Electric Vehicles: Transition by 2030

Grahame Morris Excerpts

Thursday 9th December 2021 Westminster Hall

[Grahame Morris (Easington) (Lab)]

It is always a pleasure to serve under your chairmanship, Mr Twigg. I congratulate the hon. Members for Bath (Wera Hobhouse) and for Richmond Park (Sarah Olney) on securing this important and timely debate.

If the UK is going to meet our legally binding pledge to meet net zero by 2050, we need to step up the transition to a green economy and deliver more sustainable transport options. I was pleased that the hon. Member for Bath mentioned the importance of the national grid to EV charging. I was reflecting that we were the victims of the most appalling storm—storm Arwen—two weeks ago. It showed up a systematic lack of investment in the power grid system in the north-east, as many thousands of my constituents were left without the most basic of utilities—power—for over 10 days. I am trying to understand how my communities would have survived if we were solely dependent on electric vehicles. If we are going to facilitate the transition to a green economy, the Government need to get the basics right and climate-proof our power grid.

The basic infrastructure required to facilitate electric vehicles does not exist in communities such as mine in Easington, County Durham. There is a massive disparity between the capital and the rest of the country in terms of accessing charging points, with more public charging points in London and the south-east than in the rest of England and Wales combined. We also need to advance technology, because until we have wireless, accessible, on-street parking charging points, replacing conventional vehicles with EV vehicles is not a viable option for people living in built-up areas—in my case, in former colliery terraces or blocks of flats.

We are potentially falling into a trap when it comes to infrastructure, so the Government need to change their mindset and, rather than focusing on the one-to-one replacement of vehicles, create an affordable, frequent and reliable public transport network. That should be the foundation for creating a sustainable green economy.

I frequently complain about the Northern Rail failure on the Durham coastline that serves my constituency. The service is unreliable and dangerous, and I can see the potential of improved public transport. You might be wondering, Mr Twigg, what that has to do with electric cars, but the subject of the debate is electric vehicles, and it is important that we consider what the options are.

Despite often-repeated Government rhetoric about levelling up, the transport infrastructure gap in the UK is widening. Improved public transport can deliver employment opportunities. My constituency is very close to Nissan in Sunderland, and I accept that there are many jobs in the automotive manufacturing sector and in the manufacture of EV battery technology. Indeed, Nissan in Sunderland is Europe’s biggest and most efficient car plant. I should declare an interest as a member and chair of the Unite group in Parliament. Nissan provides employment for many thousands of people, including many in the supply chain in my constituency.

However, there are other businesses that could benefit from this technological revolution. Vivarail, for example, is the only domestically based manufacturer of battery-powered trains in the UK. It has a production site in my constituency. Its cutting-edge green technology and innovative, fast-charging battery-electric train has enormous domestic and, indeed, export potential. Vivarail showcased its clean, green and reliable service in Glasgow at COP26, hosting my colleague, the Chair of the Transport Committee, the hon. Member for Bexhill and Battle (Huw Merriman), who saw the fast-charging battery-powered train that was on show.

Many people want affordable and reliable green options, but making the switch to electric vehicles is difficult because of the up-front cost. We know that the long-term financial benefits of electric vehicles, which have been pointed out in the debate, include lower running and servicing costs, but there is an up-front barrier in making the transition. We need greater Government incentives until such time as entry costs for new and used vehicles fall.

One issue, which was highlighted by the Transport Committee, on which I have the honour to serve, is the cost of VAT. I raised that with the Minister in the Fourth Delegated Legislation Committee yesterday, and I am afraid that I did not get an answer. The current policy on VAT on charging points penalises electric vehicle owners who do not have access to private parking and their own charging points. Those without access are forced to use public charging points and pay four times the VAT. Her Majesty’s Revenue and Customs says:

“Supplies of electric vehicle charging through charging points in public places are charged at the standard rate of VAT”,

which is 20%. It goes on:

“There is no exemption or relief that reduces the rate of VAT charged.”

I know that the Minister is not responsible for tax policy, but will she raise that issue with Treasury colleagues?

This debate is far from simple, and a comprehensive approach is required. The transition to electric vehicles is a once-in-a-generation opportunity to transform public transport and create a cleaner, greener and stronger economy in places such as east Durham. If only we had an ambitious Government willing to seize the opportunity and spread the benefits more equally.

