The New Europeans: Live music’s Brexit exiles
When the British prime minister, Boris Johnson, announced on Christmas Eve 2020 that the UK had signed a free trade agreement, the TCA (Trade and Cooperation Agreement), with the European Union, there was a collective sigh of relief across much of Britain. Four and a half tortuous years after the Brexit vote, the UK was finally out, and people on both sides of the new border could finally get on with their lives.
Well, sort of. That is, of course, unless you work in concert touring, in which case new requirements for visas (for people) and carnets (for goods) – as well as restrictions on cabotage (ie the right to transport goods and people within the EU and/or UK’s borders) for trucking companies – represented a less than ideal outcome for an industry built on decades of free movement across Europe.
In response, many UK-based firms, particularly hauliers affected by the new limits on cabotage in the European Union, are investing considerable sums to open new depots in mainland Europe or the Republic of Ireland.
In contrast to these ‘new Europeans’, many in the touring sector were “sleepwalking towards Brexit day,” according to Robert Hewett, founder and director of Stagetruck. “They were just completely indifferent to it,” he says, “thinking that we’d all just carry on as it was before. I would be saying to people, ‘Look, I don’t think you should assume that. This is how we make a living; it’s our livelihood…’”
However, with all touring still on hold because of the coronavirus, the impact of the TCA’s more restrictive provisions, particularly on cabotage, has yet to be felt fully, Hewett continues. “What happened with the pandemic when it hit is that it masked it [the Brexit question] for at least the next 12 months,” he says.
According to Stuart McPherson, managing director of KB Event, a ‘no-deal’ Brexit – repeatedly rejected as the worst possible outcome by most live music industry associations and professionals – would have been a better option for hauliers than the TCA signed by Johnson’s government and their counterparts in the EU.
“Bizarrely, for us that would have been a better outcome than the one we have,” he explains. “For rock’n’roll touring companies there was an exemption in place, from back in 1996, that allowed entertainment transport to move freely throughout the EU. That protocol was overwritten by the TCA, which came into law with the Brexit agreement and overrode the previous exemption we had under the ECMT [European Conference of Ministers of Transport] protocols. So for us, this is the worst possible outcome.”
A ‘no-deal’ Brexit would have been a better option for hauliers than the Trade and Cooperation Agreement
When the TCA was reached and the Brexit deal done, what we were left with was something that said we can no longer tour in Europe,” McPherson continues, “and so the only solution for that – as it sits right now and for the foreseeable future – is for us to open up a full European operating centre with a European operator’s licence, which gives us more freedom in terms of cabotage and interstate movements in Europe.”
As a result of that outcome, all the major UK-headquartered concert trucking and transport companies, which also include Stagetruck and Transam/EST (Edwin Shirley Trucking), are now based at least partially in the EU, or are considering a move, with offices in places like the Netherlands and Republic of Ireland serving as all-important hubs for continental operations.
Under the current rules, Transam/EST will have to make a choice: “Either to become Dutch or Irish, or a bit of both, or to stay in the UK – but I can’t see the latter happening,” says senior manager Ollie Kite. “We’re going to have to re-register all our trucks, or a lot of them, into the EU, and that costs money. So we want to be able to be ready to do that, but we’re delaying it as long as possible. Because until work starts to return, we’re a bit strapped for cash…”
McPherson estimates that the cost to KB Event to set up an office in Ireland – including the operations centre with parking for 60 trucks, an EU operator’s licence, and duplicate fleet insurance – is already up to £500,000 (€578,000), with European CPCs (certificates of professional competence) for KB’s drivers set to cost a further £100,000 (€116,000) – a considerable outlay for a sector that has had little revenue since March 2020.
Stagetruck, which already had an office near Veghel in the Netherlands, is similarly facing a bill of between £100,000 and £110,000 to send its drivers to the Irish republic to do an EU-certified driver CPC course, says Hewett.
“All the European countries, at this moment, are standing together and saying, ‘No, unless you come and take a driving test [in an EU member state] you cannot drive a European-registered truck,’” he comments. “That is the nightmare that we’re all facing at the moment.”
Kite says Transam/EST is also looking toward Ireland, to minimise the language barrier for the company’s UK drivers. “The nonsense of it is,” he adds, “is that they already know what they’re going to be taught, as the course and the exams are exactly the same as in England – just that you have to take them in Ireland or somewhere in the EU instead. Nothing’s actually changed.”
Currently, explains Kite, the UK allows EU drivers to drive British-registered trucks on an EU licence, “although they’re hinting that they won’t let that continue” should it not be reciprocated from the other side.
