Motor Vehicles (International Circulation) (Amendment) Order 2022

Lord Tunnicliffe Excerpts

Monday 13th June 2022 Grand Committee

[Baroness Randerson (LD)]

My Lords, I thank the Minister for explaining so clearly how this will work. The Government launched this SI with much fanfare early last month—fanfare and the obligatory swipe at the unacceptable nature of EU bureaucracy that necessitated the SI. That is called Brexit, and those of us who opposed Brexit pointed out that if you do not belong to the club, you cannot benefit from the rules and, unfortunately, that lesson is becoming all too clear. Hence, we have this measure, which is one of a long line of complex, awkward fixes that we have discussed here in this Committee, over the months and years, to try to defray the damage that we are suffering from as a result of no longer being a member of the EU.

Of course, this order is very welcome as far as it goes, but it has taken a long time to get to this point. Since we left the EU, our specialist hauliers have been limited to, I think, three EU stops per tour, and many of them have already established bases in the EU to overcome this, with a resulting loss to the UK economy. It is not as if the firms in this sector did not warn us that this would happen. I was a member of the EU Internal Market Sub-Committee, and back in 2018, we took evidence from an organiser of major exhibitions who predicted exactly these problems.

One of the phrases the Government like to use frequently is “world-beating”. Often, it is a sad exaggeration, but in relation to the cultural sector it is very accurate. I would prefer to say “world-leading”, but the point is that our soft power through the cultural sector has been immense and is sadly diminished as a result of the constraints on touring in Europe. I have a number of questions for the Minister. It is 18 months since we left the EU. Can she perhaps explain why it has taken this long to get to this important measure? Ideally, it should have come in smoothly and immediately after we left the EU.

Paragraph 7.6 of the Explanatory Memorandum refers to a maximum period of transfer for a vehicle to a British operator licence as being

“six months in a twelve month period.”

I understand the concept of “temporary”, but why is six months the definition of “temporary”? Why not eight months or any other number of months within 12 months? Is there a legal basis, or is this something that was just added on?

Paragraph 7.4 says:

“This Instrument does not permit transportation of any item of goods for the intention of being sold on (such as merchandise).”


That is actually a very prescriptive limitation. I was part of a music group many years ago touring in Europe, and we took CDs with us. There would not be CDs now, but we also took t-shirts and souvenir programmes to be sold. It would appear that we would not be allowed to do that now. Such items are, very often, marginal. They are just part of giving that little extra edge to the operator. They are an important part of spreading our soft power, getting the name of the group known abroad.

So why is it that they are excluded? It seems it could incur considerable or disproportionate expense to carry them separately—a whole separate vehicle or separate haulage charges in some other way. It does not, to my mind, seem necessary. Was any consideration given to allowing goods of that type to a certain limited amount—maybe limited in total value or limited as a proportion of the total?

The net result of this SI is that some foreign-registered vehicles will be operating in the UK on British operator licences. This in itself presents enforcement challenges, which I am sure the Minister will have gone through, but could she give us some idea of the numbers expected to be affected by this? Is it hundreds, tens or thousands? What estimate has been given? There is a lack of impact assessment once again. The words used are that there is no significant impact on business. I had hoped that there will be a significant impact on business and therefore I am surprised that an assessment was not made.

Of course, I welcome this hope it does the trick, although the Minister has reminded us that it might not work for everyone. Sadly, we have heard of a number of artists who have stopped touring already and, unfortunately, they will not all return as a result of this. We have lost stature as a result of this situation.

[Lord Tunnicliffe (Lab)]

My Lords, I was expecting a very dry debate on this relatively straightforward SI, but one of the joys of this place is that you are allowed to discover fellow Members meeting by meeting. The idea of the noble Baroness, Lady Randerson, leading a life previously as a groupie—though I hope not quite at that level—adds a little excitement to this debate, which it perhaps needs.

I welcome the introduction of this instrument to support British touring overseas. The House is aware that, since the UK left the European Union, companies which tour Europe have faced new obstacles in continuing their work and we all hope that this order will help them overcome this. The Government are right to bring forward these new provisions to allow certain hauliers to operate both in the UK and EU without having to pay vehicle excise duty—in effect, benefitting from the single market access rights.

I will not detain the Committee for long but there are three issues on which I would appreciate clarification. First, can the Minister explain why the measures are coming into force in August rather than earlier, especially given that the industry is particularly busy during the summer season? Secondly, the department has estimated that up to 50 specialist events hauliers, which in total have 1,000 vehicles, may decide to use this measure. How was this figure calculated and what proportion of specialist events hauliers does it represent? Finally, what steps will the Minister take to make the industry aware of these changes and to monitor their effectiveness? I hope the Minister can provide clarification on these points.

[Baroness Vere of Norbiton (Con)]

My Lords, that was relatively brief and moderately pain-free, but I will certainly answer as many questions as I can—and will write, as I can spot at least two I am feeling a little bit dubious about.

I think it is worth scooping up comments made by the noble Baroness, Lady Randerson, and the noble Lord, Lord Tunnicliffe, about what the timelines for this look like, how we ended up where we are now, why it was not done earlier, et cetera. Eighteen months ago, when we finally left the EU, there were all sorts of other things going on. There were not that many tours going on at the time, but we were aware that there was this potential issue with specialist events hauliers. As noble Lords may be aware, we explicitly requested bespoke arrangements for this sector when we were discussing the TCA, but the EU rejected those proposals so we have had to develop from there. It is the case that we went back and 100% checked with the EU whether it was absolutely sure that it could not think of some way for it to proceed. DfT officials raised that matter at the specialised committee on road transport in November 2021, noting that this sector had been disproportionately affected by the TCA and that this would have knock-on effects on artists affecting future cultural exchange for both sides.

We did not get far on that—I am not going to lie—and therefore realised that we would have to speak to the sector, as we would normally do in these circumstances, to understand exactly how we could help it. We did the consultation in February 2022. I cannot remember exactly how many people responded; I think it was something like 28. It was not a huge number, reflecting the relative size of the sector, which is not massive. After the consultation closed, we had to analyse the responses and shape the final policy position because, as I noted in my opening remarks, this does not help everybody and we wanted to make sure that we could help as quickly as possible. That is a very long-winded way of saying—the noble Lord, Lord Tunnicliffe, looked at his watch there—that the earliest we can get this into force is in August 2022.

However, I have positive news because we have done an interim measure. It is an exceptional administrative process which basically allows what we are proposing in the statutory instrument to happen now. That means that we have managed to safeguard the process over this summer. If differs from dual registration in that no legislative changes are required and it is instead implemented through an administrative arrangement with the Office of the Traffic Commissioner, but we recognise that that is quite temporary and we do not want to continue that arrangement without a firm legal footing. That is where we are with that.

The noble Baroness, Lady Randerson, asked why six months, and I am afraid I do not have the answer. I think there is a broader issue about vehicles coming into the UK in general, in that they can come in for six months before something has to happen. I will write to the noble Baroness because I do not think that is a good enough answer.

The noble Baroness raised an important point about merchandise, which I thought was very interesting. However, the goal of what we are trying to do today is to focus on certain specialised vehicles. The reason we have this problem is that you load your cultural objects or your things relating to your event into your truck, which itself is specialised for transporting specialised equipment. That is why we are very clear that that equipment must not be amended, altered or sold, otherwise it becomes something entirely different. When it comes to merchandise, you do not need a specialist truck to transport CDs, brochures or whatever; they can be transported by any good courier company. I shall see whether I can find anything more about that. The whole point of this order is to focus on these trucks, which are simply not available to meet the needs of the artist or whoever across the EU, and you would not want to change them.