) 2018/733 because these implementing regulations communicate the IMO technical standards applicable to marine equipment, which are updated annually. The MCA currently replicates these in Merchant Shipping Notice 1874 and will continue to communicate the standards in this way. Accordingly, the implementing regulations will become outdated in a year.
Merchant Shipping Notice 1874, Amendment 3, also provides information pertaining to the UK bodies that carry out conformity assessment activities on the UK’s behalf, and information on the UK’s market surveillance procedures and other technical information that bears no substantive changes. In addition to the merchant shipping notice, the regulations are supported by two marine guidance notes, which replace MGNs 554 and 557; one is addressed to applicant conformity assessment bodies and the other relates to the UK’s approach to market surveillance. The marine guidance notes do not change the substance of the notes that they replace.
Finally, the MCA will be publishing a plain English marine information note, which I am sure will be very welcome. It will explain the UK system for marine equipment approvals and substantive changes from the EU system and it will address each major stakeholder—namely, UK ships, UK conformity assessment bodies and manufacturers.
The changes made in these regulations are needed in the event of no deal. They will ensure that the law on conformity assessment of marine equipment continues to function effectively after the UK’s withdrawal from the European Union in the event of no deal. They will enable the UK to continue to comply with its international obligations to ensure that equipment installed on board its ships is approved to the relevant, applicable international standards. I beg to move.
Amendment to the Motion
Lord Rosser
I knew I would get approval for at least something I said. I take this opportunity, after a fairly long evening, to express my thanks to the Minister for dealing with these SIs in her usual good-natured and patient manner.
Baroness Sugg
I thank noble Lords for their consideration of the final regulations of this evening. International conventions require each flag state administration to approve marine equipment, and once we have left the EU it would not be appropriate for the UK to fulfil its international obligations through an EU system that we can no longer influence. That is why we are setting up the UK system. It will allow the 10 UK-based conformity assessment bodies to continue offering services to the UK market. If we allowed only EU-approved equipment, those bodies would be in the strange position of having to relocate to the EU to provide to the UK market.
We understand that we need to ensure that the UK bodies can continue to offer EU-approved equipment. The new regulations apply both to existing ships and new ships, which will all be able to use either EU-approved equipment or UK-approved equipment. That does not have a time limit currently. The Government will consider whether we should move towards the UK system, but that would be done only after very careful consideration and consultation with the industry.
There will be no reduction in standards under the regulations. As I said in my opening statement, they retain the existing international standards set at IMO level, and that is what we will stick to. They apply the same familiar process and procedures to marine equipment approvals, to minimise disruption to industry. As the noble Baroness, Lady Randerson, noted, some of the 10 UK-based EU-notified bodies have a global client base—and long may that continue. They are global operations and have offices internationally. We anticipate that some of the UK-based notified bodies with offices in the EU will make contingency plans to enable them to maintain their EU-notified body status, but we have no information about any of the UK-based notified bodies moving there. These are global companies that provide to a global market, and we expect them to be able to continue to do so.
Both the EU system and the new UK system are established on IMO standards, so manufacturers do not need to produce to two standards. A UK manufacturer may maintain its existing EU approval and keep EU market access, while also maintaining UK market access.
No formal consultation has been done on this instrument, but the MCA and the department regularly meet the assessment bodies and the manufacturers. Both groups recognise that the regulations are needed to maintain the status quo, and I am pleased to be able to say to the noble Lord, Lord Rosser, on our final SI this evening, that both the UK Chamber of Shipping and Nautilus, the seafarers union, are participants in the MCA industry committees, and have been consulted. These meetings occur very frequently, every three to six months.
This statutory instrument is necessary: if the House does not approve it, there will be no legal basis for UK notified bodies to continue operating in the country. The companies and those who work for them would therefore face uncertainty. If this SI were not approved, we would not be able to accept equipment from the EU or investigate non-compliance. So it is essential. We have not carried out a full impact assessment of the regulations because their purpose, intent and real-world effect is to do everything possible to minimise cost and disruption. Noble Lords should be aware that the impacts and costs to business of not making these regulations would be significantly higher—as I said, it would lead to uncertainty.
I hope that I have managed to address the points that have been raised. I thank all noble Lords who contributed to the transport SI debates. I am genuinely grateful for their scrutiny; these are important pieces of secondary legislation, and the House is certainly doing its job in scrutinising them. Marine equipment approvals are, of course, vital to ensuring the safety of those on board ships and the protection of the marine environment. I hope that noble Lords will agree that this SI is essential to ensure that the legislation on marine equipment approvals will continue to work effectively in the UK in the event of no deal.
Lord Adonis
My Lords, I join in the appreciation of the Minister for the meticulous way in which she has handled our debates this evening. However, I want to clarify one point: that when the Explanatory Memorandum uses the word “choice”, it means that there will indeed be a choice on an ongoing basis, and that ships and their owners will be able to choose whether they have EU-approved and certified or UK-certified equipment—they will not have to shift from one to the other by virtue of the fact that they are purchasing the equipment after exit day.
Baroness Sugg
That is indeed the case. They have a choice: UK or EU. That is for new and existing ships and there is no time limit on that choice through the regulations.
Lord Adonis
My Lords, I thank the Minister for clarifying that point. My one final remark is that a felicitous moment in the debate was the revelation that the noble and learned Lord, Lord Mackay, is an Elder Brother of Trinity House. He shares that great distinction with Sir Winston Churchill, who used to appear frequently in the uniform of an Elder Brother of Trinity House. I hope that the noble and learned Lord might do so in future in the House, so that his great and esteemed rank is fully on display. On that note, I beg leave to withdraw the amendment.
Motor Vehicles (Compulsory Insurance) (Amendment etc.) (EU Exit) Regulations 2019
Baroness Sugg Excerpts(5 years, 10 months ago)
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Baroness Sugg
That the draft Regulations laid before the House on 24 January be approved.
The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)
My Lords, these draft regulations will be made under the powers in the European Union (Withdrawal) Act 2018, and will be needed if the UK leaves the European Union in March without a deal. The Government are seeking reciprocal arrangements on motor insurance following our exit from the EU, but in the event of no deal, without that agreement we must ensure we have a functioning statute book.
These regulations amend various domestic legislation to correct deficiencies in the legal framework for compulsory motor insurance which arise as a result of the UK leaving the EU without a deal. The draft instrument seeks to maintain the status quo with regards to compulsory motor insurance, making technical changes to ensure insurance requirements for vehicles in the UK are preserved, as well as amending redundant references to the UK being a member state. They also remove specific obligations on the UK’s Motor Insurers’ Bureau—the MIB—under the Protection of Visitors scheme, commonly referred to as the “visiting victims” scheme. If these changes are not made, the obligations would remain unilaterally upon the MIB in the event of no deal. These changes come into effect on exit day.
This SI was initially laid as a proposed negative instrument, but we have happily accepted the committee’s recommendations to re-lay it using the affirmative procedure instead, acknowledging its concerns about the impact of these changes on UK citizens.
It may be helpful to give noble Lords some background to the legislation being changed. In 1930, the UK Government introduced a law that required every person who used a vehicle to have at least third- party insurance. Today, compulsory motor insurance requirements are governed at EU level by the consolidated motor insurance directive, which is implemented in the UK through the Road Traffic Act 1988 and subordinate legislation. The amendments in this SI are necessary to uphold motor insurance requirements as they currently stand in the UK, if we leave the EU without a deal.
The instrument also deals with requirements under the codified EU motor insurance directive for member states to make arrangements to allow victims injured in a road accident in an EEA country, other than in their home state, to claim compensation when they return home. This is facilitated through insurance undertakings, with member states appointing in all other member states a claims representative to handle and settle claims by victims injured in accidents abroad.
Each member state must also appoint a compensation body which is responsible for providing compensation in certain circumstances where insurance undertakings, through the claims representative, fail to do so. These circumstances include, for example, where there is no claims representative or where the claims representative fails to provide a reasoned response to a claim within three months. In the UK, the Motor Insurers’ Bureau currently fulfils the compensation body role, and is reimbursed by its foreign counterparts under the motor insurance directive.
The amendments made by this SI are twofold. First, it makes amendments to reflect that, once the UK is no longer a member state, the motor insurance directive will no longer apply in respect of the UK. If we did not make these changes, which relieve the MIB of obligations under the visiting victims’ scheme, the Motor Insurers’ Bureau would be required to continue to reimburse its foreign counterparts in respect of EU 27 visitors injured in the UK. It would also have cost exposure for claims continuing to be made by UK residents injured in the EU, but without being able to seek reimbursement from its foreign counterparts. There will no longer be an obligation under the Motor Insurance Directive on insurance companies based in the EEA to appoint a claims representative in the UK, as is currently required. The Motor Insurers’ Bureau could therefore face the additional cost of handling claims that would previously have been dealt with by claims representatives from EEA countries. The additional cost burden would most likely be passed on to the bureau’s members through their membership levy; in turn, they could be expected to pass it on to UK motorists through higher insurance premiums.
The proposed change under this statutory instrument therefore relieves the Motor Insurers’ Bureau of obligations under the visiting victims’ scheme and removes the potential cost burden that would fall on the Motor Insurers’ Bureau if the legislation remained as it was. In future, without the visiting victims’ provisions, UK residents injured in a road traffic accident in the EEA will still be able to make a claim, but may need to do so outside of the UK.
The rest of the amendments make technical changes to domestic legislation that are limited to what is needed for the legislation to continue to function effectively once the UK has left the EU. They maintain the status quo in respect of compulsory motor insurance requirements. They also ensure that it remains the case that no insurance checks are carried out for vehicles entering the UK from the EU, and travelling between Great Britain and Northern Ireland.
