Thursday 18th November 2021

(3 years ago)

Westminster Hall
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Kerry McCarthy Portrait Kerry McCarthy (Bristol East) (Lab)
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It is a pleasure to see you in the Chair, Dr Huq, although it is a shame that you are not contributing to the debate because I know what a music fan you are. I do not think that I have to declare my membership of the Musicians’ Union but I will, although, as I always say on such occasions, I have no musical talent whatsoever, unlike some of my colleagues who are speaking in the debate.

The fact that we are here in November 2021—well over five years since the UK voted to leave the European Union—is a damning indictment of the Government’s failure to prepare for the consequences of Brexit. I think that is, in part, political. The Government just did not want to concede that there could be negative consequences to no longer having freedom of movement and to leaving the market. I have seen that in other sectors, too—the labour shortages in food and farming, for example—and the ostrich approach of burying our head in the sand has had real consequences for the people who are affected.

That approach has included ignoring the warnings from the industry. As my right hon. and learned Friend the Member for Camberwell and Peckham (Ms Harman) said, so many people from across the industry—not just performers, but road crew, lighting engineers, truck drivers and so on—have come forward to try to tell the Government that action is needed, but there has been a refusal to host anything by way of meaningful discussions. An EU official told The Guardian in January that when the EU proposed a standard range of travel exemptions,

“the UK refused to engage in our discussions at all”.

I know there was a bit of to-ing and fro-ing and trying to blame one another for that, but according the EU sources, by June, the UK had still made no approach to remove travel barriers for creative workers.

As well as being political, I think there is an element of incompetence to the Government’s approach. Quite frankly, that is a hallmark of this Government. It is also another sign of the Government’s failure to acknowledge the importance of our creative industries. We have heard about the statistics and the pound signs attached to those industries: we are the world’s second-biggest exporter of music, with an export revenue of £2.9 billion. The value of music, as others have said, is far greater than that. We not only have some of the biggest-selling music artists in the world, but some of the best—those are not necessarily the same thing.

I remember, when I was a student in what was then Leningrad, in the summer of 1984, being besieged by young Russians who were just absolutely desperate to find out more about UK music, which was a lifeline to them and their connection to the west. I remember being asked, on the beach on the bank of the Neva river, how many children Paul McCartney had. I must admit, I did not know, and it was before the internet, but that just shows the soft power connected to our worldwide reputation for music.

We also know that the sector has been incredibly hard hit by covid, which is all the more reason why the Government should pull out all the stops to get it back on its feet. To an extent, the Government have been saved by covid, because people being unable to tour has masked the impact of Brexit on the live music sector. Now that we have, I hope, emerged from the worst of the pandemic, it is absolutely vital that the Government step up the pace on progress.

I am pleased that we have made some progress on visas, although I think it is a bit audacious for the Secretary of State to try to claim credit for that. We need agreements with the remaining six member states, and we also need bilateral discussions, because at the moment, any work is still restricted over all member states to a total of up to 90 days in any 180 days. As we have heard, there is still so much bureaucracy around that.

I will mention carnets and merchandise briefly. We have heard about the costs of taking unaccompanied instruments across borders—those costs are just for the paperwork. We know that smaller and up-and-coming bands in particular do not have lawyers, agents and managers to do all that for them; they have to deal with it themselves, and it is a real deterrent. Tim Burgess from the Charlatans tweeted earlier this week that the band was unable to sell any merchandise during its recent Dublin gig. We know that so many bands rely on merchandise to make a living because of streaming and everything else.

I will finish by talking about cabotage, as I know that that is what is expected of me as a member of the shadow Transport team. UK tour trucks made up close to 80% of the EU market prior to 2016 and Brexit. The three-stop rule for UK trucks forces them to re-route back to the UK, which is incredibly costly and time-consuming if they bother to do so, but most do not, making UK-led tours impossible. The band Public Service Broadcasting recently had to book a German bus for their European tour—something that they described as maddeningly stupid and self-harming. Big US acts have traditionally started their EU tours in the UK, so they fly into Heathrow, pick up the trucks, road crew, sound, lighting, caterers—everything—here. Why would they do that now? They are just going to go to Germany or somewhere else.

We have seen limited progress. The small splitter trucks have been ruled exempt from cabotage rules, and cabotage easement has seen inbound rules suspended on EU-flagged trucks to help the HGV crisis here, but that makes things even worse for UK music hauliers, as it is not reciprocal. UK hauliers have had no Government support to relocate to the EU either—I do not want them to relocate to the EU, but that proposal was put forward by the Government as an answer to the problems back in the earliest stage of the negotiations—so they cannot get around the restrictions that way. The music industry is part of what makes this country great. Why would we want to throw out an integral part of that, and tell it to go and set up shop in France, Germany or Portugal?

UK Music is calling for a derogation from cabotage for all trucks used for cultural events, so I conclude by asking the Minister whether there are active discussions in her Department and the Department for Transport about this issue. When I have tried to talk to the DFT, it has told me that it is a matter for her Department, but when I have tried to talk to her Department, it has told me that it is a matter for the DFT. I rather feel that that has left a big, gaping void in which there are no discussions at all.

Rupa Huq Portrait Dr Rupa Huq (in the Chair)
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I call the only person I know who had an album out last week: Kevin Brennan.

