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Select committee inquiry

Department for Transport's implementation of Brexit inquiry

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Public Accounts Committee · Opened 12 October 2018 · Closed 12 October 2018

1 recommendation · 21 conclusions
Inquiry on parliament.uk ↗

What the inquiry looked at

“Report: Department for Transport's implementation for Brexit Report: Department for Transport's implementation for Brexit (PDF 256KB) Government response (PDF 799KB) Leaving the EU could have a significant impact on transport between the UK and EU, potentially affecting rail and road connectivity, air space governance, and environmental targets linked to transport. A recent report by the National Audit Office (NAO) found that the Department for Transport’s programme of work to support Brexit represents a large and complex challenge. It is estimated that by March 2020, up to £180 million will be spent by the Department and its associated agencies on Brexit. To maintain and develop the current levels of transport connectivity between the UK and the EU, the Department has set up 18 work streams (out of 314 streams in total) tasked with delivering Brexit and reporting its progress on to the Department for Exiting the European Union. The NAO’s report notes that although significant effort has been put into helping the Government’s negotiation, the timeframe needed to introduce the required legislation is seriously compressed. Additionally, between 100,000 and 7 million International Driving Permits (IDPs) will need to be issued annually by the Post Office in the event of no deal being reached with the EU. No business case and no detailed delivery plans, however, have been made. The Committee will question the Department for Transport on the effectiveness of the 18 work streams, its level of preparedness in case of a no deal scenario, and the money it has spent on contingency preparations. Members may also wish to hear an update about HS2 Ltd’s land and property acquisition programme, given that concerns were raised about this with the NAO both by individuals and businesses.”

The committee's words, from the inquiry page on parliament.uk ↗.

What it found

In the committee's words, from the summary of 70th Report - Department for Transport's implementation of Brexit ↗

There is a real risk that the Department for Transport (the Department) will not be ready in the event of the UK departing the EU without a negotiated deal, and this risk is increasing as time runs out to deliver what is needed. This is our latest report in a series looking at Government’s preparations for Brexit. And, as in our previous reports on border preparations, customs, Defra and BEIS, we are concerned about how well Government is prepared. There is a real prospect of major disruption at our ports. The slow progress and poor communication around work to avoid this through schemes such as Project Brock concerns us. The lack of detailed information provided to businesses to help them prepare and the secrecy surrounding discussions through the use of non-disclosure agreements is hampering businesses’ ability to plan. Added to this is the Department’s uphill task to pass the necessary legislation in time, the majority of which the Department sees as essential, whilst allowing time for proper scrutiny of this.

With only months to go, it is extremely worrying that we are seeing these same concerns again and again with little progress being made. Even if a deal is agreed, the Department faces a challenging workload during the proposed transition period. We acknowledge the difficult situation for the Department in having to prepare for all Brexit scenarios. But it must be open about the challenges it faces and work with businesses and stakeholders to help them get ready for whatever the future brings.

What the government said

No government response is linked to this report.

Read the report ↗ Report an error

How the inquiry ran

Each dot is a dated item listed on this page, from the inquiry's opening on 12 October 2018 to 14 February 2019.

