Infrastructure Bill [HL]
Baroness Kramer Excerpts(10 years, 5 months ago)
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Baroness Kramer
That it be an instruction to the Grand Committee to which the Infrastructure Bill [HL] has been committed that they consider the bill in the following order:
Clause 1, Schedule 1, Clauses 2 and 3, Schedule 2, Clauses 4 to 10, Schedule 3, Clauses 11 to 23, Schedule 4, Clauses 24 to 26, Schedule 5, Clauses 27 to 32.
Infrastructure Bill [HL]
Baroness Kramer Excerpts(10 years, 6 months ago)
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The Minister of State, Department for Transport (Baroness Kramer) (LD)
My Lords, it is four years since the general election, when the coalition partners made a pledge to the British people to cut our deficit and get our economy growing once again. I am pleased to say those promises are very evidently being delivered. From the start we were clear that poor infrastructure in our country was among the biggest obstacles to growth.
We set out the most ambitious programme of investment and improvement for generations, investing a record £100 billion in schemes to improve our roads and railways, build affordable homes and boost our internet access. After decades in which successive Governments neglected our infrastructure, we also had to find ways to modernise the delivery of that infrastructure, to overcome administrative hurdles and to accelerate planning. This Bill will establish a new framework to allow stable long-term funding, to get better value for money and relieve unnecessary red tape. It will improve planning processes and allow us to get on with our building programme. It will help us to direct funding towards the best projects, improving returns and creating the right conditions for sustainable growth. It will boost jobs and economic competitiveness across areas such as transport, energy and housing, and it will speed up infrastructure development while ensuring that communities remain involved.
Your Lordships will be aware that the Government have committed more than £24 billion to upgrade England’s strategic road network between 2011 and 2021. We are also investing in maintaining our network, resurfacing 80% by 2021. We want roads to be in top condition to keep traffic running smoothly and are working with industry suppliers to accelerate delivery of road renewal. We are making the biggest investment in roads since the 1970s. Our national road network is being transformed to provide a world-class strategic network, tackling congestion, improving reliability and supporting jobs and growth.
Part 1 of the Bill will turn the Highways Agency into a government-owned company, with the stable, long-term funding needed to plan ahead effectively. We are also introducing in the Bill the framework for a roads investment strategy. The strategy will be agreed by the Government and the new company. It will set out the Government’s longer-term strategic vision for the strategic road network, investment plans and performance criteria, along with the necessary funding, just as happens for the railways. The new delivery model will allow the company to better prioritise its spending in terms of both maintenance requirements and capital demands. This is bound to lead to better asset management than we have now.
These measures are expected to save the taxpayer at least £2.6 billion over the next 10 years and will make the new arm’s-length company more directly responsible for delivery. Performance will be assessed through an independent monitor specialising in roads, based in the Office of Rail Regulation. Road users will also be given a voice through a road user watchdog based in Passenger Focus.
It is vital that we invest in our infrastructure. The Government have made a huge financial commitment to 2021. Now we need to get the best return on that investment, and putting an end to the stop/start nature of managing the supply chain is essential. To give but one example, since the 1950s it has been planned to upgrade the A453 from Nottingham to the M1 to a dual carriageway. Proposals have started and stopped four times in the intervening years as Governments have changed their minds and gone back to the drawing board. It was only in 2012 that the work finally started. It is important that we end stop/start. It is also important that we look after our infrastructure.
Part of looking after our infrastructure is controlling the invasive non-native species that pose serious threats. The cost to the transport sector from invasive non-native species in Great Britain was estimated in 2008 to be about £81 million a year. The total cost to the economy of invasive non-native species is estimated at £1.7 billion per annum. This burden affects agriculture, horticulture and infrastructure.
In contrast to powers available under animal and plant health legislation to combat disease and pests, the nature conservation bodies have no powers to require landowners to act or powers of entry to carry out work themselves in respect of invasive non-native species, and they have to rely on reaching voluntary agreements. While most landowners are willing to enter into voluntary agreements, experience has shown that about 5% are not. The changes included in Part 2 will give powers for Ministers and nature conservation bodies in England and Wales to make species control orders that will require landowners to take action against invasive non-native species or permit the bodies to do so.
Early eradication is key to reducing eradication costs. The cost of eradicating water primrose has been estimated to be £73,000 if we eradicate it at its initial stage but more than £240 million if we allow it to become widespread in Great Britain.
When planning nationally significant infrastructure projects, it was never the aim to make the process burdensome for obtaining further development consents. Part 3 shows the Government’s commitment to increasing the pace of delivery for new developments and to manage our land assets more effectively. The Government are committed to securing investment in new nationally significant infrastructure projects as part of their efforts to rebuild the economy and to create new jobs. We want to speed up the process and get Britain building for our future.
Applications are large and detailed documents—up to 50,000 pages or more. Allowing inspectors to be appointed once the application has been accepted, rather than once it has been publicised, will give inspectors an additional six to eight weeks to become familiar with the issues. In addition, we will allow two inspectors to be appointed as examiners: at present one, three, four and five are allowed but not two. Since the workload is often too much for one inspector but not enough for three, around £200,000 a year can be saved by developers if an examination is conducted with two inspectors rather than three.
Currently, the process for making changes to a development consent order once consent has been granted is lengthy. The process is the same as if a completely new application is being submitted. A simpler process is required but only for very minor changes. This the Bill will now allow.
It is equally important to improve the procedure for discharging planning conditions so that local projects can proceed without unnecessary delay. The Bill introduces a deemed discharge for certain types of planning conditions which will help to ensure that conditions which require the approval of the local planning authority are discharged in a timely manner so that development, including new housing, that has already received planning permission can proceed, providing much needed certainty for applicants as to when decisions can be expected.
The issue of improving the outcomes for applicants around discharge of planning conditions is not new. A key recommendation of Joanna Killian and David Pretty’s comprehensive review of the planning application process in 2008 was that the Government should seek to speed up the process for discharging planning conditions. This included looking to introduce a default approval.
One of the ways in which we can stimulate the economy is by getting better use of public sector land assets by utilising surplus land that the Government own. The Homes and Communities Agency, the HCA, is a non-departmental public body that funds new affordable housing in England. We want to make it easier for the agency to work with local partners to create new affordable homes and thriving neighbourhoods.
The new public sector land programme from 2015-16 will see the transfer of a significant amount of surplus land from government departments and government arm’s-length bodies to the HCA. Land transfers from arm’s-length bodies can be administratively burdensome in terms of time and cost because they cannot be made to the HCA directly; instead the land has to be transferred first to a parent government department. We would like to ensure that in the future these transfers can be made more quickly and with reduced administration, so the Bill allows for a direct transfer to the HCA.
The Bill also corrects what was frankly an oversight in the legislation that set up the Homes and Communities Agency, the Greater London Authority and the mayoral development corporations. At present when these bodies purchase land they, like every other government body, override existing easements. However, unlike every other government body they cannot sell the land with the override in place. This Bill eliminates this anomaly, although it will not be used by bodies such as the Forestry Commission or National Parks, contrary to some recent, wholly unfounded, speculation. This applies only to private rights and not to those that are public.
The purchase and indeed development of property requires good, timely, accurate information. The Bill therefore sets up the framework for the Land Registry to modernise and digitise property searches. It will centralise and digitise local land charge information from the 348 local authorities that currently hold and deliver it. The result will be a far more efficient and cheaper service. The Land Registry will set a standardised national fee and turnaround time in contrast to the existing postcode lottery. Fees currently range between £3 and £96. A single source for improved access to property information will support a more streamlined conveyancing process and improve the ease of registering a property in England and Wales. We want our renewable energy developers to work with local communities, allowing them to share in the benefits of renewable energy infrastructure projects. Part 4 would give communities the right to invest in their local renewable electricity schemes, transforming how they engage in these types of projects. It would give them the opportunity to have a real stake and sense of ownership in projects happening on their doorsteps.
The measures that I have discussed above are on the face of the Bill. In the Queen’s Speech and in other discussions, the Government have however drawn attention to other measures that are not on the face of the Bill at present but may be included by future amendments. These measures have specifically been: enhancing the United Kingdom’s energy independence and security by opening up access to shale and geothermal sites, maximising North Sea resources, and the construction of zero-carbon homes.
A third of UK energy demand is met by gas. If we do not develop shale, by 2025 we expect to be importing close to 70% of the gas that we consume. The Government therefore support the development of our own indigenous energy sources in a safe and sustainable manner. We believe that shale gas and oil and deep geothermal energy may hold huge potential for adding to the UK’s energy sources, helping to improve energy security, create jobs and meet carbon targets. We consider that the existing procedure for gaining underground access to be burdensome and unfit for new methods of drilling. A public consultation on underground access was opened on 23 May and will conclude on 15 August.
Subject to that consultation, future amendments to the Bill would provide companies with access for shale and geothermal extraction 300 metres or more below the surface without requiring individual landowner permission. In return, a payment would be made to the community. As I said, the Government’s consultation on this policy continues until 15 August 2014 and the legislation is entirely dependent on the outcome of that consultation.
I am well aware, however, that some noble Lords are concerned about the potential environmental impact of extraction from shale. The UK has over 50 years’ experience of regulating the onshore oil and gas industry. More than 2,000 wells have been drilled onshore during that time. The Government are confident that the UK oil and gas industry, including shale gas, will continue to be well regulated and any risks, particularly environmental risks, will be effectively mitigated.
The UK oil and gas industry is of national importance; it makes a substantial contribution to the economy, supporting around 450,000 jobs, and had record capital expenditure in 2013 of around £14 billion. Oil and gas will continue to be a vital part of the energy mix as we transition to a low-carbon economy, with indigenous oil and gas production supplying the equivalent of about half the UK’s primary energy demands.
Sir Ian Wood’s independent report in 2014 recommended changes to the recovery and stewardship regime, estimating that full and rapid implementation would deliver at least 3 billion to 4 billion barrels of oil equivalent—more than would otherwise be recovered over the next 20 years. The report, in turn, estimates that this would bring over £200 billion additional value to the UK economy.
The Government accepted Wood’s recommendations in full in February 2014, and plan to introduce measures in the Bill to put the principle of maximising economic recovery of petroleum in the UK into statute. We also intend to introduce a power so that the costs of funding a larger, better-resourced regulator can be paid for by industry rather than by the taxpayer as is currently the case. This legislation is still being developed and will be made available at the earliest opportunity. It is our intention to introduce it before the end of Committee.
The Government have made a public commitment to ensure that new homes in England are zero carbon from 2016 onwards. Emissions from all homes represent over one-quarter of the total annual output of carbon emissions in the United Kingdom. It is crucial that we reduce this. The key consideration for the Government is to ensure that environmental policies are balanced against the need for continued economic growth in the housing sector.
