Haulage Permits and Trailer Registration Bill [Lords]

Jesse Norman Excerpts

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

[The Parliamentary Under-Secretary of State for Transport (Jesse Norman)]

It is a great pleasure to close the Second Reading debate on this Bill. We have had an extremely engaging and positive debate in many ways. Cardinal Newman has been invoked, very surprisingly, by my right hon. Friend the Member for South Holland and The Deepings (Mr Hayes). There has been catharsis. We have had a Scottish National party Member praising the Lords—Allelujah!—and quoting Donald Rumsfeld, which is always an interesting combination.

I have been surprised not to see, during the entire course of the debate, a single Liberal Democrat Member in the Chamber. I was surprised because, as I had understood it, they felt very passionately about the issue of Brexit, and of course this is the first Brexit implementation Bill. At the very least I would have expected speeches and interventions, but in fact not one Liberal Democrat Member has bothered to show their face in the Chamber.

As today’s debate has made clear, the Bill is needed to support the continued movement of goods between the UK and Europe. The Secretary of State outlined well in his opening speech that we are committed to maintaining the existing liberalised access for commercial haulage. A mutually beneficial road freight agreement with the EU that secures our objective of frictionless trade is in the interest of both parties. When 85% of trade is carried across the UK border by EU hauliers, we can be certain that EU countries—Germany, France, the Netherlands, Belgium, Poland and the like—have a tremendous interest in the maintenance of frictionless trade. It has also been noted that international conventions support it and the EU’s own negotiating objectives demand it.

Today’s debate has focused on the two parts of the Bill. The first part deals with haulage permits and provides a framework for the UK to manage them, including if they are needed as part of our agreement with the EU. We will also be using the powers in part 1 to bring our existing international agreements into a comprehensive legal framework—a point that the Opposition somehow ignored or missed.

On trailers, the debate focused on the scope of the trailer registration scheme that will be established in regulations under the Bill. The Government need to establish a trailer registration scheme in order to support the UK’s ratification of the 1968 Vienna convention on road traffic. It will ensure that trailer users can register trailers to meet the standards in the convention. We intend to require the registration of commercial trailers over 750 kg and non-commercial trailers over 3.5 tonnes that travel to or through countries that have ratified the convention—it is important to say that. I can give the assurances that my right hon. Friend the Member for Clwyd West (Mr Jones) asked for earlier.

Many other countries have similar schemes, and both of those schemes will utilise the expertise of our agencies—the Driver and Vehicle Standards Agency and the Driver and Vehicle Licensing Agency—to deliver the systems needed. We plan to have the systems up and running by the end of the year, and see no reason why that should not be the case. It is true that we will be charging fees, but they will be on a cost-recovery basis to minimise the impact on hauliers. We are well aware of the tight margins in the industry, and we will do all we can to reduce the cost of any scheme. The fees will only recover the day-to-day running costs of administering the systems and will not be intended to generate revenue. The Government will cover the set-up costs of the systems as part of a £75.8 million funding grant from the Treasury to the Department for Transport. I am delighted that the hon. Member for York Central (Rachael Maskell) recognises the distinction between “Government money”, which does not exist, and taxpayers’ money, which is of course the only money that the Government can draw on.

[Michelle Donelan (Chippenham) (Con)]

Will the Minister reassure the Central Registration and Identification Scheme, otherwise known as CRiS—a key local employer in Chippenham—that the Bill will not alter the voluntary registration of UK caravans?

[Jesse Norman]

I recognise the quality of that scheme, and I have spoken personally to the National Caravan Council to discuss it. My hon. Friend will be aware that the vast majority of caravans will not be within the scope of the new scheme as we are currently defining it. Indeed, the DVLA scheme will not concern security, which is the principal purpose of the CRiS regime. We have no intention to replace CRiS, so I do not see that it needs to have any concerns or fears on that account.

I can confirm that the Bill will not have an impact on border arrangements and that there will be no new transport-related checks at our borders. That is perfectly plain. Separately, my Department is working closely with the Department for Exiting the European Union and with Her Majesty’s Revenue and Customs as part of the cross-Government borders working group to manage any impacts there may be on borders after we leave the EU.

Stakeholders have welcomed the Bill and recognised the need for it. As has been noted, the Freight Transport Association and the Road Haulage Association have given it their support. The Road Haulage Association has said that it “wholeheartedly supports” it and that it is “the right thing” for the Government to be preparing measures for all scenarios. The Freight Transport Association has welcomed the Government’s objective in ensuring that no limits are set on the number of goods vehicles going between the EU and the UK. The Bill provides a framework that should reassure hauliers that the final Brexit deal agreed with the European Union will be smoothly implemented.

With that in mind, let me move swiftly on to some of the many excellent points raised during the debate. As ever, the informed questions, challenges and arguments that we heard are welcome in helping us to strengthen the Bill, and I greatly appreciate the broad support shown for the ambition and energy behind it.

The hon. Member for Middlesbrough (Andy McDonald) asked whether the Bill would deter investment. I simply draw his attention to the fact that, as the Secretary of State said, Vauxhall, Toyota and UPS have recently made investments in the haulage and car industries, while Apple, Facebook and many other international businesses continue to invest in this country. He mentioned concerns, also raised by my hon. Friend the Member for Waveney (Peter Aldous), about the impact on the music industry. We will look specifically at that issue in more detail, and I am sure I can provide some reassurance on that front. I have mentioned the support that we have already received from the RHA and FTA.

I am grateful to my right hon. Friend the Member for Scarborough and Whitby (Mr Goodwill) for sharing his expertise and for the wisdom he brought to his speech. He made a good point about the importance of the Bill in providing protection against over-zealous enforcement—a point that others did not pick up on—and the extent to which it therefore gives reassurance to people who may already be vulnerable. He asked whether plates could be fitted that could be read by ANPR. That will be part of our wider considerations. We will also consult on the display of plates in order to address the other matter that he raised. That will require tweaking or elaboration within new IT systems, but that is well within the scope and capability of the DVSA and the DVLA.

My right hon. Friend the Member for South Holland and The Deepings made a worryingly restrained speech in which he chastised himself for his excessive humility in recognising his own perspicacity and imagination. I am delighted that he was able to correct that on the record in the House, and I thank him for his unwonted brevity in doing so. He made an important point about the recruitment and retention of new drivers and apprentices within the industry. I am sure that he shares my view that the Road to Logistics initiative offered by the RHA potentially offers an important and interesting route forward for the Government in future.

The most important speech of the evening, if I may say so, was made by the hon. Member for Bristol South (Karin Smyth). I absolutely salute her work on trailer safety. She has built a reputation across the House for the careful, intelligent and dedicated way in which she has pursued the issue. It was an honour for me to be able to visit her constituency and spend time at the trailer safety summit that she recently organised, and also, of course, to meet Donna and Scott Hussey, the parents of Freddie Hussey, to talk about the experience they have had and measures that we can take to address the issue. We have agreed to report on it within a year of the regulations coming into effect.

As the hon. Lady will know, we have also agreed to consider a recommendation on whether to extend registration. I think it is fair to say that, as she pointed out, the Government currently have quite extensive data through agencies. It is not necessarily, in some cases, the right data to solve the issues that she described, but it is good data. It is also fair to note that, as other colleagues have mentioned, some trailers are used very infrequently, and that extending the scope of the scheme to mandatory registration would potentially include well over 1 million more trailers. We have therefore so far taken the view that given the administrative burdens and other issues that would be involved, a proportionate approach needs to be taken. However, I do not in any sense rule out the proposal that she makes. It is important for us to proceed slowly and carefully and to understand the issues in more detail as we do so.

[Karin Smyth]

I thank the Minister for his comments. I know that he knows that I will pursue the trailer safety regime with great vigour. I hope that many hon. Members will support me in that work in the coming months and years.

[Jesse Norman]

I am grateful to the hon. Lady for that reassurance, but I do not think it was required by anyone in the House who has seen her at work.

The right hon. Member for East Antrim (Sammy Wilson) made an important speech in support of the Bill. He asked why we think the agreement will be doable. The answer is simple: because the interests of both parties are well aligned. I cannot comment on the views that will be held in the Irish Republic. This Bill addresses UK hauliers. I can say, however, that the Bill will not result in any impediment to trade between the two sides. We see no reason for concern on that front.

My hon. Friend the Member for Brentwood and Ongar (Alex Burghart) mentioned the 1968 Vienna convention. We are now a signatory to that. However, like many other contracting parties, we do not take the view that the testing and use of autonomous vehicles is in conflict with either the ’68 convention or the ’49 convention. Nevertheless, it is an important question and I thank him for raising it.

We have heard contributions relating to Operation Stack, on which we will be publishing a response shortly.

[Alan Brown]

Going back to the Northern Ireland border issue, surely it is incumbent on the UK Government to seek the views of the Irish Government to see how this is going to work instead of continually saying, “We can’t speak for the Irish Government—we don’t know what they’re thinking.” It is incumbent on them to find that out.

[Jesse Norman]

My officials are of course in regular contact with officials in Ireland and discuss these issues at length, so it would be quite wrong to suggest that there is no interaction between the two parties.

Let me conclude by mentioning the comments of the shadow Ministers. I have to say that the Labour position is very strange. Their strategy seems to be to cloud the issue and scare people as much as possible, and then criticise the Government in calling for clarity. They complain that everything is up in the air but then criticise a Bill whose specific purpose is to act as a sensible, belt-and-braces, common-sense backstop.

We do not think that this Bill is anything other than a thoroughly sensible move. It will ensure that the road haulage industry can continue to prosper as we leave the European Union. As part of our EU legislation programme, the Bill prepares us for a range of scenarios. It will ensure that the UK can fulfil its international obligations and be ready for what happens when we leave the EU.

Question put and agreed to.

Bill accordingly read a Second time.

Haulage Permits and Trailer Registration Bill [Lords] (Programme)

Motion made, and Question put forthwith (Standing Order No. 83A(7)),

That the following provisions shall apply to the Haulage Permits and Trailer Registration Bill [Lords]:

Committal

(1) The Bill shall be committed to a Public Bill Committee.

Proceedings in Public Bill Committee

(2) Proceedings in the Public Bill Committee shall (so far as not previously concluded) be brought to a conclusion on Tuesday 5 June.

(3) The Public Bill Committee shall have leave to sit twice on the first day on which it meets.

Proceedings on Consideration and up to and including Third Reading

(4) Proceedings on Consideration and any proceedings in legislative grand committee shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which proceedings on Consideration are commenced.

(5) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.

(6) Standing Order No. 83B (Programming committees) shall not apply to proceedings on Consideration and up to and including Third Reading.

Other proceedings

(7) Any other proceedings on the Bill may be programmed.—(Rebecca Harris.)

Question agreed to.

Haulage Permits and Trailer Registration Bill [Lords] (Money)

Queen’s recommendation signified.

Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),

That, for the purposes of any Act resulting from the Haulage Permits and Trailer Registration Bill [Lords], it is expedient to authorise the payment out of money provided by Parliament of—

(1) any expenditure incurred under or by virtue of the Act by the Secretary of State;

(2) any increase attributable to the Act in the sums payable under any other Act out of money so provided.—(Rebecca Harris.)

Question agreed to.

Haulage Permits and Trailer Registration Bill [ Lords ] (First sitting)

Jesse Norman Excerpts

Committee Debate: 1st sitting: House of Commons
Tuesday 22nd May 2018 Public Bill Committees

[Alex Norris (Nottingham North) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship for the first time, Mr Davies. I rise to speak briefly in favour of the new clause.

The Government are on a high wire here. The process of negotiating ongoing community licence membership on its own would be a difficult piece of work. Similarly, designing our own system on its own would be a difficult piece of work. To do those things at the same time is exceptionally difficult, so what we are considering today is very important. We saw on Second Reading, and I expect we will see over the forthcoming days, a great deal of consensus, support and understanding about the difficulty of the task. Relatively recently, I was involved in a similar Bill Committee about nuclear safeguards; that was very much the spirit in which we had those conversations.

