Road Vehicle Carbon Dioxide Emission Performance Standards (Cars, Vans and Heavy Duty Vehicles) (Amendment) Regulations 2022
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Baroness Vere of Norbiton
That the Grand Committee do consider the Road Vehicle Carbon Dioxide Emission Performance Standards (Cars, Vans and Heavy Duty Vehicles) (Amendment) Regulations 2022.
The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con)
My Lords, there are two statutory instruments being considered together in this debate. I will begin with the regulations on vehicle type approval, as the carbon dioxide emissions instrument is being made as a consequence of the type- approval instrument.
As the department responsible for vehicle regulation, we have conducted intensive work to ensure that there continues to be a functioning legislative framework for this crucial sector of the economy. The EU type-approval scheme for road vehicles, such as cars, buses and goods vehicles, is being converted to an independent GB type-approval scheme, replacing the current interim arrangements whereby EU type approvals have been accepted following scrutiny by the Vehicle Certification Agency—the VCA. Alongside this, these regulations continue interim arrangements for motorcycles, agricultural tractors and machinery engines.
The purpose of type-approval legislation is to enforce prescribed safety and environmental standards. EU law previously set out the regimes under which a new vehicle, engine or part was required to be tested. Most of the standards come from an international body, the United Nations Economic Commission for Europe, or the UNECE, and the UK will of course continue to play a prominent role in this organisation.
The Road Vehicles and Non-Road Mobile Machinery (Type-Approval) (Amendment) (EU Exit) Regulations 2019, debated in your Lordships’ House on 20 February 2019, introduced an interim provisional approval regime lasting two years, until the end of 2022. This required motor vehicle manufacturers to submit an EU type approval to the VCA to permit registration. Trailers, machinery engines and replacement parts continued to need an EU type approval.
Under the withdrawal Act, the EU law on type approval is retained in UK law. There are around 2,500 pages setting out detailed technical standards for cars, buses and goods vehicles. This SI corrects deficiencies and creates a GB type approval, although I emphasise that, at present, the technical standards are essentially identical to those in the EU, so for manufacturers this is initially an administrative exercise.
This SI will require manufacturers of road vehicles to transition into the GB type-approval scheme no later than 1 February 2026, with approval being available from 1 January 2023.
With respect to the Northern Ireland protocol and unfettered access, this instrument will exempt vehicles that meet EU rules, which are made in or approved in Northern Ireland, from the GB type-approval regime.
This SI gives Ministers the powers to amend the retained direct minor EU law on road vehicles; in other words, the detailed technical specifications originally set by the European Commission. There will be a statutory requirement to consult representative bodies, such as the Society of Motor Manufacturers and Traders—the SSMT—and similar groups, whenever Ministers seek to amend the technical standards. This will ensure that the vehicle industry and interested non-governmental organisations will be able to have their say on any proposals that we make.
Machinery engines placed on the market from 1 January 2023 will be required to obtain GB approval under a new provisional approval scheme for machinery engines, which recognises an EU approval. These arrangements are already in place for tractors and motorcycles. For all three groups of product, the provisional schemes will continue until the end of 2027, by which time we expect to have an independent GB type-approval regime available for all these groups of vehicle or engine.
I turn to the second SI, relating to carbon dioxide emissions performance standards. This instrument amends various retained EU new car, van and heavy-duty vehicles carbon dioxide emissions regulations to ensure that they can continue to function appropriately in the UK.
The road vehicle carbon dioxide emissions regulations were retained following EU exit and establish carbon dioxide emissions standards for manufacturers of new vehicles across the UK. For cars and vans, regulations establish how the carbon dioxide emissions framework is to operate, including how carbon dioxide emissions reduction targets will be set, monitored, reported and enforced. They also include several flexibilities to help manufacturers meet their targets, such as reduced targets for small-volume manufacturers and additional credits for producing low-emission vehicles.
Similar regulations for heavy-duty vehicles were also retained following EU exit. However, they do not set mandatory carbon dioxide emissions targets on manufacturers until 2025. Until this time, manufacturers are legally required to annually report specific data points on their vehicles to the enforcement body, the VCA.
