DfT and industry prepare for ‘worst-case’ Brexit

The government is progressing new laws through Parliament which it says will allow UK truck operators to continue to run vehicles throughout Europe after Brexit in the event that withdrawal negotiations fail to preserve their current freedom of movement – while truck and coach fleets and their drivers have been warned by the European Commission (EC) of the possible impact of Brexit on their continental operations.

The Department for Transport (DfT) has acknowledged the possibility that permits will be required for the international carriage of goods in Europe post-Brexit, with the introduction of its Haulage Permits & Trailer Registration Bill.

The bill puts in place arrangements that would enable a permit scheme to operate in order to allow UK hauliers to continue to provide services to and from EU countries, “if required as part of a deal with the EU” – although it is highly likely that such a scheme would be imposed on the UK in the event of a no-deal scenario.

Permits for cross-border operations are already required by some EU states in existing arrangements with so-called ‘third countries’ (non-member states).

The new legislation also establishes a scheme which will require UK trailers working internationally to be registered, to ensure they can operate across the EU after Brexit. The government says it intends to ratify the 1968 Vienna Convention on Road Traffic in order to enable the registration scheme.

“Our road haulage industry is right at the heart of the £110 billion of trade that takes place between the UK and EU every year,” said the transport secretary Chris Grayling.

“We believe reaching an agreement to continue the liberal access enjoyed by both sides is in everyone’s interests, and remain confident we will do so.

“But I also understand that hauliers are planning for the years ahead and want to have certainty that any future deal can be implemented smoothly – so this bill ensures we have plans in place if the deal requires a permitting system.”

The Road Haulage Association (RHA) said it supported the measures as a ‘contingency’, but called upon the government to work to agree a deal with the EU that would not necessitate permits.

RHA chief executive Richard Burnett said it was important that the free-flow of goods to the rest of Europe was maintained.

“It is therefore essential that the arrangements we have at present be continued.

“[This] is an enabling bill to instigate a contingency to cover a negotiated settlement involving permits, or the worst-case scenario – that we get no deal.”

But he added that: “we need to see clear government commitment that it will seek an agreement that does not impose new permits, quotas or limits on UK international operators.

“The road freight industry needs clarity as soon as possible as regards what is being negotiated… We want to see a system where licensed UK and EU operators can undertake international road haulage to, from, and through the UK and EU without any additional burden or cost.”

The RHA has already laid out detailed proposals for a ‘Land Transport Agreement’ between the UK and EU that would allow unlimited cross-border operation to continue after Brexit unimpeded by additional bureaucracy, modelled on an arrangement that currently exists between the EU and Switzerland.

The RHA said that the transport secretary was “supportive” of its ambitions during a recent meeting, and that further legislation would be shortly forthcoming to deal with Brexit issues impacting on road transport.

Readers can view the RHA proposals here.

James Hookham, deputy chief executive of the Freight Transport Association (FTA), said his association also supported the contingency measure, but that it was “one that exporting and importing businesses hope never has to be used”.

“We also support the government’s objective of ensuring that no limits are set on the number of goods vehicles crossing between the EU and UK after Brexit, to ensure that Britain and its European neighbours can maintain an effective trading relationship,” he added.

Mr Hookham also responded last month to suggestions by the deputy mayor of Calais, Philippe Mignonet, that the introduction of border checks at the port after Brexit could result in 15-mile-long traffic queues – a prospect which the FTA said should be “a wake-up call” for both sides in the Brexit negotiations.

“”FTA has been warning for some time of the potential risks of the introduction of border checks at Dover,” said James Hookham.

“Now we can see there are similar concerns about gridlock on the French side of the border… FTA has written to the prime minister setting out the key objectives the UK must now place at the forefront of negotiations, in order to allow exporters and importers to continue working and avoid a catastrophic breakdown in this country’s trade with the EU…

“Now is the time for political speculation and idealism to end.  We need clear decisions taken urgently, to keep Britain trading through the expected consequences of a tough Brexit.”