This is enabling legislation—my hon. Friend the Member for York Central characterised it as a framework Bill. That is right and proper given the circumstances. We know that the Government need to have that latitude, given the fluid nature of the negotiations, and whatever arrangements may need to be filled in over time. However, we, as the legislature, need to secure some support and some structure to ensure that we insulate from Executive overreach. We understand that the Government need flexibility but, over time, as things develop, and as the Government know more and conversations start to have more detail, we ought to know a little more about what the nature of the scheme is likely to be, about the regulations on permits, and about what developments occur. I do not think that that is much to ask. The irony is that I dare say the vast majority of us on the Committee do not want the legislation to pass; that is a strange situation. It is important for us to have confidence in the process, so I hope that the new clause might be accepted.

[The Parliamentary Under-Secretary of State for Transport (Jesse Norman)]

It is an honour to serve under your chairmanship, Mr Davies. I am delighted to rise to speak on the amendment and the new clause. I will start by making a few outline comments about the nature of the Bill, and then I will come to the points that have been raised, including the point made by the hon. Member for Rotherham.

Let me start by explaining clause 1 in slightly more detail. The clause does not make it an automatic requirement to carry a permit. Regulations made using the clause will only require permits where our international agreements mandate it, and they will exempt specific types of journey as covered in international agreements. Regulations made under this part of the Bill will set up a framework, as has been acknowledged by Opposition Members, for a permit scheme that will then apply to any permanent agreements we reach with the EU, as well as to our existing and future agreements with non-EU countries and the European Conference of Ministers of Transport permit scheme. The effect of that is that regulations will be made under clauses 1 to 3 irrespective of what arrangements we make with the EU; the difference will be in the scope of those regulations.

We stated during proceedings on the Bill in the other place that we intend to have a permit system in place and up and running by the end of the year. That will deliver our existing permit arrangements and give businesses the certainty that we can deliver on whatever arrangements are put in place for haulage after we have left the EU. Any delay in putting that system in place will cause more uncertainty and therefore additional cost to the industry.

We will introduce regulations shortly after Royal Assent so that the system can be up and running. A requirement to lay a report and wait a further six months before laying regulations before the House would prevent us from putting in place our planned systems to support hauliers in preparing for Brexit. Hon. Members will be aware that the consultation on the Bill was launched just last week, on 16 May. That consultation is part of the UK’s preparation for its future relationship with the EU.

Our overall aim in negotiations is to maintain and develop the existing liberalised access for commercial haulage. The hon. Member for York Central asked whether it was my ambition to stay in the licensing scheme, to which the response is that our ambition is to maintain and develop the existing liberalised access for commercial haulage, as we have said.

The future deal with the EU could, however, require a form of permitting system. The Bill will allow the Government to deliver an administrative system as part of the final deal. We are consulting on how permits will be allocated and what information the hauliers will be able to provide. We want to the system to be as practical and user-friendly for hauliers as possible and we will use the consultation responses to make sure that it is.

Should there be a limit on the number of permits available for haulage travel to EU member states, we want to make sure that the permit system does not adversely affect small operators, and we are confident that our proposed system will not do so. We hope that large and small operators will respond to the consultation so that we have a good understanding of the effect of the permit scheme on different sizes of business.

[Alan Brown]

The Minister stated that he aims to move quite quickly to introduce the regulations that form the secondary part of the Bill. Can he outline how quickly these regulations will be brought forward and how they will compare with the consultation that is ongoing at the moment? We still have the negotiations to come, so it is not clear how quickly regulations can be introduced and what they will look like, because they really will have to cover myriad options.

[Jesse Norman]

As I have said, the purpose of the Bill is to put in place a framework of permits, which will continue irrespective of any specific outcome with the EU. We aim to put it in place by the end of the year. We are moving with a certain amount of speed, but in no sense hastily. We have already had widespread consultation with the industry and other stakeholders. There has been quite a high degree of cross-party support, and I was pleased that the Labour Party and the SNP did not oppose the Bill on Second Reading. We have been happy to take late-tabled Opposition amendments to respect the desire to get everything in place.

That goes to the point raised by the hon. Member for Rotherham: there is no sense of undue haste, but we seek to put the framework in place. That means that regulations will need to be laid later this year, following the consultation that is in progress. This is a careful process of putting in place regulations that we will be able to use for the longer term.

The consultation includes draft regulations so that respondents can see what we propose. In addition, we have provided policy scoping documents that outline how we intend to operate a permit scheme, and they are available in the House Library. Those documents and the response to the consultation will set out the details of what the regulations laid before the House will achieve, and what their impact will be. A further report on what future regulations will cover would provide no further benefit to Members.

I am sure that the hon. Member for Kilmarnock and Loudoun will welcome the fact that in the other place, the Government added clause 9 to the Bill to honour an undertaking given by my noble colleague, Baroness Sugg. The clause will provide Parliament with a report for any relevant year on the impacts of a limited permit arrangement with the EU, should that be the outcome.

[Sarah Champion]

I am grateful to the Minister for giving way and for the spirit in which he is approaching the Bill. I am grateful for the new clauses that have been introduced—he is clearly listening. However, I find it odd that we are doing all this before the consultation is closed. If the responses to the consultation show that there is real opposition to some of the things that we are now putting in the Bill, what provisions has he made to deal with that? What opportunity do we have to get the best regulations and legislation?

--- Later in debate ---

[Jesse Norman]

This is a framework Bill, and the consultation is on detailed aspects of the regulations—in particular, the criteria for granting permits. The consultation will inform the structuring and shaping of the regulations as they are introduced. We do not anticipate that any aspect of the consultation will remove the desire, which is widely shared across the industry, for more clarity and certainty and for a unified framework, which is what the Bill is intended to generate.

The first set of regulations under part 1 of the Bill will set up a framework for a permit scheme. Parliament will be able to debate that, following the amendment we made to clause 23 in the other place. The Government recognise that we are still developing a policy, and it is only right that those regulations should be the subject of debate in both Houses.

I turn to the point made by the hon. Member for Kilmarnock and Loudoun. It would be neither practical nor desirable to ensure that no regulations were made until six months from the date on which such a report was laid before Parliament. I note the comment from the hon. Member for York Central that the Bill should be put on to the statute book in the shortest possible time. She is right about that; it should be done without haste, with cross-party agreement and in a measured way. Therefore, we should not be delayed by a further six months, which would be the implication of that change.

[Mr Robert Goodwill (Scarborough and Whitby) (Con)]

Does the Minister agree that the new clause fails to recognise the very nature of negotiations? There is often a logjam, and then agreement comes about at some point. A report produced within that timescale may not be of much use to people who want to follow the commentary about what is going on.

[Jesse Norman]

My right hon. Friend is absolutely right. Of course, this legislation is designed to survive, as it were, whatever the outcome, which may be one of many different kinds. We confidently expect a liberalised access arrangement, as he knows, but it is wise to be prepared. For that reason, this is a belt-and-braces piece of legislation, but we cannot delay it further if we want to get it on to the statute book. Both parties recognise the importance of doing so.

If we secured a liberal agreement between the UK and the EU as part of a future relationship, as we expect to do, we would not be able to put the regulations in place until we had reported on the impacts, which would be minimal in this case. We would then have to wait a further six months until we could make the regulations, subject to parliamentary timescales. As a consequence of this requirement, a huge cost would be imposed on hauliers and they would not be able to take account of a deal that gave them the required access. I cannot believe that the hon. Member for Kilmarnock and Loudoun intends to impose those costs on UK hauliers, including on Scottish hauliers.

Delaying the making of the regulations would delay the implementation of the agreements, and that would have a huge detrimental impact on hauliers and on our freight trade. Any delay in implementing agreements might mean that hauliers could not access and use the correct permit for their journey, which would affect their ability to take on contracts. The Bill and subsequent powers will also cover our existing non-EU-based agreements, and the amendment would encompass those agreements. If we were to strike new agreements with non-EU countries, the amendment would require us to report on them and postpone the issuing of any of those permits for six months after the report.

I hope that explanation provides the hon. Gentleman with clarity about how we propose to ensure that the regulations made under the Bill are subject to appropriate scrutiny. We will report on the effects on the UK haulage industry of any EU-related permit scheme, should there be one, where there is a limit on the number of permits available for hauliers travelling to EU member states. In that spirit, I hope he feels that he can withdraw the amendment.

New clause 3 would require the Secretary of State to report every six months, beginning three months after the Bill comes into force, on progress in negotiations to secure international agreements on the transport of goods by road to, in or through other countries. The requirement is extremely broad; it covers any relevant agreement with any other country or organisation, at any stage in the negotiations. It would catch the smallest technical amendment to an existing agreement, and it could introduce a requirement to report on negotiations when they are at a particularly delicate point and when we are unable to report the substance of our negotiating position—along the lines hinted at by my right hon. Friend the Member for Scarborough and Whitby.

The danger is that reports made under the new clause could be a mixture of the bland and the trivial. The approach of regularly setting out in public the detail of our negotiating lines, tactics and prospects of success appears to be an almost certain way to undermine our negotiation and the prospect of securing a good deal for road transport users—something that we very much believe is in prospect.

I hope that I have been clear about the Government’s objective throughout. We want and actively expect to maintain the existing liberalised access for UK hauliers. A mutually beneficial road freight agreement with the EU will support the objective of frictionless trade. We are confident that our future relationship with the EU on road freight, as part of a wider continuing relationship on trade, will be in both sides’ mutual interest. While we are negotiating with the EU, however, it is not helpful to provide Parliament with speculation about the prospects for success in the negotiations.

The reporting requirement is also perverse in its effects. It would cover any agreement that includes permits—that is the effect of tying the definition of “relevant international agreements” to that in clause 1(4)—but not liberal agreements that do not involve permits, such as our current agreements with Albania and Turkey. Reports under the proposed new clause would not provide Parliament with a useful overall picture of the state of the Government’s work to help the UK haulage industry operate internationally.

The Government have been clear throughout proceedings on the Bill that it is not intended in any way to pre-empt the nature of the agreement between the UK and the EU and the future relationship, and it is not a suitable vehicle for such amendments. When the Bill was in the other place, noble Lords tabled amendments that would have required the Government to report on how the permits regime would affect the efficiency of haulage and their expectations for future arrangements between the EU and the UK. In response to those amendments the Government introduced clause 9, which focuses on the scheme’s actual impact on the haulage industry. By contrast, new clause 3 would require reports on the progress of negotiations on prospective agreements.

The hon. Member for Kilmarnock and Loudoun noted on Second Reading:

“when I try to get amendments through in Committee that require the Government to report on future implementation, they always vote them down”.—[Official Report, 14 May 2018; Vol. 641, c. 70.]

I am sorry to disappoint him today, but I do not believe that his amendment will provide Parliament with useful information. For that reason, I hope he will withdraw it.

[Alan Brown]

I have listened to the Minster’s arguments on amendment 12, which he thinks would be burdensome. I understand some of the logic. Equally, I still think there is merit in getting the Government to report on what the regulations would look like and their impact. However, I have listened to the Minister and I am happy to withdraw the amendment, although I am still concerned about how the regulations will align with the end agreement, and how Parliament understands that. New clause 3 reflects the importance of parliamentarians and industry understanding how the negotiations are going. The Minister said that the report would pick up bland things and small technical issues, but there is nothing wrong with reporting small technical issues. That would result in a very small report that would not need too much debate or scrutiny in Parliament.

We heard the classic excuse that the negotiations might be sensitive. If they are too sensitive, that can be reported, but it would still be good for Parliament to be kept updated on the negotiations. Given that the Government are willing to incorporate clause 9—on the future impact of the regulations—it seems logical that there is merit in reporting on how negotiations are going, because that will have the biggest impact on what the permit system looks like and the outcome for the road haulage network.

Having said that, I will not press the amendment to a vote. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Question proposed, That the clause stand part of the Bill.

--- Later in debate ---

Finally, as we seek to gain certainty for the haulage industry and those it serves through the Bill, may I ask the Minister what will occur if the EU demands or agrees a fundamentally different process? I believe new clause 3 would have aided us in our understanding, enabling us to see over that horizon. Could this lead to further primary legislation being needed at some future date if the EU comes up with a different set of demands for the way the system works? These are fundamental and vital questions over how the Bill will operate and they will inform the rest of today’s debate. There is confusion across the country and, no doubt, across the EU and we all need to understand this as a matter of urgency. I therefore look forward to hearing the Minister’s response.

