(1 year, 10 months ago)
Lords ChamberThe Government have had several—actually 13—ministerial-level meetings since towards the end of July. The Transport Secretary, for example, met Mayor Oliver Coppard from SYMCA on 22 September and Mayor Jones from Doncaster County Council. She has also spoken to Peel Group twice. I have spoken to Peel Group, to 2Excel, to the noble and learned Lord, Lord Falconer, who I see is in his place, and to local MPs. The reality is that my officials are in constant contact with all the relevant parties. If I feel that I can help further, I certainly will. On using the Civil Contingencies Act, we looked very closely at it, and it has a very high bar. I should note to noble Lords that, despite all the emergencies we have had in this country since the Act was passed 20-odd years ago, Part 2 of that Act has never been used: no emergency has managed to reach that high bar. We did look at it and we have challenged ourselves to ensure that the contingency plan is in place. Those tenants who will be leaving DSA are robust, and therefore their contracts can continue.
My Lords, many local airports have been in trouble since Covid. However, this airport is of great strategic significance. It has one of the longest runways in the UK, it is the home of the national coastguard operations, and it is the base for the National Police Air Service. This is, therefore, of very great national significance, not a little local difficulty. Will the Minister therefore undertake to treat this as a problem of national significance, and does she agree that the Government need to provide tangible support—not just warm words—for local representatives?
The Government do not own or operate airports; local authorities and devolved Administrations do—for example, Manchester, Birmingham, Luton and Teesside. We very much feel that, if there is a local solution to be had, it will come from local knowledge, from those local authorities. For reassurance, I have spoken to 2Excel about its contingency plans, which wrote to the former Prime Minister setting out that it would be able to continue with its work, and the Home Office is content that the NPAS will also be able to continue its work. While we are deeply disappointed by Peel’s decision, I have strongly urged the group to engage with all interested parties should a commercial solution be available.
(1 year, 10 months ago)
Lords ChamberMy Lords, the challenges facing our nation’s railways were very clearly set out—some years ago now—in the Plan for Rail. These challenges have been exacerbated by subsequent events, namely Covid, macroeconomic headwinds, and some challenges with industrial relations.
The Government remain committed to modernising our railways and transforming the industry. At its heart will be a focus on passengers. The consultation on Great British Railways and other reforms closed on 4 August. We had 2,500 very good responses. We will be working through that feedback to help us shape the way forward with Great British Railways.
The Government have invested and will continue to invest billions of pounds. On the RNEP specifically, we know that the use of the railways has changed. There has been a shift away from commuting and towards leisure. Where we invest taxpayers’ money must reflect that. We are looking at the RNEP and will have it published shortly.
Finally, I am hoping that there will be an announcement shortly on the location of the Great British Railways headquarters.
My Lords, the state of our railways is a national embarrassment. Yet the withdrawal of this Bill is evidence that the Government are not prioritising them. Meanwhile, the tables of the Royal Gallery are littered with Bills that reflect the extremes of Conservative ideology and are of no practical use or value to ordinary, hard-pressed citizens. Will the Minister take the opportunity presented by a new Prime Minister this week to press the case again for the inclusion of this Bill in his new list of priorities? While she has his ear, will she press him to ensure that railway fares do not go up in line with inflation next year, as this would be a bitter blow to commuters?
My Lords, I cannot agree that those Bills are no good to anybody. I think that the Energy Prices Bill will be warmly welcomed by consumers across the country.
Some legislation is needed for rail reform. However, it should also be noted that we can deliver an enormous amount of what we have promised without legislation. These are things such as workforce reform, increasing competition within the system, improving the ticketing system, starting local partnerships, and, most importantly, the long-term strategy for rail. This will set out the 30-year vision that will be taken forward by Great British Railways. We are making good progress and will bring the legislation forward as parliamentary time allows.
(1 year, 10 months ago)
Lords ChamberTo ask His Majesty’s Government, further to the report by Fair Charge Driving Away from Fossil Fuels, published on 5 July, which found that if there were parity in purchase price and running cost, 100 per cent of drivers would choose electric rather than diesel or petrol cars, what steps they are taking to ensure that price parity is reached as soon as possible.
My Lords, while the upfront purchase price for electric vehicles remains higher than for their petrol or diesel equivalents, in many cases these vehicles are cheaper to own and run. Generous tax incentives are in place, which, alongside fuel and maintenance savings, reduce the total cost of ownership.
My Lords, the Fair Charge report highlighted the discrepancies in VAT for private and public EV charging. As energy prices rise, the discrepancy becomes even greater in real terms. There is a realistic danger that EVs will be seen as too expensive, although the Government, of course, get a greater income from tax as energy prices have risen. I realise it is difficult for the Minister to know what government policy is likely to be later this week, but will she undertake urgently to press whoever happens to be running the Treasury to reduce VAT on public charge points to 5%, in order to encourage EV take-up among all sections of society?
I am very happy to outline what government policy is. As the noble Baroness will know, and as is always the case when taxes are referred to, all taxes are kept under review. It should be stressed that the reduced VAT on domestic supply reduces bills for households by £5 billion a year. Most people do not charge their electric vehicles exclusively at public charge points. However, I accept that that discrepancy exists and, as I said, we keep taxes under review.