  1. Oral evidence 24 Oct 2018
  2. Report 28 Nov 2018
  3. Correspondence 7 letters

What it recommended 1 recommendation · 21 conclusions

1There is a significant and growing risk that the Department will not be ready if...
Concluded (the committee's words)
There is a significant and growing risk that the Department will not be ready if the UK exits the EU without a deal. The Department tells us that there is little, if any, contingency left to cope with slippage amongst the 28 internal projects it has underway. The Department is dependent upon decisions being taken elsewhere in government and on the state of discussions with other countries to progress some of its plans. Projects such as the issue of permits to international drivers and road hauliers are however within its control. The Department has several IT systems related to these projects to develop and deliver within the next few weeks and months, and IT systems are notoriously difficult for government to deliver on time. The Department also acknowledges that air services and international rail travel are areas where discussions with other countries are at a very early stage.
2Recommendation: The Department should write to the Committee before Christmas 2018 to set out progress...
Concluded (the committee's words)
Recommendation: The Department should write to the Committee before Christmas 2018 to set out progress achieved against its 28 projects, and which projects remain at greatest risk.
3The Department’s preparations for avoiding disruption around major ports are worryingly under-developed.
Concluded (the committee's words)
The Department’s preparations for avoiding disruption around major ports are worryingly under-developed. The Department will manage traffic and lorry- queuing at Dover through ‘Project Brock’. The Department has plans to do some desk-based testing around its operation of Project Brock, although it has yet to carry it out. The Department seems happy to rely on Highways England to manage engagement with local stakeholders, but acknowledges this has not always worked well so far. The Department does not liaise directly with other English ports and their related local authorities, which it informs us is the responsibility of the Ministry of Housing, Communities and Local Government. The Department has begun in- depth discussions with the Welsh Government, but not the Scottish Government.
4Recommendation: The Department should write to the Committee before Christmas 2018 setting out the results...
Concluded (the committee's words)
Recommendation: The Department should write to the Committee before Christmas 2018 setting out the results of any testing of Project Brock, and how wider plans to keep ports across the UK open for business have progressed.
5There is a danger that the required legislation will neither be subject to proper scrutiny,...
Concluded (the committee's words)
There is a danger that the required legislation will neither be subject to proper scrutiny, nor passed in time for EU exit. The Department’s figures on how many SIs need to be passed by Parliament before the end of March 2019 (currently 66) are changing regularly and may change further. It had laid 19 of these 66 before Parliament by 24 October. The Department says that around half of its SIs will require debate, but that it is looking at ways to reduce this to speed up progress. We are concerned that there is a risk that the scope for Parliamentary scrutiny could be reduced for the sake of administrative convenience. The Department regards 61 as essential to be delivered before the end of March 2019, but could not explain what would happen if they weren’t laid in time. We identified the same issues with the volume of legislation required in such a short space of time in our recent report on preparedness for EU exit at the Department for Environment, Food and Rural Affairs.
6Recommendation: As recommended in our recent report on Defra’s preparations, The Cabinet Office should prioritise...
Concluded (the committee's words)
Recommendation: As recommended in our recent report on Defra’s preparations, The Cabinet Office should prioritise EU statutory instruments across government 6 Department for Transport’s implementation of Brexit to ensure the drafting of those of highest priority is completed to the proper quality standard, and that there is time for proper parliamentary scrutiny ahead of EU Exit.
7The Department’s approach to its preparations appears complacent.
Concluded (the committee's words)
The Department’s approach to its preparations appears complacent. The Department told us that it was happy with progress on four of the projects where we probed further on progress (maritime databases, International Driving Permits (IDPs), the trailer registration scheme and road haulage permits), but its answers were short on detail and suggested a heavy reliance on assurance from officials in its arms-length bodies, such as Highways England with regard to Project Brock. We were left concerned that the Department remains prone to the optimism bias that we have witnessed on other projects overseen by this Department.
8Recommendation: The Department should make sure that it receives regular independent assurance on the progress...
Recommended (the committee's words)
Recommendation: The Department should make sure that it receives regular independent assurance on the progress of key projects. As part of its update to the Committee, the Department should set out how it is drawing on independent assurance that progress is being made, and the action it has taken as a result.
9Too much consultation with business organisations has taken place under the cloak of non-disclosure agreements,...
Concluded (the committee's words)
Too much consultation with business organisations has taken place under the cloak of non-disclosure agreements, and this secrecy hampers the ability of the business community at large to prepare. The Department acknowledges that key industries are seeking information to be able to develop their own contingency plans, such as the potential need for road hauliers to vary their routes or point of entry to Europe. Businesses may have to change the way they register trailers or apply for road haulage permits. Yet it appears that in making its preparations, the Department has had limited engagement with the business community at large, either in developing or testing plans. The Department’s engagement with the transport industry in developing technical notices has been covered by non- disclosure agreements and the Department is unable to inform us of their scope. We see these agreements as undermining transparency and hampering the spread of information to the business community at large. Again, we raised this concern in our recent report on preparedness for EU exit at the Department for Environment, Food and Rural Affairs.
10Recommendation: As we recommended in our recent report on Defra’s preparations, the Department needs to...