On Northern Ireland more specifically, the UK Government remain committed to restoring devolution in Northern Ireland, but in the continued absence of a Northern Ireland Executive and in the interest of legal certainty, the Government will take through the necessary secondary legislation at Westminster for Northern Ireland. This SI therefore amends the Northern Irish legislation, which makes provision for Northern Ireland equivalent to the legislation for Great Britain. This has been done in close consultation with the Northern Ireland Civil Service.
In summary, while we are aiming for a comprehensive agreement on motor insurance following the UK’s exit from the EU—we very much hope to get that—these regulations are essential for ensuring that in the event of no deal, the UK’s legal framework for motor insurance is clear and fully enforceable. The rules on compulsory motor insurance are at the heart of the road safety regime and we must avoid any disruption to their proper functioning. I beg to move.
Amendment to the Motion
Baroness Sugg
I thank noble Lords for their consideration of these draft regulations. I start by saying that this is not a situation the Government want to be in. We do not want no deal; we are working very hard to achieve a deal. We do not want to be in a situation where visiting victims provisions are no longer available to UK residents injured in the EEA. That is why we are trying to achieve a deal with the European Union, which is something that I hope will happen very soon. The removal of the visiting victims obligation in respect of the Motor Insurers’ Bureau would be a sensible approach in the event of no deal. It will ensure that the insurance industry and, ultimately, people who pay for insurance documents are not hit with an extra cost—the burden would ultimately fall upon UK motorists.
In response to the specific questions raised, as I acknowledged in my opening speech, this SI was upgraded from negative to affirmative. It did not contain provisions falling within paragraph 1(2) of Schedule 7 to the withdrawal Act, requiring it to be made under the affirmative procedure, but we understand why the committee was concerned and we are happy to relay it in the affirmative procedure.
On consultation, I can confirm that, yes, we speak to the RAC, the AA, personal injury lawyers, the insurance industry, the Motor Insurers’ Bureau, the Financial Conduct Authority and consumer organisations. It may be helpful to reiterate that, in the event of no deal, the motor insurance directive, which facilitates the visiting victims scheme, will no longer apply. A decision therefore had to be made because that would mean that the MIB would continue to compensate UK residents injured in the EEA without the ability to claim reimbursement from its foreign counterparts.
Also, the MIB would have to pay for claims made by EU 27 visitors injured in the UK, without UK visitors to the EU benefiting from those same benefits. Ultimately, this could mean that UK motorists in insurance schemes are paying, without any reciprocity, for EU 27 visitors injured in the UK. As I said, we would like to continue being part of the reciprocal scheme but, by leaving the EU, we will no longer be part of the motor insurance directive and will not be able to do so. I reiterate that this does not mean that UK residents will not receive compensation. They will still be entitled to compensation, although, as the noble Baroness pointed out, this will have to be claimed in the country where the accident happened, which will lead to additional complexities and costs.
Baroness Randerson
Could the Minister please take on board the need for people to know about this? I hope that she will come to the issues of why there was no consultation and the sensitivity of consultation. In view of the fact that there has not been consultation, I note that I have not seen any media coverage at all of this issue. There will be people going on their holidays—over Easter, for example—blissfully unaware of the potential impact of these changes if there is no deal. The Government need to take responsibility for advertising this situation—putting something on the government website would be useful because insurance companies, when granting insurance, could give people a pointer to information on the government website.
Baroness Sugg
I agree with the noble Baroness that the Government have a responsibility to ensure that people are aware of this. A communications campaign was launched in February, which has notified citizens about how the changes to claims can be pursued. It advises that in the event of a no-deal exit, UK residents involved in a road accident while abroad would need to bring their claim in the country concerned. That campaign is live, with radio, digital and social media. The noble Lord, Lord Adonis, heard an advert on Spotify, as he mentioned in a previous debate. We are also directing stakeholders to an external site where they can download and share information with their clients; we will continue to do that.
This is an area where we continue to pursue agreements with other EU countries: we are pursuing bilateral agreements and the MIB is having those conversations with its EU equivalents. The nature of the conversations is sensitive, involving the reciprocal payments of insurance claims; that is why the specific detail has not been published. As I say, we acknowledge that this is not an ideal outcome for citizens. It is a sensible alternative, after weighing up the options, but achieving a deal remains our greatest priority.
The impact assessment lays out the five options that we considered, including a “do nothing” policy, but in each there would be a direct cost to victims of traffic accidents. People are still able to make claims, but they will have to do that in another country. I am not able to give a specific cost. The noble Baroness is correct to point out that this equates to 5,000 motorists a year. The additional costs incurred by a victim would depend on a number of factors and the complexity of the case.
On green cards, the noble Lord, Lord Adonis, quite rightly quoted the comments from the SLSC report, which were put in the new Explanatory Memorandum. The noble and learned Lord, Lord Hope, was quite right to point out that this SI does not equate to green cards, but I am happy to address it briefly. The Government want to remain part of the green card free-circulation area. We meet all the requirements needed to remain part of it when we leave the EU. That has not yet been agreed by the Commission; we very much hope that it agrees that soon. They can be obtained from insurers, free of charge. The noble Lord is quite right to point out that that could mean 2 million to 4 million green cards. We are working very closely with insurance companies to ensure that people are informed of this. My noble friend Lady Barran, our new Whip, received such a contact from the insurance industry very recently. However, this is something that we want to avoid and that is why we are very hopeful that the Commission will agree that the UK can remain part of the green card free-circulation area. Again, as the noble and learned Lord, Lord Hope, pointed out, this is not in our gift. We match the requirements that are needed, but need the EU to recognise that.
I think I have answered all the questions raised.
Baroness Sugg
On Northern Ireland and specifically the Good Friday agreement, which I think the noble Lord pointed to, the Commission and the UK have said that they will respect the Good Friday agreement, and currently—the noble Lord is right to point out—there would be a requirement to carry a green card. However, the implementing decision from the Commission to recognise the UK as part of a green card circulation area would remove the need for that green card. As I said previously, we meet all the requirements of that, and are working with the Commission to make that agreement.
I think I have answered all the questions; if I have not I will follow up in writing. I will end as I started: I recognise that this is not an ideal situation; it is not one that we want to be in. We think this is the right decision, given the implications of leaving the motor insurance directive—something that will happen if we leave the European Union without a deal—and that is why the Government are working to ensure that we achieve a deal with the European Union. I beg to move.
Baroness Randerson
In light of the Minister’s response, I am not minded to take this to a vote this evening. However, I do not want that to diminish the fact that this is a very regrettable direction in which the Government appear to be set. The only slight chink of light that I see is that the Minister tells us that the Government are engaged in bilateral discussions. That is what has persuaded me not to push this to a vote on this occasion.
Drivers’ Hours and Tachographs (Amendment etc.) (EU Exit) Regulations 2019
Baroness Sugg Excerpts(5 years, 10 months ago)
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Baroness Sugg
That the draft Regulations laid before the House on 14 January be approved.
The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)
My Lords, these draft regulations will be 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 also make amendments under the European Communities Act 1972. They amend EU Regulation 561/2006, which sets out driving time rules for commercial drivers, and EU Regulation 165/2014, which sets out rules on the use of the tachograph device used for the enforcement of driving time rules.
Drivers’ hours rules are central to keeping our roads safe. They set maximum driving times and minimum break and rest times for most commercial drivers of both lorries and coaches. Of course, the consequences of driving any vehicle when fatigued can be catastrophic. These rules are enforced by the Driver and Vehicle Standards Agency and the police at targeted roadside checks, as well as by visiting operators’ premises. The principal tool used by enforcement officers is the record generated by the tachograph.
The regulations would make three broad categories of amendments. First, the draft instrument would make the necessary changes so that the EU regulations retained in UK law by the withdrawal Act continue to function correctly after exit day. For example, EU processes, such as the need for the UK to seek authorisation from the European Commission for exemptions, have been removed. Secondly, the regulations would amend domestic legal provisions, also using the powers of the EU withdrawal Act. Under the current EU regulations, member states put in place effective and proportionate enforcement provisions themselves. In Great Britain, this has been done by means of criminal offences set out in primary legislation and a fixed penalty regime in secondary legislation. Particularly important amendments need to be made to these domestic enforcement provisions to make them work in a non-EU context. Thirdly, the regulations would make changes to domestic law under the European Communities Act 1972. These changes are required to update the legal provisions that implement EU law ahead of exit day so that the regime is fully effective and enforceable.
In addition to containing the directly applicable rules I have already mentioned, EU law includes the obligation on member states to apply the wider United Nations AETR agreement on drivers’ hours rules. With the UK outside the EU, this wider international agreement will in future cover transport operations between the UK and the EU. The majority of the changes here are to ensure that there are explicit domestic provisions, including offences and penalties, to fully implement the AETR agreement. The AETR driving time and tachograph rules mirror the equivalent EU regulations, so this legal change would not affect the regulatory obligations of the drivers and operators in scope of the rules.
While the need for these amendments is particularly important in the context of EU exit, they are in any event legally required under the UK’s current international obligations.
To conclude, the regulations are essential to ensure that the EU regulations on drivers’ hours, and the tachographs used to enforce them, continue to work effectively in the UK from exit day in the event of no deal. These rules are at the heart of the road safety regime for commercial vehicles.
Lord Adonis (Lab)
The Minister referred to the regime in respect of tachographs. Paragraph 2.7(a) of the Explanatory Memorandum states that,
“this includes amendments to criminal offences in relation to the use of tachographs”.
I take “amendments” to mean changes to the existing regime for criminal offences. Can the Minister say what will change, or are the amendments technical with no changes to criminal offences?
Baroness Sugg
The penalties precisely mirror those already in place for the existing equivalent offences. For tachographs, the penalty for breaches of the type-approval rules follows the legislation already in place for the type approval of motor vehicles. The fixed-penalty amounts for infringements of the AETR are the same as for infringements of the equivalent EU rules. I am happy to go through this in detail if the noble Lord would like; I expect he would.
Lord Adonis
So there were no changes in the actual impact of criminal offences on the individual, either in terms of the offences or the penalties?