(1 year, 10 months ago)
Grand CommitteeMy Lords, I will speak to Amendment 8, which is simply an elaboration of the points that my noble friend Lord Berkeley has already made. The proposal here is to delete “the harbour” and insert “a harbour”. What lies behind that is catching those vessels that might do what I understand is referred to as harbour-hopping, where, in order to decrease the frequency with which they are recorded in any particular port, they go to a nearby port every so often to reduce the number.
My second point, which my noble friend Lord Berkeley and I have addressed, and my noble friend Lord Tunnicliffe has a slight variant on, is whether 120 occasions a year is far too high. It will exclude a lot of vessels that do weekly ferrying, which we would want to catch. If I may speak for my noble friend Lord Berkeley as well as myself, the reason we think it should be 50 is that, quite often, a ship may be serviced for a couple of weeks a year and it may not therefore achieve the full 52 occasions, even if it is running a weekly service.
My Lords, I want to clarify what the debate has thrown up so far. I fear that the Government are guilty of mission creep on this, which may have occurred with the very best of intentions, but there is certainly confusion as a result. As outlined by the noble Lord, Lord Berkeley, a move from 120 calls to 52 would inadvertently bring in a much broader range of shipping.
The noble Lord, Lord Hendy, just touched on another issue that needs clarity, and I have three specific questions that it is important that the Minister answers clearly. If she cannot do that at this moment, we would all appreciate correspondence on this. First, on the move from “ships” to “services”, can we have absolute clarity on what a service is? How would it be covered if, for example, there is a refitting such as that just referred to by the noble Lord, Lord Hendy? I anticipate all sorts of ways in which companies will seek to avoid inclusion through the way they configure services, so we need clarity on the definition of “services”.
Secondly, in summing up the first group of amendments, the Minister again used the phrase
“close ties to the UK”.
This is at the core of the whole thing. Can we have a definition that will stand up in a court of law of exactly what the Government mean by that?
Thirdly, I am sure we would all be grateful if the Minister could address the concerns of the DPRRC, to which my noble friend Lady Scott referred.
My Lords, I apologise; I have only just arrived, because I was detained elsewhere. I want to pick up on the point of the noble Lord, Lord Berkeley, about ferries. Ferries have been referred to, so maybe the Minister can clarify this later. I need to read the Bill again, line by line, but nowhere does it refer to “ferries”. It refers to “ships”. In the current energy crisis, for example, you may have a service of tankers of diesel fuel coming in with the required regularity. They might be caught by the Bill, because of the frequency with which they call on the UK as part of their service, but they are certainly not ferries. The Minister will confirm this later, but I do not believe we should use the language of “ferries”, when we are in fact talking about ships.
My Lords, I am again grateful to noble Lords for sharing their thoughts on this group of amendments. The thrust of the amendments in this group is very much around probing the scope of the Bill in terms of the services and ships to which it applies. As the noble Lord, Lord Tunnicliffe, noted, I will write. I do not think he was implying that my oral replies are not carefully thought through—maybe he was—but the letter will be perfect. Noble Lords should await further information in the letter, but I will try to cover as many points as I can.
I look at this borderline, grey-area conversation that noble Lords are having, and at the back of my mind I keep thinking, “What sort of an operator are you if you will go to a different port in order to drop your frequency down to be just under or over any particular target so that you don’t have to pay your seafarers the national minimum wage equivalent in UK waters?”
Well, because of that we will come on to why it is so important that the Bill refers to services rather than ships; otherwise, quite frankly, you could do that, and all sorts of very interesting things. I will try to go through some of the amendments and think carefully about how we make sure that we reassure operators and trade associations about what a service is. Indeed, there is a question about what a harbour is. The good thing is that we have a definition of a harbour, in the Harbours Act 1964 and the Harbours Act (Northern Ireland) 1970. That is what a harbour is, so I will put that one to bed.
Of course, the noble Lord has much more experience aboard such vessels than me, and I will take his word about some of the conditions on ships. Indeed, we heard during Covid how what happened on ships was very distressing for some people and extremely disappointing. I take all of that on board but I go back to: I cannot fix the entire world today but what I can fix is what is before the Committee in terms of the scope of this Bill.
The noble Lord, Lord Berkeley, mentioned specific types of services, such as coasters—which apparently take English clay around the coast, et cetera—and cruise ships. This is why it is so important to do this based on the service and its frequency rather than what it is actually providing. Coasters might be caught but if they are doing only domestic work they will be caught anyway because they are in UK waters and they are caught if it is port to port within the UK, but if they are doing a run frequently—say three times a week across to France—they will be caught, and I do not see why they should not be. I have no problem with that. Let us catch them. The people working on such vessels most likely have close ties to the UK and those vessels clearly have close ties to the UK because they dock here so frequently, so it does not matter where the ship is flagged or where the employment contract is. It is the fact that it spends a lot of its time in UK waters and enters UK ports on a very frequent basis. This frequency is important.
