Lord Borwick Portrait Lord Borwick (Con)
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My Lords, I will quickly come in to comment on the amendment from the noble Lord, Lord Liddle, while first referring to my interests in the register, which I referred to in more depth at Second Reading. The comment I made, which was mentioned so generously by the noble Lord, is that his Amendment 13 talks about a “specified manufacturer”. However, there are two different ways of making an automated vehicle. One is to make it from scratch—something that Tesla does. The second is to adapt somebody else’s vehicle, as Waymo, Wayve, Oxa and other automated vehicle people do. Because the word “manufacturer” is defined in type approval legislation, I believe that those companies are not called “manufacturers” because they are adapting somebody else’s vehicle. So there is a problem in using the words “specified manufacturer” for those who are adapting other vehicles. This is all part of the immense complexity of this subject and it is not surprising that it would be easy for an amendment to fall into the wrong section if we were not very careful about it.

Lord Davies of Gower Portrait The Parliamentary Under-Secretary of State, Department for Transport (Lord Davies of Gower) (Con)
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My Lords, I am very grateful to colleagues across the House for their contributions this afternoon and for the discussions that we have had on the Bill in recent weeks. The amendments in this first group relate to the assessments we will apply both to vehicles and the corporate entities that operate and take responsibility for them.

I will begin with Amendments 14, 15, 16, 17, 18 and 19, all tabled by my noble friend Lord Lucas. I whole- heartedly agree with the points that he and the noble Lord, Lord Liddle, raised about the importance of standard setting. Indeed, we are already well established in the key international fora on these issues and are funding the British Standards Institution to help develop industry best practice. However, as always, a balance must be struck between the benefits of leading the way and the risks of acting prematurely. I absolutely acknowledge what my noble friend says about the intention of these amendments. None the less, taken at face value, these amendments risk creating an inflexible system that could hamper, rather than enhance, the UK’s international influence in this industry.

I will take each amendment in turn. On Amendment 14, it is the Government’s view that the number plate remains fit for purpose and that mandating an alternative, as yet unproven, technology would be of little value without significant investment in the corresponding roadside monitoring equipment. On Amendment 15, our policy scoping notes already set out our intention to consider passenger communication as a component of operator licensing. We believe that this is the right place to specify these types of requirements. On Amendment 16, Clause 12 requires that licensed operators oversee their vehicles and respond to issues that may arise. This means that the ability to monitor location is already implicitly required. The requirement to indicate availability is confined to automated passenger services. It is therefore disproportionate to apply it to all self-driving vehicles.

Moving on, we believe that the intent of Amendment 17 is already provided for. In order to satisfy the self-driving test, Clause 1 requires that vehicles be capable of operating safely and legally. A vehicle that was able to enter self-driving mode while aware of a safety-critical fault, such as a sensor failure, would not satisfy the self-driving test and would not be authorised.

Turning to Amendment 18, self-driving vehicles must be capable of operating using the road infrastructure as it exists today. This will necessitate the ability to recognise the range of signs currently found on our roads. Adapting road signs or developing other way-markers to accommodate self-driving vehicles is therefore, in our opinion, unnecessary.

Finally, we believe that Amendment 19 is already largely addressed by the stopping powers provision in Clause 57. I hope this also addresses the point raised by my noble friend Lord Holmes of Richmond. I will finish on this section by assuring my noble friend Lord Lucas that we will get a prompt response to his email regarding the Eastbourne scheme.

I turn now to my noble friend Lord Holmes of Richmond’s Amendment 55C. The benefits of harmonisation must be considered carefully against the impact on innovation, costs and cybersecurity. A harmonised interoperability standard will be lengthy and complex to negotiate. Doing so quickly risks picking the wrong technologies and falling behind.

