Brexit: Negotiations and No-deal Contingency Planning

Debate between Lord Callanan and Lord Berkeley

Tuesday 4th September 2018 Lords Chamber

[Lord Callanan]

I thank my noble friend for his comments; he brings a lot of informed commentary on the subject. I am afraid that I do not think the option he set out is particularly practical. Were we able to carry on with membership of the European Economic Area, of course freedom of movement would continue, which I think would disappoint a lot of people who voted for Brexit, while the legal options are not straightforward. It would require the agreement of existing EEA countries and the ongoing agreement and co-operation of the EU, which would not necessarily be forthcoming. I know that the option has been put forward in good faith by a number of people, but I am afraid that the legal and practical difficulties would be considerable. That is why we default to our proposals, which we continue to negotiate on in good faith in Brussels and in other member state capitals.

[Lord Berkeley (Lab)]

My Lords, the Minister’s Statement today says that there will be no frontier between the island of Ireland and the mainland and no frontier between Northern Ireland and southern Ireland. It is not about time that he told us how this would work practically unless there is customs alignment between the two? I would like to hear the nuts and bolts of how it would work.

[Lord Callanan]

I can send the noble Lord a copy of our White Paper, where we have set out exactly how that can be provided through the facilitated customs arrangement and the alignment on goods. I am sure that, if he read it in full, he would see exactly how that could be delivered.

European Union (Withdrawal) Bill

Debate between Lord Callanan and Lord Berkeley

Report: 4th sitting (Hansard): House of Lords
Monday 30th April 2018 Lords Chamber

[Lord Callanan]

I thank the noble Baroness for her comments. Amendment 61, tabled by the noble Lord, Lord Bradshaw, but moved by the noble Lord, Lord Berkeley, seeks to maintain the UK’s participation in the single market if agreement is not reached in the areas of frontier controls, taxes and charges, free movement of goods and services, the digital single market, standardisation and UK involvement in European agencies. As a result of the significant progress made in negotiations, we are increasingly confident that we will secure a deal with the EU and that the prospect of leaving negotiations without a positive agreement has receded significantly.

I will say a little more about our objectives in the areas mentioned in the noble Lord’s amendment. First, on frontier controls, we have thought seriously about how our commitment to a frictionless border can best be delivered. Noble Lords will recall the Government’s clear position on this, which I touched on in my earlier remarks. On taxes and payments, the Government are committed to making cross-border trade as frictionless as possible after the UK leaves the EU and will take the necessary steps to ensure the UK economy remains strong in the future. On goods, a fundamental negotiation objective is to ensure that trade at the UK-EU border is as frictionless as possible. That means we do not want to see the introduction of any tariffs or quotas. To achieve this, we will need a comprehensive system of mutual recognition and the UK will need to make a strong commitment that its regulatory standards will remain as high as the EU’s. That commitment, in practice, will mean that UK and EU regulatory standards relating to industrial goods will remain substantially similar in the future.

As a number of noble Lords have mentioned, the UK’s services sector is a global success story. The Prime Minister has set out the Government’s objective of breaking new ground with a broader services agreement than ever before, with new barriers to trade permitted only if absolutely necessary. We want to agree an appropriate labour mobility framework that enables UK and EU businesses and self-employed professionals to travel to provide services to clients in person. We are open to discussing how to facilitate these valuable links. Given that UK qualifications are already recognised across the EU, and vice versa, it would make sense to continue to recognise each other’s qualifications in the future. An agreement that delivered these objectives would be consistent with the mutually expressed interest in an ambitious services agreement.

We have also been clear that, by virtue of leaving the single market, the UK will not be part of the EU’s digital single market strategy, which will continue to develop after our withdrawal from the EU. This is a fast-evolving, innovative sector, in which the UK is a world leader so it will be particularly important to have domestic flexibility to ensure the regulatory environment can always respond nimbly and ambitiously to new developments.

We will want to explore with the EU the terms on which the UK could remain part of EU agencies, such as those that are critical for the chemicals, medicines and aerospace industries—the European Medicines Agency, the European Chemicals Agency and the European Aviation Safety Agency. We are confident that a deep and special partnership is in the interests of both sides, so we approach these negotiations anticipating success.

In response to the comments of the noble Baroness, Lady Hayter, about Dover, Ministers have met representatives from the Port of Dover on a number of occasions, most recently on Monday 23 April. Furthermore, DExEU civil servants have an ongoing dialogue with the Port of Dover and Eurotunnel.

