HGV Driver Shortages

Baroness Vere of Norbiton Excerpts

Monday 13th September 2021 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con)]

My Lords, with the leave of the House, I shall now repeat in the form of a Statement the Answer to an Urgent Question asked in the other place on HGV drivers. The Statement is as follows:

“Mr Speaker, I welcome this opportunity to update the House on the actions that my department and others have been taking to address the shortage in HGV drivers. This is, of course, a global issue, with our supply chains adjusting to the impact of the pandemic and working incredibly hard to make sure that consumers get whatever they need. We have been working with the industry for many months, unlocking testing capacity so that UK workers can join the driving sector.

My department has already increased the number of vocational driving tests from 2,000 a week pre-pandemic to 3,000 a week—that is a 50% increase—and last Friday I announced to Parliament additional measures that will significantly increase the number of HGV driving tests, by up to 50,000 per year. First, we will eliminate the need for some car drivers who want to tow a trailer to take an additional test. Some 16 million drivers who took their test before 1997 already have that right, so we are going to allow everybody to enjoy the same privilege of the licence, allowing around 30,000 more HGV tests every single year.

Secondly, tests will be made more efficient by the removal of the reversing exercise element and, for vehicles with trailers, the uncoupling and recoupling exercise. That test will be carried out separately by a third party, so it will still be done.

Thirdly, we are making it quicker to get a licence to drive an articulated vehicle without first having to get a licence for a smaller vehicle. That will make around 20,000 more HGV driving tests available every year and mean that drivers can gain their licence and enter the industry more quickly, without removing any testing. I have instructed the DVLA to prioritise the processing of licence applications, and we are supporting the industry to get UK workers into training.

This is not the only action that we have taken. Over recent months, we have made apprenticeships in the sector much more generous; offered incentive payments to employers to take on apprenticeships in the sector; worked with Jobcentre Plus with my right honourable friend the Secretary of State for Work and Pensions to direct more people towards this brilliant career; and provided funding of £1 million for the Roads to Logistics scheme, encouraging ex-military leavers, ex-offenders and the long-term unemployed to move into jobs in this sector. This is not just a transport problem or effort, but ultimately many of the solutions to this will come from standing challenges, which the industry itself will want to take on.

The Government welcome the prospect of better remunerated drivers, with better conditions and a more diverse HGV workforce.”

[Lord Rosser (Lab)]

I thank the Minister for repeating the Statement. The Government have known for months and months that driver shortage issues would be exacerbated by the terms of the Brexit deal and their handling of Covid. Government Ministers are just now telling the industry to increase pay and improve conditions to recruit and retain more drivers, a much-needed step. However, how will that, or shortening the test process, or changing safety-driven driving regulations now address the immediate threat of worsening and widespread supply chain shortages this autumn? Or are the Government still sticking to what appears to have been their stance until now—which would explain the lack of timely government action—that the industry has been crying wolf over the impact of driver shortages this autumn?

[Baroness Vere of Norbiton (Con)]

My Lords, there is so much to respond to in that question. I am sure the noble Lord knows it is the case that this issue has been around for a very long time. I was talking to a colleague in the other place only recently and he said that one of the first things he did when he was elected in 2010 was go to an RHA reception at which they complained about the driver shortage. So the reality is that this has been a long time in coming. We absolutely will work with the industry to put in place all the things that they need to do.

The other thing to recall is that there are hundreds of thousands of qualified HGV drivers in this country who do not currently work in the sector. The industry must focus on getting those people back. By doing so, we have to focus on improving pay—there is anecdotal evidence that is coming through—and terms and conditions: my goodness, how simple is it to provide a clean loo, a vending machine and a comfy place to wait? Distribution centres need to absolutely step up and make sure that HGV drivers have at least those very simple things to make their day slightly easier.

There are lots of things that can be done. I do not take the point that the Government have been slacking. We have done an enormous amount and will continue to work with the industry to make sure that we keep goods flowing.

[Baroness Randerson (LD)]

My Lords, rather than making the roads safer—Britain has always prided itself on its road safety record—these proposals seem to be some sort of cowboys’ charter. What does the Minister think about the response of Logistics UK and other representatives of the sector who believe that the longer working hours they suggest and have introduced will make the roads riskier and deter people from joining the industry? What assessment have the Government made of the safety impact of making the driving test effectively easier? This is not what people wanted when they voted for Brexit. Brexit is at the basis of this; Covid has made a bad situation much worse.

[Baroness Vere of Norbiton (Con)]

My Lords, Brexit is not the basis of this. At the current time, Germany has a 45,000 to 60,000 HGV driver shortage, France 43,000, Spain 15,000, Italy 15,000, and Poland 124,000. This is a problem that is impacting developed countries all across the EU and in the US, which has a 61,000 shortage right at this moment in time.

The noble Baroness refers to cowboys. I do not know who the cowboys are that she is referring to; I hope it is not the haulage sector, which I know is doing everything it can to make all the interventions we are putting in place work. For example, as the noble Baroness well knows, hauliers have to notify the department that they are going to use the extension of the hours and we obviously monitor the safety that comes out of that.

The noble Baroness seems to think that somehow the HGV test is getting easier. I am sorry to disabuse her: it is not. There will be no change to the standard of driving required for HGVs. The simple fact is that a certain element of the test will be delegated to trainers, who already train the HGV drivers in things such as manoeuvres. I would go on on the safety issue, but it is clear that we have some of the safest roads in the world and we want to keep it that way.

[Lord Naseby (Con)]

My Lords, is it not clear that, with just about 100 days till Christmas, there is an urgent short-term problem? Against that, why cannot Her Majesty’s Government produce a six-month visa for former HGV drivers who are somewhere else in Europe and recognise that they need be for only six months? I have had a six-month visa in my life as a commercial man and everybody obeys the six months. That surely will help in the short term.

In the longer term, it costs a young person of a non-academic interest over £7,000 to train. Why can we not have the equivalent of the student loans scheme for young people who want to learn to be HGV drivers, which could be repaid in the same way, so that when they have a job they can pay the loan back to Her Majesty’s Government?

[Baroness Vere of Norbiton (Con)]

I recognise that my noble friend wants to open the floodgates to EU drivers, but I sense that he may be waiting quite a while for the flood to arrive, because as I have outlined there is a shortage of drivers across the EU. What we must do is focus very hard on recruiting and training domestic drivers, and getting some of them to return. That is where the heart of this lies.

I note what my noble friend says on training. I do not know where the £7,000 figure comes from, because I actually phoned up an HGV trainer the other day—not for myself, of course—to ask and they said that it was around £3,000. By removing the staging requirement to get a C licence and a C+E, we will have combined the two training elements together. We would also expect training to reduce to get a C+E articulated licence. As my noble friend may know, there are private sector loans available and many of the training schools will make those available to the trainees, but of course it would be better if industry paid for the training in the first place.

[Viscount Thurso (LD)]

My Lords, is the Minister aware of the recent research which shows that HGV drivers dislike their conditions and having to stay away overnight? With that in mind, will the Government look again at the plans for rail freight villages and palletisation of freight? That would put a lot of freight on to the railways and allow the drivers to do the last-mile deliveries, which would keep them nearer home and be more eco-friendly. I commend it to the Government.

[Baroness Vere of Norbiton (Con)]

I thank the noble Viscount for his suggestion. We in the Department for Transport are great supporters of rail freight. We have made significant investments in rail freight. It is not suitable for many of the goods moved by road, but where it is suitable we have various grants available to slightly subsidise the cost of rail freight and get that freight off the roads.

[Earl Attlee (Con)]

My Lords, I declare an interest as I have a C+E HGV licence. I am also an out-of-date HGV driving instructor.

The chickens are coming home to roost. For years we have treated HGV drivers like dirt. Why would anyone want to become an HGV driver? We literally expect them to urinate and defecate away from fixed facilities. Go and look at the A34 trunk road, see how many lorries are parked up with the driver inside and think about what he is going to do in the morning.

We persecute HGV drivers with regulation. I do, however, have one suggestion for the Minister. I have an HGV licence, but I cannot use it commercially because I do not have a Driver CPC—a certificate of professional competence. If the Minister relaxed that requirement, she would have access to a large number of HGV drivers very quickly.

[Baroness Vere of Norbiton (Con)]

Gosh, do I have some jobs for my noble friend. He is, however, absolutely right: it may well be that some of these hundreds of thousands of people with HGV licences do not want to return to the sector because, historically, it has been seen as a sector that does not treat its employees very well. The only way to fix that is to get the haulier sector working with the customers and the supply chain in the distribution centres. The Government have already produced an internal report on lorry parking. We will look very carefully at what we can do to go beyond the changes to the planning system that we have already put in place.

I take my noble friend’s point on the Driver CPC. The House may remember that we were able to extend it last year, but that was using EU legislation. I will do what I can on the Driver CPC. It is a good safety mechanism, but we might be able to do something, although significant changes would require primary legislation at this time.

[Lord Carrington of Fulham (Con)]

My Lords, has my noble friend heard the stories about considerable delays in renewing HGV licences for drivers? There seems to be a problem with the DVLA’s processing of renewal applications. Will my noble friend look at the problems in the DVLA and try to speed up the process? That would have a big impact on the number of drivers available.

[Baroness Vere of Norbiton (Con)]

That is an excellent point. I spoke to the DVLA only this afternoon, and indeed the Secretary of State and I asked it to prioritise provisional vocational licences quite some time ago. One thing that people must realise, if they are waiting for renewal of a vocational licence, is that under Section 88 it is highly likely that they would still be able to drive even though their licence has not been renewed. If your application has been done—if it is in and it is correct—under Section 88 you can still drive. We need to get that out there. I completely take my noble friend’s point, though, and we are in very frequent discussions with the DVLA to see how we can get as many licences through the system as possible.

Railways: Bridge Strikes

Baroness Vere of Norbiton Excerpts

Tuesday 7th September 2021 Lords Chamber

[Lord Berkeley]

To ask Her Majesty’s Government what plans they have to reduce the risk of vehicles hitting railway bridges in order to improve rail passenger safety and reduce disruption.

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con)]

My Lords, reducing bridge strikes involves interventions from the owners of bridges—usually Network Rail—highways authorities and the owners and operators of vehicles. Network Rail raises driver awareness and offers advice on avoiding low bridges. It has published Prevention of Bridge Strikes: A Good Practice Guide on GOV.UK.

[Lord Berkeley (Lab)]

I am grateful to the noble Baroness for that Answer and I commend the work that Network Rail has done, but my Question arises from an incident in Plymouth, on bank holiday Monday, which closed the west of England line for three days and affected tens of thousands of passengers, when a Tesco lorry hit a bridge. According to Network Rail, 43% of drivers do not know the height of their lorries. That is pretty frightening. According to Network Rail again, there are something like five bridge bashes every day, and clearly there will be occasions when there could be very serious accidents. Will the Minister, in addition to supporting Network Rail’s work, encourage it to claim all the costs from every bridge bash, including the cost of delays to trains, the cost of rebuilding and of course the cost of the delays to passengers? At the moment, it is costing the taxpayer £23 million a year, which seems rather a lot of money.