All this instrument does is correct for deficiencies and inoperability within the retained regulations: there is no change in policy. The primary corrections are replacing references to EU type approval with EU, GB and UK(NI) type approval, where appropriate, to reflect these type-approval schemes. As these regulations apply UK-wide, it is appropriate to reference all three type-approval schemes as, due to the protocol, vehicles registered in Northern Ireland will continue to receive EU type approval, or now, UK(NI) type approval.
These corrections will ensure that carbon dioxide emissions from vehicles with GB or UK(NI) type approval are regulated. If these corrections were not made, over time the carbon dioxide emissions of potentially millions of new vehicles would be unregulated, risking legally binding carbon budgets and climate commitments.
Some minor EU exit-related deficiencies were also corrected in this instrument, and a simple typo made by a previous SI was fixed.
These two instruments address EU exit-related deficiencies in retained EU law, enabling the creation of an independent type-approval scheme while ensuring continued effective regulation of carbon dioxide emissions. I commend these regulations to the Committee.
Lord Jones (Lab)
My Lords, I thank the Minister for her introduction. It is a matter of supporting the 2022 regulations. It is clean, green and 21st-century. I rise on the principle that the Executive should always be questioned by the Back-Bencher—by the legislature. That is a parliamentary principle of long standing, and I am simply taking this opportunity, knowing that time is of the essence.
Paragraph 7.1 of the helpful Explanatory Memorandum, on the policy background, is very blunt and to the point. Paragraph 12.5, under the heading “Rationale”, is a helpful foundation statement, which no doubt the department has worked hard to produce.
What is the department’s estimate of the number of vehicles on our roads that now follow the April 2019 regulations of the EU Parliament and the EU Council? I presume that many do not—and legally. I am sure the Minister will tell me in her reply.
The Minister mentioned consultations, which is a big plus. In proposing these regulations, what consultations has she had with the Mayor of London? Maybe there were none.
Looking at the road vehicles EU exit regulations—they are numbered “XXX”—I found them a bewildering plethora of initials. In a way, they are as long as Hilary Mantel’s novels and quite bewildering in their detail—but this is a detailed issue. The DVLA is a huge employer in greater Swansea. As a member of my noble friend Lord Kinnock’s shadow Cabinet, I recollect that we heard proposals to move the DVLA to England. They never materialised, of course—it would not have been seen as a positive move—but, without a doubt, the DVLA is a major employer. All of Britain much depends on it. Can the Minister say how many people are now employed at the DVLA in Morriston, Swansea?
Lastly, in paragraph 7.8 on page 6 of the Explanatory Memorandum, there are quite a few references, direct or otherwise, to the Secretary of State’s powers. Considerable influence is being granted there. The Minister might wish to indicate why that should be so. Also, in paragraph 6.21, we see the word “probably”. That is not very exact; perhaps we could have a reply on that via officials, if not directly from the Minister. That paragraph also contains the phrase “in the time available”. That seems somewhat up in the air; perhaps it is slipping through without explanation, in that sense. Time is of the essence. The Minister was persuasive and comprehensive. I conclude.
Lord Tunnicliffe (Lab)
My Lords, I, too, thank the Minister for presenting these two SIs. I welcome these instruments in relation to approval for road vehicles and, specifically, the creation of GB type approval. As a result, cars, buses and goods vehicles will be required to transition into GB type-approval schemes by no later than 1 February 2026.
I begin by asking the Minister to explain what engagement the department is undertaking with manufacturers, particularly smaller businesses, to make them aware of the new approval regime. Similarly, the instrument will make new approvals first available from 1 January 2023. Given that that is now only one month away, is the Minister confident that the DfT is fully prepared? What resources have been allocated?
Turning to a separate issue, the regulations relating to carbon dioxide emission performance standards amend a reference to an EU type approval to reflect the creation of the GB type-approval scheme. Can the Minister confirm that this aims to provide continuity, rather than a separate change of policy?
We will not oppose these regulations but I hope that the Minister can clarify these issues a little further.
