Superfast Broadband Delivery: Somerset

Debate between James Heappey and Rebecca Pow

Tuesday 13th November 2018 Westminster Hall

[James Heappey (Wells) (Con)]

I beg to move,

That this House has considered superfast broadband delivery in Somerset.

It is a pleasure to serve under your chairmanship, Ms Dorries. I know the Minister is swimming in unfamiliar waters this morning, but I am very grateful to him for coming to respond to this debate.

The Connecting Devon and Somerset intervention area, or CDS, is the biggest in England, and it is connecting some of the hardest-to-reach communities in the country. CDS did not have an easy task by any stretch of the imagination, and it is important to say right at the outset that the purpose of today’s debate is not to beat up CDS for the Gigaclear contract unravelling as it has. In fact, rather than starting with criticism of CDS, I would like to pick out Matt Barrow, an employee of Devon County Council who has been working on the Connecting Devon and Somerset project since its beginning, and who has spent hours by my side in public meetings in village halls across my constituency. I know he has done it with many colleagues elsewhere in their constituencies, helping residents to understand the differences between fibre to the cabinet and fibre to the premises, the way that CDS is working and when they will get their broadband.

There is absolutely no shortage of effort or expertise at Connecting Devon and Somerset, and the organisation has all the right intentions to deliver the best possible quality broadband to the residents of Devon and Somerset as quickly as it can. The reason we have this debate this morning is that the Gigaclear contract, which was signed for the delivery of phase 2 of the state aid intervention, has not run to time. Indeed, at the very first check after only six months of its anticipated delivery, Gigaclear is already well behind and has admitted that it needs to relook at the programme for delivery.

There are three key areas for our discussion this morning. The first is the soundness of Gigaclear’s position. Can it actually deliver what it has said it can? The second is the continued case for state aid in some parts of Devon and Somerset. The market has changed over the last year or so, and commercial providers are now delivering fibre to the premises, which raises a question about the legitimacy of state aid in those circumstances. Thirdly, how can we get on with the final 5% of premises that are now awaiting connection?

[Rebecca Pow (Taunton Deane) (Con)]

I commend Connecting Devon and Somerset on the biggest roll-out of rural broadband in the country. A great deal has been achieved, but it must not be forgotten that many of my constituents, and indeed those of my hon. Friend, have been ill-served. They have waited all this time, but nothing has been delivered. It has been a catalogue of incompetence and things that have arisen by the way, and many of my constituents are still not receiving broadband. The most important point in all this is that we resolve it as quickly as possible.

[James Heappey]

I think my hon. Friend means that nothing has come yet as a consequence of the phase 2 contract, and she is absolutely right. The phase 1 contract, which was a fibre to the cabinet deal, is now complete in its delivery. Tens of thousands of homes and businesses in my constituency have benefited from that, and I am sure that my hon. Friend has seen the same in hers. She is absolutely right that we are more than six months into the delivery window, and it has been over a year since the contract was signed. Not one constituent of mine is a Gigaclear customer yet, and I know from my hon. Friend’s intervention that it is the same in her constituency, too.

Gigaclear’s position is what it is because they were supported by the Carillion group, which met its demise. I think it is now clear that Gigaclear has quite inexplicably failed to understand that a lot of roads in Devon and Somerset are single-track lanes, which require somewhat more endeavour to dig up and somewhat more planning around road closures—it is not possible simply to go down one side of the road or even on the verge to the left or right.

I am inclined to agree with some of the comments from the county councils. There was overconfidence on the part of senior management at Gigaclear: they were telling the Connecting Devon and Somerset leadership and our county councils that all was fine, when it was obvious that things had not progressed as they should have. In the light of that, we need to ensure that what Gigaclear now says it is capable of doing is realistic. It has already overpromised once. As it seeks to put together a remedial plan to deliver the contract, we must ensure that it is at a realistic pace, so that, crucially, our constituents can have certainty about when their broadband will arrive. The Government, the Broadband Delivery UK programme and the county councils will want to be certain about the continued financial support that Gigaclear has secured.

I will raise some issues later that make the business case slightly less sound. It needs to be tested by BDUK and CDS to ensure that Gigaclear is still the answer, especially since the market has changed and commercial delivery is happening. When Gigaclear gets to communities as part of the state aid programme, it may well find that they already have fibre—it will have already been taken up. Gigaclear might not hit its uptake targets or realise the customers that it was expecting to. Now that Gigaclear is operating in a more competitive environment than the one that it negotiated when it took on the CDS contract, we need to look robustly at whether their numbers still stack up and whether we need to relook at the intervention area. In the briefing to MPs last week, which was the first indication that we had had of what the remedial plan would be, Gigaclear said that by the summer of 2020 it would deliver 40% to 50% of all that it had promised to have completed by 2020. That is a significant reduction in the pace of delivery, and Gigaclear now wants to deliver the remainder of the contract by 2022.