[Baroness Vere of Norbiton (Con)]

I am not wholly sure where the noble Lord got the figure of £23 million a year, but I would point out that costs are not necessarily met by the taxpayer; it depends on the circumstances. If liability rests with a vehicle driver, the costs will be recovered through insurance, and Network Rail has been successful in recovering large amounts for both infrastructure repair and compensation in the past.

[Lord Rosser (Lab)]

The Road Haulage Association promotes the use of specialised lorry satellite navigation devices, which give bridge heights. Do the Government plan to take any steps to help promote their use more widely, or even make it a requirement that they be fitted and used in a similar way to tachographs? If they do not do so already, could such devices not also be adapted to give a warning to drivers approaching bridges that are lower than the height of their truck and trailer?

[Baroness Vere of Norbiton (Con)]

I agree with the noble Lord that technology will provide at least some of the answers to the problems we currently face. As he will know, Network Rail often installs special technology on some of the more bashed bridges that measures the height of the approaching vehicle and then flashes up “Turn Back” signs. Of course, we are very happy to work with the freight associations—and indeed we do—on ensuring that HGV drivers are fully aware of the technology available to them both in their cab and on the roads.

[Baroness Watkins of Tavistock (CB)]

My Lords, without the quick-acting response of a local resident calling the emergency phone number by the bridge in Plymouth in the incident referred to earlier, a high-speed derailment was highly likely. I went to visit the site the day after it happened. As Plymouth had just had a very severe event associated with a fire alarm, I am delighted that nobody was hurt in this incident. However, there must be more that we can do. The south-west rail network has been significantly under-invested in; there are only two lines, one going one way and one the other, from Plymouth to Cornwall. This results in overcrowded trains, resulting—particularly with Covid—in the risk of cross-infection, as we have recently seen in Devon and Cornwall. So I ask the Minister not only about the safety of bridges but about safe and sufficient trains.

[Baroness Vere of Norbiton (Con)]

The noble Baroness has taken the Question a little more broadly than the brief, and I am afraid I will not be able to comment on the capacity of trains in the south-west. However, I agree that bridge strikes are dangerous, disruptive and costly. The solution does not lie in any single intervention; we must maintain our focus on getting bridge owners to put up the relevant signage and getting highways authorities to put up warning signs ahead of these bridges, and of course we must double down on our efforts to communicate with HGV drivers and bus drivers to ensure that they know exactly how high their vehicle is—indeed, by law they must know this, and it must also be displayed in the cab.

[Baroness Wilcox of Newport (Lab)]

My Lords, the Minister has already noted that the Government support Network Rail in recovering costs from operators of HGVs involved in avoidable crashes. Network Rail also said that it will report bridge strikes to the Traffic Commissioners for Great Britain, the regulator responsible for licensing professional drivers, who have the power to suspend or revoke licences. Will Her Majesty’s Government support Network Rail in its pursuance of the suspension or revocation of HGV licences in this situation?

[Baroness Vere of Norbiton (Con)]

Absolutely, and I can reassure the noble Baroness that I have already been on the case in this matter. Bridge strikes have not suddenly arrived on our doorstep recently, although I am pleased to say they seem to be coming down in number, which is a relief. I wrote to the Traffic Commissioners on 17 September last year, after a terrible bus crash—noble Lords may remember it—where the top of the bus, which had children on board, went into the bridge. It was a very serious matter. I asked the commissioner to remind all operators of their obligations, and he wrote me a very helpful response just a week later setting out a range of measures he would take, not only communicating with the drivers and operators but setting out what steps must happen when an event has occurred—there is usually a public inquiry, the driver may face suspension or revocation in more serious cases, and the operator can face sanctions relating to their licensing. So the Government do take this matter very seriously.

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, my noble friend Lord Berkeley has highlighted a very important issue. Is the noble Baroness satisfied that the signage as set out in the Highway Code is as clear as it should be? I lived in the east Midlands, in Derbyshire, where there are a number of bridges. It is about not only the height of the vehicle but its width; sometimes the lorry arrives and the signage has not been put out properly for it to see the problem in advance. Can we look at that? If the noble Baroness is going to tell me that the signage is correct, what procedures are there to review the advice from time to time to ensure that the prevailing view is actually correct?

[Baroness Vere of Norbiton (Con)]

The regulations setting out what signs are needed are actually set out in chapter 4 of the Traffic Signs Manual, which is published by the DfT. We set out comprehensive advice on signage approaching a bridge to make sure that reduced height clearances are clearly set out in advance. It is up to the highways authority, under Section 41 of the Highways Act 1980, to make sure that the signage is appropriate. If noble Lords are aware of signs which they feel are insufficient, they should get in touch with the local highways authority, which has a responsibility to make sure the signage is correct. We feel confident that the Traffic Signs Manual sets out exactly what is required.

International Travel Rules

Baroness Vere of Norbiton Excerpts

Thursday 22nd July 2021 Lords Chamber

[Lord Rosser (Lab) [V]]

My Lords, it is not possible to travel to France without the need for quarantine and all the costs and upheaval that involves, as France, following a sudden decision, is now in a separate subcategory of amber-list countries. As one Conservative MP put it when this UQ was discussed in the Commons,

“public confidence in going abroad is now in a ditch”.—[Official Report, Commons, 19/7/21; col. 679.]

Another Conservative MP said,

“the further restrictions for France stretch both the credibility of the system and the patience of the travel industry. The whole industry … continues to watch as its reserves are dried up”.—[Official Report, Commons, 19/7/21; col. 685.]

The travel industry was promised a rescue deal, which has never materialised. When do the Government intend to give this important industry the support that it needs, as we have called for, and as the shadow Secretary of State demanded again in the Commons on Monday, to which there was no response from the Minister?

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con)]

My Lords, the noble Lord, Lord Rosser, talks about the decision that we had to make on France, which of course was not made lightly. We have in place a good traffic-light system which enables us to categorise countries according to risk and, therefore, travel can happen accordingly. However, we have also reduced requirements for people who have had double vaccinations in order to travel to amber countries. That is of great benefit to the travel companies and I am sure that they will take advantage of that opportunity.

[Baroness Randerson (LD) [V]]

Can the Minister explain why the Government, with a fanfare of publicity, moved France on to the amber list while at the same time issuing instructions that from Monday, Border Force officers no longer have to verify that new arrivals from green-list and amber-list countries have negative Covid tests or other legally required paperwork? Can the Minister explain why the decision to remove these checks was made? Was it due to a lack of staff and, if so, why have the Government not provided enough Border Force staff to perform checks at a predictably busy time of year?

[Baroness Vere of Norbiton (Con)]

My Lords, all the decisions that this Government make are on the basis of risk—risk to the country as a whole from a public health perspective and risks to travellers who choose to go abroad where they are able to. It is not the case that checks were dropped because of reduction in demand. However, we need to keep the travelling public as risk-free as possible. That is a great benefit to citizens, but also to the travel industry.

[Baroness Neville-Rolfe (Con)]

My Lords, what are the prospects and timing of agreeing a deal with the United States that would allow quarantine to cease for vaccinated individuals from both countries? This is our largest market, with a high rate of vaccination, so “risk”, in the words of my noble friend, is low. And what is the answer for Japan? I should declare an interest, as I need to travel there as chair of Crown Agents.

[Baroness Vere of Norbiton (Con)]

Japan will be taken under consideration as we review the traffic lights system going forward. Transatlantic travel is hugely important for both the US and the UK, and as announced by the Secretary of State for Transport on 8 July, we are confident that vaccines will play an important role in normalising travel, when it is appropriate. There is a UK-US expert working group specifically driving this work forward.

[Lord Bilimoria (CB) [V]]

My Lords, the queues at arrivals at our airports are now completely unacceptable. They are two hours or more, as I have experienced recently. Why do the Government not do two things? First, they could get airlines to check documentation before passengers board planes to the UK. Secondly, with universities having closed, they could employ university students, or recent graduates, train them up in a day or two and get them to check Covid documents at arrivals at the airports, with one or two Border Force agents supporting and supervising them, and then let the passengers through to the e-gates and to the immigration officers to do the passport checks. These two moves would remove the congestion and queues in one swoop.

[Baroness Vere of Norbiton (Con)]

I thank the noble Lord for his suggestions, and I will ensure that my colleagues at the Home Office listen to them as well. We have always been very clear that wait times at the border may be extended due to biosecurity checks being carried out. These are essential to protect the public and the success of our vaccination programme. Passengers have a key role to play in this, as to a certain extent do airlines, because they do some checking before passengers board aircraft. The noble Lord mentioned e-gates. Automation is also really important. We have been able to upgrade the e-gates to speed passengers through the airport.

[Lord Snape (Lab)]

I draw your Lordships’ attention to my entry in the register of interests. The travel industry is at present on its knees. Regular changes in government policy, as well as changes in the government policy on the admittance of British businesspeople and holidaymakers from other countries, are making the situation considerably worse. Could the Minister tell us what consultations, if any, have been held with the Treasury about some sector-specific assistance to this vital industry?

[Baroness Vere of Norbiton (Con)]

My Lords, we believe that by the end of September 2021 the air transport sector, for example, will have benefited from around £7 billion worth of government support since the start of the pandemic. Decisions around the sector support will of course ultimately be a matter for the Chancellor based on the evidence that we have been able to provide. Of course, we have regular conversations with our colleagues at the Treasury, but also with industry. We are listening very carefully to the sector.

[Lord Randall of Uxbridge (Con) [V]]

My Lords, perhaps one of the more confusing issues surrounding the traffic lights system is not knowing on what basis the grading is made. Chile, for example, has falling infection rates and is at least on a par with our high vaccination rates here, yet it remains red. Could my noble friend give us some idea as to how exactly these grades are calculated and whether she is aware of any red countries likely to move to amber in the foreseeable future?

[Baroness Vere of Norbiton (Con)]

I am unable to provide any insight to my noble friend as to what might happen in the future in terms of countries moving from one group to the next, but we look at a range of factors when making these decisions. Of course, we are reliant on the joint biosecurity centre for producing a risk assessment of the countries and territories. The factors that the JBC risk assessment considers are very varied. They include the genomic surveillance capability within the nation, the Covid-19 transmission risk and the transmission risk of variants of concern. A range of measures is incorporated into reaching these decisions.

[Baroness Blackstone (Ind Lab)]

My Lords, I would like to pick up on the point on France raised by my noble friend Lord Rosser. The Government’s decision on Friday to change quarantine rules on return from France has bewildered and angered not just the travel industry but the hundreds of thousands of UK citizens gong to France on holiday or for work. Can the Minister tell the House when this decision will be reviewed—and hopefully reversed—given the small number of beta variant cases in mainland France, as opposed to La Réunion, so that people can get on with their jobs when they return without self-isolating first.

--- Later in debate ---

[Baroness Vere of Norbiton (Con)]

I am happy to provide some more information to the noble Baroness. GISAID data suggests that the beta variant accounts for around 5% of cases in France, with data earlier in the month suggesting it could be as high as 9%. This data does not include La Réunion. It includes Corsica, which is included in the quarantine policy, and Monaco. This data for the beta variant compares to similar data from Spain and Greece of less than 1%, so that it why we are concerned about France. It has nothing to do with La Réunion. That is why we took that decision. I cannot say at this time when that process will come under review. Of course, we would love to have people travelling to France again, but it was the right decision taken on the information available.