[Derek Twigg (in the Chair)]

I again remind hon. Members that they should keep to around six minutes. I will call the Front-Bench spokesperson and the Minister no later than 2.30 pm.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Transport (Trudy Harrison)]

It is a pleasure to be part of the debate and to serve under your chairmanship, Mr Twigg. I thank the hon. Member for Bath (Wera Hobhouse) for raising this subject, and all hon. Members who have spoken for their enthusiastic and passionate contributions about electric vehicles.

I will outline some of the support that the Government are providing for electric vehicles, before running through some of the questions from hon. Members. We have committed £2.5 billion in funding for vehicle grants and infrastructure to meet a very ambitious carbon target. We anticipate that up to quarter of the 36 million cars and vans on UK roads will be electric by 2030. As we can see from the data released by the SMMT recently, the pace of the transition is really accelerating. Industry data shows that almost as many battery electric vehicles were sold in September as in the whole of 2019, and that nearly one in five new cars sold in November 2021 was fully electric.

The journey is not just about the vehicles, however. As has been said, drivers will frequently need world-class charging infrastructure to support the full range of journeys and vehicles in our electric future. Rather than leaving that to the market, this Government have intervened: the Prime Minister announced his 10-point plan for net zero, which will phase out the sale of new petrol and diesel cars and vans in the UK by 2030, as hon. Members have said. From 2035, all new cars and vans must have zero emissions at the tailpipe. In response to questions about the definition of hybrid, that definition is being worked on as I speak, and we will be able to update Members on those conclusions very shortly.

In October, the Government announced in our net zero strategy that we would introduce a zero emission vehicle mandate, which would come into force from 2024. The idea is to help the phase-out dates by setting targets for a percentage of a manufacturer’s annual new car and van sales in the UK to be zero emissions from 2024. Alongside our ambitious phase-out dates, we have also announced £1.3 billion to accelerate the roll-out of charging infrastructure, ensuring that drivers can charge where they need to and more easily than refilling a petrol or diesel vehicle. We are doing that through the Office for Zero Emission Vehicles.

Funding is available to support charge point infrastructure in homes, at workplaces, on residential streets and across the wider roads network. We have Homecharge, which provides £350 to homeowners to install charge points, and we have had about 230,000 householders take advantage of that. We have the on-street residential charge point scheme, which provides up to £13,000 per charge point to local authorities to install charging infrastructure, and the workplace charging scheme, which offers £350 per charge point. We have the local EV infrastructure fund, the charging infrastructure fund, the rapid charging fund—the Government are providing a wealth of support and building on the £1.9 billion from the spending review 2020, and we have committed an extra £620 million of this year’s spending review to support the transition to electric vehicles.

[Grahame Morris]

The Minister is being generous in giving way, and I am grateful for her listing all the investments and so on that have come through her Department, but has she had a chance to address the issues that I raised yesterday in a Delegated Legislation Committee, and indeed that the Transport Committee has raised, regarding the differential rate of VAT? Not everyone can have their own personal charging point if they live in a terraced house or a block of flats.

[Trudy Harrison]

The hon. Gentleman makes a common-sense point. We are looking at this, and I will, as he suggests, speak with my colleagues in the Treasury to see what we can do. I do think that the Treasury is playing an important part in this transition, but we need to work more with local authorities. Members across the House should work with their local authorities and with me, because, with their leadership and action through local transport and planning policies, we can really help to support the local zero-emission vehicle uptake, and make sure that it is integrated with local transport strategies.

The Government will publish an EV infrastructure strategy shortly. That strategy will define our vision for the continued roll-out of a world-leading charging infrastructure network across the UK, and focus on how we unlock the charge point roll-out needed to enable the transition from early adoption to the mass market uptake of EVs.

--- Later in debate ---

[Trudy Harrison]

I will take away that request, but I can tell the hon. Member that 26,000 public charge points are available and that of those 4,900 are rapid chargers. We also have a plan to install 750 kW as a minimum in all the 117 motorway service areas—and that absolutely includes the motorway services on the A1(M) at Ferrybridge at junction 41 and those at Wetherby at junction 46.

I commend my hon. Friend the Member for Broxtowe (Darren Henry). A couple of weeks ago, I had the absolute joy of visiting HORIBA MIRA in Nuneaton, where I saw the technology and innovation that is supporting not just decarbonisation but the connected and automated vehicles—they were was abundant with UK content, as the hon. Member for Leeds North West (Alex Sobel) said—that the country will need to be at the forefront. The technology that I saw at Nuneaton will be critical to the transition, and the midlands engine is at the forefront of it. I am delighted that my hon. Friend came to the debate to talk about that.

