Railways: Line Resilience

Baroness Kramer Excerpts

Monday 10th March 2014 Lords Chamber

[Lord Berkeley]

To ask Her Majesty’s Government what progress they have made in commissioning a study into alternative inland resilient rail routes to avoid the coastal route between Exeter and Newton Abbot.

[The Minister of State, Department for Transport (Baroness Kramer) (LD)]

My Lords, the Government have commissioned Network Rail to undertake a study to identify options for providing a resilient rail route west of Exeter and rail access to the coastal communities in the Torbay area. We have also asked Network Rail to implement schemes already identified to resolve weather-related problems in the Thames valley and west of England. However, the immediate priority is to restore rail services on this route as soon as possible.

[Lord Berkeley (Lab)]

I am grateful to the Minister for that Answer but, as we have had a lovely weekend and spring is clearly in the air, it is very easy for Ministers to forget about the disasters of the winter and to hope that they go away and that they will not have to spend the money. Will the Minister agree to come back to the House in a year’s time, just before the election, and say, “We have implemented all these long-term resilience measures that I mentioned, and a few more, and they are either finished or well on their way, and funded”?

[Baroness Kramer]

I always hesitate to say anything other than yes to the noble Lord, Lord Berkeley. As he will be well aware, we have a timetable for the long-term resilience project. We have completed the projects that were timetabled for 2013-14, such as the Whiteball tunnel, and others are timetabled for future years. However, the essence of what the noble Lord is talking about in terms of having a programme to make sure that we achieve resilience will be done over the next few months. The study that Network Rail is doing will lead to an interim report being published in July, which will result in a very important discussion in this House.

[Lord Bradshaw (LD)]

Will my noble friend also take into account in her consideration the fact that, in finding an alternative route, the opportunity probably exists to cut 20 or 25 minutes off the journey time from Cornwall, which would be a massive improvement, akin to that achieved by HS2 between London and Birmingham? Perhaps she would have a look at that.

--- Later in debate ---

[Baroness Kramer]

I hope that very shortly we will have the terms of reference for the Network Rail study, which it intends to carry out in close co-operation with local authorities and LEPs. Network Rail has made a request to me that people pass ideas on particular routes back to it directly. However, if any Peer wishes to do so through my office, I will make sure that that information is communicated so that the study is as thorough as it needs to be.

[Lord Faulkner of Worcester (Lab)]

My Lords, the Minister’s initial Answer was very welcome and we look forward to seeing the outcome of those studies. Will she take this opportunity to congratulate Network Rail on bringing the line through Dawlish back into use significantly earlier than appeared to be likely? I understand that Network Rail had something like 100 people working seven days a week on the restoration of the line, and it is to come back into use on 4 April or even earlier. I declare an interest as a member of the First Great Western stakeholder board.

[Baroness Kramer]

I say to the noble Lord, Lord Faulkner, that that is probably the most delightful question I have ever received because it indeed gives me the opportunity to congratulate and thank Network Rail for its incredibly hard work both during the days of crisis and since. We expect the Dawlish line to be back in use no later than 4 April—well in time for Easter—and that took a very strenuous effort. While I am at the Dispatch Box, perhaps I may also thank: the travelling public, who handled this situation so well; the bus and coach companies, which provided an alternative to rail; the train operators themselves, which provided, for example, special ticketing arrangements whereby people did not lose out because they could not make advance bookings; Flybe, which doubled the number of its flights to Newquay; and probably others whom I have missed. There are many to thank and I appreciate this opportunity to do so.

[Lord Dykes (LD)]

How long will it be before the completion of the new north Oxford to London line?

[Baroness Kramer]

I say to my noble friend Lord Dykes that I do not have the data in the foremost part of my mind. As he knows, the matter is very much under discussion and I will get back to him with whatever detail is available.

[Lord Brooke of Alverthorpe (Lab)]

My Lords, among those for whom there is a residual problem are the poor, beleaguered commuters travelling from Hastings to London, who for weeks now have had disruption due to flooding and have been trying to secure refunds from the rail operative. What are the Government doing to bring those rail companies into line, ensure that people are given a full refund for the tremendous inconvenience that they are suffering, which goes on and on, and bring this to an end quickly?

[Baroness Kramer]

This is the Tonbridge to Hastings route, which was closed because of a landslip. My understanding is that the reopening is delayed due to ground movement. We very much hope that the line will open again shortly but if there are issues—and I understand from the noble Lord that there are—will he pass them to my department and we will make sure that that they are passed on to the appropriate institutions for proper answer?

[Lord Jenkin of Roding (Con)]

I draw my noble friend’s attention to the excellent report produced by the Department of Energy and Climate Change on the severe weather over Christmas 2013. This indicates that a great deal can and has been done but one needs to know about it and find out what it all is. Would not a report of that kind, produced by my noble friend’s department, be extremely valuable?

[Baroness Kramer]

I assure your Lordships that there is constant monitoring, and a cross-departmental ministerial recovery group now meets weekly to discuss flooding issues. We take it in turns within my department to attend that meeting and make sure that the process is ongoing. It is also accurate to say that responsibilities have been divided up among a number of us to make sure that monitoring is effective; my responsibility will be as the ministerial representative for flood recovery for Gloucestershire and Worcestershire. Similarly, others have regional responsibilities and I will make sure that we report back as we get information through that process.

[Lord Davies of Oldham (Lab)]

My Lords, the Minister knows that the floods have already cost something like £170 million. We are aware that the Prime Minister says that money is no object, and we will bear that in mind when the costings come through. However, how will Network Rail cope with the additional funding that will be necessary, either for the alternative line to which my noble friend Lord Bradshaw referred or for making the Dawlish line absolutely secure? Is the Minister being somewhat premature in praising Network Rail without convincing everyone that its funding will be adequate?

[Baroness Kramer]

Perhaps I can give the noble Lord some reassurance. Network Rail has estimated the cost of resilience projects—not recovery, which is handled separately—at £31 million. It is putting £5 million of its existing funding into the pot, and new money of £26 million is going towards that. If, when we get the interim report, we are starting to look at something much bigger—effectively, new construction—we will need to sit down and plan that properly.

London Underground: Industrial Action

Baroness Kramer Excerpts

Monday 10th March 2014 Lords Chamber

[Lord Carrington of Fulham]

To ask Her Majesty’s Government what assessment they have made of the impact on the economy of the industrial action on the London Underground in February.

[The Minister of State, Department for Transport (Baroness Kramer) (LD)]

My Lords, the Government have not made such an assessment. Responsibility for London Underground, including industrial disputes, is a matter for the Mayor of London and Transport for London. The industrial action last month was regrettable and will undoubtedly have had a significant economic impact, but there is no straightforward or standard way of quantifying this.

[Lord Carrington of Fulham (Con)]

I am grateful to my noble friend for that response. Does she agree that the major damage caused by the strike was not monetary, but in terms of the aggravation, frustration and inconvenience caused to the poor benighted citizens of London? This raises the question of whether it is not time to reconsider whether strikes in public sector monopolies should be made illegal, or at the very least whether trade unions should be required to get a vote of two-thirds of the workforce in favour of action before calling a strike.

[Baroness Kramer]

My Lords, I join in celebrating the heroism of Londoners in coping with such situations, which are very stressful and inconvenient. Last autumn, the Department for Business, Innovation and Skills announced a review of industrial disputes, and we hope to hear more detail on that shortly. At this moment in time the two sides in the London Underground issue are in negotiation and are due back at ACAS on 4 April. I think that this is a good time not to pour petrol on flames.

[Lord Bradshaw (LD)]

Will my noble friend take account of the fact that at many London terminus stations connecting with the Underground, there are huge queues of people and a lot of machines that work only slowly? For London Transport to say at this time, “We are going to close all the ticket offices”, sends out the wrong signal. London Transport needs to overhaul what is going on, at which point it will have a much better case to take to the trade unions.

[Baroness Kramer]

I am afraid that essentially I cannot agree with the noble Lord, Lord Bradshaw, on this one. Only 3% of journeys actually include going to a ticket office. The number of visits has fallen extremely sharply as people turn to buying online, using machines, taking advantage of systems like the Oyster card and, increasingly, using their bank cards. As he will know, the goal of London Underground is to change the role of those working with these ticketing issues by bringing them out from behind the glass of the ticket office and on to the platforms. They will be given a much wider range of responsibilities to help people, building on the kind of experience we had with the Games makers in the Olympics. They should be able to teach and train people to use the machines and provide support in a much more effective and flexible way. I would think that that has to be the future and a reasonable path to tread.

[Lord Balfe (Con)]

Does my noble friend agree that we should think very carefully before we impose further restrictions on the freedom of trade union action? If one looks at the strike, one can see that it was not very successful at all. There are also fundamental matters of human rights involved in legislating in this area.

[Baroness Kramer]

Your Lordships are right to say that Transport for London, or London Underground, was able to run about 40% of its trains during the strike and that Londoners, although under stress, found different ways to get to work—as Londoners do. As I say, at this point in time the two parties are talking, and I hope very much that they are talking constructively. BIS is planning a review of the whole area of industrial disputes, and I think it is best if I do not add yet another set of views.

[Lord Kinnock (Lab)]

Does the Minister accept that the consequences of strikes in public transport are invariably that people are deeply inconvenienced, demoralised and absolutely furious—with justification? However, would she advise those who are asking for bans on strikes in public transport to acknowledge the fact that in a free society, if workers in crucial services are denied by law the right to strike, their resentments and difficulties will then find expression in even more inconvenient ways? That is the reality of democracy.

[Baroness Kramer]

All Members of this House recognise that there is complexity around all of these issues. They need a great deal of thought and a great deal of debate.

[Lord Naseby (Con)]

Is my noble friend able to clarify the figure of 3% that she quoted? Does it not represent millions of journeys made on the Underground, and are not the majority of those made by tourists? Do we not want to be able to attract tourists?

[Baroness Kramer]

I do not have a breakdown of how the 3% is divided up although I assume that tourists are a significant part of that number. If tourists can turn to someone on the platform—someone who is clearly in a uniform, who is able to help them and who possibly has access to another language, where necessary, if that might make it easier—and ask that person about their journey and be directed, that could make London Underground very attractive to them. It is similar to what the Games makers did during the Olympics.