Meanwhile, the EC has released a ‘Notice to Stakeholders’ entitled Withdrawal of the United Kingdom and EU rules in the field of road transport – which sets out the consequences for the transport sector of the UK becoming a ‘third country’ after Brexit, should no special arrangement be agreed.

The notice sought to remind fleet operators, subject to any transition deal that has yet to be reached with the EU, of the “legal repercussions” of Brexit – among which are changes which would impact certificate of professional competence (CPC) holders, whether drivers or transport managers.

The EU pointed out that those engaged in the occupation of road transport operator in the EU, and transport managers employed by such an operator, are required to hold a CPC “issued by the authorities of an EU Member state or by bodies duly authorised”.

“As of the withdrawal date, certificates of professional competence issued by an authority of the United Kingdom or a body authorised by the UK will no longer be valid in the EU-27,” it said.

Likewise, a Driver CPC qualification issued by the UK or an approved British training centre will no longer be valid in the EU after withdrawal, the EC warned.

Currently, drivers who are nationals of ‘third countries’ need to obtain their initial Driver CPC qualification in the EU member state which issued them a work permit – and it seems this will be the case for the UK should the free movement of workers end after withdrawal.

As of the withdrawal date, said the EC, drivers who are nationals of the UK but employed by a transport undertaking established in the EU – or EU nationals resident in the UK but employed by an undertaking established in the EU – “will have to follow the professional drivers training in the EU-27 member state where the undertaking employing them is established.”

In addition, ‘third country’ nationals engaged in international carriage are currently required to hold a ‘driver attestation’, issued by the authorities of the member state in which the haulier is established. This could also therefore apply to British drivers working for EU operators after withdrawal.

There will additionally be consequences as regards access to the free market for those fleets with international O-licences. As of withdrawal, the community licence which is currently required to carry goods across borders in the EU will “no longer be valid in the EU-27”, the commission warned.

“Hauliers established in the United Kingdom will no longer have access to the internal road haulage market in the Union.”

The international carriage of passengers by coach and bus will be similarly affected.

Road transport businesses operating in the EU must also have “an effective and stable establishment in an EU member state”, the EC pointed out – meaning that after withdrawal, undertakings with their establishment in the UK will no longer fulfil this requirement.

It is likewise the case that transport managers are required to be resident in the EU, meaning that a UK-resident transport manager working for an EU operator will no longer be allowed.

It is worth reiterating that all of the above is subject to the UK government failing to reach agreements to the contrary with the EU during Brexit negotiations – and that the current rules are likely to remain in force during any transitional period.

But the potential consequences for fleet operators, transport managers and drivers engaged in continental haulage are significant – and a major transport training provider has drafted a template letter which UK operators can send to their MPs, urging them to bring the issues to the government’s attention.

Essex-based Novadata said that the EU statements on operator licences suggested that UK-based operators may have to consider setting up operating centres in another EU-27 country to enable them to continue operating as before – but with a transport manager whose CPC was not acquired in the UK.

As regards the Driver CPC, Novadata warned that if the EU stopped recognising UK-issued qualifications, the UK could adopt a ‘tit-for-tat’ approach, which could mean drivers having to undertake the DCPC both in the UK and within the remainder of the EU.

In an open letter to UK transport operators, Novadata advised them to begin to plan ahead for the training of drivers and managers both in the UK and within the EU, in case of an impasse in successful negotiations.

“It is essential that all companies for whom international road transport is an integral part of their business begin to lobby their MP and bring pressure to bear on the government to ensure that the road transport industry is safeguarded when Brexit becomes a reality,” said Mark Lewin, training development manager at Novadata.

“If the consequences of a hard Brexit are as outlined in the EU document, operators will need to ensure that their drivers and managers complete both UK and EU Driver CPC and hold both a UK and EU Management CPC qualification. They will also need to ensure that drivers apply for and hold international driving permits.

“In case this worst scenario happens, we would urge operators to start making plans to ensure that their drivers, managers and entire organisations hold the correct documentation before March 2019.”