I note that two noble Lords have tabled amendments to go down to 52 occasions from 120. We looked at this very carefully during the consultation. My current view—and of course we are going to go away and consider this—is that 52 would catch too many vessels that we did not intend to catch and would be overreach in terms of the current settlement with the international shipping community. Again, we might be entering the sort of territory where the unintended consequences would be quite significant. I go back to the fact that this is a narrow Bill, it has a narrow scope, it does a very specific thing, and I would like it to do that specific thing on services which dock here 120 times a year.
Amendments 7 and 8 refer to this issue of “a harbour”, “the harbour” or “harbours”. We have established what “a harbour” is—so that is done—and we are very clear that the service is to a particular harbour. It is not to “a harbour” within the UK because Calais-Dover is not the same as a service running from Calais to any other harbour. The route is specified. It is the same route, not using the same ships, high frequency to a specific harbour. We think that is quite clear.
The noble Baroness, Lady Randerson, asked for a definition of “close ties”. I do not think I will ever be able to get to that but we have been able to define what a “service” is. Those services have close ties. It is descriptive language to define what these services are, but it is merely that. It is not something that will be legally defined and taken forward.
Do I understand, then, that the Government are unable or unwilling to define “close ties”?
The Government are very willing to define what these services are and, by implication, those have close ties to the UK. I can probably come up with lots of other clever descriptors to define these sorts of services. A large container ship stopping at the UK once a month does not have close ties to the UK; it is an international container ship, shipping around wheat or whatever it might be shipping. We can think of some other language, but once we have nailed what the service is, where it goes, how frequently it goes and which ships it utilises, then we have defined it. That is it, we are done. That is the definition that works legally because it has hard boundaries and can be fairly well defined, I think.
I absolutely appreciate that Amendment 27 is a probing amendment. We intend to provide guidance to harbour authorities, and that guidance will be consulted on. We can define what the service is but we need to help harbour authorities to fully understand those definitions. We will consult with the industry to make sure that there is absolute clarity. I would not say that the guidance should be put on a statutory footing; that is not entirely necessary in this particular case.
I turn finally to Amendment 37. I have of course seen the DPRRC report. It was published only a few days ago so I beg your Lordships’ leave just to say that, at this stage, we are considering what is in it. We are taking it very seriously; I reassure the noble Lord, Lord Tunnicliffe, that we take all DPRRC reports very seriously. We will publish our response to it before Report so noble Lords will have the opportunity to peruse that. I have no doubt that we will be able to have further conversations about that.
My Lords, I speak briefly to oppose Clauses 4 and 9 standing part of the Bill. Again, this goes back to what I spoke about earlier in terms of the legality of this legislation. It comes from the International Chamber of Shipping, which says:
“The vessel declaration requirements envisaged in the Bill … contravene the international frameworks and principles governing seafarers’ remuneration, which confer jurisdiction to the flag State. Notwithstanding the fact that NMWe”—
national minimum wage—
“payments and declarations would be limited to work done while a ship is in UK waters / ports (to address ‘extraterritorial reach’ concerns), this would still amount to an excessive claim to prescriptive jurisdiction, contrary to the fundamental principle of flag State jurisdiction, i.e., that a vessel’s flag State has overall responsibility for the employment conditions aboard a vessel. UNCLOS Article 94 (Duties of the flag State), specifies that the flag State shall ‘exercise its jurisdiction and control in administrative, technical and social matters over ships flying its flag’. It would further be contrary to the universal norm that port States will not regulate the ‘internal affairs’ or ‘internal economy’ of visiting foreign vessels (a principle that includes employment conditions).”
This may seem a long way away from ships going between the UK and close waters, but it indicates that what vessels from further afield—which may or may not get tied up in this—will do may be something that the UK finds unpalatable. In other words, if they start doing this to show up the UK as not complying with the UNCLOS requirements, it could be difficult. Again, I would be grateful if the Minister could write to me on this; indeed, we may need a meeting with our legal experts to see how important this is and what can be done about it.
My Lords, we do not have any amendments in this group, but I take this opportunity simply to make the point that we share the concern of those noble Lords who do have amendments in this group. These are important issues that reflect the reasonable fear that employers could use tactics that circumvent the measures in the Bill.
One thing that has been speculated on is that seafarers could be paid at a lower rate when they are outside UK waters to compensate for the higher rate that they must be paid in UK waters. There are things about which the Government can do nothing, but it is really important that the things that can be got right are looked at carefully to ensure that they are absolutely on the nail. I point in particular to Amendment 26 in the name of the noble Lord, Lord Tunnicliffe, to emphasise the importance of monitoring the effectiveness of this legislation and engaging with the trade unions. P&O’s tactics—the audacity with which they were announced surprised everyone, I think—exposed the weakness of the current safeguards. However, if the Government attempt to plug the loophole but fail to do so effectively, I fear that P&O would not be alone and other owners would attempt to do something similar—perhaps not as blatantly as the way in which P&O did it, but it certainly could undermine legislation further if the Government’s efforts here are not fully effective.
