Driver and Vehicle Agency (Northern Ireland)

Gregory Campbell Excerpts

Tuesday 15th October 2013 Westminster Hall

[Mr Gregory Campbell (East Londonderry) (DUP)]

It is the normal protocol for those who speak in Westminster Hall to congratulate the Member who secured the debate and to say that it is about a topical, important issue. I can say, with the utmost assurance, that this is indeed an exceptionally topical, very important issue in Northern Ireland; more than 200 jobs are at stake in the Coleraine area, and more than 300 are at stake in Northern Ireland as a whole. The knock-on effect would be on a total number of jobs in excess of 500.

At the outset, I want to apologise for the absence of my hon. Friend the Member for North Antrim (Ian Paisley), who has worked closely with me on this campaign, as his constituency adjoins mine. Many of the employees involved come from one or other of our constituencies, as they do from throughout Northern Ireland. I want to give a few indications of the wider context before coming to the nub of the matter, in relation to the Driver and Vehicle Agency and the services offered there.

The Causeway coast area and Northern Ireland as a whole have been severely hit by unemployment in recent years. People will ask: has the whole UK not been hit like that? The answer, of course, is yes, but more significantly so in Northern Ireland. We have been cushioned a little by the dependency on the public sector in Northern Ireland. In that context, last week, no less a person than the Prime Minister was in Northern Ireland to try to encourage inward investment, because he, the Government, the Executive and my friend and colleague Arlene Foster, Northern Ireland’s Minister of Enterprise, Trade and Investment Enterprise, realise that because of the dependency on the public sector, we need to encourage inward investment from the private sector.

This is not a case of taking jobs from the public sector and trying to transfer them into the private sector; it is a case of supplementing our existing dependency on the public sector through private sector inward investment. Therefore, the Prime Minister came, last week, to try to bring jobs to Northern Ireland, so the last thing we want to see, as a result of the consultation that closed a few weeks ago, is his Government taking jobs from Northern Ireland. Hopefully, that will not be the case. The north coast has a lower-than-average wage structure, compared with Northern Ireland as a whole, which has a lower-than-average wage structure than the United Kingdom. We can see the absolute dependency not only on getting and creating more jobs, but on sustaining the employment that we have.

The context of the proposed relocation goes back some eight years. I first raised the issue in 2005, when the previous Government were looking at possibly amalgamating driver and vehicle licensing services to Swansea. Thankfully, that was overcome; good sense prevailed eight years ago, when people saw the efficiencies that could be achieved and the service that could be maintained to motorists and others in Northern Ireland.

In terms of the numbers, 230 people are involved in Coleraine and more than 100 are involved in the rest of Northern Ireland through the various sub-offices. The employment of 200 more people, on top of that, depends on the DVA in Northern Ireland. Should centralisation go ahead to Swansea, the total wage loss to the Northern Ireland economy would be in excess of £11 million annually. That would lead to a total economic loss of about £20 million to Northern Ireland, which we simply cannot afford.

I raised the issue with the Secretary of State for Northern Ireland, as did many of my colleagues. She made a straightforward commitment:

“It is important that he”—

the Minister—

“takes into account the views of Northern Ireland before he makes his decision.”—[Official Report, 6 March 2013; Vol. 559, c. 944.]

That was an obvious but radical statement. Just two weeks ago, the views of the people of Northern Ireland became absolutely clear, if there was any doubt. A debate was held in the Northern Ireland Assembly. As interested observers of the Assembly will know, there can, just occasionally, be matters of division there on political matters. From time to time, we do not see eye to eye—says he, with a bit of sarcasm in his voice. On this issue, however, there was not only cross-community support, but total and utter unanimity. Not a single voice of dissent came from the Chamber. The voice and views of the people of Northern Ireland were endorsed two weeks ago, on 30 September, when the Northern Ireland Assembly voted unanimously to support the retention of jobs and services at the DVA in Northern Ireland.

