Automated and Electric Vehicles Bill (First sitting)

(Limited Text - Ministerial Extracts only)

Committee Debate: 1st sitting: House of Commons
Tuesday 31st October 2017 Public Bill Committees

[The Chair]

I have had Graham Jones, Karl Turner, the Minister, Iain Stewart, Oliver Letwin and Craig Tracey indicate that they want to ask supplementary questions. Is there anybody else? I will take the Minister next.

[The Minister for Transport Legislation and Maritime (Mr John Hayes)]

Q Ben, some of us have obviously been round this track before with the previous incarnation of the Bill, and you will know that since then we have made some changes to it. One of the changes was the agreement to define a list of automated vehicles to create clarity. One of the criticisms of the earlier incarnation of the Bill was that that was not clear enough. Do you think we have made progress there?

Ben Howarth: Yes, I think so. I think the definition that you have used in the Bill is clear. To me, it is pretty unambiguous that we are talking about cars that are being entirely driven themselves. I anticipate that there will be a pretty detailed consultation on how you actually draw up the list of vehicles and define what is and is not an automated vehicle. We are obviously very keen to be involved in that and to provide views. Within the industry and within the Association of British Insurers’ work, we have made a bit of progress in working out what we think the criteria for an automated car are, and those are views that we definitely want to feed in. So, yes.

[Mr Hayes]

May I ask another, Chairman? Would that be allowed?

[The Chair]

Yes.

[Mr Hayes]

I do not want to hog the questioning.

[The Chair]

I will see that you do not.

[Mr Hayes]

Q I take that as read, Chairman. There was a lot of debate on Second Reading about the possible safety benefits of automated vehicles, and questions were asked about what that meant for insurance premiums, for example. What is your view on that? Clearly it is early days, but do you anticipate that safer vehicles will lead to easier insurance and lower premiums?

Ben Howarth: Yes, I think it is very clear. We have a very competitive market for insurance. If we see claims costs coming down, which much safer vehicles would definitely do, we would be looking at a similar effect on insurance premiums. We cannot say exactly what will happen until we have seen the cars in real life.

[Mr Hayes]

Q So the legislation is welcomed by the industry.

Ben Howarth: Yes, it is very welcomed by the industry. I think it is very clear that the legislation and broadly the development of automated driving are something that insurers are genuinely enthusiastic about. In terms of the work we do in the ABI, it is one of the areas where we get the most engagement and interest from our members.

[Karl Turner (Kingston upon Hull East) (Lab)]

Q Off the back of the Minister’s question, clause 1(1) defines “autonomous”, or rather the vehicles that could be classed as “safely driving themselves”. That does not seem very tight to me. Does the definition not need to be tighter? Does it not give the Secretary of State an awful lot of power? I do not know whether you have a copy of the Bill in front of you. Clause 1(1) states that autonomous vehicles

“are in the Secretary of State’s opinion designed or adapted to be capable, in at least some circumstances or situations, of safely driving themselves.”

The clause allows the Secretary of State to come up with a list of vehicles that he or she thinks are capable of being driven safely without being operated manually at all. The definition does not seem tight to me.

Ben Howarth: I would make two points on that. On the one hand, we would obviously want to see robust and good consultation on how that list is put together. We would want it to be transparent and we would want the opportunity as an industry to feed into that. The wording does have an advantage in that it clearly states “safely driving themselves”. One of our views is that we want a clear and unambiguous distinction between cars that are completely hands-off—maybe not for the whole of the journey, but for parts of the journey—versus cars where the manufacturer might be saying, “You can do a lot with the automated functions, but you need to be there hovering over the steering wheel as a backstop.” We do not want those things to be blurred, and the definition in the Bill does that.

If I can make one further point, being on the list is clear—there is a definition—but there will also be a role for insurers to play in thinking about, “We have a claims history and car A is brilliant and has a really good safety record, while car B might not be a very good functioning car, but it has got itself on to the list.” Insurers will want to take a view on that in terms of how they approach those vehicles in offering products.

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[Alan Brown]

Q As insurance premiums come down, as predicted, in the future, is there a concern or risk that the Chancellor of the Exchequer will increase the Government’s take from insurance premiums, so that all the savings are not passed on to the driver?

David Williams: We always worry about insurance premium tax increasing.

