Heavy Duty Vehicles (Emissions and Fuel Consumption) (Amendment) (EU Exit) Regulations 2019

Debate between Baroness Sugg and Lord McNally

Monday 25th March 2019 Grand Committee

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)]

My Lords, these draft regulations will be made under the powers conferred by the European Union (Withdrawal) Act 2018 and will be required if the UK leaves the European Union without a deal. The regulations correct deficiencies in EU regulation 2018/956, which concerns the monitoring and reporting of CO₂ emissions from, and fuel consumption of, HDVs—heavy duty vehicles—such as trucks, buses and coaches.

Emissions from the UK HDV sector made up 16% of CO₂ emissions from transport in 2016. At the European level, HDVs account for about a quarter of road transport emissions. To address this, the European Commission introduced three measures. The first was the introduction, through the certification regulations in December 2017, of a new computer based tool, VECTO, which came into effect from 1 January 2019. The second measure is monitoring and reporting regulations, which the statutory instrument we are debating today is based on. The final measure of the package is a legislative proposal to set CO₂ emission standards for new HDVs, which was agreed by the Environment Council on 20 December 2018.

The monitoring and reporting EU regulation—the second measure—came into force on 29 July 2018. It requires member states and HDV manufacturers to monitor certain data relating to the CO₂ emissions and fuel consumption of new HDVs registered in the EU from 1 January 2019. Manufacturers must report that data to the European Commission from 28 February 2020. The Commission will hold a database, verify data quality and compile and publish an annual report. There are provisions for administrative fines for HDV manufacturers if these data requirements are not met.

The publication of data collected under the regulation will increase the transparency of HDV CO₂ emissions and fuel consumption and underpin the new emission reduction targets. It will provide transport operators access to information on the performance of HDVs of different makes with similar characteristics, allowing them to make better-informed purchasing decisions. It also enables vehicle manufacturers to compare their vehicles’ performance with their competitors, providing an increased incentive for innovation. Finally, publication allows the analysis of the data, for example to assess the penetration level of certain technologies and to support the proposed future CO₂ emission reduction standards for HDVs.

The regulations that we are discussing today amend the EU regulation to ensure that it continues to function correctly after exit day. Through this SI, all relevant data calculated in line with the certification regulation will be monitored, reported and published. The data will be available to all stakeholders. The main policy content, including the purpose and objectives of the current EU regulation, remains unchanged by this SI. Provisions about the monitoring and reporting timetable, data to be monitored, HDVs in scope, fines and publication of data will also remain unchanged.

The focus of these amendments is on ensuring that the EU regulation will continue to apply to HDVs registered in the UK after exit day, and to transfer responsibilities from the Commission to the Secretary of State. For example, after EU exit manufacturers will need to report data for new HDVs registered in the UK to the Secretary of State and not to the Commission, and any fines would be levied in pounds rather than euros.

Given the minor changes proposed, a formal consultation has not carried out. However, the Government have made stakeholders aware of this instrument and their plan for its introduction into UK law.

Correcting the inoperabilities within the existing EU regulation will ensure that there continues to be a functioning legislative and regulatory regime which allows for the collection and monitoring of HDV emissions data in a no-deal scenario. As set out in the Government’s strategy The Road to Zero, we are committed to,

“a future approach as we leave the European Union that is at least as ambitious as the current arrangements for vehicle emissions regulation”.

This SI supports that commitment. I beg to move.

[Lord McNally (LD)]

My Lords, I presume that when Constantinople or Rome fell, there were still committees sitting somewhere in both cities looking at issues such as drainage and transport. The record should show that the House of Lords has felt it necessary to adjourn at this moment but the Committee looking at statutory instruments for exiting the European Union continues to sit. Of course, this instrument has been introduced by the Minister with her usual clarity and good sense.

We welcome the commitment by the Government to continue with the monitoring of CO₂ from heavy goods vehicles. It is important to ensure that the UK is meeting its target in relation to emissions and air quality, and reporting is key to keeping us on track for reducing emissions and air pollution. However, we have to face the fact that, by leaving the European Union, we will lose its valuable oversight in ensuring that the Government comply with air quality legislation.

We have not been the greatest pathfinder in terms of environmental protection. I once worked for the water industry and, following European legislation, that industry was dragged kicking and screaming into what was probably the 19th century at the time, and I think that the same may be true of air quality. I am not sure that we will be as good at this on our own. We need to prioritise the reduction of emissions, given the thousands of deaths being caused every year and the serious impact they can have on health, particularly on that of children.

These regulations were initially conceived in tandem with targets for CO₂ reduction that were suggested by the Commission and revised by the European Parliament. Will the targets set by the Government keep in tandem with any standards set by the EU Commission and Parliament?