Amendment 28, tabled by the noble Lord, Lord Liddle, risks confusing the role of the no-user-in-charge operator with that of the authorised self-driving entity or ASDE. Before a self-driving feature can be authorised, the ASDE must demonstrate the technology can deal safely with faults by executing a minimum-risk manoeuvre and bringing the vehicle to a safe stop. We would not wish to undermine this key ASDE responsibility by suggesting that a no-user-in-charge operator can compensate for inadequate design in the technology. Operators will of course be subject the ongoing requirements of their licences. We will have broad powers to ensure these are followed.

Moving on to Amendment 13, I reassure the Committee that all manufacturers will be subject to the same high expectations and robust requirements, regardless of who they are. To arbitrarily constrain the pool of manufacturers which can be authorised would risk stifling innovation. Our focus is rightly on ensuring that corporate entities meet the appropriate standards of competence, repute, financial standing and technical capability. The powers in Clauses 6 and 91 already make ample provision to set such standards. On the point the noble Lord raised about national security, such issues could be taken into account in a consideration of the good repute requirement.

On Amendment 26, Clause 10 already requires that the register of authorisations be made public. In line with standard practice for official government publications, I can confirm that this will be done online. The amendment is therefore unnecessary.

Turning to Amendment 43 in the name of the noble Baroness, Lady Randerson, we intend to explore technical solutions to ensure that automated vehicles cannot operate unless they can do so safely. For example, we could require a vehicle to check it has the latest software update before the self-driving feature can be engaged. Such provisions are possible under the powers of the Bill. Due to the technical nature of such requirements and the continued development of the technology, this is best achieved through secondary legislation. We also have the safeguard that, where an authorised-self driving entity ceases to assume responsibility for the vehicle, the vehicle’s authorisation would be withdrawn. In such a case, standard consumer protections would apply. On the specific question of responsibility for safety- critical updates, this sits with the authorised self-driving entity as the body accountable for a vehicle’s safety.

This brings me to the noble Baroness’s Amendment 22. I am conscious that the noble Lord, Lord Berkeley, also touched upon this issue. The Bill does not prevent foreign vehicles from being authorised as self-driving in the UK. However, they will naturally need to demonstrate that they are capable of operating safely and legally on our roads. Requirements to be overseen by an appropriate authorised self-driving entity and licensed operator will also apply as usual. Any non-authorised feature would be classed as driver assistance. The driver could therefore be charged with motoring offences if they divert their attention from the road. Of course, appropriate information will need to be provided at the border. We are working with international partners to develop guidelines to facilitate automated vehicles passing from one jurisdiction to another, including as part of the relevant UN expert group. In the interim, we expect other jurisdictions to apply similar safeguards as we intend to, for example, that vehicles’ systems be designed to deactivate outside of their authorised geographic area. I hope this offers the noble Baroness a sufficient explanation of the position.

On Amendment 1, tabled by the noble Baroness, Lady Bowles of Berkhamsted, the Government agree that real-world testing will play an important role in ensuring the safety of self-driving vehicles. That is why we are already funding real-world trials here in the UK. Setting requirements for real-world testing through the powers in Clauses 5 and 91 will allow these requirements to evolve alongside the standards they assess. Regarding the “substantial” amount, I would also add that it is ultimately the quality of testing that matters, rather than the quantity. This point was made very well by the noble Baroness, Lady Brown of Cambridge. For example, 100 hours of rush-hour driving is likely to be more revealing than 1,000 hours of navigating empty streets. Again, these nuances are best captured in secondary legislation.

Moving finally to the noble Baroness’s Amendments 20 and 27, the Bill leaves flexibility for financial standing to be demonstrated through insurance cover—a model we refer to in our policy scoping notes. While I believe it would be too specific to make a reference on the face of the Bill, it will be appropriate to expand on this issue as part of authorisation and licensing requirements. I will welcome the noble Baroness’s expertise if she wishes to make representations at that stage. Lastly, I can confirm the Government’s wider consultation on insurance captives is due to be published in the spring. On that basis, I hope the noble Baroness will be prepared to withdraw her amendment.

