Vehicle Emissions Trading Schemes (Amendment) Order 2024

Baroness Scott of Needham Market Excerpts

Tuesday 29th October 2024 Lords Chamber

[The Minister of State, Department for Transport (Lord Hendy of Richmond Hill) (Lab)]

My Lords, this Order in Council amends the Vehicle Emissions Trading Schemes Order 2023, which implements the zero-emission vehicle mandate and carbon dioxide emissions targets for new cars and vans with the purpose of facilitating the Northern Ireland Assembly’s decision that Northern Ireland should join the scheme and also makes technical updates. In doing so, the amendment brings Northern Ireland into alignment with the rest of the United Kingdom and represents an important milestone on the pathway for the United Kingdom to achieve 100% zero-emission new cars and vans by 2035 and net zero by 2050.

Domestic transport is the largest contributor of greenhouse gas emissions, accounting for nearly 28% of all emissions in the UK. Analysis of the vehicle emissions trading schemes projects emissions reductions of approximately 411 million tonnes of carbon dioxide equivalents out to 2050, with a further 9 million should Northern Ireland join. This is the single largest carbon-saving measure in government and is of singular importance if we are to meet our climate commitments.

These measures are also critical for kick-starting economic growth not just in Northern Ireland but across the UK by giving businesses the certainty they need to invest in the transition to zero-emission vehicles. Some £6 billion of private investment has already been committed by the charging infrastructure industry, and the Government are working closely with the entire vehicle industry to deliver a green future for one of the UK’s most important manufacturing sectors.

As noble Lords may recall from the debate in your Lordships’ House on the original instrument last year, the ZEV mandate sets headline targets for the registration of zero-emission cars and vans. This includes battery electric or hydrogen-powered cars and vans. It also sets carbon dioxide emissions targets requiring that vehicle manufacturers’ emissions get no worse on average than they were in 2021.

A variety of flexibilities is included in the legislation to ensure that every vehicle manufacturer has a viable pathway to meeting the targets during the first few years. For example, overcompliance against the carbon dioxide targets may be used against the ZEV targets, meaning that manufacturers that deliver carbon dioxide efficiencies can deliver fewer zero-emission vehicles than the headline ZEV target.

When this policy was originally consulted on, a remarkable 96% of respondents preferred UK-wide implementation. However, at the time that this legislation was laid in autumn 2023, it was possible for it to apply in Wales, England and Scotland only. This is because of a specific requirement in the power used to create the original legislation—paragraph 11 of Schedule 3 to the Climate Change Act 2008—which means that the order cannot apply unless the statutory instrument creating the schemes has been laid before and approved by affirmative resolution of the relevant devolved legislatures.

As the Northern Ireland Assembly was not sitting at the time the original order was laid in autumn 2023, it was unable to approve the legislation. Therefore, Northern Ireland could not join the schemes alongside Wales, Scotland and England. As an interim measure, Northern Ireland remained subject to the emissions regulations for new cars and vans that the rest of the UK was leaving behind. These regulations were themselves assimilated from European Union law following the UK’s withdrawal and functioned as average carbon dioxide emissions targets that tighten every five years.

Following the restoration of the Assembly in February 2024, John O’Dowd, the Minister for Infrastructure in the Northern Ireland Executive, wrote to the UK Government, the Scottish Government and the Welsh Government expressing his intention, subject to the approval of the Northern Irish Assembly, that Northern Ireland should join the schemes. This amendment was therefore drafted in close consultation with the devolved Governments. I am pleased to confirm that the Assembly approved this amendment and therefore Northern Ireland joined the schemes on 14 October this year. Senedd Cymru approved the amendment on 22 October, and the Scottish Parliament will be taking a vote in the next few days following the amendment’s successful passage through committee.

This legislation is an excellent example of all the Governments in the United Kingdom coming together to tackle a common challenge. I take this opportunity to thank Ministers and officials in the Department for Infrastructure in Northern Ireland, the Scottish Government and the Welsh Government for the exemplary fashion in which this process has been conducted.

The amendment has two purposes: first, to effect the inclusion of Northern Ireland in the schemes and, secondly, to make technical updates to the legislation. Part 1 of this amendment contains preliminary provisions establishing the territorial scope and that the instrument amends the Vehicle Emissions Trading Schemes Order 2023.

