Infrastructure Bill [HL]

Lord Berkeley Excerpts

Monday 3rd November 2014 Lords Chamber

Moved by

[Lord Berkeley]

36: Clause 9, page 6, line 18, at end insert—
“( ) The Office of Rail Regulation is renamed as the Office of Rail and Road Regulation.”

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[Lord Berkeley (Lab)]

My Lords, in this grouping I have five small amendments, Amendments 36 to 40. They really suggest that perhaps the Office of Rail Regulation needs renaming, whether as the Office of Rail and Road Regulation, the Office of Road and Rail Regulation, the Office of Surface Transport or something like that. Given that the Government and Passenger Focus have agreed to change that organisation’s name, I wondered whether the Minister had any proposals to make this change.

Amendment 39 tries to link in with the licence and other things about which we were talking. Probably the most important amendment in this group of five is Amendment 40. Can the Minister explain why Clause 9(5) is there? Basically, the strategic roads authority would not have to provide any documentation to the monitor or office of road regulation if it was confidential. It could not be compelled to produce such information.

I do not believe that that is the case for the Office of Rail Regulation or Network Rail. Network Rail should provide every bit of information that is required. I know from discussions in Germany with the German rail regulator that the German railway, Deutsche Bahn, succeeds in preventing the regulator from investigating some sections too thoroughly because it was not given the information. It is a bad precedent. Would the Minister consider whether this paragraph is necessary or could be changed?

The final two amendments in this grouping are Amendments 41 and 42. Perhaps I should speak to Amendment 42 and the Minister could answer. She should then speak to Amendment 41, which is a very good amendment that I welcome. It concerns compliance and fines, and I am sure that the Minister will talk about fines. Look at new subsection (1)(a) and (1)(b) on a road investment strategy and directions and guidance, proposed in government Amendment 41; it would be rather good to have in addition two paragraphs (c) and (d) that referred to compliance with safety and efficiency requirements. It seems to me that that would tie up the role of the ORR and make sure that it had to investigate all these issues such as safety and efficiencies and, if necessary, levy fines or impose any other penalties that it felt should be imposed. I beg to move.

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

My Lords, I have previously discussed the rationale behind a number of government amendments which will further define the duties of the monitor. Amendment 41, which I have already described but will move shortly, if I understand it correctly, makes it clear that if the company fails to comply with its statutory directions or have regard to guidance, the monitor may issue fines. We have covered Amendment 43, which will give the monitor a duty to drive performance in a number of areas.

Amendments 38 and 39 propose an alternative to the Government’s definition of the monitor’s function. However, as I have mentioned, the Government’s amendments to the Bill already describe what the monitor should have regard to when monitoring the strategic highways company. With those in place, the distinction between “monitoring” and “ensuring” should become academic.

The noble Lord, Lord Berkeley, has also proposed that we remove subsection (5), which prevents the ORR requiring the company to provide it with information that it would not be compelled to produce during civil proceedings. Our legislation already grants the Office of Rail Regulation strong legal powers to require the strategic highways company to disclose data. However, I reassure noble Lords that this does not mean that the monitor has carte blanche to access every file held by the company. For example, the company should not be obliged to disclose particularly sensitive documents—for example, legal advice. This is a perfectly reasonable proposition.

In assessing the performance and efficiency of the company, there is little information that the company would not be compelled to disclose during civil proceedings that would help inform the monitor’s analysis. In addition, pitching this at the level of civil proceedings has a precedent. The provisions in subsection (5) mirror those in Section 58 of the Railways Act 1993.

As for the amendment of the noble Lord, Lord Berkeley, to the government amendment, I agree that the company must comply with its health and safety obligations and have due regard to maximising efficiency. It is also important that the monitor has the power to sanction the company if its performance and efficiency have been insufficient, as the Government’s amendments have set out. However, as we have already discussed, I do not believe that it follows from this that the monitor needs further powers to issue sanctions for health and safety. The Health and Safety Executive is responsible for policing this area and every company has an obligation to comply with the Health and Safety at Work etc. Act 1974, regardless of what our monitor is empowered to do. As there is already an effective and respected body in this area, I feel that it should be left to continue with its good work.

Turning to the second addition, once more I agree that maximising efficiency on the design, construction and operation of the highways is important. When we discussed Amendment 43, we made it clear that the monitor has critical responsibilities in assessing the key themes of performance and efficiency; and it will need to use its powers of sanction accordingly. The Government’s amendments ensure that these issues are given appropriate regard. The monitor will have the power to sanction the company if it is satisfied that the commitments of the road investment strategy, which will include commitments on construction and on efficiency, have been contravened.

This leaves the issue of design, which is currently the remit of existing planning authorities. Planning authorities operate effectively and judiciously all across the country. They currently have the responsibility for approving the design of any highways and are well placed to consider local issues. This system works well, and I believe that matters of design should remain in their capable hands. They need not be duplicated by the monitor.

Finally, I turn to the first amendment in this group. This proposes that the Office of Rail Regulation be renamed the Office of Rail and Road Regulation. As your Lordships may be aware, following discussions in Committee we have announced that we plan to change the legal name of the watchdog from the Passengers’ Council to Transport Focus. I can understand why the noble Lord proposes this change for the monitor. This case, however, is less straightforward.

There is the issue of the proposed name. While it may appear that we are indeed talking about an office dealing with road and rail issues, I urge caution around “regulation”. The monitor will not be a regulator of roads, at least in the market-setting sense in which the ORR currently regulates the railways. It will not control the direct costs on individual motorists for using the network, as it does on the rail side, because for the vast majority of roads such costs do not exist. In fact, the tools available within a hypothetical office of rail and road regulation would be very different, depending on which side of the road or rail fence it was acting.

