Part of the debate – in the Senedd at 4:55 pm on 22 January 2019.
The EU Commission has proposed a temporary solution in the event of no deal, which allows UK and EU HGVs to continue moving goods across the border on the basis of mutual recognition until the end of this calendar year. So, this is, of course, only a stay of execution. More clarity is needed about the future arrangements and the implications of permit restrictions, including what they could mean for Welsh hauliers and the ports and the businesses and individual consumers that rely on them. It’s important to emphasise here the likely large impact on food and other goods destined for Wales if there were significant disruption at Dover, which the UK Government expects in the event of a 'no deal' Brexit. Whilst the French Government has announced it will be adopting legislation to put emergency infrastructure at its ports and lighten certain customs arrangements, the details of this remain unclear. There has been no similar indication from Ireland of an intention to lighten arrangements.We continue to work with key stakeholders in the freight haulage industry to ensure we can respond to the industry’s needs in a swift and responsible manner.
Deputy Presiding Officer, turning to a matter that affects every one of us who holds a driving licence: the UK will continue to be a member of the Vienna Convention on Road Traffic after exit day, along with most member states. UK driving licences will continue to be recognised, but parties to this agreement may require holders to have an international driving permit if they are driving on the continent in future. In respect of motor insurance, EU law allows any vehicles insured in one member state to be driven in any other. However, vehicles normally based in a third country, which the UK will be after a 'no deal' Brexit, are required to obtain a valid green card. While the UK participates in this system, it will mean additional bureaucracy for drivers wanting to drive in and to the EU, who will have to carry motor insurance green cards to prove they have valid insurance. There is also a very real risk of insurance price rises. We all heard news reports from the AA that car insurance premiums have risen by an average of 2.7 per cent over the last three months as a result of Brexit uncertainty.
Finally, I want to turn to air services. The Commission has proposed regulations to continue existing direct flights between the EU and the UK for 12 months after exit day. However, this is a stop-gap measure and a bare-bones agreement. UK operators could lose the ability to operate flights to the EU on to other destinations, whether within Europe or otherwise, and will not be able to commence new routes or increase services on existing routes. This could have important and negative implications for business and leisure travellers from Wales and the UK regardless of where they travel from. It could also have profound implications for Cardiff Airport, which has seen significant growth from its connections to EU destinations. Restrictions placed on these markets at this stage could reverse recent growth, reducing financial sustainability of Wales's only international airport and removing an important gateway for Welsh passengers to international destinations.
We are, of course, pressing the UK Government to avoid this scenario. Furthermore, after the UK leaves the EU, the devolution of air passenger duty to Wales continues to be one of the most effective methods to promote the economic prospects of Cardiff Airport. So, we will continue to urge the UK Government to level the APD playing field and treat Wales in the same way as it's treated Northern Ireland and Scotland.
We'll also continue to press the UK Government to progress our current application for public service obligation approval of nine routes in and out of Cardiff, because the delay is unacceptable.
Dirprwy Lywydd, we are therefore taking all proportionate steps to preserve the integrity of our transport system in the face of a 'no deal' Brexit and to ensure the continued viability and success of our transportation system. However, we should be under no illusion that, with a 'no deal' Brexit, there would be disruption nevertheless.