[Lord Rogan (UUP) [V]]

My Lords, many people travelling from Belfast to international destinations will initially fly to London or Manchester before continuing their journey on to their final destination. Given that the decisions made by the United Kingdom Government for travellers in England will therefore also apply to large numbers of travellers from Northern Ireland, what discussions is the Minister, or her officials, having with her counterparts in Belfast to ensure that changes to international travel rules agreed in London are properly conveyed to holidaymakers departing from Northern Ireland?

[Baroness Vere of Norbiton (Con)]

We have ongoing conversations with all the devolved Administrations, because this is so important. I recognise the noble Lord’s point: if you are travelling to Northern Ireland, chances are you may be coming through one of the large airports in England. It is very important, but we must recognise that health policy is devolved. However, we have every intention of working as closely as possible with the devolved nations and ensuring that our interventions are as aligned as possible.

[The Deputy Speaker (Lord Faulkner of Worcester) (Lab)]

The time allowed for this Question has now elapsed. I apologise to the noble Baronesses who could not be called.

Transport Decarbonisation

Baroness Vere of Norbiton Excerpts

Monday 19th July 2021 Lords Chamber

[Baroness Randerson (LD) [V]]

My Lords, there is no doubting the need for this transport decarbonisation plan and for that reason it is welcome. Transport is now the biggest single source of CO₂ emissions in the UK. Other sectors have managed significant reductions over recent decades, but improvements on transport have been marginal. That is the worrying thing about this plan, because it relies far too heavily on technological solutions. I looked in vain for reference to some of the more difficult choices that are needed.

The Statement reminds us that we are running out of time to tackle climate change and refers to the need to

“take decisive and radical action now”.

Then it goes on to promise that we can all carry on doing the same things: we can still fly to go on holiday, for instance, and technology will come to the rescue by 2050. The events of the last few weeks should surely have taught us that this is a climate emergency. As Canada burns and hundreds drown in Germany and Belgium, surely we must wake up to the need for rapid change.

The Statement has an almost fairytale quality to it, with far too many vapid “world-first” and world-beating references, which undermine the genuinely good aspects of this document. When it comes to transport decarbonisation, we are not in the world’s top tier. Noble Lords need not believe me on all this; the noble Lord, Lord Deben, has complained of too many long-term targets and a lack of short-term milestones, which are essential to make them meaningful.

The Rail Delivery Group makes the point that, if the Government want people to make greener travel choices, they must make use of the levers they have at their disposal to motivate public action. Rail, for instance, carries 10% of passenger miles but only 1.4% of transport emissions, so it is a climate-change winner; but only 38% of the network is electrified. Amazingly, the Government are currently consulting on cutting domestic air passenger duty. The RDG estimates that just a 50% cut in APD would lead to almost a quarter of a million fewer long-distance train journeys, with people shifting to flying as the cheaper option, leading to an additional 27,000 tonnes of carbon emissions.

The Government should use tax levers to make flying less attractive, not more. Funding for railways needs to concentrate on cheaper tickets, simpler fare structures and on making it easier to walk up and go. France has legislated to prevent short-distance flights for journeys under two and a half hours by rail, and the UK should follow this lead. The Government’s first priority must be to use taxation and their own policies to get us back on the buses and trains, which are by far the most carbon-efficient means of transport. That means subsidies, ending the ridiculous 10-year freeze on fuel duty and a change in taxation.

The Government need to look beyond the transport industry to taxation on sources of power. The rail industry is being penalised for moving from diesel to electric and now pays 40% of its electricity costs in taxes, whereas 10 years ago it was only 12%. Meanwhile, air passengers pay a much smaller proportion of their fares as climate-related costs. The Government still have a £27 billion road-building programme, which simply must be reviewed if their plan is to be credible. With their current targets, there will still be many petrol and diesel cars on our roads into 2050 and beyond. The pandemic has encouraged us all back to our cars and we need the Government to be bold to reverse that.

Technology has its place, and there may well be occasional bonuses to be derived from unexpected advances, but it cannot be the sole answer. The Government cannot shirk from grappling with the difficult behaviour change in choices. They can dream up all the targets they like, but they are meaningless unless the Government develop a sense of urgency, stop promising us lots of goodies and start actually doing something.

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con)]

My Lords, I thank the noble Lord, Lord Rosser, and the noble Baroness, Lady Randerson, for their input into this crucial moment in transport decarbonisation. It is the first time that any Government have taken a holistic and cross-modal approach to transport decarbonisation. It is the first plan of its type in the world. We have set out what we need to do and how we will end transport’s contribution to climate change in the next three decades.

As the Secretary of State for Transport said in the other place, this is not about stopping people doing things, banning things and all those things that the noble Baroness, Lady Randerson, is so keen on. It is about doing things differently. The plan is very much about taking the abstract—getting carbon out of our economy—and putting it into reality with actions, commitments and timings. Of course, there are many co-benefits to decarbonisation—we can have healthier and greener streets—and those too are very important.

The noble Lord, Lord Rosser, seemed to imply that consultation was somehow a bad idea. He complains that when the Government consult on this they have not made a decision. If I stood here and said that the Government had made a decision on something without consultation, I can imagine the response from your Lordships’ House, and it would not be good. Consultation is key for so many of these elements, and when we published the plan it was really heartwarming to see it widely welcomed by stakeholders from all across transport. That is because the strategic themes set out therein are so important.

As noted by the noble Lord, Lord Rosser, the first strategic theme is to accelerate

“modal shift to public and active transport”.


That is precisely what he said we were not doing, but we are—it is our number one strategic theme. The second is decarbonising road transport. We know that in transport itself, roads and road vehicles are the source of the greatest amount of emissions. The next theme of decarbonising how we get our goods—whether rail freight or road freight—will be really key in the future, as is establishing the UK

“as a hub for green transport technology and innovation”.

It is often omitted, but place-based solutions will be key. National Government cannot do this on their own; they will be reliant upon interventions from local transport authorities. Finally, on reducing carbon in a global economy, we are a leader, particularly for maritime and aviation. With those strategic themes in mind, I think the plan is a good one.

I will turn to a few more comments that the noble Lord, Lord Rosser, and the noble Baroness, Lady Randerson, made. We recognise that charging infrastructure will be one of the biggest challenges of our time, which is why we have committed £1.3 billion to ensure that we can decarbonise charging at home, in businesses and in public places. The Government will publish an electric vehicle infrastructure strategy later this year. That will set out exactly how we plan to take charging forward. We have also published our response to the consultation on smart charging, so we will lay regulations in the autumn. Therefore, all private devices will be required to be smart devices. That will benefit the energy network as a whole.

The noble Lord, Lord Rosser, talked about how he was not entirely happy with the transition between the 2030 phase-out date for petrol and diesel and the 2035 one for zero emissions at the tail-pipe. That is exactly why we published the Green Paper on the carbon dioxide regulatory framework, because we want to engage with people as to exactly what that transition will look like between 2030 and 2035. We have two big options. We could tighten efficiency-based regulations to align with the petrol and diesel phase-outs, or we could do that and make a zero-emission mandate. It is the case that carbon dioxide targets alone do not guarantee the take-up of zero-emission vehicles, or indeed that the 2030 target can be enforced. We would welcome feedback from all noble Lords on that. Within that, there will be a consultation on what vehicles should be in scope—what does it look like between 2030 and 2035? We want to hear feedback, because then we will set the most ambitious targets that we can.

The noble Lord seems not to have been reading my Twitter feed recently, which is disappointing. He said that we were not supporting public transport as we come out of the pandemic. Again, that is not entirely right. I have managed to secure well over £200 million-worth of funding for buses—that will take the bus network through to April next year—and only last week a further £56 million for the light rail sector, which will make sure that our really important tram and light rail systems can continue to operate and provide the really important services they do.

More widely, upgrading local public transport is really important. Again, buried in the small print of the transport decarbonisation plan is something that made me very excited as the Minister for Places in the Department for Transport. We will ask local authorities to provide quantifiable carbon reductions as part of their local transport planning and funding. That is game-changing; it really is. It sounds very dull but it really is not, because when local transport authorities look to do their long-term transport plans they will need to put decarbonisation at their heart. If they do that alongside their bus service improvement plans and all the other transport planning they do, it will be really key for the future.

Before I sit down I will address the phrase that is so often bandied about: the “£27 billion road-building programme”. I do not know what the noble Lord and the noble Baroness are talking about. It is a programme that provides for the operation of the roads. Therefore, traffic officers, maintenance of the roads to ensure that they are safe for users, and the renewal of our bridges, a lot of which are now about 50 years’ old and need a lot of work, are included in all that. Then there is some money for enhancements. I again press the noble Lord and the noble Baroness: if they have any particular enhancements they wish me to scrub off the list, I will be very happy for them to mention them in the House next time and I will consider them.

To go back to roads—this is about not just the strategic road network but all roads—the point is that carbon is a key consideration for all road enhancement projects. When I receive the business case about whether to invest taxpayer funding into a road, we always look at carbon alongside safety, the economic case, air quality and biodiversity. All those things are taken into account when we make decisions on road investments.

I am grateful to the noble Lord and the noble Baroness for their comments. I look forward to talking about this in greater detail in the coming months.

[The Deputy Speaker (Lord Haskel) (Lab)]

My Lords, we now come to the 20 minutes allocated for Back-Bench questions. I ask that questions and answers be brief so that I can call the maximum number of speakers.

--- Later in debate ---

[Lord Greenway (CB) [V]]

What?

[Baroness Vere of Norbiton (Con)]

I thank the noble Lord, Lord Greenway, for his many questions. Maritime is absolutely critical to our decarbonisation. At the moment, maritime is, unfortunately, very polluting. This is why we already have a lot of work under way. We published the Clean Maritime Plan in July 2019. We have committed £20 million for the clean maritime development competition. We are consulting on steps to support the uptake of shore power and, if necessary, we will mandate it. Clearly, the consultation needs to take place before we go around putting lots of plugs in ports.

[Baroness Neville-Rolfe (Con)]

My Lords, the Government may congratulate themselves on making “a world-leading pledge” on the sale of non-zero-emission road vehicles by 2040, but the people of this country will mainly be interested in the costs of achieving it, both to them individually and to the Exchequer. When will the Government publish a detailed plan answering this question, including the many costs to consumers, drivers and the 6 million businesses in the UK?

[Baroness Vere of Norbiton (Con)]

The Government have, of course, published the 2035 delivery plan for electric vehicles. The costs will vary significantly over time. We know what they are the moment. The Government are providing grants to people when they purchase their zero-emission vehicles. Over time those costs will change because innovation will lead to an overall reduction in the cost of electric cars. We will of course keep those costs under consideration.

[Baroness Blackstone (Ind Lab)]

My Lords, why is there no frequent flyer levy and why does the decarbonisation plan say nothing about demand management for flying?

