Exiting the EU and Transport

Stephen Gethins Excerpts

Wednesday 23rd November 2016 Commons Chamber

[Chris Grayling]

The first thing to say is that no piece of European legislation passes through this House unscrutinised, particularly thanks to the assiduous work of my hon. Friend the Member for Stone (Sir William Cash). This is one area where the Government intend that the House has the opportunity of proper scrutiny. It is very much my hope and belief, as I have said, that our decision to leave the European Union will ensure that in respect of ports, for which our model does not conform with that of the rest of Europe, we will have the opportunity to tailor something that is right for this country.

I want to focus on two particular areas, which will be the priorities for my Department in the coming months. At the top of the list is aviation. Our aviation industry is world class, and our airports service the third largest aviation network in the world. UK airlines have seized opportunities globally, including those offered by the European open skies agreement. I am focused on securing the right arrangements for the future so that our airlines can continue to thrive and our passengers have opportunities, choice and attractive prices. When I met the aviation industry, I found that one of its priorities was and remains the effective regulation of safety and air traffic management. That is also a priority for me as we approach the negotiations.

Our connections with Europe are, of course, important, but we need to widen our horizons, too, and we need to make sure that we have continuity for the aviation industry internationally. Leaving the EU gives us more freedom to make our own aviation agreements with other countries beyond Europe, and ensuring that we have that continuity when we leave is an imperative for me and my Department.

I have already had positive discussions with my current US opposite number about the arrangements that we will need after Brexit for the vitally important transatlantic routes. There will, of course, be a new counterpart in office in America in the new year, and I intend to reprise those discussions when the new US Transportation Secretary is in post. Both sides have an interest in reaching an early agreement and I am confident that we will achieve that.

Looking the other way, last month we signed a deal with China that will more than double the number of flights that are able to operate between our two countries, thereby boosting trade and tourism. This country is open for business and open to the rest of the world, and aviation has a big role to play in making that happen. Whether through new agreements or our support for a third runway at Heathrow, I will do whatever is necessary for our industry, businesses and the public. I shall have talks with other countries, such as Canada, where there is an interest in ensuring that we have good arrangements post-Brexit. There is a job to be done to make sure that that happens, but I am in absolutely no doubt that we will secure in good time and effectively the agreements that our aviation sector needs to continue to fly around the world and within the European Union. Not doing so is in no one’s interests. Many parts of the EU depend economically on the contribution made by British airlines flying to regional airports. It is in all our interests that that continues.

[Stephen Gethins (North East Fife) (SNP)]

Given that the Secretary of State campaigned for leave, will he tell us how much preparation regarding this issue the Government of which he was a member carried out before the referendum?

[Chris Grayling]

The hon. Gentleman mentions preparation, but the objective is very straightforward. It is in the interests of the different regions and countries of the European Union that we continue to trade and to have good transport links between us. I see no logical reason for anybody to stand in the way of that. We now have to work out what the best precise arrangements will be. When it comes to aviation, however, the objective is business as usual. That is what is in everyone’s interests.

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[Chris Grayling]

Not only are we supporting the Cardiff metro plans and looking at how to deliver better services to the whole of south Wales—it cannot be just about Cardiff; it has to be about what happens to the west—but I will also be looking at whether we can provide better services to connect with the west of Wales and better services to Swansea. I hope that the hon. Gentleman will forgive me for saying it is not just about south Wales; it is also about how we deliver better services to north Wales. There is a tendency, particularly in the Administration in Cardiff, always to look to the south—there are important things happening there—but we as a Government have not forgotten that there are many different parts of Wales, and the commitment to the north is also very much in my in-tray.

Let me be clear that Brexit represents an unprecedented opportunity to shape our own future, and we will make the most of that opportunity. We will get out into the world and do business right across the globe, and at home we will continue to build a world-class transport system for this country.

[Stephen Gethins]

Will the Secretary of State tell us what meetings he has had with the European Transport Commissioner, given the importance that that relationship will have over the next little while? Will he also tell us what was discussed in those meetings?

[Chris Grayling]

I have already had one meeting with the Commissioner, when we were in Japan, and I will see her again next week at the Transport Council. We will work out the best way to take forward negotiations in due course, but we have had exploratory discussions. Those discussions have been constructive, and I look forward to having further such discussions with her.