All the major UK-headquartered concert trucking and transport companies are now based at least partially in the EU, or are considering a move
Keep on truckin’
As Craig Stanley of Marshall Arts, who is the chair of the UK’s LIVE (Live music Industry Venues and Entertainment) Touring group, told IQ earlier this year, the cabotage issue – the lack of an exemption for concert hauliers under the TCA – is by far the biggest problem facing hauliers who haven’t already made the jump across the English Channel or Irish Sea. “Unlimited movement by UK-based concert hauliers will cease,” he said. “The biggest impact of the cabotage regulations is that non-EU-based haulage companies will only be allowed to have a load going into the EU and then two further movements before having to turn back to their place of registration. So, as it stands, to undertake EU tours it will be necessary to have EU-registered hauliers.”
The Road Haulage Association (RHA), the UK trade association for haulage and logistics operators, has called on Boris Johnson to secure an exemption, or ‘easement,’ from the current rules for UK-based entertainment hauliers to enable them to continue touring Europe. “If the UK events haulage industry is to have any chance of survival it needs an EU-wide easement so that trucks moving touring equipment can continue to make multiple stops across Europe,” says RHA chief executive Richard Burnett.
Unfortunately, on the British side at least, there remain fundamental misunderstandings about the role of concert hauliers and their needs in the post-Brexit landscape, says Kite. “We’ve been lobbying for change, we’re talking to the Department for Transport, and the Department for Digital, Culture, Media and Sport, but they don’t really understand. They think it’s just going from A to B, dropping off a kit and then picking it up again. We’re struggling with trying to get them to understand that under the TCA we simply can’t tour like we used to.
“We’re inching forward – whereas before, under other rules, cultural tours and events were exempt from the cabotage rule.”
“There is a lack of understanding in government about transport,” agrees Hewett, “even more than the lack of understanding about the music industry. Every headline you ever saw was about fishing, but if you compare what the music industry brings in – what it brings to every local economy when a big band arrives – it’s a massive injection of income into local areas, and they seem to have bypassed it completely. It’s amazing.”
“There is a lack of understanding in government about transport – even more than the lack of understanding about the music industry”
It’s not just hauliers who have been forced to set up costly EU offices to continue trading after Brexit. London-based World Touring Exhibitions, which celebrates its 20th anniversary this year, has been forced to slim down its UK office and set up shop in Rotterdam – a reflection of visa considerations and the other expensive barriers against both UK–EU and inter-EU travel for a non-EU company, founder Corrado Canonici tells IQ.
“It’s a shame, but it is necessary, as we can’t really bring UK people [to Europe] at the touch of a button, like we could before,” he says. “For example, we are about to open an exhibition in Germany – I can’t get my crew there unless I get them all visas, which would have taken an enormous amount of time and money, which makes no sense when you only need them to work five days. What sense does it make to get them a 30-day visa?”
For exhibitions coming into the EU, “we have to do all kinds of paperwork – ATA carnets, rule-of-origin papers – in addition to visas for the crew,” Canonici continues, “so we just thought, ‘How about we continue to be part of [the EU]?’ Europe is 27 countries and the UK is one. So [by opening an EU office] we have 27 countries that we can serve and tour without any problems.”
From a freedom of movement perspective, the political climate in the UK would never have allowed for permit-free travel between the UK and Europe, suggests Andy Corrigan of Viva La Visa. “Anything regarding immigration would have needed a degree of reciprocity: that if we [the UK] were saying we are going to have visa- free travel, the EU would have said, ‘Well, we want it to the UK,’ and the UK – the Home Office and Boris Johnson – would have said, ‘No way.’ Anything regarding Brexit that would have led to increased immigration into the UK, they’d have said no, because of how that would play out in the Daily Mail: ‘That’s not what we voted for…’”
While Corrigan believes the problems surrounding other aspects of post-Brexit touring “are soluble, it’s going to take a bit of time to make everything run smoothly. And anecdotally, things are not terribly well organised at the moment. We had a sound company went out [to the EU] on a carnet last week. I had to get them the emergency car and the two-hour special service, and they got to Folkestone and the guy there refused to stamp it. I don’t know why – he just said he couldn’t do it and moved them on. So they got to France and, because it was Ascension Day, customs was closed. There was nobody there.
“It’s one thing saying you need a carnet to take your goods over. But the actual practicalities of it – the system and the infrastructure – are not all together yet. And I think you will get more random decisions being made by border people asking for the wrong things and discriminating and asking for stuff they shouldn’t, and the same coming into the UK. Hopefully, it will smooth itself out.”
