HGV Road User Levy Bill (Ways and Means)

Andrew Bridgen Excerpts

Tuesday 23rd October 2012 Commons Chamber

[Andrew Bridgen (North West Leicestershire) (Con)]

I draw the House’s attention to my entry in the Register of Members’ Financial Interests, and point out that I have been a holder of a certificate of professional competence in road haulage operations for more than 20 years.

I welcome this proposal, as other Members have done. My constituency of North West Leicestershire is in the middle of the country, and is home to East Midlands airport, the second busiest cargo airport in the country, handling some 310,000 tonnes of flown cargo every year. More than a third of the private sector jobs in my constituency are in distribution, or are distribution-related, and as we have no railway station, road haulage is an extremely significant part of our local economy.

The UK road haulage industry is of huge importance to not just my constituency but the whole UK, with 2.6 million people employed in the logistics industry. As the shadow Minister mentioned, more than 65% of all freight is transported by road; last year, that amounted to some 1.5 billion tonnes. By comparison, just 11% is transported by rail. For those who are wondering where the other 24% went, that is transported by pipeline or coastal and inland waterway shipping. Almost all goods involve some element of road transport.

I have spoken to road hauliers regularly, both in my previous business career and in my present role representing them in Westminster. As has been said, the consensus on the issue of foreign-registered heavy goods vehicles can be summed up very simply in one phrase: hauliers simply want a level playing field.

As my hon. Friend the Member for Brigg and Goole (Andrew Percy), who is no longer in the Chamber, said, road hauliers in the UK are at a huge disadvantage compared with our European neighbours when it comes to diesel prices. It is estimated that on average road hauliers pay 25p more for a litre of road fuel. When UK lorries go abroad, there are literally dozens of toll roads in countries such as France, Italy and Spain, whereas in this country, apart from bridge crossings, which we have heard about, there is only the London congestion charge and the M6 toll, which can be avoided.

Clearly, charging foreign-registered hauliers would be a step in the right direction if we are to close the gap and address the advantage that they enjoy over UK-based hauliers. Because EU law dictates that the charge has to be applied to UK hauliers too, I welcome the UK Government’s proposal to reduce domestic vehicle excise duty to ensure that this is not just a stealth tax on haulage companies.

I welcome the proposal to make foreign-registered vehicles contribute to the upkeep of UK roads. I remind the House of the costs generated by foreign hauliers as a result of accidents, which have been mentioned. A report by the Accident Exchange estimates that accidents involving foreign lorries on UK motorways cost our economy approximately £57 million a year, which represents an increase of almost a third compared with the 2010 figures.

Foreign lorries are responsible for just over 3% of motorway accidents, which means that one in 31 motorway accidents, according to the report, are the fault of a foreign lorry driver. As the hon. Member for Poplar and Limehouse (Jim Fitzpatrick) said, side-swipe crashes are the most common accident: drivers disappear into a left-hand-drive lorry’s blind spot, and are hit when it changes lanes. According to estimates, costs were not recovered from the at-fault foreign party in 28% of accidents last year because of factors such as invalid insurance policies, untraceable owners, drivers leaving false details, or just failing to pull over at all. I hope that the Minister will help us to address this issue.

There is no doubt that left-hand drive foreign-registered vehicles are far more likely to be involved in accidents on UK roads than their domestic competitors. The Vehicle and Operators Services Agency reports that foreign-registered vehicles are far more likely to be found on inspection to be in breach of rules on drivers’ hours and to have maintenance defects.

As has been said, the Freight Transport Association supports these measures, and welcomes the publication today of a parliamentary Bill to introduce a charge for foreign-registered vehicles that use UK roads. It says:

“Under the HGV Road User Levy Bill all heavy goods vehicles of 12 tonnes and over will be required to pay a levy before being able to travel on UK roads.”

It also says:

“FTA has supported the idea of a charge on foreign vehicles for many years as a way of addressing at least partly the competitive differences between British registered operators and foreign-registered vehicles.”

