Haulage Permits and Trailer Registration Bill [Lords]

John Hayes Excerpts

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

[Andy McDonald]

If the right hon. Gentleman will allow me to continue, that is exactly what I am going to outline during the course of my speech.

I hope that this Bill represents the dawn of the realisation of the catastrophe that would flow from a chaotic Brexit. A few months ago the “beast from the east” left supermarket shelves across the country empty, while logistics problems forced fast food chain KFC to close hundreds of outlets because of supply shortages. These examples provide the merest glimpse of what shocks to the supply and distribution chain will look like for British consumers and businesses if the free flow of trade is not maintained following our departure from the European Union.

The Bill has serious implications for the UK’s music industry, particularly the concert haulage industry, which supports the music industry in the UK and the EU. Concert haulage operators require a community licence for road transport to the EU, which will be lost after Brexit. The Road Haulage Association says that a permit system will not work for concert hauliers, and estimates that the UK will run out of permits in 2.5 days. I have to ask: when will the Government listen to business and accept that there has to be a continuation of the current trading and transport environment, if a massive disruption of the flow of goods and produce is to be avoided?

As an island nation, ports are and will remain vital to our trading relationship with Europe and the rest of the world, so it is quite extraordinary that no Minister from the Department for Exiting the European Union has visited Britain’s most important gateway to Europe—the port of Dover. Half of the UK’s international road haulage traffic comes through Dover alone. I ask the Minister, is transport really a top priority in the Government’s Brexit negotiations?

[Mr John Hayes (South Holland and The Deepings) (Con)]

Forgive me; I did not mean to interrupt the hon. Gentleman in mid-flow, but I think that I am right in saying that the Under-Secretary of State for Exiting the European Union, my hon. Friend the Member for Fareham (Suella Braverman), visited Dover last week. I know that the hon. Gentleman is a straightforward Member of this House and would not want to mislead the House, so he will probably want to correct what he said. I say this to be helpful.

[Andy McDonald]

I am grateful to the right hon. Gentleman for making that point. I am just delighted that the hon. Lady got there eventually.

Road haulage is essential to the complex and sensitive just-in-time supply chains that underpin the UK and EU economies. Roll-on roll-off ferries face the most serious impact from a no-deal Brexit. A staggering 10,000 trucks pass through Dover each day. Almost none of these currently requires a customs clearance process. The port estimates that a two-minute delay per vehicle will generate a permanent 20-mile-long traffic jam.

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[Mr John Hayes (South Holland and The Deepings) (Con)]

The central role of good Government is to anticipate, prepare and act. In practice, of course, Governments spend a good deal of time responding to things to which they are obliged to react. Nevertheless, it is important that, as Ministers anticipate, they prepare legislation accordingly, and that is really what we are talking about today.

As I read the Bill, I could not help thinking that it is yet another piece of legislation that had its genesis during my time at the Department for Transport. We spend a great deal of time debating Bills that I had a hand in. When I was a Minister, I suppose that excessive humility meant that I did not fully accept the plaudits from the Secretary of State and the shadow Secretary of State, but now I realise just how inventive I was in the Department. It was that combination of perspicacity and imagination that led to so much legislation, including this Bill.

As has been said, the essence of the Bill is to create a framework. The first of the Bill’s two parts deals with establishing a permit system that will allow the continued movement of goods across Europe by hauliers, and the second deals with trailer registration. I do not want to go exhaustively into that—it was described very well by the Secretary of State, and others have made reference to it—but some points of amplification are worth making. I emphasise again the significance of haulage and why the measures that we are debating really matter. Both the Secretary of State and the shadow Secretary of State drew attention to the scale of the industry. It is worth something like £13.1 billion to the economy and directly employs almost 200,000 people but, of course, there are many more jobs in the logistics industry, as we like to describe it in the modern idiom. Around 2.35 million people have occupations that relate to the transit—the movement —of goods.

Through haulage, for the vast majority of goods are transported by truck, the things that we want and the things that we need—they are not necessarily the same, by the way—are brought to us, and the things that we make and sell are taken from us to other places. It is critical that the process is as seamless as possible. I note that there was mention of fresh produce. When we move things around, it is important that we do so quickly, and no more so than in the case of fresh produce. The just-in-time culture that we have created means that the lead times involved in acquiring, transporting and retailing goods are very short indeed, and were they to suffer as a result of any change, it would mean not only a considerable disruption to what we have come to expect, but significant additional costs to the haulage industry, which works on very narrow margins—typically something like 1% to 3%. I have spoken to the RHA about that, both since and while I was a Minister, and it is conscious of the need to maintain that free flow of goods not only for its own sake, but for the sake of all those it serves through the industry including, ultimately, consumers—those who buy and use the goods, and whose lives are made better by their acquisition.

