I agree with the noble Lord that it is part of the problem. I suspect that he may be referring to the air passenger duty and other matters. I shall write separately to him on that important matter, because I think it is fair to say that there is a balance to be struck between allowing people to travel and being sure that our aeroplane sector is fit for purpose in terms of achieving our climate change goals. I think that was probably the gist behind his question.
On flooding, we recognise that action is needed to improve surface water management as flood risk increases, so we have commissioned the NIC to conduct a study into the management of surface water flooding in England, including the role of nature-based solutions. In addition, the Government have updated their partnership funding arrangements, enabling more surface water schemes now to be delivered via their £5.2 billion investment programme.
Finally, I turn to urban connectivity, as part of the wider transport issues that I mentioned earlier. We recognise the challenges in respect to this highlighted by the report. That is why in the Budget we committed £5.7 billion over five years for London-style integrated transport settlements that will transform local networks in eight English city regions, and we have announced £1.2 billion over the spending review period for bus transformation deals.
The noble Lord, Lord Berkeley, asked whether the Government should consider the challenges and costs of delivering major infrastructure projects. He is quite right to highlight this. That is why the Chancellor set up Project SPEED to ensure that spending decisions are informed by deliverability concerns.
Moving quickly to next steps—with the Committee’s indulgence, I will go on beyond my time, but not too far—our work to create an infrastructure revolution is a remarkable cross-government effort. The Government have an established process for formally responding to the NIC’s recommendations. Once it has published the second national infrastructure assessment in the second half of 2023, we will respond as soon as practicable, although, as I have shown today, we are already engaging on these issues.
The noble Baroness, Lady Bakewell of Hardington Mandeville, asked about flood defences and where the £5.6 billion is being invested. Funding is distributed consistently across the country to wherever the risk is greatest and the benefits are highest. Defra published its flood and coastal erosion risk management investment plan in July 2021, as she may know. It provides an indicative regional breakdown of spend, including between £620 million and £750 million of investment in the north-west and £680 million to £830 million in Yorkshire and the Humber.
The noble Lord, Lord Tunnicliffe, asked about funding and urban connectivity. The Government have provided £4 billion of additional emergency funding to support TfL through the pandemic to address urban congestion. We have announced £5.7 billion to support transport networks.
I will conclude with a few ad lib-type remarks, as I want to pick up on an interesting point made by the noble Lord, Lord Berkeley, about our reflection on going to Waitrose to pick up a box of matches. We should be sure, as part of this debate on the NIC, of the vision we are looking at. This is probably not government policy, but we should look ahead—probably not too far—at how we might get our box of matches. Surely we would order a drone, which would deliver it to us. Or, if we were going to go to Waitrose, we would talk to our watch and ask a car—not our car but any driverless car—to come to our door. We would then get into the car with a coffee and a newspaper, be driven to Waitrose to buy our box of matches and then be driven back. The car would then disappear into the ether. We would then take our box of matches—perhaps rather cynically, I wonder what it might be for. Perhaps it is to light your fire in the drawing room, which adversely affects CO2, so maybe we should not go there. Anyway, the serious point is that we need to think quite positively about the changes that will definitely come to the way that we live. The noble Lord, Lord Berkeley, spoke about society and our way of life. He makes an extremely good point.
To conclude, this is an extraordinary moment—
Before my noble friend sits down, perhaps he would like to exceed his brief again and say something about the longer term. He has answered very well on some of the individual comments raised by Peers this afternoon, but the point I was trying to make is that the National Infrastructure Commission is important because it looks at the longer-term, comprehensive picture, and the need for planning is very important. As a former Treasury Minister, I know that it is not always top of the Treasury’s list.
Perhaps we might discuss on another occasion the excellent point made by the noble Lord, Lord Tunnicliffe, about capital and current expenditure. I remember talking to Education Ministers who had spent lots of capital on schools. Capital was easy, free and glamorous, but running costs were not. The capital did not provide the cheapest possible way of running things, which commercial operators care a lot about. There is a profound point underlying his question, and it would be good if we could come back to that on a future occasion.
My noble friend makes a very good point, and I hope that I have made it clear that we are thinking big and long. I mentioned 30 years, but perhaps we should look longer than that. One example is HS2. Whether we like it or not, that is an example of long-term planning—now covering four Governments, because I think it goes back to before 2010 as a concept.
That plays in nicely to my concluding remarks. We are perhaps at an extraordinary moment in this country’s history, as we make our way in the world as global Britain and build back better after Covid-19. This Government’s infrastructure revolution will, as the Prime Minister has previously put it, unleash the productive power of every part of this country and allow us to seize these opportunities with both hands. I have no doubt that the advice and guidance of the NIC will be integral to achieving all this and ultimately to helping us reach new levels of success.
