Draft Common Rules for Access to the International Market for Coach and Bus Services (amendment etc.) (EU Exit) Regulations 2019

Rachael Maskell Excerpts

Monday 25th March 2019 General Committees

[Rachael Maskell (York Central) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Sir Christopher. These regulations seek to establish common rules for access to the international market for coach and bus operators from the EU, so that they can operate in the UK and continue to function in a similar way after the proposed, and changing, exit day, and to minimise any potential disruption to services for passengers in a no-deal scenario. Of the 1.6 million annual coach journeys to the UK, 83% are from the EU, so there are widespread implications.

For reciprocal arrangements, it is expected that the Interbus agreement will be brought into force, and I wonder whether the Minister could update the Committee on the position, including the expected date of implementation. I heard her mention the beginning of the month, but she did not say which month. Given an exit day of no earlier than 12 April, it would be helpful to know whether that meant the beginning of April or a later date.

In the light of the importance of the regulations, it is astounding that the Government have left them until fewer than four days before the date when the UK was due to leave the European Union. That could have had a serious impact on the coach and bus sector and the tourist sector, and it shows just how ill prepared the Government are for leaving the European Union. The regulations establish the conditions—whether for regular, scheduled coach services or occasional, non-scheduled services such as holiday and tour services between the UK and EU—for the international carriage of passengers by coach and bus within the EU, and for cabotage arrangements. They also cover the licensing arrangements within the EU, if we move out of the Community licence arrangements.

The regulations would move powers from the European Union to the Secretary of State for Transport and the Northern Ireland Department of the Environment, to enable coach and bus operators from the EU who were in the Community licence scheme to operate in the UK as they do now. I note that EU operators who wish to obtain a new authorisation for a regular scheduled coach service to the UK will in future need to apply for new authorisation from the appropriate authority in the UK, instead of in their home member state. If a new operator were to apply from 30 March—the relevant date might now be 13 April—assuming that the UK had left the EU, would the UK be ready to issue a new licence? How much is already in place for the transition? What would happen to cabotage arrangements?

Will the Minister explain how licensing will differ for current European economic area operators? Those issues are particularly acute for Ireland, north and south, where there is a gap between leaving the EU and the coming into force of the Interbus agreement. That is my understanding, although I have asked for clarity. Why is that the case when there are 900,000 journeys across the border? What risk has the Minister uncovered, through having such a gap, and how will she address that?

With the transfer of powers from the EU to the International Road Freight Office, should the UK leave the EU, how much additional work will be created? How many operators are expected to require licensing, in the light of a no-deal scenario, by 12 April, and what will the cost be? I note that in proceedings on previous regulations, various Ministers have stated that costs would be minimal, but an accumulation of many minimal costs soon adds up. What is the total cost?

For those who hold a personal service vehicle operator’s licence and those who are part of the EU Community licence regime, no friction must be built into the transition of powers. Can the Minister assure operators of that?

In the light of the crisis that we face as a nation, the regulations are critical in reducing risk to coach and bus companies. Labour will therefore not oppose them this evening.

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[Ms Ghani]

I thank hon. Members for their consideration of the regulations. Let me turn to some of the points made. Apologies for having been a little remiss; the proposal comes into play on 1 April. The UK will have completed formal accession to the Interbus agreement by the end of March, and it comes in on the first Monday after that, which is 1 April. My apologies for not mentioning that earlier. Engagement is ongoing with the Interbus depository to ensure alignment between the end of the formal accession period for Interbus and the short extension to article 50.

The other question was about cabotage and Northern Ireland. Under the agreement, cabotage can continue between the Republic of Ireland and Northern Ireland. Should we leave with no deal, we will continue to work with the European Commission and the Republic of Ireland to ensure that any long-term transport arrangements between the UK and the EU take into account the unique transport demands on the island of Ireland.

There was also some conversation about the impact that the agreement has on the sector, and potentially on the cost. I place on record the fact that my officials have been working with the Confederation of Passenger Transport, which is the main industry representative body, and the Federation of Passenger Transport Northern Ireland, to ensure that stakeholder consultation has taken place, and to understand the impact of this statutory instrument. All stakeholders support the UK’s decision to join the Interbus agreement independently. Any costs are noted as minimal, and any certification or passporting to allow this business to continue tends to be over a five-year period; the authorisations last for five years. Work has taken place to see how much work that would involve going forward.

[Rachael Maskell]

Could the Minister give some clarity on the impact on EEA countries? What will happen to their operations?

[Ms Ghani]

The Interbus agreement works with countries beyond the EU. There are another six countries that it is working with. My officials are working closely with them to put in place bilateral agreements to allow processes and practices that are in place to continue.

I thank the hon. Member for Glasgow South West for his question about passenger rights. We have worked to ensure that passenger rights will be as they are today; we are taking on board any part of EU legislation that we can adopt into UK legislation. As maritime Minister as well, I must say that we have gone above and beyond what is expected; we are working to international guidelines, not just EU guidelines, in this area.

I believe that the Committee is in agreement that these are serious regulations that we need to take forward to ensure that tourism, which is incredibly important business between the UK and the EU, can continue. I hope that hon. Members will support this instrument, so that we can ensure international coach travel access, and particularly regular services, to the UK for EU bus and coach operators, in much the same manner as before, in the interest of passengers. That is the reason why they will be supporting these regulations, which I commend to the Committee.

Question put and agreed to.