It is therefore important, as the Secretary of State and the shadow Secretary of State have both emphasised, that we make the process as seamless as possible. The optimum outcome, of course, is that it be as much like it is now as possible. As the Secretary of State said, that is what he anticipates will be the product of the negotiations in which we are engaged, and his argument is compelling, because it is in our mutual interest that that is the case. It is absolutely in the mutual interest of countries across Europe that they are able to sell and buy goods as they need them.

[Andy McDonald]

Does not the right hon. Gentleman accept that while a principle of solidarity exists in an EU comprising 28 countries, once we are a third country, that principle of solidarity will obtain across 27 countries and their duty will be to each other, not the UK?

[Mr Hayes]

I understand the hon. Gentleman’s argument, but I suspect that the commercial interests of those countries and the pressure that commercial interests put on them will, in the end, be irresistible. For example, as was argued a few moments ago, farmers, growers and food manufacturers across Europe—whether in northern Europe or, as we heard, in Spain and Italy in the south—will want their goods brought here, much as they are now. I think the pressure to do a deal in our mutual interest will in the end rule the day.

Now, I do not know that, and the Secretary of State asked, very honestly, “How could I predict that?”—he would not want to, and he did not—but I think a deal in our mutual interest is the likely outcome. He called it his best guess; I would go further and call it my considered estimation.

[Mr Jim Cunningham]

The right hon. Gentleman touches on a fundamental point. Does he not agree that, if we do not get this right, it will affect costs and quality, certainly for transporters and producers?

[Mr Hayes]

That is why it is vital that the negotiations go well and why it is important to put in place this framework legislation. It is right that the Government prepare for all eventualities. In opposition, I spent half my time saying the Government were being too precise, too dogmatic, too determined to specify, and the other half saying they were being too open-minded and too flexible. The trouble with all Oppositions is that they meander between those two positions: on the one hand, they want the Government to be specific; on the other hand, they want the Government to be flexible. I slightly sense that that dilemma prevails in respect of the existing Opposition. This is a framework Bill—there is no need to apologise for that. The detail will come forward when we know the shape of the negotiations and how much of the Bill will be necessary. That is a straightforward and honourable position for any Government who want to anticipate, prepare and act.

The shadow Secretary of State made an additional important point about haulage that I also want to amplify. On skills and employment, he is entirely right that, irrespective of our relationship with the EU, there is a pressing need to recruit more people into the industry. As he was speaking, I was looking at notes on this very subject. He will know that the strategic transport apprenticeship taskforce, which has been looking at just these matters, published a report last year, off the back of its earlier consideration, and although there have been improvements across each sector of transport—road, rail, and so on, including haulage—there is still more to do, particularly to recruit people from under-represented groups in the sector.

When I was a Minister, work was being done, which I know is continuing under my successors, to encourage more people into the industry by, if you like, recasting or rebranding it—something I discussed with the RHA many times. That is vital not only on the purely numeric grounds the hon. Gentleman mentioned, but because we want people to have worthwhile careers in logistics. It is an important sector, and there are many good jobs to be had and many important skills to learn and use, so there is an efficacy in this as well as a necessity. To that end, I hope the work will continue through the apprenticeship taskforce. I gather from its report that there are 15,000 apprentices in road freight this year. I hope that that number will continue to grow. I established an education advisory group in the Department to advise on how we could cast out more widely in attracting people into the industry, and it seems to me that that work should also continue—but far be it from me to bind the hands of my successors.

[Andy McDonald]

Does the right hon. Gentleman also agree that this is not only about attracting people into the industry but about retaining them? The figures show that many young people coming into the industry do not hang around but go on to pastures new, and that requires urgent and focused attention.