--- Later in debate ---
Julia Lopez Portrait Julia Lopez
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I appreciate the hon. Gentleman’s intervention and I also appreciate the point he made earlier about wanting to disentangle this issue, so that it is not an immigration issue; this is about the importance of our creative industries and their economic power. I am happy to explore this issue further in response to some of the points that have been made here this afternoon.

Spain is a major market for UK touring artists, and it is one of the big ones that we wanted to solve. The sector has done tremendous work in advance of the announcement. It was a good example of where we can all work together to dismantle remaining barriers.

Twenty-one EU states have now confirmed that they offer visa and work permit-free routes for musicians and creative performers. I recognise that the visa and permit situation for touring has changed since EU exit, and it requires adaptation, but it is important to recognise that those routes exist. We try to provide clarity on gov.uk, so that people understand the arrangements before they have to leave.

At present, six EU member states do not offer visa or work permit-free touring. We have lobbied and will continue to lobby those countries to allow creative professionals to tour easily. As I say, I want to use the Spain breakthrough as a moment to re-engage with those member states. Those countries would benefit from the cultural exchange and the positive financial spill-overs that touring inevitably brings. UK Music, as others have said, has found that in the UK, for every £10 spent on a ticket, £17 goes back into a local economy. Therefore, if those EU member states change their position, we believe that they will find a similar benefit. We have emphasised that point in our engagement.

Ultimately, those are decisions for those six member states, but we are using the diplomatic tools at our disposal to get a good outcome for our industry. It is important for the Government and the sector to work together in that effort. As I said, yesterday I spoke to the sector and to the touring working group, and the Secretary of State engaged earlier this week with Sir Elton John in a productive and positive meeting. As singers and performers know, combining our voices will make the greatest impact. I appreciate the help of everyone in the Chamber in making the case.

To turn to the concerns about the movement of goods and vehicles, there are new requirements, with potential costs and paperwork to do with the ATA carnet documentation, and the movement of merchandise or of instruments made from protected materials. Some of those were raised in the meeting yesterday. The new cabotage rules can limit the movement of vehicles to a maximum of three stops. As I mentioned at the start of my speech, those changes could be particularly concerning for emerging artists. We have worked across Government to provide clarity on the issues. In many cases, the arrangements are much more workable than is at times reported—that is not to diminish the concerns expressed.

For example, a UK band can pack a van with their instruments, equipment and up to nine people and travel around the EU without being subject to the TCA cabotage restrictions. They may also take their portable instruments and equipment without the need for carnets, and EU rules state that each individual is able to take up to €1,000 of merchandise into the EU to sell on tour without paying customs duties.

In cases when a carnet is required, that is a single document that can be used for multiple items as many times as required in approximately 80 countries around the world for a 12-month period. Carnets have long been a familiar feature of touring. They were needed whenever touring was taking place beyond the EU, including for example to Switzerland, so this is a case of adaptation.

Kerry McCarthy Portrait Kerry McCarthy
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Will the Minister clarify? When she says that there is one carnet, but everything has to be listed, my understanding is that with a drum kit, someone cannot just say, “Drum kit”, but must specify every different cymbal and drum. Is that the case? Even though it is all on one piece of paper, that could still amount to a huge amount of bureaucracy.

Julia Lopez Portrait Julia Lopez
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I appreciate the hon. Lady’s point and I am happy to take it away. I am fairly new to this area, so with some DFT issues I will not be able to give clarity on all the details. I am happy to write to her.

I have also been listening to the music sector’s concerns about the possible designation of St Pancras as a port designated under CITES—the convention on international trade in endangered species—for artists carrying instruments made of protected materials. The number of CITES ports in the UK has already increased from 24 to 36 over the past year, and the Department for Environment, Food and Rural Affairs and Border Force are working together to look at the possibility of St Pancras being added to that list. I am keen to accelerate that.

The Government have engaged with the sector’s concerns about the restrictions to do with cabotage and cross-trade that apply to single-use trucks, issuing a call for evidence on options in the summer. It is worth reiterating that during negotiations for the TCA, we proposed specific market access rights for specialist hauliers carrying out tours for cultural events, but the EU did not agree. To help artists navigate such issues, we have developed creative sector-specific landing pages on gov.uk to signpost relevant guidance. We continue to work across the board to encourage updates to guidance and to ensure that rules are clear and accessible.

The UK’s cultural and creative industries are an integral part of our economy across the UK, and they play a huge role in a truly global Britain. That point was made by a number of hon. Members today. We continue to support our creative industries through a range of export support programmes, including the music export growth scheme. We also recently launched the export support service, where UK businesses can get answers to practical questions about exporting to Europe. In our meeting yesterday, a Department for International Trade official highlighted some of the new services available to musicians. These are all with a view to strengthening the international reach and reputation of our creatives, and the benefits they bring to our economy, culture and society. I will continue to work with Departments, the creative industries trade and investment board, and sector representatives, such as UK Music, to see what more can be done to help the industries adapt to these new arrangements with the EU.

To conclude, leaving the EU has led to a number of changes. We recognise the uncertainty and concerns felt by our musicians and the creative sectors, and my Department and the Government as a whole have worked very hard to support them. Across issues relating to the movement of people, goods and vehicles, we have engaged extensively with the sector to understand and grip those concerns and help people adapt. Like hon. Members, I want to see UK creatives tour and perform in the EU not just for our musicians but because they have so much to offer people in member states, and I hope we can make sure that can happen.