[Jesse Norman]

I am grateful to the hon. Lady for her comments. She raises several issues, which I am happy to address. The first relates to the different scenarios that hauliers would be operating under and the second to the nature of documentation and, potentially, electronic documentation or its equivalent. There is some lack of clarity that it is important to dispel here—I am not sure whether it exists in the industry. Let us be clear: this is a Bill that applies to UK hauliers. A foreign haulier with a vehicle coming into the UK will be bound by other legislation linked to foreign hauliers, but they will not be affected by the Bill. The effect of that is that in the first scenario the hon. Lady describes, a UK haulier with a load that starts in Spain and goes into the Republic of Ireland and then into Northern Ireland would require a permit if there were an agreement between the two sides—Ireland and the UK. However, there is no such agreement.

The clause provides an enabling power because current and future international agreements are all different and we need flexibility to require permits only when international agreements so require. It allows for different exceptions. In the case of the island of Ireland, permits would be required for journeys only if there were an agreement between the UK and Irish Governments to have them. It has already been made clear that no permit regime or hard border on the island of Ireland will be created by this Bill. The issue will, therefore, not arise. If they are coming into the UK under a permit scheme from a foreign haulier, that will not apply in the same way.

[Rachael Maskell]

Is the Minister saying that hauliers in the Republic of Ireland who will then be bringing their load to England, Scotland and Wales will need to carry a permit?

[Jesse Norman]

If there were a permit scheme in place between the UK and the Republic of Ireland, then a permit would need to be carried. If not, then it would not. There is no such permit scheme in place.

[Rachael Maskell]

I appreciate the Minister’s response, which clearly shows that there could be a creation of borders that are built. Would he therefore explain how permits will be inspected? That seems to be fundamental for haulage flow and traffic flow.

[Jesse Norman]

I am not quite sure why there is a lack of clarity. Borders are not the same thing as permits. At the moment we have frictionless trade with the EU, and we have mechanisms for inspecting lorries through the DVSA which are nowhere near the border, and have no impact at all on the flow of traffic or freight across borders. There should be no reason in principle why this should be different.

[Rachael Maskell]

I will ask again: will the Minister say how that inspection is different? This is about having a right to move haulage across the borders, and therefore it is about understanding how that inspection will take place. It is a different form of inspection to the one referred to by the Minister.

[Jesse Norman]

It really is not. The hon. Lady might not be clear, so let me say this again. At the moment there will be no transport checks at borders, and we have been perfectly clear about that. This does not change that at all; on the contrary. I could not be clearer. There are going to be no transport checks at borders. Under current arrangements, the community licence is a paper document that hauliers are required to carry in their vehicles and to show to inspectors on request. If we were to move to a paper copy permits arrangement as described, nothing would fundamentally change in that process. There are benefits to digital documents, and we do not disagree with that. The Bill allows scope for a shift to digital documentation in the future. Clause 1 states that the

“permit can be in any form the Secretary of State considers appropriate”

but the system put in place is a pragmatic solution that fully follows the current lines of the community licence regime, and should raise no further questions in people’s minds.

[Karin Smyth (Bristol South) (Lab)]

rose—

[Jesse Norman]

Obviously it has raised further questions.

[Karin Smyth]

Just to be clear in my mind about what is being said, is it that the current arrangements across the UK and Republic of Ireland remain intact under the assumption that the Republic of Ireland Government will make no changes, and that that is permissible under the agreement with the EU. That is the assumption on which the Government are resting. The issue becomes pertinent if, in the negotiations, the EU makes a different agreement with the Republic of Ireland for the transportation of goods across the island of Ireland. Is that correct?

[Jesse Norman]

We have no permit schemes in place because we have liberalised transport with the Republic of Ireland. If a permanent scheme were to be put in place as a result of further negotiations or discussions with the EU, we would expect it to be of a liberalised, frictionless kind. Were it not to be of a frictionless kind—and even if it were—there would then be a requirement for some form of permit in paper form carried within a truck with a load from a UK haulier doing business to and from the Republic of Ireland. This would not affect the border arrangements in any way, in the same way that the inspection of current and community documentation does not affect border arrangements at present.

[Alan Brown]

The Minister stated clearly that there would be no transport checks affecting how things are operating at the moment. If there are no transport checks, how will the UK Government get back control of the border in terms of people and goods, which is supposedly the whole advantage of leaving the EU?

[Jesse Norman]

What we have said that there will be no transport checks at borders. We do check transport. I have been out on patrol with the DVSA, and a very effective job it does too of pulling over truckers and checking whether their documentation is in order on a whole variety of different grounds, including compliance with the community licence. That is the difference, and that is the distinction we wish to draw and that it is important to make.

Question put and agreed to.

Clause 1 accordingly ordered to stand part of the Bill.

Clause 2

Number and allocation of permits etc

[Rachael Maskell]

I beg to move amendment 8, in clause 2, page 2, line 38, after “criteria”, insert

“, including compliance with emissions standards,”.

This amendment would explicitly include compliance with emissions standards as a criterion the Secretary of State may use in determining whether to grant an application for a permit.

--- Later in debate ---

[Mr Goodwill]

Certainly, motor manufacturers need to answer questions about how their vehicles have been complying. It is not just Volkswagen that has been caught out over non-compliance with the rules. Other mechanisms have been used to ensure that cars can comply on the test cycle but perhaps not so much otherwise. Some motor manufacturers use a temperature get-out, but we are talking about trucks.

As I said at the beginning of my remarks, trucks do comply. They have not been getting away with the sorts of tricks that some motor manufacturers have been caught out over. The hon. Lady’s amendment would result in the law of unintended consequences. She suggests that to get a permit a truck has to be Euro 6 or better, but that would result in such trucks being used on cross-channel routes, with the dirty trucks back in the UK. Although I can understand everybody’s wish to have cleaner air and better vehicles operating on our roads, I believe the amendment would have the exact opposite effect.

[Jesse Norman]

Let me start by responding to amendment 8, tabled by the hon. Member for York Central, which proposes that the criteria to be considered in allocating permits may include compliance with emission standards.

As the hon. Lady will know, we have launched a consultation on what the criteria should be. One criterion we have suggested is precisely the emissions class of the lorries being used. That is beneficial for European Conference of Ministers of Transport permits because it has the effect of maximising the number of ECMT permits we will have, and we can also consider applying that criterion for future permit arrangements with the EU.

Vehicles are already required to comply with emissions standards under UK law, as my right hon. Friend the Member for Scarborough and Whitby has made perfectly clear. It is important to note that there can be no doubt about the Government’s commitments to a cleaner environment, on the day on which the clean air strategy has been published. That document and the intention to legislate go far beyond anything under any previous UK Government.

[Alan Brown]

Will the Minister confirm whether the consultation and proposed secondary regulations take transport emissions into consideration?

--- Later in debate ---

[Jesse Norman]

The consultation was published last week, so the hon. Gentleman is perfectly able to consult it if he wishes. It says that the emissions class of the lorries being used could be one of the criteria employed. We are consulting on that. That is the point of a consultation; we do not go in saying it will be a criterion. We consulted on it because it is important to get a balance.

[Alan Brown]

Will the Minister give way?

[Jesse Norman]

indicated assent.

[Alan Brown]

I love the rolling of the eyes as the Minister gives way.

[Jesse Norman]

I just want to make some progress.

[Alan Brown]

I want to clarify that the law of unintended consequences, which has been used as an argument against amendment 8, actually falls if the Government are already consulting on the inclusion of transport emissions.

[Jesse Norman]

The consultation is on the class of the lorries being used. If the consultation comes out in favour of an issue having some weight, the Government will look harder at what weight it should have, and will do precisely what has been contemplated by my right hon. Friend the Member for Scarborough and Whitby, namely balance it against potential unintended consequences. My right hon. Friend was pointing out that to legislate at this point would be to invite those unintended consequences, because it would lack the further scrutiny and balancing that a consultation is designed to give.

The Bill already gives the power to use a range of criteria, including compliance with emissions standards. It does not need to be included in the Bill for us to use that criterion. It is important that primary powers give flexibility to the criteria and allow for them to be amended in future. We intend to include those criteria in regulations, which will, of course, themselves be debated by Parliament and be subject to approval in both Houses.

We also wish—as no doubt future Governments will wish—to be able to change the criteria to make improvements to the scheme or as there are evolutionary changes in the industry. It is reasonable to include such detail in secondary legislation, which would allow those changes to be made more easily. I absolutely support the intention behind the amendment, in so far as it is to ensure that our haulage sector minimises emissions and complies with high environmental standards, but the amendment is not required to achieve that and I hope the hon. Lady will not press it.

Amendment 7, also tabled by the hon. Member for York Central, proposes removing the reference to

“first come, first served or an element of random selection”.

She asked how that would operate. It is important that those references remain in the Bill, not only because they deal with the more difficult situation, where there is a limited number of permits, but because they allow us to allocate permits in the “normal” manner, where there is no limit on permit numbers.

Let me look at the idea of first come, first served, in response to the hon. Lady. Our existing permits schemes are undersubscribed—it is very important to be aware of that—so applicants have always received what they have applied for. In 2017, for example, we issued 66 permits for Ukraine from a quota of 400. For Georgia, we issued six permits from a quota of 100. Permits are issued on demand, and in those cases it makes sense to issue permits as applications are received—that is to say, on a first come, first served basis.

In the future, where more permits may be available than are applied for, permits can be issued to all available applicants. The current drafting, with the reference to first come, first served, ensures that the Secretary of State clearly has the power to provide in regulations that permits may be allocated on that basis, and that no other factors are required to be taken into consideration.

[Rachael Maskell]

I am grateful to the Minister for setting out the surplus number of permits, but if we faced a scenario where there was increased demand on the number of permits—of course, we are entering a new scenario here—why would a cap be put on the number of permits available?

[Jesse Norman]

It entirely depends on whatever permit regime may be in place. It may well be an entirely liberalised one, with an enormous number of permits available, that therefore does not apply a cap—or it may not, as agreed.

[Rachael Maskell]

Following through on that logic, why even stipulate that it needs to be on a first come, first served basis? If applicants reach the set criteria to warrant having a permit, surely that should be the basis on which a permit is awarded.

[Jesse Norman]

I am struggling to make myself clear. I have just gone through a case where there are more permits available than the numbers demanded. Under those circumstances, it makes every sense for the Secretary of State to have a clear power to allocate on a first come, first served basis.

[Rachael Maskell]

indicated dissent.

[Jesse Norman]

I will come on to other circumstances later, if I am able to proceed, but there is no doubt that that clarity is of value, and that is the clarity that the Bill affords.

This is clearly a more simple process, both for Government and for hauliers. It would mean that hauliers would not be asked for as much information, and that additional criteria would not need to be applied. It would therefore keep the process as simple as possible. I will give detail on other cases later.

Moving on to random selection, the Bill enables regulations to be made that provide for how the Secretary of State is to decide whether a permit should be granted. Such provision may include specifying criteria or other selection methods, including an element of random selection. If the demand for permits exceeds their supply, we will look to allocate them in a way that maximises benefits to the UK economy, and that is fair and equitable to hauliers. We have made that perfectly clear, and it was repeated on Second Reading. We will set out criteria in regulations, and the Secretary of State will provide guidance relating to the information that applicants must provide in their applications.

[Rachael Maskell]

I thank the Minister for talking through how he sees the system operating. I still question what happens on a first come, first served basis to people at the end of the queue, in the worst-case scenario. Would they still warrant a permit? Also, the Minister used the word “random”. It seems a rather unplanned way of looking at the aspirations for our economy. Does the Minister agree that that is perhaps not the right word for the Bill?

[Jesse Norman]

The word “random” is a technical way of describing a mode of allocation. I do not think that it is not the right word; I think it may well be the correct word. The hon. Lady may take it in some folk sense of the word “random”, but that is not what is intended in the Bill. Let me proceed, and I will address the question that has been raised as we continue.

We are consulting on the criteria and methods to be used for allocating permits. Those criteria and methods will be included in regulations, and could include relevant factors such as the need for an applicant to hold a valid operator’s licence, the environmental standard of the vehicle organised to be used, as I have described, or the sector in which an applicant operates.

There may be cases, however, in which the application of such criteria does not enable the Secretary of State to allocate all the permits. It is therefore necessary for other methods of selection to be available. It is important to remind the Committee that we have said that we will look to allocate the permits in a way that maximises the benefits to the UK economy, and that is fair and equitable to hauliers. Those are the governing principles behind the assessment of the criteria.

[Rachael Maskell]

Could the Minister explain why the words that he has just used about the importance of our economy are not in the Bill, as opposed to the phrase “random selection”? Surely that is what the permits system is all about.