Part 2 contains a series of technical updates to correct minor errors and clarify drafting. The most salient of these are the update in Article 3 that clarifies that hydrogen fuel cell vehicles should be treated as zero-emission vehicles for the purpose of the scheme, the correction in Articles 5 and 7 of an error in the formula for determining the cap on the maximum amount of compliance that may be converted from the carbon dioxide target schemes to the zero-emission vehicles target schemes and the addition in Article 11 of additional measures to address a gap in enforcement provisions.

Part 3 amends the schemes to allow Northern Ireland to join. The changes themselves are relatively minimal as the original legislation was drafted to allow for the possibility of Northern Ireland joining, should the Assembly choose to do so.

Finally, Part 4 makes consequential amendments to assimilated EU law to sunset—“sunset” is a verb, apparently—the emissions regulations that currently apply in Northern Ireland and make consequential amendments to revoke now redundant law, preserve certain parts for legacy administration and amend certain regulations that still have utility. I am sorry about that verb.

I am pleased to say that the Secondary Legislation Scrutiny Committee and the Joint Committee on Statutory Instruments reported no concerns in respect of this instrument, and I thank members of both committees for their hard work.

It is important to note that the zero-emission vehicle targets and the carbon dioxide targets will be applied as a UK-wide average when Northern Ireland joins from January 2025. This means that Northern Ireland alone will not be required to meet the headline zero-emission vehicle target in 2025, which is 28%. The Northern Irish new car and van market is approximately 50,000 vehicles per year, compared with the UK car and van market of around 2.3 million, so it is approximately 2%. As such, while manufacturers will want to maximise their zero-emission vehicle sales in Northern Ireland, joining the schemes will not force vehicles into the market beyond the naturally growing demand.

While this is a technical amendment in nature, it represents a significant step forward in the journey to net zero for Northern Ireland and the whole of the United Kingdom. I beg to move.

[Baroness Scott of Needham Market (LD)]

My Lords, my noble friend Lady Randerson cannot be in her place this evening, so it has fallen to me to comment on this order. It is, as we have heard, an uncontroversial statutory instrument that very sensibly brings Northern Irish regulation into line. Therefore, from these Benches, we entirely support it.

As a former member of the Joint Committee on Statutory Instruments, it troubles me that a significant part of the instrument is the correction of errors. Although I shall in future refer to all my errors as technical adjustments, there is a serious point about quality control. I will say no more to spare somebody’s blushes, but it is concerning.

I have a couple of questions on the wider point. Sales of electric vehicles are much slower than was anticipated. The industry is saying that this is because of deferring the end of sales of new internal combustion engine vehicles to 2035. Have the current Government given any thought to reverting back to 2030? When can we expect the Government to complete the review of EV charging infrastructure? As the report from the environment committee pointed out, it is a major hindrance to people having confidence to buy EVs.

[Lord Berkeley (Lab)]

My Lords, I congratulate my noble friend on his short introduction to this draft order. It is 14 pages of gobbledygook, mostly caused by Brexit and the inability of legislation in Northern Ireland to keep up with the rest of the country. I am sure that will not go on in future. Will the Minister say whether it matters where the affected vehicles are manufactured or stabled? I can see that some people will try to take advantage of whatever benefits there are on one side or the other to move vehicles across the water or to somewhere else. The sooner we have one UK-wide standard for things like that, the better.

Vehicle Drivers (Certificates of Professional Competence) (Amendment) Regulations 2024

Baroness Scott of Needham Market Excerpts

Tuesday 29th October 2024 Lords Chamber

Every night thousands of lorry drivers still park up in lay-bys, away from fixed ablution facilities. As a result, in the morning they have to urinate in a plastic milk bottle or go into the bushes. Perhaps that is a more important reason why we cannot retain drivers in the industry. Can the Minister name any other industry where key employees are treated so disdainfully? Might this situation explain why there are so few lady lorry drivers in the industry? Will the Minister agree to write to me and give me his best estimate of how many HGV drivers are sleeping in their cabs overnight, away from fixed facilities? If he cannot, will he task Highways England with gathering that data, if necessary, by conducting a census?

[Baroness Scott of Needham Market (LD)]

My Lords, following the last two speeches, I can tell the House that no one has ever let me anywhere near a lorry. Nevertheless, we on these Benches very much support these measures, which strike the right balance between making sure that people are safe to be on the road and removing unnecessary bureaucracy. That will be helpful for drivers and for SMEs in particular, so we support that.

I would be interested to hear from the Minister what plans there are to keep the impact of these measures under review, particularly the move to e-learning. I am sure that is a sensible thing to do, but we will probably need some data just to make sure that there is no adverse impact; indeed, it may be beneficial.