I turn to the jobs and services that are provided. In the agency, an assessment has been done on the work force’s composition. Some 73% of the work force are female, many of whom are carers and have other dependants. Any decision to centralise the services in Swansea would have massive implications, not only for the employees, which is obvious, but for all their dependants. Some of those females are part-time employees. The prospect of trying to get other employment in a Northern Ireland that is trying to attract inward investment, as I have just alluded to, is going to be remote. It will be difficult to attract other employment opportunities for the predominantly female staff.

I turn now to the services. An analysis has been done of the services offered by the DVA, and current satisfaction rates are very high. I want to draw a comparison between the satisfaction rates for the services offered in Northern Ireland and those for the Driver and Vehicle Licensing Agency in Swansea. I do so with a word of caution, because I fully understand that the sheer scale and complexity of the DVLA in Swansea provides a much more challenging environment in which to achieve targets. That is all the more reason, I would have thought, not to add even more to the burden that the people in Swansea already face.

The facts are as follows. For example, a survey in the past 12 months has shown that 95% of the transactions involving changes of registration are completed at the DVA in Northern Ireland within five working days, which is an excellent achievement. The same 95% completion rate at the DVLA in Swansea is achieved in 11 working days. Given the sheer complexity and scale in Swansea, completing changes of registration almost exclusively in 11 working days—95% of the time—is a reasonably good performance, but in Northern Ireland we achieve the same in less than half the time. People in Northern Ireland will be saying, “If centralisation goes ahead, are the change of registration processes going to worsen by more than double?”

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

I congratulate the hon. Gentleman on securing the debate. He might be interested to know that I questioned my officials on the issue he raises, because I was aware of the potential problem. I was assured that the differences in refunds are due to the different ways in which the transaction is measured. The DVA’s target is to process and refund within five days, but that does not take into account any subsequent work that may arise in complex cases. The DVLA’s target is measured from time of receipt until a refund has been issued. The time taken to process the transactions is about the same in both agencies.

[Mr Campbell]

I thank the Minister for that explanation. I was going to come to refunds next.

[Stephen Pound (Ealing North) (Lab)]

I am sure that the hon. Gentleman is aware that the staff side response to the consultation refers to the perception in the DVA, which in many cases is backed up statistically, that the DVLA has vigorously, systematically and aggressively underfunded the IT development system in the DVA. Under those circumstances, does he agree that Northern Ireland has a remarkable work force that should be cherished rather than centralised?

[Mr Campbell]

I thank the hon. Gentleman for that contribution. I was coming on to IT—as he anticipated, in his usual prescient way.

[David Simpson (Upper Bann) (DUP)]

Will my hon. Friend give way?

[Mr Campbell]

Yes—I am in the mood for giving way, so I will give way to my hon. Friend.

[David Simpson]

I thank my hon. Friend and commend him for securing this important debate—when some 500 jobs are at stake, it is indeed a very important debate. If the figures he has given about Swansea are correct, surely moving everything from Northern Ireland to be centralised will compound the problem. A longer time scale for the completion of customers’ paperwork will be inevitable.

[Mr Campbell]

It appears to me, and I think to most people, that that would be the case.

The 95% target for applications for refunds is achieved in 30 working days in Swansea; again, allowing for the scale of the millions of people who tax their vehicles, achieving that figure is a challenge. The target in the same category in Northern Ireland is achieved in five working days—95% of refunds are cleared within five working days. Whichever way we cut this, it is absolutely clear that in terms of value for money for a service, a significant service is being offered.

The hon. Member for Ealing North (Stephen Pound) made the point, and the work force have repeatedly told me, that there has been under-investment, in the IT infrastructure in particular, for many years. In that context, the fact that the work force achieve such remarkable results is to be cherished and they should be secured for the future.

Recent analysis of the database of customers that the DVA serves shows that more than 60% of DVA customers are aged 44 and older. As we all know, that age group is less likely to be IT literate or to be online to take advantage of registration via a computer. The vast bulk of potential customers would be disadvantaged if the services were transferred to Swansea and the push for greater online registration continued, as a result of the loss of face-to-face and telephone services and local recognition and knowledge of that demographic in Northern Ireland. The Minister must take account of that.