We have discussed this question with the ORR itself. It is very alert to the new challenges of its role, and to the value of handling road and rail policy in one organisation. It does not, however, think that a name change is appropriate at this time.

Unlike Passenger Focus, the ORR has to manage a relationship with its levy payers in the rail sector and has a formal role in making sure the rail market functions well. Given that this is a substantially different role to roads, it would rather carry out the road work under a strong free-standing brand—the strategic road network monitor—while retaining its current statutory name for its existing work. This will ensure that any confusion is avoided and that, in the eyes of the public, roads monitoring is clearly differentiated from rail regulation. This will make it clear that neither road nor rail users risk having their interests eclipsed by the other.

There is also a practical issue with the noble Lord’s approach to renaming the Office of Rail Regulation. Considering the varied legislation in which the name “the Office of Rail Regulation” appears, the proposed amendment would not be in itself sufficient to make the change. There would also need to be significant tidying up. That is why we are renaming Passenger Focus, through secondary legislation, in which these implications can be worked through. If we were changing the name of the ORR, we would want to follow the same approach.

The amendment that I propose is an important safeguard in ensuring appropriate monitoring of the strategic highways company, and I hope that your Lordships will support it. Conversely, I believe there is a strong argument against each of the amendments of the noble Lord, Lord Berkeley, and ask that he withdraw this one.

[Lord Berkeley]

I am grateful to the noble Baroness for her full answers to those questions. I shall not push the ORR issue again. It is not something that has to be top of the priorities, but I am grateful to her for her explanations, and I beg leave to withdraw the amendment.

Amendment 36 withdrawn.

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[Baroness Kramer]

Your Lordships have previously asked if cyclists and walkers are included in the definition of road users of the strategic road network and other highways. The answer remains emphatically yes, and I have moved an amendment to make this absolutely clear for the provisions of the Bill where we use the phrase “users of highways”. I should also point out that this definition—I have double-checked this with the lawyers—absolutely does not exclude any other users who may not be mentioned.

[Lord Berkeley]

The House should congratulate the Minister on the amendment. We have discussed it so often. We have been told on many previous occasions that Governments do not like lists; you can understand that. I shall not table an amendment saying, “Please add Segways and horses” or anything else. I take what the Minister says: this covers everything.

In that vein of thanks, the two other amendments in this group are to do with cycling and walking strategy. Some noble Lords have already spoken on cycling and walking. It may seem odd that on strategic highway routes there is not much cycling and walking. I suggest that there should be. It is important that, as part of the strategies that the strategic highway company will have to look at, it should have a separate cycling and walking investment strategy.

In this House we have debated cycling on many occasions. The pressure is on from many areas, not just from the cycling and walking organisations but also from those who believe that they are pretty healthy forms of transport, to get the Government to commit to a long-term strategy with some long-term funding. So far, Ministers have not been able to make any commitment to funding, but the recommendations from the All-Party Parliamentary Cycling Group’s report last year suggested that £10 per head of population per year—which is about half the figure in many continental countries, such as Belgium, Holland and Denmark—could be allocated on a long-term basis to improving cycling facilities, infrastructure and other things,

I know that Ministers have in the past said that this is a local problem and that it should therefore be funded locally. The problem is that local funding does not usually stretch to such things. Many people believe that, combined with a draft strategy, something like what is in Amendment 55 and the proposed new schedule in Amendment 96 should be done for the benefit of health, and for cyclists and walkers, and to reduce road congestion, pollution and the other things that we talked about earlier.

I look forward to the Minister’s response, and take into account that this is only the small tip of an iceberg. As my noble friend Lord Davies of Oldham said, most journeys take place on local roads. Still, it is a start, and if it could happen on the trunk road network, I suspect that the other roads would soon follow.

[Lord Teverson (LD)]

My Lords, I, too, very much welcome the Minister’s amendment. It offers clarity and shows that the Government are quite clear that cyclists and walkers are important on the highway network. I admit that I could not resist backing the amendment of the noble Lord, Lord Berkeley, because, although I am not an absolutely regular cyclist, I get my bike out quite frequently in Cornwall, which is not the easiest of terrain to cycle.

I was in continental Europe over the weekend, and it was astounding to see how important cycling can be in terms of an alternative transport means and strategy. If it is one that is generally safe, and one that is accepted among families, then it becomes a normal way of getting to school, of getting to work and moving around. Indeed, I remember doing it as a child back in the 1950s and 1960s. I always used to cycle to school, save the bus fare and spend it elsewhere. That was my disposable income for the week.

Given the excellent work that, in particular, my right honourable friend Norman Baker has done in the other place in the past, and the Local Sustainable Transport Fund, this is something that we need to build on. That is why I was very pleased to support this amendment. It would be good to move to a proper formal government strategy in this area. It is also all part of our commitment to reduce carbon emissions in the transport sector, and a very important way of doing that. Having said that, I also understand the argument that—hopefully—as we devolve more fiscal powers to cities and non-metropolitan areas as well, this should be a major part of their focus of work, too.

It would be a sign that the Government is looking at this area and has some strategy that they see as a framework. It would also give a signal that the Government think that this is important, and would get them ahead of the curve on this important change that is gradually happening. It would be so much better for all of us: for emissions, for physical exercise and for congestion. It would have big pluses for all those points of view. That is why I am pleased that the Minister has proposed the amendment that she has, but I hope that the Government can consider this and take it forward in some way or another.