Vehicle Technology and Aviation Bill (Second sitting)

Drew Hendry Excerpts

Tuesday 14th March 2017 Public Bill Committees

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Q I want to ask a question similar to that asked by the Minister. Earlier, we were talking about the need to look not just at fuel stations as the only charging point locations. There is an issue of unintended consequences, arising perhaps from a lack of strategy and thinking over the deployment of charging points. Similar to the situation with village shops, in your view, is there a risk if we concentrate, for example, on large retailers, that we could see a further impact on high streets because there would be a disincentive to go there? A follow-up question would be, do you believe that enough work has been done and consideration given to other technologies such as in-road inductive charging as a possible solution to those conundrums?

Edward Woodall: Obviously we do not want further disincentives for people going to high streets. That comes back to the point I made earlier about how we can encourage this more widely. Perhaps we should look at the planning system and the national planning policy framework to ensure that people and planners are thinking about where to put charging points in future. I agree that we do not want to focus too much on one particular area. We should follow where the consumers—the people who have electric vehicles at the moment—are going. They are saying that they want to charge in locations that are convenient for them. It is not necessarily in fuel retailer sites, but in car parks and leisure facilities, on high streets and in other car park areas. That might include village shops and convenience stores.

Teresa Sayers: I support everything that Ed said. It is very much about destination and convenience. When you look at such criteria, a variety of alternatives offer themselves up as being appropriate for the positioning of EV charging points.

[Drew Hendry]

Q Can I press you for some thoughts on other charging technologies? That was the last part of my question.

Edward Woodall: I do not have a great deal to add on that.

[Mr Steve Baker (Wycombe) (Con)]

Q Mr Woodall, if I understood correctly—I listened very carefully to the answer about business models, because the same question occurred to me—you said you do not wish to be forced, but you would be happy to be paid one way or another to take charging stations. I am not surprised, but you did not mention profit as an incentive to provide this service to consumers. Can you elaborate? Why did you not mention the potential to make a profit out of charging?

Edward Woodall: Obviously there is a benefit to having charging on a site. I suppose I am focusing, in the context of the Bill, on how it will work in retailers’ thinking about investing in something that is developing in the long term.

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[Mr Hayes]

Q On this insurance issue, there has been quite a lot of speculation about what might happen to the products that the industry offers, which will clearly have to evolve. We were told that again this morning. Is it your estimation that that will affect premiums? One would expect premiums to fall, given the fact that these cars will be safer; many of your claims are related to human error, after all. Is that how you see things developing? However, we are also told that many people who cannot currently drive will now be able to—the infirm, the elderly, some disabled people. In a way, that is the most exciting thing about this development. How would that affect your assessment of premiums?

Ben Howarth: On the first case, I would think of it more in terms of claims costs than actually speculating on what the premiums would be. Obviously, if the number of accidents comes down dramatically, that is going to have a significant impact on the costs that insurers face. Motor insurance is very competitive, and it is inevitable that, if we see a significant reduction in costs, we will see a significant reduction in the premiums charged. So I think we can be pretty confident of that. As far as we know, it is still four or five years before these products will come to market.

Looking ahead to the cars you are referring to, where, say, there is a severely disabled person who possibly cannot drive at all at the moment, we are probably thinking about a level 5 car that can go from A to B in fully autonomous mode. It is fair to say that this legislation is primarily aimed at cars that will be manual for some of the time, automated for the rest: more of a level 4 car. Once you get to level 5, that is probably the point at which the insurance system is going to have to change more significantly.

Where the Bill is really helpful is that it allows us to learn from the first developments, get an insurance function in place and see that that system works. It is probable that we are going to have to evolve further once we get to a fully automated car. David Williams, who was one of your witnesses this morning, is one of the insurers involved in trials of fully automated technology. There is a significant degree of interest from insurers in the next generation of technology as well; but it is probably fair to say that this Bill is more around a level 4 car. I prefer to think of it as a binary distinction between automated and not-automated. I am not completely convinced about the levels and how useful they will be for consumers. It is probably fair to say that we think of it as level 4.

[Drew Hendry]

Q Public confidence in autonomous vehicles will be critical in terms of how quickly we can take advantage of some of the benefits that are portrayed by the industry. Given that the technology largely exists, do you feel that the Bill is going to go far enough to encourage the uptake of autonomous vehicles? I am specifically interested in whether you feel that the connectivity will allow a truly UK-wide uptake and also in rural areas, given that, as we have heard previously about electric vehicles, range and the ability to get to the destination is one of the limiting factors.

Iain Forbes: The point about confidence is really important. Trust in the technology is going to be a vital factor in seeing some of the benefits we are talking about. It is part of the reason that the Government are investing with industry in demonstration projects, which will involve members of the public trying the technology, understanding what it might mean for them and helping the developers to learn from that in terms of their public messaging and how they take the technology forward.

With regard to connectivity, what is interesting is that different developers are following different development paths for the technology, some of which rely on connectivity and some for which do not. So, from a Government perspective, it is difficult to say exactly what the final technological solution will look like. Some time is needed to work that through, but we are actively trialling this technology with the industrial players to understand, from a Government perspective, what action we need to take to make sure we are prepared for it.

[Drew Hendry]

Q Just to press that point about the end-to-end availability, is enough being done to ensure that you get truly wide coverage to allow people from outlying areas to get out and back again in the new technology?

Iain Forbes: It is an important bit of work that will need to be done as we develop out the technology. We are investing in connected vehicle test-beds to understand what the requirement is, and certainly one aim of that work is to try to understand how it can benefit everyone, not just people in cities.