[Baroness Vere of Norbiton (Con)]

My Lords, as I said, the Government do not want to set a demand cap because it sends entirely the wrong signal. We are anti-emission, not anti-flying. We believe there will be a rapid development of technology. The more we can set out our stall as to what our expectations are, the more we expect that development to increase.

[Lord Oates (LD) [V]]

My Lords, what assessment have the Government made of the potential for green hydrogen in decarbonising the maritime sector?

[Baroness Vere of Norbiton (Con)]

The noble Lord is quite right. Hydrogen will have many uses, mostly where batteries simply cannot reach. That will include heavy road freight, maritime and aviation. Therefore, we are looking very closely at what we can do for the hydrogen sector as a whole. We are funding the refuelling network and demonstration trials. I would have thought that some of the £20 million for the clean maritime demonstration competition might well go to hydrogen projects. It is really important that we remain technology agnostic. We believe that hydrogen could have a key role to play.

[Baroness Meacher (CB) [V]]

My Lords, the Government’s transport decarbonisation plan rightly recognises that hydrogen has the co-benefits of reducing CO₂ emissions and creating jobs and growth. Will the Minister therefore confirm that the Government will take ambitious action on the renewable transport fuel obligation? Can she confirm that the bus service operator grant to stimulate millions of pounds of investment in hydrogen production will apply only to green electricity and green hydrogen to accelerate the introduction of zero-emission buses, trains, trucks, ships and planes, all of which can be made in the UK?

[Baroness Vere of Norbiton (Con)]

The noble Baroness mentioned the bus services operator grant, which is key. Within the transport decarbonisation plan we set our plans for a green BSOG, an intervention that we believe will come into place in April 2022, but we will have a wider consultation on BSOG as a whole because at the moment it is a fossil fuel subsidy. It does not do what it is supposed to do, and therefore we need to make sure that it does in future and does not support fossil fuel use but encourages zero-emission buses.

[Lord Moynihan (Con)]

I warmly congratulate the Minister and her colleagues on putting the strategy together. Does she agree that net zero HGVs by 2040 is aggressive? Can batteries ever be the complete solution given range restrictions versus the trade-off of the weight of the batteries versus the truck payload? I understand why it makes sense to use hydrogen to store excess electricity and manage peaks and troughs, but building in an assumption that it replaces a large baseload volume of energy, which is currently taken up by diesel, by 2040 is surely another stretch.

[Baroness Vere of Norbiton (Con)]

I have not addressed the HGV issue as yet, and it is important. That is why we are consulting: we believe there needs to be a date from which non-zero HGVs will not be able to be sold. There is another issue which we want to consult on—increasing the permissible weights for zero electric and alternatively fuelled HGVs down the road—but HGVs produce 16% of carbon emissions and we must do something about it. We are looking 15 to 20 years in the future. Leyland DAF already manufactures a 19-tonne battery electric HGV. We expect development to continue apace. That may well include hydrogen.

[Lord West of Spithead (Lab)]

My Lords, despite the maritime sector being economically larger than aviation and rail combined, it appears to be the poor relative in the Government’s net-zero drive. If we are to level up our coastal communities and bring shipbuilding home, we need the Government to invest in research and innovation on a scale similar to the automotive and aviation sectors. I hope something can be done in the autumn spending review to put the investment in place to do it. I shall push the Minister a little further on shore power points, which, after all, are very straightforward. How many are currently planned to be put in place? Can she confirm that they will be funded by industry and government together?

[Baroness Vere of Norbiton (Con)]

Unfortunately the noble Lord is pushing me beyond my knowledge, but I will write to him about shore power points, how many there will be in future and who will fund them. On maritime as a whole, it is worth saying that the conversation has only just started. We must work with stakeholders on a course to zero for the maritime sector. We will increase our ambitions at the IMO, particularly when there is a review of greenhouse gas strategy in 2023. There are all sorts of things that we can do. This is the start of the story, not the end.

[Lord Bradshaw (LD) [V]]

In view of what is likely to be a chronic shortage of HGV drivers that will persist for years, will the Government urgently look again at investing in rail-freight schemes, particularly electrification schemes, which would replace road-based journeys with rail?

[Baroness Vere of Norbiton (Con)]

The Government recognise how important rail freight is and we will be doing more work on it. We will be looking to introduce a greater target for rail freight. The noble Lord will know—we have had this conversation many times—that the Government have already invested significant sums of money in rail-freight building, and we will continue to build on the £235 million that we invested in the strategic freight network in the five years to 2019. Work is under way and there are already grants to help the shift from road to rail where road has a slight financial advantage.

[Lord Krebs (CB) [V]]

My Lords, how many gigawatts per annum of battery production will be required to supply the UK automotive industry by 2030, when all new cars will be battery powered, and how does this number compare with current and planned domestic production capacity? Can the Minister also tell us whether the Government have a strategy for sourcing the critical raw materials for domestic battery production in the face of competition from other countries?

[Baroness Vere of Norbiton (Con)]

My Lords, this is rapidly turning into “Mastermind”. I cannot give the noble Lord the numbers he is after. I will go back to the department and see whether I can find any further information. It is important to understand that the Government are already investing significantly in the area of batteries. We have the £330 million Faraday battery challenge and the automotive transformation fund, which is £500 million focused on the supply chain. It has already invested in 50 feasibility projects. It will look at all elements of how we are going to make our electric vehicle production more effective.

[Lord Herbert of South Downs (Con) [V]]

My Lords, James Bond’s next car will be the Aston Martin Valhalla, a plug-in hybrid supercar, but since 007 has no off-street parking and there are so few charging points available, he might have no choice but to ask Q for his petrol-engined DB10 back. Huge numbers of people cannot contemplate buying even a plug-in hybrid, let alone a fully electric car, even when they really want to, because we do not have anything like the necessary number of public charging points. With only eight and a half years to go before a ban on the sale of new petrol and diesel cars, what plans do the Government have for serious acceleration in the delivery of the necessary charging infrastructure?

[Baroness Vere of Norbiton (Con)]

My Lords, the Government empathise with James Bond and indeed with all people who do not have access to off-street parking. It is one of the challenges that we face. That is why the Government introduced the on-street residential charge point scheme—the ORCS. It is available to all UK local authorities to provide public charge points for their residents. So far it has awarded money to 120 local authorities to install nearly 4,000 charge points. I reassure my noble friend that the electric vehicle infrastructure strategy will be published later this year, and I think that will provide more reassurance to James Bond and everyone else.

[Baroness Warwick of Undercliffe (Lab)]

My Lords, the Government’s build back better strategy acknowledges the UK’s persistent technical skills shortage. The Automotive Council estimates the current need for upskilling at 10,000 workers, rising to 50,000 in four years and 100,000 by 2035. The Statement and plan today merely talk about building a skilled workforce for the transport industry, but how? Where is the action plan? Where is the sense of urgency? Can the Minister tell us what she and her department are doing to galvanise the production of an action plan to address these catastrophic shortfalls?

--- Later in debate ---

[Baroness Vere of Norbiton (Con)]

The noble Baroness is quite right. In many areas, and as we shift to a decarbonised economy, we will need greater skills. The Department for Transport is working very closely with our colleagues in the Department for Work and Pensions and the Department for Education to build that strategy.

[Lord Taylor of Goss Moor (LD) [V]]

My Lords, the two big blocks to people adopting electric vehicles, now that so many are available at high quality, are access to a charger and cost. The Minister mentioned the on-street charger support given to some local authorities, but not all have taken it up. For those with off-street parking, there is a subsidy for the charge box, but people are not guaranteed any help for on-street charging through, for example, a lamppost. Can the Government speed that up? At the same time, can they give certainty to businesses that there will be continuing support for electric vehicles through support for low levels of benefits-in-kind tax?

[Baroness Vere of Norbiton (Con)]

I think I have gone as far as I can on charging. We recognise that it is one of the greatest challenges facing the take-up of electric vehicles. My colleague the Minister for the Future of Transport is working diligently on making sure that we have the right plan in place for the £1.3 billion we will be investing in it over the next four years. That will be set out in the electric vehicle infrastructure strategy.

[Baroness Jones of Moulsecoomb (GP)]

My Lords, one option for reducing CO₂ emissions, of course, is to travel less. The Government could make it easy for people not to travel—that is, go into the office—if they do not want to, by making sure they have a high-quality internet connection. Is that something the Government are stressing at the moment?

[Baroness Vere of Norbiton (Con)]

The noble Baroness is quite right: we want people to travel the right amount, whatever that may be. The Government certainly have very ambitious plans when it comes to broadband connectivity. We want to roll it out to as many places as possible so that people can work from home if it is right for them and their employer.

[Lord Triesman (Lab) [V]]

My Lords, I think the noble Lord, Lord Krebs, is entitled to a slightly more detailed response. Can the Minister tell us what the Government’s plans are for the encouragement of the development of gigafactories in all parts of the United Kingdom and what the optimum number of electric vehicles would be by 2035 in order to meet the targets?

[Baroness Vere of Norbiton (Con)]

I will provide more information to the noble Lord, Lord Krebs, and share it with all noble Lords with an interest. The Government are dedicated to securing gigafactories, working with investors within the UK. We hope to have seven 20-gigawatt gigafactories—I am not sure I have that right—very soon. It is absolutely key to the future for electric vehicles.

--- Later in debate ---

[Baroness Ritchie of Downpatrick (Non-Afl) [V]]

My Lords, for the avoidance of doubt, will the Minister confirm whether hydrogen will be prioritised for hard-to-abate sectors such as shipping or heavy goods vehicles, rather than for areas that are relatively easy to decarbonise?

[Baroness Vere of Norbiton (Con)]

This entire plan has tried to recognise that there is no one size fits all when it comes to decarbonisation. As I have already set out, hydrogen will be absolutely key when it comes to heavy road freight, maritime, aviation and maybe rail. We will also look to battery to decarbonise much of the traffic currently on the road. We recognise that to do this we need the right supply of batteries, all the components that go into batteries and the skills to produce the vehicles.

[The Deputy Speaker (Lord Haskel) (Lab)]

My Lords, that concludes the list of questions.

Railways: East Coast Main Line

Baroness Vere of Norbiton Excerpts

Thursday 15th July 2021 Lords Chamber

[Lord Beith]

To ask Her Majesty’s Government what discussions they have had with London North Eastern Railway about proposals to change the frequency of services north of Newcastle on the East Coast Main Line.

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con) [V]]

My Lords, my department has had regular discussions with London North Eastern Railway about the May 2022 timetable proposals for the east coast main line. LNER and the department are committed to improving services for passengers served by this important route, and I encourage all noble Lords with an interest to engage with LNER’s public consultation to ensure that their views are considered.

[Lord Beith (LD)]

My Lords, the consultation document to which the Minister has referred says that the structure of the timetable for May 2022 is fixed, which leaves little opportunity for change to be made. Given that it involves halving Berwick-upon-Tweed’s hourly service to London to a train every two hours, with longer journey times, can she assure me that she will personally take steps to secure a proper review of these plans, which cannot be squared with the Government’s levelling-up agenda?

