Haulage Permits and Trailer Registration Bill [HL]

Lord Tunnicliffe Excerpts

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

[Lord Tunnicliffe (Lab)]

My Lords, I get a sense from previous speeches—most of which have stolen the contents of mine, so I shall try to be short—that an awful lot of people are trying to understand the road haulage legal environment. That includes myself, and I admit to failing, so if I make assertions I will not be upset if the Minister tells me I am wrong.

It seems that in anticipation of multiple scenarios, the Government are doing three things: ratifying the 1968 Vienna Convention on Road Traffic; introducing a registration scheme for trailers; and introducing the capability of issuing permits. The 1968 Vienna convention was, I believe, signed at the time but not ratified. I got married in 1968 and that is a long, long time ago. It is difficult to understand why we have not ratified this convention earlier. My studies tell me that we depended on the 1949 Geneva convention before that.

The Vienna convention is now being ratified, which includes a process in this House—not that it is easy to notice that. The convention was laid in both Houses on 8 February this year and it will be dealt with under the Constitutional Reform and Governance Act 2010. This is a most unsatisfactory process because the only way you would know it had been laid is if you had picked up the Lords business and minutes of proceedings documents, for the fact that it was being laid was publicised on one day only, as is the convention of this House. The 2010 Act allows 21 sitting days for any Peer to pray against it. This is not the same as a negative instrument but it would create a debate. Because I would have to take the debate, I shall not pray against it. Why are the Government doing that? I quote from their own Explanatory Memorandum:

“The UK signed the 1968 Convention on 8 November 1968, and has now decided to ratify it for reasons of uniformity, to increase safety and to facilitate international traffic”.


One of the foolish things I did was to get a copy of the convention. It is quite long and in oldish language, but I assume the key paragraph is paragraph 3 of Article 3, on page 7, which states:

“Subject to the exceptions provided for in Annex 1 to this Convention, Contracting Parties shall be bound to admit to their territories in international traffic motor vehicles and trailers which fulfil the conditions laid down in Chapter III”.


It then goes on to specifics. But essentially, it seems to be the technical requirements to allow a vehicle to move internationally, and includes specifications about licences and what is to be accepted as a licence. A consequence of our decision to ratify that, as I understand it, is that it implies that trailers should be registered. This brings me to the Bill, which covers the two other things I mentioned: the registration of trailers and the issuing of licences.

As a generality, we will support the Bill, simply because, as with motherhood, you cannot deny somebody who is trying to create a contingency. It is an absolutely mad situation, but you still have to support the necessary procedures to cover the contingency. The registration of trailers more widely would seem quite a sensible thing to do. I would be interested in the extent to which registration of trailers includes the safety requirements that the registration of tractors does. It seems to me that it would be an anomaly if trailers are not required under British law to be as safe as their tractors. I cannot see, more widely, why one should be allowed to pull a trailer that does not meet the same safety standards as the vehicle you are pulling it with, although that may be outside the Bill.

We come now to the more significant part of the Bill and the fact that the Government propose to create an administration scheme for the issue of permits. It would have been irresponsible not to but, frankly, it is far from desirable. It is undesirable because it will create costs in an industry that works on very small margins and because requiring a new permit to be carried will invite friction at borders. All we learn about this industry is that friction at borders will be a significant hazard to successful operation.

What does the future hold for us? There is a contrast between the United Kingdom and the European Union here. In the United Kingdom, we have weekends at Chequers; in the European Union, they have a Commission. The Commission does not seem to know about weekends at Chequers, but just gets on and pumps out this stuff. One of the things it is doing now is pumping out documents called “Notice to Stakeholders”. I have in front of me the one created by the Directorate-General for Mobility and Transport, dated 19 January this year in Brussels, and titled, “Withdrawal of the United Kingdom and EU Rules in the Field of Road Transport”. Its tone is hardly friendly. I quote:

“In view of the considerable uncertainties, in particular concerning the content of a possible withdrawal agreement, road transport operators within the meaning of Article 2 of Regulation (EC) No 1071/20094 are reminded of legal repercussions, which need to be considered when the United Kingdom becomes a third country. Subject to any transitional arrangement that may be contained in a possible withdrawal agreement, as of the withdrawal date, the EU rules in the field of road transport no longer apply to the United Kingdom. This has, in particular, the following consequences in the different areas of road transport”.


This four-page document goes into a number of areas, but in the part entitled, “Access to the profession/to the market”, there is the following statement:

“As of the withdrawal date, a Community licence issued by the competent authorities of the United Kingdom will no longer be valid in the EU-27. Hauliers established in the United Kingdom will no longer have access to the internal road haulage market in the Union”.


That is the document’s only bright spot in its four pages. It also states:

“However, the multilateral quota system managed by the European Conference of Ministers of Transport (now International Transport Forum) would apply at that point”.


Hurrah, there is a fallback—until we look into what the fallback is. It is a convention or agreement—I am not sure of the right term—between 43 states, which includes all the EU states except Cyprus. The mechanics of that are laid out in an International Transport Forum document; that organisation now runs this scheme. Its document has many pages but I shall quote from one small part of it. Chapter 3, entitled “Issuing and limits of ECMT licenses”, states:

“ECMT licences … are multilateral licences, delivered by the ITF/ECMT, for the international carriage of goods by road for hire or reward by transport undertakings established in an ECMT Member country, on the basis of a quota system, the transport operations being performed: between ECMT Member countries; and in transit through the territory of one or several ECMT Member country(ies) by vehicles registered”.


Apparently, we have a process that we can fall back on.

However, the magic word is “quotas”. The quotas, we are told, have a maximum number—1,224—of multiple-use annual permits. The Lords Library briefing suggests that there are 30,060 certified copies of the Community licences. As far as I can see, that is the equivalent of the permit. The only problem is the difference between them—that is, the number of permits that would be available in this quota are some 4% of the certified copies that have been issued. The effect of this would clearly be catastrophic. Clearly, the Government anticipate the problem of not having enough permits, because they include in the Bill—in Clause 2(2)—a reference to how they will manage a situation where there are insufficient permits. They go on to say that the Bill will,

“include random selection and first come, first served”.

I cannot think of anything more terrifying than that system.

The Government anticipate failure and I have to say, with their present attitude to the customs union and single market, it seems that there is a very steep hill to climb. Failure would be unacceptable. Society could not exist. The noble Earl, Lord Attlee, pointed out that, normally, societies avoid catastrophic situations. Sadly, looking back over the past century, often they did not. This could be just such a situation, be it in road haulage, air transport or maritime.

My only real question for the Minister is: can she set out how the Government plan to achieve transport agreements that will leave us with a viable and flourishing road transport industry?