However, it imposes three important conditions on its support and, if the House will indulge me, I should like to go through them. First, the cost of the levy must be fully recompensed for UK operators by an equivalent reduction in vehicle excise duty. The FTA says:

“The Bill makes explicit that VED will be the means by which rebates will be made to make the overall scheme virtually cost-neutral for UK operators. The precise reductions in VED to bring this about will not be known until the Budget Statement in 2014 where they will be included as part of the Finance Bill.”

I hope that the Minister will give us more details on that. The FTA goes on to say:

“An analysis published by the Department in February of this year showed that about 6,500 vehicles fell into bands where VED rates were already too low to fully offset the cost of the levy before the applicable EU minimum rate was reached. Of these about half were 28 tonne 2+2 articulated vehicles.”

May I point out to the Minister that in nearly all cases the additional cost could be reduced to less than £10 if vehicles are down-plated into the next VED rate band? I hope that he will bear that in mind and that we will have some answers on that issue.

The FTA’s second condition is that the cost and administrative burden of paying the levy must be no greater than those involved in acquiring a normal VED licence. I am pleased that the levy will be administered for UK operators by the DVLA. The Bill makes it clear that the levy will be paid in a single transaction and for the same time period as VED, with levy rates being calculated automatically. The “single transaction” approach means that there will be virtually no additional costs for the domestic haulage industry.

The FTA’s third condition is that there must be meaningful and financially significant penalties for operators who evade the charge. The Bill sets out a detailed enforcement strategy for non-payment of the levy and for mis-payment at the wrong rate. Because each payment will be vehicle-specific, the Bill commits the DVLA to using automatic number plate recognition technology to target vehicles present in the country for which no levy has been paid. There will be on-the-spot fines and a fine of up to £5,000 upon conviction in court. I should like to ask the Minister how non-UK-registered vehicles that have left the country and have not paid the levy will be pursued.

A few issues need to be resolved, so I shall put some questions to the Minister. How will charging work in Northern Ireland across the land border with the Republic of Ireland? How will holders of reduced pollution certificates be compensated through replacement grants? Detailed arrangements have been announced for tow-bar combinations and their inclusion in the scheme. As I have said, we need to look at operators who are using the types of vehicle where there will be a higher net charge, particularly the operators of 28-tonne 2+2 artics. The FTA said:

“Overall, we are pleased with the Government’s plans to address this long-standing disparity between UK and foreign vehicle costs. Our main concerns seem to have been met and we will investigate further outstanding issues with members”.

In conclusion, the Bill is good for the road haulage industry, which is hugely important to my constituency and to the whole country. It is essential that we have a profitable, vibrant and safe road haulage industry for the country now and for our long-term economy.

--- Later in debate ---

[Andrew Bridgen]

rose—

[Stephen Hammond]

I will give way one last time before I make some progress.

[Andrew Bridgen]

I have a question that I did not ask during my brief speech. How often does the Minister envisage the road user levy will be reviewed by the Treasury? Will he consider calling it a Brit disc, which would be a nice patriotic name?

[Stephen Hammond]

I think that my hon. Friend will find that the levy will reflect some fluctuations in the exchange rate, but the level of VED is a matter for the Treasury and it is usually set annually. As to the change of name, we would like to get the Bill on the statute book with this name first before considering anything else.

We will ensure that hard-working hauliers do not face an additional administrative burden, so the levy will be part of one payment when they renew their vehicle excise duty. To ensure that all the benefits of the levy are felt as soon as possible by carriers, the Government intend to bring forward the implementation date for foreign hauliers by almost a year to April 2014. Due to the time needed to change systems for UK hauliers’ payments and to hold a robust procurement of the provision of the payment facility to foreign-registered hauliers, it is not possible to bring the overall levy introduction date any further forward than April 2014.

I should make it clear that this legislation is not designed as a precursor to increased charges on business. The charge has a clear, focused objective. The introduction of the levy is entirely separate from any other reviews that my Department might be undertaking. Whatever the outcome of those reviews, we will ensure that HGVs are not charged twice for using the UK road network.

