Vehicle Technology and Aviation Bill

Lord Grayling Excerpts

2nd reading: House of Commons & Carry-over motion: House of Commons & Programme motion: House of Commons & Ways and Means resolution: House of Commons
Monday 6th March 2017 Commons Chamber

[The Secretary of State for Transport (Chris Grayling)]

I beg to move, That the Bill be now read a Second time.

This Government recognise the value of investment. The Prime Minister has made clear her intention that this country should be the best place in the world to develop, test and deploy cutting-edge transport technology. We have already established ourselves as one of the world’s best places in which to research and develop next generation technology, but we also need to act to ensure that the UK benefits from the economic opportunities that those technologies provide. The Bill will help to ensure that the United Kingdom is ahead of our European and global competitors by creating the right balance of an open and permissive regulatory framework that keeps safety and consumer needs paramount.

There are enormous possibilities ahead with these technologies. In a few years, we will all increasingly have the opportunity to use semi-automated and automated vehicles. While amusing and novel for many of us, that will revolutionise the way many people live their lives; in particular, it will make a huge difference to the disabled and the elderly. However, to make these technologies a reality, we need to act now. We need to create the regimes that will help developers to bring their products to market in a safe way that protects consumers.

The Bill that I introduce to the House today is forward-looking, urgent and ambitious: urgent because we need to maintain and lead the modern transport revolution by attracting inward investment and becoming a hub for researching and developing the next generation of transport technologies; ambitious because we are establishing the right regulatory framework in advance to spur innovation in a safe manner.

[Tom Brake (Carshalton and Wallington) (LD)]

I thank the Secretary of State for giving way so soon in his speech. Is he aware of a company called Dearman, which produces clean engines for use on refrigeration units? I am a bit disappointed there is nothing in the Bill that relates to that. The engines on these units normally use red diesel, and they are incredibly dirty. Although that technology is not in the Bill, I hope he will consider it, as a technology of the future. May I also just remind him that I invited him to come for a cycle ride around London with me, and I am still waiting for his response?

[Chris Grayling]

I am not aware of the technology the right hon. Gentleman refers to, but we are very interested in seeing this country be a real success in developing new technologies. The issues of clean-engine technology affect not just this country but many countries around the world, and any country that has a breakthrough in that area has a real opportunity worldwide. Of course, the Department for International Trade is focused on trying to help not just our biggest businesses but smaller businesses to exploit the opportunities that are out there.

Advances in data science, connectivity and automation are converging to bring about the biggest changes to mobility since the internal combustion engine. Automated vehicle technologies will have a profound effect on how we get around.

[Mr Jim Cunningham (Coventry South) (Lab)]

Will the Secretary of State tell us what progress has been made on batteries for electric cars and on any infrastructure those batteries might need?

[Chris Grayling]

I will talk in a moment about electric vehicle technology. We are certainly seeing a transformation in battery technology. I expect the new generation of battery vehicles—we expect a new model of the Nissan LEAF to be selling in this country over the coming months —to take a real step forward. Of course, the longer the range of a battery and a vehicle, the more that vehicle becomes a realistic alternative for those driving around not just cities, but the country more broadly.

We need to ensure that the benefits of a shift towards intelligent mobility are felt far and wide, with journeys that are easier and more fuel-efficient; transport networks that are more accessible and responsive to the needs of those who use them; and, of course, new, high-value jobs in the technology and automotive sector, where we already have a number of businesses that are pathfinders in the field of developing autonomous vehicles.

We are embracing these developments. We are acting to position the United Kingdom as a global leader in automated vehicle technology, building on our heritage as a nation of entrepreneurs.

[Andrew Selous (South West Bedfordshire) (Con)]

I am delighted to hear what my right hon. Friend is saying, and I fully support the Bill he has brought before the House. In Norway, around a quarter of all vehicles are electric or hybrid electric. On maintaining our leadership position, by what date does he think the United Kingdom might be on a parallel with the proportion in Norway?

[Chris Grayling]

Well, I would not put a forecast on it. Suffice it to say to my hon. Friend—he has been a diligent follower of this issue and is keen to pursue it, and he has been engaged in discussions with my Department about it—that our ambitions remain strong. We have good incentives in this country. We have measures in the Bill to make an electronic vehicle charging network much more transparent and visible. These things will accelerate the production and sale of these vehicles in the United Kingdom. Of course, with the Nissan LEAF in Sunderland, we have the world’s first mass-production car of that kind.