Baroness Sugg
I will go through it in detail. A number of the provisions and offences in Part VI of the Transport Act are being amended to ensure that the AETR is fully applied in the UK, as I mentioned earlier. The existing measures, which make provision in relation to the EU regulation, are amended so as also to refer to the AETR provision: Section 96, which contains the offences of non-compliance with the EU and AETR drivers’ rules; Section 97C, which requires drivers to provide tachograph records to employers; Section 97G, which requires operators to ensure the data is downloaded from tachographs; Section 97H, which requires the production to an officer of downloaded tachograph data; and Section 99ZE, which prohibits the creation of false tachograph records and data. Those are the criminal offences being amended to make sure they are in line with the AETR rules.
Lord Rosser (Lab)
This relates to what my noble friend said. I intended to say it when I made my contribution, but perhaps I could just say it now. Paragraph 6.5 of the Explanatory Memorandum says that Part 2,
“creates three new offences and amends two existing offences to ensure that there are adequate enforcement provisions”.
I accept that if I had read the document more thoroughly, I might know the answer to this question, but what specifically are the three new offences referred to?
Baroness Sugg
I was just coming on to those new offences. The new criminal offences are all under the Transport Act. The first is the failure to install or use a tachograph in accordance with the AETR requirements for in-scope vehicles. The second, in Section 97ZB, is the supply of tachograph equipment that has not been or is no longer type-approved by the relevant authorities. The final new offence, in Section 97ZC, is the failure by a tachograph manufacturer to inform the Secretary of State of known security vulnerabilities in its product. As I said, in particular the provisions around the AETR agreement will be increasingly important as this international agreement takes the place of the existing EU regulations. In the course of the legal analysis work to prepare this EU exit SI, these were the new criminal offences identified as needed. It is particularly important to make sure that the AETR regulatory regime is fully functioning for exit day.
The necessary legal amendments do not modify the substantive regulatory obligations placed on drivers and operators subject to the rules. In the event of a deal, as set out in the draft political declaration, for road transport the UK and the EU intend to develop market access arrangements underpinned by appropriate common standards, including driving time limits. Obviously, that is where we hope to get to, but in the event of us leaving without a deal these regulations are needed. I beg to move.
Baroness Randerson (LD)
My Lords, these are really important regulations. They are vital for road safety and for driver welfare, because over the years there has been great concern about the way drivers have been expected to live when they are not driving along the motorways.
Up to now, drivers have been bound by the EU drivers’ hours regulation and the EU tachograph regulation. In future they will be bound by the AETR, which covers a much wider group of countries. From what the Minister has said, it appears that these two sets of regulations are very similar and essentially the same.
I had intended to ask about the three new offences and amendment of two existing ones, but the noble Lord, Lord Rosser, has already asked about that. It is important to find clarity on this.
The Secretary of State will be responsible in future for the approval of recording equipment. Currently, the Secretary of State is responsible only for checking and inspecting, but in future they will have responsibility for approval of the equipment. That is an important additional responsibility. Can the Minister explain who will have that responsibility in Northern Ireland? I realise that this SI does not apply to Northern Ireland, but clearly tachograph issues are very important in Northern Ireland, because drivers cross the border all the time and cross-border trade is so important. Can the Minister explain how it will work in Northern Ireland? Obviously, drivers from the Republic of Ireland will follow EU rules.
Lord Rosser
I will make one or two comments on this SI and ask the Minister to repeat a couple of things she has already said.
The Secondary Legislation Scrutiny Committee referred to the three new offences and the amendment to the two existing offences, saying:
“The House may wish to be aware of the creation of new offences using secondary legislation”.
Is the Minister able to give some information—I do not mean an enormous amount—on how frequently DfT uses secondary legislation to create new offences, or to amend existing offences? I am not entirely sure in my own mind the extent to which this is a break from normal practice or simply a continuation of an existing practice which may not be used frequently.
I would be grateful if the Minister could confirm that the effect of this SI is that there will be no changes to the requirements of the drivers’ hours and tachograph rules, so that what we are being invited to agree to is actually a continuation of the present arrangements.
I do not think the Minister will be too surprised if I ask whether there was any consultation with trade unions. Paragraph 10.1 says:
“Department for Transport Ministers and officials have regular engagement with the road transport industry”.
It would be of some relief if the Minister was able to say to me that, on this issue, that covered the trade unions as well as the other key players within the industry, because it talks, at paragraph 6.5, about creating,
“the equivalent offence of failing to install and use recording equipment”.
Presumably, a driver could be accused of not using the recording equipment, and might, for example, turn it off. To suggest that the drivers of vehicles have no interest at all in what is in this SI is stretching it.
I will leave my comments at that, on the basis that there is no change to the existing arrangements, and that is what this SI is intended to achieve. I would be grateful if the Minister could comment on what is in the Secondary Legislation Scrutiny Committee report about creating new offences using secondary legislation.
Baroness Sugg
I thank noble Lords for their consideration of these draft regulations, and I shall turn to the points raised.
The need for these regulations is incredibly important. On the market access regulations, which the noble Baroness referred to, the international access to the EU for the UK—if there is a no-deal Brexit—would be jeopardised without them. The regulation on the haulage market access currently being discussed envisages the continuation of equivalent rules for drivers’ hours and tachographs and includes draft provisions to reduce or terminate market access without those equivalent provisions, so they are important. Even under the limited access provided by ECMT permits, we also need to adhere to the international standards.
On enforcement, parts of the tachograph rules and the current regime of drivers’ hours offences in the UK would not continue to be enforceable in respect of much of the commercial road transport in the UK. Some of these breaches of the rules are incredibly serious, including the fraudulent manipulation of tachographs, so the rules are important to public safety.
On new powers, in many cases the reference to the Secretary of State is a technical change, but the Secretary of State will have some regulation-making powers, and they are exercisable by negative procedure to replace the Commission’s secondary legislation-making powers. At present, such legislation made by the Commission flows through to the UK automatically as directly applicable EU law. The regulation-making powers are transferred to the Secretary of State in relation to authorising exemptions from driver rules for transport operations carried out in exceptional circumstances, which the noble Baroness referred to. Procedures for field tests of tachograph equipment, setting out standardised reporting forms and specifying the content of the training of control officers, and setting out the technical specifications for tachograph equipment are subject to the negative procedure, due to the nature of the amendments which they would make. They are very specific and technical or apply to exceptional circumstances where we need a swift response. It would only be possible to modify the core regulatory obligations, such as maximum driving times and the requirement to install a tachograph, through primary legislation.
The costs on business will not change as a result of these regulations. The effect of the rules will be the same: behaviours which are legal will continue to be allowed, and behaviours which are illegal will continue to be prohibited. The regulations will enable the enforcement of the rules by the DVSA and the police to continue as at present.
On information exchange, which the noble Baroness, Lady Randerson, raised, the provisions are revoked because they relate to co-operation which, in the event of no deal, we sadly cannot guarantee. We would hope, none the less, to be in a position to continue to co-operate with the EU in relation to this sector. That is not an agreement we have reached yet, and we would not be party, for example, to the European Register of Road Transport Undertakings, which is the data exchange on violators, as we would no longer be a member of the EU, but that information flow is important and we would like to see it even in the event of no deal.
This would not affect the enforcement sanctions available. Regardless of Brexit, we are targeting enforcement resources towards offences such as tachograph manipulation, and enforcement against non-UK established hauliers and drivers, which includes the immobilisation of vehicles and fixed penalty notices, is not affected by the regulation or Brexit. We will continue to participate in Euro Contrôle Route, which is not an EU body and is not restricted to EU countries’ enforcement agencies. That organisation is focused on practical law enforcement collaboration and enables the exchanges of good practice.
Lord Rosser
Does the Minister think that the RHA and the FTA are the best representatives of drivers, as opposed to the union they are members of?
Baroness Sugg
No, I did not mean to say that. As I said, there will be no change for drivers from these regulations; the rules will stay the same. The EU rules are the same as the AETR rules.
The noble Lord, Lord Adonis, asked questions on divergence. We are not committing to following the EU rules. In the future, the Government will consider on a case-by-case basis how the UK might choose to respond to any changes in EU regulations. These regulations do not oblige the Government to remain aligned to the EU rules, but they do oblige the UK to remain aligned to the AETR rules. We are a contracting party to the AETR, and those wider international rules will underpin all transport operations between the UK and the EU after exit. At present, the AETR is aligned to the EU rules: the rules on driving time, rest time and requirements for the use and installation of tachographs are the same.
Lord Adonis
I had not understood that important distinction. Why, as a matter of policy, are we committing in advance to mimic the AETR rules when we are not committing to mimic any EU rules? Is it an ideological issue about an international body being superior to the European Union, or what?
Baroness Sugg
No, it is not. For many standards, whether it is UNECE standards or the AETR, we are a contracting party. If we leave the European Union without a deal, we will not be a member of the EU and so will not be following its regulations. But we will be following a broader group—those of the AETR.
Lord Adonis
This is important. Does an international treaty requirement or obligation apply to the United Kingdom? If not—to ask the question again—why have the Government decided to follow the AETR rules? If it is a discretionary matter, why are they not going to follow changes to EU rules, given that most of our lorry traffic is to the continent of Europe—in other words, to the European Union? It does not make obvious sense.
Baroness Sugg
All EU countries are party to the AETR and practically all international road freight beginning or ending in the UK begins or ends in an AETR country. As I said, if we leave the European Union without a deal, we will no longer be a member and so it would not be appropriate to follow the EU regulations. We have chosen instead to follow the same regulations under the international AETR body, which is a UN body.
Lord Adonis
I am sorry to interrupt again, but this is a point that will be picked up outside. Are the AETR rules and the EU rules the same?
Baroness Sugg
As I said, they are currently aligned. Rules on driving time, rest time and requirements for the use and installation of tachographs are the same in the AETR and the EU rules. Obviously, I cannot predict what might happen in the future, but we are a contracting party to the AETR, and those wider international rules will underpin transport operations between the UK and the EU after exit.