I have to be mindful of the need to ensure that we have a structure for the future that will create stability and opportunity for our aviation and haulage sectors, and that takes advantage of the potential freedoms that leaving the European Union will offer this country’s transport sector. We fully intend to take advantage of that opportunity.

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[Ben Howlett (Bath) (Con)]

It is a pleasure to follow the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry). I am not sure if this is entirely parliamentary but, as I am following my hon. Friend the Member for Stone (Sir William Cash), we have had Bill and now we have Ben. I am not exactly sure, however, that we are in the same flowerpot right now.

I am pleased to have the opportunity to speak on the effect of leaving the European Union on our transport sector. Like many colleagues, I would have preferred to have had a debate on the effect of exiting the EU on the single market or the free movement of labour. Nevertheless, this is still an important issue for a number of residents in my constituency and in the United Kingdom as a whole. I note the irony that the House of Commons Library briefing paper on this subject suggests that

“transport post-Brexit may not look wildly different to how it looks now”.

However, given that much remains unclear as we head towards the negotiations, I would like to outline a number of priorities the Government should consider.

The European Union’s common transport policy is focused on a number of policy areas, most notably economic and social matters, environmental improvements and infrastructure investment. There has been a long-running debate on whether the benefits of European Union membership and access to a single market for transport services outweigh the relative burdens of regulation. It is my belief that the development of the common transport policy has benefited the United Kingdom by improving the health of our population and boosting economic growth, while ensuring we have the long-term infrastructure to compete in a global environment. We need to ensure that the UK continues to feel these benefits once we have left the European Union.

I would like to take this opportunity to change tack somewhat from the long conversations we have had about ports and to focus on two key areas: environmental improvements and infrastructure investment. I sympathise with the Government’s position that while Brexit negotiations are ongoing it is important not to make guarantees but, like many sectors, transport is an area that needs certainty. I am sure that we all agree about that.

First, I would like to concentrate on the environmental impact. Bath has a huge problem with air pollution. As colleagues will know, Bath is full of buildings constructed out of the famous Bath stone, which absorbs vehicle emissions. Sadly, high air pollution levels across the city mean many buildings are slowly blackening—hon. Members will be pleased to know that my home has been rendered, so it is not blackening at the moment. In some parts of Bath, air pollution levels far exceed the legal limit and cause problems to my constituents’ health and wellbeing. Of course, this is not a problem for just my constituency; it affects many constituencies of Members here today.

Ensuring that the transport system works in a way that does not have a negative impact on the environment—reducing the impact of noise, pollution, harmful emissions and greenhouse gases—is vital to the long-term health of our population. The transport sector accounts for almost a quarter of all greenhouse gas emissions in the European Union, making it the sector with the second highest level of greenhouse gas emissions, just behind the energy sector. Moreover, transport is the only sector in the EU whose emissions have risen since 1990—by a staggering 22% in total. The Transport Committee has been doing some work on this issue over a number of years.

Alongside our EU colleagues, we have committed to reducing emissions in our transport sector and meeting European emissions standards. It was the UK that pushed hardest on this very issue, so it would be a shame if Britain were to draw back now. It is crucial that such work continues after Brexit. This issue is not isolated in the UK—we share our air with the EU and the rest of the world—yet many are concerned that we will lose the collaborative approach that is critical to solving these pan-national problems when we leave the EU.

I recently visited the low-emissions vehicle research centre at the university in my constituency. Incidentally, it has benefited from £3.6 million of research funding and contracts from EU government bodies.

[Stephen Gethins]

The hon. Gentleman mentions his university, and I am extremely concerned about research funding after 2020. Will he join SNP Members in asking the Chancellor and the Transport Secretary to give greater certainty to the university sector about the post-2020 world?

[Ben Howlett]

Several of us raised that matter during our consideration in Committee of the Higher Education and Research Bill. The announcement that the last few years’ funding will continue after we leave the EU is, of course, welcome, but the university sector is very concerned, for example, about our leaving Horizon 2020, which we have been part of for many years. That would leave a huge hole in higher education funding and it is something that I hope the universities Minister will consider during the Bill’s passage through the other House.