I was not entirely clear from what the Minister said whether the certificate will be interoperable in Europe and with European standards. I am thinking particularly about drivers in Northern Ireland who cross the border into the Republic multiple times. I did not entirely understand what he had to say about that.

[Lord Moylan (Con)]

My Lords, I am grateful to the Minister for arranging a briefing with officials for me on this instrument, and indeed on the previous instrument, about which I should have made a similar remark.

This is a Brexit benefit; there is no doubt at all about that. It gives us the chance to set standards and a training regime for our own HGV drivers to match the needs of our economy and our workforce. That brings me—if I may anticipate the Minister—to the question asked by the noble Baroness, Lady Scott of Needham Market. My understanding is that this is a domestic certificate that will operate in the whole of the UK, including Northern Ireland, but it will not of itself give any right for the driver to operate on the continent of Europe. For that there will remain the international certificate and the training regime, which will be compliant with European standards. This is wholly to be welcomed as allowing us to be more flexible and responsive.

Nobody has yet mentioned the question of safety. If the Minister says to the House that he believes this regime will result in a level of competence that will not compromise safety in itself, I am perfectly happy to accept that, but the point needs to be raised because safety in the driving of HGVs is a very important factor.

I feel very inadequate in following the speech of my noble friend Lord Attlee. It made me wonder how easy it is for an HGV driver to gain a life peerage. What a pity it is that the vandalism of the House of Lords (Hereditary Peers) Bill would remove the only one we actually have. However, we have no objections to the instrument.

Passenger Railway Services (Public Ownership) Bill

Baroness Scott of Needham Market Excerpts

Committee stage
Wednesday 23rd October 2024 Lords Chamber

[Baroness Scott of Needham Market (LD)]

My Lords, I would like to say that it is a pleasure to follow the two noble Baronesses but actually it is not. It makes me so angry that, week after week, they come to this House and tell us about the problems they have. When they do that they are telling us about not just their problems but the problems being encountered by tens of thousands of people, day in, day out. My Amendment 39 is about the passenger standards authority. If anything demonstrates why we need a passenger standards authority, it is the experience that has just been outlined.

The passenger standards authority is part of a package that will come later and is not part of the Bill, but I want to raise it here because passenger standards are the reason for the Bill and why we are here. As we have been hearing over the past week or so, a combination of fragmentation within the industry, poor tendering and inadequate enforcement has led us to the situation that we are in now, but it seems to me that there is something about an organisational culture that is the complete reverse of being passenger-focused.

One of the problems we are facing is that the way that we measure the performance of train operating companies is legalistic and algorithmic; so on one side of it, you are all right and no action will be taken, but step a little further and action will be taken. For passengers, that feels arbitrary. I would like to hear from the Minister how the passenger standards authority is going to work. How will it hold the operator to account in a way that so demonstrably has not been done in the past? Will it be taking a similar, very measured approach, or can it really get into the nitty-gritty of what makes passenger journeys work?

Of course, that includes punctuality, reliability, ticketing and accessibility, but there is a bunch of other things, as we have heard from noble Lords, such as the provision of consistent, understandable information; trains that are clean and properly staffed and on which people feel safe; some sort of functioning wifi; and the ability to get a cup of tea on a long journey. These things are all part of the passenger experience and should not be that difficult.

Is the passenger standards authority going to have the ability to represent passengers right across the piece? Will it be genuinely about driving improvement, not just constantly having niggles with train operators about whether they are not quite good enough or not quite bad enough? I look forward to the Minister’s reply.

[Lord Moynihan (Con)]

My Lords, I declare my interests as set out in the register.

I support Amendment 17, in the names of four eminent Members of your Lordships’ House. I hope that I will be forgiven if I also say that I declare the interest of having worked with the noble Baroness, Lady Grey-Thompson, on these issues and duty of care and accessibility for many decades. In fact, we go back to the point when, as Minister for Sport, I approached the International Olympic Committee to ask it to consider ensuring that all the facilities used by a host city for the Olympic Games should immediately be used thereafter for the Paralympians. That was not just so that we could look at athletes and focus on their abilities rather than their disabilities, but to change the mindset of the population. A lot of what we have been talking about this evening is about changing that mindset. It is about changing attitudes: we cannot simply put in a statement of standards and allow it to gather dust; we must make sure that that statement of standards changes attitudes.

The Government have a great opportunity to include a statement of standards in this legislation. No party has a greater interest in accessibility than any other party. We all passionately agree across the Chamber about the importance of responding to the proposers of the amendment we are debating. This Bill is an opportunity to recognise that and move forward to a new level of recognition and understanding about what should be in a statement of standards.