[Mr Hayes]

Q You talked, in relation to the question from my hon. Friend the Member for North Cornwall about people who are disadvantaged not currently being able to access transport and so on, and subsequently, in answer to the question from the hon. Member for Eltham, dealt with predictable, standard routes. Where an autonomous vehicle is acting more like a bus in effect—it is on a standard journey—presumably it will be particularly appealing to those who currently cannot access transport of their own, because it will be, as you put it, in straightforward mode; even in a straightforward mode, many people currently cannot drive a car, because a visual impairment or a disability prevents their doing so. Is that a future you envisage?

David Williams: I think there will be, in the same way as there are many variations even to the Uber model now, many variations to autonomous vehicles. I think the advantage will be that you will not have to stick your hand out to stop a bus; the vehicle could potentially come into your drive and then go back out and continue its journey.

[Mr Hayes]

Precisely. A journey to a hospital where there is not currently a bus route would be a good example.

[The Chair]

Order. I am afraid that brings us to the end of the time allotted for the Committee to ask questions. I thank our witnesses on behalf of the Committee for their evidence and I also thank Members for their admirable self-control and brevity.

Examination of Witnesses

Diana Holland, Adrian Jones and Rob Johnston gave evidence.

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[Clive Efford]

Q We have just heard from insurance companies that for many years to come automated vehicles will not operate in many areas but mainly on major routes such as smart motorways, which clearly has an implication for people who drive long distances. There is the issue about transition from being automated to manual and vice versa. Is that an issue of concern for you and the people you represent: the delays in transition and the impact that taking over a vehicle has on the behaviour of a driver?

Adrian Jones: It absolutely is. As was said in the previous session, when a driver is not concentrating on driving, their attention is elsewhere and the transition back to driving is a slower process. The agreed trials for platooning are part of the debate and should not be forgotten. If you have three vehicles in a platoon, you have a driver in the front vehicle that is controlling the other two vehicles, what are the other two drivers doing? When they come to the end of the motorway or road where the platoon is taking place, what do they then do?

We also have the concern raised in this very room about 18 months ago. The report from AXA suggested over £5 billion a year savings in labour costs, due to the introduction of automated vehicles. That clearly says to me that there is either a downgrading or lack of recognition of professional drivers who are carrying freight, passengers or anything else. I think there is a real concern that the Bill does not cover any of those aspects at all. If it is not covered in this Bill, it needs to be covered somewhere.

[Mr Hayes]

Q Dealing with your point, Diana, I think you are right. Perhaps I can provide some reassurance. I do think you should contextualise this debate in a bigger debate. I do not think it is something you can do in legislation. You are absolutely right that the implications over the longer term oblige a proper lateral discussion—quite a serious discussion—about our transport future. If I can briefly make a case for the Bill, Chairman, it tries to steer a way between being too prescriptive about what that future looks like and putting enough of a framework in place not to inhibit research and development and further technological change. There is a big contextual discussion to be had, and I hope the Bill might stimulate that in the time we have here and in Committee, but it is going to take place over a longer time in a bigger forum, I suspect.

On the specific point about job growth and job shift—you made a very balanced point about how some jobs will change, some will grow and some will shift—I want to come back to the issue raised by previous witnesses about people who currently cannot or do not drive. In rural areas, for example, in many places in Cornwall, Lincolnshire, Dorset and similar places, half the parishes do not have access to public transport. Can you imagine a future where autonomous vehicles will fill that void and provide a link to public transport, perhaps buses, trains and so on, and therefore boost the use of that transport for people who currently cannot get there. They will have access to autonomous vehicles because they are straightforward things to drive.

Diana Holland: Cards on the table: Unite is not opposed to technological advances, autonomous vehicles or anything in this area. It is about how it is done, the basis on which it is done and making sure that safety is absolutely critical. We are slightly concerned about the current moves. We believe that risk-based health and safety management needs to be properly built into this and we are slightly concerned that that is not recognised. We are not opposed to this in any way—it provides all sorts of opportunities—but because the overall approach is about private individualised driving rather than about the implications for the whole road transport industry of passengers, as Adrian was saying, with road haulage and taxis, it is also going to operate on a marine basis, in agriculture and all those other things. The concentration on private vehicles is going to advance this in such a way that I think there is a danger that it skews the potential for developments by concentrating on one aspect to the exclusion of the others. Does Rob want to mention your wider point about the commissioners?

Rob Johnston: To pick up on a couple of points, I think some of the challenges are about the definition of automation, which is at the root. We work with a number of global institutions, employers’ bodies and manufacturers. We have developed a framework of five layers of automation. When you look at what we are discussing, at least three or four of those layers need to be included. On the point just made about people who cannot drive potentially being able to drive, there is also a question about the definition of the amount of automation needed to give them that mobility. It is very difficult not to consider the whole piece. In the end, it will not be a journey from where we are today to suddenly having fully automated vehicles. It will be a process as technology slowly comes through. In particular, platooning, which is one of the areas that we are likely to see in a relatively short time period, would not be covered under the Bill in its current format.