I want to raise an issue about which there can be no dispute: Northern Ireland is the only region in the UK with a land border with another EU state—the Irish Republic. Traditionally, over many years, evasion rates have been significantly higher in Northern Ireland, but the rate has reduced considerably due to a comprehensive campaign there. Part of the reason is the local work force with local knowledge of vehicles and residences. Evasion rates that had continued to be high in the past have recently been reduced.

What are the chances of evasion in Fermanagh, south Armagh and Tyrone, which have borders with the Irish Republic, being detected by people operating from Swansea? The task will be much more difficult. I contend, with some justification given the previous figures, that evasion rates will rise, rather than fall. We do not want to encourage evasion or allow it to increase, rather than continue the drive to get it down.

An important reference point has emerged in the past four days. From media reports over the weekend, I understand that the DVLA’s independent complaints assessor has a draft report on the past two years, 2011-12 and 2012-13, with the various Departments for accuracy checking. When it is released in two weeks—I was assured yesterday that it will be released by the end of October, and I hope the Minister can confirm that—it will confirm a significant increase in the volume of complaints about the service people get at the DVLA in Swansea. Obviously, it is a draft report and we will wait to see the final outcome, but if complaints are increasing, part of the reason will be the sheer volume and complexity of cases being dealt with at one central agency. If anything can clinch the case for retaining a localised service, it will be in the context of the series of events I have outlined.

[Mr Goodwill]

Prior to the debate, I asked about the level of complaints. I was told that in the most recent year for which we have statistics, there were 12,500 complaints to the DVLA, which, measured against 170 million transactions, represents 0.01%. The increase in the level of referred complaints is due to a change in how complaints are handled. Previously, the chief executive had to refer complaints for consideration; they now automatically go through, which to some extent explains the increase in complaints that has been registered.

[Mr Campbell]

I am glad the Minister has confirmed that there has been an increase. I note that he said “in the most recent year”; my understanding is that the draft report refers to the past two years. Perhaps he has further information about the increase in the previous year, but I do not think he has. I accept the Minister’s comment on the increase and the reason for it. My colleagues and I have raised significant points and there are good reasons for retaining a local service that will take account of the issues.

In conclusion, I ask the Minister to do three things. I have invited the Secretary of State, and I invite him, to come to Coleraine in Northern Ireland to see at first hand the level of service and the work that is put in by employees, before coming to the final decision. In connection with that, I want the Minister to take account of the unique circumstances that prevail in Northern Ireland before coming to his decision. I also call on him to retain the excellent services that we have in Northern Ireland and those much needed jobs that go with them.

--- Later in debate ---

[Sammy Wilson (East Antrim) (DUP)]

I am happy, Mrs Riordan, to take part in this debate. I recognise that this situation is not unique to Northern Ireland, because, of course, 1,200 jobs across the United Kingdom will be lost in 39 regional offices. However, the difference is that one quarter of those jobs are located in Northern Ireland, and one sixth of them are in one town. Our case is that there will be a disproportionate impact on one area, which has already suffered significantly from job losses.

I want to consider three areas this morning. First, will the new system be better than what we have at present? The Minister will argue that it will make available to people in Northern Ireland services that are currently not available. However, surveys show that not many people are looking for those services. Indeed, many have said that they do not wish to use such services. Some 60% of customers and 90% of dealers say that the services that are being withdrawn are the ones that they wish to use. The proposal, therefore, is not a response to what the public, who are paying for vehicle licensing, say that they want.

The people who will be affected include small dealers. Some 20,000 new registrations every year come through small dealers, who mostly use local DVA offices because they do not necessarily have the computer back-up for online services. Then there are the complex cases. Indeed, the Department’s own estimate is that 2,000 or 3,000 complex cases will have to be dealt with by post, so people will have to deal with Swansea, rather than having face-to-face encounters at local DVA offices. That will inevitably lead to difficulties. The fact that a case is complex suggests that a person needs to talk to someone.