[Lord Davies of Oldham (Lab)]

My Lords, does the Minister agree that it is incredibly impolitic to raise the issue of trade union rights at this time, when in fact the second potential industrial action of this dispute was called off? The dispute is now before ACAS; both sides are talking constructively and we hope for a successful outcome. If there is going to be political point-scoring, all of us can do that. After all, in 2010 the Mayor of London said:

“This Mayor takes his promises to Londoners extremely seriously. Every station that has a ticket office will continue to have one”.

[Baroness Kramer]

I believe that debate in this House and in this country as a democracy is always good, no matter the timing of it. I join your Lordships in hoping for a very successful outcome to these negotiations.

[Lord Anderson of Swansea (Lab)]

My Lords, I invite the Minister to attend Paddington station in the early hours—say between 8 am and 10 am every morning—to see the long queues forming for the ticket office. She might revise her views if she did so. I hope that Transport for London might do the same and recognise that there is validity in the trade union case, at least in that respect.

[Baroness Kramer]

I have often been to Paddington station, and obviously there are additional issues for stations linked to the overground rail. Once again, this is a different way of providing a service, not a case of eliminating the service. It is important to consider how those systems can work effectively. It will ultimately be a decision for TfL.

Aviation: Regulatory Burden

Baroness Kramer Excerpts

Tuesday 21st January 2014 Grand Committee

[The Minister of State, Department for Transport (Baroness Kramer) (LD)]

My Lords, I am delighted to address this Question for Short Debate which my noble friend Lord Rotherwick has introduced on reducing the regulatory burdens on general aviation. I am grateful to the noble Lord for securing the opportunity for this debate to take place. I am aware of his interest and great expertise which far exceeds mine, so I am delighted that he and other noble Lords with experience have spoken in this debate. This is a useful opportunity to update noble Lords on the work which is currently taking place and to address some of the key issues that have been raised today.

Noble Lords may be surprised by the number of activities covered by the general aviation industry, including maintenance and pilot training, gliding and ballooning, as well as the operation of small aircraft for leisure or business purposes. The sector covers a wide spectrum of aircraft types and activities, ranging from paragliders and microlights to business jets. There are around 20,000 civilian aircraft registered in the UK, of which 95% are engaged in what can be described as general aviation activities.

The value of the GA sector and its contribution to the UK economy should not be underestimated. The 2006 strategic review of general aviation, carried out by the CAA, estimated the UK’s GA industry to be worth approximately £1.4 billion in 2005. This highlights the important economic contribution which is made by the GA sector. The sector currently supports around 50,000 jobs in the UK and has a strong track record of providing high value-added employment opportunities across a range of areas and supply chains.

I am sure that noble Lords are aware of the Government’s deregulatory red tape challenge because it has been so well addressed in this debate. In 2012, all existing aviation regulations were scrutinised, but at the start of 2013, the Minister without Portfolio, Grant Shapps, proposed that a further red tape challenge should be undertaken, specific to GA issues. I am sure that Grant Shapps and Andrew Haines will appreciate the warm comments by the noble Lord, Lord Rotherwick, on what they have achieved, which were echoed by the noble Earl, Lord Liverpool, the noble Viscount, Lord Goschen, and the noble Lord, Lord Bradshaw.

In this context, I assure the noble Earl, Lord Liverpool, and the noble Viscount, Lord Goschen, who raised the issue, that the red tape challenge is being handled in a most judicious way. The concern that they raised about medicals is an area that will certainly be reviewed by the GA panel to see whether there are more proportionate ways of delivering the process of providing and maintaining licences. However, it will be done only with an understanding of the importance of the robustness and safety required. When the panel reports, Ministers will consider very carefully any recommendations in this area and will discuss them in great detail with the CAA.

The GA red tape challenge received nearly 500 responses —three times as many as any other theme to date. The responses identified many areas where improvements are needed and highlighted the need for a change in the approach to regulating GA. In response to this, a substantial programme of reform has recently been launched with the aim of helping to support a vibrant UK GA sector.

The Civil Aviation Authority, the independent regulator, has recognised the need to create a culture change in its regulation of the GA sector. It has incorporated the findings of the GA red tape challenge into its own internal review to produce a comprehensive GA reform programme. This will support a programme of deregulation and self-regulation for the GA sector, remove complexity, look to deregulate and delegate where possible and, where not, consider how to allow the GA sector to take on more responsibility and accountability for its own safety where possible and appropriate.

As part of that programme, the CAA announced the setting up of the specialist unit—which, again, has been widely praised in this debate—dedicated to GA issues. I can confirm that it will indeed be operational from April this year. This recognises that the GA requires different, less onerous regulation compared with that for commercial air transport and it demonstrates the CAA’s commitment to addressing GA issues. It will provide effective and proportionate regulation which supports and encourages the growth of the GA sector. As others have mentioned, Andrew Haines, the chief executive of the CAA, and his team are very committed to making the unit a success.

I assure noble Lords that the CAA will work closely with the GA community as regulations are developed, providing opportunities for the sector to challenge those regulations when it believes that they are unduly burdensome. For example—to take up a point that has been raised—there will be far greater scrutiny of the CAA’s fees and charges in order to provide greater transparency. On the issue of onerous fees, the CAA is committed to reducing the charges that it places on the industry, and it has agreed to work to reduce fees and charges by 3% in real terms by 2015-16. It must also report on issues such as efficiency.

The noble Lord raised a number of specific issues, most of which have already been explored by the CAA. They include informed consent, which would allow members of the public to pay for flights which are not designed to meet the same requirements and standards as a commercial carrier. However, it must be stressed that the CAA will consider this alongside other initiatives intended to bring proportionate oversight to address the safety risks associated with aviation activities.

The noble Lord, Lord Rotherwick, is right: the CAA is looking at options for delegating certain functions to industry associations, and he named a number of them. They are well placed to deliver regulatory oversight in a manner proportionate to the needs of the sector. However—and he may be slightly disappointed when I say this—the CAA will seek to introduce market access opportunities for suitable qualified entities because it believes that in some areas where there are no existing arrangements, this will help to provide those new and required opportunities.

The CAA welcomes the GA sector’s involvement in agreeing its charging schemes, as I mentioned earlier, and it recognises some of the concerns expressed about the fees and charges. As a result, it is proposing to establish a GA sub-group of its Finance Advisory Committee specifically to take on the issue of fees to ensure that they are proportionate as well as transparent.

Another specific area of concern is the availability of airspace for GA operators. The community often takes the view that this has been reduced as controlled airspace has grown to favour commercial aircraft. Actually, the opposite may often be the reality. For example, between 2010 and March 2012 the total volume of controlled airspace within the UK was reduced by 214 cubic nautical miles. The CAA is aware of these concerns and ensures that its airspace change process is public and that all decisions made are fully explained. A principal benefit envisaged within the future airspace strategy is the potential to capitalise on the improved performance characteristics of modern commercial aircraft, which will allow other airspace users, including GA, to benefit from the airspace volumes released beneath them.

The GA challenge panel is an important element. It is independent and includes representatives from the GA industry. The panel is providing a “critical friend” function to the CAA and will work with the regulator to challenge its GA reform programme, challenging the CAA to be consistent, transparent and innovative in its approach to GA regulation and supporting the CAA as it strives to deliver genuine change in its approach to GA regulation.

The panel is considering projects which have the potential to promote growth within GA and opportunities for further reducing the regulatory burdens on the sector. It is also considering options for simplifying existing European safety requirements, an issue discussed in the debate, and assessing the progress being made to bring about a culture change within the CAA. The challenge panel will report directly to Ministers Grant Shapps, Robert Goodwill and Mark Harper in the Home Office in April, with an interim report due before then in late January. The panel’s existence will be short term, but the role it is performing and the report it will produce will provide a platform for improving the regulation of the GA sector.

An increasing number of the regulations which impact on GA ultimately derive from the European Aviation Safety Agency. The Government and the CAA have been proactive in lobbying for reform and fully support the EASA road map for general aviation, which came about as a result of the GA sector sharing its concerns about the proportionality of its rules. The EASA has recognised that much of its regulation has been overly burdensome and the road map proposes a series of reforms and changes in approach.

We welcome the fact that the European Commission has accepted the UK's recommendation that an evaluation of the application of commercial aviation safety requirements to general aviation should be included in the rolling regulatory fitness and performance programme. We will continue to work with the European Commission to ensure that this evaluation is both rigorous and evidence-based. Recent announcements such as securing the EU’s agreement to allow the UK to continue issuing the instrument meteorological conditions rating for pilots until April 2019 are encouraging and demonstrate EASA’s willingness to reconsider its regulatory policy in relation to GA. The Government also welcome the CAA’s commitment to eliminating gold-plating of EU regulations and Ministers are due to meet with the EASA next week.

On the serious issues concerning the border agency, I say to the noble Lords, Lord Davies of Oldham and Lord Bradshaw, that the GA challenge panel is meeting with the border agency, hopefully next week. I understand that the issues have been raised and that consideration will be given to whether they are onerous or appropriate. There is a mechanism for taking the issues forward.

The noble Lord, Lord Davies, raised the question of airfield planning. Planning issues are always contentious but, luckily, they tend to be local issues.

I shall be meeting the noble Lord, Lord Bradshaw, on the Isles of Scilly and I thank him for giving me a heads up on many of the issues he will wish to address in that meeting. However, there is not time for me to deal with them now.

The noble Viscount, Lord Goschen, asked about innovation. There is innovation grant funding for GA and the DfT is currently working with the GA challenge panel to identify suitable projects.

There is movement on all fronts. I thank all noble Lords who are present. My time is up. I am not sure that I will be able to take the noble Lord’s question.

[Lord Berkeley]

Could I remind the Minister that I am Lord Berkeley, not Lord Bradshaw? I think she got us muddled up.

[Baroness Kramer]

I consider it an insult to neither noble Lord that I might have confused them for a brief moment. I certainly know who they are, and both are remarkable in the area of transport.

Shipping: Passenger Safety

Baroness Kramer Excerpts

Wednesday 15th January 2014 Lords Chamber

[Lord Berkeley]

To ask Her Majesty’s Government what assessment they have made of the impact on passenger safety of their application to the Committee on Safe Seas and the Prevention of Pollution from Ships for exemption for certain ships and areas of operation from European safety requirements in order to substitute life rings for life rafts.