Lord Lucas Portrait Lord Lucas (Con)
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My Lords, I was struck by my noble friend’s answer on Amendment 43. Is he saying that, should one of the small innovative companies we have in the UK go bust, anybody who has bought their product will immediately find it is valueless because they are no longer allowed to use it? That would seem a considerable disincentive to buy kit from small British companies.

Lord Davies of Gower Portrait Lord Davies of Gower (Con)
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I am sorry if the noble Lord took that view of it, but that was not my intention.

Baroness Bowles of Berkhamsted Portrait Baroness Bowles of Berkhamsted (LD)
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My Lords, I thank the Minister for his responses. At this stage, of course, everything is probing. I possibly still entertain a hope that we can have some little light-touch mentions that are not overbearing somewhere in the text. Maybe we will return to some of these issues on Report.

There are one or two things other noble Lords have said that I would like to touch on. The noble Lord, Lord Lucas, mentioned connectedness. We are falling into a bit of a trap if we start talking about the connectedness of automated vehicles, because the big prize is the connectedness of all vehicles—those which are driven and those which are automated. That is where the real benefits to traffic management and the economic benefits reside. That is a much bigger scheme of interconnectedness, and we are doing ourselves a disfavour by almost sidelining the connectedness and connected car issues as if they are something small and of less importance than the big goal of automated vehicles. In the near term, connectedness is a lot more relevant and moves into what is happening with automated vehicles. We should try to think of it as more of a whole.

I am aware on the simulation aspects, which were addressed, and that we cannot have millions of hours of road driving. Simulations are important and it is an iterative process between simulated tests and road tests. I am perhaps reassured that that is what is in mind. I still do not like the vision that, sometime in the future, it might happen that there are absolutely no road tests—even small ones. Maybe it is wrong to try to insert “substantial”, implying that—this is not what I intended—it would be more than the simulated tests. I still think there should be a significant amount in there for a very long time into the future.

The noble Lord, Lord Liddle, said that his main interest is safety. Certainty is quite fundamental to safety. There is lots more to get to, so I will not say any more now. With the notion that I might return with this in a gentler form on Report, I beg leave to withdraw my amendment.

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Baroness Randerson Portrait Baroness Randerson (LD)
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My Lords, I dare say the noble Earl, Lord Lytton, will be pleased to know that I have amendments later that relate to the need to improve things such as the quality of road surfaces for all this to work smoothly.

As several contributors have emphasised, this group points to the limitations in the narrowness of the Bill’s scope. My noble friend Lady Bowles’s amendments address the limitation to public roads and highways, rather than to the marginal areas. The problems of this limitation have been addressed by organisations representing cyclists, for example, and other more vulnerable road users, as well as organisations already engaged in the automated delivery sector. If you think about it, when you have a product delivered to your home by a drone, in most cases that drone is required at the last point to leave the highway or pavement and go on to private land.

This is important. As a nation we are very concerned about road safety and prize it very highly. Although there have not been many improvements to road safety in the past 10 or 15 years, we have previously been very proud of an improving record on safety, and public expectations remain there. If you think about the process of accidents and injuries on the roads, many injuries, and much physical damage to buildings, are caused by accidents that take place off the highway, when a swerving vehicle hits a boundary fence or a house, for example. Those who have spoken, including the noble Baroness, Lady Bennett, have referred to the high number of injuries to children. This will be at the forefront of public concern in judging automated vehicles.

My noble friend also referred to the coexistence of traditional vehicles and automated vehicles. For possibly two decades we will have a hybrid system, so any expectations have to take that into account.

I turn now to the amendments to which I added my name, which are amendments in the names of the noble Lords, Lord Hampton and Lord Liddle. The Law Commission reports emphasised that the public have high expectations of road safety. They used the point that there is strong support among the public for criminalising those who do not drive safely, and they transferred that concept into the situation in relation to support for automated vehicles. The experience in San Francisco illustrates the dramatic impact of accidents involving automated vehicles on support for them and trust in them. There is support for the progress of these vehicles, and the concept of them, across the Chamber. Therefore, it is so important that the Bill gets the approach right.