I am running out of time, but I want to address the lack of driveways. We want to ensure that no driveway is no problem. We understand the need to roll out publicly available charge point infrastructure, and local authorities are key to that. We are therefore putting together a toolkit with advice and, most importantly, resources for where local authorities are struggling to deliver. My message to hon. Members across the House is to work with me and with local authorities, because they will know their local areas best. The Department wants to ensure that we have fair, accessible, affordable, reliable and transparent charging infrastructure right across the UK.

[Grahame Morris]

The Minister is being kind. I am afraid that she has not addressed the resilience of the national grid and its importance to charging. The BEIS Committee has just produced an interesting letter and report.

[Trudy Harrison]

That is a matter for BEIS, which it is clearly taking seriously. I work continuously with colleagues in BEIS as well as those in the Department for Environment, Food and Rural Affairs on clean air zones. I will leave it there to allow the hon. Member for Bath to wrap up.

Draft Electric Vehicles (Smart Charge Points) Regulations 2021

Grahame Morris Excerpts

Wednesday 8th December 2021 General Committees

[Mr Jones]

I would not challenge your ruling, Mr Robertson, but the point is that it is the smart technology that allows people to get different tariffs and cheaper rates, and the people I am talking about will be at a disadvantage.

The hon. Member for Cheadle makes a good point, which I would support; I would have no problem with what she suggests. But again, will people have to drive and leave their car overnight at a community charging point in order to get the cheaper rates from that smart meter, rather than having access to them? I doubt whether they will do that, because there would be security issues in relation to the vehicle and things like that. However, the initiative that the hon. Lady suggests is a good one.

Before I go on to security, I will talk about wi-fi, because it is a related issue in terms of smart technology. The explanatory memorandum says:

“Charge points will rely on a network connection to meet the smart requirements within the legislation, for example using Wi-Fi.”

That is great—if people have access to wi-fi. As my hon. Friend the Member for Wythenshawe and Sale East said from the Front Bench, it is patchy, to say the least, in some areas and certainly in rural communities. If we are not careful, it will mean that parts of the country, especially rural communities—I know certain parts of my constituency where wi-fi connection is not good at the best of times—might be disadvantaged, because they will not be able to connect their smart meter to the wi-fi network.

It is okay to agree on the regulations, and I will come to electricity grids in a minute, but there has to be a holistic approach to how things will work. I accept that if someone does not have access to wi-fi or the coverage is intermittent, the meter will still work—that is what the regulations say—but some people will be put at a disadvantage. Again, that needs to be thought about.

I turn to cyber-security. I accept that the regulations say that cyber-security needs to be taken into consideration, but I have a direct question for the Minister. Who is monitoring the components that are going into the smart technology? Following Huawei’s involvement in the telephone network, we found that there could be—I know there is a lot of nonsense said about it—an issue with cyber-security because of the components. I would like to understand who is monitoring the components going into the smart meters, because otherwise we could open up our networks to potential cyber-attack.

I would also be interested to know what the market is, because one of the issues around Huawei was that the Chinese had come to dominate the market over successive years, as Huawei and two other companies were providing part of the technology. Do we have robust enough components and smart metering companies providing the technology, to ensure that there is a real market in which the consumer has choice, which obviously gets cost down, and, more importantly, that there is investment in technology and cyber-security?

The regulations say that the Department for Digital, Culture, Media and Sport looked at this issue. I would be interested know whether the components and structure of smart meters have been looked at by the National Cyber Security Centre to ensure that not only the components but the technology and how it works are as robust as possible. That could lead to a vulnerability: if someone got into a network and could close things down or disrupt them in some way, that could have a devastating effect like we have seen recently in the United States, where there was cyber-hacking of the petrol network that supplies fuel. The principle is the same. There, the hackers got in and stopped the pumping of petrol through pipelines. An equivalent of that would be if someone could get into the network and disrupt charging points. Their maintenance and ensuring that the components are safe will be very important for the future; otherwise there could be vulnerabilities, which would be an issue.

Finally, I want to talk about the resilience of the network. As my hon. Friend the Member for Wythenshawe and Sale East said, it is fine to have electric vehicles and charging points, but it is no good having an electricity grid that is not robust, as we have seen in parts of the north-east in the last few days. People did not have electricity for 10 days, with some even experiencing their 11th or 12th day without electricity. Again, this is important, and I would like to understand how the issue will be linked to the urgent need to look at the resilience of the electricity grid system, as I have called for this week.

I do not oppose electric vehicles, but we need to get realistic about how quickly this will happen and how safe it will be. More importantly, we should not end up with a two-tier system whereby only some consumers have access to cheap electricity for charging.