[The Minister of State, Department for Transport (Baroness Kramer) (LD)]

My Lords, Her Majesty’s Government require all vessels to carry enough life rafts to meet the risk to those on board in an emergency. The proposal submitted to the Committee on Safe Seas and the Prevention of Pollution from Ships is based on UK regulations for domestic passenger ships and is supported by the department’s formal safety assessment of domestic passenger ships carried out between 2002 and 2004 in response to Lord Justice Clarke’s formal inquiry into the “Marchioness”/“Bowbelle” collision.

[Lord Berkeley (Lab)]

I am grateful to the noble Baroness for that response. My understanding is that this exemption application applies to passenger ships with up to 130 people on them, which, under directive 2009/45, article 4, allows them to go 15 miles from the place of refuge or five miles from the coast in the summer. The idea is to reduce the number of life rafts to the maximum number of passengers—not allowing, of course, for the fact that you cannot always launch life rafts if a ship is heeling—and to replace the rafts removed with life rings. Does the Minister really think that it is a good idea for people who might be wrecked in an accident in the North Sea or off the Hebrides to have to get into a life ring rather than a life raft?

[Baroness Kramer]

My Lords, my understanding is that this exemption is for up to five miles and therefore would not apply in most of the circumstances that the noble Lord has just described. It is for small craft of less than 24 metres which have to be travelling in daylight and in summer only. They are required to have sufficient life rafts for all passengers but additional safety can be provided by buoyancy apparatus.

[Lord Higgins (Con)]

My Lords, are life rafts generally not preferable to life rings, particularly if the water is cold? Is the saving in this negotiation really significant? Presumably all existing vessels already have the current requirement rather than the reduced one.

--- Later in debate ---

[Baroness Kramer]

My Lords, there is clearly some confusion. The EU directive was designed for the large, steel ferries that I think noble Lords are referring to. These are small craft. Existing small craft already have this exemption; it is simply as they are replaced that newer craft can have the same exemption. The rationale is simply that on a very small boat there is very little space for adding one additional life raft, which is what would be required by the directive. You would have to take off passengers. These are usually small, family operations operating on a tight financial margin and, as I say, it is within five miles of the coast so that if something untoward were to happen, modern life rafts are very reliable and air-sea rescue is very close at hand. Therefore, the marginal benefit is considered very marginal.

[Lord Lea of Crondall (Lab)]

My Lords, I am rather exercised by the fact that Britain over the past 100 years has had the reputation of giving leadership in the International Maritime Organisation, which is across the road there, with the highest standards in world shipping. I am trying to think of the read-across of this to the Philippines archipelago, to Indonesia and so on. Two very brilliant new books on seafaring that have just come out show that many safety standards are now deteriorating. Will the Minister give an assurance that, within the IMO and elsewhere, the British Government will continue to listen to the problems of workers on seagoing ships and that the Government’s contacts with the employers will be equally matched by their contacts with the trade unions?

[Baroness Kramer]

My Lords, the UK has been an absolute leader in marine safety and I can guarantee that this Government will continue to be. I will ask about various discussions that are taking place with the IMO and other stakeholders, and make sure that we write back to the noble Lord.

[Lord West of Spithead (Lab)]

Is the Department for Transport involved in any studies looking at lessons learnt from, for example, the “Costa Concordia”, and at the inability to launch lifeboats and life rafts at excessive degrees of heel?

[Baroness Kramer]

My Lords, I do not have the answer to the noble Lord’s question but I will obtain it. I want to make it very clear, however, that the exemption being sought is not for a boat like the “Costa Concordia”. We are talking about something much smaller in benign waters very close to shore.

[Lord Greenway (CB)]

My Lords, is not this application one of a number which have arisen from the formal safety assessment by the Maritime and Coastguard Agency which I as a mariner regard as entirely practical?

[Baroness Kramer]

The noble Lord is exactly right. I think that this is regarded by almost everybody as a practical, reasonable and sensible measure. It has withstood over many years a reputation of providing sufficient safety in the relevant circumstances.

[Lord Swinfen (Con)]

My Lords, what would be the comparative rates of survival for the two methods, life rafts and life rings, in cold winter water around our northern coasts?

[Baroness Kramer]

I assure your Lordships that this standard could not apply in winter weather; it is for summer only. It is for boats that are very close to the coast and for small excursion vessels. It is part of an appropriate safety regime to look at how the vessels are being used and to make sure that safety is appropriate to that rather than circumstances in which they cannot be used.

[Lord Wigley (PC)]

My Lords, may I invite the Minister to reconsider her reference to benign waters? Very often, waters that appear benign can rapidly become less benign, and lifeboats are not available at close proximity all along the coast. Can we make sure that if we are erring, we are erring on the side of safety?

[Baroness Kramer]

I can assure your Lordships that, from a UK perspective, this measure meets a very high standard of safety. Both the safety required of the boats themselves and the quality required of the life rafts have been very closely examined. I have learnt in this House that the word “benign” can be wrongly used, but I think that these are generally benign waters.

[Lord Davies of Oldham (Lab)]

My Lords, the Minister is still trying to convince the House that there is virtue in pitching British safety standards below the minimum of European safety standards. Why on earth should that be done unless it is just some doctrinaire response to Europe?

[Baroness Kramer]

Perhaps I may explain, because I think that there is some confusion here. The EU directive which would require an additional life raft is not intended for this kind of vessel; it is for steel vessels and for large-scale ferries, so it does not apply to most of these craft because typically they are fibreglass, and so on. We want to be sure that we are getting an appropriate exemption for future replacement of existing craft. As I said, the EU directive is not intended to deal with this kind of craft; they are expected to be handled through an exemption process.

Railways: High Speed 2

Baroness Kramer Excerpts

Wednesday 18th December 2013 Lords Chamber

[Lord Roberts of Llandudno]

To ask Her Majesty’s Government whether they plan to establish training facilities in relation to the extra jobs anticipated to be created by the HS2 project.

[The Minister of State, Department for Transport (Baroness Kramer) (LD)]

My Lords, we expect the construction of HS2 to generate up to 50,000 jobs, which represents a huge opportunity for the UK workforce. HS2 Ltd is developing skills and procurement strategies that will identify the skills required to deliver HS2 and set out the approach to promoting skills and training throughout the procurement process. The Government will, in responding to the task force of the noble Lord, Lord Deighton, set out what we will do to support and build on this work.

[Lord Roberts of Llandudno (LD)]

I thank the Minister for her encouraging reply. With the likely approval of this new railway link and the need for 19,000 construction and engineering employees, what action will the Government take to ensure that our youngsters throughout the United Kingdom are adequately trained in sufficient time to take advantage of these opportunities? Secondly, can the Minister tell me whether the Government would consider setting up scholarships related to HS2 so that youngsters throughout the United Kingdom will be able to apply for and, we hope, find employment in this new construction?

[Baroness Kramer]

I thank my noble friend. He is exactly right that the demand for skills would be significant, not only with HS2 but with all the other infrastructure projects that are being launched thanks to the actions of this Government. My noble friend will take some comfort from the fact that the National Skills Academy for Railway Engineering, which was established in 2010 with wide railway industry support, is helping to tackle the current and future skills needs within the industry. It is working closely with HS2 to identify skills gaps and promote railway engineering skills. We obviously have the Tunnelling and Underground Construction Academy, which has played an important role in the Crossrail project; one would assume that it would do so with the super-sewer for London and then HS2. The skills academy is one of the participants, along with BIS and the DfT, with some support also provided by Siemens, in looking at training entry-level employees as well as skilling up others to respond to new technology developments in the industry with initiatives such as the Siemens Rolling Stock Academy.

[Lord Berkeley (Lab)]

My Lords, when the Prime Minister recently visited China, he announced that the Chinese would help us build HS2. Can we expect several thousand Chinese people to flood into this country, and will they be welcomed in the same way that Romanians and Bulgarians apparently will be?

[Baroness Kramer]

My Lords, the discussion was primarily about finance, rather than the range of engineering skills and jobs on which I have just reported. I can assure the noble Lord that the programme that HS2, along with various engineering companies, is taking out is targeted at schools in Britain rather than those overseas. For example, HS2 sent a contingent of 30 people to the skills show in Birmingham to which youngsters came from all over the country. I am confident that a large number of these skills can be achieved in the UK, creating a base for our youngsters to participate not only in HS2 but in a wide range of engineering projects. However, we will always consider financing from overseas.

[Lord Cormack (Con)]

My Lords, my noble friend’s enthusiasm is almost infectious but I have not caught it yet. Can she assure the House that no report on the implications and costs of HS2 will be withheld, either in whole or in part, by the Government?

[Baroness Kramer]

My Lords, I can confidently say, looking at the size of the body of documents that was disclosed with the hybrid Bill, that the Government have been putting out more data than most people have ever seen around a project of this size and interest. It is crucial that we are open and transparent and, although there will be times when we have internal discussions, the transparency has been quite exceptional in this case.

[The Earl of Listowel (CB)]

My Lords, will the Minister look at the very successful National Grid Transco young offender programme, which has trained more than 1,000 young offenders to become workers in the utilities, and see whether it can be applied in this instance? Will she also consider whether young people leaving care, who are overrepresented in the NEET category, can be drawn into this?

[Baroness Kramer]

My Lords, we are looking at this infrastructure project in an exciting way. Rather than treating it within a transport silo, we are looking much more at the regeneration possibilities. The idea raised by the noble Earl has real potential and I will definitely take it back.

[Lord Davies of Oldham (Lab)]

My Lords, in the spirit of Christmas, I have two presents: two easy questions for the Minister at this stage. Will the HS2 jobs and skills strategy, to which she referred, be published and, if so, when? Will she also clarify a little more how we will protect the skills developed through Crossrail—to which she also referred—and ensure that they will be available for HS2?

[Baroness Kramer]

My Lords, there is never an easy question from the noble Lord, Lord Davies, but I do appreciate it. As he knows, the noble Lord, Lord Deighton, is going round the country with a series of consultations looking at the economic growth issues, of which skills are a very important part. Work is happening through many strands: HS2 itself, the work of the noble Lord, Lord Deighton—whose report is expected in the spring—and other more general work with the industry. I will see whether there is a way to pull these strands together into a more comprehensive piece that would give the noble Lord the picture he is seeking.

I have now completely forgotten the second issue. Would the noble Lord mind telling me?

[Lord Davies of Oldham]

I was concerned about Crossrail.

[Baroness Kramer]

Crossrail has done two crucial things on skills. It has played an important role in the tunnelling academy and we want that to carry over. It has also been excellent at engaging with British companies in the supply chain. By number, rather than value, 97% of contracts have gone to British-based contractors. We hope to see that repeated by using the same techniques of outreach.

