Exiting the EU and Transport

Alan Brown Excerpts

Wednesday 23rd November 2016 Commons Chamber

[Chris Grayling]

I am not necessarily a great fan of inappropriate subsidies, but I hope and believe that as we negotiate free trade agreements with countries around the world we shall create an environment in which trade and freight haulage are conducted on a level playing field, and that there are no artificial barriers that push up our costs and help others to reduce theirs. Above all, however, we benefit from a world in which trade flows freely. That is clearly in the commercial interests of European hauliers, especially hauliers from the Irish Republic. I am very aware that as we enter the negotiations, we have a particular duty of care to our friends in the Republic. We have a duty to seek to reach an agreement that will ensure that their trade, which frequently involves travel by road through the United Kingdom to other parts of Europe, can flow smoothly. It is in all our interests to ensure that we have sensible cross-border arrangements.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

The Secretary of State mentioned discussions with haulage companies. Is he discussing with them the fact that they currently rely on EU drivers, courtesy of licence harmonisation, and the fact that, even so, it is forecast that there will be a shortage of 40,000 HGV drivers by 2020? Is he having discussions about what the Government can do to plug that skills gap?

[Chris Grayling]

Absolutely. The task is within the remit of the Minister of State, Department for Transport, my right hon. Friend the Member for South Holland and The Deepings (Mr Hayes). Not only is he the Minister responsible for our strategic road network but, as a former skills Minister, he holds the skills portfolio in my Department, and I know that he is very exercised about this issue. Of course, with a managed system of migration, we shall be able to recruit skills internationally when we need them, but I want a new generation of young drivers. There is much that we can do to make the profession more attractive, and my right hon. Friend is working on that at this very moment.

I have talked about the potential for a more tailored regulatory framework for the ports sector after we have left the European Union. We have a thriving and competitive ports sector, strong international investment, and some first-class facilities. I believe that the sector will be an essential part of a nation that is focused on global trade, trading opportunities, and opening up trade links with other countries.

Our railway services through the channel tunnel link us with the continent, but apart from that Britain’s rail network is domestic. Although on day one after exit the rules will be the same as before, in future we shall be able to make our own decisions about changing those rules. We currently have a derogation from many of the EU standards for our existing railways. That is because many of them date back to Victorian times and were built to entirely different standards. That is not the case for new railways, so one example of the kind of challenge that we are dealing with in the construction of HS2 is the fact that European specifications for platform heights are inconsistent with flat access for disabled people on to trains. We have to address that as part of the development of HS2, but it is an example of how, freed from European Union regulation, we can make sure that we do a better job, in this case for disabled people, which I believe that Members on both sides of the House will think is the right thing to do.

I talked about the global opportunity for Britain, and across the transport sector I am determined not only to negotiate the best deal for Britain within Europe, but to find new opportunities for our transport sector around the world. We should support our industries as they sell their expertise and products and seek to win major contracts around the world. We have world-class expertise in this country in the automotive sector, aerospace, logistics, transport engineering, rolling stock manufacture and much more. We need to be confident in offering these services to the world, and we have every reason to be confident: we are doing some great things in this country at the moment, from the first-class work being done to deliver Crossrail in London to the high-quality automotive technology that is developing the new generation of autonomous and semi-autonomous vehicles.

--- Later in debate ---

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Thank you for calling me, Madam Deputy Speaker. I am sorry, but I am feeling a wee bit dizzy because I am not usually so high up the speakers’ list. It is also confusing that there is no limit on our speaking time. Clearly one of the reasons why I have been called so early is the real lack of Back Benchers in the Chamber. Given how many people have told us how bad Europe is and about all the wonderful opportunities that there will be following Brexit, I should have thought that Members would be queuing up to tell us about those opportunities.

[Sir William Cash]

I understand that the hon. Gentleman is about to become a member of my European Scrutiny Committee, so I simply say that I entirely endorse what he has said. Furthermore, many of the remoaners, and the doomsters and gloomsters, are not here defending the positions that they were taking before—I am not just referring to SNP Members. That is where a lot of the problems lie.