With that information, I hope I have provided a clear picture of the Government’s objectives for negotiating a deal with the EU in these areas and that the noble Lord will feel content to withdraw his amendment. I reiterate that I cannot give any false hope that I will reflect further on this issue between now and Third Reading, so if the noble Lord wishes to test the opinion of the House, he should do so now.

[Lord Berkeley]

My Lords, I am grateful to all noble Lords who spoke in this short debate. Apart from the Minister they all expressed concern about the state of the negotiations and where they are going. The Minister gave us a very positive view on how the negotiations were going, to such an extent that one is tempted to believe that by the time the Bill receives Royal Assent they will all be agreed. There is the slight problem that it takes two to agree. As we have heard on many occasions, it is not just the European Commission but the many other European agencies there. If the Minister is that positive and hopeful about all these agreements, it is tempting to argue that he should accept my amendment because it will not be necessary.

However, he did not say anything about the rules of origin, which the noble Lord, Lord Bilimoria, also spoke to at length—we both read the same paper at the weekend. It is a very serious issue, as he said. Without agreement on the rules of origin I do not think there will be much free movement of goods across the frontier. I do not think we will be able to agree rules of origin in a couple of months. It is a very long drawn-out issue.

I was also concerned when the Minister said that we are having nothing to do with the single market and the digital agenda. If we are outside the digital agenda, we shall have very serious problems in many sectors of trade with the European Union. I rather hope the Government will look at this again. The Minister mentioned the agencies. He did not mention the railways agency this time, but I am sure he mentioned it in previous debates.

I shall read carefully what the Minister said. I will not divide the House at this late hour because we will all fall asleep before we finish, but I know we shall come back to this. Talking to the people of Dover, the harbour board, Eurotunnel and everyone else is one thing; it is probably almost too late to make it work with the massive changes that could happen. I leave noble Lords with a thought: if you live in Kent, near Ashford, and you have continuous traffic jams of trucks on the motorway during Operation Stack, usually caused by either a strike in France or the weather, I cannot see that there will be many people voting for Brexit in Kent by the time this is all over. With that aside, I beg leave to withdraw the amendment.

European Union (Withdrawal) Bill

Debate between Lord Callanan and Lord Berkeley

Committee: 6th sitting (Hansard - continued): House of Lords
Monday 12th March 2018 Lords Chamber

[Lord Callanan]

I would be delighted to write to the noble Lord.

[Lord Berkeley]

My Lords, I am grateful to all noble Lords who have spoken in this interesting debate. It has been really well informed and I am amazed that the Government have nothing better to respond with other than answers that I think I heard six months ago. As my noble friend has said, time is running out. This is a probing amendment and I am grateful to the noble Viscount, Lord Hailsham, for suggesting that we should have gone harder, and indeed the noble Baroness, Lady Altmann, said the same thing. We have time to have discussions before Report, but it is a sad reflection for all of industry, not only the transport sector. The noble Baroness referred to the manufacturing sector and said that we are no further on. The Commission has produced papers but we just get motherhood and apple pie. I do not think I can take this any further tonight, so I beg leave to withdraw the amendment.

--- Later in debate ---

[Lord Callanan]

My Lords, I am again grateful to the noble Lord, Lord Berkeley, for bringing this important matter before the Committee. The Government are considering carefully all the potential implications arising from the UK’s exit from the EU, including the implications for the UK’s future relationship with the European Union Agency for Railways. The UK’s continued participation in the agency as a third country and its continued co-operation in the fields of rail safety and standards, as well as the implications for the UK’s technical standards regime, is, of course, a matter for the negotiations.

Our domestic railway and the cross-border services that link us with the EU serve an incredibly important function in the transport of goods and people across the UK and between the UK and the EU. In 2016, there were some 1.7 billion passenger journeys facilitated by rail in the UK, while the rail freight industry transports goods that would otherwise require 7.6 million more lorry journeys each year. Equally, the Channel Tunnel was responsible for 25% by value of all trade in goods between the UK and continental Europe in 2014, facilitating an estimated £91.4 billion of trade in total. Passenger services through the tunnel, including Eurostar and Le Shuttle, and international rail freight services, transported an estimated 20.8 million passengers and 22.5 million tonnes of goods in 2016.