By the Department’s own estimate, some 3,000 people will find that they are less well off. The Minister has cited the matter of refunds and given us some figures, but if wants to ask some questions of his officials, perhaps he should ask not just about refunds but about first registrations, changes to registrations and the average wait at offices. On all those matters, Swansea’s performance is poorer than that of the DVA offices in Northern Ireland. Service will be reduced to a wide range of customers and on a wide range of issues.

On fraud—I can see my colleagues laughing here—we have a rigorous system in place for those in Northern Ireland who do not pay their road tax. Indeed, I have been a victim of it. No allowances are ever accepted. I got caught taking my motorbike to the garage to get it prepared for an MOT. Even though I could prove that, officials said that it was on the road without tax, so I got fined and received a lot of publicity. Because of such rigorous enforcement, we have the lowest rate of evasion of anywhere in the United Kingdom. If that goes up—only seven prosecutors will be left and no arrangements have been made with local agencies—there will be a loss to the Exchequer.

On whether the service will be better, the answer has to be no, it will not. Will it save money? We already know that one reason behind the centralisation is the huge capital costs involved in the new IT system.

[Mr Campbell]

My hon. Friend alluded to whether the service will get better. As a number of Members have said, it appears that it will get worse. Does he agree that the service in Northern Ireland will not only suffer? Given the figures on the centralised process in Swansea, which a number of us have outlined, the service in the rest of the United Kingdom will also suffer because of the additional work load that Swansea will have to deal with if centralisation goes ahead.

[Sammy Wilson]

That is the point that I want to make in relation to cost. The hon. Member for Ealing North (Stephen Pound) said that as a result of centralisation and the additional work load, even some of the savings that had been anticipated have not been realised because overtime payments have gone up.

Of course, the additional work load that will result from the Northern Ireland move will put further pressure on the system. I suspect that the 400 new jobs that will be created in Swansea will not be sufficient to deal with the work load, so some of the savings anticipated in the proposal will not be realised. We must look at what the customers want and what is feasible for the Treasury. The additional costs must also be considered.

We do not get much cross-departmental thinking, but we are talking about an area with high unemployment. I supported the restructuring of the Northern Ireland economy, and I would love to think that all the people who will be displaced as a result of the DVA decision will easily move into jobs in the private sector, but when there have already been significant job losses in the private sector in towns such as Coleraine, the only place that they will move to is the dole queue. That in itself adds additional costs to the public purse, so I do not believe that there is an economic case for this change either.

I do not want simply to say to the Minister, “Look, we don’t like this, so don’t do it,” but a number of options have been proposed, and the “do nothing” option is one of them. The IT costs, which have already been sunk, will be lost. The Department wishes to give additional services to people in Northern Ireland, even though the majority of them do not want those services. Indeed, I point out to the Minister that even after 10 years in Great Britain 50% of people still do not use online services, so we are not unique in Northern Ireland in that respect. As I say, the “do nothing” option has been proposed. Choosing it would not cost anything, but of course the costs of the IT system have already been sunk.

I ask the Minister to give serious consideration to one suggestion that has been made. Yes, there will be a transition; there is resistance to the changes. There is quite clear evidence that people still want to use the DVA services. If the new system were put in place, those who wish to use the new services and the new methods of delivering them could do so, and those who did not wish to use them—that residual group of people—could still use the full DVA services. That would probably mean that 100 jobs would be lost immediately, but the rest of the jobs would be retained. Three offices would remain, but the rest would have to close. That is the estimate that has been made in Northern Ireland. Over time, that situation might change as people get used to the new services, but at least this option would avoid the big bang of sudden job losses—all the jobs going—and there would be no gap for people who need, or want, to use the face-to-face services.

Choosing that option would also produce considerable savings. The savings on the running costs would be £4.5 million—a 36% reduction in running costs in Northern Ireland and twice the savings that the Driver and Vehicle Licensing Agency anticipate will result from the change to the integrated system. So the Minister could make the case for choosing that option on the basis that savings would still be available.