I think I have answered all the questions. As I have said previously and will no doubt say again, the Government are working to agree a deal with the European Union. But while we do that, and until we have final agreement, it is important that we prepare for the possibility that we will leave with no deal. These regulations are essential to ensure that the drivers’ hours rules will continue to underpin our road safety regime for commercial vehicles. I commend the regulations to the House.
Road Vehicles and Non-Road Mobile Machinery (Type-Approval) (Amendment) (EU Exit) Regulations 2019
Baroness Sugg Excerpts(5 years, 10 months ago)
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Baroness Sugg
That the draft Regulations laid before the House on 21 January be approved.
The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)
My Lords, if it is convenient, in moving this Motion I shall speak also to the draft Road Vehicle Emission Performance Standards (Cars and Vans) (Amendment) (EU Exit) Regulations 2019. These draft regulations will be made, for the most part, under the powers conferred by the European Union (Withdrawal) Act 2018, and—in the case of the type-approval SI to align the definitions of type-approval certification used in Northern Ireland with the rest of the UK—under the powers conferred by the European Communities Act. These regulations will be required if the UK leaves the European Union without a deal.
I shall speak first to the type-approval regulations. Currently, motor vehicles can be registered and placed on the UK market only if they have a valid EU type approval. The legislation governing this is a mix of domestic and directly applicable EU regulations. Of the two SIs, the draft type-approval regulations were put forward originally as a negative SI and considered by the sifting committees of both Houses. Both committees recommended that they be upgraded to affirmative, given the potential impact on manufacturers. I thank the committees for their considerations of this and other statutory instruments.
The draft type-approval regulations under consideration ensure that we will continue to have control over the registration of vehicles in the UK while also ensuring that we minimise the burden on manufacturers. The SI achieves this by amending the Road Traffic Act 1988 in GB and the Road Traffic Order 1981 in Northern Ireland to create a UK approval scheme, enabling the Vehicle Certification Agency, the VCA, to issue provisional UK approvals to manufacturers holding a valid EU type approval, without requiring additional, costly retesting.
In addition, the SI amends the Vehicle Excise and Registration Act 1994 to provide that vehicles entering the UK after exit day can be registered only if they have a UK approval. Maintaining control over registration ensures that in the event of another VW emissions scandal, we would be able to prevent those vehicles from being put on the road. Minor amendments are proposed to the Road Vehicles (Approval) Regulations 2009, and to the three retained frameworks for motorcycles, agricultural vehicles and engines for non-road mobile machinery, to ensure that this retained EU legislation will remain operable after we leave the EU.
I assure noble Lords that we have consulted widely since last autumn on our proposals. This has been primarily with the major trade associations, such as the Society of Motor Manufacturers and Traders, as well as smaller, more specialised trade associations, such as the Wheelchair Accessible Vehicle Convertors Association.
Baroness Sugg
My Lords, I thank noble Lords for their consideration of the draft regulations. The regulations will ensure that we can continue to control the registration of vehicles in the UK and also to combat climate change in the transport sector after we leave the European Union. I shall now respond to some of the points raised.
The issue of type approval and the standards that apply was raised by many noble Lords. Future changes to the standards that apply to vehicles approved and registered in the UK will be laid before Parliament for approval in the form of statutory instruments. At the point when we leave the EU, all existing standards, including those for safety and environmental performance, will continue to be applied to new vehicles registered in the UK. There will not be a drop in standards or a resultant effect on road safety or environmental performance when we leave the EU.
As for future decisions on remaining aligned with EU standards, it will be for the Government to propose legislation for Parliament’s consideration, and the process by which the legislation will be considered will be an SI, subject to the affirmative procedure, establishing a new full UK approval scheme. As discussed, that will be laid later this year. I reassure noble Lords that, as has been highlighted, the SI will create an interim arrangement, which will be valid for a maximum of two years. The department is undertaking a comprehensive review and reworking the UK’s type-approval arrangements in the case of a no-deal outcome, in order to ensure continuity for manufacturers. This absolutely is about maintaining the status quo. That is why we are having the interim measure for two years.
The review is not intended to make policy changes. We would remain aligned with existing standards, but we would amend the retained EU legislation on type approval, which runs to 3,700 pages, to eliminate remaining deficiencies and, if possible, to streamline the legislation to make it more accessible. There will, of course, be a formal consultation on that process, to ensure that we get it right. This is an interim measure for two years, maintaining the status quo pending a large piece of work with a formal consultation to ensure that, should we leave with no deal, we would have the best possible functioning type-approval system.
Lord Adonis
But what is the point? Why not simply continue to maintain EU 27 approvals? If we do not intend to diverge, what is the point of this big piece of work?
Baroness Sugg
By leaving the European Union through the European Union (Withdrawal) Act, we will take EU legislation on to our statute book. So we are carefully looking at that legislation to make sure that it functions in the best way for us. As I said, this is not intended to make policy changes and is intended to remain aligned with existing standards. But there are more than 3,700 pages of type approvals, and we want to make sure that they function correctly on our statute book. That is a significant piece of work, which we will be doing alongside a formal consultation to make sure that this continues to function.
The consultation on type approval was conducted by discussions and working groups, largely through the main UK trade bodies covering the various categories of vehicle that require type approval. We have had a range of meetings that included members of the SMMT, the Motorcycle Industry Association and the Agricultural Engineers Association. Through these meetings, we refined our proposals and addressed sector-specific issues as well as informing people what is expected in a no-deal scenario. Obviously, we have also spoken to the European trade associations.
Lord Rosser
I ask this in a genuine spirit: I hope that the Minister will accept that. If there were meetings and discussions with the bodies that she just mentioned, which are referred to in the EM, did they agree that what is in front of us today maintains the status quo—because they would have been told that that was the objective? Can I just check, because the Minister did not mention it, that the trade unions were not consulted?
Baroness Sugg
I am afraid that I do not have an answer on trade unions; I shall have to get back to the noble Lord on that.
The organisations we consulted do not wish for no deal—I should be very clear on that—but we are attempting a pragmatic approach to make sure that we continue trade with the EU should we have a no-deal exit. They are supportive of the proposals. The SMMT told the Lords Select Committee on the EU Internal Market that the department had put in place a system of temporary type approval, initially, which is probably as sensible as we can have during the interim period. The Motorcycle Industry Association confirmed that it had no immediate concern with the proposed text, which it expects to alleviate some of the short-term pressures on manufacturers and importers arising from the UK leaving the European Union without a deal. So I think that it is fair to say that industry does not want no deal but, in the event of no deal, it accepts that this interim measure is the right way forward. We published our technical notice of the changes to type approval last September.
On the question of the cost of type approval asked by the noble Baroness, Lady Randerson, the total cost to manufacturers of provisional approval is estimated to be around £800,000. That includes their internal administration costs and familiarisation costs. Normally, to obtain type approval for a single model costs at least £250,000, including the hire of test facilities, internal costs and fees to the VCA. It takes the VCA a couple of hours to prepare a UK approval following an application. As noble Lords would expect, the VCA has engaged extensively with industry and is well placed to issue provisional UK approvals. It has recruited additional temporary staff to manage the additional workload. So far, it has taken on 23 additional staff and is on target to have 40 in place by mid-March. The assessment found an estimated annual cost of the VCA of £800,000 per year, which would be recovered from manufacturers—so, combined with the administrative costs of using the scheme, the estimated total cost to business is £1.6 million per year.
Baroness Randerson
I thank the noble Baroness for those details, but I am still not clear about why the Government are suddenly so suspicious of EU type approvals. What grounds do they have to need to do this all over again rather than simply accepting, certainly for the first two years, that vehicles can come in with EU type approval, which we have trusted in the past and could trust for the next couple of years?
Baroness Sugg
Under no deal, EU-based manufacturers will also need to obtain UK approval from the VCA. That will be granted on the basis of a valid EU approval. The VCA retains the right to retest in the unlikely event that there are doubts about the authenticity of the EU approval. There are certainly no grounds for suspicion on that, but, if we leave the EU, it is only right that we have our own approval. We will no longer be a member of the EU, so we will no longer recognise its type approval.
On the VCA’s progress, as I said, engagement is continuing. It is actively working with customers and manufacturers on approvals from EU countries selling into the UK to ensure that they can deal with this. The VCA has already obtained approval data from manufacturers. Used cars and vans make up 99% of new registrations, and that engagement continues, so it is well placed.
The noble Baroness, Lady Randerson, also asked about the powers. The VCA currently has powers but, in the event of a no-deal exit, it will lose its powers as we will no longer be an EU member. That is what the SI brings in.
Several noble Lords asked about the national small series type-approval limits. They are being doubled for this year, and only for this year, because by next year we will have this new statutory instrument in place which will have our new type-approval process.
Baroness Randerson
Can the Minister explain why they are being doubled? On what grounds is their historic level now inappropriate?
Baroness Sugg
Before, it was for the whole of the EU. Now it will be for the UK only, so this is a temporary measure until the new type-approval statutory instrument comes in.
Lord Adonis
The Minister referred to a statutory instrument, but the regulation refers to legislation. What is the relationship between the legislation, which is scheduled for mid-2019, so will be introduced very shortly, and the statutory instrument to which she referred?
Baroness Sugg
The new type-approval regime will be a piece of legislation through a statutory instrument, which will be affirmative and will follow full consultation before it is published. A statutory instrument is the methodology by which it will come in.
I turn to emissions, on which, happily, we did consult. They were the subject of public consultation in November last year, and the Government’s response was published on 18 December. In parallel to that, we offered meetings with any stakeholders who wanted to discuss the proposals further. Again, I shall have to get back to the noble Lord on the specific point about trade unions. In addition to that formal consultation, DfT officials have been in regular contact with stakeholders for many months to help develop proposals to make sure that we have consistency with the existing EU regime. In the government response to comments from stakeholders, we provided clarification on the pooling and eco-innovation arrangements and set out a worked example of how a vehicle manufacturer’s target under the proposed UK regime might be established.