Finally, as the noble Lord, Lord Berkeley, and the report put it,
“bold action, stable plans and long term funding”
are the aims. It is just a question of how we get there.
The noble Lord draws me into a different area and he would not expect me to have any answers on that. The House knows that we very much hope for a deal between the UK and US to be forthcoming at some point. It is true to say that there is no inkling that this will happen soon, but we know that discussions continue and that the Prime Minister discussed this with President Biden when he was last over—whenever that was. That is as far as I can go and the noble Lord probably knows everything that I said.
My congratulations go to our new Secretary of State, my noble friend Lord Grimstone and the Minister on this new deal. I am also glad to hear of support for trade with the Commonwealth and ASEAN markets. Of course, we trade very well with the United States, even in the absence of a trade agreement. I have two points. First, with the opening up of trade, which I strongly support, our farmers will need to be more productive, especially our small farmers, whom we have heard about. Will they be given more help to become efficient? I am concerned that farming policy now seems to be all about rewilding and wildlife, which will not make us as competitive as we need to be in the new world.
Secondly, I was very glad to see in the announcement about the new Trade and Agriculture Commission, which the noble Lord, Lord Grantchester, referenced, that the UK will be working with our trading partners on tackling antimicrobial resistance, which is a real threat to mankind. If this effort fails, it could be worse than the pandemic in hitting the young and the vulnerable. Was AMR, as I think we call it, part of the discussions with New Zealand?
Those are two very specific questions. My noble friend is right that, at the end of the day, this proposed deal—the agreement in principle—represents two staunch democracies working together to meet global challenges, from climate change to the future of digital trade. There is a symbiotic relationship in embracing the opportunities of the global marketplace, with both countries supporting jobs, enterprise and wealth creation.
I will certainly have to write to my noble friend on AMR. On her first question on trade, she is absolutely right, and I am sure the farming community would agree as well, that efficiency is an important part of ensuring that community and farming organisations are fit for purpose to be better able to export to places such as New Zealand. I know that there are vehicles for that and I will certainly be writing to my noble friend to give her the detail, which I suspect will come from my colleagues in Defra.
I cannot say what will be on the agenda beyond, as I said earlier, a discussion about the progress that the joint board has made so far. However, I will certainly take the point that the noble Lord has raised back to officials. I think that we will be able to explore the victims payment scheme during the next Question, but this is very much a matter for the Executive to take forward. The funding is there and comes out of the block grant.
My Lords, the services sector accounts for 75% of gross value added in Northern Ireland and 22% of external sales by Northern Ireland firms. Can my noble friend suggest that helping this sector, hard hit by Covid, should be on the board’s agenda? It ranges from retail and transport to health and professional services, and from tourism to the arts. For example, “Game of Thrones” has brought new visitors to Castle Ward as the location for Winterfell, home of the House of Stark, and many other beautiful places, but I worry that Northern Ireland faces a chilly winter.
My noble friend makes a good point about the services sector, and I saw for myself the site of “Game of Thrones” when I was in Northern Ireland three or four weeks ago. The services sector is very important: it accounts for over 80% of employment and a total of 634,000 jobs. However, I remind my noble friend that the focus is much more on health, education and justice as part of the joint board’s remit.
(7 years, 2 months ago)
Lords ChamberTo ask Her Majesty's Government whether they intend to take any steps to improve the product recall system; and if so, whether they intend introduce a time limit for replacing tumble driers recalled due to safety concerns.
My Lords, product safety is a government priority. In July, the Government’s working group on product recalls and safety published its report, making recommendations on how to improve recalls and reduce fires in white goods. The Government commissioned the British Standards Institution to develop a code of practice on corrective actions and recalls, which is currently out for public consultation. We have upgraded our recalls website to ensure consumers can access information on recalls.
My Lords, I find that Answer a little disappointing. Whirlpool is a US company that is not taking its responsibility for safety seriously enough, leaving millions of dangerous machines in our British homes. Is the present recall system fit for purpose or do we need urgently to introduce and resource some central focus of responsibility when we have a massive recall, whether it is for tumble dryers or fridge freezers? Lives are at risk and I want to do more.
My Lords, in such cases there is often a question of whether there is a need for recall or modification. The right approach has to be taken and that is a matter for trading standards. Peterborough city trading standards, which is responsible for the case of Whirlpool and Indesit tumble dryers, has been working closely and urgently with Whirlpool and has modified 1.7 million dryers. The resolution rate is over 40%—far higher than the average. On product safety, where there is a national concern, the Government are considering wider recommendations about an increased national capability: a central hub for technical and scientific resourcing for co-ordination of national recalls.
