Customs Safety and Security Procedures (EU Exit) Regulations 2020

Lord Tunnicliffe Excerpts

Thursday 10th December 2020 Grand Committee

[Lord Tunnicliffe (Lab) [V]]

My Lords, I am grateful to the Minister for introducing this latest statutory instrument from Her Majesty’s Revenue and Customs. Having dealt with the issue of imports three weeks ago, we now turn to the export of goods. As he outlined, HMRC is establishing a new power, described as a “contingency option”, to temporarily waive the requirement for pre-departure declarations if it is felt that this will lessen the disruption at the border. This power would also allow temporary change to the time limit for submission of these declarations. As with the import measures discussed previously, the potential grace period is limited to six months, which is designed to provide time for hauliers and ports to adjust to the realities of life outside the EU and beyond the transition period.

Paragraph 7.4 of the Explanatory Memorandum notes that there are potential risks to border security if these powers are used. Can the Minister explain the process that HMRC will use in relation to this contingency measure? Can he confirm whether that process has been decided? The phrasing of the Explanatory Memorandum suggests that it is in progress, but that would be surprising, given that the power will be available to Ministers in just three weeks’ time.

Given the risks involved, it is doubtful that the Government would want to extend the power beyond the envisaged six months. However, if HMRC were to decide to extend the intended sunset, would that be done by a further statutory instrument? While there may be a rationale for making it available, this unilateral power will get us only so far; it may help to limit disruption on the roads of Kent, but the problem will merely be shifted to the other side of the English Channel, where other forms will be needed for goods to move any further. This represents as much of a change to current arrangements as the need for pre-departure safety and security declarations, which have hitherto not been required under the terms of the Union customs code. It is regrettable that the haulage industry and others have not been afforded more time to prepare themselves for these new processes; it is worth remembering that such an option was on the table, only to be rejected by No. 10.

While we do not oppose this instrument, we remain deeply disappointed and troubled by the Government’s handling of the ongoing negotiations with the EU. They are now operating to a deadline of Sunday but, given the nature of the briefings last night, it is hard to be optimistic. We must therefore assume, as this SI does, that there will be no trade agreement. Let us not forget that, over three years ago, the former International Trade Secretary told the nation that the task of negotiating a comprehensive trade deal with the EU would be

“one of the easiest in human history”.

Since then, every deadline set by the Government for either a withdrawal agreement or a trade deal has been missed. Before leaving for his last-ditch dinner in Brussels yesterday, the Prime Minister pre-emptively sought to blame the EU for supposedly negotiating in bad faith. However, while the Government may not like its contents, the EU’s mandate is consistent with the political declaration signed by the Prime Minister in October last year.

The Minister is no doubt familiar with the reasonable worst-case scenario outlined in a Cabinet Office document earlier this year. A leak of that document has allowed all noble Lords to find out just how severe disruption could be in the event of no trade agreement. On exports, it warns that between 40% and 70% of trucks travelling to the EU might not be ready for new border controls; flow across the short Channel could be reduced to between 68% and 80% of normal levels; and queues on the roads of Kent could reach 7,000 trucks, equating to a two-day delay.

This is not what we were promised. At no point have the public been warned of the potential issues with imports if there is no trade deal. The document states that the flow of medicines and medical products could be reduced to between 60% and 80% of normal levels for a period of three months. Food supplies could be threatened, with low-income groups disproportionately impacted by price hikes. There is even a warning that some local areas could experience disruption in fuel supplies.

The Prime Minister promised the nation an oven-ready deal, not an outcome that prevents shops from stocking oven-ready meals. To avoid the chaos envisaged by the leaked document and this SI, it is vital that he gets his act together and secures a trade deal by Sunday.