Dartford River Crossings

Baroness Kramer Excerpts

Thursday 5th December 2013 Grand Committee

[The Minister of State, Department for Transport (Baroness Kramer) (LD)]

My Lords, I am pleased to address this Question for Short Debate which the noble Lord, Lord Hanningfield, has secured on the Government’s plans for a new river crossing in the lower Thames area. We have had very thoughtful comments from the three noble Lords who have spoken today, often bringing up issues which have been raised within the consultation. The noble Lord, Lord Hanningfield, was right to say that this is an issue not just of local consequence but with much broader implications.

The noble Lord, Lord Hanningfield, said that he had seen the bridge built in just four years. Many of us who deal with infrastructure today think longingly of timetables such as that. However, he may be interested to know that the Government are piloting ways in which to accelerate the building of infrastructure. There are four pilots: in Surrey, on the M3 managed motorway between junctions 2 and 4a; in the West Midlands, at M6 junctions 10a to 13, which is also managed motorway; in Derbyshire, at the M1 junctions 28 to 31; and on the A160/A180 Immingham dualling scheme. We will see whether there are some good lessons to learn so that we can start to speed up the delivery of these infrastructure projects, because, as the noble Lord pointed out, that would make sense.

I know that noble Lords are concerned to know the nature and timing of the Government’s plans for a new crossing. I shall try to address that towards the end of my remarks and I hope to provide at least a measure of satisfaction.

Noble Lords will appreciate that there are serious issues at stake in reaching decisions on where to locate a new crossing and whether it should be a bridge or a tunnel. The department is carefully considering the issues reinforced during the consultation and it intends to announce the next steps shortly. I know that that response has been promised by the end of the year, before which I note that there are only three weeks left. I will allow noble Lords to draw conclusions from that statement.

I shall set out the scale of the challenge and what we have done to date. The noble Lord, Lord Hanningfield, reminded us of the history. Fifty years ago, a tunnel was opened between Dartford and Grays. Today, the Dartford-Thurrock crossing comprises two tunnels and one bridge which carry about 140,000 vehicles daily across that part of the River Thames. The noble Lord, Lord Hanningfield, basically said that they carry much more than they were designed to carry. They were designed for 135,000 vehicles, so they are definitely over that, but there is a little comfort in knowing that the current level is not hopelessly over. Of course, we recognise that this is a crucial part of the strategic road network linking London, Kent and Essex, as well as international destinations, with the rest of the UK.

In addition, the existing crossing is located in the area known as the Thames Gateway, which, as the noble Lords, Lord Hanningfield and Lord Berkeley, pointed out, has very ambitious plans for redevelopment and growth, which we obviously want to promote. The noble Lord, Lord Davies, gave us a very personal experience of surviving congestion at the Dartford-Thurrock crossing. I shall think of him and his son trying to decide which of them would be able to get through to the other more easily because the traffic was flowing northbound or southbound but not the other way.

[Lord Davies of Oldham]

Anything more sophisticated than the toss of the coin would be an advantage.

[Baroness Kramer]

I think a lot of forecasts are as accurate as tosses of the coin. Let us see what we can do about this. Journey time reliability is important, and this is consistently one of the worst performing links in the strategic road network. We think it is going to get better, not worse.

Successive Governments at national and local level have commissioned studies on congestion and possible new river crossings. The most recent report for the department, done in 2009, identified short and medium-term measures to improve traffic flows. It also concluded that a new crossing is needed in the long term and shortlisted potential locations: option A, at the existing Dartford-Thurrock crossing; option B connecting the A2 with the A1089; option C connecting the M2 with the A13 and the M25 between junctions 29 and 30; and a variant of option C connecting the M2 with the A13 and the M25 and additionally widening the A229 between the M2 and the M20. From the start, this coalition Government have been determined to act and promises made as early as the first spending review in 2010 are now being realised.

Next year will see the introduction of free-flow charging. That will please the noble Lord, Lord Davies. I know he has been waiting for that. Motorists will no longer stop at each end of the crossing to put money into a slot machine or hand it to an attendant. Believe it or not, getting this technology right has not been quite as easy as it sounds, and nobody wants to install a technology, have it go wrong and create that kind of inconvenience. Although it was hoped to bring it in late this year, it will now be coming in 2014. I believe October is the target date.

[Lord Berkeley]

I am grateful to the Minister. I am surprised she said the technology is not working very well because it is working in many other member states. In fact, I met somebody yesterday in Brussels who said that it is not only doing the charging, either fixed-point or road-user charging, but at the same time is checking whether lorries are overloaded, have not paid their licence and other things. The technology is there. It just needs applying to every toll in this country in the same way.

[Baroness Kramer]

I thank the noble Lord, Lord Berkeley, for that. I was on the board of Transport for London when we brought in the congestion charge and I can tell the Committee about the nightmare of trying to make sure that we had effective number plate recognition systems and everything else attendant on it. I suspect every one of your Lordships would rather we delayed a bit and made sure it worked faultlessly—that is probably tempting fate—rather than introduced it and had it not function properly.

[Lord Berkeley]

The Minister is right, but it has moved on since then.

[Baroness Kramer]

I fully accept that and hope the noble Lord will be pleased when he sees the system in operation.

The coalition Government are also committed to reviewing the options for a new crossing. In the 2012 national infrastructure plan, a new crossing for the lower Thames was identified as one of the coalition Government’s top 40 infrastructure projects, which are prioritised as nationally significant and critical for growth, and that continues into the current infrastructure plan.

Noble Lords will understand that we face a unique and important opportunity in choosing how to add capacity to the road network to best serve our national interests. Should we add capacity at the existing crossing linking the M25 between junctions 1a and 30, or should we add capacity further downstream linking other parts of the network? Whichever we choose will have substantial implications, and it is clearly a matter of public interest.

To better understand the relative merits of each option, the department embarked on a technical exercise to review the options. Once that review was completed in spring 2013, the department made the findings publicly available and consulted on the options from May to July this year. Noble Lords will be interested to hear that in addition to online communications, the Minister and officials met interested parties during the consultation in a series of briefings, meetings and public information events. Numerous members of the public took advantage of the opportunities and at the end the department recorded and analysed more than 5,700 responses to the consultation.

The noble Lord, Lord Davies, is right. The consultation has confirmed what many noble Lords may have expected; namely, that opinion is divided. Opinion is divided on both the case for a new crossing and on where to locate a new crossing. Those who responded to the consultation expressed a mixture of support and opposition for each of the options—options A, B, C or C variant. Respondents also made detailed comments highlighting serious issues relating to the economic, environmental and social impacts of each of the options. As I have already emphasised, our decision on where to locate a new crossing is of public interest. I know noble Lords would expect the department to respect due process and give careful consideration to the serious issues raised during the consultation. The Department for Transport intends to make an announcement shortly on next steps and to publish a summary of the consultation response. I have no reason to think that we will not be within our target of doing that by year end.

The question at the heart of today’s debate presumed that the Government would have reached a decision on whether a new crossing should be a bridge or a tunnel. Noble Lords raised issues about levels of tolls, whether tolling is appropriate and forms of financing. While the review which the Department for Transport undertook established the engineering feasibility of bridge and tunnel solutions for each location and considered the means by which it could be funded, it is clear that the detailed work that leads to decisions about technical and financial aspects is much more sensibly progressed when the Government have certainty about their preferred location.

A couple of specific issues were raised, particularly by the noble Lord, Lord Berkeley, that I have not covered. He will know that the department takes the view that a rail crossing would not address the rail-freight capacity issues forecast for the area and that demand for cross-river passenger rail services is likely to be relatively low and so it probably would not offer value for money. However, I am happy to take that issue away and look into it much more thoroughly, as well as looking into the rather strange usage patterns forecast. I will follow up on those issues with the noble Lord, Lord Berkeley.

I think that I addressed most of the direct questions asked by the noble Lord, Lord Hanningfield. There is one further issue on traffic forecasting. As he will know, it is based on population and economic growth and motoring costs. Let us follow up on that when we have more time to look at it.

I thank the noble Lord, Lord Hanningfield, for securing this debate and the noble Lords, Lord Berkeley and Lord Davies of Oldham, for their contributions. A new lower Thames crossing represents a unique and challenging opportunity. I have referred to the work undertaken to date to consider the options. I have indicated the high level of public interest in the decision on where to locate a new crossing, and I have advised the Committee that the department intends shortly to publish a summary of the consultation response and announce next steps. I trust that noble Lords will maintain their interest as we progress this important infrastructure priority.

Committee adjourned at 5.40 pm.

Motor Vehicles (International Circulation) (Amendment) Order 2013

Baroness Kramer Excerpts

Tuesday 19th November 2013 Lords Chamber

Moved by

[Baroness Kramer]

That the draft order laid before the House on 17 October be approved.

Relevant document: 12th Report from the Joint Committee on Statutory Instruments, considered in Grand Committee on 12 November.

Motion agreed.

High Speed Rail (Preparation) Bill

Baroness Kramer Excerpts

Tuesday 19th November 2013 Lords Chamber

Moved by

[Baroness Kramer]

That the Bill be read a second time.

[The Minister of State, Department for Transport (Baroness Kramer) (LD)]

My Lords, I open this Second Reading by reminding this House why so many of your Lordships across the political divide have given their support to a high-speed rail network. The noble Lord, Lord Faulkner, has said:

“There you have the essential case for building High Speed 2 —not as a separate line, physically and operationally away from the current railway, but as a crucial part of a reshaped and improved national network”.—[Official Report, 24/10/13; col. 1226.]

The noble Lord, Lord Greaves, from the Liberal Democrat Benches, who is not in his place but was involved in the previous debate, said:

“It will herald a new era for railways in Britain, and it will form a vital part of bringing together the different parts of England and closing the regional divide”.—[Official Report, 24/10/13; col. 1221.]

The noble Lord, Lord Heseltine, who sends his apologies because he is committed to a speech tonight, said:

“HS2 is about our country’s competitiveness for half a century or more. It is about so many more people sharing growth that has, for too long, been concentrated on London and the south-east. It’s all about drawing together our economy as a whole as well as improving our access to the enlarged, and enlarging, home market of Europe”.

Of course, there are opponents of high-speed rail and specifically of HS2. I respect them; they raise real challenges; and I shall address those challenges today.

