International Road Passenger Transport (Amendment) (Northern Ireland) (EU Exit) Regulations 2019

Baroness Vere of Norbiton Excerpts

Monday 20th May 2019 Lords Chamber

Moved by

[Baroness Vere of Norbiton]

That the draft Regulations laid before the House on 3 April be approved.

Relevant document: 47th Report from the Secondary Legislation Scrutiny Committee

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con)]

My Lords, I will start with some background to these regulations. EU legislation governs access to the international passenger transport market. The EU regulation establishes the conditions for the international carriage of passengers by coach and bus within the EU, and cabotage within member states by non-resident EU operators. It covers regular timetabled services and occasional services such as holidays and tours. It establishes for this purpose a system of community licences, which act as the international bus and coach licences used within the EU, and for these licences to be issued by the competent authorities of member states.

To ensure the continuation of bus and coach services in the event of no deal, the Government have already made the regulations on common rules for access to the international market for coach and bus services. These were approved by this House on 25 March. That SI amends the retained UK version of the EU regulation on a UK-wide basis. It allows EU-based operators to continue to access the UK market through the continued recognition of community licences and control documents issued by EU member states.

Turning to the content of this SI, Section 2 of the withdrawal Act will retain EU- derived domestic legislation which gives effect to the EU regulation in Northern Ireland. This SI, which applies to Northern Ireland only, adjusts the language and references in those pieces of retained legislation. The draft regulations make minor and technical changes to reflect the fact that the UK will cease to be an EU member state. For example, they remove references to “community licence” and “community rules” from relevant Northern Irish domestic legislation. The regulations also ensure that domestic enforcement provisions may continue to be applied to EU operators so that the Driver and Vehicle Agency, the relevant enforcement body in Northern Ireland, can continue to take action.

I turn to our approach to maintaining UK access to the EU. In the event of no deal, UK operators will be able to continue to access the EU market through the Interbus agreement in respect of occasional services. That agreement is an EU multilateral agreement which allows bus and coach operators to carry out occasional services between the participating countries: currently, the EU and seven other contracting parties in eastern Europe. The UK has completed the accession process and will become a member of the Interbus agreement in its own right in the event of no deal.

The agreement will be extended to regular services in due course but, until the end of 2019, access for existing regular services would be through the EU contingency measure on basic road freight and road passenger transport connectivity. This contingency measure, which was approved in March, will enable UK operators to continue operating existing regular timetabled services to EU member states until 31 December 2019. Since it was agreed, an extension to the exit date has been granted until 31 October, so we will work with the EU to determine the impact of this on the timing of the measure. This is particularly important to the ability to carry out bus and coach cabotage in the border counties of the Republic of Ireland, which is currently allowed only until the end of September.

The EU contingency measure is dependent on the UK reciprocating. If it does not, the EU could suspend rights for UK operators to continue running regular services under the EU regulation, ensuring basic road connectivity in the event of no deal. In this case, no UK regular services would be able to operate in the EU.

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Finally, I will comment on the fact that there is no impact assessment, despite the fact that we are talking about services—at least I believe that there is no impact assessment. I read through the final part of this SI, which said that there was no impact assessment—but I apologise if I have made a mistake. If that is true, I am concerned, because there would be a considerable impact on the industry and the daily life of people in Northern Ireland. However, if I misread that, I stand to be corrected by the Minister.

[Baroness Vere of Norbiton]

I thank all noble Lords who have taken part in our short debate today. It is an important debate, however, and is vital for the 900,000 journeys made across the Northern Irish border. A number of issues were raised. I will start by discussing how we ended up with this slightly odd mismatched date situation, with the September and December dates, and then I will cover the Interbus agreement, cabotage and what this means for new services in Northern Ireland.