Choosing that option would also mean that DVA staff in Northern Ireland would be trained on the new system. Bearing in mind what has already been said about the pressures that exist on the Swansea system at present, choosing that option would provide a contingency for DVLA to fall back on—a contingency of trained staff in Northern Ireland, in a place where, as has already been pointed out, productivity is far greater than elsewhere. So choosing that option has a number of benefits. It is one way to retain a significant number of jobs in Northern Ireland and avoid the proposal’s high economic impact on one part of the United Kingdom. The impact would be disproportionate, but I will not go through all the figures that other Members have already mentioned.

There are, of course, other options, including transferring blocks of services, but I do not think that the Minister can simply say, “Look, we have decided that all these services will be withdrawn, and there will be this huge gap left in the job market in Northern Ireland.” To me, saying that would not be good for customers, the Exchequer or the Northern Ireland economy, and it would not make sensible use of the skills that already exist in Northern Ireland and that will be abandoned if this change is made.

--- Later in debate ---

[Mr Goodwill]

I thank the hon. Gentleman for his question. Unemployment in Northern Ireland is lower than the UK average, and it has fallen by 1.2% in the past year. The analysis provided by Oxford Economics does not reflect the full impact the changes to the DVA’s operations will have, because it takes no account of the benefits from the expansion of digital services and the widening of services offered at post offices. Those changes will increase choice and ease of access for customers and reduce the cost of vehicle licensing and registration to businesses, ultimately increasing employment in Northern Ireland.

[Mr Campbell]

The Minister alluded to the 1,200 job losses in the rest of the UK. Does he accept that Northern Ireland, which has a much greater dependency on the public sector, has one thirtieth of the population of GB, so 1,200 lost jobs in GB should equate to 40 lost jobs in Northern Ireland? However, rather than losing 40, we will lose 500.

[Mr Goodwill]

I appreciate that a large number of people in Northern Ireland are employed in the public sector, which means these job changes, should they happen, would have all the more impact—particularly in places such as Coleraine, which is isolated from parts of the country where other public service jobs may be.

There are also economic facts that need to be considered. If introduced, these changes will save taxpayers throughout the UK £12 million a year, while introducing significant new services for motorists in Northern Ireland. I understand that hon. Members from Northern Ireland are concerned about the impact that the loss of more than 300 jobs would have on the economy of not only Coleraine, but Northern Ireland generally.

The Department of the Environment in Northern Ireland, which employs the DVA staff, has stated that it will seek to redeploy them and avoid the need for redundancies, where possible. However, I understand that there are some local issues. For example, 73% of the workers are female, so redeployment may not be possible, for family reasons. In the event that a decision is taken to press ahead with the proposals outlined in the consultation, I will make sure that the DVLA works openly with its counterparts in Northern Ireland to develop a transition plan for the affected staff so that the impact can be reduced.

There is some question about how many people in Northern Ireland will want to use online services or will be able to do so, given limits to broadband internet access. The 2013 Ofcom report shows that 80% of Northern Ireland households have internet access, and 93% of addresses are connected to high-speed fibre-optic broadband, owing to investment by the Northern Ireland Assembly. That compares well with the rest of the UK. However, some people will be unwilling or unable to use digital services at this time, and it is, of course, their right to make that choice. That is why many of the services currently available only at the DVA’s centre in Coleraine or at one of the eight other local offices in Northern Ireland will become available at about 150 post offices.

To summarise, while I understand the concerns that the hon. Member for East Londonderry and other hon. Members have expressed, I am keen to stress the positive benefits the changes would bring to Northern Ireland motorists, if adopted. I hope I have done that today. The wider availability of online and face-to-face services can only benefit customers.

The Minister previously responsible for this matter, the Under-Secretary of State for Transport, my hon. Friend the Member for Wimbledon (Stephen Hammond), had agreed to meet the hon. Gentleman and other hon. Members to discuss this matter. I am pleased to confirm that I am prepared to have that meeting, if not on 4 November, when it was scheduled to take place, then around that time. I stress that no decisions will be made until after that meeting. No firm timetable has been set, but we expect a decision by the end of this year or early next year.