[Grahame Morris (Easington) (Lab)]

I want to briefly raise an important point about that disparity, particularly in relation to people who are less well off. My understanding is that VAT is applied to electricity drawn from community charging points at a rate of 20%, whereas if someone is fortunate enough to have a charging point on their drive, VAT is payable at only 5%. That makes a massive difference. I stand to be corrected, and I look to the Minister for guidance. It is an issue that should be of concern to us all.

[Mr Jones]

My hon. Friend raises a very good point. If that is the case, it is another example of a market where those who can afford least will pay more. That cannot be right. In the gallop towards the nirvana of net zero that the Government are trying to achieve, we cannot create situation where markets will be fixed so that those who can least afford to pay will pay more. Our considerations should not be just about charging points but the whole issue—network security, affordability and some practical issues about where these charging points will work and where they will not.

Rail Investment and Integrated Rail Plan

Grahame Morris Excerpts

Wednesday 8th December 2021 Commons Chamber

[Grahame Morris (Easington) (Lab)]

I rise in support of the motion in the name of Her Majesty’s Opposition.

My constituency has minimal rail infrastructure. The reopening of Horden train station was a cause for celebration. It promised new opportunities for employment, education and leisure through making the major towns and cities in the north-east more accessible to people living in my constituency in east Durham.

We do not enjoy the embarrassment of riches in public transport that we see in London and, apparently, in some other constituencies, where missing a tube or a bus is not a major issue, with another service arriving just minutes later.

Seaham and Horden in my constituency are served by one train an hour, normally consisting of two carriages. For my constituents who are seeking to attend a hospital appointment, a university or college class, getting to work, or simply meeting friends, the reliability of the train has a considerable impact on employment prospects or educational success. To increase capacity and frequency, we are not talking about multi-billion pound schemes. If there were any truth in the levelling-up rhetoric, I would not be on my feet here tonight, pressing the Government for additional transport options, more resources and more frequent services.

I want to highlight a particular case for the Minister, who is a good man, about what the consequences are when we have severe overcrowding, I will, if I may, read out a letter that I have received, relaying the experience of a constituent. It is from the mother of Harry, an 11-year-old boy. This is what she said:

“Harry, 11, was standing squashed with his Dad. He started to go pale and felt sick. He then suddenly collapsed, went limp, eyes rolled back and he passed out. We pulled the emergency stop button. After about a minute, he came round, but was weak, limp and only just responding. There was no space for him to lie down”—

the train was so crammed—

“no space for me to even get to him. No space for the conductor to get to him to see if he needed medical help. The windows were closed. It was hot, airless, and people were packed to absolute capacity. What does it take for the train companies to understand that packing trains full to above safe capacity is a fatality waiting to happen. The conductors were encouraging people to get on an already dangerously full train.”

I invite the Minister to understand our experience in east Durham with these overcrowded crushes, which are a clear risk to health and safety.

[Mr Deputy Speaker (Mr Nigel Evans)]

We will move on to the wind-ups now, but Rachael Maskell would have been next. Tan, you can have a bit more time, but would you allow her to intervene on you? I know that this is an unusual request, but I hope that you will think kindly of her when she decides to intervene.

Bus Services: North-east England

Grahame Morris Excerpts

Wednesday 24th November 2021 Westminster Hall

[Grahame Morris (Easington) (Lab)]

I congratulate my hon. Friend the Member for Blaydon (Liz Twist) on securing this important debate. Many of us speak based on our experience of inhabiting two different worlds when it comes to public transport. I am sure you appreciate, Mr Dowd, that inside the M25 there is a plethora of public transport options: a frequent and reliable bus service, the underground, and black cabs and 24-hour taxis available in minutes. We also have access to a constant stream of real-time data.

Outside the M25, in my constituency, when I wait at a bus stop, the timetables are more aspirational than informative; the bus will arrive when it comes. Making plans that rely on the bus network in my constituency is what separates the optimists from the pessimists—that is not just about our choice of football teams. The only thing more unreliable than the buses is the Northern Rail coastal train on a match day—a most appalling service of two carriages, once an hour.

Independent analysis of the Government’s transport spending by the Institute for Public Policy Research North think-tank shows that the north has received just £349 per person, compared with £864 per person in London, since the Conservative party took office in 2010. Far from the northern powerhouse, shared prosperity or levelling up, northern England has been short-changed by the Government over the last decade to the sum of £86 billion.