The arrangements for both regular services and cabotage by Northern Irish operators were set by the EU in its contingency regulation on basic road transport connectivity—I think we are clear on that. However, much of the content of the regulation was put in place in Article 50 format, which means that the UK was not in the room at the time this was agreed. We worked hard with our Irish colleagues to raise the importance of access, including cabotage, on the island of Ireland. The date for regular services—the one at the end of September—was set to allow sufficient time for the protocol to the Interbus agreement on regular services to enter into force. The date for the cabotage services was set at the end of September—noble Lords will recall that, at that point, exit day was going to be in March—to enable alternatives to be put in place for cabotage. Now that the date of exit has been pushed back to October, obviously we will work hard with the Commission and member states to make sure that the dates are extended if they need to be.

We need to extend the Interbus agreement to regular services. The EU is one of the four parties that needs to sign the agreement to extend the coverage, and the Commission is the secretariat to the Interbus agreement. In our conversations with the Commission, and specifically with DG MOVE, it has indicated to us that it will be extended. We will continue to work carefully with the Commission and member states to encourage them to sign; I feel that the process that is likely to happen is that the EU will sign and then others will follow. We therefore have confidence that the Interbus agreement will be signed and, if it is not, we will seek to negotiate an extension with the EU or to put in place bilateral agreements with specific countries as needed.

On cabotage, which is the transport of passengers between two places in the same country by a transport operator from another country, the noble Lord, Lord Rosser, asked a question about what limited cabotage was. In this case it is limited because it is only an operation for the six counties in the Republic of Ireland which border Northern Ireland. That is the limitation of this cabotage. The no-deal legislation that we already have in place would allow EU operators to continue such cabotage operations. Under the EU regulation, cabotage is allowed for regular and special regular services within the Irish border counties, as I have noted. I can therefore assure noble Lords that the Government recognise the importance of cabotage, particularly on the island of Ireland, and that we will work closely and fairly rapidly with the Republic of Ireland and the EU to make sure that cabotage can continue.

There was a question about what would happen if neither of those agreements was in place. That is hypothetical—I do not expect that they would not be—but it leads to something slightly more interesting. If we did not accede to the Interbus agreement under the protocol in our own right for regular services, the EU could offer regular services to the UK, but the UK could not, so there would be a mismatch.

Similarly, the EU could offer cabotage, but the Northern Irish or the UK could not. The question is: what would happen if we could not accede to the Interbus agreement or did not achieve cabotage? At this moment, we have something that might be seen as a carrot or as a stick. In the interests of our tourism industry and for other good economic and social reasons, EU operators can access the UK. However, UK Ministers have the power to amend EU operators’ access in future. I am sure we have no intention to do that, but I point out that we have reached agreement on operating in each other’s markets—and I am sure we will in future—because it is not in the interests of anybody for that not to continue.

The noble Lord, Lord Berkeley, asked whether a new operator could start a service. He is correct: a EU operator could but a UK operator could not. However, there is only one operator anyway: Translink. I am not aware that a second operator would want to come into the market, particularly in the timescale that we are talking about. If there is concern, we should be very interested to hear it; we have not heard it yet, so I leave it at that.

I thank the noble Lord, Lord Whitty. I apologise to him for not having read his report. However, it will be on my weekend reading list. It is a very important topic, and I thank him for bringing the report to my attention and for his contribution today about the broader issues that we face.

It is not in our interests that transportation services between Northern Ireland and the Republic of Ireland fail, and we as a Government will strive extremely hard to ensure that they continue. I hope that I have managed to address the points raised. If there are any remaining, I shall certainly write; otherwise, I beg to move.

[Baroness Randerson]

Before the Minister sits down, I wish to clarify the situation. The papers from the Printed Paper Office made clear that no impact assessment has been prepared. I express my concern about that and should be grateful if she would explain why that is the case.

[Baroness Vere of Norbiton]

With apologies to the noble Baroness, I forgot that question. She is indeed right: no impact assessment was published in this case because any impact was deemed to be de minimis, as is normally the custom.

Motion agreed.