I support several amendments in this group, all of which are aimed at raising safety standards. The definition of safety must be more ambitious than that set out in this Bill. The Royal Society for the Prevention of Accidents gave evidence to the Transport Committee in the other place and made it absolutely clear that the expectation has to be much better than just improving on average. It must be more ambitious. It must be an improvement in safety across the board, not just an “on average” approach to it.

I am well aware that there are international definitions of safety in this context, and I am sure the Minister will explain where the Government’s definition sits within those international expectations. To my mind, an acceptable standard is just not adequate, because you could have a situation in which the average safety has improved but, when you look at the detail, all the improvement lies in the reduction in motorway accidents, and to offset that there is an increase in accidents involving cyclists, pedestrians, older people or disabled people. It could be the more vulnerable road users who are badly impacted, so I am interested in the Government’s concepts in relation to this, and how they intend to approach this issue in detail.

Lord Davies of Gower Portrait Lord Davies of Gower (Con)
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My Lords, as has already been mentioned, this group relates to the standard of safety to which we will hold self-driving vehicles. Clause 1 establishes the concept of the self-driving test: the basic principle that a vehicle must be capable of travelling safely and legally to be authorised as self-driving. With Clause 2, we then establish that the application of the self-driving test is to be informed by a statement of safety principles. The Government will be obliged to develop those principles in consultation with relevant stakeholders and to lay the statement before Parliament before any self-driving vehicles can be authorised. Noble Lords will recall that this approach—in which the safety standard is established in statutory guidance—was recommended by the Law Commission. I also recognise the desire to see a standard articulated in the Bill. That is the rationale behind the safety backstop in Clause 2(2), which states that the safety principles

“must be framed with a view to securing that road safety in Great Britain will be better”

due to the use of self-driving vehicles.

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Lord Tunnicliffe Portrait Lord Tunnicliffe (Lab)
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I am not sure I heard the Minister. Did he say that, of the three tests that the Low Commission proposed, the Government’s test of “better than average” was the highest standard?

Lord Davies of Gower Portrait Lord Davies of Gower (Con)
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What I said was that, naturally, I believe our ambition is the right one. As the noble Lord himself touched on, it is the highest of the three standards consulted on by the Law Commission. It gives a straightforward—

Lord Tunnicliffe Portrait Lord Tunnicliffe (Lab)
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I am sorry to interrupt, but the Law Commission, in the next paragraphs, says that the “competent and careful driver” test is the highest standard, not the Government’s aspiration of at least on average. We can leave it for now, and the Minister can write to me with an apology, or I can write to him with an apology, if one of us is wrong.

Lord Davies of Gower Portrait Lord Davies of Gower (Con)
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With respect to the noble Lord, I think there is a misunderstanding here and he thinks that we have picked the average. Perhaps we can clarify that with him at a later date.

To continue, it gives a straightforward, publicly understandable indication of the level of safety that the Government are looking to achieve through the more formal mechanisms we are establishing in the Bill. However, to incorporate this language as proposed would, once again, override the principle established by the Law Commission—in other words, that the appropriate level of safety is ultimately determined by public acceptance of the risk, and that the safety standard should be set out in statutory guidance. That then allows the standard to be evolved as necessary on the basis of consultation.

I add that the wording of the amendment would appear to require a standard even higher than that of the safety ambition. While I know that this is well-intended, we must also be mindful of the risk of stifling genuine near-term safety improvements by setting an unnecessarily stringent target early on.

Amendment 12, tabled by the noble Lord, Lord Tunnicliffe, looks to make the statement of safety principles subject to the affirmative procedure. While we acknowledge the arguments that he puts forward, it is the Government’s view that the Highway Code remains the most salient precedent for the safety principles. It follows that a negative procedure, comparable to that applied to the Highway Code, is most appropriate in this instance.