[Rebecca Pow]

On that point, is it not the case that the Government funding secured by Gigaclear needs to be spent by March 2020? One of the key issues is whether we could ask for an extension of the funding in order for Gigaclear to get its house back in order and to roll out the new, proposed programme that they are suggesting to us.

[James Heappey]

My hon. Friend is ensuring that the Minister gets the message loud and clear, because that is one of the key questions for today’s debate. The remedial plan presented by Gigaclear already runs beyond the date that the Government have said that all available money for the delivery of phase 2 will be spent. Clearly, if Gigaclear’s remedial plan is accepted, the Government will need to be willing to extend the period over which the money is spent from 2020 to 2022. I hope that the Minister will be able to give us some good news on that.

Given that only 40% to 60% of properties that were due to be connected by 2020 will now be connected by that time, we might also look at whether we should offer a voucher scheme to people who now find themselves in the 50% to 60% that will not be connected, so that they can take some sort of interim measure themselves. We did exactly that for those who were going to be in phase 2 or in the final 5% when the phase 1 delivery programme was rolled out; we offered voucher schemes of £500, so that people could take interim measures within their homes.

The second issue is the ongoing case for state aid, which we have spoken about a number of times. When the delay in the Gigaclear delivery was first announced, I was straight on local TV and radio, and speaking to my local newspapers, because I was very, very cross. My expectation was that my mailbag was about to explode and that I was going to be contacted by hundreds, if not thousands, of very angry people who were concerned that the broadband they had been waiting for for years and they thought was just weeks away was actually going to be years away again.

The reality is that I have had hardly anything, and that makes me wonder why. If I go back to my former employment, there is a very important part of the military planning process. When assessing the orders to be given in order to achieve a mission, we keep asking ourselves whether the situation has changed, in order to make sure that we are not problem-solving against a situation that no longer exists. I have come to realise in the last few weeks that the reason why so many of my constituents have not been in touch with me about the Gigaclear delay is that they have sorted themselves out.

They have gone to Openreach and put in place a community fibre partnership, or they have gone to companies such as TrueSpeed or Voneus that have cell-to-build business models. Those companies go out into communities and engage, they get 30% sign-up and then draw down the money from Aviva, which underwrites the delivery of the infrastructure, and they build the fibre into those communities. When the Gigaclear contract was delayed, there was complete silence from all those communities that were flashing red on the whiteboard in my office as those which most urgently needed broadband. The reason is that the market is already providing, and has already provided, for a number of them.

[James Heappey]

My hon. Friend and neighbour is absolutely right: the market is delivering. Whatever the business model, and whether that is cell first and build second, I now have hundreds, perhaps even thousands, of TrueSpeed, Voneus and Openreach fibre-to-the-premise customers in my constituency—a situation that has been delivered through an open-market solution, within the area that the open market review had identified as requiring state aid.

A key question for the Government today is whether state aid is even legal in areas where the market has already provided. I am not sure that we should be using taxpayers’ money to subsidise the delivery of a competitor into an area where a commercial company has already set up. TrueSpeed is underwritten by Prudential. How absurd that we would be spending taxpayers’ money to subsidise the delivery of an infrastructure underwritten by one pension scheme while another, Aviva, has underwritten the money on a commercial basis without the need for taxpayers’ intervention. As the market has changed, we need to be very clear about whether we need to go back and look at the open market review again to understand where the market is now providing.

It is certainly the case that my constituency and those of my hon. Friends the Member for Weston-super-Mare (John Penrose) and for North East Somerset (Mr Rees-Mogg), of my right hon. Friend the Member for North Somerset (Dr Fox) and my hon. Friends the Members for Somerton and Frome (David Warburton) and for Bridgwater and West Somerset (Mr Liddell-Grainger) will benefit more quickly because TrueSpeed is working away from the transatlantic fibre link that lands at Weston-super-Mare. TrueSpeed has accessed that link to fibre and is fanning out from there. The delay in the Gigaclear contract is an opportunity for us to look again at whether the market has changed, and whether Gigaclear’s priorities need to be tweaked.