[Baroness Vere of Norbiton (Con) [V]]

My Lords, the Rail Minister has challenged the department to investigate all options for increasing regional connectivity. It is the case that Berwick-upon-Tweed will retain its current level of service, but there will be a change to the balance of the services. Yes, there will be fewer fast trains to London, but there will be more services to the Midlands and the south-west on CrossCountry.

[The Lord Bishop of Durham [V]]

My Lords, I declare an interest as a regular LNER user. I have a lot of sympathy with the noble Lord, Lord Beith. I recognise that connections from Darlington, Durham and Newcastle are northwards as well as southwards. Will the Minister comment on how local services such as those from Bishop Auckland to Middlesbrough and the possible reopening of Durham to Sunderland need to be invested in for the economic growth of the north-east as a whole?

[Baroness Vere of Norbiton (Con) [V]]

My Lords, this Government are investing billions of pounds in the railways, particularly in the north, through the Restoring Your Railway Fund and the other schemes that we are bringing through the rail network enhancements pipeline. Of course we are looking at regional connectivity of the type that the right reverend Prelate mentioned, and I will take his comments back to the department.

[Lord Mackay of Clashfern (Con)]

My Lords, as a resident of Inverness, I have a great interest in being sure that there will be one train each way from Inverness to King’s Cross in future.

[Baroness Vere of Norbiton (Con) [V]]

My Lords, my noble and learned friend knows that there are daily services at the moment between Inverness and King’s Cross, and I reassure him that they will and are proposed to remain in operation under the May 2022 proposals.

[Lord Sentamu (CB)]

My Lords, I declare an interest, in that I live a mile and a half from Berwick station. Most of us find these cuts to be stringent in terms of the daytime service, going from a train every hour to a slower train every two hours. Locals are shocked, as are businesses, tourism and residents—and I am one of them. Knowing that it is good to use the train instead of our cars because of the environment, how can we have confidence that these services, which are being so slashed, will be there for us to use them? Will the Government really look carefully at what is proposed and, since this is a public utility, will they as guardians protect it? I just hope that this is not the beginning of the resurrection of the spirit of Richard Beeching.

[Baroness Vere of Norbiton (Con) [V]]

I welcome the noble and right reverend Lord, Lord Sentamu, back to your Lordships’ House. In doing so, I recognise the concerns that he has raised about Berwick-upon-Tweed. I am sure that he will join many other people in responding to the consultation. It is true that we have had to make difficult trade-offs within the timetabling options, given the capacity available, but we are trying to maximise the benefit of the £4 billion that we have invested in infrastructure and rolling stock. The proposals on the table now actually increase revenues by £60 million a year, so we feel that we are getting good return on taxpayers’ funding.

[Baroness Quin (Lab) [V]]

My Lords, although the LNER proposals help my local station, Alnmouth, which I am pleased about, none the less I support the comments by my fellow Northumbrians, the noble Lord, Lord Beith, and the noble and right reverend Lord, Lord Sentamu. Surely, if levelling up means anything other than warm words, we need far quicker action on rail and road network investment north of Newcastle.

[Baroness Vere of Norbiton (Con) [V]]

The noble Baroness is quite right, in that we have an ambitious programme in the rail sector but also in roads. She will know that we have a programme of work on the A1 and on several projects around the north-east. She makes a very important point. The Government are well aware of the opportunities to invest in the north-east.

[Baroness Randerson (LD)]

My Lords, it is estimated that Berwick could see a cut of 72 trains a week. Does the Minister agree that this is totally contrary to the principles behind the Government’s transport decarbonisation plan and the principles behind levelling up? The root cause of the problems is inadequate infrastructure capacity, long past its date for upgrading. What are the Government going to do about that?

[Baroness Vere of Norbiton (Con) [V]]

The Government have already invested, and are investing, billions of pounds in the railway system, including in the north-east. The noble Baroness mentioned once again the changes to the services in Berwick, and I will not dwell on that because I believe I have covered it, but I will say that there always difficult decisions to make. For example, Edinburgh gets more services out of this, which improves union connectivity. Edinburgh will have additional, faster trains to London. There will be a four-hour journey time. That will be highly competitive versus taking an aircraft.

[Lord Rosser (Lab) [V]]

As part of these proposed timetable changes, which LNER says

“involve a series of trade-offs,”

services on the TransPennine Express between Newcastle and Manchester will be reduced from twice an hour to once an hour, and an increase in the frequency of services between Teesside, Sunderland and Newcastle will be postponed. Given that Northern Powerhouse Rail has still not been confirmed, is this not further evidence that the Government are backing off from increasing direct interconnectivity of northern cities? Is it not unfortunate that, in the trade-offs, local and regional services would lose out to increase services to London and the south-east?

[Baroness Vere of Norbiton (Con) [V]]

I am not entirely sure that the evidence supports the noble Lord’s last comment, but I accept that there are difficult trade-offs. Railway capacity is not expandable immediately, so one always has to work with the capacity available. We have spent £4 billion on upgrading the infrastructure and the rolling stock. We must make sure that we use that capacity to best effect. As I have already said, there would be a significant increase in revenues from these proposals.

[Baroness McIntosh of Pickering (Con)]

The LNER services southwards from Northallerton, my local station, and Darlington are being severely cut in the 2022 timetable. Darlington to Stockton was the first railway line in the country and very much serves the levelling-up programme. Effectively the Government own LNER, so please could they help to make sure that the effective service we currently have carries over to 2022?

[Baroness Vere of Norbiton (Con) [V]]

As my noble friend will know, there will be some service changes. She has outlined what they are, as have many other noble Lords. Other areas will see an increase in services. I reiterate that there is an opportunity to respond to the consultation. I know that my colleague in the department is pressing Network Rail, the train operating companies and our officials very hard to make sure we can retain as much regional connectivity as possible.

[Lord Berkeley (Lab) [V]]

My Lords, following the remarks of my noble friend Lord Rosser, is the Minister aware of the comment from Transport for the North in Rail magazine, which states that the east coast mainline revisions mean that the north-east is losing trains to Leeds, Manchester and Edinburgh in favour of trains to London, and that this does not reflect the levelling-up agenda? Does she agree it is important to focus on the local and regional services, where the demand is greatest?

[Baroness Vere of Norbiton (Con) [V]]

Unfortunately, I did not see that comment, as I do not read Rail magazine; potentially, I should. We have to reach a balance here. We cannot focus on only one type of travel. What we and LNER have tried to do is get the right balance to ensure we are meeting customer demand and providing value for money for the taxpayer.

[Lord Foulkes of Cumnock (Lab Co-op)]

My Lords, the 9.30 am from Edinburgh to King’s Cross yesterday, on which I was due to travel, was cancelled. The stories going around were that this was because there are continuing problems with cracks in Azuma trains, which would be extremely worrying. Can the Minister confirm whether this is the case?

[Baroness Vere of Norbiton (Con) [V]]

I can confirm that safety is paramount on our railways. At the moment, there is just one LNER set out of service. Repairs are obviously ongoing and will probably be finished by the end of the summer. I reassure noble Lords that this is being done in a fashion that is safe and that minimises disruption for passengers.

[The Lord Speaker (Lord McFall of Alcluith)]

My Lords, all supplementary questions have been asked. We now come to the second Oral Question.

Road Vehicle Carbon Dioxide Emission Performance Standards (Cars and Vans) (Amendment) (EU Exit) Regulations 2021

Baroness Vere of Norbiton Excerpts

Wednesday 14th July 2021 Lords Chamber

Moved by

[Baroness Vere of Norbiton]

That the draft Regulations laid before the House on 8 and 21 June be approved.

Relevant document: 8th Report from the Secondary Legislation Scrutiny Committee. Considered in Grand Committee on 8 and 12 July.

Motions agreed.

Merchant Shipping (Cargo Ship) (Bilge Alarm) Regulations 2021

Baroness Vere of Norbiton Excerpts

Tuesday 13th July 2021 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con) [V]]

My Lords, I am grateful to the noble Lord, Lord Berkeley, for providing the opportunity to debate these regulations—or, more correctly, the timing of the regulations and the circumstances in which they have now been made. I thank all noble Lords for their contributions. I will focus on the regulations and matters relating to them and will write with further details, particularly on the excellent points raised by my noble friend Lord Patten, and the very detailed questions from the noble Lord, Lord Rooker, and many other noble Lords.

I turn first to the content of the statutory instrument. The Government are absolutely committed to ensuring the safety and welfare of seafarers, which I believe is reflected in the volume of regulations that the department brings to your Lordships’ House. These are but one of a set of such regulations that came into force on 30 June 2021. We know that they increase safety by introducing a requirement for cargo vessels of 24 metres or more in length and under 500 gross tonnes to fit bilge alarm systems. I will not go into further detail around that, so let us turn to the background to the regulations.

The regulations fulfil the Marine Accident Investigation Branch, or MAIB, recommendation 2009/141. It was raised following the sinking of the grab hopper dredger “Abigail H”, as many noble Lords noted. Many noble Lords also noted that there were no fatalities as a result of this incident, which was, of course, very fortunate. To prevent a less fortunate outcome, these regulations make it mandatory to install the bilge alarm systems that were advised in marine guidance note 425, which was issued in September 2010 in response to the MAIB’s 2009 “Abigail H” incident report.

There was a consultation on these regulations. It was a 10-week public consultation from 2 October to 10 December 2020 via the GOV.UK website. There was a press release announcing the public consultation, which went to marine trade press and industry press. Notice of the consultation was posted on the MCA’s Twitter account. Of course, we cannot force people to respond to a consultation; sometimes they do not for any number of reasons. It may be that the people who run these vessels are very focused on it and therefore do not want to or do not have time to respond to a consultation. But these regulations are not controversial, so it does not surprise me that we did not get a massive response to the consultation.

The regulations improve the safety of seafarers and were long expected. It is worth reinforcing that the guidance to introduce bilge alarms had been in place since 2010. In the pandemic we have done many things to protect public safety by guidance rather than mandating in law, so I do not feel that, given that the guidance was in place for such a long time, getting these regulations in place now was as big an issue as potentially noted by noble Lords today.

But I will comment on the delay, because it is right that I do so. I accept that there has been a delay in implementing this mandatory requirement, but I remind noble Lords that the guidance was out there a very long time ago. The delay in making that guidance mandatory reflects the thorough and complex nature of the process, as well as the wide reach of regulations that the MCA is responsible for, and the need to continually review the priorities of regulatory changes in order to meet our international obligations and domestic safety and environmental obligations. In this case, the potential risk to the 425 vessels and their crews, to which these regulations apply, and the fact that only two similar incidents occurred after this guidance was published, meant that, as priorities changed, including as a result of the UK’s exit from the EU, other regulatory developments took precedence.

Given that the guidance was issued back in 2010, and the industry was advised and consulted on the development of this mandatory guidance, I believe it was reasonable to expect that a good proportion of the 425 vessels referred to would have already had bilge alarm systems fitted prior to the regulations coming into force, although we cannot know that. Although the guidance issued was not mandatory, we expect responsible owners and operators to take guidance from the MCA very seriously, and that they would look to enhance the safety of their vessels even in the absence of a mandatory obligation.