The average bill for heating and lighting an older home is around £1,200 a year. In new homes, the amount would be less, and government changes to the building regulations have already reduced this amount by £200, with a further tightening of regulations having just come into force. New homes will be required to reduce all carbon emissions from energy used to heat and light those homes to zero. There will be a stronger energy-efficiency requirement, met by insulation measures, which may be augmented by on-site renewable energy measures such as solar panels. Where it is not possible to abate all these carbon emissions through energy efficiency measures—for example, through insulation or on-site renewable energy measures such as solar panels—the Government will allow developers to off-set those emissions that represent the difference through “allowable solutions”.
The principle of allowable solutions has been broadly accepted by the development industry as the most cost-effective way of delivering zero-carbon homes. A typical allowable solution measure might be either the retrofit of existing homes, particularly through solid wall insulation, or financial contributions for investment in low-carbon or renewable energy infrastructure. An explanation of how these schemes may work will be available for Committee stage.
In summary, the measures in the Bill will help create a better environment for investment in infrastructure across the transport, energy and land development sectors. The Government firmly believe in making it easier, quicker and simpler to get Britain building for our future. The Bill will help us build a stronger and more competitive economy that creates jobs, and provides families and businesses with better and reliable infrastructure to help us compete in the world.
Baroness Kramer
My Lords, this evening really has been a testament to the range of knowledge in this House. I thank all noble Lords, but give a special note of thanks to two who have not spoken in the debate, my noble friends Lady Verma and Lady Stowell, who are supporting me in taking the Bill through the House and whose support, both moral and in terms of knowledge, is frankly invaluable. I will try to respond to as many questions as I can, but there have been so many that I already know that failure is stamped upon me, and I will follow up in writing where I am unable to cover issues here on the Floor.
The noble Lord, Lord Adonis, opened the debate. I think he was grudgingly supportive of the Bill, but I have to say that some of his comments seemed to ignore the fact that he was part of a Government for 13 years who invested very little in infrastructure. To talk about lack of investment in new power generation, suddenly having found the light when the coalition Government are in place and seen the need for investment, was a little strange, I thought. I will not reiterate the very extensive investments that the coalition Government are making but, as I said earlier, there has been £100 billion for roads, railways, building affordable homes and boosting the internet, as well as a lot of private money going into areas such as power generation. I thought the noble Lords, Lord Teverson and Lord Jenkin of Roding, answered the question so well that I will just pray in aid their comments and add mine from the Queen’s Speech rather than continue with that point.
More generally, I say to the noble Lord, Lord Skidelsky, that we are taking on one of the largest infrastructure investment projects in a generation, as I have just described. The purpose of the Bill is to ensure that there are delivery mechanisms that are fit for purpose to deal with that. That is the theme that links the various parts of the Bill and by definition the range is broad.
The noble Earl, Lord Lytton, asked whether infrastructure was more than roads. My goodness, just looking at the Bill makes it very clear that it is. Of course, there are many other avenues of opportunity. We have talked extensively about our investment in rail, sustainable transport and a wide range of other necessary infrastructure.
I will say a word on procedure, if I may. It is difficult to go through this in detail without taking up too much time. We are very much looking forward to detailed scrutiny. Many noble Lords, including the noble Lord, Lord McKenzie, just a moment ago, gave a very clear indication of wanting to go through the Bill in great detail in Committee, and we welcome that. We think that is a very important part of the role of this House.
I will provide some clarification for the noble Lord, Lord Jenkin of Roding. It is our intent, subject to the usual channels—and I say this to those who have looked at Forthcoming Business—that further time will be allocated after the Summer Recess to ensure effective debate on all the clauses of the Bill. We recognise that that is important. I reassure noble Lords that, where important decisions have not yet been finalised, the House will be given clear guidance and information about our intentions in Committee. A number of people asked why the consultation will start in June or August. Obviously, the secondary legislation documents that are to be consulted on will be very important in informing the debate in Committee and the other stages in this House.
Baroness Miller of Chilthorne Domer
Before my noble friend leaves the point of procedure, perhaps she shares my disappointment that the noble Lord, Lord Hunt of Chesterton, who brought up procedure, is not in his place to hear her remarks on the procedure of the Bill.
Baroness Kramer
I hope that my noble friend will encourage him to read my comments.
Moving on to more substantive issues, we had actually very little discussion of shale gas. My noble friend Lord Teverson spoke about geothermal extraction. I think that is rather positive. There is clearly an appetite in this House to ensure that this is a successful project. I know that many people are waiting for the detail, and that is exactly right. I would encourage anyone with an interest in this area to look at the consultation that is under way until 15 August because they may wish to participate in it as well as use it to inform themselves of what may happen, since the Government will not be making their final decisions until that consultation is complete and its implications are understood. We do not want to prejudge.
My noble friend Lord Teverson asked for more information on geothermal. I suspect that he knows this area far better than I do, but I remind him that geothermal power projects are eligible for support through the renewables obligation, and that under the contracts for difference the department has set a final strike price for geothermal power of £145 per megawatt hour until 2016-17 and £140 per megawatt hour thereafter. Indeed, there are a lot of measures to exploit geothermal, of which I think everyone recognises the potential.
In the same vein, my noble friend Lord Purvis mentioned the Wood review. We recognise that the oil and gas industry in the UK is of national importance and will be a vital part of the energy mix. While investment levels in the UK continental shelf are rising and near-term prospects are strong, there are new challenges for exploration and production. The environment is, frankly, very different from the circumstances when production peaked approximately 15 years ago. We will be responding very shortly to the Wood review. Details of how this will be carried forward will be available in Committee—I think my noble friend might have thought it would be later but it will be in Committee.
On zero-carbon homes, my noble friend Lord Teverson constantly reminds us that as well as talking about the supply side for energy we must focus on the demand side. This part of the Bill is absolutely critical in this area, and we will see those clauses before the Summer Recess. We recognise, as I suspect all noble Lords did in their speeches, that making all homes zero-carbon “on site” is sometimes not physically feasible or cost-effective for housebuilders. There are technical limits. Of course, we will be exploring the whole issue of allowable solutions. My noble friend Lord Teverson said he was concerned that we were focusing on potential exemptions for small sites, but we must recognise that small housebuilders face a very different economic framework from that faced by the big housebuilders, lacking economies of scale. But it is an important industry throughout the UK and we rely on it heavily for housebuilding in this country, and we must always keep in mind that the industry needs to be successful.
On roads reform, there was a very wide range of questions. A number of noble Lords, including the noble Lords, Lord Whitty and Lord Adonis, and my noble friend Lord Bradshaw—and there may have been others—talked about the importance of ensuring that reforms to the Highways Agency were seen within the context of spending on local authority roads, particularly the maintenance of those roads. It is obviously a very important point. Your Lordships will know that the Government are investing more than £6 billion in this Parliament—£12 billion in the next—on highways maintenance for strategic and local roads, enough to resurface 80% of the national road network and fill 19 million potholes a year on local roads. I also want to make it clear that there are benefits from that integration between the strategic highways network and local roads that come from our proposals for changes to the Highways Agency. The licence agreement for the reformed Highways Agency will include a duty to co-operate that will foster and improve partnership working with local authorities.
The new company will be a traffic authority and have the same legal responsibilities to ensure that traffic runs smoothly on its own network and the local network. These changes will strengthen the interplay between local authorities and the Highways Agency.
Lord Adonis
The Minister just referred to the “new company”. Many noble Lords in the debate asked whether we are talking about a company or companies because the Bill says “companies”. Do I take it from what the Minister just said that it is the Government’s intention to set up just one highways company?
Baroness Kramer
Yes, it is the Government’s intention to set up just one company. It is standard template language in legislation, I understand, to create the option of further entities. It has no sinister meaning at all behind it. The intention is for a single company, but of course the lawyers always think about what-ifs in the most extraordinary way. I guess we did not really kick back against that but, yes, it is one company.
A number of your Lordships seemed to think that we might be looking at privatisation. Indeed, I was not sure whether or not the noble Lord, Lord Adonis, was proposing that, but we are certainly not proposing it on this side. This will be a company with a single shareholder, the Secretary of State. Any change to that would require primary legislation, so there is no backdoor mechanism.
Baroness Kramer
A number of other noble Lords asked whether the body would go out and seek private finance. It could do so only with the authority and approval of the Secretary of State, so it is no different from the current situation of the Highways Agency. The Government do not anticipate that that is what it will do. Quite frankly, borrowing through government costs significantly less, and this is an on-books entity. That is not something that this is meant to facilitate, if that is helpful.
Lord Skidelsky
Does the Minister expect that the Government will in fact borrow for their trunk road programme?
Baroness Kramer
I am expecting that the Government will borrow to fund the SHC—I hesitate to use the words “in exactly the same way”, but they will have a commitment, if you like, to the funding stream as a result of the roads investment strategy. They will fund the SHC in the same way as they would in effect have funded the Highways Agency. It is not a change. I understand that the noble Lord, Lord Skidelsky, would like to see the entity going out directly to the bond markets itself, but that is not anticipated; it could do so, but only with the approval of the Secretary of State.
Lord Skidelsky
But it is anticipated that the Government will fund it by their own borrowing; is that right?
Baroness Kramer
The noble Lord is talking to someone who does not understand quite how the government books work, but I do not recognise government borrowing being segregated into line items. However, I will follow up on that and write to the noble Lord before I tangle us in something that I have not explored in such detail. If the noble Lord is looking for imputed returns, we can discuss all that later.
The noble Lords, Lord Whitty and Lord Judd, raised the issue of Passenger Focus as a consumer watchdog. It strikes me as a superb representative of the road user. One of your Lordships suggested that the AA or other existing bodies act as a voice for the road user, but they tend to act as a voice for a limited number of views, typically those of car drivers. There are many other road users, and it is important that a much broader sweep, including cyclists, get represented. Using Passenger Focus, with its consumer skills, strikes me as a very important mechanism.
The noble Lord, Lord Whitty, and others also asked whether the Office of Rail Regulation was an appropriate body. It will act as a monitor, not as a regulator; that is an important distinction. The logic follows these lines. The SHC does not require an economic regulator in the way that Network Rail does. It is not dealing with track access charges and the users of the system are not paying in the way that passengers do, so there is really no role for an economic regulator here. There is not a number of TOCs all in competition with each other and with a complex relationship with Network Rail. It will advise the Secretary of State, who will then be able to enforce. It will monitor the operations of the new company.
Lord Berkeley
The noble Baroness is absolutely right in what she says. On the other hand, one of the roles of the rail regulator is to regulate the efficiency and costs of Network Rail. Would it not be a good idea to have some independent monitoring of this new company’s costs in the same way?
Baroness Kramer
The monitoring will indeed be there. That is crucial because of the way in which the SHC is being constructed.
The noble Lord, Lord Adonis, asked: where on earth do you get those savings from? It is covered in detail in the impact assessment and business case published by DfT on 6 June. It is important to understand that certainty of funding, which will come out of the road investment strategy, combined with the arm’s-length relationship, gives us a structure which is similar enough to the structure which has worked effectively in the rail industry. For example, the Government have committed £24 billion to road investment until 2021. Far more detail on all of this will come out of the road investment strategy.