Concluded (the committee's words)
Recommendation: As we recommended in our recent report on Defra’s preparations, the Department needs to limit the use of non-disclosure agreements to commercially sensitive discussions. It should urgently step up its communications with businesses and other stakeholders on what they need to do to prepare.
11The Department’s continuing caution in its public communication about EU Exit means the public and...
Concluded (the committee's words)
The Department’s continuing caution in its public communication about EU Exit means the public and businesses cannot prepare adequately if there is no deal. The Department acknowledges that communication needs to improve, as we have seen from examples such as the concerns caused by Highways England’s work on the M26. While some actions may only be needed in the event of ‘no deal’, time is running short and we expect that groups, such as people planning to drive in the EU after March 2019, should be made aware that action will be needed soon, even if it is not yet clear what that action will be. The Department emphasises the role of third parties in disseminating information (for example, hire companies or Post Office staff issuing International Driving Permits), but has not provided detail on how it is co-ordinating this work. Department for Transport’s implementation of Brexit 7
12Recommendation: The Department should write to the Committee before Christmas 2018 setting out the progress...
Concluded (the committee's words)
Recommendation: The Department should write to the Committee before Christmas 2018 setting out the progress made against its plans for providing the public and businesses with the information they need. 8 Department for Transport’s implementation of Brexit 1 Progress on work streams and projects
13The Department told us it has prioritised its SIs in terms of how critical they...
Concluded (the committee's words)
The Department told us it has prioritised its SIs in terms of how critical they are to deliver by 29 March 2019. Of the 66 the Department says it currently has, it told us that there are only 11 where it can manage the risk of them happening after EU exit.31 The Department did not provide us with any additional detail on how it was planning its programme of SIs to ensure the 55 would be laid in time, or what would happen if any of them were not. In subsequent written evidence, the Department told us that 32 SIs were “a high priority” and that all except 5 needed to be delivered by 29 March 2019, but did not explain why these figures had changed from those provided in the session.32 The Department told us that it was more advanced in laying SIs than other departments, having already laid 21 of the 66 it required.33 The Department recognised that its SIs represented only a fraction of those needing to be laid across government as a whole, but it did not explain how its prioritisation of SIs has affected laying plans within the Department or across government.34 23 Qq 135–7 24 Q 129 25 C&AG’s report, paragraph 14 26 Oral evidence: The progress of the UK’s negotiations on EU withdrawal, HC 372, 17 October 2018, Q2883 27 Qq 210–211 28 Letter from Permanent Secretary of Department for Transport to Chair of Committee of Public Accounts: Update on EU exit preparedness 5 November 2018 29 Qq 203–205, 212 30 Committee of Public Accounts. Exiting the European Union: progress at the Department for Environment, Food & Rural Affairs, Session 2017–19, HC 1514, 14 November 2018 31 Q 202 32 Letter from Permanent Secretary of Department for Transport to Chair of Committee of Public Accounts: Update on EU exit preparedness 5 November 2018 33 Letter from Permanent Secretary of Department for Transport to Chair of Committee of Public Accounts: Update on EU exit preparedness 5 November 2018 34 Qq 200–201 Department for Transport’s implementation of Brexit 11 Departmental progress reporting
14The Department provided us with a more detailed update on four key projects which had...
Concluded (the committee's words)
The Department provided us with a more detailed update on four key projects which had been covered in detail in the NAO report. These were: maritime databases; International Driving Permits; the trailer registration scheme; and road haulage permits.35 In its written evidence to us in advance of the session, the Department described all four projects as having progressed since the NAO’s report.36 However, its responses in the session itself exposed how much work there was still to do: • International Driving Permits–the Department told us that training for Post Office staff and printing of documents had not yet begun. Communication with the public was also not yet underway.37 • Trailer registration–the Department told us it had “no reason to suppose that the Driver and Vehicle Licencing Agency (DVLA) is unable to deliver” the customer interface it is putting to allow people to register their trailers. Even though there were only eight weeks left for delivery, the Department told us that testing was still taking place.38 • Haulage permits–The Department said that the legislation had been put in place in the Summer, and it expected the Driver and Vehicle Standards Agency (DVSA) to be able to accept the first set of applications by the end of November 2018, but was unable to provide any more detail about the development of the new system.39 • Maritime databases–the Department has identified four systems it needs to put in place to replace functions currently carried out by the European Maritime Safety Agency. The Department told us that it was on track to deliver all four by March 2019, but only the two off-the-shelf systems are currently being implemented. A third, which will allow seafarers to notify the department of oil spills, is still being designed. The fourth, which will hold maritime safety information, is still waiting for HM Treasury funding approval before it begins development. The Department described both of the systems still being developed as “very simple”.40
15The Department told us that it had quite a lot of oversight of its EU...
Concluded (the committee's words)
The Department told us that it had quite a lot of oversight of its EU Exit work, including Senior Responsible Officers who hold projects to account, and support from external experts such as the Government Digital Service and the Infrastructure and Projects Authority.41 In our view the Department was clearly leaving responsibility for delivery to partners; either arm’s-length bodies like Highways England or third parties like the Post Office. The Department is responsible for the use of public money in delivering these projects but did not seem to have a clear grasp of key information, such as: the exact date the road haulage permit system would go live (which might have been either one week 35 C&AG’s report, para 2.30 36 Letter from Permanent Secretary of Department for Transport to Chair of Committee of Public Accounts: Update on EU exit preparedness 18 October 2018 37 Qq 178–191 38 Qq 162–164, 166 39 Qq 171–6 40 Qq 192–194, 196 41 Q 165 12 Department for Transport’s implementation of Brexit or five weeks away–a considerable difference); what is still to be done in the eight weeks before the trailer registration scheme goes live; or how to reduce the risk of competing roadworks causing additional traffic problems in Kent in March 2019. Department for Transport’s implementation of Brexit 13 2 Communications with businesses and the public Engaging with businesses