Further, of the nine incidents to which the noble Lord, Lord Berkeley, referred, seven occurred prior to the publication of the MAIB report into the “Abigail H”. Of the remaining two incidents, accident investigation data indicates that both were minor and neither needed investigation by the MAIB. There have been no further similar incidents.

The noble Lord, Lord Rosser, said that 425 vessels was a relatively small number. It is a small number in the context of the 63,230 vessels currently listed on the UK Ship Register. Furthermore, many of the cohort of 425 vessels would be of lower risk anyway, since crews do not customarily sleep on board or because they would already have had the required equipment fitted. I also point out that the MCA will not customarily collect information on the number of vessels with this required equipment on board, but it will monitor compliance with this requirement through the survey and the inspection regime it usually carries out.

The noble Lord, Lord Berkeley, mentioned how cheap these systems are. I do not know which website he was looking at, because I have slightly different figures. I believe the cost of installing a bilge alarm is roughly £2,500. That is what we assumed in the impact assessment. Given that, I possibly would not buy one for £100, but it will of course vary from vessel to vessel. To verify this cost, the first question of the consultation specifically asked for evidence of the costs associated with the installation of the water level detectors and bilge alarms needed to comply with the regulations. But, as noted previously, we did not receive very much response to that consultation, and I suspect that was because the industry had either already complied with the regulations or knew that they were coming down the track.

I turn to maritime regulations more broadly. The maritime sector is highly regulated and has to take into account international obligations, amendments to previous EU regulations and the development of domestic legislation. Each strand is usually complex and highly technical and requires transposing to domestic law by way of secondary legislation, which is both time- consuming and resource-intensive. The noble Baroness, Lady Randerson, assumed you could knock off a negative SI in an afternoon. That is absolutely not the case; it takes many weeks and months of intensive work to ensure that even a negative SI, which will not necessarily receive parliamentary scrutiny, is up to the standards we would expect for our statute book.

Keeping pace with international amendments, often issued annually, is extremely challenging and results in many of the domestic SIs always being in need of updating. So, over the years, priority has been given to the implementation of the EU directives and regulations to avoid EU infraction proceedings, and this has resulted in the backlog of international obligations, with our domestic regulations becoming out of step with the latest requirements.

The MCA has recently provided a progress update to the Secondary Legislation Scrutiny Committee on its road map of international maritime legislation that is required to be implemented into the UK domestic regime by SI; it should all be completed by the end of 2023. Significant progress has already been made. We have made 12 SIs in 2020 and early 2021, and a further 10 proposed SIs are well progressed and are either at consultation stage or the final stages prior to making and laying.

I trust that noble Lords agree that the introduction of these regulations is important to ensure the safety of crews on board small cargo vessels—indeed, I will take that as a given, because I believe that they do. I hope they will also appreciate that we have to continually assess our priorities to meet our international and domestic obligations, given the availability of resources within the department, within government and, of course, within Parliament.

The MCA has commenced an ambitious programme of regulatory updating which, in the last two years, has reduced the number of outstanding recommendations by the MAIB by 30%. This leaves 14 recommendations which are actively being worked on at present, eight of which will be completed later this year. I hope I have been able to explain the Government’s position and I therefore ask noble Lords to vote against this regret Motion.

Railway (Licensing of Railway Undertakings) (Amendment) Regulations 2021

Baroness Vere of Norbiton Excerpts

Monday 12th July 2021 Grand Committee

Moved by

[Baroness Vere of Norbiton]

That the Grand Committee do consider the Railway (Licensing of Railway Undertakings) (Amendment) Regulations 2021.

Relevant document: 8th Report from the Secondary Legislation Scrutiny Committee

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con) [V]]

My Lords, these draft regulations will be made under the powers conferred by the Channel Tunnel Act 1987. They will make the necessary amendments to domestic rail operator licensing legislation to enable the implementation of a bilateral agreement between the UK and France on the recognition of rail operator licences for the Channel Tunnel and cross-border area. This will support the continued smooth operation of Channel Tunnel traffic when the temporary arrangements expire on 30 September 2021.

The regulations will also provide long-term certainty, clarity and confidence to cross-border operators, both current and prospective, regarding the future operator licensing framework for the Channel Tunnel. They will apply to England, Scotland and Wales, although the main operative provisions will, in practice, apply only to the Channel Tunnel and cross-border area. The regulations are subject to the affirmative procedure, as set out under the Channel Tunnel Act, and Schedule 8 to the European Union (Withdrawal) Act 2018.

The regulations amend the 2005 railway operator licensing regulations, which updated the rules for the licensing of passenger and freight train operators in Great Britain established under the Railways Act 1993 by introducing a new EU form of licence. This was done to reflect changes to EU operator licensing laws. The 2005 regulations introduced the requirement for operators running services on the basis of the new EU form of licence in Great Britain to hold a statement of national regulatory provisions, or SNRP. SNRPs supplement licensing requirements, covering, for example, the provision of information to passengers, membership of industry bodies and third-party insurance conditions.

The regulations also amend the Railway (Licensing of Railway Undertakings) (Amendment etc.) (EU Exit) Regulations 2019, which were introduced to correct deficiencies in the 2005 regulations arising from the UK’s exit from the EU, to ensure that they continued to operate effectively post exit. As well as converting the EU form of licences issued by the Office of Rail and Road, the ORR, to “railway undertaking licences”, the 2019 regulations provided for the continued recognition in Great Britain of European licences for a period of two years from exit day—in other words, until 31 January 2022.

Following the end of the transition period, there is no longer automatic mutual recognition of licences between the UK and the EU. The recognition of UK licences for the Channel Tunnel is currently provided for by an EU contingency regulation that expires on 30 September 2021. These operator licensing regulations, and the proposed bilateral agreement that they implement, will ensure the continued recognition of operator licences for the Channel Tunnel when the current temporary arrangements expire. This will have a significant positive impact on cross-border operators, by providing long-term certainty on the licensing requirements for the Channel Tunnel. It will also reduce the administrative burdens on them, by enabling them to operate in the Channel Tunnel and cross-border area without the need to hold two separate licences—that is, one issued in Great Britain and one issued in the EEA.

Under the regulations, EU licences will be recognised up to the first border crossing station in the UK only, which is Dollands Moor for freight and Ashford International for passenger services. This mirrors the extent of the recognition of UK licences in French territory under the proposed bilateral agreement, and so ensures equivalence.

The regulations, and by extension the agreement that they will implement, are fully compatible with the Government’s fundamental red lines in the Channel Tunnel negotiations with France, which are to support the continuation of cross-border services while conferring no role for the EU courts or the European rail agency in UK territory and avoiding dynamic alignment with EU law.

Information-sharing provisions are included in the regulations to give effect to requirements of the proposed bilateral agreement. Under these requirements, the ORR will be able to share information with the equivalent French authorities in relation to, for example, any doubts as to the validity of a licence or compliance with licensing requirements on the part of either a European licence holder operating a Channel Tunnel service in Great Britain or an ORR-licensed operator operating a Channel Tunnel service in France.

The regulations will also ensure a level playing field regarding the licensing requirements for operators on the French and UK sides of the Channel Tunnel and cross-border area by disapplying the current UK requirement to hold an SNRP for EU-licensed operators of Channel Tunnel services, up to Dollands Moor or Ashford International only, and ensuring that no equivalent additional licensing requirements will be in place for UK-licensed operators on the French side—it will be the same either side. Again, this will support the recognition of those licences on a fully reciprocal basis under the bilateral agreement.

To conclude, the regulations will reduce administrative burdens on cross-border operators and enable them to plan their businesses into the future with confidence. Most importantly, they will support the long-term continued smooth operation of cross-border services through the Channel Tunnel. I commend these regulations to the Committee.

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[Baroness Vere of Norbiton (Con) [V]]

My Lords, I thank all noble Lords for their contributions to this short debate. There were lots of warm wishes for continental train travel; I add mine to them. We all enjoy going on the train, whether it be in a vehicle or on Eurostar. We obviously closely monitor the impact of Covid on Eurostar—I know that my noble friend Lord Kirkhope was interested in this—and all transport services. All being well, I hope to see their passengers and other customers return soon.

Turning to the regulations under consideration today, I start by providing a bit more colour about the status of the discussions with France; I think all noble Lords were interested to hear how we were getting on. My officials have been in active and regular discussion with their French counterparts since the beginning of the year to secure this bilateral agreement on the recognition of the rail operator licences for the Channel Tunnel and the tiny cross-border area either side of it. I assure the Committee that the talks have been highly constructive. Agreement has been reached in principle at the technical level and it is now subject to final legal checks. It is expected that the agreement will be signed before the end of September, then provisionally applied by both sides for a limited period to support the continuation of services in the immediate term once the current EU contingency measure expires.

The agreement will still need to be ratified through the UK Parliament; this will of course be done as soon as possible thereafter. It will be done via the Constitutional Reform and Governance Act 2010 process, rightly giving Parliament the opportunity to scrutinise the text in full before it is ratified. I am not sure whether this will reassure the noble Lord, Lord Rosser, but it will certainly inform him: we have been clear with our French counterparts that the regulations will not receive ministerial signature and become law unless and until the related bilateral agreement is signed by France or, failing that, a EU contingency measure is extended pending the final conclusion of the agreement. Something will thus have happened by 30 September to maintain the smooth running of services. It does not strike me that it would be in anyone’s interest for that not to occur.

In the extraordinarily unlikely event that France does not ratify the signed agreement, for whatever reason, we could also revoke these regulations in future. There is no risk that the UK will continue to recognise EU licences indefinitely without that being fully reciprocated by France. We do not think that we will end up in that situation. We absolutely believe that the agreement will be signed and that we will be able to put in place in the immediate term while it is being ratified by the UK Parliament.

On the disapplication of SNRPs, the disapplication of the requirement to hold a SNRP in the UK half of the channel and the immediate cross-border area will ensure equivalence with the licensing requirements applicable to UK operators on the French side, so it will be the same. Given the extremely limited scope of the regulations, disapplication of the SNRP requirement is expected to have almost no impact in practice. It is therefore considered acceptable in the interests of reciprocity. In practice, there are no current operators to which this disapplication will apply; I know this was of interest to the noble Lord, Lord Rosser. All the cross-border operators—the two freight operators, GB Railfreight and DB Cargo UK, and the passenger operator, Eurostar—do so on the basis of a GB licence. They are scooped up in the SNRP requirement anyway by having a GB licence.

The noble Lord, Lord Rosser, also asked whether there are any credible prospective operators. I am not aware that there are any at this moment in time but, should one wish to come forward, we would obviously welcome its involvement in the market. Any future operator of rail services, if it was an EEA operator that went beyond either Dollands Moor or Ashford International, would in any event have to have an ORR-issued railway undertaking licence, so they too would then be subject to the SNRP requirement. We believe that the situation we have works very well. It is time to be pragmatic and, in practice, it makes no difference.

