International Road Transport Permits (EU Exit) Regulations 2018

Lord Rosser Excerpts

Tuesday 6th November 2018 Lords Chamber

[Lord Rosser (Lab)]

I too thank the Minister for setting out the content and purpose of these draft regulations and order. I share the concerns already expressed, and will revisit only some of them due to the time constraints that I know we are under today.

The draft international road transport permits regulations are laid, as are the others, under the Haulage Permits and Trailer Registration Act 2018. That Act allows arrangements to be put in place to enable international road haulage to continue after departure from the EU. Those arrangements create a framework for a single permit scheme that will deal with bilateral permit arrangements between the UK and non-EU countries, the multilateral European Conference of Ministers of Transport—ECMT—permit scheme and any future permit scheme that may be agreed with the EU. The draft order also includes provisions on applying for and granting a permit, along with provisions on cancellations, appeals and charging.

As has already been said, the ECMT permit scheme provides for a limited number of permits to be available to the UK. It is not much used at present, as the Community licence covers haulage to EU member states. However, if there is no deal for EU countries, Community licences will no longer be recognised from exit day, in which case UK hauliers will need either an ECMT permit for journeys to, in or through the EU, or a bilateral permit under an existing agreement with an individual EU member state to carry goods to, from or through the territory of that member state. But the number of ECMT permits available is limited, and demand for ECMT is expected to significantly exceed supply. Can the Minister say by how much demand for ECMT permits is expected to exceed supply in the event of no deal, and with which EU states there are existing bilateral agreements covering the carriage of goods—or alternatively, with which EU states there are no existing bilateral agreements?

The Explanatory Memorandum says that these regulations provide for an objective and transparent way of selecting which applications should be allocated permits. But what happens to those applicants who are not allocated permits from the limited number available to the UK? What will be the impact on them, and on our economy? If there is no deal or no satisfactory deal, how many applicants is it expected there will be who will not be able to get either an ECMT permit or a bilateral permit? How many UK hauliers currently have a Community licence? How will the Government assist operators who are not granted a permit and who may experience an adverse impact on their business as a result?

The Government have said that they are working to have bilateral agreements in place by exit day. Is that a bilateral agreement with each EU member state, and are the Government giving an assurance that such agreements with each member state will be in existence and effective by exit day? The Government have said that there are nearly 3,000 monthly ECMT permits. How will the operation of these monthly permits work in practice? Will UK hauliers have to reapply on a monthly basis, and how will the Government assist hauliers who need longer-term plans for their operations than monthly permits can provide?

The regulations grant the Secretary of State discretion to determine the allocation of permits where they are oversubscribed. How will the Government ensure that there is a fair and consistent approach, in particular over “random selection”, which is referred to in the regulations and which has already been referred to in today’s debate.

I will not go into the Trailer Registration Regulations 2018 at any length, except to say that I very much share one of the concerns in particular that the noble Baroness, Lady Randerson, expressed, on the level of awareness issue.

The road safety financial penalty deposit amendment order 2018 sets out the monetary amount of the financial penalty deposit—the FPD—for specified offences relating to the use of goods vehicles and trailers without the appropriate authorisation, FPDs or registration. FPDs can be taken immediately from a person without a UK address who is believed to have committed a specified offence. A separate order will designate specified offences relating to haulage permits, trailer registration and community licences as FPD offences. The specified offences under the Haulage Permits and Trailer Registration Act 2018 relate to failing to produce a permit when required to do so by an examiner, obstructing an examiner or breaching a prohibition on the use of a goods vehicle on an international journey.

Will the Minister say how the conclusion was reached that the level of deposits shown in the SI is appropriate for the offences in question, bearing in mind for example that,

“wilfully obstructing an examiner exercising powers”,

and carrying out an inspection attracts an FPD of just £300; likewise, a similar amount for “breaching a prohibition” or,

“causing or permitting a breach of a prohibition …on taking a vehicle to a country without reasonable excuse”.

We are talking about goods vehicles, trailers and safety issues since this is a road safety order. How wilful has the obstruction of the examiner got to be, and how blatant a breach of a prohibition, before an FPD is not considered appropriate? Once the requirement to pay an FPD has been imposed under the terms of this draft instrument, what further action will be taken in the light of the offence?

[Baroness Sugg]

My Lords, I thank noble Lords for their consideration of these draft regulations. Throughout the passage of the Haulage Permits and Trailer Registration Act there was valuable debate, which allowed us to refine and improve the Act and ensure that it laid out the necessary framework. I am grateful once again for the opportunity to consider the detail of this legislation. I shall attempt to answer all the questions, although I am not sure I will be able to in the time allowed. If there are questions I do not get to, I will follow up in writing.

On the requests for current haulage industry figures: there are 8,400 standard international licences currently in use and 32,000 Community licences. Our figures show that if hauliers were to make one trip per week on each permit, around 20% of current activity by UK HGVs could be facilitated on ECMT permits alone. However, 20% is not enough and we do not expect to rely solely on ECMT permits. These regulations and the published guidance refer only to ECMT permit applications. We do not yet know the outcome of negotiations, so we are not able to provide further information to hauliers on that. Whether with the EU or with member states, it could be that no permits are required at all. In that case, obviously these regulations will not come into force.

I will say a little more on the permit application process—