My Lords, my noble friend Lord Clement-Jones makes an interesting point about extending the law to allow multiple repairs beyond repair one but within a defined period of time. It is still not entirely clear what this time period would be. I noted that he said that it would be a determinate end-point of repair.
It is a laudable proposition but for the fact that it could put undue cost burdens on small businesses. I give the example of a local business selling a complex piece of machinery. It comes in for repair once and then on a couple of other occasions before it dawns on the trader that the repair is as a result of the customer perhaps not using it properly or misusing it. However, up until this point, it is the trader who by law, under my noble friend’s amendment, would bear all the costs of the transport and the re-repair.
Therefore, although the trader could make the sale contractual to pre-empt or prevent this, I believe that it is more proportionate and less prescriptive to retain the one-repair proposal as laid down in the Bill.
My Lords, following the discussion my noble friend Lord Clement-Jones described in Grand Committee, I recently met representatives of the motor industry to discuss their concerns about the issue of one repair and we had a constructive discussion that included other amendments. I am very pleased also to hear from the noble Viscount, Lord Simon, about his discussions with the motor industry and, of course, to see my esteemed predecessor, my noble friend Lord Younger, making a very good point about the costs on traders.
I understand—although I am not a huge fan of motor cars—that motor vehicles are very complex goods and there can be a tendency for faults to reappear after repair. However, a limit of one mandatory repair or replacement sets an important and appropriate balance. The Bill provides key simplifications, as we all know, which we expect to benefit both consumers and traders, including the motor industry. The Bill sets a 30-day period for consumers to exercise the short-term right to reject, whereas in the past, claims have been made in relation to motor vehicles some months after the car was bought. The amendments we have laid on deduction for use, which my noble friend Lord Clement-Jones referred to, recognise the particular nature of motor vehicles, being complex and subject to rapid depreciation. He also noted in Grand Committee that the issue of one repair is pertinent to the final right to reject. I am grateful to my noble friend for going away and amending his amendment.
To the extent that the Bill’s provisions regarding one repair may impact on the motor industry, I think that being able to apply a deduction for use in the first six months mitigates against that and is an important and complementary protection. I am not blind to the needs of the industry, but the revised amendments go too far. They would undermine both the consumer protection and the clarity that the Bill provides. The limit of one mandatory repair or replacement before a consumer is entitled to some money back follows consultation by both the Law Commission and BIS, both of which identified that approach as being the preferred option. The Law Commission recommended that there should be greater clarity as to when a consumer can move from repair or replacement to access some money back. The Bill’s one repair or replacement provision gives that clarity and I am concerned that it should not be undermined. Importantly, the Bill does not prevent the consumer from agreeing to further repairs. I think consumers—certainly a consumer like myself—tend to act reasonably with a motor trader, especially if they are treated reasonably in return. As long as the trader keeps them well informed I think most people would be willing to accept further repairs. If, however, the relationship breaks down, the consumer should, and will under the Bill, have the right to exit the contract if the trader has tried and failed to fix the fault.
I also feel that a time limit set by the power included in the amendment would fail to provide the necessary safeguard to protect the consumer fully. There is a real risk that such a time limit would become the default, leaving consumers stuck waiting. Without the certainty of being able to ask for money back after one failed repair, consumers would have to show that a repair process had caused them significant inconvenience or taken more than a reasonable time. While these are important protections within the Bill, we do not think they are sufficient alone for goods. This was the very issue on which the Law Commission recommended that there should be further clarity. The evidence submitted to the Law Commission’s consultation showed that it is unclear when the point of significant inconvenience is reached, allowing considerable scope for dispute.
All of these concerns are compounded by the fact that these amendments are so broad in scope. We believe that as drafted they could apply to all goods, even a table that needed more than one repair. Essentially, the amendment seems to cover both complex faults in simple goods and simple faults in complex goods. It would be unclear whether or not the consumer had to make the goods available to the trader more than once. It would also be all too easy for an unscrupulous trader to argue for repeated repairs—even on simple non-complex goods if they claimed that the nature of the fault justified it.
My noble friend mentioned guidance and perhaps, without commitment, I can come back to him on that issue.
My Lords, I was not intending to be drawn into a discussion on Europe, but the House will like to be reminded that an estimated 3.5 million jobs—some one in 10—are linked to, but not dependent on, trade with the EU. Since the single market came into being, our trade with Europe has tripled. Some 45% of UK exports currently go to the EU, so it remains a most important market.
My Lords, does my noble friend agree that the measures on energy and on support for investment and manufacturing announced in today’s Budget will improve the competitiveness of our industries and therefore encourage import substitution and improve the trade balance?
Yes, indeed. The announcement that has been made today will very much help the trade balance, and exports, which I have mentioned already on this Question and on the previous PQ, will benefit.