The road investment strategy is set up in such a way that once established, if a future Secretary of State wants to change it, he or she obviously could—we cannot bind a future Parliament—but it would have to be done transparently, publicly and with consultation. Such pressures are an inhibitor which provides enough satisfaction to the industry to understand that it can look with reasonable certainty over the long term for the funding to be available. That leads to efficiency. We expect the SHC to approach asset management in a different way because it has such clear strategy and certainty of funding. It will also be set up as a company, with the roles that companies have, with its directors and chief executive. The sole shareholder will be the Secretary of State. I think that it will achieve its purpose. One could go over the top and try to reinforce that, but the question is: is that sufficient for the purpose to be achieved? If it is, that is the point at which we should stop.
Yes, the SHC will be subject to the Freedom of Information Act, so there should be no concern on the issue. I have addressed the issue of multiple companies. My noble friend Lady Miller of Chilthorne Domer mentioned—I am told that I have only two minutes left. Is that seriously true? If I have only two minutes left, I shall do one thing which is terribly important. I switch completely to address the issue that has been floating through the media and mentioned today: concern that land transfers could affect the Forestry Commission and the national parks. I addressed that issue briefly at the very beginning of my speech. I am looking hard to find the comments; if anyone can hand them to me I will love them for ever.
Lord Adonis
While the noble Baroness wrestles with her papers, I invite her to respond to another big concern raised in the debate, which is that there were discussions in government about privatising the Land Registry. Are there are indeed such discussions?
Baroness Kramer
I can tell the noble Lord only that there will be no such clauses in this Bill. I can provide that absolute clarity.
Lord Adonis
Are there any discussions about privatisation of the Land Registry at a later date?
Baroness Kramer
There will be a response to the consultation, but it is not the intention of the Government to provide for that in the Bill or, as far as I know, in any future legislation.
Lord McKenzie of Luton
If it is not the intention to seek privatisation by this mechanism, can the Minister confirm that it is not the Government’s intention to seek it in any other legislative arrangement?
Baroness Kramer
I certainly have no knowledge of any other intentions. As I said, there will be a proper response to the consultation. That may be helpful in clarifying any remaining questions for the noble Lord, Lord McKenzie.
I confirm that the Government are committed to England’s public forest estate and national parks remaining secure in public ownership for the people who enjoy them and the businesses that depend on them. The measure that we discussed for the HCA is about transferring surplus land from government agencies. The public forest estate and our national parks are in use; they are therefore not surplus and none will therefore be transferred to the Homes and Communities Agency. This measure does not apply to them.
Lord Judd
I am very grateful to the Minister for taking up the issue of national parks, but I point out that although she has covered one important aspect, she has not covered the aspect of the responsibility of government and government departments to respect and enhance the purposes for which the parks exist.
Baroness Kramer
I think at this stage I have to say that I will write to respond to questions. I apologise that I have used slightly more than the 20 minutes I am allowed but I very much appreciate the debate that has taken place.
Queen’s Speech
Baroness Kramer Excerpts(10 years, 6 months ago)
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The Minister of State, Department for Transport (Baroness Kramer) (LD)
My Lords, it is a pleasure and an honour to welcome the right reverend Prelate the Bishop of Rochester and congratulate him on making a maiden speech; to do so on the Queen’s Speech takes exceptional courage. He said that he has hard work ahead of him to achieve the goal of women bishops, and asked if there was enthusiastic support in this House. I assure him that there are many who will provide him with such support; indeed, he may regret asking the question.
The noble Lord, Lord Davies of Oldham, was right to say that the better the debate, the worse the wind-up. I realise that I have an extraordinary challenge in the wind-up today; there were so many speeches today across such a wide range of issues that I realise that in the time available it is going to be absolutely impossible to respond to all the points that have been made. Where there are questions that I have been unable to answer by the end of the debate, and there will be many, we will try to follow them up.
I start by putting today’s discussion in some sort of context. Four years ago we gathered in this Chamber to debate the first Queen’s Speech since the formation of the new Government. It was also the first time that Britain had a full coalition for more than half a century. However, we were also in the middle of the biggest economic crisis for decades. It was crucial that in that first Queen’s Speech we sent out a strong message of intent to reassure the country. Indeed, Her Majesty’s opening words in that Queen’s Speech of May 2010 made absolutely clear our top priorities: to reduce the deficit, restore economic growth and govern with fairness and responsibility. We know that those are the yardsticks against which this coalition Government’s performance will be measured.
I do not intend to reiterate the speech made by my noble friend and colleague Lord Deighton at the beginning of this debate, which listed the successes and achievements on the economic front. They were echoed by my noble friend Lord Flight, who predicted 3% GDP this year—I hope he will give me some good horseracing predictions, because that requires true courage and acuity. My noble friend Lord Razzall talked of the animal spirits that are pushing forward the economy. My noble friends Lord Northbrook and Lady Noakes pointed out how manufacturing is on an upward trend. That was a real challenge for us to achieve, and we are achieving it. My noble friend Lord Wrigglesworth talked about the achievement of reducing the structural deficit and achieving confidence in the markets at the same time as real fairness in the ways in which we have had to make cuts in order to manage the deficit. My noble friend Lord Shipley talked about the robust contribution of small businesses, as did quite a number of other noble Lords. When you listen to that list, you recognise that this is very far from a zombie Government. This Government are alive and kicking. I take the point that zombies are immortal. Now there is a prospect.
In fact, if anyone is looking a little pale on this occasion, it has to be the Opposition and their speeches today. I am just astonished at the level of amnesia. When I listened to the speeches made by the noble Lords, Lord Adonis, Lord Giddens, Lord Lea of Crondall and, to an extent, Lord Davies, they all seemed to have forgotten the state of the economy that they handed to us. I say to the noble Lord, Lord Lea of Crondall, and this is crucial, that, yes, there was a financial crisis, but the Government had run this economy in such a way with such overspending that there was no resilience to come back from it, and it is because of that that we faced the crisis that we did, which was so much worse than that in other developed countries. It is from that base that we have moved forward.
I say to the noble Lord, Lord Adonis, that many of the issues that he raised and criticised this Government for were actions that his own Government had not taken. Although this is slightly out of the range of the economy, one of the things that shocks me most is that as I go up and down the country and talk to young people who are now just getting into employment, they came through education during the Labour years when they did not get the skills they needed, when there were no apprenticeships, respect for vocational education or opportunity. It is those changes, including 2 million apprenticeships by the end of this Parliament, that are beginning to make a real change and eat into the figure for long-term youth unemployment. I agree that we must focus on that relentlessly, but that is just one of the many issues on which I wanted to challenge.
The noble Lords, Lord Giddens, Lord Lea of Crondall and Lord Davies, and the noble Baroness, Lady Thornton, all raised the issue of inequality. We have been in a period of real austerity. We are beginning to recover. We are now seeing wages begin to recover, which is crucial, but we also made sure that people kept their jobs. To have been through the period of recession that we have been in and to have managed to keep down unemployment, which is now down to 6.8%—which is not where we want it, we want it much lower—has been a very significant achievement. What more could you do to tackle inequality than to start to take people at the bottom of the earnings scale out of income tax? That is something that Labour never conceived of doing. Labour may now be on board—everybody is on board—but my party led on this issue and has been crucial in making those kinds of changes, along with apprenticeships and the kinds of opportunity that are offered.
The noble Baroness, Lady Thornton, mentioned women. Since the coalition Government came to power in May 2010, there are 446,000 more women in employment. Between 2011 and 2012 the gender pay gap reduced for all employees. Even if you look only at full-time employees, it also reduced. We are not where we need to be but, my goodness, we are on the path. There are not many who could have said that, certainly not coming through the kind of economic period through which we have been. We must not relent.
I will try quickly to cover some of the key issues. On the issue of women, the tax-free childcare that we are now putting into place, something that has never been done before, as well as the improvements that we are making in the support to parents on universal credit, are great breakthroughs. They will be very important in the lives of people, especially in the lives of many women.
Quite a number of noble Lords raised the issues of social housing; I am trying to watch the time as best as I can. Social housing was the focus of speeches by the noble Baroness, Lady Andrews, and the noble Lord, Lord Sawyer; it was covered by the right reverend Prelates the Bishops of Leicester and of Rochester; and the noble Lord, Lord Shipley, talked extensively about it, as did the noble Lords, Lord McKenzie of Luton, Lord MacGregor of Pulham Market, Lord Wrigglesworth and Lord Harrison. They fell into two groups. There was discussion of affordable housing and housebuilding. When we came into government in the financial crisis, obviously the consequence of that financial crisis was that housebuilding had largely collapsed. It is one of the first industries that gives way in that kind of financial crisis. We have been coming back from that, but the impact of the crash was huge. Housebuilding is now at its highest since 2007. Over 445,000 homes have been built since April 2010; 170,000 affordable homes will be built between 2011 and 2015—we have got to 99,000 so far; and £23 billion of public and private finance will help to ensure another 165,000 more affordable homes between 2015 and 2018, which will be the fastest annual rate for 20 years.
We need to keep absolutely focused, which is one of the reasons why the Bills that were announced in the Queen’s Speech were so important. The ability now to transfer unused land held by agencies from those agencies to the HCA to turn into housing projects much more quickly will be one of the many things that will help, along with the changes in planning law which, as many have said, is not a protection in many cases but an obstacle. We need to change that dynamic.
The other issue that was raised was concern about the house price bubble in London. Hopefully, that is now mitigated against as we look at the most recent figures. I want to be absolutely clear that, as some said on the Floor of the House, Help to Buy does not appear to have been a contributor to that: Help to Buy has been helping people outside the London area. Mark Carney’s name has been taken in vain on quite a number of occasions, but what is really important is that the Bank of England is now looking at macroprudential tools rather than interest rates only to try and manage the housing market. It is now becoming tougher, for example, to qualify for a loan in London for high-priced houses. Mechanisms like that can help us deal with those bubbles without the necessary resort, which will have to happen at some point, to interest rates.
Somebody raised the question of foreign buyers. Noble Lords will know that Boris Johnson now has an agreement with builders in London that they will market first in London rather than overseas. There are other measures like that which we can manage to achieve. Others mentioned some of the tax steps that have been taken to try and contain that.
I move on quickly from that issue to the issue of energy, which obviously plays a big part in the Queen’s Speech. Again, I am under tight time pressure, so I will focus fairly heavily on the issues of extraction of oil and gas from shale, and geothermal. I want to provide some reassurances—I am desperately looking to find out exactly what the question was—that the report of the Economic Affairs Committee, discussed by its chair, the noble Lord, Lord MacGregor, my noble friend Lord Teverson and the noble Baronesses, Lady Noakes and Lady Jones, and others, will be responded to before the summer recess.