My Lords, I will speak on the two amendments in my name in this group, but I commend the other amendments to the Minister’s study, because it is important to achieve clarity on some of these issues.
On Amendment 25, my original involvement with these sorts of issues was in an analogous industry—transport—where I was a shop steward and subsequently an industrial relations manager. In the crew situation, issues with roster patterns and pensions are every bit as important as wages. The way that rosters are handled in particular can have a serious impact on remuneration and a massive impact on quality of life. It is important that there is a proper impact report on these issues, ideally within 90 days.
This leads on to Amendment 26, because this and other issues would be much enhanced if we could develop a proper relationship with the trade unions. The importance of this from the point of view of the trade union movement is exemplified by an appeal—for want of a better term—to the International Labour Organization from the general secretary of Nautilus; the general secretary of the RMT, Mick Lynch; the general secretary of the TUC, Frances O’Grady; the acting general secretary of the European Transport Workers’ Federation; the general secretary of the International Transport Workers’ Federation; and the general secretary of the International Trade Union Confederation. I read those out to emphasise that this is a heavy coalition of the trade union movement. Their appeal is set out in a document that I hope the Minister has seen, which centres on what happened at P&O. It helps one to understand how broad detailing and managing the employment conditions of crew is and how important it is to get a hold of this to make sure that crews are properly looked after, both in their remuneration and conditions of work. I therefore commend Amendment 26 to the Minister.
My Lords, the case for the Secretary of State being responsible for surcharges was very well made by the noble Baroness, Lady Scott, and the noble Lord, Lord Berkeley. To summarise, it sits much better with the Secretary of State. We have a situation in which the port authority is normally providing a service to the owner; the owner-operator is therefore a customer. To be, in effect, levying a fine on your customer is an unnatural state of affairs. In the interests of transparency and consistency, we should have one entity in the land deciding these things. They can vary from port to port and there may be special circumstances, but it is desirable to have one authority making the surcharge across the land.
My Lords, I start by thanking the noble Lords, Lord Berkeley and Lord Mountevans, for joining us on some of these amendments. I will briefly underline some of the points that my noble friend and those noble Lords made.
The complexity of expecting ports to do what is essentially the Government’s job for them will undermine the effectiveness of this legislation. Think about the use of the term “surcharge”. You pay a surcharge when you use a service voluntarily; it has no implication of illegality. If, however, a company finds itself paying a surcharge according to the rubric of this Bill when it becomes legislation, it will have broken the law. In other words, it is paying a surcharge as a fine—and a fine should be called a fine. I urge the Minister to look again at the phraseology here. Let us be clear: if companies are going to be fined, let us call it a fine.
The other issue is the complexity of expecting ports to deny access to the harbour. The international law on denying access to a harbour is complex and it would be difficult for them to do so. They would have to be absolutely sure that there is no question of danger to life. As a result, they will err on the side of caution and it will not happen. As both the noble Lord, Lord Berkeley, and my noble friend Lady Scott said, detaining ships is a normal course of events. It is not done frequently but it is done, and for safety reasons as well. I urge the Government to have the courage of their convictions and give these powers to the Secretary of State, because they are much more appropriately those of the Secretary of State.
It is not as if the Government do not want to be involved, because Clause 11 gives them wide-ranging powers of direction. It essentially gives them control, so the Government want that control behind the scenes but do not have the courage to put their name on the notices. That is a strange approach, so I urge them to rethink the way this is to be done. The impact would be that well-meaning and very important legislation could be undermined. At the same time, it would put our ports in a difficult position, make their relationship with ship owners more complex and create for them, as other noble Lords said, a conflict of interest.
My Lords, I have a couple of amendments in this group. The first is Amendment 12, which would create a minimum fine of £1 million. Whether that is the right figure, I am not sure, but the real concern is about the size of the owners; I believe that P&O’s owners have made $721 million in the past six months. There is a real risk that, if businesses of this size take an almost doctrinal opposition to the measure—the P&O debacle showed such a doctrinal opposition to reasonable conditions on board ships—a fine that is not substantial becomes just a cost of business. That would be regrettable; I am sure that it is not the Government’s intention but I would value some feedback from the Minister. How does one assure oneself that the fines are sufficiently large to impinge on the decision-making of these companies? There is a concern that good companies do the right thing anyway. The trouble is that we have a very real example in the recent past of one of these companies not doing the right thing; that is what provoked this legislation.
The second area concerns naming the inspector or inspectors. I tabled my amendment here to draw out how the world will know that this is happening. Organisations that have either a principal inspector or someone like that as a named individual are so much clearer as to who will be held to account for appropriate levels of activity. As a minimum, I hope that the Minister will be able to give me a feel for how quickly inspectors will be appointed and how many of them there will be, as well as assure us that there is adequate inspection capability. We know that this whole issue of minimum wage enforcement is pretty difficult in a land situation; at sea, it will be much more difficult to get the details to know whether an offence or the wrong charge has been committed.
With that, I come to the amendments in the name of the noble Baroness, Lady Scott, regarding the Secretary of State having the authority to determine the tariff, which will really be a fine. I think that harbour authorities are about harbours. I can see why they perhaps must be drawn in at one level but when it comes to becoming a policeman, in essence, that is what the state should be doing. I agree with the general thrust that this should be the Secretary of State’s responsibility.