The Bill before your Lordships is a paving Bill. Mercifully, it is simple and clear. It grants the Secretary of State authority to incur expenditure, which must be also approved by the Treasury. It describes the route as publicly committed, but allows for future extensions as well as connections to the wider network. It requires an annual report to be made to Parliament for all expenditure incurred, including any variation from budget. It requires reporting on those receiving vocational qualifications as a consequence of the project, and, of course, it is a money Bill. Each phase of HS2 and any future extensions will require a separate hybrid Bill without which construction cannot begin. That will be the opportunity to debate and scrutinise the route in detail and the manner in which the project will be delivered.

There are three key arguments for HS2 and the high-speed rail network that this Bill presages: capacity, connectivity and growth. In Britain, we are running out of capacity on our most important north-south routes. Demand for intercity rail travel has doubled in the past 15 years. By the mid-2020s, the west coast main line, our main rail line connecting London, the Midlands and the north, will be full. That is calculated on very modest figures for passenger growth: 2.2% a year. I should note that for the past decade demand has grown at 4.4% a year or more. Already in 2011, during the morning peak, 4,000 people were standing on arrival into Euston and 5,000 people were standing on arrival into Birmingham. It is close to impossible to get train paths for new services on the west coast main line.

We need a high-capacity answer, and that is HS2. It gives us 18 trains an hour in each direction when complete, each carrying up to 1,100 passengers. By taking long-distance travellers off the existing lines, it releases space on the west coast, east coast and midland main lines to be used for much needed regional and commuter services. Network Rail estimates that more than 100 cities and towns could benefit from the released capacity. It also releases essential capacity for freight: demand for rail freight is forecast to double by 2043, and there is not the capacity to carry it.

I am, of course, aware that many have proposed alternatives: upgrades to our existing lines to provide that capacity. Many of the ideas are interesting—in fact, some will probably be implemented—but they leave us with two problems. The first is scale. Including every reasonable alternative, we can achieve a 24% increase in capacity. HS2 gives us a 105% increase. It is a complete step change.

The second problem is disruption. As upgrades mean working on active lines in daily use, we have to resort to closure for much of the work. This House will have seen the Atkins report showing 14 years of weekend closures, and that is with an aggressive work programme of two simultaneous schemes on each route at any one time. It would frankly be a nightmare.

HS2 also transform connections across Britain. It will link eight of our 10 largest cities. It links up great cities of the north and the Midlands. Just as important as cutting times from London to Birmingham and Manchester, HS2 takes more than an hour off the journeys between Birmingham and Newcastle, York and Leeds. It will be integrated with the nation’s main airports, with stations directly serving Manchester and Birmingham and short connections to Heathrow via Crossrail and to East Midlands Airport from Toton station. It is this new connectivity that provides a spur to growth, and it is the reason why the great northern cities are so supportive of HS2.

My noble friend Lord Deighton and the HS2 taskforce are looking at ways to maximise the growth benefits of the line. The great cities are doing exactly that without prompting. They can see the opportunity to rebalance the economy of the Midlands and the north. The economic analysis shows them gaining double the benefits of the south.

The national gain is £15 billion a year by 2037. Construction and its supply chain alone will provide 19,000 jobs. The Core Cities group predicts that HS2 will underpin the delivery of 400,000 jobs, and 70% of the jobs created by HS2 are expected to be outside London. HS2 will be an opportunity to build a British supply chain, as discussed previously in this House, with skilled jobs for our young people—a supply chain and skill set that will support not just this project but British industry at home and abroad in future infrastructure markets. Of course not every part of the UK benefits from HS2. It benefits more the areas that it physically reaches. However, so does every transport infrastructure project past, present and future; that is a characteristic of infrastructure.

That brings me to the cost. The budget for HS2 is £42.6 billion. That is an upper limit with a contingency of £14.4 billion. Rolling stock will be another £7.5 billion. This means a benefit-cost ratio of 2.3, which is frankly remarkable for a large project, especially given the limitations of a formula that caps passenger demand three years after phase 2 is finished. Sir David Higgins, the new chairman of HS2, has been instructed to bear down on those costs, and he has said that he can and will do so. The noble Lord, Lord Heseltine, recently reminded us that part of those costs can be picked by up the private sector rather than the taxpayer. That is the intention of the Government and will be part of plans going forward.

I remind your Lordships that while the sums for HS2 are large, they are only part of the transport spending budget. In the next Parliament we will spend £73 billion on transport, only £17 billion of which is for HS2. We are tripling the national roads budget and adding 400 extra lane miles of motorway. We are tackling 195 local pinch points to break up jams. We are delivering the biggest rail modernisation programme for generations, with more than £9 billion of government funding for major rail projects, including a new £500 million rail link from the West Country to Heathrow, an 850-mile national programme of rail electrification, Crossrail and Thameslink in London and more than £900 million in flexible funding for smaller schemes.

However, infrastructure on this scale always has some negative impact, and I understand the anguish of those who cherish the countryside along the proposed route. That is why 70% of surface lines between London and the West Midlands will be insulated by cuttings, landscaping and fencing. We are at present consulting at present on property compensation, another issue that is often raised in this House. An exceptional hardship scheme is already in place. The Government have said that they intend to be fair but generous, going beyond the requirements of the law. I urge noble Lords with an interest in this area to respond to that consultation before it closes on 4 December. The detailed environmental statement for phase 1 will be laid alongside the hybrid Bill. It will be the largest environmental impact assessment ever undertaken in the UK.

We have the opportunity today to support a Bill that takes Britain into the future. We cannot opt again for make do and mend, relying on an exhausted Victorian system for our vital rail transport. Doubters have always decried new infrastructure projects, from the M25 to the Jubilee line to HS1 to Crossrail, but we will build HS2 responsibly and within budget. I ask your Lordships across all parties to join in this commitment to a modern rail network that can support our ambitions for growth and our economy. I beg to move.

--- Later in debate ---

[Baroness Kramer]

My Lords, what a tremendous debate. Every time this issue comes before the House I learn more, which adds very much to the pleasure. I, too, was appreciative that the Secretary of State came to listen to the early speeches; he then had to leave to vote, but I know that he will read the rest of this debate. I know that that information flow to him is very much appreciated on his part.

Obviously, the overwhelming majority of noble Lords who spoke today spoke so strongly and positively in favour of HS2 and the high-speed rail network that once again I feel almost that the comments that I can make are somewhat redundant; they have been almost better covered by other noble Lords who have spoken. I will begin by trying to pick up on the questions from noble Lords who were perhaps more sceptical, and in particular that issue of cost that the noble Lord, Lord Davies of Oldham, mentioned, which was also mentioned by other noble Lords—by the noble Lord, Lord Howard of Rising, in particular, and in a slightly different way by the noble Lord, Lord Adonis.

The cost of the project—the budget—has been set at £42.6 billion. The noble Lord, Lord Howard of Rising, mentioned the figure of £73 billion, which was floated in the Financial Times and some other parts of the press. That is a mischievous number, because of the way in which it is constructed; I was quite sad to see it in a respectable newspaper. It included things like VAT, which obviously comes back to the Treasury and is therefore not a cost to the taxpayer. It also included inflation, although we look at infrastructure projects using current numbers rather than inflated numbers because we do not look at the benefits in inflated numbers. A mischief-making number has, unfortunately, been introduced into this conversation.

I shall say more about cost, because it is important—and what I have to say about it will also address some of the other issues that have been raised. The work that has been done in preparation for High Speed 2, to the point where it is now ready for phase 1 to appear in a hybrid Bill, is far more intense than that for any previous hybrid Bill. I think that that degree of preparation is a good thing, and I am cleared to say that the hybrid Bill will be introduced in the Commons on Monday. That degree of detailed examination and preparation gives us far greater confidence in the actual numbers, particularly for phase 1.

As the noble Lord, Lord Davies, will know—he has read the strategic case—High Speed 2 now estimates that, without any contingency, it could bring in phase 1 at £15.6 billion. The Secretary of State has said that we need to have a little contingency, but he wants to see this come in at £17.16 billion or less. That is the pressure being put on Sir David Higgins, and he feels that it is pressure that he can accept. That is a much crisper number than the more overarching number, including contingency, that we have generally been using. I ask that, as people look at the strategic case, they understand that we are talking about the overarching budget, but that underneath that there is huge pressure to ensure that the cost is pushed down, and we can do that with more and more confidence because of the level of detail that we now have. I hope that that also explains to the noble Lord, Lord Adonis, why there is a generous contingency in all this. The contingency does not reflect the fact that there is very detailed work going on to push the cost down.

That consideration also speaks somewhat to the governance point raised by the noble Lord, Lord Rodgers of Quarry Bank. Sir David Higgins, when he comes in, will make governance and driving down cost two of his highest priorities. The governance programme, which sounds incredibly complex as it is read out in a paragraph, actually reflects a number of bodies that have come together to increase the downward pressure on costs. That is part of the reason why there have been so many parties so absolutely focused on ensuring that the costs of the project have been reduced to the greatest extent possible.

In the same context, Sir David Higgins has said that he will look at delivering HS2 faster. There is an underlying question here, which I picked up from a number of people today—for example, from the noble Lord, Lord Smith of Leigh—along the lines of, “Why don’t we start both phases pretty much at the same time?” The answer is that we have the detailed work to be able to go ahead with the hybrid Bill for phase 1, and to hold that up in order to bring phase 2 to the same degree of preparation would hold back the whole project. We are in a position to move much faster on phase 1. I have heard many people in the House today talking about the importance of going as fast as possible; they compared us unfavourably with France, and I can understand why. We are doing this in phases so that we can get into the ground at the earliest possible date.

Benefits will flow from phase 1 alone. It is true that the maximum benefits will come when phase 2 is completed, but from phase 1 alone there is already an advantage, both in capacity going from London through to Birmingham—on the most congested set of routes that we could possibly have—and also in terms of starting the time reduction, which, as others have said, adds to the connectivity and the potential for development in the north and the Midlands.

The noble Lord, Lord Cormack, referred to the Bill as a blank cheque and asked why it does not have a monetary figure in it. The Bill gives permission for preparatory expenditure and contains a very vigorous reporting process under which the Government must report back annually and record any deviation from budget, and the consequences of that. The wording of the Bill has been strengthened somewhat in the other place, which has put in place a very intense scrutiny process around the budget.