There is a consultation at present on the Government’s proposals for underground access. I say to the noble Baroness, Lady Jones, that this concerns access below 300 metres. Many of the people who oppose the headline that they see on this measure have no idea that we are talking about levels below 300 metres. It does not apply to surface access. It is very much to the credit of this country that we have a very tough regime of approval for the kind of exploration that would be necessary for shale oil and gas extraction. They are internationally recognised and there is no attempt to break down those protections, which are essential for the confidence of the community. Others have talked about the importance of sharing the benefits with the community, and a number of programmes deal with that. I will gladly write to noble Lords with more detail because I can see that time is racing away from me.
There were a number of questions on devolution and local government from the right reverend Prelates the Bishops of Leicester and of St Albans, the noble Lord, Lord McKenzie of Luton, and my noble friends Lord Tope and Lord Shipley. Devolution is absolutely critical and the Government have taken it forward in a way that no one has for a generation. I work with the Local Growth Fund. Local enterprise partnerships are obviously working closely and are deeply engaged with their local authorities and other stakeholders in the community and are coming forward with strategic plans for economic growth in their areas, bringing in new kinds of thinking and breaking down the old silos, which is critical. It means that the Government are handing over the motivation for and the design of those strategic economic plans to local areas, which is a crucial piece of devolution.
I look at simple things in the transport world where we transferred significant parts of the support that we give to buses, including the bus service operators grant, back to local authorities. There is very much a pattern. I recognise that these are hard times, but the good local authorities have looked at the harder financial profiles they face and have managed them very effectively. I take on board the warning of my noble friend Lord Tope; we have had that same concern virtually every year. Really good authorities have found ways to deliver for local people—and, ironically, the approval ratings for local authorities have gone up significantly: they are now at 77%. So there are ways, and we must demand that at a time when every penny is important.
Infrastructure forms a significant part of the nature of this Bill and a number of people raised it. The noble Lord, Lord Birt, said we did not have a plan; we certainly have a plan by any definition of a plan that I know in the national infrastructure plan. As the noble Lord, Lord Deighton, is sitting here, I asked him to confirm what I am saying. The plan sets out what the Government want to achieve, the approach in each sector, and the action they will take to ensure delivery, including identifying key priority investments.
That has been crucial, and sometimes the numbers used to describe investment in the UK and to compare it with other countries fail to recognise that essentially road and rail are public investments in this country, but nearly every other kind of investment in infrastructure comes from the private sector. I was recently in the United States, where they are now trying desperately to copy what we are doing because one’s ability to leverage in that kind of private money significantly increases the amount of investment in infrastructure and creates so many possibilities that could never come from just using the public purse. So we need to stop using distorted figures when we look at these numbers.
Noble Lords talked of their concern over the new status of the Highways Agency—the noble Lord, Lord Davies of Oldham, mentioned it.
Baroness Kramer
I will have to come to the noble Lord with that number, because I do not have it to hand. I would be quite interested in seeing it myself, as I have not seen it expressed in that way—but I would be delighted to.
Something that is very important about the Highways Agency, which encapsulates the real change that this Government are bringing to infrastructure, is that it will sit as the delivery implementing agency, in effect, for future roads investment. Sitting outside it is the roads investment strategy, which remains entirely the responsibility of the Secretary of State. I should say that the Highways Agency is also wholly owned by the Government—it is definitely an agency. For the first time, we will have long-term certainty of funding for roads and a programme over a Parliament in the same way that we have had for rail. Many in this House have pointed out that the problem in project after project has been that investment has been subject to a stop-start set of decisions, which have disrupted long-term investment. Now we can begin to have that kind of assurance. Bringing into the Highways Agency people with the skills to deliver that efficiency, just as we are doing in the rail sector, is absolutely crucial. With the scale of investment that we are undertaking, we have to make sure that every penny is well spent. That means that we need that specialised expertise and we will have it going forward—we hope, if this House and the other place agree to the kinds of proposals being put forward in the Queen’s Speech.
I have less than two minutes, so I close by reiterating my thanks to everybody who is here. I recognise that there are very significant areas that I have not covered, but I shall try to do so in writing in response to questions. Finally, it has been an absolute privilege to be in the Department for Transport at this time. I look back at previous Ministers, and many in this House who had to deal with cuts and decline. We are at a time when this Government are taking a completely different approach towards infrastructure. It is part of the growth, because it becomes the framework for important economic growth. We are building Crossrail, we are completing the Northern Hub, and there will be £70 billion of capital investment in transport over the next Parliament. We are trebling the budget for major road schemes. Network Rail will spend £38 billion over the next five years. We have doubled the investment in cycling and we are investing £500 million to position Britain at the forefront of ultra low-carbon motoring. As the demand for travel rises, we are meeting that challenge.
Busy arteries such as the west coast main line will be overwhelmed in the next decade if we do not build new capacity between our cities in the form of new rail, which is why we need the new north-south rail High Speed 2. I can tell the noble Lord, Lord Horam, that it is of course our intention that eventually there will be an HS1-HS2 link. The scheme in the programme was simply inappropriate and unworkable. It is something we want but we recognise that it will need to be looked at in the future.
However, the most important thing about HS2—this goes back to the discussion on the economy and equality—is that it offers so much opportunity to the Midlands and the north, which they deserve. We must take connectivity along with it. That goes back to the devolution issue. The noble Lord, Lord Deighton, has led that work and worked closely with the communities in the Midlands and the north. They have told us what connectivity is needed to maximise the benefits of HS2. That line offers a future in which once again, as has always been the case traditionally, the Midlands and the north can balance out London and we achieve growth all across our nation so there are no areas to which we have to transfer payment, as it were. Rather, there will be great generation of wealth, income, jobs and new business all across the country.
I thank noble Lords for their contributions and wish there had been time to respond to more of the questions.
Merchant Shipping (Convention Relating to the Carriage of Passengers and their Luggage by Sea) Order 2014
Baroness Kramer Excerpts(10 years, 7 months ago)
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Baroness Kramer
That the draft order laid before the House on 24 March be approved.
Relevant document: 25th Report from the Joint Committee on Statutory Instruments. Considered in Grand Committee on 7 May.
Draft National Policy Statement for National Networks
Baroness Kramer Excerpts(10 years, 7 months ago)
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The Minister of State, Department for Transport (Baroness Kramer) (LD)
My Lords, I very much welcome this debate on the Government’s draft national policy statement for national networks—the NPS. This House has a really important role in scrutinising the draft NPS. This debate will help the Government to prepare their final version so I am very appreciative of the comments that have been made today. If noble Lords wish in the future to feed in further comments, I will be glad to take those on board.
I thank the noble Lords, Lord Berkeley and Lord Bradshaw, for giving me a little heads-up in advance of some of the issues that concern them. I hope that that will help with my response today but I am aware that we have covered a very wide range of issues. If I inadvertently miss certain issues, I will be glad to follow up afterwards. I apologise to the noble Lord, Lord Marlesford, for the truncated map. We got it right on the rail freight map which manages to fit neatly into the page. We will get it corrected. It was not intentional but I fear merely a matter of pressing a button at the wrong moment. In terms of the issues around Sizewell C I do not have those details with me today, so I will have to respond to him separately, if I may.
The NPS is a specific document with a specific purpose. It is a technical planning policy statement that will comprise the decision-making framework for nationally significant road, rail and strategic rail freight interchange projects. The noble Lord, Lord Berkeley, made the point that it is crucial that rail freight interchange is included on that list. He asked for greater granularity in the report and I will pass that back in terms of consultation. I suspect that on this issue he knows granularity more than anyone else in this House, but I will take it back and try to get him a more detailed response.
The draft NPS requires a consideration of whether a scheme strikes the right balance between national need and local needs and priorities. I say that to the noble Lord, Lord Rosser, who raised the issue of how the national and local impact on each other. The document is quite explicit in requiring that balance to be struck. If the adverse impacts are greater than the benefits, or if a development fails certain planning tests, then development consent must be refused. In considering applications for development consent for nationally significant road and rail schemes, the decision-maker will need to take account of the full range of environmental, social and economic impacts.
As the noble Lord will know, the key reason for having the NPS as directed within the Planning Act 2008 was to remove protracted debate around issues of national policy from public inquiries, not to eliminate a proper review of schemes. I will come to this point later when I talk about environmental issues, but I advise anyone who has a moment to look at Section 5 of the draft policy statement, which has detailed sections on environmental issues which noble Lords may find helpful regarding some of the questions that they have raised.
There is a strong case for development of road and rail networks. The NPS identifies a compelling need to drive economic growth, improve quality of life and deliver better environmental performance. The national road and rail networks that connect our cities, regions and international gateways play a significant part in supporting economic growth and productivity as well as facilitating passenger business and leisure journeys across the country.
The noble Lord, Lord Rosser, asked why we do not specifically mention buses, coaches or stations. This is a document that operates at the higher levels, so we talk about roads but we do not talk about cars either. We are talking about the planning infrastructure. When it comes to stations, which he specifically mentioned, he will know that we have had an aggressive programme of reopening, improving and adding accessibility to stations, which is long-needed. I am very pleased that we have significant investment in that area and will continue it.
Our national networks are already under considerable pressure and that pressure is expected to increase further, as the long-term drivers of demand to travel, which are GDP and population, are forecast to increase substantially over the coming years. All of us recognise that without action, congestion and crowding will constrain the economy and reduce quality of life.
Some noble Lords talked about percentage increases. To give one example, on the road network in 2010—I think that we can say it will be worse now—it is estimated that 16% of all travel time was spent delayed in traffic. In London, on the rail network, some services are 7% over capacity. Those are the kinds of numbers that we simply cannot continue to live with.
We all recognise that development of the national networks can unlock regional economic growth and regeneration, particularly in the most disadvantaged areas. Broader economic, safety and accessibility goals generate requirements for development because it is the way that we can fix safety issues, improve the environment and enhance accessibility for pedestrians and cyclists.
The noble Lords, Lord Berkeley, Lord Bradshaw and Lord Rosser, raised concerns about traffic forecasts and the broader appraisal process. It is true that we have well established forecasting and appraisal frameworks that have been subjected to internal and external review over many years, and we continuously update them. It is true that over recent years we have overstated traffic forecasts while in previous years we might have understated them, but it is not a problem of the model; rather, the problem is the inputs into the model. The key drivers that are the inputs into the model—population, GDP and oil prices—we all called wrongly some years ago. If you were to put in the correct drivers, the model would give you traffic forecasts that are within 1.3% of observed traffic. So the model itself, for the narrow task for which it is designed, is a reasonably good one, but of course the inputs have to be right. For that reason we now present a range of forecasts and scenarios. But even when we take the lowest forecast using scenarios that take the most conservative possible views on the various drivers, we can still see very significant pressure on the rail and road networks in the form of increased congestion and crowding. It is crucial to understand that the NPS does not mean that national traffic forecasts are simply used to justify individual developments. Each individual scheme needs to use local models to understand local impacts and will be subject to a full transport business case.