On stakeholder views and the impact on operators, the amendments in these regulations will in reality have a very limited impact on cross-border operators. Indeed, the measures being introduced will have a significant positive impact in that they will be able to continue the smooth running of cross-border operations. We did a survey on the draft regulations and sent it to Channel Tunnel stakeholders. DB Cargo, Eurostar International Ltd, Eurotunnel, the Rail Delivery Group, the Rail Freight Group and High Speed 1 Ltd responded; all were highly supportive of the regulations and recognised the importance of securing this continued smooth running. A couple of concerns were raised but they were outside the scope of the regulations or related to the geographic scope of recognition in the UK. Obviously, we have chosen to mirror that closely to what they do on the French side, where you go up to the first station for either passengers or freight; that is the cross-border area, so to speak. We continue our discussions with these stakeholders and keep them informed as to how the bilateral negotiations with France are going.

To give noble Lords a quick heads-up, it is also worth mentioning that this is just one element of what we are discussing with the French at the moment. We are also discussing train driver licences, safety certificates and the overarching safety rules applicable to the Channel Tunnel. Again, these discussions are going well. We will bring more regulations to your Lordships’ House in the autumn and we will have the opportunity to scrutinise them in full. In any event, there are robust and effective contingency agreements and arrangements in place for those matters at the moment.

My noble friend Lord Kirkhope asked a question about services from Europe to the north. I will write a letter to him, if I may, because then I can explain more generally our plans for rail in the north and how they might link into European services.

The noble Baroness, Lady Randerson, asked about pre-Brexit and post-Brexit freight volumes. I do not have that information to hand, unfortunately; again, I will happily write to her.

If I have missed anything else, I will ask officials to look through Hansard very carefully and make sure that they pick up everything I have forgotten.

Motion agreed.

Motor Fuel (Composition and Content) and the Biofuel (Labelling) (Amendment) (No. 2) Regulations 2021

Baroness Vere of Norbiton Excerpts

Monday 12th July 2021 Grand Committee

Moved by

[Baroness Vere of Norbiton]

That the Grand Committee do consider the Motor Fuel (Composition and Content) and the Biofuel (Labelling) (Amendment) (No. 2) Regulations 2021. Special attention drawn to the instrument by the Secondary Legislation Scrutiny Committee, 8th Report.

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con) [V]]

My Lords, the purpose of these regulations is to introduce E10 as standard petrol across Great Britain while ensuring that the current E5 grade remains available to those who need it. E10 petrol contains up to 10% renewable ethanol, double the amount that can be blended into today’s E5 grade. Increasing the renewable ethanol content can reduce annual carbon dioxide emissions by 750,000 tonnes, helping us to meet our ambitious climate targets.

The regulations also update labelling requirements that must accompany the sale of E10 to ensure that fuel consumers have the right information. Finally, the SI makes some necessary amendments to the Motor Fuel (Composition and Content) Regulations 1999 to correct for deficiencies and replace references to EU directives following the UK’s exit from the European Union.

Introducing E10 allows us to cut carbon emissions from cars, motorbikes and other petrol-powered equipment in use today. This is done by simply increasing the limit to which renewable fuel can be blended into standard petrol. It is one of the very few measures available to us today with an immediate impact.

E10 is a proven fuel that is already in use across the world, including in France, Belgium, the Netherlands and the US, to name but a few. We also have a valuable bioethanol industry in the UK that will benefit from increased demand; indeed, following our policy announcement, one large facility operator has already announced that it is recommencing production. These facilities play important roles 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 feed wheat used to produce ethanol. By-products, such as high-protein animal feed, are used by livestock farmers in place of soya products. It is vital to support these industries as we endeavour to build back greener, with low-carbon industrial hubs crucial to our path 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, because the RTFO allows for different ways to meet targets, it has proven insufficient to remove market barriers for the introduction of specific fuel blends such as E10.

As RTFO targets have increased over the past three years, fuel suppliers are now blending very close to the 7% biodiesel limit for standard diesel and 5% bioethanol limit for standard petrol. If we want to increase renewable blending further, we need to take additional measures now. While most diesel vehicles are approved to use only a maximum of 7% biodiesel, known as B7, the vast majority of petrol vehicles—over 95%—are cleared to use E10 petrol. Our immediate focus is therefore on E10.

Fuel suppliers and retailers have made it clear to us that, for technical reasons related to vapour pressure, the best time to introduce E10 is at the same time as the change from summer to winter fuel specification. This happens every September. To ensure we reap the full greenhouse gas benefits of E10 introduction, we have consulted separately on increases to the RTFO from January 2022, allowing for a short transition period. We will announce the next steps on the target increases soon.

While 95% of all petrol vehicles can use E10, some older vehicles cannot. That is why this instrument includes provisions to keep the current E5 petrol available in the higher octane super grade. The super grade is available nationwide but in areas with less coverage, such as in parts of Scotland, exemptions are available to ensure that everyone can access the fuel they need. We have also launched a comprehensive communications campaign involving local radio, roadside posters, social media and information on the forecourts. This informs motorists of the changes to petrol that will happen this summer and directs vehicle owners to the online compatibility checker, ensuring everyone can be clear on the right fuel for their vehicle or equipment.

The SI also makes amendments that are required following our departure from the European Union. We have replaced references to EU legislation with references to domestic legislation to ensure the ongoing operability of the fuel standards. It is also important to note that, as a result of this amendment, all petrol supplied in the UK will still meet the same standards as apply across Europe.

In proposing this statutory instrument, the Government have carefully considered a balance of interests. It recognises the need to maximise our efforts to decarbonise vehicles on the road today and support our domestic renewable fuel industry, while maintaining access to a suitable petrol grade for all. I believe introducing E10 petrol this September strikes that balance. I beg to move.

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[Baroness Vere of Norbiton (Con) [V]]

I thank all noble Lords for their contributions to today’s debate. I also thank the Secondary Legislation Scrutiny Committee for raising various matters, a number of which have been echoed by noble Lords today. Most recently the noble Lord, Lord Rosser, mentioned that the impact assessment was not published alongside the draft SI. That impact assessment was already a public document, but we will certainly take that away and I hope that will not happen again. Perhaps we should make sure that we signpost noble Lords to previously published documents where we possibly can.

A number of issues have been raised, and I will of course write with further details if I am unable to cover them in my remarks. This is very much a question of balance; there is an awful lot of balance to be had here. Anybody working in the field of transport knows that there is no silver bullet to solve carbon emissions in transport. The solution will be in a large number of interventions, some of which will have to happen over a large period of time. We will be publishing the transport decarbonisation plan fairly soon, and that will set out the firm foundation on which our thinking is based.

I shall start by addressing the wider focus on E10, which is the last low-hanging-fruit option for renewable fuel blending. Again, it is about balance: it works alongside the RTFO. There are literally no other short-term options for reducing emissions from road transport immediately, so we have to consider not only the balance of what the intervention is but how quickly it can achieve the goals that we need to achieve. We know that using waste biodiesel blended from fossil diesel saves more carbon dioxide per litre than bioethanol. That is true but we are up to the limit on biodiesel—up to 7%. Our only option now is therefore to increase petrol to E10. We also know that the vast majority of cars can use E10 successfully.

The interaction with the RTFO is really important. I noted that there are many reasons why the gap has arisen between the E10 implementation and the changes to the RTFO, including the technical reasons relating to the vapour pressure and the switchover of the type of petrol that is sold on the forecourt. However, we also know that the RTFO target can be changed only at the start of each calendar year because it is a market-based scheme; participants will of course plan their compliance through the whole of the year, so if we changed it mid-year it would be the same as a retrospective change and therefore deeply unwelcome. So the introduction of E10 in September, followed by increasing the targets in January, allows for a transition phase. We expect that during this phase blending will be ramped up, and that existing fuel stocks will be used up.

It is worth noting, as did the noble Lord, Lord Rosser, and the noble Baroness, Lady Randerson, that the fuel for E10 can be from ethanol of 5.5% upwards. This flexibility is intentional to ensure that the overall RTFO targets can be delivered cost-effectively, based on market prices for different biofuel options, and to allow for seasonal and geographic variations. There would be no point in mandating immediately a much higher percentage for blended petrol.

Furthermore, the changes were made under two different pieces of legislation and different powers, so that has had an impact on how we can introduce this measure. There is of course a need for a comprehensive communications campaign, so there was always a need too for a date, at some stage in future, in order that consumers are well aware of what they will be buying when they go to the pumps in September.

I turn to the carbon savings in the four-month transition period between the introduction of E10 and the increase of the RTFO targets at the beginning of next year. The impact assessment did not specifically model the impact of the four-month period between these two interventions. A snapshot of the annual modelling suggests costs of around £29 million, with an emissions-saving reduction of around 0.07 megatonnes of carbon dioxide, but that shortfall in emissions savings —if it happens, because again these are assumptions—would be recouped by the end of January next year following the RTFO target rise. As I say, there will be a net overall carbon dioxide benefit of around 0.73 megatonnes by the end of 2022.

Exactly how the suppliers meet their RTFO obligations at the end of 2021, and the speed with which they ramp up the ethanol blending, is unknown due to commercial sensitivities. However, we can say with certainty that by introducing E10 we are maximising the available capacity for biofuel blending in the coming years and providing the space to increase the RTFO targets as a step change in 2022.

Noble Lords have noted that biofuels produce different emissions reductions from their fossil fuel comparator. The noble Lord, Lord Lucas, mentioned the impact of blending biodiesel. It is often made from used, or waste, cooking oil and saves more carbon dioxide per unit of energy delivered than for ethanol, although the difference is relatively small. As a result, where ethanol displaces waste biodiesel in the fuel mix delivered under the RTFO, the actual emission saved can be reduced. That is why this has to happen along with the changes to RTFO targets from the start of next year; again, it is all about balance.

Turning to the costs and the impact on the motorist, although we believe blending the petrol at E10 is unlikely to alter the pump price of standard 95 octane petrol, as the noble Baroness, Lady Randerson, pointed out, drivers might experience a small reduction in miles per gallon. This will vary quite significantly by vehicle and the specific fuel blend used by that supplier, as well as the driving style. The overall reduction in miles per gallon is similar to driving with the aircon on, or with underinflated tyres.

Based on simplified assumptions and a potential worst-case scenario, the impact assessment estimated that each litre of E10 could contain around 1.7% less energy, which could result in increased fuel costs of around £70 million per annum. However, the industry has also suggested that there could be a change to the energy content, because different blends have different energy content according to the constituent parts of the petrol. This assumption could therefore be very much the worst-case scenario.

On incompatible vehicles, we again feel that there will be a very limited impact. Of the 5% of vehicles that are currently incompatible, the vast majority are classic or cherished vehicles, so fewer than 1% of the cars that are everyday run-arounds cannot use E10. As I have mentioned, we will make sure that E5 petrol will be available to owners of incompatible vehicles. It should also be remembered that those who own classic or cherished cars often use the higher super grade anyway, so they will see no difference in price. Again, the estimate of £70 million that might be added to fuel costs is very much a worst-case scenario. It assumes that all incompatible vehicles currently do not use the super grade, and we know that is not the case.