One of the reasons why there is no monetary figure is because this is not just the paving Bill for HS2 but allows us to look at extensions. The noble Lord, Lord Dubs, talked about the importance of going beyond HS2 and looking at Scotland. I was up in Glasgow and Edinburgh just over a week ago, announcing formally the initiation of a study which will look at bringing the benefits of high speed to Scotland. Automatic benefits come from bringing High Speed 2 as far as Leeds and Manchester. In fact, Scotland benefits even from the run to Birmingham. However, taking it beyond that, the study will look at how to maximise high speed on existing rail lines and at potentially building what some people have dubbed “High Speed 3”. This paving Bill creates the context for what in the end will be a high-speed rail network. The word “network” matters in the context of some of the questions about economic growth. Dedicated high-speed trains can run only on high-speed lines. However, in addition, these lines can be used by the classic trains which currently operate on our long-distance services. They can travel part of their journey on a high-speed line and then deviate off on to the west coast main line and various other lines, creating a much more interconnected network.

The noble Lords, Lord Stevenson of Balmacara and Lord Cormack, and, to some extent, the noble Lord, Lord Rodgers, raised concerns about the Chilterns and its highly valued landscape. We all value that landscape; I do not think there is any question about that. However, I think that we have also always understood that there are circumstances in which we have to weigh the significance of infrastructure projects against that value. We must mitigate any effects to the extent that we can. I listed earlier many of the mitigations. Looking much more narrowly at the Chilterns, I say to the noble Lord, Lord Stevenson, that, between Chalfont St Peter and Hyde Heath, which is a distance of 8.3 miles, of which 5.8 miles lies in the area of outstanding natural beauty, the route will be in a tunnel. To minimise the visual impact in the AONB, the following mitigation measures will also be taken: 3.5 miles in cuttings; 1.5 miles in “green tunnel”; 0.6 miles on viaducts; and 1.4 miles with embankments. This means that fewer than two miles of the 13 miles of the route through the Chilterns area of outstanding natural beauty will be at surface level or above. The noble Lord, Lord Stevenson, has asked why we cannot extend the tunnel. Unfortunately, that would require the construction of ventilation shafts and an emergency access station at Little Missenden. Weighing that damaging environmental impact against the current mitigations has led us to the conclusion that we have used tunnelling to the best effect.

[Lord Stevenson of Balmacara]

I am very sorry to interrupt the noble Baroness, and it is a very trivial point, but it would have helped if we had been able to have the meeting that I requested over a month ago. It has not yet happened and if it had, we could have explained this. This canard about having to open up an opening near Little Missenden is not what is proposed. The alternative, which I sketched out for her and which I am happy to present to her in more detail, provides for an opening, required under European law, to be within the 22 miles covered by the AONB. It is near Wendover—in fact, at Wendover Dean—it is agreed by residents, agreed by all the authorities around and does not affect the central part of the Chilterns. This point was raised by her predecessor in a debate more than a year ago, and I tried to correct it then. I am clearly not effective at doing that, so can we please meet?

[Baroness Kramer]

As we agreed earlier, I am looking forward to that meeting and I apologise. Because I am new to the department, it has basically been triage. I regret that we did not have the chance to have that meeting before this debate, but we will have it. As the noble Lord, Lord Stevenson, recognises, the course of the hybrid Bill will address many of these issues.

The noble Lord, Lord Cormack, was very concerned that HS2 is a London-centric project rather than one which will spread economic opportunity out across the country. I could make the case in the other direction— I thought that I had in my opening speech, as had the noble Lord, Lord Adonis, and others, in the course of their speeches. I pray in aid the noble Lord, Lord Smith of Leigh, who from his position in Greater Manchester has been able to represent to this House today the great potential that Manchester and the other great cities of the north and the Midlands have seen in this project.

They are using this opportunity in a very positive way, which perhaps is relatively new as a British approach to infrastructure. So often, we have built an infrastructure project in a silo and left it to see if anything good generates around it. In this case, the noble Lord, Lord Smith, and others are working within the various local authorities and within the various key cities. My noble friend Lord Deighton, too, is working with his task force in order to try to reinforce and support the process. This is a very different approach that will ensure that we garner the economic benefits.

A number of noble Lords, including the noble Lord, Lord Rooker, and the noble Lord, Lord Davies of Oldham, reiterated the idea of the noble Lord, Lord Heseltine, of development corporations. It is certainly true that the Mayor of London would be able to initiate them—that is already within his competencies. However, the Government are waiting to see how local communities in the areas that will be impacted by HS2 will wish to take these issues forward. It is within the concept of devolution that Whitehall should not always know best how each individual area should approach these questions, but I suspect that in many of the schemes and developments that develop, we will look to capture development gain in various ways. Indeed, the Government have already said that they expect all the stations to be built, essentially, with private money, which in and of itself is a development-gain process. So I fully appreciate those comments and I know that they will be studied closely as we go forward.

The noble Lord, Lord Howard of Rising, raised an issue that has been in some of the literature that has been coming through people’s doors and which I would like to take on. He argues that we are not at capacity, citing an example quoted by one of the campaigning organisations, that trains are only 52% full in the evening peak. I think he is referring to a Virgin long-distance train. Certainly, regional and commuter trains are incredibly heavily used. To remove that Virgin train from the train paths in order to allow expansion of regional and commuter traffic would be a drastic option, widely opposed by passengers. There is sometimes no easy trade-off between the issue of train paths and usage at particular times. I also point out that the evening peak is a very well spread peak. During the morning peak we are pretty close to anyone’s definition of being out of capacity as it is, never mind in the circumstances that we will face as we get to the 2020s.

Perhaps I may move on to thank those who spoke so effectively and with much knowledge in favour of this high-speed rail network project. The noble Lord, Lord Adonis, called on the spirit of the Victorian pioneers and the spirit of cross-party working. Both have to inform the way in which we move forward. The noble Lord, Lord Bradshaw, talked from his experience of actually running the four lines that go out of London. That is always an invaluable and incredibly practical touchstone as we move forward in these debates.

My noble friend Lord Freeman brought to us the experience of being the Transport Minister for HS1. That project gave us the confidence to move ahead with HS2, and the lessons that he is able to bring to this debate are therefore crucial. The noble Lord, Lord Berkeley, again reminded us of the freight conundrum that we face. In passing, he also reminded us that it is not just the Chilterns that have an issue but the area around Camden, Euston station and the HS1-HS2 link. We must appreciate and do everything we can to achieve the necessary mitigations. In this case, there is close working now between Camden Council and Network Rail, although many issues have yet to be resolved and answered.

The noble Lord, Lord Faulkner, provided a constant reminder of the lack of alternatives to HS2. The point was put more clearly by the noble Lord, Lord Snape, when he said: if not HS2, what? One alternative is likely to be an exceedingly intrusive motorway. I am afraid that there would be not just one six-lane motorway if we do not build HS2 but probably two. The impact of that on the environment, communities and areas of natural beauty would be something that this House would, frankly, not relish.

I cannot remember whether it was my noble friend Lord Cormack or my noble friend Lord Howard of Rising who talked about aviation as an alternative. Again, the noble Lord, Lord Smith of Leigh, hit the nail on the head; the discussion around aviation capacity is primarily around international capacity rather than around attempts to build up a domestic aviation network of much greater intensity, but I will obviously bow to the Davies commission as it considers capacity issues in the south-east.

I should say thank you to the noble Lord, Lord Lea of Crondall, because on this occasion and previously he made a point that was picked up by others about the cluster potential. That was echoed by the noble Lord, Lord Smith, from the perspective that he and Manchester are looking at development. My noble friend Lord Teverson shared with us reports from Kent of the change from a negative to a positive attitude because of the experience of the benefits of regeneration as a result of HS1.

I am sure that in this whole process there are questions that I have failed to answer. I am reminded that I am coming to my boundary of 20 minutes. I feel that I have had the opportunity to listen to an exciting debate, and if I have not responded to questions we will do so afterwards. Perhaps I may conclude by saying this: let us protect the Victorian spirit that built our railroads, but let us look for an infrastructure that is not Victorian but modern and 21st-century so that we can build the economy of the future. I thank this House and I formally ask that the Bill be now read a second time.

Bill read a second time. Committee negatived. Standing Order 46 having been dispensed with, the Bill was read a third time and passed.

Railways: British Rail

Baroness Kramer Excerpts

Tuesday 12th November 2013 Lords Chamber

[Lord Mawhinney (Con)]

My Lords, at the express request of my noble friend Lord Spicer and on his behalf, I beg leave to ask the Question standing in his name on the Order Paper.

[The Minister of State, Department for Transport (Baroness Kramer) (LD)]

My Lords, the Government have no plans to do so but note that a recent European Commission rail comparison study found that since the 1990s Britain’s railway is the most improved in all European Union countries.

[Lord Mawhinney]

My Lords, does my noble friend recall that when privatisation was proceeding and being implemented, the Government made two strong and clear commitments: first, that privatisation would reverse 40 years of decline in the use of railways, which has manifestly been the case; and, secondly, that there would be a huge input in private investment over and above anything that the taxpayer could contribute, which has also obviously taken place? Will my noble friend confirm that both those things have been the product of the privatisation of the railways?

[Baroness Kramer]

I can certainly confirm those comments from the noble Lord, Lord Mawhinney. He is absolutely right that at the time of privatisation— 5 November 1993, which I assume is the date to be commemorated in the Question in the name of the noble Lord, Lord Spicer—the railway essentially was expected to fall into decline, having had a long history of underinvestment and of stop-and-start annual budgets. Since then, the UK has seen a doubling of passenger journeys to the highest level since the 1920s; 4,000 more services a day than in the mid-1990s; a 60% increase in rail freight; and the fastest growth of European railways. The UK railway now carries nearly 20% of the EU’s passenger journeys.

[Lord Faulkner of Worcester (Lab)]

My Lords, has any assessment been made of the sort of railway that we would be enjoying today had the British Railways Board received the same levels of support and investment —much of which has come from the taxpayer, despite what the noble Lord, Lord Mawhinney, said, but has been made available to privatised industry—and had the railway not been subject to the negative influences of decline and contraction, to which the Minister rightly referred, largely at the behest of Her Majesty’s Treasury?

[Baroness Kramer]

The noble Lord, Lord Faulkner, gets to the heart of the problem. Under a system in which this was a Government-run industry, an essential feature was the constant stop-start and underinvestment. It is by putting in place a structure with the ability to set up arrangements that force the Government into long-term decision-making and long-term commitment that we have been able to rebuild the infrastructure.