Quite a number of comments were made on traffic forecasts, benefit-cost ratios and those kinds of formulas. I should like to make two comments on them. The first picks up on the issue raised by my noble friend Lord Bradshaw of small time savings being a distortion. There are occasions when small time savings can be extremely useful. For example, a tiny time saving at Reading station may not be of particular value to an individual in a way they can name, but it will give an excellent proxy for whether there is enough platform capacity and whether people can move around the station appropriately without overcrowding and congestion occurring. Small time savings can be very useful measures, but I agree that they have to be used under appropriate circumstances. However, it is important that we dethrone, if that is the word, the use of things like benefit-cost ratios and traffic forecasts. They are not litmus tests that say “go” or “no go” on projects; rather, they are one of the tools that have to be used along with other work, analysis and judgment to decide whether a project is appropriate.
As a politician perhaps I am sometimes guilty of using such measures as a proxy for a more complex explanation—the media certainly do so—and I think we need to make sure that we move away from that. I come from a finance background where this kind of analysis is useful, but it is a tool and its limitations have to be understood. There will be no formula we can devise that does not have limitations. All kinds of appraisals come in to the broader decision, including the impact on regeneration and economic growth, which is now highlighted in a way that it never was historically. When talking about the specifics of these appraisal tools, which was the subject of a lot of the conversation today, we are in the process of engaging with an independent review. In October 2013 we committed to undertake a comprehensive survey of the latest theoretical and empirical evidence for the potential growth impacts of nationally significant infrastructure and programmes of expenditure. This work is under way and is being led by Professor Tony Venables at Oxford University, who may be known to some noble Lords. The department will consider whether any further external scrutiny is needed, so we are conscious of the issue.
The NPS supports a significant and balanced package of improvements across the road and rail networks including—this is set out clearly in the document—improvements in safety, resilience, maintenance and environmental performance, and stresses access for cyclists and pedestrians. Noble Lords will know that many of the programmes we have had in the department, especially the local sustainable transport fund, have been key to supporting local communities and improving cycling and pedestrian facilities, and have had a big impact. It has to be recognised that improvements to the road and rail networks supported by the NPS are accompanied by policies to support sustainable transport.
Some stakeholders have criticised our roads policy as being “predict and provide”—I think the noble Lord, Lord Rosser, was one of those who said this—or an excuse for large-scale—
Lord Rosser
I did not actually say it myself but said it was how it was being described by some, including in the debate today. I think that was fair comment. I did not actually make the statement myself.
Baroness Kramer
I stand corrected. It was a fair comment, and was certainly mentioned today, so I will just take it up. I apologise for misattributing the statement. I assure the House that it is not the case. Government policy on roads is not that outdated approach of predicting and providing for all future traffic growth, irrespective of cost and environmental and social impacts. It is about sensible and sustainable development where there is a strong justification based on the transport business case. Again, that is not just about numbers; it needs judgment as well.
Development of the strategic road network is primarily about upgrading the existing network. Almost 40% of the investment designated for this Parliament and the next is for maintenance. Over 80% of the schemes in the current programme are smart motorways. I hope that gives some clearer understanding.
It is very clear in the NPS that road improvements must be delivered in an environmentally sensitive way and must look to improve environmental performance wherever possible. Much environmental good can be done as part of an investment programme. I will talk a little more about noise in a moment but it is an opportunity for introducing noise-reducing surfaces and sustainable drainage, for eliminating bottlenecks in the system which push up emissions and for ameliorating the worsening air quality that comes of course with congestion.
At the same time as we are in the process of doing that, the Government are committed to decarbonising our roads. Over the past four years and the coming four years, an investment of £1 billion in ultra low-emission vehicles and new fuel efficiency regulation means that we expect to see greenhouse gas emissions from motoring dropping by about 20% in 2030 from present-day levels.
My noble friend Lord Bradshaw raised the issue of noise, to which I said I would return. The NPS is very clear that, for new schemes, scheme promoters must undertake works to mitigate the impacts, for example through low-noise surfacing, noise barriers and earthworks. Low-noise surfacing is now used as a matter of course in all new schemes. Over the next Parliament, as I said, maintenance of the strategic network will lead to about 80% of the network being resurfaced with low-noise surfacing.
Air quality is another issue that was singled out. It is a problem that we cannot tackle with a single measure—it needs a fairly coherent approach. First, I would say that we have seen very significant improvements in road quality, largely because of cleaner cars and cleaner fuels. That has been important. Reducing congestion is an important way to improve air quality. Everyone in the House will be conscious of the exceptional levels of investment that are now going into the railway network, both to upgrade the existing system and to develop the new spine of a high-speed system. Again, because of modal shift, that is a very important way of tackling the air-quality problem. We are obviously putting in very significant funds: we announced just about a week ago the next £500 million for investments related to ultra low-emission vehicles. We are tackling that across a wide range. It is a very difficult issue to deal with in a national-level statement but your Lordships can see from the work that the Government are doing that we are applying a lot of attention to this and that we take the issue exceedingly seriously.
My noble friend Lord Bradshaw raised the issue of maintenance. I assure the House that we are investing very heavily in maintenance, resilience and pothole repairs, both on the strategic road network and on the local road network. As I said, almost 40% of the investment in our strategic roads in this and the next Parliament is for maintenance. For local roads, we are providing councils in England with more than £3.5 billion between 2011 and 2015 to maintain their roads. We are committed to providing just less than £6 billion between 2015 and 2021. Immediately following the flooding crisis, we released £183 million in funds to local councils to deal with the impact that would have had in terms of local road damage.
In addition, in the March 2014 Budget the Government announced a £200 million pothole fund for the 2014-15 financial year, £168 million of which is being made available for councils in England. I say that because obviously the NPS covers just England. That is enough to fix more than 3 million potholes. We have made it really clear that we do not expect this to be a “patch and mend” approach. We have given a very clear message to local authorities that they should also be undertaking planned preventive maintenance, and that when they repair a pothole they should ensure that it is right first time in order not to have to do a call-back, because that is very far from cost-effective, as well as being highly problematic for motorists.
The noble Lord, Lord Berkeley, is concerned that not enough is being done to support modal shift to rail freight. The Government strongly support that modal shift, which is why—in addition to the capacity-enhancement projects that are being supported through the rail investment strategy, which are primarily targeted at improving passenger service but will benefit freight as well—we have also, since 2007, allocated more than £500 million specifically for the development of a strategic rail freight network. The allocation of that money is determined by the rail freight industry so that we can be sure that it is addressing priorities.
Of course, electrification of the network can make a very significant difference. I know to my regret that between 1997 and 2010 we electrified only nine miles of railway. We now have a massive electrification programme under way. That is absolutely crucial but it takes time because we are playing catch-up. I think most of us would say that we wished we were not starting from here.
The incorporation of the SRFIs in this national networks NPS really should strengthen developers’ confidence by confirming parliamentary approval for the policy. I hope that we will see that. However, in relation to modal shift, I must say to the noble Lord, Lord Berkeley, that we are not considering road pricing. That is not on the agenda. I am sorry, I meant my noble friend Lord Bradshaw. I am getting names wrong today; that one was completely unintentional. That is not a project that we are looking at. While I am discussing things that we are not looking at, we are not re-looking at concessionary fares. The protection of concessionary fares for older people is in statute and there is no wish whatever to revisit that.
Lord Bradshaw
I was not suggesting that the concessionary fare scheme should be abolished. The important thing is to ensure that the people who provide the bus services are adequately rewarded. There is scope here for considerable investigation; otherwise, this will be fought out in the courts at great expense and great delay.
Baroness Kramer
That probably has scope for a debate on another day, rather than within the context of the NPS. I do not mean to be cruel. I think it is an important issue but not for today. I wanted to leave no doubt that we are not re-examining concessionary fares.
There has been a lot of discussion of an integrated approach, which is very important and an area where we have to improve and build because historically—not just in transport—a lot of what we do has tended to be looked at in silos. There is a big cultural shift taking place. This document is only part of the range of documents that form our thinking around transport. We have strategic economic plans coming in from the LEPs now, as well as rail and road utilisation strategies, which feed in to the rail investment strategy and the forthcoming road investment strategy. Those give us some real opportunities to start looking at integration. I forget which noble Lord talked about HS2 but that is driving a lot of this rethinking, as we recognise that HS2 creates, particularly in the Midlands and in the north, an opportunity to establish connectivity. That needs be thought of alongside HS2 and not as some entirely separate process. In dealing with strategic economic plans, we recognise the link between infrastructure and economic growth. There are real changes going forward there. East-west links are an inherent part of that—that issue was raised by a number of noble Lords—and I consider it to be crucial.
I have only moments left, so let me finish by saying that the department received more than 5,800 responses to its consultation. Around 5,500 of those were responses to campaigns run by the Campaign to Protect Rural England and the Campaign for Better Transport. I give an assurance that we will look at all the responses, as well as at the feedback that comes from the Transport Select Committee—a crucial document—and from this debate today. We intend to finalise the NPS later this year, in the autumn.
I thank everybody who has participated and ask the House to welcome at least the draft of this document, recognising that there will be a great deal more to add before it becomes final.
Lord Rosser
Before the Minister sits down, may I ask her whether she will look at the contributions that have been made and the questions and points that have been raised? I did not expect to receive answers to all the points that I raised today, but I would be grateful if she would indicate that she will look at what has been said and, where questions and points have been raised that she has not had the time to respond to, that a response will be given in writing.
Baroness Kramer
I shall be absolutely delighted to do so. I thought that I had made that clear as I opened, but let me repeat it as I close.
High Speed Rail (London–West Midlands) Bill
Baroness Kramer Excerpts(10 years, 7 months ago)
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Baroness Kramer
Carry-over of Bill into Session 2014–15
(1) That if a High Speed Rail (London–West Midlands) Bill is brought from the House of Commons in Session 2014–15, the Standing Orders of the House applicable to the Bill, so far as complied with or dispensed with in this Session, shall be deemed to have been complied with or (as the case may be) dispensed with in Session 2014–15.
Case where Bill first brought from Commons in Session 2014–15
(2) That if-
(a) a High Speed Rail (London–West Midlands) Bill is brought to this House from the House of Commons in Session 2014–15, and
(b) the proceedings on the Bill in this House are not completed in Session 2014–15,
further proceedings on the Bill shall be suspended on the day on which that Session ends until the first Session of the next Parliament (“Session 2015–16”).
(3) That if, where paragraph (2) applies, a bill in the same terms as those in which the High Speed Rail (London–West Midlands) Bill stood when it was brought to this House in Session 2014–15 is brought from the House of Commons in Session 2015–16-
(a) the proceedings on the bill in Session 2015–16 shall be pro forma in regard to every stage through which the bill has passed in Session 2014–15;
(b) the Standing Orders of the House applicable to the bill, so far as complied with or dispensed with in this Session or in Session 2014–15, shall be deemed to have been complied with or (as the case may be) dispensed with in Session 2015–16; and
(c) if there is outstanding any petition deposited against the bill in accordance with an order of the House-
(i) any such petition shall be taken to be deposited against the bill in Session 2015–16 and shall stand referred to any select committee on the bill in that Session; and
(ii) any minutes of evidence taken before a select committee on the bill in Session 2014–15 shall stand referred to any select committee on the bill in Session 2015–16.