[Chris White (Warwick and Leamington) (Con)]

Car sales are projected to rise from somewhere in the region of 74 million today to 100 million in 2030, helped not least by the launch of the fourth-generation Range Rover, the Velar, which my right hon. Friend the Minister of State, Department for Transport, saw with me last week. The hon. Member for Coventry South (Mr Cunningham) made a good point about the infrastructure being in the right place for the battery technology and the plants to be developed. We need that infrastructure in place near Jaguar Land Rover, so will the Secretary of State please tell me what his plans are for that?

[Chris Grayling]

Indeed, we do need that infrastructure. As I have said, I am excited about what JLR is doing in the field of electric vehicles. The Government car service is already a customer of the company, but I look forward to it also becoming an early customer of those electric vehicles as they are manufactured and sold. The company has specifically said that it needs infrastructure improvements to help it with those developments and its ambitions for electric vehicle manufacturing in the United Kingdom. I assure the House that it will receive that support. The autumn statement provided extra funding for electric charging points. This Bill provides for much greater transparency of data, making it much easier for those who own and drive electric vehicles to identify the locations of the best charging points. That is part of a strategy that will, in my view, drive forward substantially the sales of those vehicles in this country.

We should not, however, be entirely technologically biased. We will also take further steps to encourage the development of hydrogen vehicles in the United Kingdom and, of course, we provide tax incentives for hybrid vehicles. We must drive for a higher quality of vehicle in this country when it comes to the propensity to pollute, and we must provide the right support for that market to emerge. However, we must allow the technologies to win those battles themselves, rather than have the Government winning them for them.

[Neil Parish (Tiverton and Honiton) (Con)]

This is not only about electric vehicles and almost zero emissions. There is an interim stage: in some places, we could convert lorries and diesel vans to liquid petroleum gas to get those NOx levels down in the hot spots quicker than if we tried to convert everything to electricity straight away.

[Chris Grayling]

Indeed. I know that my hon. Friend has been determined to push that argument, and rightly so, because that technology could make a difference to emissions. I absolutely support those who seek to transition vehicles to LPG, but the Government should not focus on one particular technology. We need to create the right environment for all technologies to compete to deliver the cleanest possible vehicles for the future, which is in all our interests.

I will talk about electric vehicles before turning to autonomous vehicles. The Bill creates the right environment for those markets to develop. We have a clear goal that by 2050 nearly all cars and vans should be emission-free, but we want to accelerate that transition. That will happen partly through giving financial help, through grants and the tax system, to motorists choosing a cleaner vehicle, and we are also supporting local authorities that provide incentives through free and cheap parking to those who move down the road towards acquiring a cleaner vehicle.

We have also helped develop a network of more than 11,000 public charge points in the UK; as I have said, significant funding is in place to allow more of them to be developed. We want the uptake in electric cars to continue, whether they be hydrogen fuel cell or battery powered, and for them to break into the mass market. The Bill introduces a number of new powers that will help make that possible. In particular, it enables common technical standards and better interoperability, and it will ensure that consumers have reliable information on the location and availability of charge points. We will also be able to accelerate the roll-out of electric vehicle infrastructure at key locations, such as motorway service areas and large fuel retailers, and make charge points ready for the needs of the marketplace.

Of course, we will then see further technological developments with hydrogen and, I suspect, and as my hon. Friend says, more developments on the LPG front. The Bill will create more of the necessary powers to drive forward the ambition of getting a much cleaner fleet of vehicles on our roads.

[Mims Davies (Eastleigh) (Con)]

I welcome the Bill and the news that the registration rate of ultra-low-emission vehicles is rising rapidly. Two-tier local authorities can work better on issues relating to air quality and the Bill will enable them to reduce air pollution. Will the Secretary of State make a commitment that, where wider infrastructure investment is needed for roads such as the Botley bypass and the Chickenhall link road in my constituency—they are well known to the Department—it will come hand in hand with the Bill’s provisions?

[Chris Grayling]

Today is probably not a day for going into the detail of schemes, but I give my hon. Friend an assurance that we see easing congestion as part of the solution. Emissions are generated not just by dirty vehicles, but when cars are stuck in traffic jams or crawl along slowly for long periods. The Government’s investment in the road infrastructure will therefore ease emission problems in areas in which congestion is the principal cause.