--- Later in debate ---

[Stephen Hammond]

Sorry. My hon. Friend the Member for Milton Keynes South—an important distinction—made an important point about modal shift and the encouragement of rail freight, and I combine that with the contribution from my hon. Friend the Member for Suffolk Coastal (Dr Coffey), who is no longer in her place. She made a point about the A14 being a key artery, and I will be delighted to meet her over the next couple of days to discuss that matter. She also made the point about a modal shift now that improvements have been made to the rail system out of Felixstowe. That is absolutely right, and I am convinced that the Bill does nothing to impair modal shift, but will enhance it.

[Andrew Bridgen]

One important question has not been asked in this debate, and if the Minister knows the answer, perhaps he will share it with the House. What is the estimate for the amount of money that will be raised from foreign hauliers by the introduction of the road user levy?

[Stephen Hammond]

That is an important question, and my hon. Friend is right to say that it has not been raised so far. The Department estimates that somewhere between £18.7 million and £23.1 million will be raised at current prices, but I am sure that as the years go by, that sum will increase.

I believe I have comprehensively reviewed my colleagues’ contributions—

Midland Main Line

Andrew Bridgen Excerpts

Monday 16th April 2012 Commons Chamber

[Nicky Morgan]

I thank the hon. Gentleman for those points and he is absolutely right. That was one thing that I discovered in researching my speech. When I applied for the debate, the title covered only electrification but in the course of preparing for it I understood that the two go hand in hand. We must have the upgrade works first in order to have electrification. The work must be done that way around and I thank the hon. Gentleman for making that so clear.

As I have said, the route utilisation strategy identified the midland main line as a route for which there was likely to be a strong business case for extending the electrification of the line to the north as far as Sheffield. The decision to proceed with High Speed 2 has not affected that business case. What are we looking for, therefore? First, the upgrade works, which comprise major re-signalling schemes around Derby and Leicester, a number of line speed improvements—my right hon. Friend the Minister might be aware, as I was not, that 125-mph trains have never yet travelled at 125 mph on the bit of the midland main line that we are debating because the track was not improved at the time they were launched to allow them to do so—and longer trains. After the upgrade works, we would like to see electrification for the Bedford to Sheffield part of the line via Wellingborough, Kettering, Corby, Leicester, Derby, Nottingham and Chesterfield—as I wrote that, I thought that I was beginning to sound like one of the train announcers.

Why do I and so many others believe the midland main line’s time has come? First, there is expected to be a huge growth in passenger demand on the midland main line that has been identified in the east midlands route utilisation strategy. I can tell the House, just from my own observations, that the line continues to get busier and busier. Already 13.2 million passengers travel on the midland main line each year. That is more than double the number who travelled on the line at the time of privatisation and the number keeps growing. Network Rail estimates that by 2020 the numbers travelling from the east midlands to London will have increased by 27% and that the numbers travelling from Nottingham to Birmingham will have increased by 42%.

Secondly, these upgrade and electrification works are an essential component of establishing an integrated long distance rail network alongside High Speed 2. Those banging the drum for the midland main line have waited while the Government have assessed High Speed 2. Now that it is going ahead we believe the improvements to the midland main line must happen too.

Thirdly, the midland main line connects four of England’s largest cities and one of the fastest-growing areas in England to London and vice versa.

[Andrew Bridgen (North West Leicestershire) (Con)]

I thank my hon. Friend for securing the debate and I should like to add weight to her arguments. Economically, my constituency is one of the fastest growing in the country despite the fact that not one of 2,000 railway stations is located in my constituency. My constituents already have to travel to get on to the railway line and they should not be further handicapped by journey times that are longer than they need to be. I want these improvements to the midland main line and so do my constituents.

[Nicky Morgan]

I thank my hon. Friend and neighbour for making those points. He is absolutely right and I am going to come on to freight, which is also a very important part of the growing economy within his constituency.