Public transport is too important to fail. Whether moving people to support the economy, to shop on our high streets or to work, unreliable and expensive bus services can have a significant bearing on an individual’s life chances and living standards. We need a change in mindset from the Government. Buses, trains and metro systems are vital public services for strengthening and growing our economy—not secondary distractions if situated outside London. Regional transport services need to recover from the disastrous policy of deregulation and privatisation of the 1980s.

Decisions around the regulation and control of bus services should rest with local government and transport authorities—democratically elected and accountable to the public. These services should be run in the public interest, safeguarding vital routes, particularly in rural areas, rather than being run solely in the pursuit of profit, pricing people out from public transport and the life opportunities that good public transport links can deliver.

Aviation, Travel and Tourism Industries

Grahame Morris Excerpts

Thursday 10th June 2021 Commons Chamber

[Grahame Morris (Easington) (Lab)]

Quite unusually, I find myself agreeing with many contributions from both sides of the House today. I want particularly to concentrate on the aviation sector. Clearly, the aviation, travel and tourism sector is unique in this crisis. While other sectors are enjoying a cautious but steady recovery and reopening, the short-term and long-term future of this sector remains extremely uncertain. In addition, it is one of the only sectors whose recovery is not determined solely by the policies of the UK Government, but is highly dependent on the often rapidly changing policies of Governments abroad. However, given the ongoing restrictions that the UK Government are applying to the aviation sector, the sector requires a specifically tailored recovery plan, which this Government sadly have not yet afforded it. Not only is this lack of support putting employers and employees under extreme pressure; it is also putting the UK market at a competitive disadvantage, where European counterparts have provided that much needed support and comfort.

It goes without saying that the workers—almost 230,000 of them in the aviation industry—are highly skilled. They go through a complex process of training to gain qualifications, of checking and of certification. The industry is potentially facing an exodus of workers who are going to leave for more stable sectors with a more predictable recovery prognosis. Quite frankly, the industry cannot afford such skill leakages at this time. A further extension of the furlough scheme would afford employees the flexibility to be furloughed at short notice without the potentially devastating impact on their income, and would serve to protect the skillset that the sector desperately needs to retain during the recovery.



I am honoured to serve as a member of the Select Committee on Transport and as such I have become well-acquainted with the particular challenges facing the sector, and in my capacity as chair of the Unite the union parliamentary group I have closely followed the industrial disputes within the sector, including the disgraceful fire and rehire practices at British Airways and Heathrow airport and, as always, I commend Unite on its work in fighting on behalf of its members in these sectors and once again call on the Government to outlaw fire and rehire to prevent more of these cases and end this unacceptable practice.

The uncertainty that has characterised the Government’s pandemic response endures with the recent traffic light system for foreign travel. Minister, in the time I have left I want to urge you to extend the coronavirus job retention scheme to the sector; extend the furlough scheme and give this sector and the workforce the support and reassurance it so desperately needs.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I know the hon. Gentleman did not mean to say “Minister” like that; I know he meant to say “I would ask the Minister” rather than “Minister, I would ask you”, but I did not want to interrupt him because of lack of time.

Oral Answers to Questions

Grahame Morris Excerpts

Thursday 29th April 2021 Commons Chamber

[Andrew Stephenson]

There can be no greater champion of buses than the Prime Minister, who has committed us to bus back better following the pandemic. The House will be aware that he announced £5 billion in funding for buses, cycling and walking, of which £3 billion is allocated to buses. The roll-out of 4,000 zero emission buses is crucial. We are keen to work with all manufacturers, large and small, to ensure that we get the best technology available, the best value for taxpayers and the best service for passengers.

[Grahame Morris (Easington) (Lab)]

What recent discussions he has had with representatives of Network Rail on (a) future staff levels, (b) working arrangements and (c) employment conditions.

[The Minister of State, Department for Transport (Chris Heaton-Harris)]

As sole shareholder, the Secretary of State has regular discussions with the chair and chief executive officer of Network Rail, as do I. Obviously those discussions sometimes cover matters such as the structure and operation of that organisation.

[Grahame Morris [V]]

I thank Network Rail for contacting me yesterday, but may I point out that the trade unions are alarmed to hear of its recent proposals, which could involve the loss of thousands of rail jobs and a halving of the frequency of safety-critical planned maintenance work? We certainly do not want any return to the cost-cutting and safety failures under Railtrack. Can the Minister assure the House that safety will not be compromised and that any changes will be agreed with the trade unions and the regulator, which play such a vital role in protecting safety on our railways?