I will talk briefly about automated vehicles. The Bill sets in motion the first steps towards the use of such vehicles on UK roads. They are a way to improve the situation regarding both congestion and air quality, because they will drive in a more efficient and effective way without creating the congestion to which human driving habits sometimes contribute. We will not wake up tomorrow to find a fleet of automated vehicles, but we will see rapid change. Technology will proceed step by step as our cars become more and more automated, and not too many years ahead the use of automated vehicles on our roads will start to become widespread. We will act to remove safely any obvious barriers to that happening.

We want journeys to be easier and more fuel efficient, and we want transport networks to be more accessible and responsive to the needs of those who use them. One part of achieving that is to deliver for the first time an insurance framework that makes it possible for automated vehicles to operate on our roads, and that is what the Bill does. You will know, Madam Deputy Speaker, that your insurance policy on your car is for you, the driver. It is not for the vehicle. The Bill will allow the creation of two-dimensional insurance policies that cover you when you are driving the vehicle and that cover the vehicle if it is being driven autonomously. That will make it possible to move towards a framework in which insurance companies can provide cover for the vehicles of the future.

[Chris Bryant (Rhondda) (Lab)]

Surely, on occasion, the technology in a car that is being “driven autonomously”, to use the Secretary of State’s words, might be at fault. In such circumstances, surely the insured person would not be covered.

[Chris Grayling]

I think that the hon. Gentleman has misunderstood the point. The two-dimensional insurance policy will cover both the vehicle and the driver. If the driver is at the wheel, the insurance policy will cover the liability of the driver, but if a car is driving itself, the insurance policy will be extended to cover the vehicle. In that way, we cover all eventualities and make it possible for those cars to operate on our roads when the technology is ready for them to do so. That important step has been welcomed by the insurance industry. It opens the door to a new generation of vehicles on our roads, and it sends a message to the automotive industry and the world that we in this country are going to make sure that we have the right regulatory framework to enable those vehicles to operate.

I now change modes and move on to aviation.

[Mr Steve Baker (Wycombe) (Con)]

Before my right hon. Friend changes modes, I know that he would be very disappointed if I did not mention motorcycling. I notice that the word “motorcycle” does not appear in the document “Pathway to Driverless Cars”. That initially pleased me because, as he will realise, an autonomous motorcycle would be entirely pointless, but I am slightly concerned about whether we have adequately considered the ability of driverless cars to coexist safely on our roads with motorcycles. Since I am on my feet, may I also say that many of his objectives could be achieved with a small modal shift to motorcycling?

[Chris Grayling]

My hon. Friend is a great champion of the motorcycle, and I cannot for a moment imagine him wanting to have anything to do with an autonomous motorcycle. Given the pleasure that he derives from motorcycling, I cannot imagine him sitting on the back of his bike and reading the paper while the vehicle drives itself along.

One important part of the insurance changes for which the Bill paves the way is ensuring that the insurance framework gives comfort to all on the roads, and that proper insurance is in place if there is, God forbid, an unfortunate “non-interaction”—in other words, not the sort of interaction that we would wish—between any vehicle and an autonomous vehicle, and certainly between a motorbike and an autonomous vehicle. It is really important to get that right. Of course, the technology is some way from being sufficiently clearcut and dependable to enable such vehicles to operate freely and openly on our roads as a matter of daily routine, but that day will come.

[Victoria Borwick (Kensington) (Con)]

Before the Secretary of State moves on to aviation, and while we are still talking about vehicles, insurance and safety on the road—I very much welcome his comments about that—may I ask about pedicabs? They are not of course licensed, regulated or insured, and they cause tremendous grief in central London in that they are not seen as safe. Transport for London does not have any method of regulating them, and we have no way of making sure that they are insured, so will my right hon. Friend consider them when thinking about other aspects of insurance in the future?

[Chris Grayling]

I am aware of that issue. I am happy to give my hon. Friend such an assurance and to discuss the issue with her.

[John Pugh (Southport) (LD)]

I want to probe the Secretary of State on this business about autonomous vehicles and the responsibility of the passenger—or the driver, who is I suppose a passenger in this respect—while the vehicle is in autonomous mode. When the driver is not in control of the vehicle and the vehicle is in autonomous mode, is the driver exonerated of all legal responsibility? Is that the principle of the Bill, because surely it cannot be as simple as that?

[Chris Grayling]

The measures focus on insurance. If the vehicle is under its own control, the insurance principle is still applicable. If the insurance policy applies to the driver and the driver is not driving the vehicle, by definition the driver cannot be at fault. Under the provisions in the Bill, it will be possible to have an insurance policy that covers both eventualities of something going wrong: when the driver is driving; and when the vehicle is in autonomous mode. That is one of the key changes necessary to create an environment in which such vehicles can operate freely on the roads.