[Lord Grocott (Lab)]

Did not the privatisation of the railways simply follow the pattern of previous privatisations, which was that priceless national assets acquired by the great Labour Government of 1945 were sold off at knockdown prices by a Tory Government to a small number of investors, who made huge sums of money overnight? Does the Minister share my near despair that precisely the same pattern has been followed with the sale of Royal Mail, which was grossly undersold against the wishes of its previous owners—that is, me and everyone else in the country? Incidentally, as my assets have been sold off against my will, at the very least I ought to receive a cheque for the value of the assets sold.

[Baroness Kramer]

My Lords, I will resist the temptation to go into the territory of Royal Mail. The privatisation of the railways may not have been perfect; we certainly had Railtrack going into administration in 2002, and there have been other issues. The question is: do we have a system that has delivered a significantly better railway for customers and freight in this country? I would argue that we very evidently have. Does this give a basis for moving forward and providing yet further improvement? I think that argument is also made.

[Baroness Wilcox (Con)]

While I am delighted to travel by rail most of the time, all the way down to the West Country, I am very sorry to see, after all these years since 5 November 1993, that raw sewage is still going out on to the lines. Before we rush forward to HS2—to which I am looking forward enormously—I urge our new Minister to think about the men working on the lines and in the stations who have to deal with this excrement.

[Baroness Kramer]

The comments of my noble friend totally resonate. It is utterly disgusting. It speaks to the fact that customer service has not always been at the centre of the railways, because I think customers are very concerned about this issue. Beginning in 2017, the current InterCity 125 trains will all be replaced by the new Class 800/801 intercity express trains from Hitachi, which will solve that problem on the intercity lines. It is a tougher issue on the local diesel trains, which are gradually going out of service, and we could use some help from the industry in tackling that problem.

[Lord Davies of Oldham (Lab)]

The Question was whether the Government would mark the passage of the legislation. Is this the legislation that, within 10 years, saw the bankruptcy of Railtrack? Is this the legislation that saw the franchise fiasco on the line from Paddington to south Wales a short while ago? Is this the legislation that insists that a publicly operated company, which produces £47 million of profit to invest in the railway and hands £800 million back to the Treasury as extra profit, is disbarred from competing for the franchise against German and French state railways?

[Baroness Kramer]

My Lords, Network Rail plans to invest £38 billion into the system between 2014 and 2019, which will shortly bring into the system Crossrail, the upgraded Thameslink, a northern hub cross-Manchester link that will provide electrification linking the core centres of the economy in the north, the West and East Midlands and Yorkshire. Today, the south of England has 75% of passenger miles on electric trains. I assume that the noble Lord was talking about the east coast main line franchise and, as he knows, it was always intended by the noble Lord, Lord Adonis, that this would be in public control only temporarily. He said:

“I do not believe that it would be in the public interest for us to have a nationalised train operating company indefinitely”.—[Official Report, 1/7/09; col. 232.]

The public sector—DOR—has done an excellent job of stabilising the system, but now returns it to a period of investment, which requires private sector engagement.

Motor Vehicles (International Circulation) (Amendment) Order 2013

Baroness Kramer Excerpts

Tuesday 12th November 2013 Grand Committee

Moved by

[Baroness Kramer]

That the Grand Committee do report to the House that it has considered the Motor Vehicles (International Circulation) (Amendment) Order 2013.

Relevant document: 12th Report from the Joint Committee on Statutory Instruments.

[The Minister of State, Department for Transport (Baroness Kramer) (LD)]

My Lords, the order will allow car transporters to carry out unlimited cabotage operations in Great Britain during the peak registration periods. Road haulage cabotage is domestic goods operations carried out on a temporary basis by haulage operators registered in another EU member state.

EU Regulation 1072/2009 revised the previous EU rules governing road haulage cabotage with the intention of clarifying the minimum extent to which carrying out cabotage in another member state is allowed. Translated into domestic law, this results in non-UK goods vehicles being limited to carrying out no more than three cabotage operations in the seven-day period following the last delivery on the incoming international journey. Once the limit has been reached the vehicle must leave and re-enter with a new international load in order to undertake further cabotage.

Generally, the clarity provided by the 2009 EU rules has been welcomed by industry in place of less certain application of the former rules on “temporary use”. However, the explicitness of the new rules has had an appreciable and restrictive impact on the ability to move sufficient motor vehicles in the new car registration peak periods each March and September in Great Britain.

Car-transporting vehicles are highly specialised and are not suitable for general haulage. Whereas the core demand outside the peak periods is satisfactorily met by UK vehicles operating domestically, at times of peak demand vehicles from other member states have traditionally been used to supplement the UK fleet. Regulation 1072/2009 has the effect of restricting the amount of work that non-UK hauliers can legally undertake on each visit. When there is a shortage of haulage capacity to move cars and vans, they accumulate at factories and ports during these peak periods. This lack of capacity in the supply chain becomes a bottleneck for UK manufacturers distributing vehicles for domestic consumption and export.

My department considered various options to address this problem and concluded that relaxing the cabotage rules at the peak periods via secondary legislation was the most viable option. We consulted on these proposals and the majority of responses, especially those from motor manufactures and retailers, were very supportive. This order, together with the related Goods Vehicles (Licensing of Operators) (Amendment) Regulations 2013, makes regulatory changes to allow vehicles, essentially car transporters, to carry out unlimited cabotage operations moving cars and vans during the peak registration periods.

This order amends Article 5 of the Motor Vehicles (International Circulation) Order 1975, which exempts from excise duty certain vehicles brought temporarily into the UK. Relief from excise duty is already available to vehicles used for cabotage operations in the UK in accordance with the limits of EU Regulation 1072/2009. This order additionally exempts vehicles which are being used only for or in connection with the carriage of motor vehicles in Great Britain from excise duty when carrying out unlimited cabotage operations during the permitted peak periods.

I should also draw attention to a minor slip in Article 2(4) of the order. The Committee should have a correction slip for this which makes clear that the additional definitions are inserted after the definition of the “date of importation” and not in the middle of it. It is simply a typo.

This is quite separate from the new HGV levy charge. From April 2014, these operators will be liable to pay the new HGV levy charge for the period they are in the UK, paying up to £10 per day and £1,000 per year. The related Goods Vehicles (Licensing of Operators) (Amendment) Regulations 2013 created an additional exemption from the need for the user of a goods vehicle to have an operator’s licence under the Goods Vehicles (Licensing of Operators) Act 1995. This came into force on 15 August 2013.

These changes are intended to assist UK car manufacturers and retailers by allowing unlimited cabotage operations by car transporters at the peak periods. I commend the order to the Committee.

[Lord Rosser (Lab)]

First, I thank the Minister for her explanations of the order we are discussing. I have a number of points and queries.

The impact assessment refers to policy options under consideration, but it does not include the option, or the feasibility, of removing the cause of the trouble, which is the GB system of having new registration numbers every six months, and with it the quite dramatic peaks in car registrations in March and September compared to the rest of the year. The impact assessment dismisses this point, when it says on page 3 that:

“The peak registration periods themselves are nothing to do with any regulations”.

Frankly, I would have thought the peak registration system had everything to do with this order. Will the Minister tell us whether the peak registration system is in the interests of growth, since growth is obviously an important issue for the Department for Transport? This order supports the growth agenda, as the Explanatory Memorandum itself states, without answering the question as to whether the arrangement it is seeking to prop up is also in the interests of growth. Would the car industry, including car transporter firms, be better off with a much more even flow of cars being produced and sold each month than is the case at present?

Figure 4 on page 5 of the impact assessment indicates that, apart from some 10 weeks of the year around March and September, capacity in the haulage fleet comfortably exceeds—in some weeks far exceeds—demand for moving new and export cars. I hope the Minister will give us the facts and figures to show that the GB system of having new registration numbers every six months, and its cost consequences, are justified by the additional cars sold compared to what the position would be with a much more even number of car registrations and sales through the year. Frankly, if this cannot be shown, why are we introducing this order?

The impact assessment also dismisses the registration peaks issue on page 8, on the grounds that any changes to the system would be too complicated to implement. However, should we not be trying to do something about peak periods for the longer term, if that is what is causing problems for UK transporter firms, rather than getting in extra UK haulage capacity at peak times, possibly at greater cost? Can the Minister say whether other vehicle manufacturing countries—such as France, Germany and Italy—have the same problem as us over car transporter capacity because of their own systems of registration numbers?

The impact assessment refers to the effect of this order in allowing Ministers to relax selectively the application of EU cabotage rules in Great Britain. What is the maximum number of weeks in the year that we are allowed to do this? The Explanatory Memorandum states that the Association of European Vehicle Logistics and the Ford Motor Company both suggested that any relaxation period should start two weeks before the peak months; that is, it should be the last two weeks in February and August. The Government do not appear to have agreed to that suggestion, since the relaxation periods will begin on 22 February and 25 August respectively. The department agrees that it is sensible to allow the relaxation periods to commence before the start of the two peak months, but does not indicate in the Explanatory Memorandum why it would be inappropriate to agree to the last two weeks in February and August, which was what was being sought. Can the Minister say why not? I note that even the Government’s proposals will put additional heavy vehicles on our roads at a peak holiday time, around a bank holiday weekend at the end of August. Perhaps the Minister can comment on the wisdom, from a safety point of view, of doing that.

We are told that there were three negative responses. They were not exactly from lightweight sources. The traffic commissioners pointed out that foreign goods vehicles were generally more likely to be non-compliant than domestic vehicles. They said there was a risk to road safety and fair competition from the proposal. The commissioners referred to random fleet compliance surveys conducted by VOSA, which show that domestic hauliers attract a prohibition rate from mechanical defects of 10.4%, whereas the average for all foreign hauliers is more than double that, at 21.8%. The impact assessment goes on to say:

“Nevertheless, the Department is not convinced that this is likely to be a significant issue. Car transporters are highly specialised and costly pieces of equipment and we believe they are less likely to be non-compliant with routine roadworthiness requirements than the average HGV”.

That is really not a satisfactory response when rejecting the concerns of the traffic commissioners. The “we believe” school of policy-making is not on a very firm footing compared to policy-making based on evidence and facts. I ask the Minister to provide the non-compliance rates with routine roadworthiness requirements of, first, domestic car transporters and, secondly, foreign hauliers’ vehicles covered by this order, which would provide a factual basis for the department’s statement that it is not convinced that this is likely to be a significant issue.