[Chris Heaton-Harris]

Yes.

Oral Answers to Questions

Grahame Morris Excerpts

Thursday 11th March 2021 Commons Chamber

[Cat Smith (Lancaster and Fleetwood) (Lab)]

What recent assessment he has made of the effect of his policies on rail investment in the north of England on the Government’s levelling-up agenda.

[Grahame Morris (Easington) (Lab)]

What recent assessment he has made of the effect of his policies on rail investment in the north of England on the Government’s levelling-up agenda.

[Damien Moore (Southport) (Con)]

What steps his Department is taking to invest in rail infrastructure projects in the north-west.

--- Later in debate ---

[Andrew Stephenson]

I know about the proposals to reconnect Fleetwood; I know them very well, because they have been championed so well by my hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard).

Transport for the North, which, of course, was established under the Conservatives—has seen its funding for Northern Powerhouse Rail and the Rail North partnership increase year on year. Last year, TfN had funding available to it of £59 million for Northern Powerhouse Rail and of £680,000 for the Rail North partnership. For the next year, both those figures have increased—to £67 million and £700,000. We are getting on with delivering schemes. Whether it be the trans-Pennine route upgrade, the Hope Valley line or phase 2a of HS2 coming to the north of England, we are getting on with delivering.

[Grahame Morris [V]]

On that very point, will the Minister take this opportunity to correct the Prime Minister’s statement in which he denied that cuts were taking place to Transport for the North’s budget? Does the Minister believe that cutting core funding to Transport for the North by 40%, which is what is happening, freezing Northern Powerhouse Rail’s budget at £75 million —a third less than was requested—and mothballing plans to roll out contactless ticketing on services like the Tyne and Wear Metro will level up and improve transport infrastructure in the north?

[Andrew Stephenson]

The hon. Gentleman has been in this House long enough to know that the Prime Minister is always right.

Oral Answers to Questions

Grahame Morris Excerpts

Thursday 28th January 2021 Commons Chamber

[Grahame Morris (Easington) (Lab)]

What plans the Government have to support coach (a) operators and (b) manufacturers during periods of reduced demand as a result of the covid-19 outbreak.

[The Parliamentary Under-Secretary of State for Transport (Robert Courts)]

A range of support measures have been made available to UK businesses, including the coach industry, such as the coronavirus job retention scheme. Coach operators and manufacturers can also contact their local authority regarding discretionary funding provided by the Government for companies experiencing a severe impact on their businesses.

[Grahame Morris]

Notwithstanding that answer, I have a simple question: why have Ministers still not committed to providing targeted support for coach companies, most of which are small, family-run, community-based businesses that provide essential support to other sectors but have been unable to access coronavirus support packages?

[Robert Courts]

I thank the hon. Gentleman for raising this matter. I know that he led a very well-attended debate in Westminster Hall just before Christmas. This is a very challenging time for the sector; I entirely recognise that. It is a very diverse sector, and it is difficult to have a one-size-fits-all scheme. A variety of support has been provided by the Government, such as the Department for Education’s money to provide additional support for school and college transport, the Department for Transport’s money to support Christmas travel and the Treasury’s funding for the additional restrictions grant.

Future of the Coach Industry

Grahame Morris Excerpts

Thursday 10th December 2020 Westminster Hall

[Grahame Morris (Easington) (Lab)]

I beg to move,

That this House has considered the future of the coach industry.

It is a pleasure to serve under your chairmanship, Dr Huq. I record my thanks to the Backbench Business Committee and my good and honourable Friend the Member for Gateshead (Ian Mearns) for allocating time for this important debate. I thank my own trade union, Unite the union, for providing background information and briefing.

I particularly thank my constituents, Jillian Nicholson and Michael Pearson of TM Coach Travel and Northeast Coachways. The coach industry could not have two better advocates. For nine months they have asked for nothing more than fairness and justice, and a chance to survive covid, so that theirs and other small and medium-sized coach companies, often decades-old family businesses, can return to work post-covid.

The industry has a simple message to Government, and it has been delivered thousands of times in postcards from the edge. It reads, “Wish you could hear.” The Government are running out of time to listen and act. Coach operators are already going bust; employees, drivers and mechanics are being made redundant; and, the sector is losing capacity. That capacity will be vital to the recovery of the coach industry and to the whole economy, and to thousands, potentially millions, of jobs, supported by UK leisure and tourism.