Through the statutory instruments, there are no specific impacts on UK manufacturers. If we were to leave the EU without a deal, the new UK regime would continue to operate as the EU regulation does for any vehicle manufacturer that registers new cars or vans in the UK. Manufacturers’ CO2 emission reduction targets would be calculated in the same manner, and they would still be expected to meet the existing headline reduction targets and report new registrations, as they do now. UK manufacturers’ vehicles registered in the EU would count towards the EU’s regime, as they do now.
Lord Dykes
I am very grateful to the Minister for giving way, and I apologise for interrupting at this stage. Would she forgive me if I again raise the point that has just made by the Opposition Front-Bench spokesman about trade unions being included in the consultations? I note that she has now said twice that she does not know the answer to that, but I should have thought that her team would have provided her with a list of people who were consulted, so she could refer to it. Is it not a matter of alarm if the trade unions were not included, bearing in mind that in the high-technology motor industry, it is well known, as we see from the tragedy of the Honda closure in Swindon, that car workers are not just workers in a general sense: they are highly skilled operatives and proud of their long years of training. Therefore, they often know more than those owning or running the company and managing them about the intricacies of motor vehicle production and manufacture. The trade unions therefore really need to be consulted.
Baroness Sugg
I take the noble Lord’s point and of course agree that the staff who work in the manufacture of vehicles play a really important role, and we should ensure that their views are taken on board.
We expect the cost of moving to a UK regime for CO2 emission reduction standards to be minimal. The registration of vehicles and the collection of required data is already handled by the DVLA on behalf of the DfT, and that will not change after EU exit.
With regard to emissions standards, the Government remain committed to our international and national environmental obligations. When we leave the EU, we will maintain them. If there is no deal, the SI we are considering will ensure that existing CO2 emission reduction standards are maintained. The formula to set those CO2 reduction targets and the headline targets themselves will be retained by the statutory instrument.
The noble Lord, Lord Rosser, asked about vehicle mass changes. As the UK average vehicle mass is above the EU average—we make heavier vehicles than the EU, on average—one consequence of adopting the current regime is that the sum of individual manufacturing targets in the UK will be slightly higher than the sum of targets in the EU. That might appear to be a slight loosening of standards, but that impression is incorrect. The goal that manufacturers must achieve remains the same. The SI specifically retains the headline targets that manufacturers must achieve by 2020. It maintains the level of effort that manufacturers must make under the current regime and ensures that regulations are as ambitious as under the existing arrangements.
On improving CO2 standards, as per the terms of the withdrawal Act, amending SIs must only correct a deficiency. However, the Government are still committed to ensuring that the standards will be as high as or higher than those required to allow importation into the EU.
I hope that I have addressed the points that were raised in the debate. If I have missed any, I will follow up in writing. Maintaining vehicle approval and emissions standards is vital to the broader government commitments to tackle climate change and improve road safety. These SIs are essential to ensure that we maintain control of vehicles on UK roads and that the system of vehicle type approvals and emissions standards continues to function from day one after exit. I beg to move.
Road Vehicle Emission Performance Standards (Cars and Vans) (Amendment) (EU Exit) Regulations 2019
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Baroness Sugg
That the draft Regulations laid before the House on 18 December 2018 be approved.
Flybmi
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The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)
My Lords, with the leave of the House, I will repeat in the form of a Statement the Answer given by my honourable friend the Parliamentary Under-Secretary of State for Transport to an Urgent Question in the other place. The Statement is as follows:
“On 16 February 2019, British Midland Regional Limited, the East Midlands-based airline which operates as Flybmi, announced that it had ceased operations from that date and filed for administration. The group has surrendered its licence to operate in the UK, which means it is no longer able to operate flights. There has already been significant speculation about the reasons behind Flybmi’s failure. Ultimately, this was a commercial matter for the airline.
Flybmi operated in a very competitive industry and was exposed to wider pressures faced by the global aviation industry, such as increasing fuel prices. It is very disappointing that Flybmi has gone into administration, and we know that this will be a very difficult time for those who have lost their jobs as a result. Many of those affected are highly skilled; we are confident they will find suitable employment opportunities, and we welcome the moves by the sector to offer opportunities to those affected.
The Insolvency Service’s redundancy payments scheme is working with the administrators of Flybmi to ensure that former employees’ claims from the National Insurance Fund, which may include redundancy pay, holiday pay, arrears of pay and compensatory notice pay, are assessed as quickly as possible. With the sector ready to recruit, I hope new jobs will be found quickly.
I also recognise that this is a disruptive time for passengers, also very distressing, and the Government’s immediate priority is fully focused on supporting those affected. We are in active contact with airports, airlines and other transport providers to ensure everything possible is being done to help them. We and the Civil Aviation Authority are working closely with the travel industry to ensure this situation is managed with minimal impact to passengers. There are enough spaces on other flights for passengers to return home on other airlines, and we welcome the sector’s move to offer rescue fares for affected passengers. For example, Flybmi has codeshares across the Lufthansa Group. Passengers on these flights will be subject to EU passenger protection rules and will be provided with assistance and rerouted to their final destination.
Travel insurance and credit card bookings are worth noting here. Most passengers were business, and this will also be covered through their work. In addition, the CAA is providing detailed information for affected passengers on its website, including how people can claim back money they have spent on tickets.
The Government recognise the importance of maintaining regional connectivity, and that is why we fund a public service obligation route from Derry/Londonderry to London, which was recently extended from 1 April 2019 for a further two years, the norm for PSOs. The chief executive of Derry Council has the power to transfer the PSO contract to another airline for up to seven months to allow for a new procurement process to be conducted. Subject to due diligence, we expect the council to sign contracts and appoint an airline later this week, and we are expecting services to resume swiftly. Derry and Strabane Council will take forward that part—it is its responsibility.
All affected regional airports have been contacted and while they are disappointed, we are confident this will not cause them significant issues. A number of airlines have already indicated they will step in to replace routes previously served by Flybmi. For example, Loganair has publicly announced that it will cover routes from Aberdeen, Bristol and Newcastle.
Our priority is to protect employees, passengers and local economies. We are fully focused on supporting those affected and remain in close contact with industry and the CAA to ensure everything possible is done to assist”.
Lord Tunnicliffe (Lab)
My Lords, I thank the Minster for repeating the Answer to the Urgent Question. Eighteen months ago this House questioned Ministers on the collapse of Monarch Airlines, and we were promised things would change—yet here we are.
The Transport Secretary has dithered and delayed for nearly a year in bringing forward new rules on airline insolvencies, so we must ask Ministers what they have been doing. Flybmi has been in difficulty for some time, so what plans did the DfT have for an airline collapse? What plans does it have, or is it putting in place, should another airline be forced into this position?
Why was the airline allowed to sell tickets only hours before entering administration? The Minister detailed some of the actions being taken to support passengers left stranded by cancellations. Do the Government have an estimate of how many UK residents have been affected?
The Minister alluded to the fact that last week the Government agreed to extend the subsidy of Flybmi’s London to Derry route. We have gone from a ferry company with no ferries to a flight path with no flights. Was the DfT aware that the airline was about to collapse when it agreed this commitment of public money? What checks did Ministers do on the airline prior to extending the commitment?
Baroness Sugg
I thank the noble Lord for his questions. On how we are dealing with airline insolvency in the future, we have commissioned an independent review led by Peter Bucks to review consumer protection in the event of an airline or travel company failure. It is looking at options including an orderly wind-down of an airline so that it is able to conduct and finance repatriation options without impact on the taxpayer. The review is also looking at the lessons learned from the collapse of Monarch, and will identify potential market reforms necessary to ensure that passengers are protected when an airline fails. This is a complex issue and it is an extensive report. We are expecting the report in the spring.
Initial estimates are that fewer than 1,000 affected UK-originating passengers are overseas. Many will have already made their way back; many will have been planning to stay abroad. We understand that about two-thirds of those booked to return were on code shares, and those bookings will be honoured.
On the PSO, the department and the CAA were not informed of the administration until very shortly before the directors agreed to it. To be clear, the contract for the PSO is directly with the city of Derry and Strabane council. They are the people who run that contract and it is they who will re-let it shortly.
Baroness Randerson (LD)
My Lords, I thank the Minister for her Statement. The company cited Brexit as one of the reasons for its problems. First, the fall in the value of the pound in the past two and a half years has obviously meant that people are finding it more difficult to afford holidays abroad. It mentioned the spike in fuel and carbon costs caused by our exclusion from full participation in the EU Emissions Trading Scheme—we have been suspended from that until the withdrawal agreement is in place. The company said that it was unable to secure valuable flying contracts in the EU because of Brexit uncertainty.
On Saturday, we had Flybmi; today, we have the very sad news about Honda in Swindon. The trickle of job losses has become a steady flow. Today as well, we have the UK Trade Policy Observatory estimating some 750,000 job losses—that is a conservative estimated—as a result of Brexit uncertainty. What plans do the Government have to retrain people who lose their job because of Brexit uncertainty? What plans do they have to find new jobs for them? Have they estimated the total cost to our economy of retraining people and providing them with benefits while they are unemployed?
Baroness Sugg
Both the UK and the EU have made it very clear that we want flights to continue after Brexit. We and the EU are taking the necessary actions to ensure that this will be the case in the event of no deal. This sad event is a commercial matter for the airline in a competitive industry. BMI has been exposed to wider pressures faced by the global aviation industry such as increasing fuel prices and intense competition. Other EU airlines have collapsed in recent years; for example, Germania, Primera Air, Air Berlin and flyvlm. This is not just a UK issue. I agree with the noble Baroness that businesses want certainty. I am afraid that that I do not have any figures on jobs and retraining, but I regularly hear requests for certainty from the aviation industry. That is why we are working to deliver a deal and the implementation period that comes with it. I hope that that will be agreed soon so that we can give businesses the certainty they need.
