Zero-emission Buses

Ian Paisley Excerpts

Tuesday 21st May 2024 Westminster Hall

[Ian Paisley (North Antrim) (DUP)]

I beg to move,

That this House has considered the introduction of UK-made zero-emission buses.

I thank the Backbench Committee for listing the debate. At the outset, I declare my membership of the all-parliamentary group for the bus and coach industry. The chairman of that group, the right hon. Member for Scarborough and Whitby (Sir Robert Goodwill), should have moved the debate, but unfortunately, as he is the Chair of a Select Committee, his duties today find him elsewhere in the House. I want to put on the record his commitment and his desire to have been present on behalf of the group.

It is also important to put on the record that I have a major manufacturer of buses operating in my constituency. The UK is blessed with three major manufacturers—Alexander Dennis, Switch Mobility and Wrightbus—and each makes a significant contribution to the UK economy and to local employment around the entirety of the United Kingdom.

The debate is about the introduction of UK-made zero-emission buses. Why do I say “UK-made” and “zero-emission” buses? Across the whole United Kingdom, 40,000 buses are on the road; about 3,000 of those buses are zero-emission, so there is a huge opportunity. Government, obviously and rightly, want to get away from diesel-powered buses and on to zero-emission buses. That is a massive opportunity. That opportunity, however, is under threat.

In 2020, in a very important statement, the Government made a commitment to level up across the country with 4,000 “beautiful, British-built buses” that are

“cleaner, greener, quieter, safer and more frequent.”—[Official Report, 11 February 2020; Vol. 671, c. 712.]

What an ambition! It is an ambition that this House and the parties across this House got behind, and an ambition that I still hold to. I hope that we can deliver on it.

I am afraid, however, that the Department for Transport needs to look at how the policy is implemented, because I do not believe it is resulting in beautiful, British-built buses being purchased with the serious amounts of money that have been set aside for the zero-emission bus regional areas, or ZEBRA, zero-emission scheme. The original ambitions that drove the design of that policy to support UK bus manufacturers have been overlooked in the implementation and roll-out of the policy, resulting in many local authorities and transport authorities buying non-UK-made British buses.

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

I congratulate my hon. Friend on securing the debate. It is always good to support a colleague when they secure such an important debate. On the issue of UK-made buses—he has repeated “UK-made” several times, quite rightly—does he agree that that is all the more important now when we look at the challenge coming from China and the far east? More and more, a huge challenge is being made to the west and the UK. We have to meet that challenge and rise to it. As he indicated, that is what the Government need to respond to.

[Ian Paisley]

I was going to come on to that point later, but I will come on to it now, because it gets to the nub of the issue. The ZEBRA 1 and 2 schemes promised the United Kingdom £312 million of taxpayers’ money to fund the purchase of 2,270 buses. That is a major impact on the provision of zero-emission buses. I hope that Members are shocked by the next figure, however, because, according to the final purchasing decisions that have been made, 46% of those 2,270 buses will be manufactured outside the UK, principally by China.

On the one side, we have to giggle, because we are making zero-emission, green-energy buses, within our shores, for the home market, and therefore the footprint of the manufacturing of those things should also be green, but 46% of these buses are coming from what is, apart from Australia, the furthest away country in the world, and they are being delivered to us. I am not going to bash the companies that make them in China, but their buses have a shorter life cycle on our roads—almost a third less—and are therefore ultimately less efficient, yet 46% of the ZEBRA money is going overseas. What is that money doing? It is supporting overseas technology—cutting-edge technology. It is supporting overseas jobs. It is supporting cutting-edge, well-paid, highly skilled manufacturing jobs and it is supporting them in other countries, but we are crying out for that money to be spent on high-skill, green-energy, high-tech jobs across the entirety of the United Kingdom. Some 10,000 people are employed in the supply chain for manufacturing buses across the United Kingdom: electronics engineers, hydrogen engineers and manufacturers, engineers, of steel. All that is being undermined by a policy that was put in place to build beautiful, British-made, clean, green, better buses.

I am pleading, not on behalf of the companies, which are big companies, but on behalf of workers across the United Kingdom who are entitled to these jobs and who are entitled to bring stuff home to their wives and families and their husbands and families, to make sure that the jobs stay in British hands. I am not arguing that we buy an inferior product, but British-made buses, whether they are made by Switch, Wrightbus or Alexander Dennis, are the leading cutting-edge buses in the world. That is shown because they are manufactured not just for this country—other countries demand them. But we cannot go in and undercut other bus companies in countries that make buses. The countries that buy buses from us do not make buses, so we are competing in a fair market. Unfortunately, one of the largest countries in the world, the Chinese state, is manufacturing buses, subsidising their manufacture and the technology is coming here and undermining us. We have to take a good, long, hard look at that and ask the question: is that really where we want to be?