[Jesse Norman]

The Bill contains a framework by which permits are to be allocated. Maximising the benefits to the UK economy and making that framework fair and equitable to hauliers are overriding principles behind the legislation, as I pointed out on Second Reading. The Government have been quite clear about that. We have listened to the concerns raised in the other place that all permits might be allocated randomly and that getting a permit would be purely a matter of chance. That is not the case. Where random selection is used, it will not be used on its own without any other criteria being applied.

Although we expect some of the provisions in the Bill not to be necessary, we are under a duty to ensure that the Secretary of State has the power to make regulations that allow a range of outcomes to be realised. We have made explicit mention of “first come, first served” and “random selection” in the Bill in order to make it clear that the Secretary of State has the power to make regulations that include such provision. Given that there may be circumstances in which “first come, first served” or an element of “random selection” are required, it is appropriate for the Secretary of State’s powers to be spelled out clearly in the Bill, which will ensure that there is no doubt that those powers are available to him or her and provide transparency about what may be included in the regulations.

We have aimed to be open about the potential use of those methods and I have sought to set out the circumstances in which we envisage they may be used. To limit the powers would limit the ability to operate a permit scheme that works to the benefit of hauliers. We will consider all the responses to the consultation before bringing regulations forward, so that the criteria and methods we are using are suitable, and the regulations will be subject to debate and approval by both Houses, but we want to ensure that the Bill enables regulations to be made that address scenarios in which the application of criteria needs to be supplemented by other methods of selection. I hope that the detail I have set out allays fears about how they may be used and that the hon. Member for York Central feels content not to press her amendment.

Government amendment 1 will ensure that the Bill allows flexibility for whatever permit scheme we may have in future. It will allow the Secretary of State to issue permits in cases where the criteria prescribed in regulations may not be suitable. On Second Reading, hon. Members raised the issue of music tours and their hauliers not being able to travel internationally. That is a good example of an industry where a one-size-fits-all permit scheme may have some unintended consequences. Applying a single set of criteria to everyone might mean that some who are providing a highly valuable service with wider economic benefits are particularly disadvantaged. Amendment 1 will allow specific steps to be taken to mitigate that effect.

The Bill currently allows a number of permits to be available for a class of applicants, although the variety of situations in which those permits could be used is varied and often unforeseen. It might help the Committee if I give some examples. Let us take, for example, the case of an emergency where hauliers could not have foreseen the need to obtain a permit. In such a case, amendment 1 will allow permits to be issued to deal with those emergencies. That could be, for example, where there is a need to move fuel for energy supply, or to move medicines. There are also circumstances in which a haulier might be looking to move goods that are particularly important to the economy, perhaps with one-off, unusual loads, such as aeroplane parts, large turbines or the like. We want businesses to be able to move their goods, especially where there is a much wider economic benefit from that haulage.

[Rachael Maskell]

Will the Minister explain to the Committee why he is seeking temporary exemptions from the permit scheme, as opposed to emergency permits being issued to address the scenarios he has outlined?

[Jesse Norman]

We have taken the view that exemptions are the simplest and cleanest way to handle the cases we are talking about. Of course, some cases will be emergencies, but there might be circumstances that are not emergencies at all. I have described some examples, such as the movement of aeroplane parts, that would fall into that category. There are other cases that are worth touching on, where the type of haulage that a business does is unlikely to receive a permit due to the pattern of haulage movements, despite high economic benefits. That would be precisely the kind of case we have seen of music tours where a single journey from the UK might involve numerous stops across Europe. The amendment allows us to cater for those eventualities as well.

To be clear, the number of permits for such purposes will be small. We believe that we should apply a standard set of criteria to all applicants wherever possible. The amendment will allow us to smooth off some of the rough edges that come from having a permit scheme for, for example, matters of key national security or wider economic interests.

[Alex Norris]

I know that the Minister cannot give exhaustive lists of what is an emergency or special need, but can he be clear that circumvention of industrial action would not fall into that action?

[Jesse Norman]

I have not considered that. I certainly think that there are cases of industrial action that might constitute a national emergency. We have seen that in fuel haulage, for example. I am not sure that I can give the hon. Gentleman that assurance, but I understand the spirit in which he intervenes.

The power before us is relevant only where the number of permits is limited. As I have said, we expect to reach an agreement where there is no limit on the number of permits, which would avoid the need to use subsection (2) of clause 2. I remind the Committee that we are consulting on the detail of a permit scheme, including how permits are allocated, which will inform the regulations that are made under the clause.

The policy scoping documents published in March set out that we intend the Secretary of State to have powers to allocate permits directly. These will be used for areas of economic importance or for security. Amendment 1 does not change the policy on the methods for allocating permits; it simply ensures that a small number of permits can be kept aside to deal with those cases, even when they are not a clear “class of applicants”, as the previous drafting would have required. That allows us to be clear with Parliament about how we envisage a permit scheme operating and how the powers in the Bill would be used.

[Rachael Maskell]

I really appreciate the Minister giving way. Could he outline how exemptions would not be abused by hauliers?

[Jesse Norman]

Of course, attempts to seek exemptions would be examined carefully and soberly. I have already said that we do not expect this to be anything other than a small number of exemptions. We are not expecting abuse of this provision. The point is to try to be clear and to allow for unusual circumstances, and to do so in a limited and constrained way. The haulage industry already rightly expects us to offer that level of flexibility to allow its own businesses to operate as flexibly as they do now. These simple and sensible amendments will allow us to work for the haulage industry in any future permit scheme, and I hope that the Committee will support them.

[Rachael Maskell]

Clearly we are handling the Bill in a most unusual way, because a consultation process is currently live on whether we should be using environmental measures to determine how permits are to be issued, so I will withhold my judgment on that. We will be able to address the issue at the next stage when we consider the regulations. I am happy not to press amendment 8.

On amendment 7, the Minister’s descriptions of “random” and “first come, first served” still do not satisfy the real requirements of driving our economy forward and ensuring that it is secure and that lorry movements will be able to support that. However, I also recognise that the Minister has said that the Government are consulting on those elements. Again, we will be able to address the issue of how the permit system will operate at the next stage of drafting the regulations.

I must say that the Minister was confused in the way he presented his rationale for the inclusion of these terms in the Bill. It is completely superfluous to suggest a “first come, first served” or “random” selection if the consultation is going on currently. I do not understand why they are included in the Bill.

[Jesse Norman]

The effect of not including them in the Bill would be that it was less clear to Parliament that these possible means of selection were available to the Secretary of State. Surely the hon. Lady agrees that more transparency is better than less.

[Rachael Maskell]

The drafting could have been greatly improved if it make the points that the Minister is trying to make. I still believe that the wording is somewhat clumsy but, given that this issue will be superseded by regulation, I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

[Jesse Norman]

I thank the Committee for those comments on the amendments, and I am grateful for the support that hon. Members have given us on the question of flexibility. In response to the question about abuse, which was perfectly proper, I should say that we will certainly expect hauliers to demonstrate why they required a permit under those unusual circumstances, and what goods they plan to move. It is important to give that clarity. As I said, we do not expect it to be more than a small number. I thank colleagues for their contributions. Amendment 1 is a simple amendment, and I beg to move—

[The Chair]

The amendment should be made formally.

[Jesse Norman]

Do I not have a closing speech on my amendment 1?

[The Chair]

You should have done that earlier, while the group of amendments was being discussed. I am sorry about that.

Amendment made: 1, in clause 2, page 2, line 40, at end insert—

“(d) for a number of permits determined by the Secretary of State to be available for grant in cases in which the Secretary of State considers it inappropriate for provision made under paragraph (c) to be applied, for example because of an emergency or other special need.”—(Jesse Norman.)

This amendment would allow regulations to provide for the Secretary of State to reserve a certain number of permits for grant in cases in which it is inappropriate to apply the normal permit allocation procedure set out in regulations, for example because of an emergency or special need.

--- Later in debate ---

[Jesse Norman]

I beg to move amendment 2, in clause 2, page 3, line 2, leave out from “permit,” to end of line 3 and insert

“including provision specifying—

(i) when an application is to be made, or that the time when an application is to be made is to be determined by the Secretary of State;”

This amendment would ensure that regulations can provide for the time when a permit application is to be made to be determined by the Secretary of State.

The amendment relates to times when permit applications must be made. The Bill currently outlines that regulations may specify when an application may be made, and our intention was to include that in regulations, but the effect of that may be inadvertently to limit the flexibility to issue permits. For example, where we expect the demand for permits to exceed supply, we will ask hauliers to submit applications during a specified period that would allow permits to be allocated consistently, in accordance with the criteria included in the regulations.

However, because of the various possible permit types and different permit agreements that we have with different countries, we want to be able to accept applications at different times, in some cases where we have more permits than we require, and for permits to be issued in special cases, as we discussed earlier. We want to accept permit applications at any time, but by setting out in regulations where applications can be made we would be limiting that.

The haulage industry will, as I said, expect us to offer as much flexibility as we can. The amendment makes simple, sensible changes that, again, allow us to work for the haulage industry. I hope that the Committee will support its inclusion.

[Rachael Maskell]

The Minister’s explanation seems perfectly reasonable. He says that he believes that there will be a limited number of circumstances, so it will be interesting to see that in reality. I will reserve my other comments for discussion of clause 3.

Amendment 2 agreed to.

Clause 2, as amended, ordered to stand part of the Bill.

Clause 3

Temporary exemptions

--- Later in debate ---

The amendment simply calls on the Secretary of State to report annually to Parliament on the number of temporary exemptions made under this section. That seems reasonable, given that we are currently dealing with an unknown quantity. It would inform Parliament, but it would also inform the permits regime whether the regulations address the purposes that the Minister intends, or whether further regulations on permit exemptions are required. It is a simple amendment that would inform the Secretary of State and his decision-making powers on how the exemption scheme will operate.

[Jesse Norman]

As the hon. Lady said, the clause allows the Secretary of State to make a temporary relaxation of permit requirements, which is limited to dealing with an emergency or some other special need. By “special need”, we mean a situation in which it is essential to move particular kinds of goods—for example, as I have touched on, where there is a shortage of petrol or other fuel because of disruption in supply chains. We could also include moving medical supplies or radioactive materials.

Permit requirements will come from international agreements, so the UK cannot unilaterally decide to make an exemption. The other country will need to accept UK vehicles without a permit. The effect is that the power is as much about UK vehicles being able to take goods to other countries as about bringing goods into the UK. We intend that exemptions will be targeted at those who need to travel without a permit. That could be a particular kind of vehicle—a fuel tanker or a vehicle carrying specific goods, such as vaccines. The exemptions are made by publishing a notice or writing to a specific operator being exempted, similar to exemptions made in other regimes, for example with drivers’ hours. The circumstances in which this power is used are expected to be rare, and therefore we do not expect it to be used with any great frequency. It is important that it is included in the Bill in the event that exception is needed. That is why we have asked the Committee to agree that clause 3 should stand part of the Bill.

The hon. Lady’s amendment raises an interesting point. I think it is appropriate for the officials and me to consider what information about this should be published, but I do not believe that it needs to be a provision in the Bill. The circumstances in which temporary exemptions are to be granted are expected to be sufficiently rare that, although we can consider what information is published on them, I do not think there is great value in laying this issue before Parliament.

[Rachael Maskell]

Could the Minister therefore explain how he will make that information available so that Parliament can scrutinise whether the regime proposed for permit exemptions is operating well, and how he plans to gather that data and make it available more widely?

[Jesse Norman]

It is in the nature of these things that they are unpredictable. It is also the case that, where that information is published, as opposed to simply being notified, it will not be absolutely clear how many will be availing themselves of the exemption. We certainly do not wish to create onerous requirements. I am happy to have a further conversation outside the Committee, if the hon. Lady has ideas or suggestions about how information should be taken into account in any future work that we do.

[Rachael Maskell]

I listened carefully to the Minister, on how he is willing to engage on the amendment, given the lack of clarity. I am just considering again the regulations that will have to accompany the Bill, should it proceed to enactment. In the light of that, clearly there will be regulations on how the exemption scheme will operate. If he is willing to look at how the number and type of temporary exemptions are provided for through the regulatory process, I am happy to withdraw the amendment. Will he consider that?

[Jesse Norman]

I am very happy to consider that.

[Rachael Maskell]

I therefore beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 3 ordered to stand part of the Bill.