Coach companies are the backbone and the supply chain for UK leisure and tourism. According to the Confederation of Passenger Transport, more than 23 million visits were made by coach in 2019, contributing £14 million to the UK tourism economy. The sector has more than 2,500 coach operators, directly employing some 42,000 people. Of course, there is then the ripple effect. Vehicle maintenance and upkeep supports an army of mechanics and garages involved in servicing and repairing vehicles.

The argument today is simple: the Government should stand by British businesses—companies that support our economy and do the right thing. The most responsible coach companies have invested in the newest clean fleets in our economy and are implementing the Government’s zero carbon climate change policy. However, ironically, they are facing the greatest loss, having to manage higher debt levels at a time when they have no income and the industry is shut down.

It is not a crisis of their own making. The number of Members of Parliament here who are concerned about this issue is worthy of note. Several who were hoping to speak have had to leave, unfortunately, because of delays to the votes and speaking in the main Chamber. This is an important issue that affects every constituency.

[Jim Shannon (Strangford) (DUP)]

I put my name down for the debate, but unfortunately I was not called. Is the hon. Gentleman aware that in Northern Ireland, the Department of Enterprise, Trade and Investment has a bespoke package of grants of £8,000 paid for the first bus and £4,450 for the second, up to a total of £100,000? That underlines the importance that the Northern Ireland Assembly has put on the bus sector, including Giles Tours and Billy Brown’s and others in my constituency. Does he feel that the Northern Ireland example might be one for the Minister to replicate here?

[Grahame Morris]

I believe there is specific support in Scotland and Wales as well. We are calling for the Minister to act and provide some sector-specific support to the coach industry in England. We are not asking for special treatment; we are asking for parity and an equal chance for the sector to survive, with support that recognises the specific impact that covid has had on the sector.

The coach sector was the first hit, the hardest-hit, and will be the last to recover. The fall in demand and income has been absolutely catastrophic—in excess of 90%. Unlike some other industries that have had the opportunity to diversify or even continue operating during covid, the coach industry has experienced a near total shutdown. Even if venues were open, such as concert venues, shows and sporting events, or holidays were still taking place, the social distancing requirements would make such coach trips unviable.

The industry needs support and the Government excluded coach companies from the rates relief support by failing to recognise them as part of tourism, leisure and hospitality or essential travel. I expect many in the industry would agree with Jade Cooper-Greaves of Henry Cooper Coaches in Annitsford. When she was interviewed by the BBC, she said:

“I have never written a job down in my diary that wouldn’t be classed as tourism, leisure, hospitality or essential travel.”

The lack of sector-specific support is crippling and the Government are failing to recognise the scale of the crisis.

In a letter on 23 November, the Minister responsible, who sits in the other place, said:

“We continue to work closely with representatives from the coach sector, including the Confederation of Passenger Transport, and with other Government Departments to understand the ongoing, specific and unique risks and issues the sector faces and how those could be addressed.”

There are many and obvious risks and challenges facing the sector.

It is not true that the sector has had support. Certainly, there has been the furlough scheme, which assisted with the employees—the drivers and so on. That was welcome, but it did not help operators with ongoing business costs, loan payments or vehicle leasing fees. And the coronavirus business loan interruption scheme has failed the industry, with the majority of the businesses in it—80%—unable to access that support.

Let us look at some other sectors. Arts, culture and heritage received £1.57 billion. I am not against that; I am simply pointing out the inconsistency. There has been a bail-out for buses and trams—£700 million. Rail—£4.5 billion, and actually it is even more than that when we take into account the emergency measures. For the voluntary and charitable sector—£750 million. Eat out to help out is estimated at £500 million. For the sports bail-out for rugby union, horse racing, women’s football and the lower tiers of National League football—£300 million.

The Chancellor said that he did not want to pick winners and losers, but that is precisely what the Government are doing by offering sector-specific support to some sectors and not to others. Let me be clear—I do not begrudge any of the sectors that I have mentioned the support that the Government have given them. But there is no transparency as to why some sectors are favoured and others ignored.

Sports are struggling without crowds, but it is the coach sector that transports those crowds. Arts, heritage and culture, hard-pressed though they are, have had some retail opportunities during covid, and in some cases are able to open now, with restrictions, in certain areas. Eat out to help out was an untargeted scheme that benefited large chains with large floor space that could accommodate more customers. Again, that support targeted businesses that were able to continue trading through covid, perhaps via takeaways or with limited capacity.

We must question the value of these bail-outs, particularly those to the bus operators, which have received £700 million. As public subsidised companies, it would be reasonable to expect them to understand the plight of the coach sector. Instead, many of these bus companies are taking the last remaining contracts, which are often travel-to-school contracts, from the coach companies. I am aware that subsidised bus operators in my own region are undercutting coach companies on already undervalued home-to-school transport contracts.

