Haulage Permits and Trailer Registration Bill [HL] — House of Lords, 2018-04-17
Topic: Transportation
Elizabeth Sugg (Conservative, Centre-right): My Lords, in Committee we discussed the process by which permits may be allocated to hauliers in a future permit scheme, should there be one. I am bringing forward an amendment that clarifies the Secretary of State’s powers to make regulations catering for all the different scenarios that may arise. The amendment does not change the Government’s policy on the methods that need to be available to allocate permits. Instead, in response to previous discussions, it aims to make legislation clearer on what regulations may include, while ensuring that regulations can be made specifying all the methods of selection we need to have available to us I understand that noble Lords are concerned about the use of these methods, so I will set out how we would use them and explain why they are on the face of the Bill. The Bill enables regulations to be made which provide that permits are required for a journey, if they are needed. Whether they are needed or not will depend on the agreements we negotiate. The Bill also makes regulations to make provision as to how the Secretary of State will decide whether a permit is granted. Regulations may specify criteria or other methods of selection. To ensure that the Secretary of State has the power to make regulations that cater for different approaches, the Bill provides that the methods of selection may include an element of random selection and "first come, first served" On first come, first served, our existing permit schemes are undersubscribed, so our applicants have always received what they have applied for. For example, in 2017 we issued 66 permits for Ukraine from a quota of 400; for Georgia we issued six permits from a quota of 100. This means that permits are issued on demand, and in these cases it makes sense to issue permits as we receive applications—on a first come, first served basis. In the future, where there are more permits available than are applied for, we will issue permits to all eligible applicants This drafting, with reference to "first come, first served", ensures that the Secretary of State clearly has the power to provide in regulations that permits may be allocated on that basis. This is clearly a simpler process for the Government and hauliers where the supply exceeds the demand, but it means that hauliers will not be asked for as much information and additional criteria do not need to be applied, which will keep the process as simple and quick as it can be. Moving on to random selection, the Bill enables regulations to be made that specify how the Secretary of State will decide whether a permit should be granted. That provision can include specifying criteria or other selection methods, which could include an element of random selection. If the demand for permits exceeds supply, we will look to allocate them in a way that maximises the benefits to the UK economy and that is fair and equitable to UK hauliers. We will set out this criteria in regulations and the Secretary of State will provide guidance relating to the information that applicants must provide As I said previously, we will be consulting on the criteria to be included in regulations, but these could include relevant factors such as the need for an applicant to hold a valid operator’s licence, the environmental standard of the vehicle authorised to be used by a permit, the sector the applicant operates in, or the proportion of a haulier’s business that is international. However, there might be cases where the application of criteria does not enable the Secretary of State to allocate all the permits. It is necessary, therefore, that other methods of selection should be available. As I said, the exact details of any permit scheme, if needed, are yet to be determined, so we want to ensure that the Bill enables regulations to be made that address scenarios where the application of criteria needs to be supplemented by other methods of selection I have listened to concerns noble Lords have raised that all permits will be allocated randomly and that getting a permit could be purely a matter of chance, but this is not the case. Where random selection is used, it will not be used on its own without any criteria being applied. The change of drafting to, "an element of random selection", is a constraint on the delegated power to ensure that random selection cannot be used on its own. I state again that, while we expect some of these provisions not to be necessary, in passing this legislation we must ensure that the Secretary of State has the power to make regulations that enable a range of outcomes. That is the responsible thing to do We have made explicit mention of the method of first come, first served and random selection in the Bill to make it clear that the Secretary of State has these powers. Given that there might be circumstances in which these methods are used, it is appropriate that these powers are spelled out clearly in the Bill. This will ensure that there is no doubt that these powers are available to him and will provide transparency about what may be included in regulations. We have aimed to be open about the potential use of these methods and I have sought to set out the circumstances in which we envisage that these methods may be used I recognise the concerns raised about this wording and I hope that the detail and the amendment as set out will allay some of the fears about how the powers might be used. As I said, we will be consulting on the draft regulations. Additionally, the Government have tabled an amendment that will require the first regulations made to be subject to the affirmative procedure. We will come to that later, but it will mean that noble Lords will have the ability to scrutinise the regulations and, in particular, the way in which the Secretary of State has used his power under Clause 2. As I have stated, I am confident that we will reach an agreement where all hauliers who seek a permit can get one—if, indeed, we need a permit system—but, as a responsible Government, we are preparing for all outcomes. I hope that the amendment makes the intention of the clause clearer and that noble Lords will support it. I beg to move.