Three items remain to be looked at in the event that we do not fall within a customs arrangement: one is rules of origin, ideally on the basis of a government text; another is the free movement of workers, particularly in the agricultural, fruit and vegetable-growing sector; a third is a realisation that if there are animal and food movements on the Irish border, for the reasons I rehearsed earlier, there will have to be physical checks. In these circumstances—
Lord Berkeley Portrait Lord Berkeley (Lab)
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Can the noble Baroness confirm that seed potatoes are part of the problem? If they are sown on both sides of the Irish border, they will not be able to be taken across unless they are subject to specific checks.

Baroness McIntosh of Pickering Portrait Baroness McIntosh of Pickering
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The noble Lord has the advantage over me. I was not thinking so much of potato seeds but the fact that the Secretary of State has said that we are to have higher standards of animal hygiene, animal health and animal welfare, which I welcome. That follows on from the little debate we have just had. There will have to be physical checks. There cannot be checks managed by technology, in which case potatoes and their seeds could effectively fall within that category. So the noble Lord has actually made and developed that point very neatly for me.

In the context of Amendment 47, I urge the Minister to maintain Clause 8 in the Bill and to keep an open mind as regards potential membership of the European Economic Area or applying to join the European Free Trade Association.

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At this hour, it is not necessary to go on at great length, but this seems to me a practical, sensible and helpful amendment, and I hope that the Minister will be able to show that the Government are taking very seriously the issues at stake.
Lord Berkeley Portrait Lord Berkeley
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My Lords, I support my two noble friends who have spoken to this amendment. I declare an interest as chairman of the Rail Freight Group and a member of the board of the European Rail Freight Association. They are absolutely right in the worry that these agencies will not be able to accept us after Brexit. I know the European railway agency people very well, and they would love us to stay, obviously, and would love to work with us, but of course they are forbidden from doing so by the European Commission, because that is part of the regulations. But the consequences, as my noble friends have said, are actually very serious. The manufacturing issue is not just about how we are going to take the components back and forward—it is the standards to which they are created and built and the safety certification that has to go along with it, which cannot easily after Brexit cross between us and the rest of Europe.

The issue also occurs on the railways, partly with manufactured items and partly with the operation. We do not yet know whether the train drivers that go across in the tunnel—Eurostar or rail freight—will have to have separate licences. The one good thing that the European railway agency started off doing was to try to get a common standard for red tail-lights across Europe, because each member state had its own standard, and when you got to a frontier somebody had to walk to the back of the train and change the lights. Mercifully, that is a thing of the past—but, unless all these issues are sorted out and the necessary drivers and other staff get the proper training, there will be no trains through the tunnel, and there may not be any flights, if my noble friend’s comments on the air service are correct.

We really need to get on with this. Everybody is waiting for a decision and, if we do not, we can expect to have very little traffic on the railways when we leave the EU. I do not think that the same will apply to the ferries across the channel, but we do not know. How all that affects the transport between the north and south of Ireland and across the Irish Sea, we had better leave to another day—but I hope that the Minister will have some positive response to my noble friends’ questions.

Baroness Smith of Newnham Portrait Baroness Smith of Newnham
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My Lords, we have been told frequently that this Bill is about providing legal certainty on the day that we leave the European Union. We have already heard from three noble Lords a whole range of issues that will be extremely difficult in the transport sector when we leave the EU. If we cannot stay in the European agencies, are the Government doing to do at least as much as proposed new subsection (2) suggests and establish,

“an effective equivalent within the United Kingdom”?

If we are to have legal certainly, it is not enough simply to enshrine EU law into United Kingdom law. We need to know what the standards will be on the day that we leave. This is not something that is just hypothetical; this is not about widgets—it is about how our transport system functions on the day we leave. So far, we have not had sufficient answers on this, so I hope that the Minister might be able to tell us something that goes beyond the idea that this is simply going to be about the negotiations.

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Baroness Goldie Portrait Baroness Goldie
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That was a general observation, not a specific comment; I referred to the general process of negotiations as they have been taking place.

I am grateful to the noble Lord, Lord Whitty, for raising this important issue, because it provides me with the opportunity to reassure the House about issues of transport connectivity and safety. The noble Lord has helpfully brought this before the Chamber and I shall try to provide some reassurance.