Bath University’s prize-winning research centres are having a hugely positive impact on the measurement and understanding of air quality in not just the UK, but the EU. The Institute for Advanced Automotive Propulsion Systems, which is run and spearheaded by my university, will, I hope, receive some of the funding that the Chancellor announced earlier via the expansion of the local growth fund. This subject is obviously quite topical, given the recent Volkswagen scandal. Britain might end up with an opportunity to bring businesses such as BMW over to the UK to measure its air pollution levels, as Ford and other major international motor vehicle companies have been doing. It is important that, as we set out our position on exiting the EU, we remain committed to meeting our obligations on European emissions standards across the transport sector so that we improve the lives, and the health and wellbeing, of all our residents. I am sure the Government have that at the forefront of their mind as they consider transport policy after we leave the EU.

My second point relates to infrastructure investment. I would like to focus on the importance of maintaining adequate investment in our transport system and particularly in road, rail and aviation, many of which have already been mentioned. I welcome the Government’s commitment to completing the incredibly important HS2 project and their recent announcement on Heathrow airport expansion. Both are vital to the long-term development of our country. In 2014, the European Investment Bank provided lending of more than £6 billion to support long-term investment for a broad range of infrastructure projects across the UK, some 26% of which were in transport and the telecommunications sector, so it is an important funding source for such projects. While we have been instrumental in the creation of the trans-European transport policy and the fourth railway package, which aims to remove the remaining barriers to the creation of a single European rail area, I hope that conversations will take place as we leave the EU to ensure that Britain still has adequate train links with the EU. By removing bottlenecks, building cross-border connections and promoting integration and inter-operability between different modes of transport, we can ensure that the UK benefits from an infrastructure plan that promotes economic growth and job creation.

[Stephen Gethins]

The hon. Gentleman talks about business growth. Does he agree that, just as transport improvements benefit business, so too does continued membership of the single market? Does he support our continued membership?

[Ben Howlett]

I have said on many occasions that I support membership of the single market. How achievable that is will ultimately be for the Government to negotiate with the EU but, fundamentally, businesses—not just in my constituency, but in the devolved nations—would suffer from a reduction in access to the single market. It is the same with the customs union. One thing missing from the speech of my hon. Friend the Member for Stone was a consideration of possible cost implications and of how ports might lose out if we leave the customs union.

Now is not the time to slow down any investment in our transport sector, as we heard today from my right hon. Friend the Chancellor of the Exchequer. With finance still needed for projects in my constituency such as the A36/46 link road and the completion of the electrification of the great western main line, the Government must commit to continuing any lost investment that currently flows from our membership of the European Union.

I hope that today’s debate will give the Government an opportunity to increase transport investment across the south-west as a whole. While there was welcome news in the autumn statement, there is a real opportunity over the next few years to address the imbalance. It was disappointing that a recent Institute for Public Policy Research report concluded that the south-west had the second lowest transport investment per capita and per commuter of anywhere in England. Without wishing to give too much credibility to counter-factual history, I question whether greater investment by the EU in transport infrastructure in the south-west would have led to more residents voting to remain part of the EU.

Transport is one of the EU’s most strategic common policies, and on many occasions we have been the driver for change in this area. Following our exit from the European Union, I hope that the Government will continue to invest heavily in the transport sector while maintaining our commitments to air quality and the environment.

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[Stephen Gethins (North East Fife) (SNP)]

Having sat through this debate, it has to be said that, once again, we are not much further forward. That applies to transport as it does to every portfolio area. To be fair, it was good to hear the hon. Member for Bath (Ben Howlett) providing an all too rare progressive view from the Conservative Benches on maintaining membership of the single market. After all, that is critical for Scotland’s economy and for the UK’s economy, just as the four freedoms are critical for future success. These areas are vital for growth when this reckless gamble is putting our country at risk.

I give credit where credit is due, and it has been good to see in his place the hon. Member for Stone (Sir William Cash) standing up for his beliefs as usual. Seeing him in his place is all too rare these days, as it is for others who backed the campaign to leave. It is very much a tale of two Governments in these islands. North of the border we have had a Government making clear their plans on membership of the single market, freedom of movement and the status of European nationals who contribute so much to our economy. That compares with the continued nothing that we have seen from the United Kingdom Government.