As the Prime Minister made clear in her Mansion House speech last week, we want to maintain the continuity of rail services that link us with the EU, which provide important economic benefits to both the UK and the EU. However, our participation in the European Union Agency for Railways is not something that the Bill can legislate for. For decades, we have worked closely with our European partners to develop a regime in the field of rail safety and standards that reflects UK practice. We strongly believe it is in both our and the EU’s interests to ensure continued productive co-operation on safety and standards in the future, regardless of the outcome of negotiations. As I have said, this will be a matter for negotiations. In considering all relevant factors relating to the future rail safety and standards framework, the Government remain committed to our railways continuing to have the highest standards and remaining steadfastly amongst the safest in the EU.

We will continue to take on board the views of industry. The Government have a number of established mechanisms for engaging regularly with the rail sector. These include, for example, the Rail Delivery Group and the Rail Supply Group, whose members include the supply chain, passenger and freight operators, and Network Rail. As we prepare for the UK’s withdrawal from the EU, the Government will continue this engagement with a wide range of stakeholders from across the UK’s rail industry to seek views, which the UK has taken, and will continue to take, into consideration.

In the light of that, I hope I have satisfied the noble Lord that we understand the importance of maintaining the continuity of our important EU rail links, as well as maintaining a safe and effective railway. This will continue to be an important factor as we approach the negotiations. I therefore hope he feels able to withdraw his amendment.

[Lord Berkeley]

I am grateful to the Minister for that reply. It is not news to me, because, obviously, I am aware of what is going on. Could he possibly write to me quite soon about some information that I have which states that the Department for Transport is looking at which regulations from Europe could be torn up as soon as we leave? It is apparently highly confidential, which probably means that we will end up retaining a mishmash of half European and half British regulations, with a divergence which will be incredibly bad for both our manufacturing industry and operators.

[Lord Callanan]

My noble friend Lady Sugg will be happy to discuss that with the noble Lord.

[Lord Berkeley]

I am grateful to the Minister. I beg leave to withdraw the amendment.

--- Later in debate ---

[Lord Callanan]

I took on board the noble Lord’s question but I am unable to give him those reassurances at the moment.

[Lord Berkeley]

I am grateful to the Minister for his reply and to all noble Lords who have spoken in this excellent debate. The Prime Minister has made more progress here than in the logistics, customs and railway sectors. My final question to the Minister is: has the European Union agreed this? Until it is agreed, it is not a lot of good. We need to revisit this and, we hope, have regular updates. I hope the Government will push very hard for it to be a priority—as my noble friend Lord Whitty said, to have this signed, sealed and delivered at as early a stage as possible. On that basis, I beg leave to withdraw the amendment.

Railways: Capacity

Debate between Lord Callanan and Lord Berkeley

Thursday 12th October 2017 Lords Chamber

[Lord Berkeley]

To ask Her Majesty’s Government whether they intend to bring forward proposals to create extra capacity on the railways, as outlined in their 2017 manifesto; and if so, when.

[The Parliamentary Under-Secretary of State, Department for Transport (Lord Callanan)]

My Lords, we set out in July requirements for the railway from 2019 to 2024, and we announced today the statement of funds available for it, continuing our record investment in the railways. I am delighted to say that Network Rail will be investing £47.9 billion in our railways over that period. By the end of this year, we intend to publish a rail upgrade plan, which will set out the start of the process of specific rail enhancements that we are investing in. We are fully committed to HS2, northern powerhouse rail and passenger rail franchises, all of which will contribute to this Government’s continuing development and investment in new capacity across the entire network.

[Lord Berkeley (Lab)]

My Lords, I declare an interest as chairman of the Rail Freight Group. I welcome what the Minister has said today and the Secretary of State’s Statement, which refers to continuing investment in the rail freight network. However, the statement of funds available is an eight-page document, four of those pages being blank. When does the Minister intend to put a few a figures in it? I hope that the Government in doing that will provide a holistic solution and commitment to things like the northern powerhouse. We have heard in the past few months about the cancellation of certain electrification projects and then about £5 million to be spent on the digitalisation of one line in the northern powerhouse. The Government are acting as a kind of pop-up café for the railway. I hope that we will have a long-term commitment to an industry that needs long-term funding.

[Lord Callanan]

My Lords, I totally agree—I have given the noble Lord the figures for our long-term commitment for the control period from 2019 to 2024. He mentioned northern powerhouse rail. Let me tell him exactly what we are doing. We are spending £13 billion on northern transport in this Parliament, the largest sum in government history, and providing better rail journeys through the Northern and TransPennine franchises and the northern rail project. The train operators, Northern and TransPennine Express, will deliver brand new trains, including more than 500 new carriages, room for 40,000 extra passengers and more than 2,000 extra services a week. By 2020 all the trains will be brand new or completely refurbished and all Pacer trains will be gone. We are committed to northern powerhouse rail and are getting on with delivering it.