We welcome the use of the ambitious CO₂ reduction targets, but we must ensure that the industry is sufficiently supported to meet them. What are the Government doing to encourage the adoption of ZEV/LEV HDVs—I am pleased to note that, after I inquired earlier, the Minister knows what that means—be that through subsidies or improvements in the infrastructure? How will we help the industry to keep pace with developments of zero and low-emission HDVs? Do the Government envisage that the fines levied against those who fail to comply with the data gathering will be in line with those proposed by the EU, and will they keep pace with the fines to ensure compliance?

The instrument provides for further regulations to be made to set out the procedures by which manufacturers can notify the Secretary of State of errors in data. That will be key to ensuring that we have an effective and transparent system. When will those regulations be brought forward?

These regulations were brought forward by the European Union as part of a wide package of measures to ensure that Europe’s future mobility system is,

“safe, clean and efficient for all EU citizens”.

What impact could our exit from the EU have on our future plans to reduce harmful emissions?

Finally, the Minister mentioned that it was not thought necessary to go through a formal consultation process, but were environmental and health groups consulted in any way during the discussions? Some have made accusations of a lack of transparency while the regulations were considered.

Further, what continuing access will we have to EU-wide data collection and analysis in order to drive up standards and related matters? Are we not cutting ourselves off from the best practice data which helps to drive good standards?

As I say, we welcome the way in which the instrument has been presented and the work done, but it leaves these questions unanswered.

Space Industry Bill [HL]

Debate between Baroness Sugg and Lord McNally

Report stage (Hansard): House of Lords
Tuesday 14th November 2017 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)]

My Lords, the UK space industry is a global success story. I am grateful for the productive debate we had in Committee, which will ensure the Bill puts this country at the forefront of new space services.

The Government continue to invest in the success of the UK space sector—for example, we recently invested more than £100 million in new satellite test facilities at Harwell, and manufacture and test facilities for rocket engines at Westcott in Buckinghamshire. As we discussed, another measure of our support to the UK space sector will be through our negotiations with the EU on future collaboration on the EU space programmes. The UK has played a major part in developing the main EU space programmes, Galileo and Copernicus, which have supported the rapid growth of the UK space sector and contributed directly to our prosperity and security. We are working to ensure we get the best deal with the EU to support strong growth in the sector. Last month, the Government published a science and innovation discussion paper and an external security discussion paper. Both set out the Government’s wish to discuss options for future arrangements in the EU space programmes.

My noble friend Lord Moynihan asked about continued support for the space industry. The European Space Agency programmes will continue to play an important role in delivering the UK national space objectives and, in December last year, the UK negotiated an investment of more than €1.4 billion over the next five years in ESA space initiatives. This sustained investment, alongside our industrial strategy, will ensure that we build on the strengths of the UK’s growing space industry. The UK’s membership of the European Space Agency will not be affected by the UK leaving the EU.

The Government hold a mix of qualitative and quantitative analysis of the impact of leaving the EU on sectors of the UK economy, including the UK’s space industry. This is contained in a range of documents developed at different times since the referendum. The analysis in this area is constantly evolving and being updated based on our regular discussions with industry and our negotiations with the EU. As the Secretary of State for Exiting the EU said in his Written Statement on 7 November, the intention is to provide this information to the Exiting the EU Select Committee as soon as possible, and within three weeks of the date of that Statement.

My noble friend Lord Callanan has confirmed to the House that we anticipate sharing the same information on the same basis with the Lords EU Committee as with the House of Commons Select Committee, subject to our being able to agree the terms of that disclosure. Given that this evidence will be published in the coming weeks, I ask the noble Lord to withdraw Amendment 1.

[Lord McNally]

My Lords, I thank the Minister for that reply. We look forward to this information being gathered together into one clear document, as at the moment it is scattered among many documents. I am sure that not only the EU Committee but the whole House will read it with great interest.

This is not a hostile amendment but one that genuinely searches after facts. A generation of us—not including the Minister—remember our last great adventure into the space industry with Blue Streak and Black Arrow over 40 years ago. I also exclude my noble friend on these Benches from that. I had better not go any further: I remember Blue Streak and Black Arrow and finding out that this was too expensive a game for us to go it alone. As we take forward what is still a very exciting industry—the Minister herself announced a number of new facets—we need to ensure that we are at its cutting edge and do not miss this chance. In that spirit, I beg leave to withdraw the amendment.

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[Lord Rosser]

The noble Lord, Lord McNally, spoke eloquently in Committee on the issue of his party and pavement politics, before referring to his concerns about space debris and the need to bring it back safely—although he did not say whether he was looking for weekly or fortnightly collections. If the noble Lord, Lord McNally, considers that the Government’s amendments address the legitimate concerns he raised, they will of course have our support.

[Lord McNally]

My Lords, I welcome the amendments. They are a first step in the right direction. Although I may have rather light-heartedly introduced the issue at the last stage, we have only to look at what we have done to the sea and to Everest to see how easily important places can be polluted. For that reason, it is important that this is on the agenda.