Oral Answers to Questions

Andrew Bridgen Excerpts

Thursday 23rd February 2012 Commons Chamber

[Mrs Villiers]

It is difficult for me, as a Minister, to comment on the specific deal, as that is a matter for the competition authorities. It is worth bearing in mind that Aberdeen, Edinburgh and Glasgow have 60,000 such flights a year, so there is excellent connectivity as things stand. It is important that in our discussions with the European Commission on its airports package we ensure that it is aware of the importance of regional connectivity. We will look into that in our aviation framework document. Our plans for High Speed 2 will deliver a three and a half hour journey time between Scottish destinations and London, which will provide an attractive alternative to aviation.

[Andrew Bridgen (North West Leicestershire) (Con)]

BMI’s headquarters is at Castle Donington in my constituency. Many of my constituents are very concerned about their employment prospects at the company. Will my right hon. Friend update the House on the progress of the proposed takeover by International Airlines Group?

[Mrs Villiers]

My understanding is that the directorate-general for competition at the European Commission has been informed, and that the Office of Fair Trading is in contact with the parties and the Commission on the proposed sale.

Oral Answers to Questions

Andrew Bridgen Excerpts

Thursday 10th March 2011 Commons Chamber

[Mike Penning]

I will be more than happy to meet my hon. and learned Friend, his local authority and campaigners to discuss that issue. The guidance is there for local authorities to implement, and we will see what we can do to ensure that things are better in his area.

[Andrew Bridgen (North West Leicestershire) (Con)]

11. What recent progress he has made on plans to electrify the midland main line.

[The Secretary of State for Transport (Mr Philip Hammond)]

The Government’s policy is to support the progressive electrification of the railway. The Department for Transport will continue to consider the business case for the scheme that my hon. Friend mentions as part of the work to inform decisions in the next railway control period, beginning in 2014.

[Andrew Bridgen]

Does the Secretary of State agree that there would be huge benefits to the east midlands from the electrification of the line? Given the massive economic and housing growth predicted for the east midlands over the next few years, an early timetable for electrification of the line would be very helpful to business and planners.

[Mr Hammond]

My hon. Friend is right to note that there is a strong case, on the face of it, for the electrification of the midland main line. He will know that there are works currently under way on the line to improve line speeds, and I had the opportunity to view them from the cab of an East Midlands Trains service on Monday. When they are completed at the end of 2013, they will result in the journey time from London to Sheffield being reduced to less than two hours.

Oral Answers to Questions

Andrew Bridgen Excerpts

Thursday 27th January 2011 Commons Chamber

[Norman Baker]

I echo the condolences expressed by my hon. Friend about that tragic accident.

We are conscious of the importance of rural areas, which is why the issue was flagged up in the local transport White Paper. I changed the guidance on concessionary fares to ensure that the special position of rural and long-distance routes was specifically recognised in that regard. We have been in touch with local authorities to look at innovative schemes, such as dial-a-ride and so forth, to ensure that local services, which are essential to rural areas, are maintained.

[Andrew Bridgen (North West Leicestershire) (Con)]

13. How many commercial vehicles underwent Vehicle and Operator Services Agency roadside inspections in December 2010.

[The Parliamentary Under-Secretary of State for Transport (Norman Baker)]

Approximately 7,000 vehicles underwent Vehicle and Operator Services Agency roadside inspections in December 2010. That was a combination of trucks and trailers, cars, buses and vans. That number comprised just over 17,000 checks of individual areas, such as checks for mechanical defects or drivers’ hours offences.

[Andrew Bridgen]

I thank the Minister for that answer. However, considering that the weather in much of December was so severe that it had a major impact on economic growth in this country and caused major disruption to the transport infrastructure, does he agree that VOSA should have a much more flexible and business-friendly attitude to conducting roadside checks, when hauliers and transport operators are struggling to supply the economy during severe weather conditions?