World Touring Exhibitions’ new reality was illustrated recently as the company prepared to put the aforementioned exhibition into Cologne. Canonici recalls: “All of a sudden we found out that if we were using a British company, it would have been a problem. We were told, ‘You can’t do that without a big, big cost.’ So, we used a Dutch company instead and immediately the shipper told us, ‘Oh, that’s great.’ We literally just signed one piece of paper and that was it.”
“When the pressure is coming from the other side of the Channel, that’s when things will change”
‘Make it work’
Despite this exodus of profitable business out of the UK, McPherson is of the opinion that there is little appetite on the British side for renegotiating the terms of the Trade and Cooperation Agreement, even on a bilateral basis (between the UK and individual EU member countries). “At the moment, it’s being made very clear that there is going to be no reengagement or renegotiating on the TCA,” he says. “To read into that, the message is: this is what you’ve got, and you’ve got to find a way to make it work.”
While KB Event and companies like it have already spent hundreds of thousands of euros on doing just that, McPherson remains concerned about what he sees as a fundamental lack of haulage capacity for tours in the pipeline – particularly given the number of shows that have been postponed to 2022 and beyond because of Covid-19 restrictions.
“When we get to 2022 and there are not enough trucks in the EU to be able to cover the tours, you’re going to have European promoters saying they cannot deliver their tours as they have no way of moving them because 85% of trucks for touring come out of the UK.”
Hewett emphasises the importance of also keeping the pressure on the government in the UK, warning that the entertainment haulage sector – especially those smaller British outfits that couldn’t afford to become ‘new Europeans’ – is facing wipe-out under current cabotage regulations. “We really need a concerted effort now, with the press, the music industry and everyone to come on board and push this issue because it could decimate this industry,” he says.
For Corrigan, there’s “too much at stake, economically and artistically,” for the UK and EU not to get back around the negotiating table to resolve the outstanding issues facing performers, crew and hauliers. “It’s going to happen. In the past, things have been overcome,” he says. “We used to tour Europe with carnets at every border, which was a nightmare. But today’s major touring is a much more business-like activity than it was 30 years ago, and think how much it would upset the accountants if the lighting truck didn’t make it to a gig because it got stuck at the Belgian border for 12 hours…”
In a scenario like the one mentioned, where promoters cannot deliver shows for which fans have bought tickets (and in many cases held onto them for a year or longer), “that’s when the pressure is going to change,” says McPherson, “from the UK trucking company shouting about the fact we can’t do what we do for a living anymore, to promoters in the EU shouting at their country’s government, saying, ‘You guys need to do something here. We can’t move our tours. Our revenue streams have dried up for us, and for our nation.’
“At that point, when the pressure is coming from the other side of the Channel, that’s when things will change.”
Read this feature in its original format in the digital edition of IQ 100:
Rock-it Cargo and Sound Moves join forces
Rock-it Cargo and Sound Moves, two of the leading providers of logistics to the global live touring industry, are coming together under a single corporate entity, Rock-it Global.
The US-based Rock-it Cargo and UK-based Sound Moves are both subsidiaries of Rock-it Cargo USA, backed by ATL Partners, which remains the sole private equity partner and the majority shareholder.
Rock-it Global will merge the office and vendor networks of both subsidiaries to offer a combined seven decades’ worth of expertise. The company plans to unveil new branding and a newly assembled leadership team in the spring.
“It’s time to get excited about the future, come together and be the best we can be, jump on all the pent-up energy and optimism of a new year, successful vaccines and the shared will of our client base to get back to business. Let’s get this show on the road,” says Duane Wood, president and CEO, Sound Moves.
Paul Martins, Rock-it Cargo, CEO and president, says: “This coming together is something long in the making. We devoted significant time and effort to bring this to fruition. “I’m also extremely pleased that Duane Wood, founder and CEO of Sound Moves is joining the executive team as chief strategy officer. His experience leading Sound Moves will be a remarkable asset to the new combined company as well as the entire group of companies under our umbrella.”
“When you’ve got the best operators in the world functioning in two different silos, you need to bring that power together”
“Same people, same phone numbers, same email addresses, same great experiences, it makes sense,” Martins continues. “When you’ve got the best operators in the world functioning in two different silos, you need to bring that power together to create an unbeatable organization that can provide tailored solutions for critical projects anywhere in the world, delivering for our customers the ultimate peace of mind.”
David Bernstein, non-executive chairman of the board of Rock-it Cargo Holdings, says: “We’ve reorganised Rock-it in a way that we believe will provide for the best customer experience and expertise available in global entertainment logistics.”