[Andrew Selous]

The Secretary of State will be aware of the prohibitive cost of insurance for young drivers. Does he foresee a time when autonomous vehicles might help young people to have the freedom of a car at a much more affordable cost?

[Chris Grayling]

Absolutely. I think that this might help not just younger drivers, but elderly and disabled drivers. Once vehicles start to operate autonomously in a controlled environment, it will become much easier for people who struggle to get out on to the roads today to do so. My hon. Friend is absolutely right that that is one of the possible future benefits.

[Chris Bryant]

Will the Secretary of State give way?

[Chris Grayling]

I will give way for the very last time before I move on to planes.

[Chris Bryant]

The Secretary of State does have plenty of time, but I am grateful to him for giving way. One of the outcomes over the next 20 to 25 years might be that the number of taxicab drivers this country needs falls very dramatically, because people will be able to get an automated car to pick them up and take them somewhere. What planning has the Department done on the challenge that that will pose to employment in this country?

[Chris Grayling]

The Government certainly think all the time about the impact of future technologies, of which there are many. We are a considerable number of years away from the situation the hon. Gentleman envisages, as most of the cars bought today will still be on the roads for a decade or more. It will probably not be an issue for this Parliament or the following one, but it will certainly be a genuine issue by the 2030s, and he is right to identify it as one.

We have of course seen throughout modern history how changes in technology alter ways of working—we will see more of that in the future. It is up to us as a society, and us in this Parliament and our successors, to make sure, none the less, that this country is a dynamic, entrepreneurial one that takes advantage of new technologies and creates job opportunities off the back of such changes. We are certainly doing that, and we will continue to do so. One of the ways in which the Bill will help is that if we set ourselves at the forefront of the development of such technology in this country, that will create a new generation of job opportunities that simply did not exist before.

I will move on to talk briefly about other aspects of the Bill. There are two key innovations in the aviation sector, which is crucial and a key part of our economy. Our air traffic control is provided under a licence held by NATS. It oversees 6,000 flights every day and develops innovative solutions that are used around the globe. It is essential that its licence is fit for purpose and that consumers are at the heart of the regulatory regime. The Bill will modernise the licensing framework for the UK’s en route air traffic control, which is currently undertaken by a subsidiary of NATS and overseen by the Civil Aviation Authority.

We propose to update the licensing framework in three ways. First, we will change the way in which licence conditions can be modified by the regulator. Currently, the CAA needs to get the agreement of NATS before it modifies the conditions. The Bill will give it more flexibility to make changes when they are necessary without going through a long negotiating process. The provisions will make sure that the CAA always acts solely in accordance with its duties while ensuring that the licence holder is also able to appeal modifications to the Competition and Markets Authority.

Secondly, the Bill clarifies the power to amend the length of the licence term. Currently, the licence termination period is 10 years, which sits uncomfortably alongside the average 15-year asset life of NATS investments. We think that exercising the power to extend the licence termination notice period will increase NATS’s finance ability, which in turn will lead to more efficient services being provided to users.

Thirdly, we are enhancing the enforcement regime, which is currently bureaucratic and inflexible. We will ensure that the CAA is accountable for enforcement decisions through appeal rights, but there will be a staggered approach to enforcement. Instead of having a situation in which there is no middle ground between serious action and a slap on the wrist, this will allow for a staged penalty regime that should give the CAA a clearer power to drive better performance in the management of our air traffic control systems.

The second aviation measure concerns consumer protection for holidaymakers. By its very nature, there are a number of risks in the holiday market. It is common for consumers to pay upfront on the promise of a holiday that might be many months away. As we have seen all too often, the financial stability of individual holiday providers can be shaky and sometimes the system lets down holidaymakers. In the rare event of a company failure, consumers may experience financial loss from a cancelled holiday or difficulties due to being stranded abroad. That is why the air travel organisers’ licence scheme was introduced back in the 1970s. It is the primary method by which the travel sector provides insolvency protection within our packaged travel regimes.

Madam Deputy Speaker, you will know that the way we book holidays is changing, so we need to adapt the schemes and regulations that protect people. The Bill will enable the ATOL scheme to respond to innovation in the travel sector, as well as enhancements to the UK and European consumer protection rules. It extends ATOL protection to a broader range of holidays and makes it easier for UK businesses to trade across borders, ensuring that the scheme remains fit for today’s world.

