Haulage Permits and Trailer Registration Bill [Lords]

John Redwood Excerpts

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

[Chris Grayling]

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

[John Redwood (Wokingham) (Con)]

I congratulate my right hon. Friend on introducing a timely and good Bill to deal with all eventualities, and on so politely answering idiotic interventions that are trying to create fear where there is no need for it because, of course, goods will move smoothly with or without a deal.

[Chris Grayling]

My right hon. Friend is right. The fact that this morning, just to the east of London, I visited a £120 million investment in the future of the United Kingdom as a trading nation by a major United States-based company says that I am not alone in believing that trade will continue and flourish in the future, because it will.

There are two parts to the Bill, the first of which is all about the permits. It enables us to introduce a scheme that simply allows trucks to cross borders in a variety of scenarios—this is, basically, like a truck having its own international driving licence. In many circumstances, through a variety of international agreements, that is a necessity in order to carry goods from one nation to another. We are simply making sure that we put in place the legal framework for the Government to establish a system for issuing permits if, after we have concluded the negotiations, it proves necessary to do so. We have designed the legislation to be flexible in response to different circumstances. We do not want to place any undue regulatory or financial requirements on the industry.

Permits are a feature of almost all international road freight agreements outside free-trade areas. The UK already has several permit-based agreements with non-EU countries, including Belarus, Georgia, Kazakhstan, Morocco, Russia, Tunisia and Ukraine. The UK also has liberal, non-permit agreements with Albania and Turkey. The Bill will also cover non-EU agreements relating to permits, which means that there will be one simple, straightforward administration system that is designed to be as easy as possible for haulage firms to use.

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[Andy McDonald]

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

[John Redwood]

Will the hon. Gentleman just tell the House what additional contingencies he would make if he were the Secretary of State?

[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?

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[Mr Goodwill]

My hon. Friend has correctly identified that Labour Members are all over the place on this subject. There was no shortage of “Project Fear” in debates during the referendum campaign—people knew they were voting for something that would be very tough for this country—but, by and large, they voted because they understood the facts. I turn again to the point that Labour colleagues often make, which is that people did not know what they were voting for. Yes, they did: they were intelligent enough to understand the arguments, and to say otherwise is to insult the many people in Yorkshire and the north-east who voted to leave the European Union.

[John Redwood]

Did my right hon. Friend also notice that Labour Members’ case seems to be that the EU is so nasty and unpleasant that it would deliberately wreck its own exports to us to make a point, yet they want to be more closely aligned with people and an organisation that would do that? I just do not understand what they are talking about.

[Mr Goodwill]

As always, my right hon. Friend makes a valid point. It is not in the interests of the German motor industry, the French agriculture industry or industry right across Europe to cut off its nose to spite its face. If that were the case, I am sure that German motor manufacturers would be beating a track to Chancellor Merkel’s door to make that very point.

I have not seen one recently, but I remember following lorries down the road and reading a sticker saying, “If you’ve got it, it’s been on a truck”. Although progress has been made in switching freight to rail or short sea shipping, the last leg of any journey invariably involves a truck. We heard from the hon. Member for Middlesbrough about Dover. It had 2.6 million truck journeys last year, with 1.6 million trucks going on Le Shuttle, which is 11,500 per day. Dover represents 17% of all UK trade coming in, worth £122 billion last year.

It is not just on this side of the channel that people are making such a case; Calais chiefs have also stressed the necessity of a frictionless border. Jean-Marc Puissesseau, president and general manager of Port Boulogne Calais, has said that the port boarded 2 million lorries last year. Without an agreed system in place, we could face 30-mile queues on both sides of the channel—every day, not just when the French seamen go on strike. During such a strike, some UK motor manufacturers, and indeed BMW in Bavaria, were three days away from stopping production. As we have heard, Honda relies on 350 trucks a day on a one-hour just-in-time delivery schedule. It is in no one’s interest not to get a deal.