[Mr Hayes]

It does require focused attention. The hon. Gentleman is absolutely right: it is about retention as well as recruitment. We must recruit from different sources, which might mean people coming back into the industry, and address the rate of attrition. We must draw on people from other sources—a good example is the armed services, where people, having learned to drive, could re-enter the private sector—and we must attract more people from minority communities, which are very sparsely represented in haulage and road freight, and more women drivers. To do that, however, we have to change some of the working conditions. That is critical to both recruitment and retention.

Madam Deputy Speaker, I hope you did not mind my digressing a little from the specifics of the Bill in order to amplify an important point that I know is keenly felt by shadow Ministers and Ministers.

[Jim Shannon (Strangford) (DUP)]

I just want to raise two points. First, might one way of attracting more young people into the business be for the Government to provide a financial incentive to companies, tied into some contract of employment, to enable us to keep people in the business? Secondly, business is changing and many married people do not want to be away for long periods, so might it be worth trying to engage with single people, and those with more free time and who do not have the same obligations at home? Those are probably two things we need to look at.

[Mr Hayes]

As the hon. Gentleman will remember, in an earlier phase of my celebrated ministerial career, when I was apprenticeships Minister—I expected at least a titter when I said that, but clearly people take it very seriously, which I am actually rather relieved about—we looked particularly at smaller businesses and their commitment to training and introduced a grant scheme for small businesses that took on apprentices. I think there is a case for looking at that again, particularly in sectors with the most pressing demand—and haulage might be one of them—but I will say no more than that, because I do not want to commit my right hon. and hon. Friends on the Front Bench to anything they do not want me to commit them to; I simply endorse his thoughts.

The Bill does two things: it provides powers that will support Britain’s hauliers to continue operating internationally after the UK leaves the EU; and it gives the Government the necessary framework to introduce new administrative systems if needed after exit. It provides the kind of flexibility I have described and, as has been said, under provisions in part 2, puts in place a trailer registration system in line with the Vienna convention, which, as you know, Madam Deputy Speaker, came to pass in 1968. It is a UN treaty designed to facilitate international road traffic and increase road safety by establishing uniform traffic rules, and has been signed and ratified by 75 countries. The Bill will allow us to apply it more comprehensively.

I do not want to delay the House any further, because I know that others want to speak—

[Edward Argar (Charnwood) (Con)]

Don’t stop! Do go on!

[Mr Hayes]

No. [Hon. Members: “Shame!”] I really feel that it is only fair to others to give them the opportunity to emulate my style and content.

Cardinal Newman—who, in my experience, is given insufficient attention during debates on road haulage—[Laughter]—said:

“Ten thousand difficulties do not make one doubt”.

Of course there will be difficulties in the process during the period following our departure from the European Union. It will be a cathartic process, and all kinds of challenges will have to be met. However, that does not of itself make an argument for not taking the right action now; it does not of itself add up to the profound doubts that some seem to have. I have confidence in the capacity, skills and determination of those in the industry, working with the Government, to continue to deliver what they currently do so well.

Let me end by mentioning an important haulier in my constituency with whom I discussed these matters this morning. That gentleman, Mr Robin Hancox, runs a business called FreshLinc. His fleet of vehicles brings fresh produce—food and flowers—from the continent to this country. He is determined that his business will continue to work post Brexit. He recognises that that will present some new challenges, but he is confident that the Government are doing the right thing in taking the necessary action to make the process as seamless as possible. I am confident too, which is why I can enthusiastically say that I not only endorse the Bill, but am willing, ready and able to support it.

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[Edward Argar (Charnwood) (Con)]

I might not be able to emulate the knowledge and experience of my right hon. Friend the Member for Scarborough and Whitby (Mr Goodwill), the eloquence, erudition and elegance of delivery of my right hon. Friend the Member for South Holland and The Deepings (Mr Hayes), or the positivity of my right hon. Friend the Member for Clwyd West (Mr Jones), but I will equally seek to avoid the pessimism of the hon. Members for Middlesbrough (Andy McDonald) and for Kilmarnock and Loudoun (Alan Brown). I will seek to address the positives of this important piece of legislation, which is, as Members have said, a sensible preparation for different Brexit eventualities and for the delivery of a smooth Brexit for the people and businesses of this country.

The Secretary of State has been absolutely clear that he expects the UK to secure a good deal, and I share his positivity on that. He is right, however, to bring forward a precautionary contingency Bill. It is the action of a responsible Government to prepare for every eventuality. Indeed, it is also the action of a responsible Secretary of State, and I pay tribute to him for that. Of course, I hope that many of the Bill’s powers prove unnecessary, but it is right that we have them, and the regulation-making powers will allow the Secretary of State to create the regulatory architecture to cater for various scenarios.