Case where Bill first brought from Commons in Session 2015–16
(4) That where paragraphs (2) and (3) do not apply but a High Speed Rail (London–West Midlands) Bill is brought from the House of Commons in Session 2015–16, the Standing Orders of the House applicable to the Bill, so far as complied with or dispensed with in this Session or in Session 2014–15, shall be deemed to have been complied with or (as the case may be) dispensed with in Session 2015–16.
Other
(5) The reference in paragraph (2) to further proceedings does not include proceedings under Standing Order 83A(8) (deposit of supplementary environmental information).
The Minister of State, Department for Transport (Baroness Kramer) (LD)
My Lords, I beg to move the Motion standing in my name on the Order Paper.
Lord Richard (Lab)
My Lords, I want to speak before the House moves to a vote on this. The noble Baroness is moving a highly complicated Motion that deals with three potential situations—one in which a Bill comes up this Session, one in which a Bill comes up next Session and one in which a Bill comes up after the next general election. In those circumstances, I think the noble Baroness owes it to the House to explain a little further the rationale for the three propositions.
Lord Elton (Con)
This may be a matter for the Procedure Committee in the long term but we have an immediate issue. I remind the noble Lord, Lord Foulkes, that the objectors to the Bill and those who have an interest do not wish to be summoned twice to repeat their evidence. There is a very pressing argument in that respect for carrying forward at this stage.
Baroness Kramer
My Lords, we are dealing with a Bill that is already in the other place. This is a standard Commons practice for hybrid Bills, because they are, as other noble Lords have said, so much longer and so much more complex than a typical public Bill. To give your Lordships reassurance that there is precedent for much of this, the Channel Tunnel Rail Link Bill was carried over two Prorogations and the Crossrail Bill was carried over two Prorogations and a Dissolution for a general election.
We face a Prorogation, which most of us expect quite shortly, so it is important, as the Bill is in the Commons, that we have a carryover in place. We also, for the first time, know when the next general election will occur because we have a fixed-term Parliament. We are in a position now to be able to do the carryover, as the Commons has done, to cover that known event at the same time. As other noble Lords have said, this is actually rather important, especially for the petitioners, because it gives them comfort and the knowledge that they will not have to resubmit the evidence that they have worked hard to pull together to present their case, as is entirely appropriate.
I hope the House will understand that this is a formal procedure; that the equivalent procedure has already passed in the Commons; and that it is particularly of assistance to people who wish to petition—I think all of us wish to give them the maximum support that we can. However, it does follow precedent, and the particular feature of a fixed-term Parliament gives us the capacity to provide additional certainty that we might not have been able to without a fixed-term Parliament. So I hope very much that the House will provide its support.
Merchant Shipping (Convention Relating to the Carriage of Passengers and their Luggage by Sea) Order 2014
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Baroness Kramer
That the Grand Committee do consider the draft Merchant Shipping (Convention Relating to the Carriage of Passengers and their Luggage by Sea) Order 2014.
Relevant document: 25th Report from the Joint Committee on Statutory Instruments.
The Minister of State, Department for Transport (Baroness Kramer) (LD)
My Lords, before I turn to the detail of the draft Privy Council order, I would just like to say that it is not often that I get the opportunity to debate a maritime matter, and I thank those noble Lords who are taking part.
The United Kingdom, which is surrounded by some of the world’s busiest shipping lanes, is particularly vulnerable to the consequences of maritime casualties. Thankfully, such instances are rare, particularly those involving passenger ships. However, we need only look at the terrible tragedies elsewhere in the world involving the cruise ship “Costa Concordia”, and more recently the South Korean ferry “Sewol”, to remind us that we can never be complacent.
Through this order, we are seeking to amend the Merchant Shipping Act 1995 to reflect the UK’s ratification of the International Maritime Organisation’s protocol of 2002 to the 1974 Athens convention relating to the carriage of passengers and their luggage by sea. This modernises and significantly strengthens the international framework for providing compensation in the event of death or personal injury to a passenger, or the loss of or damage to luggage, when travelling by sea.
The 2002 Athens protocol, which entered into force internationally on 23 April 2014, increases the limits of liability that currently exist for carriers of passengers under the 1974 Athens convention up to 400,000 special drawing rights, which is the virtual currency used by the International Monetary Fund. As of 24 April 2014, one special drawing right is equal to approximately 92p. The 2002 Athens protocol also requires carriers to maintain compulsory insurance of not less than 250,000 SDRs per passenger on a strict liability basis, and this insurance is to be evidenced by a certificate from a state party. It also provides claimants with the right of taking direct action against the insurer.
UK ratification will actually have very little practical effect on UK ship owners. This is because the key provisions of the 2002 Athens protocol have already been introduced into EU law. EU Regulation 392/2009, which entered into force on 31 December 2012, was implemented in the UK by means of the Merchant Shipping (Carriage of Passengers by Sea) Regulations 2012. Nevertheless, further government intervention is now necessary to ensure that UK-flagged passenger vessels can be issued with the correct state certification attesting that they have the necessary insurance in place at international level to meet their obligations under the 2002 Athens protocol when travelling on international, as opposed to EU, journeys.
In addition, the order will also enable the 2002 Athens protocol to be extended to the overseas territories and Crown dependencies, should they so wish it, which, if they chose to do so, would enhance the protection that is available to passengers travelling on board vessels that are flagged to those territories when travelling on international journeys.
In keeping with the responses received during public consultation, the order also preserves the existing arrangements for domestic journeys. This means that the original 1974 Athens convention, along with a limit of liability which has been progressively raised to 300,000 SDRs for those ship owners whose principal place of business is in the UK, will continue to apply to the carriage of passengers within the UK, the Channel Islands and the Isle of Man.
This order also presents us with an opportunity to revoke some related domestic legislation—Carriage of Passengers and their Luggage by Sea (Interim Provisions) Order 1980. This is an enabling power and applies only to contracts for domestic carriage made before 30 April 1987, so it no longer has any practical effect. It was identified as being completely redundant under the maritime theme of the Red Tape Challenge—an initiative that I sure many noble Lords will be familiar with.
Finally, some noble Lords may have already spotted that there is no review provision in this order. This is not an oversight; there is simply no power to incorporate such a provision here. Nevertheless, I can assure noble Lords that the Secretary of State for Transport will carry out a review, and will publish the conclusions of that review, every five years. The first such report will be published before 23 April 2019. I commend the order to the Committee and beg to move.
Lord Rosser (Lab)
My Lords, I am in the same position as the Minister. Debates on maritime matters are all too rare. I do not think the Minister was expressing the view that she is a particular expert in this field, and I would certainly not claim to be. That may become horribly evident in the contribution I have to make.
As the Minister said, this order amends the Merchant Shipping Act 1995 in the light of our ratification of the International Maritime Organisation’s 2002 protocol to the Athens Convention 1974 relating to the carriage of passengers and their luggage by sea. Ratifying the 2002 protocol ensures that UK-flagged passenger vessels can be issued with correct international certification and enables the protocol to be extended to the overseas territories and Crown dependencies, should they so wish. When the order was discussed in the other place a question was asked about what the Government’s accountability and jurisdiction would be if ships that are not UK-based, but are part of the Red Ensign group, chose to opt into these rules. It would be helpful if the Minister could clarify that point.
As the Minister said, the key provisions of the protocol have already been introduced into EU law—I think from the end of 2012—and implemented by the UK, but this order is needed to ratify the protocol, which came into force internationally on 23 April and incorporates the international elements. The 2002 protocol applies to international carriage only, but the order ensures the application of the Athens convention to domestic journeys within the UK, the Channel Islands and the Isle of Man. The 2002 protocol increases the liability limits for carriers that have been applicable in the event of accidents involving loss of life or personal injury and also requires carriers to maintain compulsory insurance on a strict liability basis, as well as providing claimants with the right to take direct action against the insurer. Under the order, the new limit of liability is, I think, the 400,000 special drawing rights. The Minister said that a special drawing right is currently equal to approximately 92 pence. It certainly fluctuates marginally since earlier in the year when it was being debated in the House of Commons the figure was given as approximately 93 pence.
The Government have also said that the further policy objective of the order is to revoke some redundant legislation. It would be helpful if the Minister could spell out which legislation is being revoked, bearing in mind that the Government’s objective appears to be that, for every new order introduced, two should be revoked. I am not clear what the two orders are that are being revoked.
The Explanatory Memorandum states in paragraph 10 that, although,
“external stakeholders were invited to contribute to the IA, the available evidence base continues to have a number of limitations”.
It then goes on to say:
“Given the significant uncertainties surrounding the impacts of this measure”,
relating to,
“the number of Overseas Territories and Crown Dependencies that … choose to ratify the … Protocol … and the limitations of the available evidence base, it has not been possible to monetise any of the costs and benefits in this IA”.
At least, that is my understanding of what it says. Yet when the order was discussed in the other place, the Minister described it as “short and highly technical”. I have always construed the reference to “highly technical” to mean “incomprehensible”. He said that not least because the,
“key provisions of the 2002 protocol have already been introduced into European Union law … and … implemented in the UK”.
The Minister in the other place said that the order therefore had,
“little practical effect on UK shipowners”.—[Official Report, Commons, Second Delegated Legislation Committee, 30/4/14; col. 3.]
I simply ask which is the correct version—that the order is short and highly technical with little practical effect on UK ship owners, as per the Minister in the House of Commons, or that, due to the significant uncertainties surrounding the impacts of the measure and the limitations of the available evidence base, as per the Explanatory Memorandum, monetising any of the costs and benefits of the order in the impact assessment is not possible and, by inference, would represent something of a voyage of discovery. Perhaps the Minister could indicate which horse of those alternatives she is backing, or, alternatively, say why what would appear to be two somewhat different views on the clarity and scope of this order are in fact saying precisely the same thing.
A further issue raised in the House of Commons was about the ships to which this order applies. In his response, the Government Minister said that,
“the classification of ships is determined by the area in which they operate and not necessarily the gross tonnage”.—[Official Report, Commons, Second Delegated Legislation Committee, 30/4/14; col. 8.]
However, because he was unable at that particular moment to give a definition of classification A and B vessels as referred to in the impact assessment, he undertook to write to the Committee. Can the Minister here provide that information and say whether the provisions of this order might be extended to other classes of ships?
A further question raised in the other place was about what steps the department was taking to ensure that information about the impact of the order was made available to ship owners and their passengers and customers. It would be helpful if the Minister could say what is happening on that issue. Of course, the answer to that may depend on whether she agrees with the Minister in the House of Commons that it is short and technical with little practical impact or with the Explanatory Memorandum, which appears to suggest otherwise. Finally, the Minister in the other place said that he was concerned to reduce the costs of the legislation around sulphur for UK shipping and, in particular, for the UK ferry industry. He went on to say that he had,
“asked the IMO to undertake an early review of the 2020 regulations”.—[Official Report, Commons, Second Delegated Legislation Committee, 30/4/14; col. 8.]