As was indicated in our last debate, work is being done about this problem by British technology companies. Although it may be the less glamorous end of space travel, clearing up space debris may well be another cutting-edge area that we can exploit as this expands.

The IADC is a representative body. Its membership includes all the big players—Russia, the United States, China, ourselves, the European Space Agency, India, Italy, France, Japan, Ukraine. It is the right body to take these matters forward and the amendment is welcome.

[Baroness Sugg]

I thank noble Lords for their support for the amendment, particularly the noble Lord, Lord McNally, who raised this issue in Committee and has put his name to the amendment.

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[Baroness Sugg]

Both the regulator and the Secretary of State would need to be satisfied that the transfer of a licence was appropriate.

[Lord McNally]

My Lords, this is a good example of the Lords’ way of doing things in action. The Labour Front Bench noticed what they thought was a weakness; the Minister said he would go away and reflect. The Government have reflected and come back with a solution that makes the Bill better.

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[Lord McNally]

My Lords, listening to what the noble Lord, Lord Tunnicliffe, said, and the earlier debate about safety, one thing that occurred to me was seeing the newsreel footage of the crash of the “Hindenburg”, just before the Second World War—a crash that virtually ended the airship as a commercial prospect. That is a useful reminder that what may be seen as the next new thing could be disastrously impacted.

The simple message, which seems so obvious, is that if entrepreneurs considering coming into the industry have unlimited liability, they will not come in. If there is no cover—particularly, as the noble Lord, Lord Tunnicliffe, emphasised, for third parties—that would be totally unacceptable. The problem has been spelled out; the Government should face up to those contradictions.

[Baroness Sugg]

My Lords, Amendment 15 relates to the liability provisions in the Bill. As my noble friend Lord Callanan outlined in Committee, these provisions are vital but complex.

I would just like to clarify a point my noble friend Lord Callanan made in Committee. He said that,

“the position under the Bill is exactly the same as that in the aviation industry—that operators have an unlimited liability to indemnify government”.—[Official Report, 16/10/17; col. 434.]

While it is correct that under aviation law an operator holds an unlimited liability, an operator is not required to indemnify the Government for third-party claims brought against it.

The requirement to indemnify the Government arises in this Bill and in the Outer Space Act 1986 only because under UN space treaties the UK Government are ultimately liable for the space activities of their nationals. Operators are therefore required to indemnify the Government for any claims brought against them as a consequence of their licensed activities. I hope that the House finds this clarification helpful.

With this complexity in mind, I should like to provide further background before turning to the amendment. Clause 33(5) provides a power to make regulations that enable a regulator to specify in a licence a cap on an operator’s liability arising out of its spaceflight activities to prescribed persons or in prescribed circumstances. These persons and circumstances would be set out in regulations, but we envisage that a cap, if imposed, would be on an operator’s liability to the uninvolved general public who suffer injury or damage as a result of spaceflight activities. The uninvolved general public will have a strict liability claim against the operator.

Further work needs to be done to check the appropriateness of capping an operator’s third-party liability. We plan to issue a call for evidence on issues relating to insurance and liabilities in early 2018, following Royal Assent to the Bill.

As this liability can be capped, Clause 34(3) provides the Secretary of State with a power to indemnify a claimant in the event of injury or damage caused by spaceflight activities. This means that the Government can pay compensation to the uninvolved general public in situations where injury or damage exceeds the operator’s capped liability amount.

As we have already emphasised, we are trying to put safety at the heart of the Bill. It is designed to ensure that spaceflight activity is as safe as possible in the first place, which will minimise liability arising. But, as noble Lords have pointed out, injury or damage could arise, and if it does, it is the Government’s policy that the uninvolved general public should have easy recourse to compensation. This policy does not and should not change if an operator has a capped liability or, for example, becomes insolvent and cannot meet all its claims.

I therefore understand the concerns that have led to this amendment which seeks to ensure that the Secretary of State has to pay compensation above the capped amount to the uninvolved general public. The liability provisions in the Bill are complex and we need to ensure that amendments in this area are appropriate and achieve what they are set out to do. We are working on this and look forward to tabling an amendment similar to this one in the other place, which I hope will allay the concerns shared by noble Lords that have led to this amendment. With that in mind, I ask the noble Lord to withdraw his amendment.

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[Lord McNally]

My Lords, this takes forward a recommendation from the Science and Technology Committee in the other place that “gross negligence” should be on the face of the Bill, and that is what the amendment would do.

[Baroness Sugg]

I thank the noble Lord, Lord McNally, for tabling this amendment, following a similar amendment that he tabled in Committee. We discussed Clause 36 in relation to the protection it affords a regulator. Having considered the persuasive points made by the noble Lord, and others, after reflecting on the wording of this new amendment, we agree that to achieve the right balance in this clause the regulator protection should not apply in cases of gross negligence, and we accept the amendment as tabled.