[Alan Brown]

I thank the hon. Gentleman for that helpful intervention. Clearly we are part of the remainers, and we represent our constituents. The majority of our constituents across Scotland voted to remain, so we must represent them.

The hon. Member for North Antrim (Ian Paisley) made a bit of a play of highlighting opportunities, but really he highlighted some of the problems with the European Union rather than proper opportunities. He seemed to put a lot of faith in the myth that the Government will invest the money that will not be going to Europe. He trusts the Conservative Government to invest that money. He used the word “subsidy”, although he knows full well that no Tory Government ever volunteer to pay money for subsidies.

This has been a wide-ranging debate. I will focus on road transport, but just before I do, I want to go back to the open skies debate. Prestwick airport, which is in one of my neighbouring constituencies, is a big employer for my area as well as for the constituency it is based in. It would be good if the Minister confirmed that Brexit will not affect Ryanair’s flights from Prestwick and tell us what the Government will do to mitigate any effects. I will throw out one opportunity for Prestwick—to be fair, this is not to do with the European Union—which is its potential as a spaceport. It is high time the Government made a decision about that.

As I said, I will focus on road transport. The Secretary of State said quite correctly in his opening speech that road transport affects us all. Given the proportion of goods that are transported by road to shops, road transport is fundamental to the price of goods. According to Government figures, almost three times as many goods are moved by road as are moved by rail and water combined, which shows us that road is the transport king.

That brings us to the question: what has the EU done for road transport? Apart from the harmonisation of licensing, the harmonisation of vehicle design, European Union-wide regulations for the transport of goods, workers’ rights legislation such as the Working Time Regulations 1998, the Road Transport (Working Time) Regulations 2005, the Agency Workers Regulations 2010 and the Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002, and funding for road schemes in Scotland, the EU has not done much to help road transport.

What else has the EU given us? Apparently, as the guys who are not here continually tell us, the EU has given us endless red tape and regulation. Let us look at how the EU has actually meddled in the pan-European transport of goods by road—this point was touched on by my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry). In 1998, a lorry travelling from Milan to London required 88 separate documents. The EU got involved, and after much wrangling, the number of documents now required is one. The number has gone from 88 down to one—that is the red tape that the EU has created for the transport of goods across Europe. In the 1980s, there were 100,000 sets of technical regulations across the member states. Thanks to the EU, they have been consolidated, and there is now one set of EU-level regulations.

We heard about ports earlier. Ports are integral to the import and export of goods for road haulage. As we have heard, ports handle 90% of the UK’s trade. Leaving the EU means that there is a risk that instead of a seamless journey on and off a ferry, there could be extended customs checks, which will slow progress. As we have heard, the infrastructure is not geared up for that, which could mean that ports will require additional parking. Some of the checks need to be repeated for each country that a lorry traverses. Given that the World Bank estimates that the customs clearance process for a single freight container adds around a day to the import process, it is clear that we could face a massive cost and logistics nightmare. Will the Minister therefore confirm that he is fighting for access to the single market and the customs union?

According to the Treasury’s figures, EU membership is estimated to increase trade with EU members by between 68% and 85%. I know that there has been a whole debate about how inflated the figures might or might not be, but even if they are inflated, they still show that there is huge benefit from our membership of the single market.

Has the Secretary of State and/or the Minister discussed the customs union with the automotive industry? At the moment, car components criss-cross the continent before returning for use in final assembly at car plants, so the customs union is a major positive for the automotive industry. The industry is completely appalled by the lackadaisical argument that simply claims that no tariffs will be applied because of the importance of the UK market. It has confirmed that tariffs are its No. 1 concern, so will the Minister touch on that when he sums up?

Nearly 300,000 HGV drivers were employed in the road haulage industry last year. In April 2015, only 1,165 jobseekers recorded their standard occupation as HGV driver, so it is clear that a HGV driver qualification is a pathway to full employment. Even so—we touched on this earlier—the road haulage industry is having to take advantage of EU nationals, using licence harmonisation, to plug the skills gap. There is a predicted shortage of 40,000 HGV drivers by 2020 and the Government do not challenge that figure. That situation will only get worse unless there is a post-Brexit reciprocal licensing arrangement.