What exactly are the Government pressing for in that review?
We welcome the objectives of this order but would appreciate responses to the points to which I have referred.
Baroness Kramer
My Lords, I thank the noble Lord, Lord Greenway, for his reminder that we must not be complacent on this issue. As he says, the British shipping industry has an excellent safety record that is to be valued, but we must ensure that we continue to keep that record, as complacency would be dangerous. It is important to us to maintain that position in the global marketplace and our reputation for maritime excellence, as well as recognise our obligations to people who travel by sea.
I shall try to address the questions raised by the noble Lord, Lord Rosser, although I am not sure that I will satisfy him, given that the Minister in the other place did not. If there continue to be gaps, we will definitely follow up in writing but I will do my best to attempt to answer in an area which, as he is well aware, is certainly not one in which I would claim expertise. First, the noble Lord referred to the overseas territories and Crown dependencies and asked for a somewhat fuller answer, if I understood him correctly, on how we would enforce that protocol within that context if they opted to become signatories. He will know that the UK—as a signatory to international conventions on shipping-related matters—is bound to make sure that it gives effect to any changes under the conventions. It would therefore have a responsibility to ensure that any signatories among the overseas territories and Crown dependencies were followed through; failure to do so would constitute a breach of our international obligations under these conventions. I hope that adds significantly to the comments made by my honourable friend in the other place. We have obviously been encouraging these territories and Crown dependencies to sign up, so it is clearly good for travellers if they do so.
On revoking legislation, I believe I covered that in my opening speech. The Carriage of Passengers and their Luggage by Sea (Interim Provisions) Order 1980 seems to be almost unusual in that nobody thinks it has any practical effect any more. Therefore, removing it from the books strikes me as extremely appropriate. If I understood the question of the noble Lord, Lord Rosser, he was saying that there was a sort of “one in, two out” relationship. I have no idea what the “one” is or what the pairing “two out” was, but I think that he would support the idea that anything that was completely redundant was best off the books, rather than providing a complication.
Lord Rosser
I certainly share that view—there is no point keeping something on the books that is completely redundant—but I was looking at what the Minister said in the Commons:
“I am pleased to say that the Department for Transport, as its contribution to the red tape challenge, met its commitments on one in, one out. It is now meeting its commitments on one in, two out as well”.—[Official Report, Commons, Second Delegated Legislation Committee, 30/4/14; col. 8.]
It was in light of the Minister’s comment in the House of Commons that I was asking what the two were that were being removed now that this one was coming in.
Baroness Kramer
I am sure that the department would be delighted to write to him, as I will, with our successes in removing unnecessary and problematic regulation. We would be delighted to follow up on that issue but, standing at the Dispatch Box today, I cannot tell him that I know the answer.
The noble Lord then asked a question—he will help me if I am not fully understanding this—as to whether this was a piece of legislation that had no practical impact, or a piece of legislation that had important impact and looked at two areas of discussion. This is a piece of legislation that would have been significantly important had not the EU already enacted its provisions. Looking at the SI today, it is fair to say that it does not have a big practical impact because that was achieved back in 2012, when the EU protocol, which incorporates a directive including these provisions, came into force. It is important that the levels of compensation have been raised for passengers who may be in the appalling situation of being injured—potentially even killed—or having damage to their luggage. That is entirely appropriate. The protocol is necessary because there must be some containment of liability or else insurers will not be willing to step up to the plate. In that case, we would see a dramatic diminution in passenger sea transport. Raising that limit has been important, and the fact that it is an international protocol also matters, certainly to British passengers who do not necessarily travel only on UK-flagged vessels. It has been an important piece of legislation.
Lord Rosser
We did say at the end that we welcomed the objectives of the order, so we are not in any argument about what the order is seeking to achieve. Our point was just about what appeared to be the rather different view of the Minister in the Commons—who considered the order to be short, technical and with no impact on UK shipping—and paragraph 10 of the Explanatory Memorandum, which says that the,
“available evidence base continues to have a number of limitations…significant uncertainties surrounding the impacts of this measure…it has not been possible to monetise any of the costs and benefits in this IA”.
Clearly, as far as the author of this document is concerned, it is an issue of some significance. If it were not, why are those words in there?
Baroness Kramer
Frankly, in a sense, I am with the Minister, but if one is writing a technical document one does it against very technical standards. If you went out and described to a member of the public the increase from only 40,000 SDRs—I think that was the original figure—to the current 400,000, they would see that as a significant and important change. The technical language used by those who follow a very technical process of assessment may be somewhat different. As a very effective politician with a good history, the noble Lord will appreciate that issue. I do not have a problem with the difference. If his question was on whether we have consulted people to ensure that they consider the impact is appropriate, I should say that there was extensive consultation in 2012. Given that the practical effect of this SI is to extend the international scope rather than the EU scope, the noble Lord will understand that we did not need to repeat that consultation. He will know that this is a very widely supported measure.
The noble Lord asked about class A and class B domestic vessels. As he will know, domestic vessels are defined by the areas of the sea in which they operate. Class B ships are passenger ships engaged on domestic voyages where they are at no point more than 20 miles from the line of the coast. Ships falling within the description of class A are those on domestic voyages operating at greater distances from the coast. Under the EU protocol, I believe that class A will come under these same provisions in 2016 and class B in 2018, but through the mechanism of the EU.
Lord Rosser
Is there any intention to extend this to any other groups of vessel?
Baroness Kramer
The UK had already raised its limits to 300,000 SDRs for domestic sea travel. I think that the noble Lord, Lord Greenway, referred to this. When the relevant statutory instruments are brought in to deal with those changes for 2016 and 2018, it may well be appropriate to look more broadly at the entire domestic environment. However, at this moment in time, awards are not pushing up anywhere near to the limits provided under the current arrangements and it seemed tidier to deal with the domestic situation within a similar timeframe.
I am trying to ensure that I do not go over time but an issue was raised about communication. As the noble Lord will remember, extensive consultation took place in 2012. Those conversations continue on a regular basis with the Chamber of Shipping and all the various interested parties, so there is no concern that appropriate bodies will not be aware of the relevant provisions.
Baroness Kramer
I was trying to look that up because I remember that a fairly substantial answer was given on it in the other place. However, I will come back to the noble Lord on precisely how we are informing consumers of their rights because I have to confess that it has slipped my mind at the moment.
Questions were asked about the ferry industry and the early review of the 2020 regulations. I will obtain more detail on that issue for the noble Lord, if it is available. However, a review tends to be reasonably broad ranging—that is why it is a review. Presumably, it will cover the appropriateness of the regulations and their practicality in a modern environment. I hope that I have covered those issues adequately. If there are any outstanding issues, I will be glad to follow them up in writing. I commend the order to the Committee.
Eurotunnel: Structure and Charges
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Lord Berkeley (Lab)
My Lords, I beg leave to ask the Question standing in my name on the Order Paper. In doing so, I declare an interest as chairman of the Rail Freight Group.
The Minister of State, Department for Transport (Baroness Kramer) (LD)
My Lords, I should like to take this opportunity to mark the recent 20th anniversary of services through the Channel Tunnel. The British and French Governments will move economic regulation of the tunnel from the Channel Tunnel Intergovernmental Commission to the Office of Rail Regulation and its French equivalent, and put in place a charging framework by March 2015. We are working with the French Government and anticipate that those commitments will be resolved by March next year.
Lord Berkeley
I thank the Minister for that Answer. First, I thank so many noble Lords who have campaigned for many years to get the charges for the Channel Tunnel down. It looks as though the figure for freight will come down by between 25% and 40% which is a great achievement. I congratulate the Commission, the two Governments and, of course, Eurotunnel for reaching this agreement. Will the Minister now turn her attention to France, where there is a big problem? We can get through the Channel Tunnel more quickly and cheaply, but reliability and the general obstruction from the French railways are putting a serious stop on further traffic. Will the Minister encourage the Commission to go for the liberalisation package that is currently before Parliament and the Council to try to ensure that France is not the blockage to more traffic that Eurotunnel used to be?
Baroness Kramer
My Lords, the Government are very committed to the single market. We have been strong supporters of the freight corridor strategies that will now extend from the Channel Tunnel through to London, as well as extending the reach across the continent. I take very much to heart the words expressed by the noble Lord, Lord Berkeley, and I will follow up on his proposal.
Lord Bradshaw (LD)
I am pleased to hear what the noble Lord opposite said about freight charges. Charges for passengers using the Channel Tunnel are so high that I ask my noble friend to consider whether Eurotunnel is abusing its monopoly position so that the market might be open to more providers and better services.
Baroness Kramer
As my noble friend Lord Bradshaw knows, part of the agreement that predated the infraction, which is the subject of this Question, is that the Channel Tunnel Intergovernmental Commission will be replaced by the Office of Rail Regulation for the UK side of the tunnel and by its equivalent, ARAF on the French side. Their powers will be enhanced and they will put in place a charging strategy. My noble friend will be aware, however, that when the tunnel was built, to achieve that financing, certain concessions and rights were given, which obviously predate the relevant European directives. We recognise that we must honour those contractual commitments, although they have changed somewhat over time, as has the EU. I do not want to give too strong a commitment to my noble friend Lord Bradshaw, but I can say that the issues he raises are being looked at seriously.
Lord Davies of Oldham (Lab)
My Lords, the Minister can bask in the congratulations to the Government and all those involved on the progress that has been made recently on the operation of the tunnel. Will she concede that progress has been due partially to the threat from the European Commission to take infraction proceedings against the British and French Governments unless there was improvement? In the areas of improvement that are scheduled, is she able to include the possibility in the near future of train services to Frankfurt operated by Deutsche Bahn?
Baroness Kramer
My Lords, I am aware that a number of train companies are now looking at potential services through the Channel Tunnel. We would obviously welcome that as it expands the range of choice for people in the UK who wish to use the train. It would obviously create another avenue for tourism into the UK. As we build HS2, which will extend high-speed lines in the UK, it will enhance the use of high-speed and rail travel to the continent as well. I understand that there are no significant barriers; it is a matter of finding appropriate commercial arrangements, which I would leave to the commercial parties involved.
Lord Dobbs (Con)
Is my noble friend aware that some 300,000 French citizens live in this country? Some estimates put it even higher, and the number is growing. Indeed, the Mayor of London, Boris Johnson, reckons that he is in charge of the sixth largest French city on the planet. Does my noble friend put the great and growing attractions of this country in French eyes down to cheap fares, or might it have more to do with the cautious but creative economic strategy being pursued so successfully by her right honourable friend the Chancellor of the Exchequer?
Baroness Kramer
I can see that this is a wide-ranging question. Perhaps I may just say that, as a Londoner and as a true Brit, I find living in this country to be exceedingly attractive. I am not at all surprised that it is highly attractive to the French, especially those with an entrepreneurial turn of mind.