“The time our people have been off the road has allowed us to internally assess our strengths and ask how we could be stronger and more prepared when our clients signalled it would be time to get back out. This move positions us for what lies ahead.”
Sound Moves recently spoke to IQ about post-Brexit changes on the carnet system within Europe. Read the feature here.
The impact of the reintroduction of ATA Carnets, alongside new cabotage rules, will be discussed during the panel Trucking Hell! Is it really that bad? at this year’s ILMC Production Meeting on Tuesday 2 March.
The Brexit deal: What we know so far
The live music industry has been left with many unanswered questions by the post-Brexit trade deal, which was agreed upon by the UK and the EU on Christmas Eve (24 December).
The deal, which was signed into law yesterday, takes effect at 11 pm GMT today (31 December) – four-and-a-half years after the UK voted to leave the EU in a referendum and almost a year after the UK officially left the EU.
While much of the impact on touring musicians and productions is still unclear, IQ spoke with specialists across concert hauliers, freight and visas, to identify the current state of play for the live music business.
According to Richard Burnett, CEO, Road Haulage Association, the biggest issue the new Free Trade Agreement presents to concert hauliers is restricted access to the market. This is due to reduced cabotage – a restriction of movements within a country.
Before Brexit, concert hauliers were not restricted in the number of times they could unload and load productions on a European tour. From tomorrow, trucks over 3.5 tonnes are limited to just three internal movements.
“So, a haulier could drop off a load in Paris, pick up a load in Paris, and then take it to Leon. And then the haulier would have to come home,” Burnett explains. The cabotage rules are also reciprocal; European trucks touring the UK would have equally limited movements.
From tomorrow, trucks over 3.5 tonnes are limited to just three internal movements
An estimated 85% of the European concert trucking business is based from the UK. Burnett says that currently, the only way those hauliers can continue to provide the same service they have for decades is by setting up a European operation which “costs a lot of money… hauliers have already had the worst year in their history due to Covid and are struggling enormously as it is.”
Seeking an exemption from the current rules, the Road Haulage Association and umbrella trade group LIVE is lobbying the UK Government to intervene and prevent large-scale European touring out of the UK from effectively being unable to resume in 2021.
The carnet system will once again apply within Europe, as it did prior to the UK’s membership of the EU, and in line with other non-EU international tours.
It will now be necessary for tours to obtain ATA Carnets for all equipment travelling outside of the UK on a temporary basis. And while the carnet process is well established, its reintroduction is expected to add friction and cost to European touring, with its impact felt more intensely by grassroots and emerging artists.
“Merchandise shipments and any other consumable items cannot be shipped on a carnet so they will probably have to enter the EU on a permanent basis and, whilst they should be duty-free, a local company in the European destination country will have to take responsibility for the VAT due on the import,” says John Corr at Sound Moves.
While the carnet process is well established, its reintroduction is expected to add friction and cost to European touring
In terms of logistics, Corr points out that the new deal will require all trucks of 7.5 tonnes and above to have submitted customs clearance details and obtained a Kent Access Permit to be allowed to enter the county, to then make use of one of the document processing facilities and be allowed to board and cross.
His colleague, Martin Corr, stresses the inevitable delays tours will suffer while everyone gets used to the new customs procedures and processes.
“In the long term, promoters, managers and productions managers will have to budget for extra costs in relation to raising and bonding carnets. At the same time, itineraries will need to be carefully scrutinised to allow for the extra time and potential delays whilst carnets and other documents – including those for the truck and the drivers – are presented, approved, and customs and immigration release obtained,” he says.
For outbound immigration (UK to EU), visa requirements for touring musicians and crew will, in the future, be up to each individual country and enquiries are underway regarding immigration regulations applicable to each individual member state for outbound mobility from the UK.
A recent blog post by immigration specialists Viva La Visa states that, “The hoped-for provision for a dedicated clear permit free route for UK performers and their crews to operate in the EU was not there”. Industry associations are subsequently pressing for urgent clarification.
For inbound immigration, from tomorrow EU musicians (and entourages) will be coming into the UK through any of the existing three routes that apply to non-visa nationals: Certificates of Sponsorship (Tier 5), Permitted Paid Engagements (PPE) and Permit Free Festivals.
Various petitions have been launched in relation to musicians working in the EU post-Brexit including ‘Seek Europe-wide Visa-free work permit for Touring professionals and Artists‘ which will be debated in Parliament after surpassing 100,000 signatures, and the Musicians’ Union’s ‘Musicians’ Passport’ campaign.
IQ will be updating readers as further details of the new Brexit deal are clarified…