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The government has admitted its dual-registration scheme set up for events hauliers working internationally will not help all companies, amid criticism that the damage to the music industry could be “massive”.

Brexit has forced hauliers in the events sector to only undertake three stops in Europe before they must return home.

However, new rules announced this month enable companies with a base in the UK and another country to switch vehicles between the respective operator licences and make use of the internal movements permitted within each territory.

But in a House of Lords debate, the government was accused of fudging a solution.

Lord Clement-Jones said: “This is all very much half a loaf.

“If a comprehensive solution is not found, the damage to the UK music industry and the events support industry will be massive.

“The prime minister has assured us that the government are working ‘flat out’ on the touring issue.

“Can the minister assure the House that her department is urgently working on finding a wider solution, such as an exemption from cabotage for all trucks engaged on cultural events?”

In response, parliamentary under-secretary Baroness de Vere said the department for transport was working “incredibly hard”.

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She said the EU had refused to allow UK hauliers to undertake greater amounts of cabotage and added: “We had a public consultation back in February and we are deeply engaged with the industry, particularly the specialist haulage industry, which is so important.

“We know that about one in five hauliers has already set up within the EU and many more have plans to do so.

“We recognise that the dual-registration system will not benefit absolutely everybody.

“However, it is the case under the TCA [free trade agreement] that many hauliers will be able to make use of their two cross-trades within the bilateral EU-UK movements that they can make.”

Baroness de Vere said: “So it does not mean that all touring is off the table.

“We believe that, at the moment, we have the best possible solution, in light of the current response from the EU.”

Following further criticism that the UK’s solution would only benefit larger companies, the minister said it was the “best idea” officials had come up with: “We have engaged with the EU but, when we did so, the exemption for specialist hauliers was rejected,” she said.

“Our door remains open for discussing alternative exemptions. There is a limit to what we can do on a unilateral basis.

“This was the best idea that came up both from my officials working on this and from our consultation with industry – 68% were in favour of this.

“When it comes to smaller operators and those operating on their own account, the other option would be for them to go into partnership with an EU haulier and thereby provide that continuity across the system,” she added.