The Government are considering carefully all the potential implications arising from our exit, and that, of course, includes implications for the UK’s transport connectivity and for our future relationship with the European Union agencies. The noble Lord, Lord Whitty, rightly referred to the significant numbers of people and groups of people who rely on that connectivity. He referred to importers, exporters and tourists, and he was absolutely correct. We are committed to getting the best possible deal that we can. We are focused on securing the right arrangements for the future so that our transport industry can continue to thrive and so that passengers can have opportunities, choice and attractive prices. I say to the noble Lord, Lord Whitty, that, in particular, we want to secure continued connectivity for transport operators and users and we want to maintain the safety of international transport operations. These are obviously extremely important objectives.

We are absolutely committed to maintaining high standards of safety—another very important objective. The Bill is part of that because it allows the Government to be clear that we are committed to ensuring that exit will not jeopardise a harmonised safety system that benefits both the UK and EU networks and maintains high safety standards. We strongly believe that it is in the interests of both the UK and the EU to ensure continued productive co-operation on safety and standards in the future, regardless of the outcome of negotiations. We want to ensure a smooth and orderly transition to new arrangements, while maintaining and developing the current levels of transport connectivity between the UK and the EU.

The Government fully recognise the central role that transport will play in supporting our new trading relationships as we leave the EU—in short, transport will be essential. That is why we are committed to avoiding disrupting trade or imposing additional regulatory burdens on industry in the UK or the EU.

Specifically on the UK’s continued participation in the European Aviation Safety Agency, the European Maritime Safety Agency and the European Union Agency for Railways as a third country, I know—I accept that it is frustrating—that I will disappoint some noble Lords when I reiterate our position that participation in these agencies is a matter for the negotiations. Our participation in European Union agencies is of course something that the Bill cannot legislate for.

However, I will try to provide some comfort because, as the noble Lord, Lord Whitty, acknowledged, the Prime Minister in her Mansion House speech in March clearly confirmed the Government’s ambition to seek continued participation in the EASA system. There are provisions in EU legislation which allow non-EU countries to participate in the EASA system, as Switzerland, Norway and Iceland currently do. The Prime Minister acknowledged that an appropriate financial contribution will be necessary, and that there will be a role for the Court of Justice of the European Union. We also value information-sharing with other countries through the EMSA and the EUAR.

After our exit from the EU, we will ensure that UK agencies and operators have the tools they need to manage UK services as effectively in the future as they do now. For instance—this is probably of particular interest to the noble Lord, Lord Berkeley—Britain’s railways are among the safest in the EU, and railway safety standards will continue to be safeguarded by an independent safety regulator, the Office of Rail and Road. In fact, it is historic UK practice that the European safety framework largely reflects. We should bear that in mind. For decades we have worked closely with our European partners to develop a regime in transport safety and standards that reflects UK practice.

I make it clear—and in doing so, I hope that I may offer some comfort to the noble Lord, Lord Tunnicliffe—that, whether or not we remain part of the EU, executive agencies and EU safety regulations will be incorporated into domestic law by the European Union (Withdrawal) Bill. Importantly, this means that on exit the same safety rules will continue to apply.

Again, I thank the noble Lord, Lord Whitty, for his informed interest in this important area. I hope that I have satisfied him that we understand the importance of maintaining the continuity and safety of our vital transport links.

Lord Berkeley Portrait Lord Berkeley
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Could the Minister just explain something on the question of railway safety? The present system is that the European Union Agency for Railways can give approval for the manufacturing and bringing into operation of rolling stock in any member state, including our own. Will that continue, or will we have a separate agency and then have to get separate approval to operate in France and elsewhere? If that happens, we will go back 20 years in interoperability.

Baroness Goldie Portrait Baroness Goldie
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The noble Lord raises an important point. Again, I have to say that yes, that will be part of the negotiation process. It is all to do with what the Government seek to achieve, which I have tried to outline. However, I think the noble Lord will fully understand that I am unable to say whether this or that will happen or be possible, as it is entirely subject to what we are able to negotiate.

It is important that, as negotiations proceed, your Lordships are kept as fully informed as possible. The noble Lord, Lord Tunnicliffe, was good enough to refer to the meetings which have been taking place; he was perhaps a little dismissive of their value, but it is important that Ministers engage with your Lordships, and I and my noble friend Lady Sugg will certainly continue to do that.