Exiting the EU and Transport

Baroness Chapman of Darlington Excerpts

Wednesday 23rd November 2016 Commons Chamber

[Jenny Chapman (Darlington) (Lab)]

In transport, as in virtually every other area of policy, challenges are presented by the UK’s decision to leave the European Union. My right hon. Friend the Member for Doncaster Central (Dame Rosie Winterton) did an excellent job in outlining some of the issues, notably rail freight. May I say what a pleasure it is to hear her voice ring out in the Chamber again? I am sure that her constituents, as well as all Members, welcome it.

Fascinatingly, the Transport Secretary has said that transport will be prioritised in Brexit negotiations. His comment suggests that the Government have developed a plan. If the Government have set such a priority and have decided which areas of policy concern them most, perhaps they could share the outcome of their deliberations with the House of Commons. The British people want to know.

The hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) said that the Government’s plan was an empty vessel, a point well made. He referred to the Titanic and the Mary Celeste. We must ensure that, unlike those fated vessels, the good ship Brexit sails safely into harbour, although I expect that the waters are likely to be choppy. A failure to conclude negotiations on a deal within the article 50 timetable of two years would be catastrophic for British industry. The Government do not give the impression that they accept this reality and the seriousness of this threat. Will the Minister confirm that he wants to establish a transitional agreement with the EU to prevent aviation and other industries from going over a cliff edge? My hon. Friend the Member for Liverpool, Riverside (Mrs Ellman) rightly challenged the Government to explain whether transport will be negotiated in isolation or as part of a wider deal. Not only do we not know what is going to be done, but we do not know how it is to be done either.

Aviation agreements are not covered under the scope of the World Trade Organisation, so there is no WTO deal to fall back on if a specific aviation agreement is not reached. It is vital that our regional airports, which rely heavily on overseas carriers for international routes, are fully involved in all future negotiations to ensure that the wider interests of the regions are not overlooked. Will the Minister confirm that this will happen?

On our railways, there is a danger that funding gaps will not be filled. UK rail projects receive EU funding as direct funding or as loans. Will the Government commit to match this funding penny for penny? In response to a series of interventions from my hon. Friend the Member for Blaenau Gwent (Nick Smith), we watched the Secretary of State twitching on the end of a line, and I advise him that my hon. Friend is unlikely to let this issue go. I can guarantee that the Secretary of State will not hear the end of it.

[Chris Elmore (Ogmore) (Lab/Co-op)]

On the Welsh context of what my hon. Friend the Member for Blaenau Gwent (Nick Smith) raised and also on road infrastructure, EU funding has been a huge asset for heads of the valleys roads and roads across south Wales. Does my hon. Friend the Member for Darlington (Jenny Chapman) agree that it is important that the Department for Transport secures that funding for road infrastructure so that the Welsh Government can continue to deliver those improvements for roads across the south Wales valleys?

[Jenny Chapman]

That is completely right, and I think the First Minister for Wales—my hon. Friend will correct me if I am wrong—has requested that the funding promised be matched penny for penny. Or will this cash go the same way as the £350 million a week for the NHS, and disappear like a smoke ring from one of Nigel Farage’s cigars?

Rail fares have gone up by over a quarter since the Tories came to power in 2010, which is more than twice as fast as wage growth. There is a danger that the economic consequences of Brexit will mean yet another fare hike for commuters. What are the Government prepared to do to stop fares becoming even less affordable for passengers?

I am going to give credit for this next statistic to my hon. Friend the Member for Stoke-on-Trent South (Robert Flello): over 90% of UK international trade in weight passes through UK ports. UK ports directly employ more than 25,000 people and the sector contributes more than £7 billion to the UK economy. Like every other sector, our ports need to know how the Government intend to proceed. The hon. Member for Stone (Sir William Cash) explained that the proposed port services regulations are deeply unpopular with UK ports, but it is far from clear that the UK leaving the EU will mean that our ports are not going to be subject to these regulations all the same. In fact, the UK Government’s ability to influence the regulations to suit British ports is now virtually nil. How are the Government going to protect our magnificent ports sector?

Similarly, our road haulage sector faces uncertainty as a result of Brexit, and there is no one with more passion for this issue than my hon. Friend. He challenged the Government to ensure that they are adequately staffed to support the haulage sector through the Brexit period.

I do not want to be negative about Brexit, but we are kidding ourselves by pretending that these challenges do not exist or are somehow straightforward to resolve. We need to be up front and honest with the British people about this. The Government should perhaps use these debates to inform the House, and also perhaps do so through the publication of position papers beforehand outlining the Government’s priorities. Today’s debate has been interesting, but I do not think that anyone will leave the Chamber any clearer about the Government’s position on these issues. We are not going to obstruct article 50. We have made that commitment very clear, but I suggest to the Minister that there is now a moral imperative for the Government to act in good faith and to share their priorities and plans with the British people and with this House.