Clauses 4 and 5 ordered to stand part of the Bill.

Clause 6

Production of permits and inspection of vehicles

Question proposed, That the clause stand part of the Bill.

[Rachael Maskell]

I am grateful for the opportunity to speak to clause 6. As discussed before, there needs to be greater clarity around the inspection regime of permits. I have not been satisfied by the Minister’s response about the inspection regime. It seems strange to have a permit system but no systematic way of examining the permits to ensure that they are compliant with the vehicles they are attributed to, so we need to look at this serious issue. It seems that a slightly random process is applied to hauliers and whether they are hauled off the road and have their permits and documentation examined. If, as the hon. Member for Kilmarnock and Loudoun said, we are to take control of our borders, it is incumbent on us to have a systematic way of ensuring that vehicles’ documentation is in order. We therefore need greater clarity on how the inspectorate system will work and on whether there will be more resources put into the inspectorate, given that more documentation will have to be manually examined in the absence of digital opportunities. We need to ensure that there is full compliance with the regime.

There is a further concern. The Minister has set out for us today how there will be exemptions to the scheme and how vehicles, drivers and operators could fall through the gaps between exemptions and the lack of a systematic way of examining permits. Will the Minister give more attention to ensuring that our borders are secure and that trade will still be able to flow? People across the country will be surprised if hauliers do not have the correct paperwork on board, and people who voted to leave the European Union will be most disappointed that our borders will not be more secure.

Perhaps the Minister will set out how he anticipates ensuring a comprehensive inspectorate around his permit proposals, and how he will ensure we do not see the holding up of haulage, but at the same time have strong compliance.

[Jesse Norman]

I am slightly struggling with what the hon. Lady wants: on the one hand, she wants a comprehensive system where it seems that everyone gets checked at borders; on the other hand, she wants frictionless trade. Those two things are incompatible.

[Rachael Maskell]

May I help the Minister? I assure him that I want us to be part of the EU community licensing scheme, which would remove all those challenges.

[Jesse Norman]

That, of course, does not go to the circumstances contemplated by much of the Bill. The Bill is precisely designed to address issues where we may need a permitting regime. Therefore, what the hon. Lady said does not go the point, I am afraid.

Let us be perfectly clear: the Bill does not contain new powers. Examiners from the Driver and Vehicle Standards Agency already have powers to stop vehicles in other enforcement legislation. Community licensing is already enforced in roadside vehicle checks. At the same time, many other regulations are checked, including drivers’ hours regulations and vehicle roadworthiness. We intend to enforce permits in the same way as community licences. We have not created any new powers to stop vehicles. Vehicles are stopped at present; in that sense, our borders remain secure. Our hauliers are subject, as the hon. Lady knows, to a set of enforcement powers that ensure that regulations on moving goods are properly complied with. All this clause does is give similar powers for a future permit scheme, to ensure that it is properly used and enforced.

[Rachael Maskell]

Does the Minister not recognise that we are moving into a completely new scenario? Most of our haulage traffic crosses between the European Union and the UK, which will be a different jurisdiction after 29 March next year. Therefore, we are talking about a very different set of scenarios from the one we currently operate in, which will make more demands on the system. Currently, as part of that same community, we do not have to carry out those checks because there is recognition across those borders.

[Jesse Norman]

I think the hon. Lady misunderstands; there is a community licence scheme in place. When hauliers are pulled over at present, their community compliance is checked in the same way that their drivers’ hours regulations are checked. If she does not understand that, she may just not understand how our system actually works.

[Rachael Maskell]

I do understand how the system works, but we are talking about a different set of scenarios because we will have a border, whatever its nature may be. That is why we are dealing with a different set of circumstances. If we are outside the community licensing scheme, clearly, the way that the permit will operate, hence the necessity for this Bill, will mean that we will not be part of that wider community that currently exists. It is not just about making sure there is compliance; there is more need and demand to ensure that there is compliance with a new permit scheme.

[Jesse Norman]

The current scheme operates in the way I have described. What is contemplated under the Bill as regards the powers to enforce will track the current scheme. That is to say, the Bill does not contain new powers. In that sense, there will be a high degree of carry-over, quite independent of the arrangement that we strike with the European Union, which, as the hon. Lady knows, we expect to be one of liberalised trade. The point is that community licensing is already enforced and it will continue to be under the new regime in the same way it is already enforced. There are no new powers.

All we ask of the Committee is to recognise that these powers are required to implement the purpose of the Bill, the principles of which were agreed on Second Reading, and that they are properly fit for the task and reflect what we are doing in relation to the community licence. They are thoroughly sensible powers for proper enforcement of a permits regime.

Question put and agreed to.

Clause 6 accordingly ordered to stand part of the Bill.

Clauses 7 and 8 ordered to stand part of the Bill.

Clause 9

Report on effects of EU-related provisions

[Rachael Maskell]

I beg to move amendment 10, in clause 9, page 5, line 30, after “Kingdom” insert

“and setting out the number of permits requested, granted and refused”.

This amendment would require the Secretary of State to report on the number of permits requested, granted and refused.

The Committee will be pleased to know that this is the last amendment I have tabled to this part of the Bill.

The amendment looks at the way the permit system is operating, how it is working—or perhaps not working—and providing the data necessary for Parliament to carry out its scrutiny function. It is a simple amendment that asks Ministers to set out

“the number of permits requested, granted and refused”,

so that there can be real understanding of why permits are refused, and of the level of refusal, should that situation occur. It would also be useful for the industry to get a detailed understanding of processes that the Government operate over their permit arrangements, hopefully leading to a reduction in the number of permits refused in the future. This is not only an informative amendment, but again, one that deals with gathering simple data. I am sure we are looking at only a small number of permits that will be refused, but I believe that this is a sensible amendment, which will help with the scrutiny function over how well the Bill operates in the future.

[Jesse Norman]

I can be brief and supportive on this. The Government brought forward an amendment in the other place to add clause 9 to the Bill, honouring an undertaking that my noble colleague Baroness Sugg gave

“to consider how best to review the impacts of any permit scheme, should one be required.” —[Official Report, House of Lords, 17 April 2018; Vol. 790, c. 1100.]

We have been clear that we are seeking continued liberalised access to the EU. However, I recognise that there is some concern about the impact of any limited scheme on the haulage industry. If a report is required under clause 9, the Government would naturally plan for this to include the number of permits requested, granted or refused, and I can give the hon. Lady that assurance. Accordingly, I do not believe that the amendment requires the Secretary of State to do anything that he would not expect to do in any case. For that reason, the amendment is unnecessary and I ask the hon. Lady to consider withdrawing it.

[Rachael Maskell]

Will the Minister reflect on how he communicates how the refusal system is working? While I take on board what he has said, clearly there is concern that if there are refusals, greater understanding is needed around that, and whether that is due to the limitation on the number of permits provided—a concern I raised earlier—or to applicants not complying with the permit scheme’s requirements.

[Jesse Norman]

We are talking about circumstances in which a report is required. If so—and that may not be the case—the Government would plan for this to include the number of permits requested, granted or refused. Inevitably, that then becomes a matter for official discussion, scrutiny and further consideration. Of course, it is also a matter that can be raised and debated in Parliament. The hon. Lady should feel some reassurance on that front.

[Rachael Maskell]

In the light of the Minister’s response and of the fact that Parliament will have the opportunity to ask questions and have debates on the matter, I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 9 ordered to stand part of the Bill.

Clauses 10, 11 and 12 ordered to stand part of the Bill.

Clause 13

Trailer Registration

[Rachael Maskell]

Labour supports this amendment. Clarity is needed on the eligibility of the compulsory and voluntary schemes, and the amendment would be helpful in making it clear where obligations sit in this regard. Labour wants to extend the application of the legislation to non-commercial trailers, since incidents occur as a result of poor tow bar instalment and failed safety features on domestic trailers. It is therefore important to incorporate domestic-use trailers into the scheme. The significance of a voluntary registration scheme is unclear if there are no other levers on this issue, such as liability if incidents occur. Perhaps the Minister will clarify the use of the voluntary scheme to the Committee.

However, Labour does not believe that a third-party operator should run the scheme and wants to see this kept in-house, especially as it is a critical road safety issue. We believe that this function should be exercised through an arm’s length body. We support the call not to delay producing the report mentioned in clause 13, thus ensuring that it can be used to influence the drafting of regulations to accompany this Bill.

[Jesse Norman]

We turn now to the second half of the Bill and trailer registration. I will respond to the points made and talk about the wider thrust of the legislation. Hon. Members will be aware that the consultation launched on 16 May covered the extent of the proposals in the Bill across both haulage permits and trailer registration. We are consulting with the industry to help us get the details of any permit scheme and the trailer registration scheme right. The consultation on the proposals, as they currently stand, seeks views on a number of issues relating to trailer registration. Our proposals require the registration purely of those trailers undertaking international travel to a foreign country that has ratified the 1968 Vienna convention. This goes to the point about voluntary registration. That would apply to commercial trailers weighing over 750 kg and non-commercial trailers weighing over 3.5 tonnes. Ministers and officials in the Department have been engaged with industry throughout the development of these proposals. In spring this year, we held workshops to discuss them with hauliers and relevant trade associations, among a range of other stakeholders.

In addition to the public consultation, we have published a number of documents to assist and inform discussion of the Bill. Policy papers have been issued on the Bill and on the 1968 Vienna convention, which the trailer registration scheme is being introduced to support. Policy scoping notes are available to Members in the House of Commons Library.

The Government’s outline policy makes clear which types of trailer will be subject to additional obligations if used abroad, upon the coming into force of the 1968 convention. Trailer registration is commonplace throughout continental Europe. As such, if we did not place any obligations on users taking trailers abroad that would be likely to attract targeted enforcement action from foreign enforcement authorities. That point was well made by my right hon. Friend the Member for Scarborough and Whitby on Second Reading. That enforcement action would cause disruption on a significant scale, even to those trailers that are correctly registered, and would have an adverse effect beyond hauliers, causing disruption to UK businesses and the international supply chains within which they operate.

[Alan Brown]

The Minister talks about disruption that might be caused by enforcement action. Does that not suggest that the registration scheme would need to be compulsory? If it were voluntary, it could still have the same net effect of enforcement action. Compulsion would make that easier to process.

[Jesse Norman]

We are concerned with enforcement action by foreign authorities, against which trailer registration would be a defence. That provides a reason for supporting trailer registration, as we have described it.

[Alan Brown]

If it is only voluntary, perhaps foreign enforcement agencies will not have any confidence in signing up for the scheme. If it were compulsory, one would assume they would be less likely to take enforcement because they would understand that there is already a compulsory scheme in place in the UK.

[Jesse Norman]

I think that language is not helping deliberation on this matter. We require registration for the classes of trailer that I have described, which undertake international travel to a foreign country. It is not voluntary for those trailers that fall within those categories. It is mandatory and therefore meets the hon. Gentleman’s concern. I will go on to discuss it in slightly more detail.

The Government’s outline policy makes clear which types of trailer will be subject to additional obligations if used abroad, upon the coming into force of the 1968 convention. As I have said, trailer registration is commonplace. The measure is designed to mitigate the effects of enforcement action undertaken abroad.

On the basis of engagement with industry and previously reported enforcement to UK authorities, we have drawn a distinction between commercial and non-commercial trailers, which is the basis for the higher weight limit of 3.5 tonnes for non-commercial trailers. Engagement with non-commercial stakeholders has indicated a negligible number of such trailers.

[Rachael Maskell]

Will the Minister explain to the Committee whether, when an incident occurs, it makes any difference if it is a commercial or non-commercial trailer?

[Jesse Norman]

Our experience is that there has been very little enforcement against non-commercial trailers abroad. There has, however, been some enforcement against commercial trailers, for which this would be a defence. That is a reason for recommending the Bill.

[Rachael Maskell]

With respect to the Minister, that did not answer the question I asked. I asked why there would be any differentiation in the weight of the trailer, if it was owned commercially or non-commercially, should an incident occur.

[Jesse Norman]

Three and a half tonnes is a standard weight in international haulage. There are virtually no non-commercial trailers above that level. Since there is enforcement against commercial trailers, it makes sense to exempt a smaller number of commercial trailers, and that is what the Bill does.