Finally, I hope that the Government will give careful consideration to the amendments addressing the DPRRC’s concerns.
(1 year, 10 months ago)
Grand CommitteeMy Lords, I am grateful to the Minister for describing these regulations. As she said, under chapter X of the IMO’s SOLAS convention the high-speed craft codes are regularly updated to incorporate advances in safety technology. That is the reason for these regulations.
The changes the Minister outlined are acceptable to the UK shipping industry, as evidenced by the response to the consultation process. The addition of the ambulatory reference provision to keep UK law aligned with IMO obligations is also welcome. As she said, we hope it will speed up the process as this is just another of those maritime SIs that we should have discussed some time ago.
I understand that many of the changes proposed have already been adopted by UK owners, especially by those trading internationally, because it is in their own interests to do so. I believe that some of them would like to have more advance warning of what new changes are being discussed at the IMO so that they have an idea of what might come through the pipeline.
As the Minister said, these high-speed craft come in many shapes and sizes. I have been slightly mystified as to what the size parameters are, because the only thing I have found relates to cubic metres, and I cannot relate cubic metres to a vessel. She mentioned Thames Clippers, so it obviously comes down to a relatively small craft. An upper limit does not really apply, because these craft do not get to enormous sizes.
Another area for high-speed craft, and one that is rapidly increasing, is in the offshore service sector. I looked this up to see what was going on, and I understand that there is already a High-Speed Offshore Service Craft Code. Presumably, those sorts of craft are not included in these regulations. If the Minister and her advisers could help me with a parameter for these regulations, in relation to the vessels they cover, I would be most grateful.
In the offshore sector there is enormously interesting development going on, with the latest things being all-electric craft that fly on foils. Seen from ahead, you wonder how on earth they manage to go about their business, when the ship is high out of the water and there is just a single foil going down into the water. These are exciting prospects and ones that I hope will lead to great commercial success in future. In the mean- time, I welcome the regulations.
My Lords, it is good to see another small step on the long path facing the Department for Transport, as it tries to catch up with the backlog of maritime legislation waiting to be adopted into UK law. The legendary Secondary Legislation Scrutiny Committee has been watching this process and has produced three reports on this problem over three different Sessions of this House. The impact of this backlog is that the UK is failing, in effect, to live up to its international obligations, which is a matter of concern to many of us—and I think is undoubtedly a matter of concern to the Minister, to judge by what she has said before. Some of her colleagues are not that concerned about international obligations, but I know that she is.
This current lapse seems to be a potential matter of life and death, because these regulations relate to chapter X of the International Convention for the Safety of Life at Sea 1974. Since they also specifically refer to high-speed craft, I assume that there is potential for considerable risk.
I have read the legislation and the Explanatory Memorandum, and I remain a bit confused as to exactly what is covered, because the Explanatory Memorandum specifically refers to
“fire-retardant aspects of construction and fire detection and extinction devices, life-saving appliances (including life-rafts and lifejackets), navigational and stability systems”.
Paragraph 13.3 of the EM refers to these as having
“key implications for safe operation”
and it seems obvious that they do, because they are an area where technical improvements in design and manufacture will have increased the effectiveness of that equipment. But the legislation also talks about people being drunk at sea, obeying orders to leave the ship and so on, so I would welcome clarity from the Minister as to exactly which of these sets of issues we are very late in implementing, if I can put it that way. Several different dates are fired at us in the Explanatory Memorandum. How late are the Government in implementing this? Exactly how much of this is gravely overdue?
When we have discussed other delayed maritime legislation, the Minister has attempted to reassure us that, for various reasons, we have been in effect carrying out the legislation anyway. The noble Lord has just referred to the fact that a craft operating internationally would have had to do that, but those operating just domestically would effectively have been exempt. It seems to me that if we are referring to changes made to chapter X in 2014, we are eight years behind schedule. Have I understood this right? Can the Minister tell us whether there have been any incidents or accidents where the lack of this legislation has been a factor?
The delay in bringing these new powers definitely seems to have been one of the more reprehensible issues that have come from the delay in so much of this maritime legislation, and therefore I am extremely pleased to see that the department is continuing to try to catch up on this issue.
(1 year, 10 months ago)
Lords ChamberI will allow that it may involve some financial support.
My Lords, I hope I can persuade the Minister to go further than that gentle reply. It appears that the Government funded the Unboxed festival—something visited by only around 250,000 people and designated a “festival of Brexit” by Jacob Rees-Mogg—to the tune of £126 million. I think that the festival we are talking about today will be a lot more popular and resonate a great deal more with the public. So can the Minister give us a clearer indication of the size of the Government’s intended financial support?
Unfortunately, I am unable to give a clearer indication of the size of any government financial support, principally because the plans are still in development. We know that Sir Peter Hendy is working some up, but of course there will be other plans coming through from DCMS and DfT. As those plans come together, of course the Government will consider financial support.
