6. Debate on the Economy, Trade, and Rural Affairs Committee Report: 'A new direction for HGV Drivers — Addressing HGV drivers shortages and related supply chain Issues'

Part of the debate – in the Senedd at 4:50 pm on 23 March 2022.

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Photo of Dawn Bowden Dawn Bowden Labour 4:50, 23 March 2022

The driver shortages are, of course, compounding wider domestic and global supply chain problems, leading to widespread cost inflation and longer delivery times for a broad range of goods. At present, we believe that no particular sector of the Welsh economy faces severe risks from supply problems, but the resilience of the Welsh supply chain will remain fragile as we emerge from the winter period. We are therefore more vulnerable than usual to disruptive events, such as severe weather, the Ukrainian crisis, and industrial action at ports. There's an elevated risk of unforeseen no-notice shortages of critical commodities, with potential for wider impacts to public services and businesses. The reasons behind the shortages have been well publicised, including the retirement of UK-based HGV drivers, significant numbers of EU-based drivers returning to Europe post Brexit, IR35 tax changes affecting drivers, and, of course, as we've heard, the backlog of tests waiting to be taken due to COVID.

The Department for Transport estimated that there are between 70,000 and 90,000 vacancies for HGV drivers, and whilst, as Sam Kurtz pointed out, these shortages have been developing for a number of years, as I've already said, they have been accelerated by the effects of Brexit and the pandemic. But the industry view is that these are not Welsh specific HGV driver issues; the problem, as we know, is a UK-wide one. And whilst the majority of powers relating to these issues are reserved, including driver hours and driver licensing, including training, testing and certification, we continue to press the UK Government to do more to support the industry.

Welsh Government is doing what it can to further mitigate these issues. We continue to work closely with the industry, and we have adapted existing employability and skills programmes to expand the availability of funding for training for lorry drivers. These include the personal learning accounts and the ReAct programme. Our apprenticeship programme has a number of logistics-focused options, one being the level 2 and level 3 in driving goods vehicles. And officials are working closely with Working Wales, Careers Wales's adult guidance service, to ensure that refugees who settle in Wales can access the ReAct programme, and its successor programme, ReAct+. The programme can provide up to £1,500 towards the cost of acquiring a UK driving licence and associated qualifications, such as the driver certificate of professional competence.

Furthermore, as has been pointed out, we have committed to a new logistics and freight plan for Wales, under our Wales transport strategy, and we'll work with the UK Government, the sector, and other partners, to develop this plan and ensure that we incorporate the recommendations from the committee's report into the plan. But I will speak to my colleague the Minister for Economy on whether we can bring forward the issue of the audit of driver facilities, because that does seem to be a particularly common and pressing theme that has been raised by the committee and through the evidence taken.

Industry bodies are of course grateful for the measures that have been developed by the UK Government, but they remain of the view that short-term changes to immigration policy, alongside regulatory changes to fast-track drivers into the industry, would help to ease pressures in the near term. In the longer term, there's an opportunity to reverse the problems that have been building in the industry over many years, and to create a more sustainable and resilient sector that offers fairer pay and working conditions for drivers. The UK Government stopgap measures should not undermine this longer term aspiration.

The recruitment and retention challenges that employers of HGV drivers are facing cannot be separated from the working conditions employers provide. This is not just about pay but about drivers being treated well and with respect by employers who value them. So, there's an important leadership role for the industry here, and we encourage the industry to work constructively with trade unions to improve the offer to drivers, because better working conditions would help attract and retain drivers and make for a healthier and more resilient labour market. This would benefit employers and workers within the industry.

We believe in social partnership, and that is demonstrated by the fact that we have a social partnership Minister, who's sat here today. We want to work with the freight and haulage industry, and we do work with trade unions and have honest conversations with them about how we move beyond short-term fixes to address workforce challenges and instead create longer term and sustainable change in the experience of work. I agree wholeheartedly with Vikki Howells that it is reasonable to expect the UK Government to look at how it can increase the number of female drivers in the sector. Women make up only 2 per cent of drivers at present, and that is clearly an area where targeted recruitment could help improve that statistic.

It's clear that the industry sees improved facilities for drivers as crucial to growing recruitment, and we've talked about that already. So, the Welsh Government was disappointed to learn that the £32.5 million of new funding to improve lorry parking facilities will only be made available for England. Although these matters are reserved, we have established cross-policy groups to review the latest issues, including training and roadside conditions. We're actively working on a number of areas to address and support the sector, and this includes working on a range of mitigations and interventions with various UK Government departments, the DVSA and logistics representative bodies.

We've been working with Careers Wales to promote a range of opportunities that are available across the logistics industry in Wales and how to access HGV driving as a career. We have regular contact with the Welsh branches of the Road Haulage Association and Logistics UK to gather industry intelligence on driver shortages and feed this back to UK Government. We have extended the relaxation of curfew times for deliveries to help provide more operational flexibility.

Dirprwy Lywydd, despite the legitimate concerns about HGV shortages, there are some signs that the situation is improving. The RHA estimates that the shortfall of drivers has reduced by around 15,000 over the last six months from a previous estimate of around 100,000 vacancies. However, many industry figures believe that, despite more candidates being attracted to the sector by higher pay and the measures implemented by Government across the UK, it will still take many months if not years to fully resolve the situation. So, we will continue to work with the committee and with the UK Government to ensure that the sector is given the support that it needs to continue delivering for the whole of the UK. Diolch yn fawr.