The risk of enforcement action against non-commercial trailers is minimal. While the convention allows for enforcement action against all trailers that weigh more than 750 kg, all previous reported enforcement action has been directed towards large commercial trailers. We have no evidence of countries taking enforcement action against unregistered foreign caravans and horse trailers. The small risk of enforcement action against common non-commercial trailers does not justify mandatory registration, but the keepers of such trailers may register them voluntarily if they wish.

[Sarah Champion]

I apologise, but I think the lack of clarity is catching. [Interruption.] I know—it is spreading like wildfire. I understand that the Minister is seeking to ensure we have parity with international colleagues to reduce the risk of British trailers that go abroad being in violation and vice versa, but I thought the Bill was also about making our roads safer. He is talking about parity with the EU in trailer registration, with us not running risks overseas, but I do not understand where his consideration is on safety on our roads. Will he speak to that?

I also do not understand why “commercial” relates only to weight. We could define the commercial use of a trailer. For example, I think of someone doing roadworks towing a little trailer with a big, heavy road roller on it, and if that were to come loose we would be in real trouble—it would take out a family, not just a small building. Why is the Minister focusing only on weight in the definition of commercial? Will he confirm that the regulations are also about making our roads safer?

[Jesse Norman]

The regulations are focused in particular on the movement of trailers overseas. If there are collateral effects in improving our road safety, that is all to the good. Thanks to interventions and amendments that have already been made, we have strengthened aspects of the measure, but the Bill’s central focus is to address the registration of trailers going overseas.

[Mr Goodwill]

I hope to reassure the hon. Member for Rotherham. I am one of those rare people who has a non-commercial trailer over 3.5 tonnes, which is indeed used for transporting a traction engine. Although a private HGV, that trailer already has to pass its annual MOT test. Indeed, such trailers have to pass a test every year—there is no three-year exemption. Those are therefore not unsafe trailers, so I hope that she does not labour under the misapprehension that large numbers of trailers are running around the country on non-commercial heavy goods vehicles that are not tested every year by the Department.

[Jesse Norman]

I am grateful to my right hon. Friend for his comment. Of course, he is right.

[Sarah Champion]

May I come back on that intervention? I do not know the protocol.

[Jesse Norman]

Why not let me speak to the point, then the hon. Lady can come back to me?

[The Chair]

Order. Members are free to intervene as long as the speaking Member takes the intervention. In this context, if a Member does not have a request to intervene accepted, they are free to rise and speak simply to make their point. People can get up and give speeches—it is almost a free-for-all. If you have a long intervention, it might be worth saving it instead of saying a few words.

[Jesse Norman]

I am grateful, Mr Davies. The hon. Member for Rotherham may wish to make a forensic dissection of the Government’s position or that of my right hon. Friend the Member for Scarborough and Whitby when she comes to speak. However, let me address the points that she made.

The first question is: what is a commercial trailer? Of course, it is not defined by weight. There are criteria as to what constitutes a commercial trailer, and the legal definition we are using is the idea of a trailer used for transport of goods or passengers’ belongings for commercial purposes, such as transport for hire or reward, or own-account transport, or for other professional purposes. That is closely aligned with the definition of a commercial vehicle in EU law.

The hon. Lady raised earlier the question of why one would have a weight threshold. I repeat that 3.5 tonnes is a common weight threshold for additional scrutiny obligations of the kind that my right hon. Friend the Member for Scarborough and Whitby pointed to in UK law, both in EU law and in the Vienna convention. We have no evidence of countries enforcing against unregistered foreign caravans and horse trailers. The smallest enforcement action against common non-commercial trailers, such as the one described by my right hon. Friend, does not justify mandatory registration, but the keepers of such trailers will be able to register them voluntarily if they wish, and of course they are subject to other regulatory constraints.

The hon. Member for Kilmarnock and Loudoun raised the matter of whether it would be suitable for an authorised third party to run a registration scheme. He raised the question of the status of the National Caravan Council and its CRiS—central registration and identification—scheme on Second Reading. As I said in that debate, I have previously met the NCC to discuss the proposals before us today in relation to CRiS and the scheme that it operates, for which I have a great deal of regard.

The Department’s legal team have considered that issue and the question of whether the registration standard specified in the 1968 Vienna convention on road traffic allows for a private organisation to operate the service. In order to fulfil the standards of the convention, it is clear that the trailer must be registered by a ratifying country or an administrative division of the nation. In this case, the Driver and Vehicle Licensing Agency will operate the scheme, which will ensure that registration fully meets the standards outlined in the convention.

The NCC offers a valuable service to its members and to the industry more widely. The scheme is not intended to duplicate or replace the NCC’s scheme. The registration standards of the convention simply necessitate that registration is not undertaken by a third party, and we are under an obligation to obey those standards. Guidance will be issued to explain how the registration scheme applies to users. It will clarify which users do and do not need to register under the scheme before using a trailer in a 1968 convention country. The guidance will make it clear that registration is not necessary for leisure-use trailers weighing under 3.5 tonnes. As such, we do not envisage that that will replicate the work of the NCC, but the Department will continue to work with it to avert any such risk.

I appreciate the intent behind the amendment, but I hope that Members will concur that it is not necessary in the light of the significant volume of material that the Department has published regarding our proposals and the ongoing consultation. We have worked extensively to involve stakeholders in the development of the proposals, and the consultation is directly seeking views on a number of issues relating to trailer registration. That will inform the ultimate detail of the first set of regulations to enact the scheme, which Members will note will be made by the affirmative procedure, allowing for their further consideration.

[Alan Brown]

I listened to what the Minister said, and I appreciate the clarification on the third-party issue. I am not particularly precious about that, and his explanation made sense. There is sense in the DVLA overseeing the entire scheme anyway.

The Minister mentioned the unhelpful language of “voluntary or compulsory”. Truth be told, I am still a bit confused about that because clause 13 (1) says:

“Regulations may provide for the compulsory or voluntary registration of trailers kept or used on roads”.

It seems to me that it is still a bit unclear, and it would be good to get further clarity. The amendment is really about getting that clarity for all parties, so they understand what will be compulsory and what might be voluntary. That said, particularly given the discussion on paragraph (c) of proposed new subsection (2A), I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Ordered,

That the programme order (this day) be amended as follows—

In paragraph (1)(a), leave out ‘2.00 pm’ and insert ‘2.30 pm’. —(Jesse Norman.)

Ordered, That further consideration be now adjourned. —(Jo Churchill.)

Haulage Permits and Trailer Registration Bill [Lords] (Second sitting)

Jesse Norman Excerpts

Committee Debate: 2nd sitting: House of Commons
Tuesday 22nd May 2018 Public Bill Committees

Trailer registration

[The Parliamentary Under-Secretary of State for Transport (Jesse Norman)]

I beg to move amendment 3, in clause 13, page 9, line 2, leave out subsections (3) to (5).

This amendment removes provision which is replaced by NC1 and NC2.

[The Chair]

With this it will be convenient to discuss the following:

Government new clause 1—Trailer safety: report—

“(1) The Secretary of State must prepare a report on the number and causes of road traffic accidents occurring in England, Wales or Scotland during the reporting period which—

(a) involved trailers, and

(b) caused injury or death to any person.

(2) The report must contain an assessment of whether—

(a) regulations under section 13 should provide for the compulsory registration of relevant trailers;

(b) regulations under section (Trailer safety: testing regulations) should be made.

(3) The report must be laid before Parliament within the period of one year beginning with the day on which this section comes into force.

(4) In this section—

“relevant trailers” means trailers which are kept or used on roads and—

(a) if constructed or adapted to carry a load, weigh more than 750 kilograms when laden with the heaviest such load;

(b) otherwise, weigh more than 750 kilograms;

“reporting period” means a period determined by the Secretary of State, which must be a continuous period of at least 12 months ending no earlier than 18 months before the day on which this section comes into force.”

This new clause requires a report on road traffic accidents involving trailers to be laid before Parliament, including a recommendation as to whether compulsory registration or periodic testing of trailers weighing more than 750 kilograms should be introduced. This amendment would amend NC1(a) to ensure that the report contains an assessment of compliance of existing provisions relating to the installation of tow bars.

Amendment (b), to Government new clause 1, in subsection (1)(a), after “involved” insert “commercial or non-commercial”.

This amendment would ensure that the reporting requirements apply to both commercial and non-commercial trailers.

Amendment (a) to Government new clause 1, after subsection (2) insert—

“(2A) The report must contain an assessment of levels of compliance with existing provisions relating to the construction, condition or safety of all trailers.”

This amendment would require the Secretary of State to assess and report on the construction, condition and safety of all trailers.

Amendment (aa) to amendment (a) to Government new clause 1, at end insert

“and the installation of tow bars”.

This amendment would amend NC1(a) to ensure that the report contains an assessment of compliance of existing provisions relating to the installation of tow bars.

Amendment (c) to Government new clause 1, after subsection (2) insert—

“(2A) Where reporting on a road traffic accident under subsection (1) which involves a tow bar attachment, the Secretary of State must include an assessment of whether the tow bar attachment contributed to the accident.”

This amendment would require the Secretary of State to include information on tow bar attachments when reporting on road traffic accidents involving trailers.

Amendment (d) to Government new clause 1, in subsection (3), at end insert “, and each year thereafter”.

This amendment would require the Secretary of State to lay a report on trailer-related accidents before Parliament annually.

Amendment (e) to Government new clause 1, in subsection (4), at end insert—

““tow bar attachment” means any device used to connect a motor vehicle and trailer for the purpose of towing the trailer.”

This amendment is consequential on Amendment (c).

[Jesse Norman]

It is a delight to see you in the Chair, Mr Robertson. As colleagues across the Committee will be aware, trailer safety has rightly been discussed in some depth, both throughout debate in the other place and on Second Reading in this place. It is an issue with which I have personally been engaged throughout my time as a Minister. It has been a great pleasure to work with the hon. Member for Bristol South, and I am delighted to see her here today. Many members of the Committee will be familiar with her work on trailer safety.

Before we consider the amendments, it is worth outlining the facts that brought the hon. Lady to the subject. In January 2014, young Freddie Hussey was killed by a runaway trailer as he and his mother, Donna Hussey, walked to their home in the hon. Lady’s constituency, and since her election to Parliament she has worked indefatigably with the family in their campaign to improve trailer safety. In April, I attended the latest in a series of trailer safety summits arranged by the hon. Lady. The event brought together a range of stakeholders in the trailer and towing sector to discuss how safety can be improved. Freddie’s parents, Donna and Scott Hussey, also spoke of their own experience and their subsequent campaign to improve trailer safety, and it was a great honour for me to have a chance to discuss these issues directly with them.

As the Committee will be aware, the Department and its agencies have undertaken significant work as part of our continuing commitment to improve towing safety standards since the tragedy. Highways England leads the national towing working group, which brings together a range of towing stakeholders to address the issue. The Driver and Vehicle Standards Agency reviewed and published further guidance on safe towing practices alongside launching the “Tow Safe for Freddie” campaign. A large number of existing measures deal with the safety and roadworthiness of trailers, and we continue to review them. Like motor vehicles, almost all trailers must now be approved before they may enter service. That may be undertaken at the level of manufacturer and model, or on an individual basis for bespoke or custom-build units.

There is an annual roadworthiness examination that applies to larger trailers with a gross weight of more than 3.5 tonnes and trailers in a number of other categories. Under that regime, about 250,000 trailers are tested every year. I am pleased to say that the units exhibit high standards with a pass rate at first test of almost 90%, but—it is important to say “but”—as has been noted, the regime applies overwhelmingly to commercial trailers, with a minimal number of non-commercial trailers falling within its scope. As the hon. Member for Bristol South noted, about 1.4 million trailers fall outside the current testing regime despite weighing more than the vehicles they are towed by, which do require an MOT.

On Second Reading, the hon. Lady asked how our report will be undertaken, and I would like to provide some clarity today. The report will draw on existing data, but we are looking at what else may be included to inform a full and proper consideration. Members will understand that when producing such reports, it is crucial that we are able to speak with authority and make recommendations that are informed by data. The Department for Transport has a worldwide reputation for the quality and comprehensive nature of its work in data collection and use. I would like to reassure Members about an issue raised on Second Reading by saying that the data used in the current reporting systems is comprehensive and world-leading. It informs the Department’s work on road safety and is reviewed regularly.

