Haulage Permits and Trailer Registration Bill [Lords]

David Jones Excerpts

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

[Mr David Jones (Clwyd West) (Con)]

It is a pleasure to follow the hon. Member for Bristol South (Karin Smyth).

This is a very welcome Bill and demonstrates that the Government are making prudent preparations for the United Kingdom’s withdrawal from the European Union. My right hon. Friend the Secretary of State and many other speakers this afternoon have rightly pointed out the importance of the UK’s road haulage sector and the contribution it makes to the country’s economy. It is, by any standards, an important British industry: it employs about 300,000 people, and in 2015 some 76% of all goods moved in this country were moved by road. It is therefore entirely understandable that the road freight industry is keen to see an agreement between the United Kingdom and the European Union on the future of road haulage.

My right hon. Friend the Secretary of State has said that road haulage is one of his Department’s top two priorities. He also rightly pointed out in response to an intervention from the hon. Member for Nottingham East (Mr Leslie) that about 80% of the lorries operating between the UK and the continent are owned by EU-based businesses. It is therefore clear that achieving an agreement is, or at least should be, a matter of similar priority to the European Union as it is to us. Indeed, I am heartened by the fact that the EU’s negotiating guidelines, adopted on 23 March, set out the aim of continued transport connectivity between the UK and the European Union. I am pleased to hear from my right hon. Friend this afternoon that the negotiations are going well, and I have no doubt that it will be to the mutual benefit of the United Kingdom and the European Union, and their respective transport industries, to achieve an agreement that provides for frictionless road transport after Brexit.

However, that being said, the Government are entirely right to prepare contingency measures for the event of there being no deal, and that course of action has attracted the approval of the road haulage industry itself. As part of the process of preparation, Parliament recently ratified the 1968 Vienna convention on road traffic. The UK was already a signatory to the 1949 Geneva convention; however, five EU member states, including Germany, are party to the Vienna convention but not to the Geneva convention. Ratifying the 1968 convention, therefore, will, in the Government’s words,

“address the lack of a mutual legal basis for road traffic”

with those countries. In other words, it will provide for some degree of continued traffic with the EU in the event of there being no deal. As the Government have also observed, ratifying the Vienna convention will enable the United Kingdom to help shape the evolution and future direction of the convention, which is particularly important in respect of automated vehicle technology.

The Road Haulage Association has indicated that ideally it would wish the UK and the EU to use the current Community licence system and all EU rules for road haulage once Brexit has taken place. That may be the most desirable outcome, depending of course on whether the issue of the jurisdiction of the European Court of Justice can be resolved. The Department for Transport is no doubt considering a number of other proposals that would result in a similar degree of flexibility without ECJ jurisdiction.

One of the proposals suggested by the RHA is that the United Kingdom and the European Union should set up a new authorising system for international road haulage. That may also be a desirable outcome, but in addition there is always the possibility of the UK and individual EU member states setting up a new permit-based system for international road haulage—in other words, a system of bilateral permits.

The Bill of necessity employs a broad brush: it has to take into account all possible contingencies from the negotiations, from complete agreement to no deal. It is therefore necessarily widely framed, and is no worse for that. Part 1 enables the Secretary of State to put in place arrangements to enable a road haulage permit scheme, should it be required. Clause 1 provides for regulations to oblige road hauliers to carry a permit where international agreement requires it. The expression “relevant international agreement” is defined in the clause as an agreement

“to which the United Kingdom is a party and…which relates to the transport of goods by road to, in or through the country”.

However, in the case of Ireland, an international agreement is expressed as one to which the UK is a party and

“which relates to the transport of goods by road to, in or through Ireland”

and

“which the Secretary of State has certified as an agreement to which the Government of Ireland has consented”.

That is for a very good reason. There has been a long history of co-operation between the United Kingdom and the Republic of Ireland with regard to transport on the island of Ireland, and I suggest that continued bilateral arrangements are most desirable. In fact, they are equally important for the Irish Republic. The A55 north Wales expressway passes through my constituency, and hundreds of Irish lorries pass along it every day. It is important that the Republic of Ireland’s free access to the roads of the United Kingdom should be maintained. I would be pleased to hear from my hon. Friend the Minister what discussions have taken place with the Government of the Republic and whether he anticipates agreement on new bilateral arrangements after Brexit.

Clause 2 allows the Secretary of State to issue permits to applicants and provides for regulations that would detail how hauliers should apply for permits and the basis on which the Secretary of State would decide whether to grant a permit. I understand that those regulations will be the subject of a consultation by the Department, which is sensible and welcome. The clause also provides for criteria to be used in allocating permits, should they be required as part of an agreement with the EU. Subsection (l)(c) indicates that regulations may make provision

“as to how the Secretary of State is to decide whether to grant an application for a permit, including provision specifying criteria or other methods of selection (which may include first come, first served or an element of random selection).”