Turning to Amendment 8, the use of the phrase “significantly better” is, again, open to interpretation and risks introducing ambiguity. More pertinently, the second part of the amendment, tabled by the noble Lord, Lord Hampton, looks to ensure that improvements in road safety apply to all road users. The noble Lord, Lord Liddle, and the noble Baroness, Lady Bowles of Berkhamsted, also look to explore a similar point in Amendments 6 and 7. I can confirm that, just as in the Highway Code, the current reference to road safety already applies to all road users. Similarly, it is established that “road” encompasses pavements and similar areas; road safety is therefore not strictly confined to incidents occurring on the carriageway itself.

On the specific comments from the noble Baroness, Lady Bowles of Berkhamsted, all vehicles subject to authorisation as self-driving vehicles must be intended or adapted for use on roads. Although private driveways are mostly out of scope, the authorisation can recognise use in places other than roads, as referenced in Clause 4(4). The use of vehicles on private land is covered by other legislation.

Returning to the issue of equality and fairness, I can confirm that it will of course be explicitly considered during the development of the statement of safety principles. The granting of self-driving authorisations will also be subject to the public sector equality duty, and we intend to make an assessment of fair outcomes part of the authorisation process. I believe that the remainder of Amendment 6 is already provided for by Clause 1, which specifies that the assessment of a vehicle against the self-driving test must refer to

“the location and circumstances of … intended travel”.

A further reference in Clause 2 is therefore unnecessary.

On Amendment 10, we already envisage that the statement of safety principles will reflect the simultaneous presence of both self-driving and conventional vehicles. Indeed, this is implicit in the requirement set out in Clause 1(3). However, we also wish to preserve flexibility for the principles to cover scenarios where only automated vehicles are present. The amendment would preclude that option.

On Amendment 2, in the spirit of the initial comments by the noble Lord, Lord Tunnicliffe, I begin by offering a brief clarification. His comments slightly confused the concepts of a no-user-in-charge vehicle and a user- in-charge vehicle. A no-user-in-charge vehicle can complete a whole journey in self-driving mode, and any human in the vehicle is merely a passenger; it will never need to hand back control. A user-in-charge vehicle can complete only part of a journey in self-driving mode, so a human will be expected to take control of the vehicle to complete the journey. The Bill requires that this person be in the vehicle and in a position to assume control; for virtually all current use cases, that will mean being in the driving seat. However, there may be some future use cases and designs—perhaps in larger vehicles, such as buses—where control could be exercised from multiple places within the vehicle.

The amendment, as drafted, would allow for human-controlled vehicles to be considered autonomous, provided that the human did not sit in the driving seat. One of the key concepts of the Bill is that liability should be transferred away from the human driver when a self-driving feature is engaged. It would clearly be inappropriate to do that in a situation where a human still exercised control over the vehicle, regardless of their physical location.

Finally, I will briefly address the question from the noble Lord, Lord Berkeley, about drivers under the influence. The Bill is clear that the user-in-charge immunity does not extend to the condition of the driver. The person acting as the user in charge in a vehicle could therefore be prosecuted for being under the influence in the same way as a conventional driver. This makes sense, considering their responsibility to resume control if directed to. As I have said, when a no-user-in-charge vehicle is driving itself, everyone in the vehicle is considered simply a passenger. Just as for passengers in conventional vehicles, there is no requirement that those individuals be in a fit state to drive. On that basis, I respectfully hope that the noble Lord, Lord Tunnicliffe, will see fit to withdraw Amendment 2.

Lord Tunnicliffe Portrait Lord Tunnicliffe (Lab)
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I thank the Minister for his response. I shall read it with enormous care. Perhaps we will have to meet in order to achieve a common view. With that, all that formality requires is for me to beg leave to withdraw Amendment 2.