The Secretary of State, who is not in his place—I apologise, he seems to have returned—has to bear some responsibility. He was a member of a Government who campaigned to leave the European Union, yet did absolutely no preparation for the decision that was eventually taken. That was an act of gross irresponsibility during the campaign, and it continues because he has nothing to say five months on.

I have in my hand an example of what preparation looks like—670 pages of a White Paper prepared during the independence referendum.

[Alberto Costa (South Leicestershire) (Con)]

rose—

[Stephen Gethins]

I knew the hon. Gentleman would not be able to resist.

[Alberto Costa]

Would the hon. Gentleman like to tell the Secretary of State and other Members what currency Scotland would have used had it voted for independence?

[Stephen Gethins]

Here we go! We were so well prepared that that is not just in the White Paper—I know the hon. Gentleman has read it—but we even had a fiscal commission working group. We had 670 pages of the White Paper and a fiscal commission working group setting out three options, including sharing the currency, which one Minister said that we would, of course, be able to do—[Interruption.] As my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) said, that compares to tumbleweed—absolutely nothing—from the Government.

The Secretary of State might want to take notes, because there were 15 pages on transport alone in our White Paper. As the hon. Member for Stoke-on-Trent South (Robert Flello) will be pleased to hear, it set out the areas for high-speed rail. It makes much more sense if high-speed rail goes through to Edinburgh and Glasgow, rather than just to Birmingham. The benefits of specialist transport organisations were mentioned, too.

[Ian Paisley]

How many of the 600 and more pages started with the words “could”, “maybe” or “might”?

[Stephen Gethins]

To be fair, a lot more than in the Government’s plans about the EU referendum. The hon. Gentleman makes a fair point on that, as usual. There were a lot more “coulds”, “woulds” or “maybes” than in the Government’s preparatory documents.

The hon. Member for North Antrim (Ian Paisley) will be pleased to hear that the Government must have been reading our White Paper, because there was talk about the benefits of transitional agreements. Clearly, on the basis of recent press reports of the Government’s plans, they are taking to heart ideas about transitional agreements, which have come straight from the White Paper on Scottish independence. There is also talk about working with our European partners and the EU, where it has responsibility. Of course, Government Members told us that if people voted for Scottish independence, we would not be in the European Union and that the only way to guarantee membership was to vote no. What happened there? The point is that co-operating with Europe is vital.

I am glad to see that the hon. Member for Eastleigh (Mims Davies) has returned to the Chamber. She raised the critical issues of climate change and greenhouse gas emissions. In the context of reducing greenhouse gas emissions, we have many reasons to be grateful for co-operation with our European partners. Everyone who has survived this debate so far continues to benefit from the European Union air quality directives every moment of every day. As for climate change, Scotland’s world-leading Climate Change (Scotland) Act 2009, which smashed its targets when Conservative Members said we could not achieve them, is much closer to Brussels policy than legislation in this place. We have allies and friends who take a similar view.

There is also an important point to be made about the single market. As the Member of Parliament representing, for instance, Pittenweem, Oban and Peterhead, I notice that articulated lorries from European Union countries take fine Scottish seafood to markets across the EU. Driver licensing for EU nationals is especially important in rural areas, be they in the borders, in North East Fife, in Northern Ireland or in the highlands. We want to make those people feel at home, because they contribute so much. Will that licensing continue? Will we continue to have the harmonisation that we have enjoyed?

Our geography in Scotland makes airports and air links very important to us, and I am delighted that the Scottish Government have managed to secure 23 new routes since 2014. We benefit from that, and so do other people. Who would not want to spend their holidays in North East Fife? I am sure that you would, Madam Deputy Speaker, and have done so as well. My hon. Friend the Member for Kilmarnock and Loudoun (Alan Brown) pointed out that Prestwick was nearby. Just the other day, Michael O’Leary said that the UK Government did not have a clue, and it is hard to disagree with him.

European funding for research and development has been and continues to be critical. We need to develop clean, green technologies, and Scotland is well placed for that. Currently, Horizon 2020 has a smart, green and integrated transport fund which is worth €6.5 billion. We need to start planning now for what will happen after 2020. Perhaps Ministers will provide certainty by telling us what their plans are.

It is becoming clearer and clearer that Scotland is closer to Brussels in so many policy areas. Transport is just one of them.