(1 year, 10 months ago)
Grand CommitteeMy Lords, these regulations relate to the introduction of E10 petrol in Northern Ireland. Regulations relating to the introduction of E10 petrol in Great Britain were considered and agreed to by your Lordships’ House in 2021, and I should note that this introduction has been successful, with no significant concerns raised.
E10 petrol contains up to 10% of renewable ethanol, double the amount blended into E5 petrol. Increasing the renewable ethanol content in standard grade petrol across the UK can reduce annual carbon dioxide emissions by 750,000 tonnes a year, helping us to meet our ambitious climate targets. The regulations’ purpose is to introduce E10 as standard petrol in Northern Ireland, while ensuring that the current E5 grade remains available for those who need it. This will bring petrol grades in Northern Ireland in line with those in Great Britain, where E10 was introduced in September 2021. We have completed the notification procedures required under the Northern Ireland protocol, meaning that an introduction in Northern Ireland is now possible.
E10 allows us to cut carbon emissions from cars, motorbikes and other petrol-powered equipment in use on our roads today. This is done by simply increasing the amount of renewable fuel blended into standard petrol. It is one of very few measures available to us which has an immediate impact. E10 is a proven fuel that has been successfully introduced in Great Britain and many nations around the world to deliver carbon savings. Following the introduction of E10 in Great Britain last year, these regulations ensure that consumers are provided with a consistent petrol grade across the UK. It is worth noting that the Republic of Ireland intends to introduce E10 in January 2023.
The UK has a valuable bioethanol industry, which has already benefited from the increased demand created by the introduction of E10 in Great Britain. Following our policy announcement to introduce E10 across the UK, one large facility operator announced that it would recommence production. The domestic bioethanol industry supports high-skilled jobs and improves our energy independence, delivering on a range of government priorities such as growth and energy security.
These production facilities also play an important role in their local economy, employing hundreds of skilled workers directly and supporting thousands of jobs in the wider community. That community includes the agricultural sector, with locally grown, low-grade feed wheat used to produce ethanol. Furthermore, valuable co-products of bioethanol, such as high-protein animal feed and stored carbon dioxide used by the food industry, reduce our reliance on imports, thus increasing our domestic resilience. It is vital to support these industries as we grow our economy and progress towards net zero by 2050.
Introducing E10 is part of a wider set of measures to encourage renewable fuels. Overall, renewable fuel blending is incentivised through the renewable transport fuel obligation, or RTFO, obligating larger fuel suppliers to supply renewable fuels. However, the RTFO does not prescribe how to meet low-carbon fuel supply targets, nor does it require specific fuel blends; it is market driven. It is therefore necessary to introduce the obligation to supply specific fuel blends to remove market barriers. This has been proven to be successful by the introduction of first E5 and then E10 petrol in the UK, as well as B7 diesel.
We have opted for introduction in Northern Ireland in November, as fuel suppliers and retailers have made it clear that an introduction at the same time as or shortly after the change from summer to winter fuel specification is the most efficient way to introduce E10 into the fuel system.
Over 95% of petrol-powered vehicles on the road are compatible with E10 petrol, and this figure is increasing all the time. All new cars manufactured since 2011 are compatible with E10 petrol, and most cars and motorcycles manufactured since the late 1990s are also approved by manufacturers to use E10. However, some older vehicles are not cleared to use E10. That is why this instrument includes provisions to keep the current E5 petrol, which contains up to 5% ethanol, available in high-octane “super” grade.
The same set of derogations and exceptions that apply to the supply of E5 and E10 in Great Britain in case of supply issues or infrastructure constraints will apply in Northern Ireland as well. This means that very small filling stations will be exempt from having to sell E10. Additionally, if supplying petrol with the required minimum ethanol content is not feasible for short periods of time, say due to factors such as technical or supply issues, the Secretary of State for Transport can grant refineries or blending facilities temporary derogations to ensure that fuel supply is not interrupted.
We have launched a comprehensive communications campaign involving local radio, roadside posters, social media and information at forecourts. This informs motorists in Northern Ireland of the changes that will be made to petrol this autumn—subject, of course, to the approval of this instrument—and directs vehicle owners to GOV.UK, where there is an online compatibility checker so that people can see whether their car is compatible.
In proposing this statutory instrument, my department has carefully considered a balance of interests, as we did when we introduced E10 petrol in Great Britain. I beg to move.
My Lords, I thank the Minister for her excellent introduction. Obviously, we welcome this statutory instrument. However, I want to use this opportunity to register my concern at the continued lack of an Executive in Northern Ireland. That is an issue that goes well beyond this. The lack of the Executive serves the people of Northern Ireland very badly indeed, condemning them to the slow lane on so many important issues. There is an example in this SI of how they are disadvantaged.
Paragraph 12.6 of the Explanatory Memorandum makes clear that the “added complexity” of supplying 95 octane E5 grade fuel to Northern Ireland while the rest of the UK has moved on to E10 grade has, not surprisingly, meant additional costs to producers. It goes on to make it clear that producers have had to provide
“separate production processes and storage.”