The reporting form used to capture information on accidents contains many different data categories, allowing us to understand and identify trends in road traffic collisions. It provides details about the roads, vehicles and persons involved, as well as any injuries that occurred. Reporting systems continue to be refined to improve the depth of the data that informs departmental assessments. I am happy to share the contents of the reporting form with Members, if they would find it useful.

The hon. Lady is right to point to the under-reporting of accidents. Levels of under-reporting appear to be fairly consistent, which is a challenge to overcome, as I hope Members understand. The wholesale development of new reporting systems to collate new data would require several years’ work and is not achievable in the timeline of this legislation. It is crucial that the reports are based on validated and verified data to assess the issue, so the STATS19 accident data will inevitably form an integral component of the report we undertake. The report will, however, provide the starting point from which we can consider whether significant changes are necessary to how we report on trailer safety. Due attention will be paid to the challenge of under-reporting of accidents and we will consider what other types of data we may be able to obtain to inform our recommendations beyond that contained within STATS19. Working with stakeholders in the sector may well comprise an element of this undertaking.

The debate on these issues has been valuable and I thank both Members and peers for their thoughtful and considered contributions. As Members will be aware, on Report in the Lords, Baroness Sugg confirmed my intention to undertake a report on trailer safety, and the continuing discussion, both in the House and with stakeholders at the trailer safety summit, reaffirmed this commitment.

The Government amendments before the Committee today are intended to ensure that we can deliver fully the intent of the amendments made in the other place. That will be achieved in a manner that reflects the extent of our devolution arrangements. Should the safety report recommend that periodic testing is extended to cover all trailers weighing over 750 kg, that may be achieved through an extension of the existing safety regime. The proposed amendments replace the amendments tabled on Report in the Lords and comprise two additional clauses within part 2 of the Bill. Both amendments include in full the recommendations peers sought on the issues of trailer registration and trailer testing.

The provisions in new clause 1 on trailer safety will replace those proposed in the Lords. The new clause details the report to be undertaken and states that it must be published within one year of the legislation coming into force. The report will cover the number and causes of road accidents that involved trailers and caused injury or death to any person involved. The data contained in the report is not restricted to those points, but will contain that as a key thrust of the considerations. The report will cover recommendations sought by peers on whether regulations should provide for an extension of compulsory registration and testing requirements to apply to all trailers weighing over 750 kg.

The reporting period will cover a continuous period of at least 12 months and end no earlier than 18 months before the provision comes into force. That will allow the Department for Transport time to validate and fully consider the substantial body of data that will underpin the recommendations in the report. “Reported Road Casualties GB” is published each autumn, and we anticipate that the proposed timeline will allow us to draw on, at a minimum, the release later this year.

[Sarah Champion (Rotherham) (Lab)]

I am listening with interest to the Minister. Does he plan to capture data about trailers weighing more than 750 kg? There is potential in the legislation to make registration of trailers weighing more than 750 kg compulsory, if that is substantiated by the data.

[Jesse Norman]

As I said, the report will make recommendations on whether regulations should provide for an extension of compulsory registration and for testing requirements to apply to all trailers weighing more than 750 kg.

Amendment (a), tabled by the hon. Member for Bristol South, further proposes that the report will consider the

“levels of compliance with existing provisions relating to the construction, condition or safety of all trailers.”

A great deal of data is already recorded for those trailers that are subject to an annual test and checked at the roadside by the DVSA. The information may well prove valuable in the assessment of the safety of trailers generally, although hon. Members will be aware that it will not cover data for the great number of trailers to which the hon. Lady refers, which are not currently subject to the regular testing requirements. Nevertheless, a consideration of the compliance with those provisions will contribute to the report.

With a trailer population outside the annual test regime in excess of 1.4 million, each weighing between 750 kg and 3.5 tonnes, it is difficult to gather a robust data sample for those trailers to inform the consideration in the report. While the Department will consider which data sources we may draw on to inform any judgments on the standards of roadworthiness of light trailers generally, there is a need to be proportionate in how we gather data in the context of a wider enforcement strategy.

Larger trailers are the focus of existing enforcement, because they have long been recognised to pose the biggest risk. I hope that the hon. Member for Bristol South will appreciate that our position at the moment is that the amendment should not be made. The Department is keen that the report should be beneficial and will examine which additional sources of data we may draw on to inform a full consideration of trailer safety and compliance with both existing provisions and any new provisions that may arise from the report.

Regarding amendments (aa), (b) and (c) to new clause 1, tow bar safety was raised on Second Reading by the hon. Member for Rotherham, and it is certainly an important issue when considering trailer safety. She spoke in particular of vehicles to which a tow bar has been subsequently been fitted, but which carry safety concerns. It is worth focusing here on the definitional question whether “tow bar” covers only the attachments merely to cars or the towing vehicle, or whether it also captures the attachment part of the trailer and where it attaches. That raises questions about definitions that make her amendment hard to carry through, but I will speak to both halves of the question.

Car and vehicle tow bars are subject to examination at annual tests. Cars and heavy vehicles with tow bars fitted are subject to checks both on the mechanical condition and on the relevant electric fittings. The rates of failure of tow bars of this kind at annual tests are extraordinarily low. The figures are published, and in 2016-17 the number of tow bar defects accounted for 0.001% of total defects for cars and light vans—an absurdly low figure. In the case of heavy goods vehicles, the rates of failure are also very low. Nevertheless, Members are right to raise concerns about the consequences of a tow bar failing. At the trailer safety summit, I saw evidence of the state of some tow bars that had been allowed to deteriorate.

[Sarah Champion]

I took the opportunity of the extended lunch break to call my garage, RH Motors, which does MOT testing, and asked about trailers and specific tow hitches. Staff there had recently been on the training, and they said that the threshold for notifying a problem with a tow hitch as a fault is very high; it tends to be due to acute corrosion. With the new regulations having literally just come in, they were not sure whether more guidance had been issued for MOT stations. Will the Minister consider that for future guidance?

[Jesse Norman]

That is an interesting question and I will certainly consider it. I am grateful to the hon. Lady for mentioning it. At the trailer safety summit, we saw evidence from the police force in Somerset of the condition to which some tow bars had been allowed to deteriorate. It is a source of genuine concern. However, it is worth pointing out that the scope of the amendment goes rather further than our discussion on Second Reading. In the proposed form, the report would require an assessment of all accidents involving a trailer to determine whether the tow bar may have contributed. While the contributing factors are recorded, which may allow us to discern such a link, the amendment would oblige us to assess retrospectively accidents for which the data has not already been recorded, which would be very difficult.

[Rachael Maskell (York Central) (Lab/Co-op)]

I will address this point later, but as the police gather data around the causation of accidents, is it not right that they should also record whether or not causation is related to the towing equipment of a vehicle?

[Jesse Norman]

It is certainly true that police gather information on factors that may bear on causation—of course, causation itself is a judgment rather than a fact. The case for recording such data is under active consideration, but we are concerned about the balance between the amount of potential infraction and the good that it would do by creating an additional burden in an already very full assessment process. That is precisely one of the things that would come out of the wider assessment we are doing now, and is therefore of a piece with the direction of travel of the Government. We recognise that this is an important issue: I have asked officials to consider in the safety report what data may inform further investigation, and this may cover exactly the points raised by the hon. Lady.

The vehicle defect contributory factor is a useful starting point, which is already in the report. Relevant case studies may allow us to explore within that category the question of tow bar safety. Tow bars are clearly integral elements when taking a full picture of the trailer safety situation, and it is correct that they are considered in the report, although I hope, for the reasons outlined, that the hon. Member for Bristol South will not press her amendment.

The hon. Member for York Central has tabled amendment (b) to new clause 1 to outline with greater clarity that the report will cover both commercial and non-commercial trailers. To assuage any concerns that hon. Members may have about the scope of the report, it is important to say that the current drafting covers all accidents involving trailers in Great Britain, without distinction between commercial and non-commercial usage. Those terms are not actually defined in the Bill and may be shaped by the consultation, so it would be premature to insert that requirement. There is no trailer weight category excluded from the trailer safety report, so making the amendment would not change any of the requirements on the Secretary of State set out in new clause 1. I hope the hon. Lady will not press her amendment.

Under amendment (d) to new clause 1, the Secretary of State would be required, for each year following the first report, to lay subsequent annual reports on trailer safety, compulsory registration and periodic testing. The first report will provide a valuable opportunity to consider trailer safety in depth and, as I have said, will draw on recent data recorded under existing recording systems. We also wish to consider how else we can bring in additional data or contributions from industry stakeholders, to ensure that we consider the full breadth of issues relevant to trailer safety, but at this stage I do not deem it appropriate to make a commitment to further reports without knowing the outcome of the first report. Either way, the effect of this amendment would be to place a costly requirement on the Government, which is not necessarily warranted unless the first report turns out as feared. None the less, I am happy to consider the need for further reports based on an initial assessment of the overall waterfront, which the first report is designed to do. If the report recommends further registration and testing of trailers, that will take considerable time to implement, and it is important to be aware of that. Equally, if an extension of registration and testing is not recommended, an immediate further report may well offer no additional value.

The parliamentary debate has been valuable and considered. As my noble Friend Baroness Sugg said, we have considered extensively trailer safety and what more Government can and should be doing. That underlined my commitment to undertake a report on trailer safety. The process will allow us to consider how to take this matter forward, but I hope the hon. Member for York Central will be minded to await the initial report before making further commitments as to how this issue is best addressed.

I have gone through this quite thoroughly, and I commend the amendment to the Committee.

[Rachael Maskell]

I am grateful to the Minister for the way he outlined new clause 1 and responded to the many amendments before us on trailer safety. I would like to speak to many of those amendments, and indeed an amendment to an amendment.

First of all, may I welcome the progress made in the other place by my noble Friend Lord Tunnicliffe? His contribution particularly focused on trailer safety, and it is right that we acknowledge that, as well as the contribution made by Baroness Sugg to the progress leading us to new clause 1. It is clear that we will be supportive of the new clause, because we believe it is an improvement on the substantive Bill.

In making such provision for the inclusion of more trailers, should the evidence point to more trailers needing registering to keep the public safe, regulation should be brought forward. It has been welcome to hear that the Minister will be making those considerations once the report has been put together, but in response to his speech, I want to question how he envisages building up a more robust database. He refers to, in the time period allowed, not going to the depths of all the sources that could be available for formulating such a report, so it would be good to know how he plans to proceed. My amendment (aa), which seeks to have further reporting, could be a source of addressing a more in-depth study.

We could not have been more moved by the speech made on Second Reading by my hon. Friend the Member for Bristol South. Of course, we all know of her tireless and tenacious campaigning to improve trailer safety following the tragic death of young Freddie Hussey. Just three years old, his life was taken by a trailer that was out of control—a trailer that was only 2 tonnes in weight, that lost connection and then moved forward to failure, due to the position of the handbrake on the trailer. That demonstrates how important it is that we look at the detail of trailer safety and design fault, as well as operator poor use and malfunction. I trust that in the report, we will be able to look at those fine details, because that will be informative for the Minister in determining the best mechanisms to reduce risk on our roads. Ultimately, this is what I believe new clause 1 is trying to achieve: a real understanding of the risks that are presented and the nature of the faults, and therefore what measures can be taken to improve public safety.

Other safety features could also be included—for instance, tyre safety. We certainly know that incidents—some of them tragic—have occurred as a result of the ageing of tyres, and the Minister may want to consider bringing that under regulation and going further than just trailers. We also need to make sure that the work is comprehensive, so looking at weight limits could be an important consideration. I appreciate that we are looking at commercial and non-commercial trailers; I made the point earlier that the ownership of a trailer should not make a difference to the risk. We need to ensure that that is comprehensive. It may be that the data and the evidence show that 750 kg is not the right weight limitation. We need to keep an open mind and trust the reporting of incidents when considering that.

I will ask what I believe is quite a simple question on the changing jurisdiction. The Bill sets out that reporting will be for the UK, but the new clause talks about England, Wales and Scotland. What has happened to Northern Ireland? Will the Minister consider separate data for Northern Ireland, which I appreciate will probably be under a different jurisdiction? Will he take that into account, or was the new clause a tidying-up measure to remove Northern Ireland from the data sources?

