Haulage Permits and Trailer Registration Bill [Lords]

Chris Leslie Excerpts

2nd reading: House of Commons & Money resolution: House of Commons & Programme motion: House of Commons
Monday 14th May 2018 Commons Chamber

[The Secretary of State for Transport (Chris Grayling)]

I beg to move, That the Bill be now read a Second time.

The United Kingdom’s road haulage sector plays a major role in keeping our economy on the move. Each year, UK-registered heavy goods vehicles carry around £30 billion in goods between the UK and the EU, and around 300,000 people are directly employed within the industry. I saw a snapshot of the UK logistics sector’s importance this morning when I visited and opened the new United Parcel Service sorting and delivery centre at the DP World London Gateway logistics site. It is a strong and positive new investment in the sector that is helping British businesses to become more efficient and is, crucially, a vote of confidence in our future as a trading nation. The Bill is important because it is about our future as a trading nation.

The Bill provides a framework that should reassure hauliers that the final Brexit deal agreed with the European Union will be able to be implemented smoothly and will support the continued movement of goods by truck between the UK and Europe. We are committed to maintaining the existing liberalised access for commercial haulage. It is in everyone’s interest that there should be a mutually beneficial road freight agreement with the EU that secures our objective of frictionless trade and is in the interest of both parties.

The Government are moving ahead with the negotiations with the EU, and I expect us to move towards a proper agreement later this year—I am very confident about that. However, it would be irresponsible of this Government not to plan for all eventualities. I stress again that it is in everyone’s interest to secure liberalised access, which is by far the most probable result of the negotiations, but this Bill is prudent planning for the future. It forms part of the Government’s broader EU exit legislation programme and, as set out in the other place, the haulage permits aspect of the Bill provides a framework for the UK to manage permits in all eventualities, including if they are needed as part of our agreement with the EU.

[Mr Chris Leslie (Nottingham East) (Lab/Co-op)]

The Secretary of State might be putting a gloss on what is potentially a catastrophic situation. I give him the opportunity, from the Dispatch Box, to give a categorical guarantee that, after exit day, the licences of 318,000 HGV drivers will still be valid to deliver goods across the European Union. Is that right?

[Chris Grayling]

I cannot give the hon. Gentleman final details of the negotiations at this stage, but let me tell him some straightforward facts: 80% of the trucks that come through the channel ports and the channel tunnel are carrying EU exports to the United Kingdom, so it is pretty evident that it is in everyone’s interest that we reach a sensible agreement for the future. This Bill ensures that we have the legal mechanisms in place to deliver the registration framework that is needed for all eventualities, which is prudent and sensible.

The hon. Gentleman asked me a straightforward question, and I say to him straightforwardly that 80% of those trucks are EU hauliers bringing goods to the UK. I struggle to imagine other EU countries not wanting that to continue.

[Mr Leslie]

I am sorry to interrupt the Secretary of State, but this is quite important. He acknowledges that I asked a straight question about the guarantee. Is it not the case that, even in that worst-case situation, some sort of bilateral agreement with other EU countries would be required and there is no guarantee that such an agreement will come forward? Is that not the truth?

[Chris Grayling]

I cannot guarantee that EU countries and their businesses will want to continue selling goods to UK consumers, but my best guess is that French farmers will still want to sell their produce through our supermarkets and that German car makers will still want to sell their cars in our car showrooms. No, I cannot guarantee that it will rain or be sunny tomorrow, nor can I guarantee that EU countries will want to continue selling their products to us, but do you know what, I think they probably will.

--- Later in debate ---

[Andy McDonald]

I am grateful to the right hon. Gentleman for his intervention, but I just do not share his sense of confidence that the provisions of the Bill are anything like adequate in the event of a no deal. These measures will not respond to the needs of the country should that contingency arise.

The Bill must be regarded as the first piece of legislation that provides for a no-deal Brexit. It sets out new powers for the Government to allocate permits to hauliers if required by future agreement or lack thereof, so that UK lorries can continue to operate to and within the European Union. A newspaper headline this weekend—in The Sunday Times, no less—was correct to say that

“this government is failing business at every turn”.

Today’s debate is a further foretaste of the damage that this Government’s prevaricating is doing to the British economy.

[Mr Leslie]

My hon. Friend will have noticed that the Secretary of State—in all his finger-crossing hopes for something to crop up before Brexit day—did not actually update the House on the progress that he might be making towards a comprehensive land transport agreement, which is what the Freight Transport Association is asking for. The Secretary of State did not confirm whether he is personally in discussions with the Irish Government, other Governments or the European Commission. Is it not lamentable that he could not even give this vital industry some level of update on the progress of negotiations towards those agreements?

[Andy McDonald]

My hon. Friend has got it absolutely right. It is indeed lamentable that there has been a complete absence of those discussions. It is a question of hit and hope, finger in the air and everything will be alright on the night. This is not the right way to go about it. The Secretary of State has come to the Dispatch Box and said that he does not speak for the other 27 Governments. I sometimes wonder whether he speaks for the one of which he is a member. A damaged and disrupted logistics sector will result in a damaged and disrupted British economy.