[Mr Hayes]

Q May I add a quick point? I am grateful for your welcome—I am not surprised; I have worked very closely with Unite—and I take your point on that. Would it be fair to say that you hope, as I do, that as well as this necessary legislation we can have a bigger debate to ensure that this fits into the broader narrative about the transport future?

Diana Holland: Absolutely. We believe that representatives of the workforce need to be part of that discussion but, as trade unions, we are often not included in those kinds of debates. We have discussions with employers where we have recognition, but plenty of people operate in the industry and there are areas where our voices are not heard. We think it is essential that they are.

[Mr Hayes]

Q Wherever my ministerial footprint touches, the unions are always involved.

Diana Holland: We are, and we will place on record that that is the case.

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[Karl Turner]

I am grateful that the Minister is nodding very enthusiastically.

[Mr Hayes]

It is a good point.

Diana Holland: I was quite concerned when I looked at those terms. Although there is some implication about developments in technology, it seemed that we would need to look at the way it is worded to ensure that it properly reflects this. Otherwise, the Bill will not provide the opportunities that it needs to. So yes, that is a really important point.

[Clive Efford]

Q On the issue of vehicles being connected in convoy on the motorway, are you saying that there should be a specific reference or clause in the Bill about connected vehicles and how they behave?

Rob Johnston: There is a definition that the ITF and a number of organisations such as the European Automobile Manufacturers Association and the International Transport Forum at the OECD have worked to establish. It sets out five layers of automation. We believe that will be a useful reference point for looking at how to define what automation really means. In those five layers are different degrees of automation. The previous evidence alluded to that in some ways.

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[Graham P. Jones]

Q What impact will the Bill have on employment if it goes through?

Diana Holland: Again, it does not have to have any impact on employment in terms of the two relatively minor areas that it could be argued that it covers; but the potential is there to enable a wholesale change to a different method, and ultimately saying that the professional driver no longer has a role. There are extremes in approaching this. We would say that it does not have to do away with employment, but plenty of estimates have shown that if it is introduced in one way, that is the effect it will have.

Our immediate concerns regarding the phrasing of the Bill are on the impact on those people currently employed, or under a range of contracts, and responsible for a vehicle, who would find themselves potentially liable in a way that we hope is not the intention. We really think that needs to be looked at to ensure that it does not encompass all kinds of people who we do not think should be liable in those circumstances. There are specific concerns around taxi drivers who own their own vehicles. There are issues around road haulage, where certain people are required to establish themselves as a limited company or to be self-employed to have jobs, but the definition bears questions. We need to ensure that we are not extending liability here beyond where it ought to be, when the operation is run and owned by a third party.

Rob Johnston: If I can briefly add to that answer, KPMG produced a report that said there are potentially 25,000 additional jobs directly working in the automation industry by 2030. A potential 320,000 jobs that could be created, but there is a caveat to that: Government policy is needed to address the growing skills gap, otherwise there is a risk of losing more than £50 billion in GDP per annum. Those are statistics provided by the transport systems Catapult.

[Mr Hayes]

Q Finally, I want to return to Mr Turner’s point on skills, which I nodded vigorously at, as he noted. Presumably to facilitate the discussion you are suggesting—the bigger debate about the transport future—it would be helpful now to begin dialogue with the FE sector and with manufacturers on apprenticeship frameworks. That is beginning. As you described, Rob, you are having those kind of discussions, but I am of a mind that the Government should now facilitate some more of that. Would you welcome that? I am inclined to take the view that while it is true that we cannot exactly predict either the character or timing of the technology, initial discussions of the kind that you proposed would be helpful. Is that about right?

Adrian Jones: Yes, I would certainly say that we would welcome the opportunity. While the date for roads full of fully automated vehicles is an unknown, as is the impact, our members already have concerns. In manufacturing, the apprentices needed are not engineering apprentices in the traditional sense; they are software engineer apprentices. In road transport, we have fitters and engineers who are up to their elbows in grease, but in just a few years’ time they will be up to their elbows in keyboards, iPads and screens, which is a completely different skillset.

We also need to recognise that there is concern about skills. As you know, Minister, there is a widespread acknowledgement of a driver shortage in the UK. You already know my views on that. Our members already have concerns that the technology is being used as a smokescreen in effect to say, “We can use this technology to address that skills shortage”, but it will not do that, because employers will see it as a way of reducing cost, rather than filling the skills gap.