[The Minister of State, Department for Exiting the European Union (Mr David Jones)]

This has been an excellent debate and I should like to express my personal thanks to all right hon. and hon. Members who have contributed to it. It is clear that everyone realises the centrality of transport to our economy, and it is therefore entirely right that the issue should be debated at length and in detail today. This has been the second in a series of debates on important issues arising in the context of the negotiations to leave the European Union that were promised by the Secretary of State for Exiting the European Union. It will help to inform our consideration of these important issues as we prepare for the negotiations.

[Jenny Chapman]

If these debates are so valuable and informative, perhaps the Minister could give the House an example of how his considerations will have been moved on by what he has heard today.

[Mr Jones]

The hon. Lady will find that out as I proceed with my response. She has to understand that at the moment we are engaged in a process of consultation with not only colleagues here in Parliament but representatives of industry and the wider civil society. Frankly, anyone sensible would expect the Government to be engaging in this sort of consultation and I make no apologies for doing so.

As the Secretary of State for Transport made clear, the Government fully recognise the central role that transport will play. Our transport links with Europe—and, indeed, the rest of the world—are crucial to this nation’s prosperity, and as we develop a new relationship with the EU we are determined to maintain efficient networks that build on the excellent connectivity that we already have around the world. This debate has certainly highlighted some of the challenges that this country faces in the process of the negotiations, but it has also highlighted opportunities. As I have said, this has been an important exercise in helping to inform our position.

I want to touch on some of the important issues that have been raised. My hon. Friend made a point about the port services regulation. As my right hon. Friend the Secretary of State pointed out, the Commission’s proposal in relation to the regulation was clearly aimed at the continental subsidised public sector landlord model and did not sit at all well with the United Kingdom’s thoroughly commercial, diverse and predominantly private sector model. In effect, the United Kingdom’s ports stood to be penalised for having led the way in liberalisation since the 1980s. Our experience shows that competition between ports drives efficiency and investment.

We have engaged successfully with the European institutions to prevent our being penalised in that way, and the near-final text of the regulation is considerably less onerous that what was first proposed. As my hon. Friend the Member for Stone said, this is a good example of how Brexit will enable us to regain control over issues that are important to the UK economy. We must also remember that we will be promoting the great repeal Bill. When enacted, it will absorb the entire corpus of EU law into the body of British law, which will enable us to review that law and repeal or amend it as appropriate. I imagine that he will regard this particular regulation as being ripe for repeal.

--- Later in debate ---

[Mr Jones]

I think the answer to that is that it depends on how quickly we complete our withdrawal from the EU and on what this Parliament decides to do. I have no doubt that the hon. Gentleman will be a strong advocate for its non-acceptance of that directive.

The hon. Member for Kilmarnock and Loudoun (Alan Brown) made a contribution relating, inter alia, to the spaceport that he hopes will be located at Prestwick. I had ambitions for north Wales, but I am sure we will both be happy wherever it is located. He also raised the issues of road freight and customs checks, both of which are certainly being taken into account by my Department and by the Department for Transport in the context of our EU exit negotiations.

The hon. Member for Stoke-on-Trent South (Robert Flello) raised the issue of the importance of logistics. I understand that he is the chairman of the all-party group on freight transport, and he has raised a number of these issues in round-table meetings that have been arranged by the Minister of State, Department for Transport, my right hon. Friend the Member for South Holland and The Deepings (Mr Hayes), who has undertaken to maintain that dialogue.

Finally, we heard a contribution from the hon. Member for North East Fife (Stephen Gethins), who spoke about the Scottish referendum.

This has been an important and valuable debate. As I say, it has helped to inform the consideration of my Department and the DFT, and we will continue to hold similar engagements both within this Parliament and with stakeholders from outside the EU. [Interruption.] I make no apologies—I hear the catcalls from Labour Front Benchers—for the fact that this Government are giving proper consideration to the process of withdrawal from the EU. I believe that this Government—

[Jenny Chapman]

rose—

[Mr Jones]

No, I will not give way. Forgive me; I am near the end of my time.

[Jenny Chapman]

There is loads of time.

[Mr Jones]

No, nevertheless. Today’s announcements have demonstrated the commitment of this Government to investing in transport in the UK to help deliver growth and economic security for the whole of the UK. This will remain the case after we leave the EU. The UK remains open for business and industry continues to invest in the UK, as demonstrated by recent announcements such as Associated British Ports’ investment of £50 million in vehicle-handling facilities at the port of Southampton. We will do our best to ensure that transport remains central to our consideration of the issues that arise in the context of our departure from the EU. Once again, I thank hon. Members for their contributions today.

Question put and agreed to.

Resolved,

That this House has considered exiting the EU and transport.