Lord Lea of Crondall (Lab)
Is the Minister aware that the real moral of this story is that strong EU rules are needed to make the single market work in the interests of the customer?
Baroness Kramer
I very much agree that a single market can exist only when there is effective regulation. The UK would have said that the prior arrangements had the necessary stamina, but we are very welcoming of the new shape of economic regulation that will have an impact on the Channel Tunnel as we go forward.
Airports: Heathrow
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Lord Spicer
To ask Her Majesty’s Government whether they have made any assessment of the future ability of United Kingdom airlines to operate out of Heathrow Airport.
The Minister of State, Department for Transport (Baroness Kramer) (LD)
My Lords, the Government have made no such assessment. The future ability of United Kingdom and other airlines to operate at specific airports is a commercial matter for airlines and airports. The Government publish aviation forecasts for the UK, including air transport movements and passenger numbers, most recently in January 2013. The independent Airports Commission will report in 2015 on any recommended requirements for additional capacity to maintain the UK’s global hub status.
Lord Spicer (Con)
Is the Minister aware that it is because of the uncertainties about capacity at Heathrow that British Airways is undecided about whether to keep a big hub there? Would that not have been unthinkable in the 1980s, for instance, when Heathrow was the No. 1 international airport in the world and when I was Minister of Aviation?
Baroness Kramer
My Lords, Heathrow is an incredibly successful airport where many people vie for slots. The commission has been clear that there is no crisis of capacity in the south-east now, although it concluded that we will need one additional runway in the south-east by 2030 and, in all likelihood, a second by 2050. In the mean time, the noble Lord will note that the UK has the third-largest aviation network in the world after the USA and China. London serves 360 destinations, in comparison to Paris at around 300 destinations and Frankfurt at 250.
Lord Bradshaw (LD)
As regards the information that we have had today about climate change, will the Minister update the House on what progress is being made to improve the ground connections, specifically the rail connections, from Heathrow, which matter whether or not we have a third runway there?
Baroness Kramer
My Lords, we expect the commission’s recommendation to be consistent with our plans to cope with climate change, but the noble Lord will of course be aware that the commission, among others, reported into HM Treasury’s national infrastructure plan, which was published on 4 December. That recommended quite a number of enhancements for rail access. As a consequence of that, work will be done to provide rail access at Heathrow from the south. More is being spoken about that today as part of the announcement of how Network Rail will spend £38 billion that has been provided. Indeed, further enhancements to surface access for Gatwick and Stansted are in that national infrastructure plan.
Lord Clinton-Davis (Lab)
The Minister is complacent. Does she realise that while we delay, Frankfurt, Schiphol and Paris are all thriving and expanding? Meanwhile, the main sufferers will be British Airways and British aviation. Is it not time for an altered Heathrow to provide the obvious choice for expansion? In that way, British airlines will expand with it.
Baroness Kramer
My Lords, as the House will know, the Davies commission is looking precisely at the capacity issue in the south-east and will recommend what it considers to be the best way to respond to it. That report will come in 2015. The Government of the day will then decide how to respond to the report. Given the quality and quantity of the work, it would be wrong to pre-empt that decision.
Lord Stoddart of Swindon (Ind Lab)
My Lords, I congratulate the Government on their decision to extend Crossrail to Reading after much representation by the local authority, residents and indeed Members of Parliament. Will the Minister confirm that that will provide after 2019 a direct link to Heathrow, which will serve well not only Reading but the many other places that can be reached from Reading? I declare an interest as I live there.
Baroness Kramer
The link from the west is crucially important. More was said again today in the announcement about Network Rail and we are always delighted to hear congratulations.
Lord Davies of Oldham (Lab)
We all know that the Government congratulate themselves on having kicked into the long grass the crucial issues of what to do about an additional runway in the south-east. But Sir Howard Davies produced an interim report in 2013, which had some constructive suggestions. I cannot for the life of me understand why the Government are similarly inert about those issues. For instance, one of his recommendations was that we should establish an ombudsman to identify the irritation, difficulties and problems associated with noise at Heathrow. Why on earth do the Government not act on that? After all, we know that the big problem with regard to the location of the additional runway is people’s anxiety about noise.
Baroness Kramer
The noble Lord is right that there are many interesting suggestions in the interim report. The Government will respond to that shortly, but they are substantial recommendations that deserve a great deal of consideration before we come to a conclusion. As I said, we will respond shortly, but unfortunately I am not in a position to do that today.
Baroness Tonge (Ind LD)
My Lords, will the Minister accept that the present method of measuring the noise of aircraft coming in and out of Heathrow is seriously deficient? In fact, the lowest levels disturb residents far more than anyone can imagine. Will she say what plans the Government have to revise how they measure noise levels from aircraft, following the noble Lord’s question earlier?
Baroness Kramer
The issue of noise, as people will understand, is a contentious one that has been addressed in a number of ways in the interim report presented by the Davies commission. Our response to that noise issue will be part of our response to the overall interim report.
The Lord Bishop of Birmingham
My Lords, will the Minister take note of the increased capacity of regional airports in this country—for example, the extended runway at Birmingham? Will she encourage airline users and businesses to use these airports not only for the convenience of British travellers but also for the increased capacity and enjoyment of visitors to this country?
Baroness Kramer
My Lords, it is indeed true that regional airports play a very important role. That has been widely recognised in the Aviation Policy Framework published by the Government last March. It is also true that Birmingham is expanding its runway; there are other upgrades of various kinds at both Bristol and Southend; and Manchester Airport is playing a very important role with its airport city enterprise zone development project. I recommend those airports strongly to anyone considering travelling.
Disabled People: Blue Badges
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Lord Touhig
To ask Her Majesty’s Government how they plan to ensure that people whose mobility is not impaired solely by physical disability, and their carers, will continue to have access to blue badges for their vehicles when they need them following the introduction of the Personal Independence Payment to replace Disability Living Allowance.
The Minister of State, Department for Transport (Baroness Kramer) (LD)
My Lords, people who receive a personal independence payment because they cannot walk further than 50 metres will automatically be eligible for a blue badge. However, people who do not meet this criterion may still apply directly to their local authority to see whether they meet any of the other eligibility criteria. Whatever their disability, they may be eligible if it causes very considerable difficulty in walking.
Lord Touhig (Lab)
My Lords, I declare an interest as vice-president of the National Autistic Society. People with autism are having great difficulties in obtaining blue badges as a result of changes to the eligibility criteria associated with the personal independence payment. Will the Minister look at the guidance given to local councils on blue badges, so that we can ensure that people with cognitive impairments can park near the services that they need? Will she also agree to meet representatives of the National Autistic Society, other noble Lords and me, so that we can further this discussion?
Baroness Kramer
My Lords, I say to the noble Lord, Lord Touhig, that I would be very pleased to meet, so we will make sure that that goes into the diary. Your Lordships will be aware that, as the DWP is reassessing DLA claimants for the new PIP benefit, those who do not qualify under the relevant PIP can retain their existing blue badge until it expires so that there is a time period to get into the new programme by applying to the local authority. The department is clarifying its guidance, which is being written at the moment, to make it clear to local authorities that any permanent disability can be physical or otherwise. In other words, it need not be physical. The test is that it causes very considerable difficulty in walking; that is the qualification for a blue badge.
Baroness Seccombe (Con)
My Lords, blue badges are a very precious privilege. For my husband, they were a life changer. Does the Minister agree that there is nothing so irritating as seeing a young, fit person using a blue badge to park illegally, and is there any more that can be done to stop that illegal practice?
Baroness Kramer
My noble friend is absolutely right that abuse of the blue badge system is thoroughly despicable, and we are determined to stamp down on it very hard. This House has played an important role, as my noble friend Lady Thomas of Winchester brought through the House the Disabled Persons’ Parking Badges Act 2013, which enables enforcement officers to operate in plain clothes and to seize badges that are being misused by any person. That is a very significant difference. We have introduced a nationwide database so that enforcement officers can check all UK blue badge details and download a photograph of the holder at the roadside on handheld devices. There have also been a number of other regulatory and administrative changes, all of which strengthen enforcement. At this point in time they are sufficiently new that I do not have figures to indicate how effective the scheme has been, but anecdotally local authorities are informing us that it has greatly strengthened their hand.
Lord Wigley (PC)
Does the Minister realise that the person who is walking away from a car may be the parent or carer of a disabled person who has that need, and should not be subject to that judgment? Does she agree that parents and carers of children with autism or a learning difficulty, who in some cases lack awareness of the dangers of a road, should also benefit from the blue badge scheme?
Baroness Kramer
I have to confess to being slightly confused by the noble Lord’s comment if he is suggesting that carers can use the blue badge when they are not with the person who has the need. The relevant test would be that the person who is in need of the blue badge is indeed there. That is possible thanks to the new mechanisms which have been provided. I am sure that the noble Lord will join me in saying that misuse cheats everyone who needs and deserves a blue badge.
Lord Davies of Oldham (Lab)
My Lords, I am sure that the Minister will agree that the introduction of the PIP has been carried out somewhat chaotically, with people waiting for ages for a decision on their application. Have the Government yet found time to identify the possible number of those who were eligible for a blue badge but who are unlikely to qualify under the new scheme?
Baroness Kramer
I do not have those numbers yet because this is sufficiently new. Currently, more than 2.5 million people hold blue badges and the vast majority of them will qualify under PIP. I should say again that local authorities will make determinations on a case-by-case basis of those people who apply for a blue badge under other eligibility criteria. We will have the information eventually, but the answer is not available at this point in time.
Baroness Hollins (CB)
My Lords, is the Minister aware of the difficulties that the carers of autistic adults face when trying to access regular facilities like shops and doctors’ surgeries if they cannot park anywhere near them? It may be that their son or daughter looks just like any other fit adult.
Baroness Kramer
The guidance that has been provided to local authorities, which will be looking at the applications, makes it clear that eligibility is not limited to physical constraints but can be broadened to include mental health or learning difficulties as the justification. The test will be someone’s ability to walk, and that is a fairly broad terminology.
Baroness Browning (Con)
My Lords, I refer to my interests in autism charities as set out in the register. I was encouraged by the reply given by my noble friend to the noble Lord, Lord Touhig, but can she confirm that the legislative link between the higher rate of DLA and the blue badge has now been broken as far as autistic people are concerned? In renewing or revising the guidance to local authorities, can she confirm that no autistic person will be put at a disadvantage under the new scheme as compared with the old one?
Baroness Kramer
I have to say to my noble friend that the scheme is different, because the test is now related to walking rather than to the benefit that underpins it, except for the, frankly, fairly substantial category of people who are eligible for PIP and who cannot walk for the relevant 50 metres. It is different in character, but it will be for local authorities to identify where the difficulty in walking exists. As she will know, there are some autistic people for whom this is not an issue, while there are others for whom it is. Making the distinction will fall to local authorities.