One expert that I heard on the venerable Radio 4 was asked about the job shift of a bus driver when that bus was fully automated. The expert said, “Jobs will be created. There may be a café on the bus and they could work in the café.” That is not comparable work. Yes, it is a job, but going from a skilled position to working in a café—no disrespect to any café workers—is not maintaining a standard of living or the same income to that family or the Treasury. There has to be a real debate now, not only on the future, but on the impact that new technologies are having on the transport industry and workers today.

[Mr Hayes]

Q So you would welcome an initiative, if I launched one, to have that kind of dialogue.

Diana Holland: We would, very much.

Adrian Jones: Yes.

[Mr Hayes]

Q While you acknowledge, reasonably so, that we cannot be definitive about exactly where this will lead, we need to start engaging with all the partner organisations that can make the skills you describe a reality.

Diana Holland: I think the approach we see all too often is the race to the bottom that means that even those employers that want to invest are forced to undercut in order to win contracts. There is an opportunity here for Government to say that nobody can undercut on the basis of the standards we think should be set and operating in this industry. If we are approaching skill levels in that positive way, that can be extremely helpful, because it means we are saying that people are recognised for the skills they have, and having those skills will mean we get the kind of industry we want.

[Clive Efford]

Q If, under clause 4, an employer were to compel a driver to take a vehicle on the road that does not comply or have all the safety-critical software downloaded, should that be a criminal offence on the part of the employer? What should be included in the Bill to deal with that?

Adrian Jones: I am not sure if it would be included in this Bill. There are already regulations in force through the Traffic Commissioners’ office for operators who infringe on maintenance, for example. The key, for this Bill, is how the driver would know whether or not that vehicle is fit. At the moment, a driver is expected to carry out a daily check to ensure that the mechanical aspects of the vehicle are fit for road use. How can they check that the software has been updated appropriately, and who will be held responsible if it is not? The Bill does not cover that, and it would be helpful, certainly for drivers and for the confidence of other road users, if, when I see an automated vehicle on the road, I know that it has been properly updated and the vehicle has a professional driver or worker who has ensured that the updates have been made.

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[The Chair]

Before I call the Minister, I have him, Graham Jones, Iain Stewart, Matt Western, Scott Mann and Matt Rodda indicating that they wish to ask questions. Are there any more? No. Well, you can do the maths as well as I can. Will Members be as brief as possible with their questions? And Robert, we really enjoy your eloquence and insight, but if you could be as pithy as possible in responding, that would be helpful.

[Mr Hayes]

Q Robert, I will try to be pithy too. Broadly, from what you have told us so far, you welcome the Bill. Your journey to Edinburgh will be helped by the fact that the Bill suggests that fuel retailers should have charging points, because you could access them on the way, but you also say that we need to do more on the spread of charging points. Is that a fair summary?

Robert Llewellyn: Yes, I think so—I am trying to be pithy.

[Mr Hayes]

Q I have one other point—an old chestnut that I make no apology for roasting one more time—about the look and feel of charging points. I am keen that they should have some familiarity, so that people see a charging point and know what it is. Is that a good idea?

Robert Llewellyn: Yes, very much so. That has certainly been discussed a lot. If nothing else, like at a garage forecourt, if a row of charging points are under a canopy—say, at a motorway services or at a garage forecourt—with a specific kind of colouring to attract you to it, that would be nice. I do not know whether you can legislate for that, but it would be a great benefit so that you are not standing in the rain when you plug your car in.

[Mr Hayes]

Q And you hope that Her Majesty’s Opposition will move an amendment on the provision of coffee, do you?

Robert Llewellyn: A bit of coffee. Or a herbal tea.

[Graham P. Jones]

Q Robert, you are a great enthusiast for automated and electric vehicles, so the Bill must please you no end. I have just a broad question and then a specific question. Broadly, what is missing from the Bill? We heard from Unite about integrated transport, rather than this just being about the relationship between the driver and the vehicle via the insurance company, as well as some other small matters. So on the bigger issue, what do you think is missing? What would you like to see if you were the Minister in charge?

I want to ask a particular question at the end about vehicle variations. Does the Bill accommodate what we will see in the future? I believe we will see different types of vehicle variation, because there will be electric vehicles instead of just the four-seater saloon car.

Robert Llewellyn: There are three things that would be wonderful. I am definitely not an expert, but when you have seen this you can see how popular it is: community electric car sharing/ownership/use. When those little systems organised by local communities appear, they are very popular with the local community. I have seen this in small towns rather than big cities.