[Rebecca Pow]

My hon. Friend is making a very expansive case. On the point about extra funding and the money going to the different companies, I believe that Connecting Devon and Somerset has just received £5 million from the Rural Development Programme. I wonder whether we might push to see where that money is going to be spent and whether the Minister has any revelations to make about that. I believe it is for phase 2, and some of it is destined to go to Airband, Gigaclear and the various companies providing the different methods of rolling out the service.

[James Heappey]

My hon. Friend is an excellent pacemaker—she runs slightly in front of me. I am coming to that point, but it is very helpful for the Minister to hear such things twice.

There is another part to the point about the change in the market and whether state aid is relevant. There is also the frustration that communities feel when they have got themselves motivated to bring in an alternative provider, such as TrueSpeed, Voneus or Openreach, and when they have fibre to the premise already, and yet their roads are now being closed and dug up with their tax money to deliver something that causes huge inconvenience to them while it is being put in, and which they have already got. A number of communities have written to me not to criticise the delay in the Gigaclear programme but to ask, “Why on earth are you still digging up our roads and blocking off our village when we have already got ourselves sorted and we have got it? Can we not have our tax money spent on improvements to our junction or a new road or something else?”

I know that is not how it works, but it certainly underlines the case for reassessing the priorities that Gigaclear has been set by Connecting Devon and Somerset, so that Gigaclear focuses on areas where we know the market will not be able to provide over the next 24 months, rather than focusing on areas, as is the case at the moment with its early areas, that are in direct competition, particularly with TrueSpeed. I am not sure that that is the most effective spending of Government money.

As my hon. Friend the Member for Taunton Deane (Rebecca Pow) pointed out, we have been given extra money by the Government to look at further broadband improvement in rural areas. There is a real opportunity to take the money that the Government have announced—I know that the Minister will be enthusiastic to remind us of the vast sums of money that the Government have made available to Devon and Somerset—and to add it to the £5 million-plus already available in gainshare from Openreach from phase 1 of the CDS roll-out, and the substantial additional money that is still to come as part of that gainshare, and look at where that combination of funds could be used as an intervention to deliver the final 5%.

We know now, by definition, what the final 5% is, because phase 2 delivers everything but the final 5%, so surely we can deliver that final 5% concurrently rather than waiting until we have connected the 95th percentile to get on with connecting the 96th through 100th percentiles. It seems to me that the money is already available. The gainshare is coming onstream very quickly. We have a real opportunity to get the whole thing cracked in a few years by taking advantage of what the market is now providing.

In some ways, we have an embarrassment of riches, because in some parts of Somerset we now have two entirely independent fibre-to-the-premise networks being dug in on very remote rural lanes, which is a slightly absurd situation. In small communities such as Badgworth, Biddisham and Lympsham, people will soon end up being able to choose which fibre-to-the-premise provider they want to use—not the internet service provider, but actually who is going to put the fibre to their front door. I am not sure that that is actually what taxpayers’ money should be being used for.

Domestic Gas and Electricity (Tariff Cap) Bill

Debate between James Heappey and Rebecca Pow

Wednesday 18th July 2018 Commons Chamber

[James Heappey]

What a joy it is to be in this Chamber when consensus abounds, after a couple of days of tearing strips off one other. It is really rather nice to be in here, all agreeing. That has rather characterised the progress of the Bill throughout its time in this place and in the Bill Committee, on which I had the privilege to serve. I think it is right that we seek to remove the amendment that the Lords have sent back, but I am glad that a compromise has been agreed between the two Front-Bench teams and I think that the amendment in lieu that we have proposed is very sensible.

Since the Bill has been delayed by this extra lap in Parliament, I think it is worth while to rehearse the arguments once again. The price cap is only a part of the challenge, so I want to add a few other things to the exhortation from my hon. Friend the Member for Stirling (Stephen Kerr) about smart meters. The Government must push on with those very urgently, because the savings from them will be far greater than the savings that we will achieve for our constituents from this Bill.

First, on decentralised generation, putting storage in behind the meter and aggregated demand-side response, I know that the Minister is looking at what comes after feed-in tariffs when they start to run out next year. I hope that she can see merit in finding a mechanism to replace them that really unlocks the market for people who want to install generation in their homes or businesses, storage, demand response and the capacity that comes from electric vehicles.

Secondly, I hope that we can send a strong signal to industry and the regulator over the delivery of heat as a service. Heat as a service is a huge opportunity for energy efficiency to become the responsibility of the supplier, not out of obligation, but because it sees an opportunity to make bigger margins by providing energy more cheaply and efficiently. If we can make that happen, we will secure huge savings for consumers. Thirdly, as we replace the green deal, let us allow storage to be a part of this so that again people can find savings. Fourthly, on replacing the ECO, the consultation has been completed and responses have been had, and I know that plenty of tech companies have made representations for smart thermostats and other clean tech to be included within the ECO catalogue. Let us make that the case.