Lord Carlile of Berriew (CB)
Does the Minister agree that this diminution in services to and from provincial airports in the United Kingdom raises real questions about the viability of some of those airports? Does she also agree that having a good network of provincial airports is extremely important to the UK economy and the passenger group who wish to travel? Will she assure us that the Government will look at this problem as a matter of urgency?
Baroness Sugg
I agree with the noble Lord on all those points. We are seeing supply outstrip demand on many of these routes. BMI cited 19 passengers per flight on a 50-seater plane; obviously, that would be very difficult to sustain. We are seeing other regional airlines take on those routes, but there is an excess of capacity. I agree with the noble Lord also on the importance of regional airports. Maintaining that regional connectivity is key. We provide a PSO on lifeline routes. Our aviation strategy, on which we published a consultation in December last year, looked at how we might support regional airports. They are important in providing connectivity not only for people but for freight and trade, and can act as a multiplier for local and regional economies. It is very important that we support them.
Baroness McIntosh of Pickering (Con)
My Lords, will my noble friend further address overcapacity, which she just mentioned? When airlines such as Ryanair and EasyJet are not making money, seeing their share price fall and issuing profit warnings, it obviously has implications for the whole industry.
Baroness Sugg
I agree with my noble friend. It is a challenging time to be in the aviation industry at the moment for many reasons. We are seeing airlines having to address those challenges. Ultimately, they are commercial enterprises, and the share price will be dictated by demand and their profitability. Through the aviation strategy consultation, we are looking to support the industry. The UK aviation sector is incredibly important to the UK economy, providing £22 billion per year and hundreds of thousands of jobs. We want to make sure that our aviation strategy helps it continue in its success.
Lord Blunkett (Lab)
My Lords, I have a tangential interest. I know that the Minister, for whom I have enormous respect, has an interest in what are called in technical jargon passengers with reduced mobility; that is, those who require assistance. Is she satisfied that the industry and government are doing enough to help those who will be stranded? Quite a number of them are extremely worried.
Baroness Sugg
I thank the noble Lord for his question. Yes, we are satisfied that we are doing everything we can to help those passengers who are stranded. The CAA and the department are working closely with airlines. Detailed information on that is on the website. As always, we need to make sure that we pay special attention to PRMs, as they are called, to ensure that they receive the support they need to get home.
Lord Kilclooney (CB)
I welcome the Statement by the Minister. I thank the Government for the speed with which they have attended to the problem in Londonderry and the north-west of Northern Ireland. Airlines depend on passengers. The special support that the Government are giving the route from the City of Derry Airport to London is very much appreciated, not only in Northern Ireland but also in the Republic of Ireland, because Donegal uses the airport. Does the Minister recall that more than two years ago, when there was no such thing as Brexit, Ryanair withdrew from the Derry to London route, not because of Brexit—because it did not exist—but of lack of passengers?
Baroness Sugg
The noble Lord is quite right that these routes will be dictated by passengers. However, as I mentioned previously, we have public service obligations, where the Government will provide funding to maintain these important routes. Perhaps I may provide further reassurance on the PSO route from Derry. Derry City and Strabane District Council have been in contact with a number of airlines. An emergency process is being invoked which allows the council to appoint another airline to take over the PSO for seven months without the full tender exercise. The department is working closely with the council to find a suitable alternative carrier on that route. We hope that an announcement will be made shortly.
Commercial Air Routes: United Kingdom and East Africa
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The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)
My Lords, UK airport slot allocation is based on worldwide guidelines from the International Air Transport Association—IATA. These guidelines provide for slots to be allocated independently of government in a non-discriminatory way. The Government recognise the difficulty of obtaining slots at highly constrained UK airports, and the much-needed additional capacity from Heathrow expansion will ease that constraint, enabling us to maintain and develop long-haul connectivity, including to developing economies such as Rwanda and Uganda.
Lord Popat (Con)
I thank the Minister for that helpful response. Almost two years ago, I helped RwandAir launch direct flights between London and Kigali, but I found that securing convenient landing and departures slots was practically impossible at Gatwick or Heathrow. The problem is that the biggest airlines, including budget airlines, have a monopoly over peak-time slots through grandfathering rights, meaning that newer airlines are squeezed out. Does the Minister agree that, given our country’s need to build commercial bridges with Africa post Brexit, we need a better and fairer system to ensure adequate access to those markets? Will she assure us that the Government will look urgently into reforming the allocation system?
Baroness Sugg
My Lords, I thank my noble friend for his continued efforts as a trade envoy to Rwanda and Uganda and particularly for his support for UK businesses involved in building Kigali airport. The Government believe that there is a case for changes in slot allocation where there is significant new capacity. Our aviation strategy, Aviation 2050, consults on a wide range of policy proposals designed to increase competition and connectivity both domestically and abroad. That includes looking at existing slot regulations to see how we can promote competition and ensure new long-haul routes, such as those to east Africa, can be delivered.
Viscount Waverley (CB)
My Lords, while I agree with the sentiment behind the Question asked by the noble Lord, Lord Popat, would the Minister nevertheless concur that encouraging intraregional trade is essential for multiple reasons and that encouraging an east-west network of air routes should be made a practical reality?
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?
Baroness Sugg
Yes, we will. The current slot regime allows for new entrants. The regulations require 50% of available slots to be given to new entrants. The main issue is that there are not very many slots available. This is why we need expansion. There will be more slots available with expansion and with other airports making better use of their existing capacity. Our aim in looking at the slot allocation regime is to ensure competition, which will ultimately benefit the consumer.
Lord Rosser (Lab)
My Lords, government Ministers talk in enthusiastic terms about the new trade agreements that we will be able to conclude with other countries following Brexit. Will the availability at our major airport of sufficient and appropriate airline slots for direct services to those other countries be an important consideration in successfully concluding such trade deals? If so, do the Government intend to make sure—as opposed to simply talking about it—that such slots are available at Heathrow, or Gatwick at least, in the immediate aftermath of Brexit when, as I understand it, these new trade agreements with other countries will be concluded with considerable rapidity?
Baroness Sugg
My Lords, we aim to increase our connectivity across the globe. We have a very experienced team of air services negotiators in our department who work across the world to deliver new air services agreements. Our current approach is to favour as much liberalisation as possible, providing it is in the UK’s national interest. Regardless of the negotiations, Brexit will not deliver new slots, but an increased capacity at Heathrow will do. That will help us increase our links, and increase our trade links, across the world.
Baroness Nicholson of Winterbourne (Con)
My Lords, given the Middle East’s enormous appetite for access to the British market, would the Minister reconsider the prohibition on direct flights from Iraq to the United Kingdom and lift the prohibition on Iraqi pilots? Sadly, at the moment, they must be substituted by Jordanian pilots, who are doubtless wonderful but are none the less not the national product.
Baroness Sugg
My Lords, all of our decisions are based on our priorities of safety and security. We regularly look at our current system and will update it regularly.
Lord Tomlinson (Lab)
My Lords, can the Minister suggest to her right honourable friend the Secretary of State for Transport that he might suggest creating mythical new slots for mythical airlines without planes?
Baroness Sugg
My Lords, I was considering how noble Lords might be able to ask a question like that when we were talking about east African slots, but I had not considered that angle. We are interested in delivering real slots for real flights to new countries.
Lord Polak (Con)
My Lords, it is not just about the slots but what sort of slots are made available to these new airlines. They are often at the worst times of day. British Airways does not fly directly to Rwanda, and RwandAir plugged the gap by flying to the UK three times a day, I think—or a week. The problem is planning, because when the slots are given, they are given for only six months at a time. What sort of business can plan for six months only? Can the Minister go back and give these slots for longer?
Baroness Sugg
My Lords, my noble friend is quite right to point out that there are no direct BA flights to these countries. It does operate direct flights to Kenya and across the continent. In 2017, there were over 23,000 direct flights to Africa, carrying over 4.5 million passengers. My noble friend is quite right: the timing of the allocation of these slots is absolutely key. As with all businesses, airlines need to plan ahead. We are looking at that through our slot reform policy consultation.
Lord Haselhurst (Con)
My Lords, if there is increasing demand for passengers and freight to be taken to east African countries, notably Rwanda, the airlines themselves might realise that there is some advantage in changing their flight schedules. The Government’s interest might be not only in that but in the fact that Rwanda is to host the next Commonwealth Heads of Government Meeting, and it will be somewhat embarrassing if we do not have direct service by then. Does my noble friend agree?
Baroness Sugg
As my noble friend will be aware, decisions around where airlines fly are down to commercial reasons. However, I agree with him that it is important that we promote ties with Rwanda, not least as it is following us in hosting the next CHOGM summit. Trade in goods and services between the UK and Rwanda increased by 50% last year, outstripping growth in east Africa and indeed the continent as a whole. We want to see that growth in trade continue.
Air Services (Competition) (Amendment) (EU Exit) Regulations 2019
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That the draft Regulations laid before the House on 5 December 2018 be approved.
The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)
My Lords, if it is convenient, I will speak to both the Air Services (Competition) (Amendment) EU Exit Regulations 2019 and the Airports Slot Allocation (Amendment) (EU Exit) Regulations 2019. These instruments will both be made using powers in the European Union (Withdrawal) Act 2018 and will be needed if the UK leaves the European Union without a deal.
The two draft instruments will correct the following retained EU regulations: Regulation 868/2004, which is intended to provide protection for Community air carriers against injury caused by subsidisation and unfair pricing practices relating to air services between EU member states and third countries; and Regulation 95/93, which sets out the process for the fair and transparent allocation of airport slots—the right to use a bundle of facilities at airports for landing or take off of an air service at specific dates and times; for example, runways, stands and terminals where the demand at congested airports exceeds the available infrastructure.