Every constituency in the UK benefits from British-made manufactured products. I do not say that glibly; it is based on fact. I have gone through a register of all the councils and local authorities across the whole United Kingdom that have received money from the ZEBRA zero-emission scheme, and have listed all the constituencies covered by that—it comes to about 180 constituencies, and those 180 constituencies benefit in some way from the manufacture of buses in the United Kingdom. They are getting ZEBRA money, but unfortunately 46% of the money is going outside this country and they are not buying the British product.

I will not do so, Mr Rosindell, but I could read out the name of every single local authority that has received millions of pounds. I have the information here and I am happy to leave it in the Library for hon. Members to study. It goes through every single local authority that has received millions on millions of pounds, yet some of those authorities are not spending that money on British-made products. A couple of examples stand out, and I will bring them to Members’ attention.

Last year in Blackpool, there had to be a complete retender after protests led by the chairman of the APPG, myself and other members of that group. We pushed the Government to retender the Blackpool order because it had gone to a Chinese company. It was an order for 90 buses, or about 30 million quid of manufactured goods. I am glad to say that the tender, which originally went to the Yutong company in China, was won following retender by Alexander Dennis. It was discovered that the social and economic benefit that flowed from the manufacture of those buses in the United Kingdom outweighed a slightly cheaper product being brought in from overseas.

Transport for London announced at the weekend the purchase of over 100 new double-decker electric buses. Unfortunately, that order was made to a Chinese company called BYD, further increasing the reliance on oversea supply chains. I want to deal with this matter of Transport for London. No matter which part of the United Kingdom we come from, no matter our passion about Ulster, Scotland, Wales or the north of England, London is our capital. It is the flagship. What happens in London, the world sees. It is the window into the United Kingdom. When I stand on the Terrace of this House and see bus after bus going over Westminster bridge, I know by the shape of them, “That one was made in Ballymena, and so was that one. That one was made in Scotland, and that one was also made in Ballymena.” I know by the shape of them that those buses are ours, and we are proud. That says to the workers in my constituency, “Look what you’ve done—isn’t that fantastic?” Their work is in the window to the world. People see them or jump on and off them and think, “These are fabulous advertisements of the skillset that is in the United Kingdom”.

I then hear today that a £40 million contract has been handed by TfL to BYD in China to make the next 100 buses for this city. There are thousands of buses in this city. People say, “You’ll hardly notice them”. That is not the point. The point of the matter is that that is where we are spending our money, and that will soon become the flagship. People say, “Well, they’re slightly cheaper.” That is penny wise and pound foolish if that is the way they are making the decision, because the situation is much more disturbing than it just being slightly cheaper.

I take the view that it is not green to buy the buses from so far away whenever we are manufacturing them at home. In 2021, the United Nations working group on business and human rights wrote to BYD, saying that it

“had received information that your company may be involved through your supply chain in alleged forced labour, arbitrary detention and trafficking of… Uighur [Muslims] and other minority workers”.

BYD did not respond to that inquiry from the United Nations. Whenever it was approached by the trade magazines to respond, BYD refused to comment. Our nation has a duty to ensure that if we are buying overseas products, we are not buying them from a country that uses slave labour or abuses its workforce. I will tell hon. Members one thing: our workforce in the United Kingdom is not abused. They are paid good wages, make good products and are proud of what they do. If that abuse is happening, it is a double offence on what we should be looking at and doing with this resource.

[Jim Shannon (Strangford) (DUP)]

My hon. Friend has underlined the crucial issue of human rights abuses and the persecution, trafficking and all sorts of things happening to ensure that China can produce a bus more cheaply. When it comes to our councils buying buses in the United Kingdom—it is brought up all the time in Parliament—is there not a need for central Government to ensure that if that is what is happening, those buses or, indeed, any product, are not bought?

[Ian Paisley]

That is a point I will come to whenever I make requests of the Minister at the end of my speech. I thank my hon. Friend for making that important point.

I have an appeal for Transport for London, which has been one of Northern Ireland’s most brilliant customers. It allowed us to come up with the new iconic London double-decker bus, which is a flagship—it has been brilliant. Whether the administration has been controlled by the Conservatives or by Labour, the respective Mayors have been absolutely brilliant about helping Wrightbus to go forward, but the decision by the current Mayor and Transport for London should be taken back and looked at again. It is totally wrong and scandalous that our nation’s capital should have a bus with a questionable reputation concerning its manufacture and £40 million of ZEBRA money.