Monarch Airlines

Debate between Lord Callanan and Lord Berkeley

Monday 9th October 2017 Lords Chamber

[Lord Callanan]

I thank my noble friend for his comments. I will certainly do that. Of course, we are all happy to criticise government agencies and organisations when things go wrong—quite rightly—but in this instance we should pay credit to those who have put so much work into organising this rescue operation. I am pleased that his repatriation flight worked well. The Secretary of State visited the first repatriation flight at Manchester Airport and I visited Leeds Bradford Airport to meet repatriated passengers. I was met with almost universal praise from those people for the way that the problem had been handled and the way they had been met in foreign airports by both Foreign Office staff and government surge team staff who were sent out to assist with the efforts in over 40 airports across the continent. On this occasion, things have gone extremely well. We still have a few more days of the operation left so we should perhaps not speak too early, but so far it is looking very good and we should thank the agencies involved.

[Lord Berkeley (Lab)]

My Lords, I am sure the whole House is grateful for what the Government have done with the CAA to sort out this urgent problem. I am sure contingency plans were in preparation for many months. It happens on the railways, too, when a passenger franchise goes bust or similar. But my worry is that there is a much bigger problem sitting on the sidelines in the shape of Ryanair, which seems to have forgotten that its pilots need holidays. Enormous numbers of flights have been cancelled—probably many more than in the case of Monarch. Where it will all end up we do not know. The passengers have probably had a much more difficult time sorting out how to complete their journeys than the Monarch passengers because the CAA was well organised. Will the contingency plans that have worked so well in this case be available in the future for other potential failures, whether the airline concerned is registered in the UK or not? I hope the answer will be yes.

[Lord Callanan]

The noble Lord is tempting me to comment on the financial health of airlines but it would be wrong to do so. I think I have been robust in the conversations and exchange of correspondence I have had with Ryanair. The company’s actions and the way it treated passengers during the flight cancellations were disgraceful and it certainly misled me when I wrote to it about the cancellations. I have made that extremely clear to Mr O’Leary in writing. While it is the responsibility of the CAA, we will not hesitate to ensure that the passengers of Ryanair or any other airline get the compensation that they require and that Ryanair and other airlines fulfil their legal responsibilities to let people know the terms of the EU 261 directive. We will not hesitate to take action through the CAA to ensure that they do so.

Roads: Congestion

Debate between Lord Callanan and Lord Berkeley

Tuesday 5th September 2017 Lords Chamber

[Lord Callanan]

I thank my noble friend for her Question. She makes an important point. She is right to highlight local road congestion and its impact on the economy and productivity. I will discuss her suggestion with my honourable friend Jesse Norman, the Roads Minister, but I will give her a few related facts.

As I said, we are investing record amounts in England’s roads. Of the £23 billion that I mentioned, which we are set to spend between 2015 and 2021, £15 billion will be dedicated to the upgrade of our strategic roads and motorways and major A roads, and the rest is to improve our local roads. The spring 2017 Budget announced that the National Productivity Investment Fund will allocate £690 million for local authorities in England for local transport networks from 2018-19 onwards. Some £490 million of that is available for the financial years 2018-19 and 2019-20 and will be allocated through a competition, which has already been launched, for which we have received 145 bids so far. We will announce the winning bids later this year.

[Lord Berkeley (Lab)]

My Lords, will the Minister commit to giving the same proportion of investment to the railways to reduce congestion and improve reliability?

[Lord Callanan]

As the noble Lord is aware, we are undertaking the largest programme of investment in railways since the Victorian era, so I am proud of our record of improving the railways. Of course, there is always more to be done, but we are having a pretty good stab at it so far.

Aviation

Debate between Lord Callanan and Lord Berkeley

Monday 26th June 2017 Lords Chamber

[Lord Berkeley (Lab)]

Once the strategy is published, will the Minister quote the costs to the public purse of the surface access? My understanding is that those costs for the expansion at Heathrow will be even higher than the cost of the first phase of HS2. Would it not be better to expand our regional airports and to do less in the south-east?

[Lord Callanan]

The costs of the surface access to support the new development at Heathrow, if indeed it proceeds, will be borne by Heathrow Airport itself. Of course we also remain committed to expanding regional airports, a subject dear to my heart, and we will set out our approach in the aviation strategy White Paper that I mentioned earlier.