[Mr Baker]

Q I would like to turn to clause 4, which relates to accidents resulting from unauthorised alterations or failure to update software. Hopefully, you have had a chance to look at this section of the Bill. It is all couched in terms of the operating system—interference with and failure to update the operating system. I am concerned that there are other aspects of software in a car that are relevant. Are you satisfied that the Bill is in the right shape, referring to the operating system, or would you prefer to see some other definition, in which case, what?

Iain Forbes: I guess it is my team that has been looking at the Bill, so I will ask Mr Howarth to comment first.

Ben Howarth: From our perspective, my initial reading of it was that it covered what we thought it was, and I am thinking it is the technology. I have to say, I am not a software expert, so if the wording could be clearer—the clause basically says you are not liable if a stupid individual mucks around with the car’s systems and does things that the manufacturer would not permit.

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[Mr Hayes]

Q The other question I was going to ask reflects the point made by the hon. Member for Birmingham, Northfield about the post-Brexit deal on travel. We have been a leading player—one might say a trailblazer—in terms of providing protection for holiday makers, haven’t we? Post-Brexit, it is really important that we retain consumer protection across Europe. What are your views on that?

Richard Moriarty: I completely share that objective. To go back to the point that John made, I think there is a job to be done by the CAA, ABTA and other groups on raising awareness with UK consumers about the level of protection that they get from different types of products. You can imagine a future where we are in a less binary world in package travel than whether something is ATOL-protected or not. There will be a graduation of protections that consumers can get. It is important that we work with consumer bodies to raise the level of awareness.

We start from a solid and good basis. The scores for levels of awareness of ATOL, which is often seen as the gold standard, are about 75% or 80%, so we start in a good position for that work.

[Drew Hendry]

Q Some UK operators have stated that they feel that passenger rights go too far. Which passenger rights do you feel are most contentious in the industry?

Richard Moriarty: A number of airlines have expressed concern not about the principle of compensating consumers for delays, but about the tariff—the amount that is charged. It is important to get the balance right. It was not so long ago that airlines did not take the issue at all seriously. We saw long delays and a lot of consumer detriment as a result. I hear from a lot of chief execs of airlines that although they would wish for a lower tariff, because it is clearly straight off their bottom line, this is not front and centre of their urgent priorities. I do not know whether John would take a different view.

John de Vial: I think that our members would agree. If you look at the package travel directive—that particular piece of work has been updated to allow for a new directive—there is broad industry support for it. I do not think there are any great concerns about it. The EU regulation 261 regime on denied boarding and flight delays is a different issue. A much smaller number of airlines have concerns about the denied boarding piece, but the concerns are principally around the delay regime whereby, through the European Court of Justice process, the same sort of tariff for delays has been adopted as existed and was intended for denied boarding. That is viewed as a rather blunt and sometimes counter-productive regime. The loudest voices are heard around that and there is considerable merit in it being revisited.

On Richard’s point, it is about the level and proportionality of the tariff, where compensation for a few hours’ delay can be a multiple of the purchase of a low-cost ticket. That is seen to be an injustice—it is not the principle of providing the protection, but the way in which it operates.

[Andrew Selous]

Q I would like to come to NATS, which I understand expressed concern about economic uncertainty and market volatility following the Brexit vote. It thought that air travel demand and, therefore, its revenues might suffer. Has there been any evidence of that to date?

Richard Moriarty: Not that I can tell from the financial numbers that I look at. Indeed, in terms of the assumptions that we made with it for the last regulatory settlement, traffic has been better than we predicted.

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[Mr Hayes]

I see. Thank you.

[Drew Hendry]

Q I am interested in how we take further action to tackle reckless behaviour. You have said that, because of the previous legislation, it has been very difficult to get the numbers of offences that are actually being committed, but I imagine that, even if anecdotally, there is some evidence of serial offending in these cases of shining lasers at vehicles. Given that is the case, do you feel that there should be consideration within the work we are doing here on the Bill of future repeat offending to have further punishment?

Simon Bray: This legislation will allow the courts to do that in any event. It is an offence triable either way, which can be dealt with with summary powers and at a higher level, potentially, with short terms of imprisonment and so on. The fact that it will be a recordable offence means that we will be able, or required, to record all instances of it, which will give us a greater level of data about patterns and intelligence on where these happenings are taking place.

Martin Drake: The magistrates or judges can be informed by the Ministry of Justice and by the Crown Prosecution Service, which brings these prosecutions, of whether the offender has been prosecuted successfully before and, if they have, whether the case can be heard in the magistrates court or whether it is so serious that it needs to be pushed up to the Crown court. That can be done, given the span of punishments for somebody found guilty of that offence. Of course, there is also the question of the circumstances in which it occurred. If someone was using a laser slightly mischievously, that might be considered a lower offence, whereas if someone was doing that absolutely maliciously, it might be seen as a higher-level offence. The venue for the trial can be decided at the pre-trial hearing.

[Drew Hendry]

I should say that justice is devolved to Scotland, but I was curious about your views. Thank you.

[Mr Baker]

Q I want to pick up remarks that I made on Second Reading about the seriousness of the offence. As the Bill is framed, it is an offence only if the person shines or directs a laser beam at a vehicle that is in the course of a journey. As police officers, do you have adequate powers if a person is assaulted with a laser when not in a vehicle? You are nodding.

Richard Goodwin: If we are talking about retinal damage, we are talking about grievous bodily harm.