I have coach operators who rent vehicles from Arriva Bus and Coach Ltd. When they asked for a rent holiday, they were refused, even though they had no business. They were forced to return the coaches because they were unable to maintain payments of up to £20,000 a month, having no work and now also being hit with early termination fees of £80,000. I must ask the Minister—is that fair?

With all due respect, if the Minister cannot grasp the scale of the challenge after nine months, I must question their interest or competence in this matter. Indeed, I challenge the Minister. The industry is warning that, without urgent support, four in 10 companies could go bust, with a loss of 27,000 jobs, and that is not counting those jobs in the supply chain and the service sector that rely on the coach industry. We risk losing companies of good standing, and coach operators risk losing their homes due to the personal guarantees they gave on their vehicles. We cannot abandon good businesses that invest in our economy. The Government must explain why they are excluding coach companies from the sector-specific support that they have provided to other sectors.

[Dr Rupa Huq (in the Chair)]

This is a popular debate. I think that I have counted 13 bodies, with 37 minutes available; the time for the debate has been slightly stretched, because of the earlier votes in the main Chamber. I am not proposing to have a formal time limit; if everyone sticks to two and a half minutes each, we will get everyone in.

--- Later in debate ---

[Grahame Morris]

We have had an excellent debate. I thank my hon. Friend the Member for Reading East (Matt Rodda), who is on Labour’s Front Bench, for his intelligent and thoughtful exposition of the arguments; the hon. Member for Angus (Dave Doogan), who is on the Front Bench for the Scottish National party; and indeed the Minister, for listening to the points that were put. On occasions today, the debate was a bit like that quiz game, “Fifteen To One”, or maybe it was even 20 to 1, because the Chamber has been at one in putting forward the arguments in support of this sector. All the sector is asking for is fairness, consistency, some sector-specific support, a chance to survive this winter and an opportunity to get back in business in the spring. After nine months, the coach industry needs hope.

For many people who are watching the debate today, this is the final opportunity. They will have been listening the Minister’s response, so I implore the Government to take this opportunity to save this vital industry and deliver some Christmas cheer to those hard-pressed community-based coach businesses.

Question put and agreed to.

Resolved,

That this House has considered the future of the coach industry.

Aviation Industry

Grahame Morris Excerpts

Wednesday 18th November 2020 Westminster Hall

[Grahame Morris (Easington) (Lab)]

I thank the right hon. Member for Epsom and Ewell (Chris Grayling) for securing a debate on such an important issue. It is an honour to follow the hon. Member for Meriden (Saqib Bhatti).

In March, the Government promised an aviation plan. We have had a change of minister, but eight months later—with redundancies rising and the widespread use of abhorrent employment practices—we are still waiting for the plan. I ask the Minister this: when will the plan be published? Among all the uncertainty, the aviation industry has adopted some absolutely abhorrent employment practices which I and many others believe should be banned in the UK, namely “fire and rehire”.

As a member of the Transport Select Committee, I have had the opportunity—as have other colleagues here today—to question Mr Álex Cruz, who was chief executive of British Airways until recently. The initial pandemic response of British Airways was to threaten to fire all of its 42,000 staff and rehire about 30,000 of them on permanently reduced terms. The inferior terms and conditions left some workers facing huge wage cuts of between 55% and 75%. In his evidence, Mr Cruz reassured the Transport Select Committee that an agreement had been reached with the unions, and that there would be no need to issue new contracts. Frankly, I believe Mr Cruz misled the Committee, because 850 British Airways cargo workers forced to sign new contracts or be fired have received pay cuts of 25%. British Airways have threatened to outsource that part of their business, while attempting to renegotiate and weaken the collective bargaining agreement with Unite. In response to that, those staff will start balloting for strike action tomorrow, I believe, and I stand with them in solidarity as a member of Unite the union against the imposition of drastic cuts to their wages and living standards.

I ask the Minister, who previously served as a colleague on the Transport Select Committee chaired by his Conservative colleague and my friend the hon. Member for Bexhill and Battle (Huw Merriman) this: does he agree that the Government should seek to minimise job losses in aviation while protecting pay and employment rights? I sympathise with the aviation industry: it has been hit hardest by covid and has been left in uncertainty. Loyal and skilled staff should not, however, pay the price for Government failure and the pandemic, and the disgraceful practice of “fire and rehire” must be banned.