Paragraph 12.3 says that the costs of this have
“already been passed on to motorists in Northern Ireland”,
even though they have not been enjoying the advantages of it. They are paying the price without getting the benefits. Happily, however, this SI brings Northern Ireland in line with the rest of the UK. Presumably the SI includes any useful lessons learned from the Great Britain implementation. Maybe the Minister could tell us whether any specific issues have been incorporated as a result of this.
I have a few questions. The Minister has answered the first one; I was going to refer to the tight timescale. I see that the Government have anticipated that and have launched their information and awareness-raising campaign. There are older vehicles that are incompatible, of course, and there will continue to be supplies of the old grade of fuel for this reason. Classic cars might be the main reason for that, but petrol is not used just for cars. Indeed, the SI refers to its use for equipment. I declare an interest as the owner of what might politely be described as a classic petrol lawnmower. Does the public information campaign cover equipment in general—not just lawnmowers but other equipment—and not just cars? Putting the wrong petrol in can be quite disastrous.
These regulations impose requirements on petrol filling stations to supply certain types of fuel. They impose additional responsibilities on those filling stations, so I use this opportunity to ask the Minister whether the Government will give urgent consideration to requiring them also to provide electric vehicle charging points. They are beginning to do so on certain rare occasions in Great Britain. The faster this happens, the greater we can all reap the environmental advantages of electric vehicles. EVs now encompass 16% of the new car market. Petrol stations are losing their market relatively fast and need to adapt. I think an imposition—with a timescale, of course—would be very useful in ensuring that we make the transition as soon as possible.
Paragraph 7.12 refers to fuel terminals still
“unable to blend … ethanol into their petrol”
and gives them at least two years’ exemption. I am concerned that these still exist. We have known for a long time that this change was coming, so I thought providers would have adapted by now. Can the Minister tell us what percentage of terminals this applies to? Is it just one or two? I notice that apparently there are none identified in Northern Ireland. Are we talking about a big section of the market in the UK, or just one or two outliers?
Finally, the documentation states that most petrol sold in Northern Ireland—which itself represents 3.5% of the total UK market—comes from suppliers who also supply the rest of the UK. I assume that some of the petrol sold in Northern Ireland comes over the border from the Republic, and I would be interested to know what percentage. Are the rules and regulations that now apply in the Republic identical to those being imposed on Northern Ireland, or is there some variation at some point? Obviously, this would have implications in terms of the protocol as well as a practical implication for motorists. Having put forward those questions, I am very pleased to see this measure before us.
(1 year, 12 months ago)
Lords ChamberI absolutely agree that there is considerable passenger outrage, and rightly so, but this is not an issue that can be solved quickly. It is a twofold problem. On the first level, there is a backlog of training due to Covid. Training simply had to stop during that time. To train a train driver takes two years, and rightly so, because it is a safety-critical environment; we need to make sure that our train drivers drive our trains safely. However, that means that there is a backlog in training which will take a while to resolve. With the slightly reduced number of services, that could be coped with. As I said in the Answer, this problem stems from the unprecedented, immediate and near-total cessation of drivers volunteering for rest-day working. Do I think that operators should need to rely on rest-day working? No, I do not. We should run a modern, seven-day railway, and I hope that the unions will agree.
My Lords, only last week, funding for Transport for London was made dependent on it continuing to work to introduce driverless trains, so the Government are clearly content to make funding dependent on action. What conditions were imposed on Avanti and other train operators in relation to maintaining frequency of services? Is Avanti in contravention of that agreement? As the Government’s response makes clear, reliance on rest-day working is the norm across all operators. Clearly, this is no longer viable.
The Government are now directly in charge of all this. Let us hope that the new Secretary of State will agree to meet the unions and get involved, because the Government are directly responsible. Can the Minister tell us what initiatives and targets the Government are setting to ensure that all train operators recruit and train more drivers? In particular, what are they doing to increase the percentage of female drivers? Across the rail industry, the number of women train drivers is still far too low. There is absolutely no reason why a woman cannot drive a train.
My goodness, on that last point, I completely agree with the noble Baroness, although I have had a go in a simulator and was not very good at it.
I agree that recruitment of train drivers is essential. The average age of a train driver is 51. The average retirement age of a train driver is 59. We must get some youngsters and a more diverse group of people into driving trains, because that is the future of a modern railway service that operates purely and solely for the benefit of passengers and freight, which we are very much focused on.
Turning to how we hold the train operating companies to account, I am sure that all noble Lords will have read the ERMAs, which are published. In those agreements are the criteria that we set out for the train operating companies to meet various standards in order for them to receive any performance fees. The noble Lord mentioned a performance fee of some £4 million. That relates to a period donkey’s years ago, way before the period that we are talking about. For example, in the period from September 2020 to March 2021, Avanti received no fee at all for customer experience.
(2 years, 1 month ago)
Grand CommitteeMy Lords, I thank my noble friend for bringing forward the regulations before us, which I broadly support and welcome. I have a number of questions relating directly to the instrument and to the current situation. I understand that when a passenger buys an airline ticket, the simple measure of paying airport tax shows the airport and the airlines the number of people travelling on that particular day—so I am confused about why the numbers travelling seem to come as a complete surprise. I declare an interest: when I met and married my husband, he was an airline man and worked for a number of years with Delta Air Lines, Singapore Airlines and BOAC. As part of his responsibilities he was also director of Gatwick Handling.