My right hon. Friend and others have been clear about the importance of the haulage sector both to our economy and to each of us in our day-to-day lives. Lorries may not always be popular, but they are hugely important in making this country function. For the sake of brevity, I will not recount the statistics referred to by many Members, but they set out just how important the sector is to our economy. Not only is contingency planning important and responsible, but the economic imperative for each of us in our daily lives and for our economy is clear. The UK played a key role, starting in 1988 and continuing through the 1990s, in driving forward the liberalisation of haulage in Europe, and it is right that we are now acting to ensure that that continues. Baroness Sugg set out clearly in the other place our country’s reliance on the industry, particularly for foodstuffs.

At present, hauliers can move freely within the EU with the Community licence, and a standard international operator’s licence is also required for that. Alongside that system runs the European Conference of Ministers of Transport multilateral quota permit scheme. While not without its uses—it is extremely useful—the ECMT quota is small by comparison with the volumes of journeys and hauliers operating within Europe. The Road Haulage Association has expressed reservations about it being too restrictive. While useful, it is unlikely to address the long-term needs of the industry and the country. On our exit from the EU, the Community licence scheme will no longer be available, hence why this Bill is necessary and important. It must not only cover non-EU agreements and any permit-based deal but provide for other eventualities.

[Mr John Hayes]

The RHA has been quoted at length and repeatedly during this debate, but it has also said that it wholeheartedly supports the Government introducing contingency measures. While it wants seamless transport of the kind that we have all spoken of, the RHA recognises my hon. Friend’s point about the Government’s wisdom in bringing forward these measures.

[Edward Argar]

My right hon. Friend is correct. The RHA has adopted a constructive, engaged and positive approach, as he will know from his dealings with it when he was a successful Transport Minister. The Bill will also provide the Secretary of State with new powers to allocate permits and to charge fees, and with enforcement powers for different offences.

The trailer registration scheme is an obligation that derives from the UK’s ratification—albeit slightly belated—of the 1968 Vienna convention on road traffic, which we had signed but never ratified and which built on the 1909, 1926 and 1949 conventions. The ratification of the convention now is part of our responsible preparation for all eventualities. I suspect the main reason why it was so important to do it now is found in paragraph 3 of article 3, which states:

“Subject to the exceptions provided for in Annex 1 to this Convention, Contracting Parties shall be bound to admit to their territories in international traffic motor vehicles and trailers which fulfil the conditions laid down in Chapter III”.

That will help to provide for the continued free flow of cars and commercial vehicles so that traffic can continue as before, allowing the UK to issue international driving permits.

In order that we can comply with the convention and secure the benefits of it, it is important that the registration of trailers is brought forward. The Department has been clear that it proposes mandatory registration for commercial trailers over 750 kg and all trailers over 3.5 tonnes used for international purposes, but not for domestic use. Such a reasonable and measured approach will ensure that caravans, horseboxes and so on are not necessarily caught by the scheme. However, I note that that is not specifically detailed on the face of the Bill, although the Minister in the other place made the point clear. The Bill also enables the Secretary of State to make regulations for such a scheme to be brought in.

On the subject safety, it is a pleasure to follow the hon. Member for Bristol South (Karin Smyth), who has done so much in this place with her “Tow Safe for Freddie” campaign, following the tragic death of Freddie Hussey. She has been passionate and determined in her pursuit of that cause, as I know some of their lordships were. I hope that the Minister, in his usual thoughtful and sensitive way, will pay due heed to what their lordships and the hon. Lady have said and will address her comments in measured, sensible tones.

I welcome this sensible piece of contingency planning by the Secretary of State—I pay tribute to him for his foresight—and the enabling framework that it provides. I suspect that there may be little actual change and that the powers may prove largely unnecessary following the negotiation of a successful deal, but it is right that we plan for all eventualities and ensure continued liberalised traffic and haulage for the future. That sensible approach reflects not only pragmatism but the Government’s clear and focused determination to secure a good deal for Britain, which is in sad contrast to the chaos and contradiction that characterise the Opposition’s policy as we deliver our exit from the EU. I again commend the Secretary of State for his foresight and sagacity, and I am pleased to support the Bill.