Exiting the EU and Transport

Louise Ellman Excerpts

Wednesday 23rd November 2016 Commons Chamber

[Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)]

This is a welcome and timely debate. Transport is vital to all that we do, whether it be the functioning of our economy or people engaging in a good life. It matters to everything we do, but there has been little discussion in public or in Parliament about the implications for transport of our exit from the European Union. In this short debate, I want to flag up a number of issues where there are concerns, some of which have gone unanswered. I shall also seek some further information from the Minister about how these issues are being addressed.

At the beginning of the debate, the Secretary of State made some fairly anecdotal remarks about how he was dealing with some of the issues of concern that have been raised. He referred to meetings that he has had with Ministers at conferences and said that he hoped to meet the President-elect of the USA shortly to discuss some of these issues with him. However, there is a more basic question.

Yes, there are big questions about how the negotiations might be conducted and what the Government’s objectives might be, but one key question is whether the negotiations on transport will be conducted in their own right or only as part of much wider negotiations, so that nothing agreed for transport will be finalised until there is agreement on all the issues involved in our leaving the EU. I have not heard that question properly discussed, but it is an issue of concern. Some transport issues might appear to be negotiated, but they could somehow be lost or given away as part of some bigger negotiation where other factors are under discussion. That is a fundamental issue and I would like to hear more answers from the Government about that. Providing an answer to that question is not really giving away a negotiating position; it is telling us how seriously the Government as a whole view transport issues. It might provide a guide on how far we should pursue some of the matters that have been raised today and that are likely to be raised again.

Members have talked about how different sectors of transport—road, rail, air and sea—might be affected. I shall come on to some of those later. There are also important cross-cutting matters to which very little attention has been given when it comes to Brexit. What of passengers’ rights, for example? Complex compensation packages are being negotiated in Europe, and I believe that one of them was either finalised recently or is nearing completion. It is not at all clear how that would affect British citizens. Would they be covered by those compensation packages, now or in the future? We simply do not know.

What about security matters? Reference has been made to cross-channel transport, of which security is an important aspect. How will that be affected? We have heard little about it. Environmental issues are very broad, but they certainly include transport. How will that affect us?

During the Transport Committee’s recent investigation of the Volkswagen scandal, attention was focused on vehicle type approval, the European system for assessing vehicles in terms of their environmental impact, performance and safety. Although the Volkswagen episode—the Volkswagen scandal;—I must keep using that word, because a scandal is what it was—did highlight some deficiencies in the system, it is important to recognise the importance of having a cross-European system for vehicle type approval. There might be a need to strengthen or change it in certain ways, but having it does matter. How would we be affected in that regard? Would the United Kingdom still be involved? Would we still be party to the system? Would we be partners in it, influencing what happened? Again, we simply do not know.

The question of accessibility to transport for disabled people has been raised briefly, in relation to the blue badge scheme. That scheme, which is very effective and very important here, has a European counterpart. What would happen to that? Has any thought been given to the issue, and has there been any discussion about it? There is a wider question. European directives call for proper access to buses, coaches and trains for disabled people to be implemented by 2020, and European legislation has driven improvements in their access to public transport. Will we still be involved in that, or will the United Kingdom decide that there is some get-out clause so that we do not have to continue to give proper attention to the matter? I hear little about that in the public arena.

Sometimes we are all so involved in talking about the major strategic issues—which are, of course, extremely important—that we forget about the practical issues, but they must not be lost. One way of ensuring that they are not lost in discussions about many other issues is to keep raising them in the House and, indeed, elsewhere.

A number of Members have drawn attention to the aviation sector, which in itself illustrates the importance of the possible impact on the sector of our exit from the European Union, and the importance of the sector itself. Aviation is vital to the economy as a whole, and to business and tourism specifically. In 2015, UK aviation transported 251 million passengers and contributed £1 billion a week to the UK economy, and it supports 1 million jobs. It is not just about transport, either. It is about skills, development, and a wide range of employment. It is literally a gateway to Europe and to the world. The UK currently has agreements to fly with 155 countries, 42 of which have air services agreements through our membership of the EU. That arrangement is critical. What will happen to it?

There are three broad areas of concern relating to aviation that require proper negotiation and a proper solution, rather than the uncertainty that currently hovers over the whole issue, causing great concern in the aviation sector and among the people employed in it. First, the single European aviation market allows EU registered airlines to have a base in another EU state and operate services between other member states and within them. It promotes growth and has reduced fares. It is critical. There may be an answer to what will happen to that as an alternative to our current arrangements. Are we going to consider joining the European common aviation area—we would be able to do that—or is the answer bilateral agreements? We simply do not know, and not knowing causes great uncertainty. It will affect business decisions being made by airlines now about where they want to locate. These are critical decisions about aviation and the people employed in the sector.

[Drew Hendry]

On business indecision, does the hon. Lady agree that businesses are openly saying that they are having difficulty now with their business plans and are absolutely terrified of getting no forward vision from the UK Government about how things are going to work in the future, which is impacting directly on investment?

[Mrs Ellman]

I do agree. That is a key area of discussion within the aviation sector. It is why it is so critical that this is addressed. There is great uncertainty. There might be a solution, but we need to move further on it.

The second area of concern within the aviation sector is the transatlantic aviation agreement, and particularly the EU-US open skies policy agreed in 2007. There are many aspects to that, including that EU airlines can operate to the US from any point in the EU. EU airlines can also lease aircraft to US airlines for use on international routes from the United States to any third country. That was opposed for a long time by the US authorities, but it is now agreed and it is extremely important not just for aviation itself but for this country and—I go back to the common theme of my speech—for employment in the sector and the retention of high-level skills. Will this agreement continue? The general view appears to be that it will, as it is too valuable and important to everyone for it not to continue, but again there is uncertainty. Is that being addressed?

The third aspect of concern is European airspace strategy. The use of airspace is critical and too often when we talk about aviation and runway capacity we do not think properly about airspace strategy. That matters, however; it matters in terms of efficiency and the environment. Capacity and efficiency have been added through having the single European sky. Will that continue in its current form? Will it be part of the negotiating process? Will the functional air blocks—UK and Ireland—be retained? How will this operate? It seems to be so critical that it has to carry on, but in what form, and how will the UK be involved?

I wanted to flag up those three areas of concern. They are well known—I am not saying they are being ignored—but my plea is that we need to know what progress is being made.

Ports are vital because 90% of the UK’s trade goes by sea, and the EU is the UK’s largest single trading partner. Yes, there are global markets and the maritime sector is global as well as European, but Europe is extremely important to it. It cannot be looked at in isolation. Access to the single European market is important to the maritime sector. What impact will discussions on that have on discussions about the ports and the maritime sector? How will changes in access to the single market affect shipping with Europe? Will there be new and complex tariffs? Will there be customs checks? How will transmodal movements be affected? Will there be complexity in paperwork, tariffs and customs? Nobody knows what is going to happen. Some solution has to be found as soon as possible, and the sector needs to know what is happening. We have had silence on these matters for much too long.

There are many other transport issues involved in our exit from the EU that are causing great concern. I have identified just these few issues today because they are critical to the UK’s future. They are important for our trade, for jobs and for the retention of skills, and I urge the Government to get more involved in those sectors and give us more information about what is happening. These transport issues might not be flagged up in the newspapers every day, but they matter a great deal to our economy and to the people of the UK.