Although the impact assessment appears a little imprecise on this point, I am assuming that the effect of the order is that more non-UK transporters will be in this country in the peak periods than are currently. That is because the impact assessment talks about the order removing bottlenecks and about exports no longer being delayed or factories put at risk because end-of-line compounds become choked. One of the negative responses came from a UK-based car transportation company which said that it would have to reduce the size of its fleet if transport operators from other member states were able to operate in Great Britain without restriction for two months of the year. Bearing in mind that outside these two months capacity exceeds demand, it seems likely that the months in question are ones when car transportation companies have more business—and more income coming in—than at any other time of the year. How can the department be so sure that non-UK hauliers being able to operate without restriction during those two peak months for business for UK car transporter firms, as a result of this government order, will not have an adverse impact on the UK firms?

The impact assessment states that the cost of non-UK hauliers would be greater. What is the difference in costs between hiring non-UK transporters and hiring their domestic equivalents, both now and under the revised temporary arrangements provided for in this order? How sure is the department that the statement in the Explanatory Memorandum that non-UK transporters will be,

“used by the sector only when the domestic supply is exhausted”,

is correct? On page 8, the impact assessment states:

“DfT Legal could aim to draft the new Regulations in a way that would make it easier to capture further categories of vehicle at a later date by simple secondary legislation”.

Is that actually what the Government intend to do, and if so, why? What other sectors have reported problems with the present arrangements, and would such a step have a detrimental effect on UK hauliers? I would be grateful if the Minister could confirm what I believe she said—that there is no link-up between the thrust or implications of this order and the issue and consultation on the road user levy.

On its first page, the impact assessment states that the review date for the policy change will be April 2018. Why is four and a half years from now considered the appropriate date for a review? Subject to the Minister’s response, we are not particularly enthusiastic about this order, but we will not seek to oppose it.

[Baroness Kramer]

I very much thank the noble Lord, Lord Rosser, for a series of entirely pertinent questions. Let me try to take them roughly in the order in which he presented them. His primary question was about whether it is possible to level out or do away with these peaks of registration. As he will be aware, until 2000 there was just one registration date, which was each August, and the peak period was even more pronounced than it is today. Indeed, it was in response to pressure from the motor industry that the DVLA consulted on the registration periods. Subsequent to that consultation, it introduced a system of registrations each March and September. It spread the peaks over two periods. The general assessment of the industry is that the system has worked well and there has been no pressure from the industry to change the system in recent years.

I am sure that the noble Lord will agree that it is to every advantage to have a system that is effective for the UK’s very robust car manufacturing and retail industry. Were there to be any review, it would probably be a BIS-driven review, because it would be to ensure that that is working effectively both for the manufacturing and retail industries and for customers. The department’s job is to minimise transport problems related to the system.

[Lord Rosser]

I take the noble Baroness’s point that that may have more to do with BIS than the Department for Transport. I asked whether in fact having the peak in car registrations in two months of the year was conducive to encouraging growth. I repeat one part of my question in this context which I think is a matter for the Department for Transport: do other car-producing countries in Europe—Germany, Italy, France—have the same problems as we do because of the registration number system?

[Baroness Kramer]

As the noble Lord will know, Ireland does that on a once a year basis, so it has something closer to our older form of a single peak. Otherwise, that is not the pattern in continental Europe, but then buying patterns are very different in various countries within the EU. I am sure that the noble Lord would not recommend that we change our system in order to follow continental buying patterns which may not fit buying patterns in the UK. I suspect that he would also agree that this has to be an industry-led consideration, because the goal is to ensure that it works well for the British manufacturing and retail industry and for customers.

The noble Lord talked about an adverse impact on the economy. He will appreciate that if we were to have a generally higher fleet at all times, there might be an associated economic cost. There are both winners and losers for the road haulage industry as well in changing the peak.

The noble Lord asked whether there is a maximum time for which the relaxations can apply. Exactly as he said, the relaxations are over two fixed periods, from 22 February to 31 March and from 25 August to 30 September each year. However, there is flexibility, because the normal EU cabotage rules permit non-UK car transporters to carry out up to three cabotage operations in the seven days prior to the relaxation period coming into force. In effect, it allows for up to six weeks of cabotage operations without having to leave the UK. I think that that responds to the issue raised by the industry when it asked for an extra week, because there is that normal process in the period prior to the actual start of the specific exemption. That provides the coverage that meets the requirements of the car manufacturers.

[Lord Rosser]

I think that I have understood the noble Baroness’s point, but is she saying that the earlier week before the provision comes into force is covered by the existing arrangement that you can do three trips within seven days, and that you can then switch straight to the relaxation—that that vehicle will not then have to go back to its own country, load up again and come back to the UK?

[Baroness Kramer]

The noble Lord is exactly correct. That is why providing an additional week, as originally requested by the industry, was unnecessary because it is covered by that element. If we added two weeks on, as he asked, we would have yet another week added on, and I do not think that that would be either necessary to the industry or particularly desirable for the system as a whole.

The noble Lord asked about the impact assessment. There is no review date in the SI itself, but the department will be putting in place arrangements to review the impact of the regulatory changes, and I will ask that he is kept informed as that process goes ahead.

The noble Lord asked about language within the impact assessment that might suggest that the DfT is looking at extending the arrangement beyond car transporters. It is not. I agree that the language was somewhat confusing, so I asked questions about it myself. If the noble Lord looks at the SI, he will see that the way in which it is written means that if there were need to look at an exemption in another area, it would be quite easy to do a mirror SI, simply changing the description of the problem and the vehicle. The issue before us is the only one being addressed. Any further exemption would still be required to go through exactly the same parliamentary procedure as this exemption. There is no change in parliamentary procedure but a reduction in the time that legal counsel would have to sit down and work on the written language. That seems a sensible step when we are constantly trying to cut down costs within government. That is all that is implied.

[Lord Rosser]

I thank the Minister for that explanation, but are there other sectors raising queries over the existing arrangements, or is this the only sector?

[Baroness Kramer]

This is the only sector.

On safety concerns raised by the Freight Transport Association, the noble Lord will be aware that minimum vehicle road-worthiness requirements exist across all EU member states, and the Commission is looking to harmonise standards in the future. The Vehicle and Operator Services Agency, or VOSA, carries out regular spot checks of foreign and UK vehicles to ensure that they are roadworthy and can take enforcement action, including issuing immediate or delaying prohibitions, and in the most serious cases can impound vehicles.

The issue of safety is partly addressed by that, but the noble Lord picked up on the point discussed in the impact statement; namely, that vehicles able to access the UK because of this exemption will be car transporters. As he knows and reaffirmed, those are highly specialised, very costly pieces of kit. I do not think that anyone has done the work for the UK domestic market or for non-UK resident hauliers to compare their accident rates versus other forms of haulage. VOSA will keep a sharp eye out and monitor car transporters more closely, and that applies to both domestic and overseas vehicles; but it is generally expected that these highly sophisticated pieces of kit will be less involved in collisions and raise many fewer safety issues than the haulage industry at large. VOSA is on to that and will keep an eye on it. There is no experience that suggests that we should have any particular alarm related to the exemption being provided for under this statutory instrument.

Perhaps I may ask the noble Lord, Lord Rosser, whether there is anything that I have missed in the questions that he raised, just to make sure that I cover them.

[Lord Rosser]

There are one or two, but I am not pushing the Minister to give a reply today. One argument advanced by one of the car transporter firms is that it might have to reduce the size of its fleet. I think that the Department for Transport’s answer to that is, “No, you won’t, because the costs of the non-UK hauliers will be greater”. What is the difference in cost for non-UK transporters in hiring domestic equipment under the present arrangements and under the proposed arrangements? Presumably, the argument will be that it may cost less than it does now to hire a non-UK transporter.

[Baroness Kramer]

The noble Lord, Lord Rosser, is exceedingly helpful; I thank him for triggering my memory on both this and another question. Only one UK road haulier raised this issue. It is expensive, quite frankly, for the UK industry to have to carry the additional equipment—it is expensive equipment, as we said earlier—to meet peak. From an economic perspective, therefore, I think that most road hauliers regard it as an advantage to know that the peak can be met from elsewhere without a requirement that they carry equipment which would have to sit redundant for much of the rest of the year. As the noble Lord will see, the argument works both ways on this issue.

[Lord Rosser]

The argument is that if you had the flow of registrations more evenly across the year, the industry would not be faced with the problem of having enough vehicles for capacity in the peaks.

I am not from the industry, but as I understand it, the other argument that has been put forward is that those two peak months are probably the time when companies take in most of their income. What guarantee is there that at the busiest and most profitable—or at least, highest income—time, companies will not find non-UK hauliers over here taking away some of that business, on which their finances for the whole year may depend?

[Baroness Kramer]

Again, I confirm the point that the noble Lord made himself, which is that, because heavy and highly specialised equipment has to come from overseas—you cannot just throw something together to bring over to provide a service to a motor manufacturer—the costs make overseas hauliers more expensive.

[Lord Rosser]

The comparative cost is one of the questions I asked. I should have thought that it would have been in this information, because it is part of the DfT argument that the cost of bringing in vehicles from abroad will be higher. Presumably, under the new arrangements, the costs may well be less than they are now for the reasons that we have been discussing.

[Baroness Kramer]

Yes, under the system that we had in place before we had the new European legislation, but we can look at that. I will ask the department to write to the noble Lord with more detail. Again, much of the evidence has come from the industry itself, rather than merely being put together by the DfT, so that may give him some measure of comfort.

The noble Lord raised another question that I want to answer, which is: what would happen if we did not permit those vehicles, so that every three trips within the seven days they would have to go back to the continent and come back over? That is an exceedingly expensive strategy. That is the situation as it would be today without the exemption order. Unfortunately, the cost of that would get passed on to car purchasers within the UK and to UK manufacturing industry. So the noble Lord will see that there is an attraction in avoiding additional cost. He also raised the issue of peaks on the road in August. Sending all those transporters back on the ferry and then bringing them back again, gives a far worse traffic result than keeping them here and having them service that peak domestic need.

I hope that that covers the issues. I understand that the noble Lord has questions; I have said that we will write to him on those which he feels were not satisfactorily answered by my comments; but I am glad that he has given his support to the statutory instrument.

Motion agreed.