16The Department acknowledged that key industries are seeking information to be able to develop their...
Concluded (the committee's words)
The Department acknowledged that key industries are seeking information to be able to develop their own plans for the future, including the implications of leaving the EU without a deal. This includes road hauliers, who may need to vary their points of entry to Europe, or their routes of travel to UK ports.
17The Department told us that it is building a number of new systems with which...
Concluded (the committee's words)
The Department told us that it is building a number of new systems with which businesses will have to engage. Yet it appears that in making its preparations, the Department has had limited engagement with users, either in developing or testing plans. For example: • On trailer registration, the Department told us that the Driver and Vehicle Licencing Agency (DVLA) is building an IT platform based on existing systems. The Department understands that some users have been involved in early testing but acknowledged that there would need to be further communication. In the session, the Department could not provide us with details on where or how this would take place. • On road haulage permits, the Department told us that the Driver and Vehicle Standards Agency (DVSA) expects the first tranche of applications from hauliers from the end of November. This is a new method of issuing road haulage permits. Although the Department told us it has ongoing engagement with the industry, it could not provide us in the session with details on how it was communicating with users to ensure they would be ready to apply. • In subsequent written evidence the Department stated that it had commenced a public communications campaign covering both trailer registration and road haulage permits on 25 October, the day after the session, which makes the lack of detail supplied in the session surprising.
18The Department produced 13 technical notices this summer as part of a government- wide programme...
Concluded (the committee's words)
The Department produced 13 technical notices this summer as part of a government- wide programme to provide guidance to the public and businesses on what might happen if there was no deal with the EU. The Department told us that it had had engagement with the transport industry in developing these technical notices, in order to ensure the Department was addressing the right issues. It told us this engagement was covered by non-disclosure agreements, which was something the Department used when talking to the sector about issues which it considered were commercially sensitive. However the Department was unable to confirm whether the non-disclosure agreements covered just the draft of the technical notices or the conversations as a whole, and could not say whether those being used around EU exit work differed in extent from those used on other occasions. Businesses who wanted to take part in consultations over the technical notices had little choice but to sign these agreements. Again, we raised this concern in our recent report on preparedness for EU Exit at the Department for Environment, Food and Rural Affairs. 14 Department for Transport’s implementation of Brexit Communicating with the public
19The Department acknowledged that there had already been some concerns caused by a lack of...
Concluded (the committee's words)
The Department acknowledged that there had already been some concerns caused by a lack of communication, such as on Highways England’s work on the M26. The Department told us that it understood the importance of clear communication with the public, but that it had left this to Highways England to manage.
20Our concerns about the need for better communication between the Department and the public were...
Concluded (the committee's words)
Our concerns about the need for better communication between the Department and the public were illustrated by preparations for the issuing of International Driving Permits. The Department told us that it had set out in a technical notice this summer the possibility that people may need to seek permits in future, but there was more communication to do on the specific process. Although the Department told us it had a plan, it could not provide us in the session with detail on the timing or method of communication to be used. In subsequent written evidence, it stated that it planned to begin communication with private drivers in the New Year, and that this would include publication on gov.uk and advertising in key locations. Another example concerned the development of a new system for seafarers to notify the department about oil spills. Communication with the public about its responsibilities is crucial for the system but the Department is currently focused on design rather than communication.
21The Department was concerned about communicating with the public before it was clear whether action...
Concluded (the committee's words)
The Department was concerned about communicating with the public before it was clear whether action would be needed–for example, if a deal is reached with the EU and international driving permits are not necessary. We accept the validity of this concern, but we are not convinced by the Department’s preparedness for informing the public of what they would need to do should no deal be reached. After the session, the Department informed us it intended to begin communications with the public in the New Year, regardless of whether a deal was reached or not, although the scope and content of the communication would change.
22The Department emphasised that there was a role for third parties in disseminating information alongside...
Concluded (the committee's words)
The Department emphasised that there was a role for third parties in disseminating information alongside the government. For example, the Department expected that car hire and ferry companies would also publicise the need for travellers to have international driving permits, and said it was working with them to ensure messages would be coherent However it was unable to explain how it was co-ordinating this work. Department for Transport’s implementation of Brexit 15

Evidence

Oral evidence sessions 1

Correspondence 7 letters