[Norman Baker]

I sympathise with my hon. Friend’s point, and he may be happy to know that VOSA did take a pragmatic approach to enforcement during the recent unusually difficult weather. In fact, in December 2010 it carried out only 60% of the tests it carried out in 2009. It has also taken account of a number of relaxations that the Government have made to drivers’ hours regulations because of the weather, and it has had regard to the inevitable delays that such weather can cause to journeys. However, we must ensure that all journeys on our roads are safe.

Oral Answers to Questions

Andrew Bridgen Excerpts

Thursday 2nd December 2010 Commons Chamber

[Julian Smith (Skipton and Ripon) (Con)]

2. What steps he is taking to encourage sustainable local travel.

[Andrew Bridgen (North West Leicestershire) (Con)]

6. What steps he is taking to encourage sustainable local travel.

[The Secretary of State for Transport (Mr Philip Hammond)]

Our commitment to sustainable local travel is evidenced by our decision to establish a £560 million local sustainable transport fund. We will shortly set out the criteria for bidding for the fund, and we will publish a White Paper next month setting out the policy initiatives that we will take forward in supporting local authorities to deliver sustainable local travel.

[Mr Hammond]

It is not a new funding formula. The local sustainable transport fund is a fund to which local authorities can submit bids, so if they have innovative schemes to support rural bus services they will be able put in bids to the fund. The Minister for Local Transport, my hon. Friend the Member for Lewes (Norman Baker), has been working with bus companies and the Local Government Association over the past few weeks to ensure that the guidance to local authorities on the distribution of funding for concessionary fares does protect rural bus services, and he has achieved a major advance in ensuring that rural bus services are protected.

[Andrew Bridgen]

In a constituency such as mine, which consists of towns and many villages but no railway station, the local bus service is absolutely essential in ensuring that our villages remain vibrant hubs and do not become merely dormitories. Does the Minister have any plans to review the 90% law, whereby the local authority has to provide access to a bus service for only 90% of the population?

Concessionary Travel

Andrew Bridgen Excerpts

Wednesday 24th November 2010 Westminster Hall

[Andrew Bridgen (North West Leicestershire) (Con)]

My constituency is very similar to that of my hon. Friend; it has both urban and rural areas. My district council has currently budgeted to spend £887,000 on the concessionary fare scheme this year, and it will receive a specific grant of £196,000 to meet part of that cost. However, my county council is concerned that, when this spending on concessionary travel passes to county councils, the formula grant will be reduced by more than that £691,000 shortfall—many other Members have expressed similar concerns about shortfalls today—and that that would put added pressure on a budget that has already been cut by 25%. If we want to avoid rural isolation, we must have a guarantee that we will not have a shortfall.

[Karen Lumley]

I agree with my hon. Friend and I look forward to hearing the Minister’s reply to the debate in a few moments’ time.

The Government have promised to examine smarter ways of administering the bus service operators grant subsidies, as well as a system that more clearly—

Oral Answers to Questions

Andrew Bridgen Excerpts

Thursday 28th October 2010 Commons Chamber

[Norman Baker]

The hon. Gentleman will know that the Tees Valley bus network’s improvement scheme is going ahead. The Government have confirmed that only recently, so I hope he will welcome that particular suggestion. It is our intention to get more people on to buses, and we are working with local authorities and the bus industry to achieve that—for example, by the roll-out of smart ticketing. So, yes, his constituents will be able to get on a bus; in fact, there will be even more buses than previously.

[Andrew Bridgen (North West Leicestershire) (Con)]

How does the Minister propose that the local sustainable transport fund will fill the boots of resource grants, with the funding reduced now, especially in counties such as Leicestershire?

[Norman Baker]

The local sustainable transport fund is a fund of £560 million during the rest of this Parliament. By anybody’s standards, that is an enormous sum to spend on prioritising local transport, cycling, walking, bus services—if that is what local authorities want to do—bus lanes and other such traffic management matters. I would have hoped that the hon. Gentleman would welcome that commitment by the Government; it is an enormous sum for those particular objectives.