Haulage Permits and Trailer Registration Bill [HL]

Lord Berkeley Excerpts

2nd reading (Hansard): House of Lords
Tuesday 27th February 2018 Lords Chamber

[Lord Berkeley (Lab)]

I am grateful to the House for allowing me to speak in the gap.

I am interested in the way in which the Conservative Party has done a complete U-turn on this issue over 25 years. When I was building the Channel Tunnel, one of the arrangements Margaret Thatcher was pleased about was that she negotiated cabotage mainly with France because the French haulage industry was not keen to have British trucks going into France and doing cabotage there. In return for building all the trains in France, Mitterand allowed the UK to have cabotage. That was the start of the single market in transport, and here we have the same party trying to close it down today, which I find rather sad.

I saw Barnier and his team last year, as did the noble Lord, Lord Teverson, and he gave me the same message: industry must be prepared for a cliff edge and there will not be any cherry picking. Nothing seems to have changed. The Bill is a good start as an attempt to cherry pick but, as many noble Lords have said, what about the continental drivers who are going to come to the UK? About 80% of cross-Channel traffic is now provided by non-UK registered trucks and drivers, and I cannot see much point in setting out what we want unless we can reach agreement with the European Commission as to what happens the other way. Many noble Lords have referred to this.

It is worse with the issues in the Republic of Ireland, to which the noble Lord, Lord Whitty, briefly referred. I have an interesting paper on Brexit produced by the Irish Academy of Engineering, which gives many statistics, including that about 1 million trucks or unit loads cross the frontier from the Republic. Some of them are destined for Northern Ireland while others go straight across the sea. The report states that 95% of the units go to and from Great Britain and two-thirds of the traffic to and from the continent goes through what they call the “land bridge”. It points out that that will involve four customs checks unless the system is changed. I cannot believe that the Irish Taoiseach, Mr Varadkar, whom I have met once and who I think is doing very well in sticking up for the Republic, will be pleased about that.

I understood the Minister to say in her opening remarks that there was no need for registration, whether for trucks or trailers, between the Republic and Northern Ireland. I do not know, but I hope that she will be able to clarify that in her response to the debate. As many other noble Lords have said, I do not see how we can have no checks on registration between the Republic and Northern Ireland and no checks on registration across the sea.

Finally, several noble Lords have put this to the Minister. If we have a system for issuing licences for trailers, trucks or drivers, how long will it take to develop and how much will it cost? She will remember that HMRC was asked a similar question last autumn: what would it cost to handle the customs on trucks? The chief executive said that it would take five years to develop an IT system, he could not say what it would cost and the work cannot start until HMRC knows what has to be done. We are going to have five years of misery on the licensing, assuming the Department of Transport can do as well as HMRC—I do not know whether it can—before something good comes out of it, if it ever does. I look forward to the Minister’s response.

--- Later in debate ---

[Baroness Sugg]

We are working with the existing IT system at DVSA, so there would be no additional contract. I can certainly provide the noble Lord with further details on that.

The noble Lord, Lord Teverson, asked about the implementation period. Obviously, this is being discussed. The Government have been clear that the implementation period will be based on existing rules and regulations. I hope that we will reach agreement on that soon, which should provide some reassurance to industry.

The noble Lord, Lord Bassam, asked about the recognition of driver qualifications. The treatment of drivers’ certificate of professional competence will—again—depend on the outcome of negotiations with the EU, but our objective is absolutely to ensure that following our exit from the EU, CPCs will continue to be recognised.

The noble Lords, Lord Teverson and Lord Berkeley, asked about access for foreign hauliers, including cabotage. These, again, are important issues for negotiations that we are considering carefully for any future arrangement. In any scenario, there is existing domestic legislation to provide appropriate access for foreign hauliers coming to the UK, so the Bill does not address that specifically. However, as the noble Lord, Lord Berkeley, pointed out, it is an important part of the negotiations, and it will obviously be part of the discussions.

The noble Lord, Lord Tunnicliffe, and others mentioned ECMT permits. The permitting system operated by the European Conference of Ministers of Transport is an international agreement entirely separate from the EU and will not be part of our negotiations. The ECMT permits currently allocated to the UK are little used and we have absolutely no intention of allowing them after we leave the EU.

As much as I would love to give the noble Lord, Lord Bassam, a timeline for our transport negotiations, I am unable to do so. We are working closely with industry to understand its requirements and priorities, and have been doing so since the result of the referendum. We represent those views to the Department for Exiting the European Union. That department and the Department for Transport stand ready to move forward with the transport negotiations as soon as they begin.

The noble Lord, Lord Snape, spoke about optimism. I agree with him that we do not want to return to rationing. We are optimistic in these negotiations and am pleased that at least my noble friend Lord Attlee shares that optimism. It is absolutely to the mutual benefit of us and the European Union that we maintain liberal access; 84% of the freight transported between the UK and continental Europe is operated by EU hauliers, and it is in both our interests that we have a successful outcome.

[Lord Berkeley]

If this goes ahead and we have licences here for drivers and trucks to operate on the continent, we will presumably need some approval process. Perhaps it would not be a taxing system but it could work alongside the customs declaration for all the 80% of foreign trucks coming into the UK—either into Northern Ireland from the Republic or from the continent. Has that been taken into consideration?

[Baroness Sugg]

Certainly not in the context of the Bill. I apologise for going back to this, but exactly what that will look like is a matter for the discussions with the European Union as part of the negotiations.

The noble Lord, Lord Snape, asked about the reservations to the Vienna Convention on Road Transport. We will be making reservations in respect of six sections of the convention, relating to jaywalking, parking direction and so on. They apply only domestically and will not affect the other countries. It is usual practice for countries, on ratifying the convention, to put forward such reservations. We do not expect there to be any issue on that.