Customs Safety and Security Procedures (EU Exit) Regulations 2020

Lord Moynihan Excerpts

Thursday 10th December 2020 Grand Committee

[Lord Moynihan (Con)]

My Lords, the central requirement for government in the context of customs safety and security procedures is, as the Minister said, to establish the continuity of procedures so that the economy can continue to operate effectively in the context of the end of the transition period.

This is more important than ever today. As reported earlier by the BBC, a global shipping crisis is impacting the UK severely. Understandably, many businesses are stockpiling in advance of a possible no deal. Port backlogs are driving up shipping rates. UK ports are reported to be close to broken. The surge in demand and backlog of empty shipping containers are causing bottlenecks. The impact of the three Cs—Christmas, coronavirus and customs—while businesses are still lacking in confidence about what will happen in the case of a no-deal Brexit, is growing.

Accordingly, I hope my noble friend the Minister will take this opportunity to provide the Government’s view on how this crisis can be resolved, any action the Department for Transport intends to take to remedy the situation, and what proportion, if any, of the substantial port costs will be passed on to consumers. The case of Honda is important; is it the Government’s intention to intervene, given the suspension of production at its Swindon plant? What further capacity for moving containers through ports can the Government provide? Should we look towards more expensive prices for consumers, or unsustainability for businesses where the onward price cannot be increased?

On customs procedures in the event of a no-deal Brexit, I will raise an important issue that I fully appreciate might require my noble friend, despite his lexicon of knowledge, to consult further with Defra and DCMS, although he did refer specifically to the control of the movement of live animals. In that context, can he confirm that EU law on the movement of horses and equines will continue to provide a shared framework to allow Ireland, France and the UK to ensure that, from 1 January 2021, there will be a specific arrangement for the movement of racehorses through customs posts and immigration control, as at present; in other words, will he ensure that that law will be placed on the statute book in the UK?

Will the tripartite agreement—TPA—be in place? As I understand the situation, this agreement will lapse in three weeks’ time, thereby removing the free movement of racehorses between Ireland, the UK and France, and massively impairing horseracing in this country. This would draw a curtain over Cheltenham and racing in general. Trainers would understandably not submit their highly tuned racehorses to potentially lengthy delays at the borders, which would impair the movement of horses and potentially do such significant harm that trainers would not enter them in races. Any increased certification and controls would have to be electronically managed in advance. A successor agreement to the TPA may be agreed in respect of north/south movement of horses only if Northern Ireland continues to provide the necessary guarantees on maintaining high-health status, and if the UK can continue to guarantee that all other controls are carried out, including on horses coming from Great Britain into Northern Ireland, as well as from Ireland and France into the UK.

For the movement of equine animals between the UK and the EU countries I mentioned to continue after the transition period, the UK would need to be listed by the Commission as a third country eligible to export horses to the EU, and vice versa. From 1 January, when the transition period ends, racehorses entering Great Britain from Ireland or France will, I assume, only be permitted departure and entry clearance under this and related regulations. Specific controls for movement from Great Britain to Ireland, including blood testing and residency requirements, will also apply depending on the sanitary group—the health status category—the Commission assigns to the UK and the purpose and duration of the equine movement. Will this impede the current seamless free movement of racehorses across borders, as permitted by the tripartite agreement?

This categorisation has to be clear in three weeks’ time. Equine animals moving to and through the UK will be subject to UK government customs requirements. Customs controls will also apply to equine movements between Ireland and the United Kingdom. In the circumstances, is my noble friend confident that all involved should now prepare for the seamless and unimpeded movement of racehorses between Ireland, France and the United Kingdom? Is the industry ready and prepared for racehorses moving from the UK to Ireland and France? What new documentary, identity and physical health checks will be required?

Will the border be frictionless when it comes to the movement of horses from Northern Ireland to the rest of Great Britain? Are transporters of horses on both sides of the Irish, French and UK borders compliant with the relevant authorisations and certificates, irrespective of the outcome of the current round of negotiations; in other words, can my noble friend assure me that a new TPA will be in place on 1 January 2021 come what may, without any impact on Cheltenham, Ascot, the Derby or the British horseracing calendar next year?