I have some policy asks for the Minister. I am delighted that he is visiting my constituency soon. I hope he will visit Wrightbus and other manufacturers, and see the supply chain across the whole of our country, including all the other little companies—micro-companies—that rely on this manufacturing giant. I want to draw the Minister’s attention to a number of things about the impact of ZEBRA. First, the Department for Transport should ensure that no ZEBRA 2 funding is used by local authorities to purchase buses from outside the UK, which was a point made by my hon. Friend the Member for Strangford (Jim Shannon). To support this, bus operators should be encouraged by the Government to place a greater emphasis, whenever they are evaluating tenders, on social value for the tender and the wider economic community impact.

I am not asking the Government to do anything illegal or to use any sleight of hand. I believe the law allows the Government to weight the tenders in such a way that there will be a successful outcome for British manufacturers. I am not proposing that the company in my constituency is the only one that benefits. Alexander Dennis, Switch and so on are all competing companies making brilliant products, and they should all be allowed to have a fair crack of the whip. One camp dominates the entire market, but I want those companies to have a fair crack of the whip. They cannot have a fair share in the market if they are outbid and outmanoeuvred by what is happening in another country.

Secondly, the Government need to give industry long-term confidence in what they are doing, by setting an ambitious plan to say that a quarter of all the buses on British roads—10,000 buses—will be emission free from 2025 to 2030. If the Government said that to those companies, they would gear up and scale up, and it would reduce the overall cost of the final product, so the potential of these companies would be realised. Going forward, we would see a vast array of new tech coming through British companies and manufacturers, because they would have the confidence in there being 10,000 orders to keep their companies in business for year after year. That would increase investment in those companies.

The Department for Transport should consider creating a Crown Commercial Service framework for zero-emission vehicles to supply and expedite the tender process. It should collaborate with other Government Departments to conduct a formal review of how other countries purchase buses and prioritise domestic content when evaluating their tender process.

The DFT and the Department for Business and Trade should provide further detail on the Trade Remedies Authority and support with the process of gathering evidence of unfair practices. There have been allegations that some of these orders have led to kickback through other companies. That should be investigated, and this should be totally transparent. I can tell Members one thing—there is no kickback through the three British companies. What is going on is clear and transparent. I hope that the Government will allow us to have confidence in how we view the future, and so that our British manufacturing companies can say, “We have turned a page today and we are going forward on a new footing. In future, the lion’s share—the overwhelming majority—of ZEBRA money will be spent on British manufacturing.”

--- Later in debate ---

[Ian Paisley]

I thank all Members who participated in this debate. Some small friction has emerged here and there, but there has been a clarion call that we are all on the same page and want to see this industry flourish, and there is a vision of how it can flourish. Although the Minister was able to have his cake and eat it, I think our companies want to see more cake and get more slices of that cake; they are right to be ambitious about having that, and I hope that they can have it.

The hon. Member for Mansfield (Ben Bradley) quite rightly raised the point that he does not have a bus company in his constituency but that there is spin-out in terms of opportunities for young people, skills development and all the rest of it. If we get behind this skillset and opportunity and develop the best hydrogen bus, which we are already doing, we will then start developing the best hydrogen rail coaches, heavy goods vehicles, shipping facilities and aircraft. We will be in the midst of a technological revolution driven by these islands, but it will happen only if we get behind and push it. That will lead to jobs in the hon. Member for Mansfield’s constituency and to the tech and opportunities. It will lead to success, and it will be unrelenting, but it will happen only if we ensure that we actually deliver on the strategies being put in place and ensure that we are not lazy at any point and throw the odd bus order or manufacturing job here or there because we can.

We must get behind this and ensure that the outcome is in the interests of these islands, because unlike China we are not at the cutting edge of battery technology. We must buy practically every single battery from China. It has cornered that market, which is fair enough, but we are at the cutting edge of hydrogen; we could take over that market, but only if we see the vision.

I hope that the Minister gets behind us and replies to me in writing on the issues that I raised earlier. I plead with him and hope that we can see some of the success. When he comes to Wrightbus, I will ensure that Jenny Bristow, one of our local chefs, bakes him a cake that means that he will forget forever any other piece of cake he has had anywhere else.

Question put and agreed to.

Resolved,

That this House has considered the introduction of UK-made zero-emission buses.