All train operating companies should be committed to providing infrastructure and rail services to the highest standard of accessibility—that is the starting position—and customer service for all customers and stakeholders. There should be accessible travel policies outlining their approach to providing assistance to customers with restricted mobility or who require assistance, including those with visual or auditory impairments, learning disabilities and non-visible disabilities. This policy should be placed in a statement of standards and should be aligned to other legislation, such as the Equality Act and the Rail Vehicle Accessibility Regulations 1998.

Passenger Assist is a national system supported by all train operating companies at the moment. I hope it will be supported in future, because it is vital that we arrange passenger assistance for disabled customers and those with restricted mobility. At present, national technical specifications for interoperability define technical and operational standards to ensure the interoperability of trains, not least into the European railway system, and must include accessibility standards for new stations or major work on existing stations. Let us embed that into a statement of standards. The Public Service Vehicle Accessibility Regulations ensure that vehicles used as rail replacement services are accessible. All involved should implement these standards for all new infrastructure, in addition to adopting innovation and best practice.

Level boarding is an incredibly important issue. All new train fleets being introduced should have a slightly lowered floor height compared with typical trains in the UK and should be provided with a retractable step to close the gap between the train and the platform. This would mean that all passengers should be able to board and alight without assistance, at all platforms, once the long-running transformation in this country is complete and all platforms have been brought into alignment. Let us embed that into a statement of standards.

I shall touch on two other things. The first is persons with reduced mobility national technical specification notices. At present, NTSNs define the regulatory requirements for infrastructure and trains, to ensure accessibility for people with reduced mobility. They include standards for the design, construction and maintenance of railway systems to make them accessible. Braille and prismatic signage at our major stations should be an essential feature and should comply with the PRM NTSNs.

On braille signs, let us take the situation in Wales. Braille signs should be in both languages; they should be in Welsh as well as English, aligning, in that case, with the Welsh Language Act’s commitment to preserving the language. This initiative not only supports the ethos of that Act but enhances accessibility for individuals with impaired vision. I hope that the noble Baroness, Lady Randerson, will agree with that.

Finally, there should be station design toolkits specialising in wayfinding requirements and colour schemes, to ensure consistency and accessibility. That includes principles for signage, fonts and colours, to create a high-quality station wayfinding system.

This Bill provides a unique opportunity to include a comprehensive suite of accessibility reforms and to introduce a standardised and consistent approach to accessibility standards across the railway network. All of us across the Chamber agree on the importance of the subject. Here we have a real opportunity to have a statement of standards of the highest possible quality enshrined in legislation. I look to the Minister and the Government to at least take that away and think about it as an important step forward that would gather support across the Chamber and respond to the worrying concerns that have been expressed by the noble Baronesses in Committee tonight.

Passenger Railway Services (Public Ownership) Bill

Baroness Scott of Needham Market Excerpts

Committee stage
Monday 21st October 2024 Lords Chamber

Moved by

[Baroness Scott of Needham Market]

1: Clause 1, page 1, line 12, at end insert—
“25B Termination of existing franchise agreements(1) The Secretary of State must terminate franchise agreements for default in accordance with the terms of the agreement as soon as it is possible to do so.(2) Subject to subsection (1), the Secretary of State must not terminate a franchise agreement pursuant to a break clause unless—(a) there are no other franchise agreements which are—(i) terminable for default or may be terminable in the next three months for default, or(ii) will come to the end of their term within the next three months, and(b) the Secretary of State is satisfied that provision of the services by a public sector company will improve existing service provision.(3) In this section, “break clause” means a contractual provision in a franchise agreement which entitles the Secretary of State to terminate the franchise agreement before the end of the franchise term by notice without reason.”Member's explanatory statement
This amendment would require the Secretary of State to nationalise the worst performing operators first while enabling services that are currently working well to continue.

[Baroness Scott of Needham Market (LD)]

My Lords, I am sure that all of us want the same thing that the passengers want: a railway which is reliable, punctual and affordable. In too many parts of the country, they have been let down and this has not been delivered. Personally, I can understand why the Government have chosen this way of doing things and improving matters. But I do also think it is beholden on this House, particularly as we are now in Committee, to really focus on the way in which the Government intend to do this. It is in that spirit I move Amendment 1.

I am arguing what I argued in my Second Reading speech—that, in order to make the transition to public ownership a success, the Government should first take on those operators which are demonstrably failing passengers. They should turn those services around to deliver tangible improvements for the travelling public. It follows that the management of currently high-performing operators—as I shall show noble Lords, they do exist—should be retained for as long as possible to ensure that passengers continue to receive good service while minimising costs to taxpayers.