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[Baroness Sugg]

My Lords, in Committee last month, a number of noble Lords urged my noble friend Lord Callanan to reconsider the Henry VIII powers contained in Clause 66. The noble Lord, Lord McNally, highlighted the powerful arguments made by several speakers on this issue and recommended that the Government give thought to that between Committee and Report. I am pleased to say that we have followed his advice and have considered the arguments made by noble Lords. As a result, I have tabled these amendments, which will remove the Henry VIII powers from the Bill. I hope noble Lords will appreciate the considerable ground the Government have given. We have not taken this decision lightly; we recognise that there may be situations in the future that leave some legal uncertainty. However, we will continue to examine related legislation and address any omissions as necessary.

Amendments 34, 36 and 37 ensure that the power to make consequential amendments in Clause 67 is now limited to changes to secondary legislation made under the negative resolution procedure. Turning to Amendment 33A, we had an interesting debate on this same issue in Committee. I take it that my arguments then failed to convince noble Lords of the necessity of the subsection. However, the Government remain convinced that the subsection is needed to ensure that all aspects of the Bill can be fully implemented effectively.

As noble Lords are aware, the Bill provides powers to make regulations for specific purposes such as safety and security. However, there remains the possibility that due to the complex and evolving nature of spaceflight technology, we may need to supplement such regulations with regulations on other aspects of spaceflight and associated activities. The power in Clause 67(1) would only be used in such cases. I hope noble Lords are reassured by my explanation and feel able not to press the amendment. I beg to move Amendment 31.

[Lord McNally]

My Lords, I see that the noble Lord, Lord Callanan, is in his place. I would like to say that he was sorely missed this afternoon, but unfortunately I cannot—we did not miss him at all. I can see that his popping in occasionally in the afternoon to this House of concord and agreement must be a pleasure, away from the hell of the Brexit department. It is good to see him. I do not know whether it was my eloquence or the fact that a former Lord Chief Justice—the noble and learned Lord, Lord Judge—applied his powerful arguments, but we welcome the Government’s concession.

I will not go into a great deal of detail on Amendment 33A. I will read out the section we want to delete:

“Regulations may make provision generally for carrying this Act into effect and for achieving the purpose set out in section 1(1)”.


Subsection 1 is equally catch-all. It states:

“This Act has effect for the purpose of regulating—(a) space activities, (b) sub-orbital activities, and (c) associated activities, carried out in the United Kingdom”.


That is far too wide-reaching.

I make one last plea to the Minister: perhaps we could have further talks involving the opposition—the Official Opposition as well, who put their names to this—to see whether we can get some different wording. We have done a lot of good work on this, but the wording is far too wide. I give her this Gypsy’s warning: if we send the Bill down to the other place with this subsection, it will cause just the same trouble. Parliament has to be very jealous of its privileges during the passage of Bills such as this. This is a bridge too far for anyone who cares about the need to keep powers within these two Houses. I am not going to press the amendment—it would be jarring to the spirit of the whole debate to have a Division at this stage—but if the Minister would agree to meet us and have one more go before Third Reading, that would be helpful.

[Lord Rosser]

The noble Lord, Lord McNally, said that widespread concern was expressed in Committee about Henry VIII powers in the Bill and the power they would give the Government to bypass Parliament when amending or repealing primary legislation. I too am grateful that the Government have changed their position. I suspect they were concerned that they would lose a vote on this in this House, and were probably far from sure they could put the Henry VIII clause back in the Bill when it got to the Commons. They would also have had the consideration that, at their behest, the Bill started in the Lords rather than the Commons, which is not the normal procedure for Bills containing potentially controversial clauses, as this one did until the government amendment was tabled. Henry VIII may be turning in his grave at these government amendments, but we welcome them.

On Amendment 33A, like the noble Lord, Lord McNally, I hoped the Government would be able to give some rather more convincing reasons than they gave in Committee for this catch-all regulation-making power being in the Bill. I am afraid the obvious conclusion is that once again, there is no movement because the Government have brought forward this skeletal Bill for their own party management reasons, one year before discussions on the regulations and nearly two years before those key regulations are placed before Parliament. As a result, frankly, the Government do not know what regulations will be needed. Even though this is a difficulty of their own making, they clearly think it quite acceptable to expect Parliament to agree to the wide-ranging regulation-making power Amendment 33A seeks to delete.

I share the view that it would help if this issue could be further discussed before the Bill leaves this House, which means before Third Reading. I also share the view that the subsection that Amendment 33A would delete will, if it remains in the Bill, be the subject of much discussion when it gets to the Commons. If the Government will not agree to delete it, it would be a lot better if it could be amended in some way. I hope they will think again on this issue.