Is one of the problems that airports and airlines are not themselves responsible for the ground handling operations, so that there is no joined-up operation from the moment that a passenger arrives at the airport and checks in their luggage? One word of advice, having married someone in the airline business, is to travel with hand luggage only so that, if you are offloaded, leaving the aircraft is a much simpler exercise. But I understand that for families and people going away for a long period that is not possible.
Do the Government have any plans to review the fact that ground handling operators are separate companies that are perhaps one step removed from the companies that passengers are paying for their services? I know that the airlines, airports and the Government are saying that they are doing all they possibly can to ensure a better experience than what we have been seeing since the May bank holidays earlier this year, but there still seem to be issues. How long does it take to train and give security clearance in particular to those working airside? I accept that we must take that extremely seriously, because that is where we are most vulnerable to a breach of security.
I welcome this amnesty. I offer a word of sympathy to the airlines and airports, which have probably been the hardest hit, alongside the hospitality and retail sectors. People were laid off. Willie Walsh said this week that, at the height of Covid, during the lockdown, only 2% of flights were operating. They had to grasp that situation and, given their ongoing overhead costs, save money as best they could, and obviously a lot of people who were in those positions have found work elsewhere.
Heathrow has asked for a moratorium on ticket sales for departures before 12 September. I pay tribute here to Simon Calder of the Independent, an expert in this field who does an enormous amount of work and is very helpful in advising passengers. He said that, after that announcement was made, when he tried to buy tickets—possibly yesterday—he found that a number of airlines were still selling tickets for before the magic date of 12 September. If that is the case, what comeback will there be? Those passengers may or may not read the newspapers and may or may not be aware of the issue. I have a further question on the impact of the amnesty. I want to establish whether, if an airline cedes a slot, it will recover the slot on the due date and there will be no economic loss to it.
I am one of the lucky passengers. I travelled during the May half-term. Although Ryanair may not be everyone’s favourite airline, I understand that it has the best figures for the fewest cancellations and the reliability and promptness of its flights. That week alone, it was estimated that between 2% and 4% of total flights were cancelled within a week of departure, compared with the normal rate of around 1%. Some 200,000 consumers were impacted by short-notice cancellations, as we are told in paragraph 7.4 of the Explanatory Note. It is not acceptable that 2.3 million passengers have been affected by delayed flights—approximately 43% of passengers arriving at or departing from UK airports. Given the importance of airports to the local economy in which they are based and to the national economy, that is obviously unacceptable.
Finally, paragraph 7.5 says that there will be 14 days’ notice when slots are ceded and that airlines are required to notify passengers of the cancellation of each flight at least 14 days before the date of the flight. Can my noble friend tell us what will happen if the airline fails to honour that commitment? It clearly is not happening. Anecdotally, a member of my family was caught up in this when they were actually in a taxi going to Heathrow airport. Having had a British Airways flight cancelled, she was then reallocated an EasyJet flight. When she was an hour from the airport, she was informed that that flight also was cancelled. So what redress will there be and what compensation will be given?
This is a deeply unfortunate situation in a major part of the economy, which is trying to do its level best to emerge as best it can from Covid times. I would like to think that one solution might be to consider ground handling operations being more hands-on with those closest to them. However, I hope my noble friend will give me the reassurance I am seeking for those passengers who have had less than 14 days’ notice, and, importantly, tell me how the airlines are required to inform passengers of a cancellation.
My Lords, I thank the Minister for her explanation, but I have to comment that there is something surreal about this SI. It talks about a lack of demand at a time when almost all airports, especially our largest—Heathrow and Gatwick, and one or two others—are struggling to cope.
The Government announced a grand plan of 22 points—this is one of them—and the Explanatory Memorandum talks of
“intervention to facilitate advance planning for a robust and reliable flight schedule.”
There is certainly a long way to go to achieve that, because it does not happen at the moment.
(2 years, 1 month ago)
Lords ChamberThe noble Lord has managed to combine many elements into one thing. I can reassure him that the RNEP document will be published shortly, which will reassure him about the Government’s commitment to investing in our railways.
My Lords, in November, the Government decided to terminate the eastern leg of HS2 in the Midlands rather than at Leeds, as originally promised. When they were criticised for abandoning their policy on the grounds that it would affect levelling up, the Government promised £100 million to look at alternative ways to run HS2 trains to Leeds. However, eight months on, absolutely nothing has happened in terms of even scoping this study. Is this yet another broken promise from this Government to the people of northern England?
Not at all. Work is of course well under way within the department as to how best to use the £100 million that we have set out to look at the options on the route to Leeds and to finally make some progress on a mass transit system for Leeds. However, one of the key things about the Government’s decision for our plans for high-speed rail in the future is to make sure that we get as close to city centres as possible. In the older plans, it was far too often the case that the train never got anywhere close to the city centre but now places such as Derby and Nottingham will benefit.