I have repeatedly called for the Government to implement a grant scheme to allow small haulage companies to train new HGV drivers. Such a scheme would pay for itself from welfare savings. To date, I have heard nothing from the Government. The Secretary of State said that the idea was with the Minister of State, Department for Transport, the right hon. Member for South Holland and The Deepings (Mr Hayes), who is responsible for skills in the Department for Transport, but it is time we started hearing some concrete plans.

The last key topic I will touch on is road funding, which is particularly relevant to Scotland. Another dividend of the UK Union that we suffered from in Scotland for many years was a lack of investment in our road systems. It has taken an SNP Government coming to power to really push that agenda, in particular with the new M74 and M80 motorways, and the ongoing £500 million M8, M74 and M73 upgrades. It is ridiculous to think that there has never been a continuous motorway connecting Edinburgh and Glasgow; the SNP Government are having to rectify that.

[Drew Hendry]

It is not just the motorways my hon. Friend mentions that were neglected for a long time; many connections to rural Scotland such as the A9 were given no attention. The Scottish Government are now dualling the entire A9 between Perth and Inverness.

[Alan Brown]

I welcome that example and will come on to another shortly.

Investment for the current motorway upgrades came from the European Investment Bank, which drew in other international investment. Will such avenues for investment still be available at affordable rates to the Scottish Government in the future? It would be good if the Minister provided some clarity on that.

Anyone who has travelled to the highlands will know how many roads there are still single track, with passing places for oncoming vehicles. Those roads are lifelines. One example is the Fort William-Mallaig road, the road to the isles, which was completed as a two-lane carriageway only in 2009; previously, it was known as the worst trunk road in Europe. That shows the lack of investment that came to us from Westminster. The upgrade was completed partly with European funding. The allocation included £3 million from the European regional development fund, as well as European transitional fund assistance. That is proof that the EU managed to get money to Scotland that would not have come from direct funding.

Scotland secured a total investment of €941 million from the European structural fund in the 2014 to 2020 programming period. Of that, £14 million has been allocated to the low-carbon travel and transport strategic intervention programme, which helps to fund low-carbon transport hubs and active travel hubs, and £10 million is being invested in the smart cities strategic intervention. ERDF money has also been allocated to Strathclyde Partnership for Transport for various public transport upgrades. What will happen to the money that has not yet been allocated? Again, we do not know, as there are no guarantees from the Government. It is time they started to provide some certainty. The Scotsman reported a couple of days ago that councils in Scotland were worried about the possibility of losing £46 million of EU funding each year. Much of that money goes to local transport-related projects.

I mentioned travel in the highlands earlier and my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) touched on it, too. One common sight is busloads of tourists traversing the country. Many rights of passengers, particularly in relation to disabled passengers, are incorporated in regulations covered by EEA membership. Tour operators entering Scotland and the wider UK may choose not to enter the country in the future because EU passengers might not want to have to apply for a visa as part of a tour package.

It can be argued that many of these issues are not insurmountable, but the fact is that 8% of all travel in the EU in 2014 was attributed to buses and coaches, with 6.5% to rail. The Department for Transport gave very little consideration to buses in its “Balance of Competencies” report released ahead of the referendum, despite the volume of regulations in place to protect coach passengers within the EU.

It is clear that EU directives have made our roads safer and protected the rights of HGV drivers. They have made the transport of goods easier, and therefore cheaper, within the customs union. The free movement of goods and people in conjunction with the licence harmonisation process has been vital for the haulage industry. Without it, there would have been market failure by now. There has even been harmonisation of the blue badge system for people with disabilities. Will that be reciprocated post-Brexit? As I outlined, the EU has contributed funds for much-needed road upgrades in Scotland. It is high time the Government understood that Brexit means a lot more than Brexit, and that we want clarity.