My amendment (aa) is to amendment (a) to new clause 1, which was tabled by my hon. Friend the Member for Bristol South and is incredibly important. It would provide for monitoring incidents and ensuring that we create a culture of the highest standards. While many trailers are privately constructed, it is important that they are built to the highest safety standards and subject to inspection. The Minister’s comment on the scale of this and how we can bring in inspection regimes was interesting. The offer of free tow bar checks from the leadership of the National Trailer and Towing Association, as my hon. Friend the Member for Rotherham set out on Second Reading, is certainly a progressive step that could well address the question that the Minister posed in his opening remarks.

We need to ensure that trailers, whether for heavy duty or occasional use, are up to standard, and therefore a one-off test may not address the issue. Again, my hon. Friend the Member for Rotherham gave evidence of that when talking about the corrosion of trailers. We need to understand more about the lifecycle of trailers to ensure that safety is adhered to. Amendment (a) seeks to ensure that the report considers the construction, condition and safety of all trailers.

My amendment (b) to new clause 1 considers a point that the Minister addressed in his remarks on commercial and non-commercial trailers. As I have said, the risk seems to occur across the board, but we should look at recording the distinction between commercial and non-commercial trailers, because there may be a higher propensity in the non-commercial field, for example, of the attachment of trailers to create a higher risk, because the full operation of locking down that attachment may not be as efficient as when done by people who do it every day as part of their work. We therefore need to look at the distinction across the board to identify where risk sits in the system, and gathering data on that would be invaluable.

My amendment (c) to new clause 1 looks at the reporting of road traffic accidents, which the Minister referred to earlier. I believe that the police gather comprehensive data on accidents, and directly correlating or associating those with a trailer incident will be invaluable in understanding the risks created by trailers. The amendment would be an important inclusion in the Bill. We are not asking for additional work to be done, just for inclusion in the Minister’s report. I hope that he will consider that further.

--- Later in debate ---

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

It is a pleasure to serve under your chairmanship, Mr Robertson. I will be brief. I want to put on record a tribute to the work done by the hon. Member for Bristol South. When somebody gets elected and spends a lot of time in this place, they want to be able to say that they have made a difference. After three years of campaigning, the hon. Lady has been able to include in this Bill clauses that could make the difference, and obviously in the future they might lead to further regulations and a further enhancement of road safety, which would be for the benefit of us all. I thank her for her work, and commend the Minister and Government for an unusual approach—they actually worked with the hon. Lady to get to this point and to further improve the legislation.

My one “but” would be about the tow bar amendments. We have heard some fantastic examples of the risk and the potential weak point in the system—how tow bars are fitted and the subsequent maintenance work required. Hopefully the Minister will reflect on what he has heard, particularly the statistic that there is a 91% inspection fail rate, which should cause alarm bells to ring.

I congratulate both the hon. Lady and the Minister, but the Government must still consider those other aspects.

[Jesse Norman]

I am grateful to all colleagues for the very thoughtful and intelligent contributions they have made. I will pick up on each of the issues they have raised.

Perhaps I can start with the hon. Member for Bristol South who, in many ways, is the mother of these amendments. Her point about the importance of affecting driver behaviour and driver education has also been made separately and forcibly to me by the hon. Members for Rotherham and for York Central—it is very important and well understood. In due course, there may well be a case for extending our road safety communications more widely. As the hon. Member for Bristol South will know, we are effective in many ways on road safety education, but it is important that we cover all aspects, so I am grateful to her for that comment.

The hon. Lady asked whether the trailer safety report will fall away. The answer is that it will not. That is because I hope and suspect that the Bill will be enacted—with the support of the Opposition, it certainly will be—and even if it is not enacted, the Government have made a commitment to produce a report according to the standards we have outlined.

Let me pick up on a couple of points made by the hon. Member for Rotherham. Of course, it is an offence to use a trailer on the road that is not roadworthy or that is in an unfit condition. The hon. Lady is absolutely right to highlight, as several Members have, the 91% figure found on the assessment. Without getting too philosophical—the House will know my background in this area—there is a difference between data and evidence, and small numbers of data. We need a more comprehensive view. When we have one, we can legislate if we need to with certainty. If we need to regulate, we can do so with all the comfort and assurance that we would need.

[Sarah Champion]

I completely agree with the Minister, but capturing illegal, un-roadworthy vehicles tends to happen when things go wrong. The likelihood of the police stopping someone unless one of their trailer lights are out is incredibly slender. It is more about prevention and having a register. Regular checks would enable us in most cases—something could go wrong the day after the test—to guarantee more likelihood of compliance.

[Jesse Norman]

One great benefit of the Bill is that it has brought into the foreground a set of issues. It is the beginning of a conversation and a process of reflection that the Government need to have, and it will go well beyond the Bill itself. One can imagine what the different elements of that would be. The first might be education and public awareness, the next stage might be specific intervention, and so on all the way up the tree. I would not rule any of that out—it is just a matter of understanding the basis on which we operate.

In a way, it is a cautionary tale. The hon. Member for York Central mentioned tyre safety, which is another serious issue. She will know that Frances Molloy has campaigned in a very admirable way, having had a bereavement that was just as devastating in its own way as that of Donna and Scott Hussey. The view she has taken is that all tyres over 10 years old should be banned. In fact, in answer to her original campaign, the Department set out in guidance that no tyre aged over 10 years old should be fitted to the front steering axle of a bus. The effect has been remarkable and transformative in that we have seen very little infringement. We have tried on two previous occasions to commission what we considered to be an evidentially robust means of investigation. I am pleased to say that, after several years of trying and failing, we now have a process in mind. That is an example of how one can do an awful lot in advance as part of the process of evidence-gathering—that is what we are trying to do in the context of the Bill.

[Rachael Maskell]

I concur with the Minister on the need for good inspection regimes, whether that is applied to tyre safety, tow bars or trailers. Will he therefore look at what the tow bar industry is doing with regard to the free inspections it is offering the public? Perhaps the Government should support that while looking at the wider issue of trailer safety.

[Jesse Norman]

The hon. Lady is absolutely right to raise that. At the trailer summit, I had a chance to talk to the people running the programme, but there is no doubt that we can do more.

The hon. Lady rightly mentioned a range of issues that might have a bearing on this—design fault, operator misuse or the safety of the equipment. All those factors need to be included in the comprehensive consideration I have described. I have said that we expect that to include more data and sources. The vehicle defect category may offer more scope for enlargement if we want to gather more data. She has rightly stressed having an open mind, which is very much what I bring.

We want to involve an expert consideration with stakeholders as part of our reflection. I have found that enormously helpful in other aspects of my portfolio—walking, cycling or road safety—but it is an integral part of the discussion. When we are trying to bring an amorphous body of data under control, it is important to include case studies, which we can do. I hope therefore that what we achieve will be genuinely rich and satisfying, and provide the basis for proper further consideration and, if necessary, action.

Amendment 3 agreed to.

[The Chair]

For the sake of clarity, although we have just debated new clause 1 and the various amendments tabled to that new clause, we have not yet reached a decision on those matters. That point will come when all the Bill’s clauses have been discussed, shortly before we conclude our consideration of the whole Bill. Either my co-chairman or I will call that matter for decision at that point.

Clause 13, as amended, ordered to stand part of the Bill.

Clause 14

Inspections and information

[Jesse Norman]

I beg to move amendment 4, in clause 14, page 9, line 31, leave out subsections (3) and (4).

This amendment removes provision which is replaced by NC1 and NC2.

[The Chair]

With this it will be convenient to discuss the following:

Government amendments 5 and 6.

Government new clause 2—Trailer safety: testing regulations.

[Jesse Norman]

Under amendment 4, the provisions related to testing of trailers, should that be recommended within the report, will be withdrawn to be replaced in full through an alternative approach. As with earlier amendments, amendment 4 will ensure that the intention of the amendments made in the other place may be fully delivered. New clause 2 creates powers for extending the testing of trailers. If the report so recommends, that would be achieved by amending part 2 of the Road Traffic Act 1988 to extend existing regimes to apply to all trailers weighing over 750 kg.

It is important to be clear that the original Lords amendment had the defect that it would have created a free-standing testing regime alongside existing powers in the Road Traffic Act that apply to other vehicles. That is why we adopted this approach. Under our amendments, regulations may not be made before the report on trailer safety has been laid before Parliament, so that there can be full consideration.

--- Later in debate ---

[Sarah Champion]

I have a series of questions for the Minister, rather than a speech. Could he give clarity on who is responsible for the periodic testing of trailers and the resources? Will he consider including tow bars or tow hitches in new clause 2, subsection (1), which states:

“Regulations may provide for periodic testing of the construction, condition or safety of relevant trailers”?

I have to apologise—I thought consideration of the Bill would last for four more sittings. Otherwise, I would have tabled amendments to that effect. It would be gracious of the Minister to comment on that.

[Jesse Norman]

I am very grateful to colleagues. If a testing regime is to be introduced, the Department will decide what the best way of doing that is. I anticipate that it would be done through an extension of work that has already been commissioned by the Driver and Vehicle Standards Agency and other relevant authorities.

Foreign trailers on our roads will be expected to obey the laws of Great Britain and Northern Ireland in the same way that any other trailer would. They will be subject to the applicable law. I want to be sure that I have caught the question that the hon. Member for York Central raised.

[Rachael Maskell]

I am grateful for the opportunity to respond to the Minister. We are looking not just at the trailers we produce ourselves, but at the use of trailers no matter where they come from. Depending on which jurisdiction they enter our roads from, they could carry risk. If tow bars are not fitted correctly, if the attachment is not locked down, or if the driver is driving carelessly, they pose a risk to the British public. How will the Minister respond to that?

[Jesse Norman]

I am grateful to the hon. Lady for clarifying the point. The answer is, of course, that laws will apply to those trailers just as they would to domestic trailers. However, she rightly raises a wider point. Whether there is a difference in the assessment of trailers brought in from other countries—they may be subject to different regulatory rules—could well be considered in the wider trailer safety report. The report could also consider whether EU standards, or those of other countries, are doing the job we expect them to do. Hopefully that covers all the questions.

[Sarah Champion]

Would the Minister consider adding inspection of tow bars and tow hitches as the Bill progresses?

[Jesse Norman]

I cannot take that as a formal amendment, but I will certainly give the matter consideration.

Amendment 4 agreed to.

Clause 14, as amended, ordered to stand part of the Bill.

Clauses 15 to 22 ordered to stand part of the Bill.

Schedule agreed to.

Clause 23

Regulations

Amendment made: 5, in clause 23, page 13, line 35, leave out subsection (3) and insert—

“(3) A statutory instrument containing any of the following (with or without other provision) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament—

(a) the first regulations under section 1;

(b) the first regulations under section 2;

(c) the first regulations under section 13;

(d) the first regulations under section 18;

(e) the first regulations under section (Trailer safety: testing regulations);

(f) other regulations under section (Trailer safety: testing regulations) which amend an Act.”—(Jesse Norman.)

This amendment requires the first regulations for periodic testing of trailers (see NC2), and any later regulations which amend an Act, to be subject to the affirmative procedure.

Clause 23, as amended, ordered to stand part of the Bill.

Clause 24

Extent

Amendment made: 6, in clause 24, page 14, line 8, leave out “Section 11 extends” and insert—

“Sections 11, (Trailer safety: report) and (Trailer safety: testing regulations) extend”.—(Jesse Norman.)

This amendment provides that the new clauses about trailer safety (see NC1 and NC2) extend to England and Wales and Scotland.

Clause 24, as amended, ordered to stand part of the Bill.

Clause 25

Commencement and transitional provision

[Rachael Maskell]

I beg to move amendment 11, in clause 25, page 14, line 16, at end insert—

“(1) Where as an outcome of the negotiations relating to the United Kingdom’s withdrawal from the European Union, the United Kingdom remains in the European Union’s Community Licence regime, sections 1, 2 and 3 will cease to have effect.”.

This amendment would mean that the powers set out in section 1, 2 or 3 would not be available to the Secretary of State where the UK remains in the European Union’s Community Licence Regime.

We have made excellent progress on the Bill this afternoon. In tabling this amendment, Labour was seeking assurances about what we do should we find that the legislation is not necessary. We believe that inserting a sunset clause would be a helpful way of tidying up that element of business. As we have learned from today’s debate, there are still a huge number of uncertainties about the future management of the Bill in the light of the negotiations taking place about the future, not least in relation to the community licensing scheme, which we trust that the Government will seek to be a part of as we move forward. In the light of our discussions and the greater clarity from the Minister today, we will not press the amendment to a vote. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 25 ordered to stand part of the Bill.

Clause 26

Short title