I turn first to the draft air services competition instrument. The EU regulation sets out the process and requirements for imposing redressive measures in the form of tariffs or fines where it has been demonstrated that subsidies or unfair pricing practices by third-country bodies and air carriers, with respect to routes between EU member states and third countries, have caused injury to the EU aviation industry. This EU regulation has never been used and is currently in the process of being replaced. However, the effect of Section 3 of the European Union (Withdrawal) Act 2018 is that any direct EU legislation which is in force and applicable on exit day will automatically become part of the UK’s statute book. Therefore, the instrument that we are considering today simply makes those corrections necessary so that the version of Regulation 868/2004 brought into UK law by the EU withdrawal Act is, in principle, legally operable after exit day.
This instrument makes only technical corrections to the retained Regulation 868/2004, meaning that the substantive requirements for assessing whether there has been subsidisation, unfair pricing practices or injury to industry remain exactly the same. The corrections include ensuring that the scope of the retained EU regulation is correct once the UK has left the EU; for example, substituting references to “Community” with references to the “United Kingdom”. This has the effect that the retained regulation applies where there has been injury to the UK aviation industry. Instead of applying where there are unfair pricing practices by “non-Community” air carriers on certain routes to and from the EU, the retained regulation will apply where “non-United Kingdom” air carriers have engaged in unfair pricing practices on certain routes to or from the UK. Similar changes apply in relation to the subsidisation provisions in the retained EU regulation.
This instrument also transfers functions currently carried out by EU institutions to appropriate bodies in the UK. For example, it transfers the function of carrying out investigations covering subsidisation and/or unfair pricing practices from the European Commission to the Civil Aviation Authority.
Finally, this instrument transfers the function of imposing provisional or definitive redressive measures to the Secretary of State. As the EU regulation sets out that the process for this is through further regulations, this instrument also sets out that any provisional or definitive redressive measures would be imposed by the Secretary of State through regulations.
I turn next to the draft airports slot allocation instrument. The EU regulation applies at congested airports where the availability of adequate infrastructure is insufficient to meet demand. The regulation sets out conditions that must be met for an airport to be “schedules facilitated” on a voluntary basis or subject to “slot co-ordination”. A thorough capacity analysis must first be carried out, which must be done within six months, if air carriers representing more than half of the operations at an airport or the airport authority consider capacity to be insufficient for actual or planned operations, or upon request from the European Commission, in particular if new entrants encounter serious problems in securing slots.
The regulation also specifies that any decision that an airport should be subject to slot co-ordination should be taken following thorough capacity analysis and consultation with users of the airport and that an independent slot co-ordinator should be appointed by the relevant member state. The following airports in the UK are currently subject to slot co-ordination: Birmingham, London City, Gatwick, Heathrow, Luton, Manchester and Stansted; and Bristol Airport is partially co-ordinated for the summer season. Airport Coordination Limited, or ACL, has been appointed as the slot co-ordinator for UK airports, and has been performing this function for some time.
Under the regulation, slots are allocated to air carriers that held the slot in the previous season and have demonstrated use of the slot at least 80% of the time during that season. The remaining unused slots are returned to what is known as the slot pool, alongside any newly available slots; 50% of the slots in the slot pool are available to new entrants. The regulation also makes provision for member states to reserve certain slots for essential domestic services, such as public service obligations, and for slots to be exchanged between carriers or transferred between different routes or types of service.
Finally, the regulation contains provision for reciprocal action, to ensure that Community carriers requesting slots in non-EU countries are treated fairly.
Once again, the draft instrument we are considering makes only minor changes to ensure that the retained EU regulation, Regulation 95/93, continues to function correctly once the UK has left the EU, alongside the domestic Airports Slot Allocation Regulations 2006 which were made to implement the EU regulation. Most of the changes the instrument makes are to ensure that the scope of the retained regulation is correct; for instance, reflecting that the retained regulation will only apply to airports in the United Kingdom after exit day, removing references to “Community law” and EU treaties, and removing or amending references to member states, as these will no longer include the UK after exit day.
Through the 2006 implementing regulations, the UK has fulfilled the requirements for member states to appoint a body or person to carry out functions such as designating an airport as schedules facilitated or co-ordinated, and appointing a schedules facilitator. The UK conferred these functions on the Secretary of State through the 2006 regulations. This instrument corrects the provisions in the EU regulation so they read consistently with the 2006 implementing regulations, reflecting that the UK has already fulfilled its obligation to confer these functions on an appropriate authority. Other roles for EU institutions, such as the European Commission’s role of carrying out investigations, are removed or replaced.
The instrument also makes corrections to some of the definitions contained in the EU regulation; for instance, substituting the definition of a “Community air carrier” with a definition of a “UK air carrier”. For the purposes of allocating slots from the slot pool, the EU regulation defined “new entrant” as including air carriers with few, if any, slots which requested slots for scheduled services between two Community airports where at most two other carriers operate that route. This instrument amends that part of the definition to provide for continuity, so that it captures both air carriers requesting slots for passenger services between two UK airports and carriers requesting slots for services between a UK airport and an airport in an EEA state.
The regulations provide that a proportion of slots can be reserved for PSOs. This SI amends the definition of a PSO in line with the corrections already made to provisions in EU law on PSOs, through the Operation of Air Services (Amendment etc.) (EU Exit) Regulations 2018. This means that, instead of being open to Community air carriers, “qualifying air carriers” will be eligible to operate PSOs in the UK. This will include UK air carriers and carriers from other countries that have cabotage rights in the UK—the right to fly between two points within the UK. As is currently the case, any PSO can be limited to one carrier by the Secretary of State only after a tender process has been followed. This change has no effect on the PSO routes already operating in the UK.
In terms of reciprocity, this instrument amends the provisions in the EU regulation so that, instead of the Commission being able to take action to ensure that Community carriers requesting slots in non-EU countries are treated fairly, the provisions give powers to ensure that UK carriers requesting slots in another country are treated fairly in the allocation of slots at that country’s airports. This instrument therefore sets out that it is the Secretary of State, rather than the European Commission, who may wholly or partially suspend the operation of the retained Regulation 95/93 in relation to air carriers from a non-UK country, with a view to remedying discriminatory behaviour of that country. The EU regulation currently provides for this action to be taken through a regulation and this instrument transfers that function to the Secretary of State, who could carry this out through regulations.
Finally, this instrument makes some minor changes to the 2006 implementing regulations, for instance removing the requirement for co-ordination committees at airports to invite the European Commission to meetings. It also makes a change to Annexe XIII to the EEA agreement, which requires parties to the agreement to inform the European Commission about serious difficulties encountered by UK air carriers in obtaining airport slots in third countries. This provision will not apply to the UK after exit day in the event of no deal, as we will no longer be a party to the EEA agreement, so it will be removed by this instrument as it will be redundant.
As I said during the debate on the previous SI, the best outcome for the UK is to leave the EU with a deal, and delivering a deal negotiated with the EU remains the Government’s top priority. However, as a responsible Government, we must make all reasonable plans to prepare for a no-deal scenario. These instruments ensure that, in the event of a no-deal exit from the EU, the legislative framework for aviation, in particular relating to the allocation of slots at congested airports in the UK, continues to work effectively, and that the aviation industry has clarity about the regulatory framework in which it would operate in a no-deal scenario. I beg to move.
Baroness McIntosh of Pickering (Con)
My Lords, this is designed to be helpful, so I hope that my noble friend will not put me in the “troublemaker” category. I will start with a couple of questions on the airport slots allocation. What will happen to the current grandfather rights, in particular those that might be enjoyed by EU carriers? Will they continue to be enjoyed after exit day? If that is the case, and this regulation comes into effect, what will happen to the grandfather rights currently enjoyed by UK carriers in EU airports?
On the civil aviation competition regulations, paragraph 7.2 of the Explanatory Memorandum states—my noble friend clearly said it in her opening remarks too—that it is not expected that this regulation will come into force. That begs a question. I cannot believe that there have been no unfair pricing practices and no cases of subsidy; if there have, what legislation has been used? There are some very worrying issues about this regulation and the European Commission regulation on connectivity which is going through the EU institutions at the moment.
My noble friend raised the question of cabotage rights in the UK currently enjoyed by EU carriers. Of much greater concern is that the market access proposals in the EU regulation currently before the EU institutions set alarm bells ringing, for me and I am sure for many of the UK carriers, when they were set out in December. It is my clear understanding that cabotage rights and fifth freedom rights will be lost.
I declare my interest; I was one of those in the European Parliament at the time who campaigned for years to get cabotage and fifth freedom rights. When I met my husband, who was at the time working for Delta Airlines, my opening line was, “Why will the US Government not allow cabotage and fourth and fifth freedom rights for European carriers in the US?”, which I think is currently not the case. If UK and EU carriers are going to retain only third and fourth freedom rights, how can that be in the interests of the UK airline sector?
I am sure that my noble friend is more aware than anyone of the importance of the UK airline sector. It turns around £52 billion a year, exports £26 billion, supports almost a million jobs and clearly supports the economy, whether it is Leeds Bradford Airport or any of the London airports. All international airports support their local economies as well. Therefore I would be grateful if my noble friend could say what the impact will be on UK airlines of the loss of cabotage and the loss of fifth freedom rights in the EU, whether or not there is a deal, because I understand that will be the position anyway, whether it is this regulation or another regulation going forward.
I understand that there will also be an impact on capacity. Obviously airlines such as Ryanair are currently going through difficulties. I am not a shareholder in any airlines. I almost lost my shirt on British Airways, so I am currently not investing in any airlines, but it is fair to say that Ryanair has the potential to expand, as do easyJet and a number of other UK carriers. Did the Government therefore have any input into the decision that has been taken—namely, that UK carriers will be allowed to operate in the EU only at the level that is frozen to 2018 levels? Presumably what is before us would be a temporary regulation, so that if there is a deal then these regulations would not come into play. However, I am extremely concerned that in future we will be locked into the 2018 frequency levels, affecting UK travellers who desire to travel within the European Union and UK airlines that desire to expand. Is there anything the Government or this House can do to reverse that?