Baroness Vere of Norbiton (Con)
I am grateful to all noble Lords who have taken part in this short debate. I will endeavour to answer as many questions as possible. As ever, I am fairly sure that a letter will be forthcoming afterwards because I am also fairly sure that there will more information that I need to tell noble Lords.
I will start with the noble Lord, Lord Jones, who asked for an estimate of the number of vehicles now on the road that would be covered by the 2019 regulations. There are about 4 million; basically, anything that entered into service in 2020-21 would have been covered by the 2019 regulations.
The noble Lord went on to talk about consultation, as did the noble Lord, Lord Tunnicliffe. There has been an enormous amount of consultation and engagement with the industry around type approval. It is incredibly important so, over the past two years, we have consulted with the industry—including the Society of Motor Manufacturers and Traders, which is very effective in what it does, the Motorcycle Industry Association and the Agricultural Engineers Association —and with both individual manufacturers and their suppliers, because the supply chain for vehicle manufacturing can be long. This has informed the development of the scheme as well as providing the opportunity to help manufacturers to prepare for any changes.
We also consulted formally in the summer. The feedback that we received has been incorporated into the statutory instrument. The main feedback received from the industry was that it needed more time to prepare. We were pleased to give it that; we therefore delayed by seven months the date we had proposed for new models to obtain approval. We also permitted selected waivers to run for a little longer than originally proposed, giving the industry more time to adapt.
We have been engaging with the industry on this for such a long time. For example, the Vehicle Certification Agency—the VCA—has been running workshops throughout the year to ensure that stakeholders understand the approval process and are ready for its implementation. All in all, the vehicle manufacturers are largely content with the approach and the level of continuity—this is in essence continuity—that we have provided. They are familiar with type approval as a regulatory process because they are well aware of the EU type-approval process, and they are keen that Britain continues to regulate via this mechanism rather than other mechanisms that are used elsewhere in the world. We have not specifically consulted the Mayor of London specifically. We have focused very much on consultation with the industry; it is important that we do so.
The noble Lord, Lord Jones, went on to mention the DVLA. As a former Roads Minister of three years standing, I have great respect for the work that happens in Swansea. Indeed, I have been to visit the enormous offices in Swansea where about 6,000 people work. They do a fine job. They have cleared the backlog in all areas, apart from where there are complex medical decisions to be taken; those will rely on some information coming forth from the NHS. I am really proud of the work that they have done; they have worked very hard over a long period of time.
Baroness Randerson (LD)
The noble Lord, Lord Jones, and I mentioned the powers going to the Secretary of State. Can the Minister tell us a little more about the advice that will go to the Secretary of State? It is all fine so long as we are piggybacking on EU standards, but surely the Government are not going to all this effort just to permanently piggyback on EU standards. The Government clearly want to diverge and if we are to do so, there has to be a sound technological basis for it.
Baroness Vere of Norbiton (Con)
No, that is not quite right. We are not piggybacking on EU standards, because EU standards are underpinned by UNECE standards and the UNECE has nothing to do with the EU. They underpin EU standards and will underpin our standards. Changing UNECE standards involves lengthy negotiations and discussions and technical experts all getting together to make improvements in our system.
Historically, when we go into UNECE negotiations, advice is provided to Ministers in the normal fashion with various experts saying, “Minister, this should be our negotiating position”, and we go in there and try to get our position. We are a leader in that group as we have very strong technical expertise in the field of vehicle manufacturing. When a decision is made, it is a bit like the European Commission: we are not losing any oversight at all here, because that decision would have gone through the European Commission with no oversight by Parliament either.
I am happy to write with more information as to what the process would be should the technical standards change and we need to change our type-approval system, but I cannot imagine that it would be significantly different from what already happens when we approach the UNECE to make technical changes.
The noble Lord, Lord Tunnicliffe, was right when he summed up and said that this is continuity and not a change of policy. There is no change of policy here; there is no change in terms of the carbon dioxide emissions. We are maintaining the standards for carbon dioxide emissions, and we are maintaining the standards within the type-approval system. The simple fact is that this is very technical and many of the names are changed—and no more.
I believe that I have covered engagement, so I hope that I have covered all the questions I am currently able to, but I will write a letter. I beg to move.