There are two or three final measures to explain to the House, first on vehicle testing. We already work in partnership with the private sector to deliver bus and lorry MOT tests at private sector sites. Such tests used to be delivered from Government sites. Of course, the testing of cars is done by private operators around the country. Through the Bill, we want to extend the partnership with the private sector to deliver specialist vehicle tests from those established or additional private sector sites, thus providing services that are convenient and local. The Government will benefit because we will not have to pay for the upkeep of Government sites. That will help to keep down the cost of vehicle tests, which will still be delivered by Government examiners who will travel to those private sites.

We will not compromise on vehicle safety and nor will we remove any Government sites from operations until a suitable private sector site has been established. Such private sector sites are inspected and appropriately approved. This partnership approach has worked well and has been popular with industry. We will introduce a statutory charge for the site owner to make for the use of their premises and equipment. It will be known as the pit fee, and it will be capped to avoid any unreasonable charges.

One of the highest profile issues that has faced the aviation transport sector, in particular over the past few months, is the misuse of laser pointers. The penultimate measure in the Bill should bolster safety across all transport modes and deal with the problem properly. Each year there are approximately 1,500 laser attacks on aircraft. Those incidents pose a threat to the safe operation of aircraft, risk causing eye damage to pilots, and put the lives of passengers and crew in danger. This is an issue for not just aircraft, but other modes of transport.

We will create an offence of dazzling or distracting the person in control of a vehicle. It will be triable either way, and will allow police to enter a private property for the purposes of arrest and to search for a laser pointer. It will be a clear deterrent to would-be offenders, with unlimited fines and a potential five-year jail sentence, sending a clear signal that using laser pointers in this manner will not be tolerated.

[Mims Davies]

The act of shining or directing a laser at the eyes of a person in control of a vehicle that is covered by part 4 is a cause of great concern at Southampton airport, and its impact has been raised through consultative committees. The problem is particularly bad at regional airports. Many of my constituents work for NATS and report how dangerous these incidents are. They are also very concerned about drones. Is there scope to include the misuse of drones in this part of the Bill?

[Chris Grayling]

We are consulting on a new regime for drones, but the measures do not all have to go into primary legislation. I assure my hon. Friend that we are looking carefully at how to provide proper protection for airports and others from the use of drones in our society.

[Sir Gerald Howarth (Aldershot) (Con)]

I am sorry that I was not in my place at the start of my right hon. Friend’s speech on this important Bill. I am delighted that the Government are taking such action on lasers. Although, according to the eminent eye surgeon, Professor John Marshall, who is my constituent, irreversible damage is unlikely to be caused because of the distances at which these lasers are operated, the risk to pilots is nevertheless very serious indeed. As my right hon. Friend knows, I am a pilot, and the thought that passengers could be put at risk makes it imperative that we take a decision on this. What discussions has my right hon. Friend had with the laser manufacturers? May I also encourage him to take action on drones quickly?

[Chris Grayling]

I know that my hon. Friend is a committed aviator and that he understands these issues. My Department has had a broad range of discussions about the impact of lasers. We think that the risk of a five-year jail sentence is a pretty strong deterrent that will, I hope, focus the minds of those who might be tempted to use, in such a dangerous way, something that should be a simple and innocuous tool for making presentations in a conference room. People who act in such a reckless manner should expect a very serious penalty indeed, and I hope that they will think twice before doing so again.

Lastly, I come on to the issue of courses. When drivers and motorcyclists transgress, but not excessively, the police have the discretion to offer them an educational course as an alternative to a fixed penalty. Such courses are valuable. They help to remind participants about the consequences of inattentive driving. Drivers pay to attend the course, but they avoid paying the fixed penalty fine or having points added to their licence.

The Bill clarifies the basis on which police have the authority to charge for such courses. For the avoidance of doubt, we are providing a simple statement that the power to charge exists, together with technical arrangements for specifying its scope. This technical measure will not affect road users; it simply clarifies the legislative position, and provides greater transparency and police accountability regarding the way in which these charges are set.

The Bill contains a number of measures that are designed to improve the way in which our transport system works. Above all else, it paves the way for what is going to be a revolution on our roads. As we see the emergence of connected and autonomous vehicles, our lives will change—I think that this will be a change for the better for many in our society. This is one of the most exciting technological developments that mankind has produced for a very long time, and we want this country to be at the front of the development and trialling of the technology, and then at the front of experiencing it. The Bill paves the way to achieve that. It brings into play a number of improvements across our transport system. More than anything else, I hope that it will start this country down the road towards an automotive revolution that will transform everyone’s lives.