Concern was expressed in the other place as to the somewhat haphazard nature of the selection provided for in the clause, and the reasonable point was made that it would be difficult for any haulier to make serious business plans on such a basis. Will the Minister give a further indication as to how such a method of selection would operate? No doubt it will be set out in the regulations in due course, but it would be good to know the Government’s current thinking.

Part 2 of the Bill provides for a system of trailer registration. That has been included in the Bill to enable the Government to comply with their obligations under the Vienna convention, which has now been ratified. The Minister, Baroness Sugg, indicated in the other place that it was the Government’s intention to require only operators that take trailers abroad to register their trailers. It would be good if the Minister could reiterate that commitment and further confirm that the scheme would apply only to commercial trailers over 750 kg and all trailers over 3.5 tonnes. It would also be good if he could confirm that the scheme will not apply domestically.

There remains a lot to be fleshed out, but it is understandable that the Bill should be couched in broad terms at the moment. The House will look forward to further details in due course, but this is a sensible, prudent Bill aimed at facilitating whatever agreement may be arrived at with the European Union while at the same time safeguarding the British position against there being no deal. I am therefore pleased to support it.

--- Later in debate ---

[Sammy Wilson]

The proof of the pudding will be in the eating. When the Government stuck their heels in with the EU in December 2017, the agreement was changed and the protocols were not insisted on in March 2018. The Prime Minister stuck her heels in when the Irish Government said June was a deadline. The UK Government made it clear that it might not be done by June, and we have now moved to October 2018. When the Government make it clear that they intend to be in the driving seat on these negotiations, I have every confidence that we can get a good outcome for the United Kingdom.

Of course, there is every reason for us to be confident. Road transport is important to every European nation that trades with us, and it is particularly important to Northern Ireland—over 90% of our trade is via road transport. Road transport is not only important to us. If we look at who actually transports the goods we export to other parts of the EU, we see that 85% of the goods that go from the UK to other EU countries are carried in vehicles owned by EU-based companies. That being the case, there is every incentive for nations with lorries, lorry drivers and transport companies to come to an arrangement with our Government to ensure that free movement can happen. Equally, many of those goods are perishable, and it is therefore important that there is as little disruption to road transport as possible, hence why I believe it will be possible to get the kind of deal the Government seek. Nevertheless, it is important that we have this fall-back position.

The second issue is Northern Ireland. Although I heard the Minister’s explanation, I am still not clear on why we need a separate provision in the Bill for agreements on transporting goods to, and on lorries driving through, the Irish Republic and why the international agreements referred to in clause 1 are not sufficient to cover the Irish Republic. I do not share the optimism of the right hon. Member for Clwyd West (Mr Jones) that the Irish Government are willing, because of our long-standing arrangements on transport issues, to ensure that a bilateral arrangement can be put in place.

The Irish Government have almost cut off their nose to spite their face on the issue of the border between the Republic of Ireland and Northern Ireland. They know their own head of Revenue Commissioners has made it clear that there are technological solutions that could ensure there is no hard border so that trade flows easily across the border. The previous Administration in Ireland even started down the route of considering the kind of technology that could be used but, since coming in, the current Irish Government have cut off all the negotiations on those solutions. Only this weekend, they insisted that they will have no cameras, drones or any kind of technology that could make the border a soft border when we leave.

[Mr David Jones]

Can the right hon. Gentleman say, from his experience of the island of Ireland, whether the Irish Government fully understand the importance to the Irish economy of maintaining free access to the United Kingdom for trade not only with this country but beyond?

[Sammy Wilson]

It seems that the current Irish Government do not understand. Six times more of their trade is with Great Britain than with Northern Ireland, and more of their trade is with Great Britain than with the whole of the rest of the EU, yet they seem to be willing to pursue a solution that will mean a border and barriers between the Irish Republic and its main market in order to have an open border with Northern Ireland. When it is suggested to the Irish Government that they can have both an open border with Northern Ireland and access to the GB market, they simply put their hands over their ears and say, “We don’t want to hear. Nah, nah, nah, nah.”

I am not as convinced as the right hon. Member for Clwyd West that it will be easy to get a transport arrangement with the Government of the Irish Republic, and I would appreciate further explanation from the Minister as to why the international arrangements covering other EU countries cannot simply apply to the Irish Republic. If lorries from Northern Ireland go through the Irish Republic, they are going through another country, so why would the international arrangements and agreements not apply? Why do we need a specific bilateral arrangement with the Irish Government who, unfortunately, at present seem to be in a temper tantrum and are not willing to listen to too much logic, even if not doing so damages their own economy?