At the end of March, the summer season schedules will be published. What are those timetables for flights going to look like? Will they be as full as they were last summer? Will they be provisional and will they have to be revisited?
There is some toing and froing according to press reports as well, and the Government face a deadline imposed by the European Commission of seven months to decide on the make-up and composition of an EU airline. As touched on in an earlier debate, this has severe implications for this regulation—no doubt it will for other regulations as well. It has ramifications for Ryanair, which we imagine is based in Dublin but which has a large number of non-EU shareholders, but of more concern is the UK flag carrier, British Airways, which is now under the umbrella of the IAG. Are we going to face the fact that British Airways under the IAG might not be recognised as an EU carrier?
Lord Tunnicliffe (Lab)
My Lords, I shall speak very briefly on these two instruments—there is no way we will oppose them. The first one is on competition. One’s enthusiasm for scrutinising in depth was somewhat killed by the first sentence in paragraph 7.2 of the Explanatory Memorandum, which says:
“The powers in the EU regulation have never been exercised and it is unlikely that they ever will be”.
At that point, I gave up detailed examination. This boils down—if there ever is a dispute in this area—to us having moved from a big gang called the EU to a little gang called ourselves. That is why I am not keen on crashing out of the EU without an agreement, because being part of the EU is, broadly speaking, a good thing when it comes to aviation.
I have some experience of the slots issue. The trouble is that it is 30 years old, so things may have changed, but I doubt it. In a sense, the general public do not realise what an airline is. An airline is, first and foremost and overwhelmingly, a timetable—you attach airplanes, crews and marketing to it, but you start with the timetable. In fact, I chaired one of BA’s internal committees which oversaw the process of developing the timetable, and the slots are a key part of it. They work, frankly, because there is an international consensus between airlines, airports and regulating authorities that the various slot allocation committees at various airlines will be co-ordinated on a worldwide basis to make the system work. This system has been fiddled with, but it has been pretty robust for 50 years. I take comfort from the Explanatory Memorandum, which says, as it should:
“The system relating to slot allocation at UK airports will remain unchanged”,
by this SI. Providing the Minister reaffirms that, it will have my support.
We have heard some comments. These would require policy changes to meet the challenges that the comments are directed at. I remind noble Lords that the one thing you cannot do under Section 8 of the European Union (Withdrawal) Act 2018 is introduce any policy changes. In so far as that is the instruction to government in generating these SIs, I have to support the fact that, as far as I can tell, they have followed that instruction.
Baroness Sugg
My Lords, I thank noble Lords for their consideration of these draft instruments. On the slot allocation system, we are not moving to operate on our own. The current system of slot allocation, including the EU regulations, is based on guidelines produced at an international level by IATA. Those guidelines are not affected by EU exit. The system for slot allocation at UK airports will be the same after exit day as it is today, except that the role of the EU Commission will no longer apply.
The noble Lord is quite right to point out that slot reform in general has been around for some time, but there is an international consensus around this and we are considering it in our consultation strategy, Aviation 2050: The Future of UK Aviation. We set out a number of potential issues with the current process for slot allocation affecting competition in the aviation markets, such as historic grandfather rights and retiming, but there is a long-standing international system, so we will work very closely with the industry, IATA and countries with which the UK has aviation links to discuss that.
My noble friend Lady McIntosh asked whether current grandfather rights will be the same. Again, those will remain the same after exit day. As the noble Lord, Lord Tunnicliffe, pointed out, this does not change any policy on this and those rights that UK carriers have at EU/EEA airports will also not be affected.
On the point about the replacement of the competition regulation, raised by the noble Baroness, Lady Randerson, and my noble friend Lord Balfe, the UK has participated fully in the legislative process regarding the replacement regulation; it is now ready to be put to the European Parliament and the Council of Ministers, and it is intended to serve the same purpose as the current regulation—ensuring fair competition. But the powers, as I said, and as highlighted by my noble friend Lady McIntosh, have never been exercised and it is unlikely that they ever will be. The EU has reviewed the regulation, but the vast majority of our bilateral air services agreements have articles governing fair competition, and these are what we use to ensure that there is a level playing field in the operation of international air services. That is why it has not been used and we do not expect it to be used.
My noble friend Lord Balfe asked, as he did previously, about our future plans. We keep our legislation under ongoing review and will continue to do so after exit day to make sure that it meets our policy objectives and legal obligations. While we would not be under an obligation if we left without a deal, if we chose to implement the replacement regulation it would be through primary legislation. Again, my noble friend is right to point out that, of course, in the event of a no-deal exit the EU’s statute book will continue to move on and we will need to be flexible about ours.
My noble friend Lady McIntosh asked about timetables. Airlines have already published their timetables for flights post March 2019 and tickets are being sold. The noble Lord, Lord Bruce, asked about Aberdeen and the allocation of slots. As I mentioned before, slots are allocated through ACL and the EU: the Government have no role in the allocation of slots and airlines determine how they are allocated on a commercial basis. Of course, if a carrier does not use its slots 80% of the time, they will be returned to the slot pool for allocation. We have the option of PSOs if needed, but the decision about specific slots will be down to the commercial airline.
My noble friend Lady McIntosh asked about the EU regulations. She is right to point out that they were published in December. There has been many a conversation on those, through industry and through member states. We are seeing some proposed changes, particularly on a capacity freeze, as my noble friend pointed out. I agree with her that the aviation sector is incredibly important to this country, which is why we are working hard to ensure that the industry can continue to grow sustainably. She is right that there are issues around ownership and control. We have not seen the headquarters of easyJet move but we have seen easyJet take on a Swiss air operator certificate. There is no immediate issue, as my noble friend pointed out, but, as one might expect, EU carriers are working closely with the Commission on that.
We are seeking continued participation in the European Aviation Safety Agency. That will help us continue trade as well as flights. We have played a significant role in EASA over the years and we very much hope to continue to do so. PSOs will be open to qualifying carriers—those with cabotage rights in the UK—and that has already been fixed in the operation of air services SI. Those carriers with cabotage rights could include those from the EU and other countries, so there will be the same requirements for PSOs going forward.
I hope that I have answered most of the questions. If I have not, I will follow up in writing.
Baroness McIntosh of Pickering
On the question of the damage to UK carriers arising from the loss of cabotage rights and freedom rights, do we have any estimate of what that will be?
Baroness Sugg
We are working very closely with the Commission on that. Obviously, there are implications both ways. We remain committed to working with the Commission on the regulation to avoid that. Of course, there are UK airlines which fly cabotage in the EU, in the same way that there are EU airlines flying cabotage in the UK. That is another example of how it is in our mutual best interests to ensure that we continue the market access we have today. Those discussions are ongoing and as soon as I have an update on them I will be happy to share it with noble Lords.
While we are working to agree a deal with the EU that is supported by Parliament, we need to continue our responsible preparation. Both the UK and EU have set out their intention to put in place arrangements to ensure that planes will continue to fly; none the less, these instruments are essential to ensure that we have a legal framework, particularly in respect of the allocation of airport slots, that continues to work effectively in the UK from exit day. That will help ensure the continued smooth operation of air services, irrespective of the outcome of the negotiations. I beg to move.
Motor Vehicles (Wearing of Seatbelts) (Amendment) (EU Exit) Regulations 2018
Baroness Sugg Excerpts(5 years, 10 months ago)
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Baroness Sugg
That the draft Regulations laid before the House on 29 November 2018 be approved.
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.
Baroness Sugg
My Lords, I thank noble Lords for their consideration of these draft regulations. As the noble Baroness pointed out, these regulations are important—seat belts save lives. In 2017, 27% of car fatalities involved people not wearing a seat belt, and we need to ensure that as many people as possible wear them. That is what these regulations are designed to do.
I take the noble Baroness’s point on the Explanatory Memorandum. The drafting of some of these has been a lengthy process—with consultation, legal checks et cetera—but I take her point, and we will endeavour to do better for future as we get closer in.
Both the noble Baroness and the noble Lord mentioned reciprocity. This SI only makes provision for continuity of current practices in so far as visitors from the EU to the UK, and drivers in the UK, are concerned. It does not address what will happen in the EU; that will be decided by the European Union.
There will be no legal obligation on member states to recognise medical certificates issued in the UK. In the event of no deal, we will recognise medical certificates. We think that is far and away the easiest way to do it. But no reciprocal agreement has been confirmed by the EU, so we advise anyone holding such a certificate to check the position with any country to which they intend to travel. There is a current format which we provide to GPs—it is essentially a GP certificate. They are responsible for issuing them, and we will ensure that that format is consistent when we leave the EU. We cannot guarantee that they will be recognised, but we would like very much to think that they would be in the same way that we will recognise theirs, although the EU has not yet confirmed that.
There is no change on seat belts. The EU directive requires drivers and passengers to wear them, if they are fitted, so the position there will stay the same. At the moment, the standards for child restraints are set at UNECE—the United Nations Economic Commission for Europe—which, despite having the word Europe in its name, as we discussed in the Automated and Electric Vehicles Bill, is an international body. It will continue to set those standards, and we will continue to follow them. Child restraints which meet the UNECE international requirements will be recognised by the EU; the vast majority of UK child restraints meet those requirements.
I think I have covered most questions. Again, if I have missed one, I will follow up in writing.
In conclusion, this SI will ensure that the domestic seat-belt wearing legislation continues to work as at present. The point of the SI is to maintain the status quo, both in terms of seat-belt and child restraint use obligations and in the recognition of medical exemption certificates from EU member states. The Government’s objective is to maintain the status quo to avoid difficulties that would be encountered by drivers and, indeed, enforcers if existing legislation remained untouched. I hope noble Lords will agree that this is sensible in respect of laws relating to the wearing of seat belts.