This amendment would require the Secretary of State to first nationalise the worst-performing operators to deliver immediate benefits to passengers and taxpayers, while enabling services that are currently working well to continue for the time being. Specifically, it places the Secretary of State under a duty to prioritise the termination of franchise agreements where the incumbent operator is in default of their agreements and gives them a duty not to terminate non-defaulting franchise agreements early unless there are no franchise agreements to be terminated due to default or because of their expiry. It would also require that terminating such an operator early would improve existing service provision.

I will say a word or two about the railway I use. I have travelled between Suffolk and London several times a week for more than 25 years now, and I can tell noble Lords that my service has never been better. Greater Anglia has spent £1.4 billion upgrading its rolling stock. It returned £65 million to the Treasury in the year ending in March and is predicted to return £100 million next year. It has a 94.8% public performance measure; I think Avanti is currently at 62.2%. Greater Anglia’s cancellations are at 1.4% and Avanti’s at 10.2%, but Greater Anglia’s full term expires in September 2026 and will therefore be one of the first to go.

It is genuinely difficult to see how that performance could be bettered. Indeed, with new management operating and a whole new set of structures it could conceivably get worse, initially at least. On the other hand, the poorly performing franchises have the potential for significant improvement—indeed, that is why the Government are doing this—so by using a strictly chronological approach they risk losing the confidence of the public right at the start of this process.

Current national rail contracts give the Secretary of State powers to act against failing train operators, both in general and where remedial measures are in place, and she has broad rights to information provision about possible contraventions, so could the Minister outline how the Secretary of State has used these rights in relation to CrossCountry and Avanti contracts? The grounds for default under the national rail conditions are passenger service performance, non-compliance with remedial agreements and contravention of other obligations, so has the Minister sought advice on CrossCountry’s and Avanti’s performance in relation to those provisions? Is either TOC in breach of any other provision? With Greater Anglia, West Midlands Trains and East Midlands Railway all performing well, can the Minister say whether they will be allowed to run their full course?

Regardless of where your Lordships stand on the question of renationalisation, in the end, as members of the travelling public, we all want it to work. By taking a strictly chronological approach, which leaves poor performers in place, the Government risk seriously undermining their own flagship policy. I beg to move.

[Lord Liddle (Lab)]

My Lords, I have an amendment in this group that is closely aligned with the noble Baroness’s, on which she has spoken very eloquently. It would reaffirm the Secretary of State’s powers to, if necessary, withdraw franchises from operators.

I tabled my amendment because I am a strong supporter of the Government’s policies and it would be tragic if we could not complete the transfer of companies to public ownership with remarkably quick speed. Yet, when we had the Second Reading debate, the noble Baroness, Lady Blake, pointed out to us that, unless there was a basis for withdrawing the Avanti franchise, it would run for another couple of years. It would be tragic if the worst-performing franchise, along with CrossCountry, was allowed to continue for this extended period and thereby to delay the Government’s ability to introduce the kind of rail reform that a unified railway under a guiding mind would make possible. To tell you the truth, on the basis of what I have heard, I think our Ministers are being a bit feeble. They could stand up to Avanti with much greater determination than they have.

--- Later in debate ---

[Lord Hendy of Richmond Hill (Lab)]

It varies in accordance with the particular train company. Some of them are coming to a natural conclusion, others have break clauses that enable termination and, in a limited number of cases, there are some choices that could be made. To that extent, we will have to make them.

[Baroness Scott of Needham Market (LD)]

My Lords, I am very grateful for the support I have received from across the Committee for my amendment. I am not sure I can remember it happening to me before, and I was basking in the warm glow until the Minister stood up to reply. I am sure that all Members of the Committee will be disappointed because, at the bottom of this, we will be renationalising the Greater Anglia franchise with a performance rating in the 90 per cents, and leaving Avanti in place with its performance in the 60 per cents. Whatever the policy or legal niceties, people will be bewildered by that. I have every sympathy with the Minister; the Government inherited a contract that seems to have allowed extraordinary latitude to Avanti for poor performance. I also recognise the twin problem that it has an extraordinarily long franchise, but I am sure that he has heard very clearly what everyone is saying here. The message to him is: please be absolutely sure that there is not some extent to which political will can find a way through this. A failure to deal with this will leave the travelling public absolutely bewildered. With that, I beg leave to withdraw the amendment.

Amendment 1 withdrawn.