I turn to the bioethanol sector. The noble Baroness, Lady Randerson, suggested we were being led by the nose by industry. There are two different industries here and they both want it, while being on slightly different sides of the coin. We have the bioethanol industry and the traditional fossil fuel suppliers, and those suppliers want us to give them a kick because in Germany they did not give the industry a kick and have not had a very successful rollout of E10.

I have already mentioned that the bioethanol sector is a valued sector in this country and that, for the time being, it is essential that we look at all different ways of reducing our carbon emissions. Bioethanol is one of those and will provide highly skilled jobs and support the agricultural community, but I accept my noble friend Lord Lucas’s point that environmental concerns are also critical. Biofuels, supported under the RTFO, comply with strict sustainability and minimum greenhouse gas savings criteria. There are protections for biodiversity and land use change, such as deforestation. I will probably write more in a letter because I am aware that I am running out of time.

These regulations are about balance. We need to balance the need to maximise our efforts to decarbonise vehicles on the road today and support our domestic renewable fuel industry, while maintaining access to a suitable petrol grade for all. I believe that we have achieved that balance and that by introducing them now, with changes to the RTFO in January, we will achieve our ambitions.

Motion agreed.

Road Vehicle Carbon Dioxide Emission Performance Standards (Cars and Vans) (Amendment) (EU Exit) Regulations 2021

Baroness Vere of Norbiton Excerpts

Thursday 8th July 2021 Grand Committee

Moved by

[Baroness Vere of Norbiton]

That the Grand Committee do consider the Road Vehicle Carbon Dioxide Emission Performance Standards (Cars and Vans) (Amendment) (EU Exit) Regulations 2021.

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con) [V]]

My Lords, these draft regulations will be made under the powers conferred by the European Union (Withdrawal) Act 2018. The regulations amend Regulation 2019/631 and Regulation 114/2013, both as amended by prior EU-exit SIs. Regulation 2019/631 sets carbon dioxide emission standards for new cars and vans in Great Britain, while Regulation 114/2013 establishes the rules for applying for a derogated target.

An EU-exit SI amended the EU regulations and established car and van carbon dioxide emission standards in Great Britain only, as the regulations were originally listed in Annexe 2 of the Northern Ireland protocol, meaning that Northern Ireland would continue to be captured by the EU regime. The current fleet average carbon dioxide emission target for cars is 95 grams of carbon dioxide per kilometre, and for vans it is set at 147 grams of carbon dioxide per kilometre.

Manufacturers are set individual targets based on the mass of their fleet compared to the average mass of the entire Great British fleet. The heavier a manufacturer’s vehicle, the higher their target, and vice versa. All targets average out to either of the headline targets as aforementioned. The target for both cars and vans will tighten further in 2025 by 15%, and in 2030 by 31% for vans and 37.5% for cars, when compared with the 2021 baseline. Fines are levied for non-compliance with these targets.

The regulations allow for flexibilities to be granted to help manufacturers in certain circumstances to reach their target. One of these flexibilities is derogations. Smaller manufacturers can apply for a derogated target which is more in line with their technical and economic capability. Pooling is another flexibility. This is where manufacturers can join together for the purposes of the regulation and will be given one target. Manufacturers can also receive credits for using carbon-dioxide-reducing technologies in their vehicles that are not taken into account during the carbon dioxide test procedure, such as LED bulbs. More credits can be earned, up to a certain limit, when a manufacturer puts more zero and low-emission vehicles on the market. These are called super-credits and are available across 2021 and 2022.

Regulation 114/2013, as amended by two previous EU exit SIs, is a tertiary piece of legislation which further sets out the rules and procedures for manufacturers when applying for a derogation. The withdrawal Act retained EU Regulations 2019/631 and 114/2013 in their entirety on exit day in UK law. These were amended by a prior EU exit SI, 2020/1418, and set obligations in GB only, due to the Northern Ireland protocol. The draft instrument under consideration today reflects changes made to the Northern Ireland protocol by the Joint Committee. On 18 December, the EU regulations were removed from Annexe 2 of the protocol, leaving Northern Ireland without any car and van carbon dioxide regulation. This instrument will therefore extend the domestic regulations to Northern Ireland from 1 September, in effect creating a UK-wide regime.

The amendments throughout the regulations primarily replace “GB” with “UK”. However, a provision was added stating that new car and van registrations in Northern Ireland prior to 1 September were out of scope of the regulations, including all target calculations. This SI is essential to ensuring that new cars and vans in Northern Ireland are subject to the same carbon dioxide emission standards as elsewhere in the UK.

The regulations are necessary to ensure that the UK achieves its net-zero ambitions and legally binding carbon budgets. I beg to move.

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[Baroness Vere of Norbiton (Con) [V]]

I thank all noble Lords for their consideration of these draft regulations. I will add a bit more colour to the issues relating to the regulations and I will come on to other matters if I can; otherwise, I will write.

First, I point out in relation to the devolved nations and consultation that, because this is a Northern Ireland regulation, we obviously engaged with Northern Ireland officials on our plans to regulate carbon dioxide emissions and my colleague, Minister Maclean, sent a letter to the Secretary of State for the Northern Ireland Department for Infrastructure, Nichola Mallon, informing her of this SI being laid on 8 June.

Let us go back to how we got into this situation. It was because the regulations were removed from the Northern Ireland protocol at the last minute. This was a decision taken by the UK-EU Joint Committee; therefore, when we did the previous EU exit SI, it was drafted on the basis of agreed international law at that point, and the regulations therefore covered only GB. It was anticipated that Northern Ireland would be in the protocol and then obviously that turned out not to be the case. Both the UK Government and the European Commission formally agreed that these regulations were not needed, so it was not a decision of the UK Government alone. Because this decision came relatively late, as noble Lords will know—it was on 18 December —we were unable to lay an SI to extend the regulations to Northern Ireland prior to the end the transition period in 2020. I accept that that created a gap in the law, which is what noble Lords are being asked to rectify today.

The noble Lord, Lord Berkeley, asked why it took so long—he said it more nicely than that. The extent of the gap in the law—the setting of the date of 1 September, which is the date when these regulations would come into force—was dependent on two factors. The first is that the process of laying an SI takes many months and cannot be done very quickly, especially when it needs consultation with stakeholders. The second is the impact on manufacturers and their views following a consultation. The date of 1 September is actually a fairly short delay to what would otherwise have been achieved, and it provides manufacturers with a certain date from which the changes will take place and time for them to adapt. The need for this was voiced by stakeholders at a VCA and DfT workshop, where concerns about the regulations coming into force immediately were expressed.

Manufacturers were essentially given very short notice of the Government’s intention to change the regulation for Northern Ireland, which would have meant that new cars and vans sold in Northern Ireland would start counting towards their domestic targets immediately, but fleet compositions are typically set out well in advance. They would not have known about or been able to plan for the new regulatory regime. Northern Irish registrations, and the resulting carbon dioxide emissions, as a share of UK totals are far more significant than the same registrations in the EU. Therefore, extending the regulations to Northern Ireland could have impacted on manufacturers’ emissions.

In addition, a key concern for manufacturers is their ability to forecast their sales for the year. Manufacturers may know the vehicles they plan to sell in the UK, but they are not in control of where or when during the year they will be sold. For example, if in a particular year more electric vehicles were sold in the first half than the second, and if you suddenly included Northern Irish vehicles from, say, July onwards, that might artificially distort the manufacturers’ average emissions and you would therefore get a distorted image. Essentially, if we use the registration data from 1 September instead, the likelihood of that distortion falls away and the industry has time to plan and adapt.

Although it is the case that carbon dioxide emissions from newly registered cars and vans in Northern Ireland from 1 January to 31 August will not count towards any carbon dioxide emission targets, it should be noted that manufacturers generally do not create vehicle models or specifications for individual countries; they create products for larger geographic markets and have strategies for them. As a result, the vehicles sold in Northern Ireland so far this year will have been heavily influenced by both the domestic and the EU carbon dioxide regimes, which currently remain aligned.

I believe that the fears of both the noble Lord, Lord Berkeley, and the noble Baroness, Lady Jones, are unfounded. It is useful to note that the sales of new cars and vans in Northern Ireland represent roughly 2.2% and 1.9%, respectively, of the UK’s total market. So even if higher-emitting vehicles have been sold in Northern Ireland, we expect that there would be an incredibly minimal change to greenhouse gas emissions. The data on the number of vehicles is not currently available. I cannot remember who referred to this—I believe it was in a conversation about air quality—but it is worth noting that the regulations cover only carbon. All cars sold must comply with particulate limits, which are obviously the contributor to poor air quality.

Thinking about the administration and enforcement of the regulations, their administration will be very much as the EU procedures are currently, with the exception, of course, that manufacturers will work with the Vehicle Certification Agency, the VCA, as the enforcement body, rather than the EU equivalent. At the moment, data is passed to the DVLA, as it will be in future, then it will get to the VCA, which is the enforcement body for the regulations. Every year, it will process the registration data and calculate the carbon dioxide performance and targets for the previous year for each manufacturer.

Any manufacturer exceeding that target when the dataset is published in October has to pay an excess emissions premium and has 28 days to pay or appeal it. That is what happens for new cars—that is, cars at first registration—but the noble Baroness, Lady Randerson, mentioned the Volkswagen emissions issue. The regulations also allow for random verification of carbon dioxide emissions from vehicles in service. In this case, it is the DVSA that conducts random testing on new and, sometimes, used cars to ensure compliance. Also, all new vehicles are now required to store that data on board.

Many noble Lords asked me to go far beyond the regulations, and I would not want to steal the thunder of two bits of government activity which are coming very soon. We recognise that the retained carbon dioxide targets are not currently aligned with our commitments to phase out new petrol and diesel vehicles by 2030, nor, obviously, with the 2035 zero emissions at the tailpipe ambitions. We will be publishing the Green Paper on the UK’s future carbon dioxide regulatory framework very shortly. It will set out the frameworks that we could introduce to transition away from the most polluting vehicles and to support consumers and businesses to make the switch to zero emissions. The second piece of activity is the much more wide-ranging transport decarbonisation plan which will talk about how we decarbonise all modes of transport. I have listened very carefully to the questions in this area but I would not want to steal its thunder, as noble Lords will be seeing that very soon.

The noble Baroness, Lady Randerson, noted the Environment Bill. The Government intend to create a regime that will enable manufacturers to recall vehicles and non-road mobile machinery and vehicle components that do not comply with the environmental standards which they are legally required to meet. The Government will be able to set vehicle manufacturers a minimum recall level that they will have to achieve. In the event of the manufacturer refusing to comply with a recall notice or failing to meet the minimum recall level, they can be subject to civil penalties. Under these carbon dioxide regulations, manufacturers can already be issued with substantial financial penalties if they fail to meet their carbon dioxide targets. However, it should be noted that there is no upper limit on carbon dioxide for any particular vehicle. They are being set on a fleet-average basis, meaning that manufacturers can sell some vehicles which produce more emissions than average because there will be others that produce fewer.

I accept that I have not been able to go into detail on some of the questions that I have been asked today. I will be writing, particularly to provide further information around consumers and how we feel the market in Northern Ireland is behaving at the moment, but for the time being, I beg to move.

Motion agreed.