Hauliers

Lord Lexden Excerpts

Thursday 4th March 2021 Grand Committee

[Lord Taylor of Holbeach]

To ask Her Majesty’s Government what steps they are taking to support hauliers transporting goods internationally.

[The Deputy Chairman of Committees (Lord Lexden)]

My Lords, let us endeavour to return to the start of the debate. I call the noble Lord, Lord Taylor of Holbeach, to ask his Question .

[Lord Taylor of Holbeach (Con) [V]]

I thank the noble Lord, the Deputy Chair of Committees, for calling me. I have been here, but we were out of contact.

I thank the Minister for taking this short debate. She is rightly highly regarded and respected in this House. Much of what I say will be the responsibility of other government departments; their inter-relationship with haulage and overseas trade is complex. I look forward to her response. She will know that I have been encouraged by the digital engagement team to participate in the pilot, using this debate to demonstrate the range of knowledge which is represented by Members of this House. They have asked those working in the industry likely to be interested of their take on the debate. I will refer to some of them later.

I begin by declaring my interests in the register. Noble Lords will understand that I will draw on my horticultural experience, as the business is very much involved with trade in the Netherlands and elsewhere and in both parts of Ireland. It could be said that the situation is much improved since 10 weeks ago, when the Kent variant of Covid-19 first appeared and France unilaterally denied access to road transport. Dover ferries and the tunnel were unable to function. This ended when the Government negotiated a resumption of traffic by a Covid-testing scheme for drivers which over the Christmas holiday relieved the stack. The dress rehearsals which had been held earlier in the year for a no-deal stalemate proved their worth, and the department is to be congratulated on the smooth running of what could have been a chaotic situation.

It was also demonstrated how our overseas trading links and full supermarket shelves depend on our road hauliers. I believe a remote customs and inspection facility has been constructed to relieve pressure on Dover. Will my noble friend tell me how well it is functioning and whether other such remote facilities likely to be constructed in connection with the newly announced freeports?

There are a number of remote border control posts. There is one at FreshLinc, Spalding, and we ourselves are a place of destination. Does my noble friend have some figures on how many of these are registered? Noble Lords may be surprised that they are considered necessary. However, although we have a trade and co-operation agreement with the European Union, negotiated so ably by my noble friend Lord Frost, who will be making his maiden speech in the next debate, we are now a third country and some elements of traffic are subject to not just customs declarations but product inspections. Frictionless this is not.

I can give noble Lords a personal example. Because of our new relationship, our business is subject to UK phytosanitary certification inspection regulations, as our biosecurity has been repatriated. I welcomed these regulations when they came before the Grand Committee in December. However, they are complex and introduce a great deal of friction into trade. Noble Lords will probably not be aware of the considerable paperwork in the export and import of plants and flowers, and, for that matter, meat products. New computer programs are being designed by Defra’s Animal and Plant Health Agency. Meanwhile, we have had to use an old program. Although there is some easing of pressure, paperwork and inspections are still the order of the day.

One of the respondents to the digital team’s survey, Mike from the West Midlands, called for “Less complex requirements for customs procedures, and make it all online—less paperwork”. I agree. Can my noble friend the Minister update the Grand Committee as to when traders can expect the arrival of this updated platform, and what sort of transfer arrangements will be made for change? Is the Department for Transport in discussion with colleagues in government on the design of digital systems, with the intention of making trade as straightforward for hauliers and traders as possible? I know that two staff members at Taylor’s have been invited to meetings. Perhaps I might say that I view traders and hauliers as having the same interest in this regard. Easing friction and limiting costs is very much in everyone’s interests. The Government have done much to assist the push-pull of trade across borders with TSS—the trader support service. These are free to use but not without costs to the trader in collecting and inputting data. It is the sort of partnership which a Government supporting trade and commerce need to provide. In addition to encouraging trade support services, what other support can be put in place to support hauliers transporting goods internationally?

I mentioned previously the cost to traders of the regulating procedures involved. This becomes even more of a problem when groupage or part-loads only are involved. I was told of a nurseryman who had to pay additional costs of £250 for one trolley of plug plants from Belgium for growing on at his nursery. Parcels traffic, which used to keep retailers stocked, can be even more disproportionate; parcel companies can be excused for not providing this service for products subject to phytosanitary regulation. What efforts are the department making to reduce the friction on such businesses to markets which were freely accessible within the EU pre-Brexit, regrettably with Northern Ireland now included?

Easing friction is in everyone’s interest. I am grateful to Logistics UK, formerly the FTA, for its briefing which reinforces this maxim. I hope all noble Lords participating in this debate have received it. I have sent a copy to my noble friend the Minister. It presents a number of ideas, particularly to address the difficulties for deliveries to Northern Ireland, which are less certain following the recent decision not to develop port inspection facilities.

The grace period ends on 1 April and noble Lords will be aware of today’s news on this. Those of us in food and non-food agriculture and horticultural produce need a viable groupage provision for hauliers to offer traders. Our season top-up business to garden centres needs a parcel service. With the will, we can improve systems and structures. Logistics UK also made a similar request for advice on additional EU trade requirements from April that I endorse.

Haulage of all types has been impacted by the pandemic. How is traffic? I ask my noble friend the Minister what the latest figures are compared with the first two months of 2020? What are the Minister’s views on this? What measures in particular will help the industry recover now we have a road map?

Several correspondents to the digital engagement team of the House commented on this. Noble Lords will not be surprised that I received a number of submissions from groups representing performing arts and music about the particular challenges of touring not only in the EU, but even ATA Carnets and CITES in Northern Ireland. The hauliers involved are anxious at what they see as unworkable cost trade and cabotage restrictions.

I hope I have been able in framing this QSD to indicate the importance of the link that international haulage provides for our arts, trade and commerce. I thank noble Lords for their interest in this QSD. I look forward to the speeches that follow and to the response of my noble friend.

--- Later in debate ---

[Lord Strasburger (LD) [V]]

My Lords, a highly successful sector of the UK haulage industry specialises in transporting staging, instruments and equipment around the UK and Europe for touring musicians. There are about eight major companies in this sector and they also work for dance companies, theatre, fashion, museums, and big events businesses. These British companies are pre-eminent in their field and it is estimated that they transport 80% of British and American bands on European tours.

However, the Government’s failure to secure a cultural exemption from cabotage rules in the EU trade negotiations means that it is all going to hell in a handcart. Their trucks must now return to the UK every two gigs in a tour of perhaps 25 venues, which is not remotely feasible. They are moving their businesses into the EU, at great cost to themselves and UK plc. How did the Government allow this catastrophe to happen and what are they going to do to save the industry?

[The Deputy Chairman of Committees (Lord Lexden) (Con)]

I call the noble Lord, Lord Bhatia. No? Then I call the noble Baroness, Lady Bull.