We have put in an awful lot of time, in this place, the other place and in Committee, to deliver a saving to our constituents of around £100. That is not to be sniffed at, but we can prove to an awful lot of people that an enduring price cap is not the answer by getting all sorts of other things right at the same time. Energy efficiency, storage, the flexibility of demand response and decentralised generation have the potential to slash bills to a fraction of what they currently are. Let us not let this price cap distract us from the real prize, which is huge savings for our constituents from clean tech.

[Rebecca Pow]

I welcome the Bill, as it places consumers at its heart. That is really what we are talking about. In particular, I welcome the amendment in lieu, which is a tweak but a valuable tweak that makes the Bill really work. I also reiterate what my hon. Friend the Member for Wells (James Heappey) said. How wonderful it is to have unity in the Chamber after these last few days. It is welcome and a lovely feeling.

Domestic Gas and Electricity (Tariff Cap) Bill

Debate between James Heappey and Rebecca Pow

2nd reading: House of Commons
Tuesday 6th March 2018 Commons Chamber

[James Heappey]

My hon. Friend is indeed right. To resort to my former career as a soldier, I hope that the Government see this as a raid into the energy market, rather than an occupation.

In her opening remarks, the shadow Secretary of State made the important point that an amazing energy future is emerging in the margins of our current broken market, although I disagree with her analysis that the Government are not embracing that, because the clean growth strategy is a passionate embrace of those opportunities. Insurgent companies such as Octopus Energy are relishing bringing the new time-of-use tariffs to the market, giving consumers the benefits of fluctuating wholesale energy prices. Others are looking at how localised generation or aggregated shifts in demand might allow consumers to access cheaper energy or monetise their flexibility. Others still are looking at delivering heat and power as a service, often enabled by clean tech provided by the supplier for free, with the supplier then monetising the customer’s flexibility in order to make their margin. These and countless other innovations are accelerating our decarbonisation, increasing system flexibility—and therefore our energy security—and will mean lower bills for consumers.

We must also create an energy system that allows the full price-reducing power of clean technologies to bring down prices for the consumer. This will require significant regulatory change in order properly to unlock storage, demand-side response and the advantages of generating and consuming energy locally. We must also encourage the deployment of more renewables, no longer because they are the cleanest method of generation, although they still are, but because they are now so obviously the cheapest.

[Rebecca Pow]

My hon. Friend has great knowledge of this subject. Will he comment on the fact that we need to concentrate not only on energy efficiency, but on cutting energy waste, particularly in our domestic systems, because there is a lot of great new technology that could be harnessed?

Wells Bid for UK City of Culture

Debate between James Heappey and Rebecca Pow

Tuesday 25th April 2017 Westminster Hall

[James Heappey]

I very much agree. This is a huge opportunity, not just for Wells but for Western-super-Mare. Visit Somerset has been involved, along with several other local bodies, in supporting the volunteers in putting together the bid. However, we need to discuss the differences in Wells’s bid so that the Minister might satisfy himself that the bid process lends itself as keenly to rural areas as to urban areas. Wells’s bid is not about post-industrial regeneration, which was the centrepiece of the bids by Londonderry and Hull. There is a very different opportunity down in Somerset, which I will talk about later.

Our bid draws on a rich cultural heritage that is way out of proportion with the size of our city. We are England’s smallest city, but our cathedral has a centuries-long tradition in music, as has the now ruined Glastonbury abbey, which still hosts wonderful musical events during the year. We have the Glastonbury festival just down the road. There is Arthurian legend all over, with Avalon and Glastonbury itself, which will be a wonderful theme to draw on throughout the city of culture year. There are now internationally significant art galleries in Bruton. There is an opera festival in Wedmore, there are comedy festivals in Wells, and there are literature, food and film festivals. We have Cedars Hall, a brand new world-class concert hall. We are the location for many movies and TV programmes, and so much more. That all goes alongside a rural, agricultural life and an incredible natural history, but we are also embracing our emerging digital arts industry as we tap into the success of those sectors in Bristol and Bath.

The cultural offer is perhaps more developed and diverse in Wells, the smallest of the bid cities, than in other large cities, but let us be clear: we are much less well funded. The bid document quite understandably requires certain commitments about a bid’s underpinning. Does the Minister believe that that is fair, given that we are trying to build a country that works for everyone? We must recognise that that includes developing the economies of rural areas as well as urban areas. I wonder whether, in the few days he has left—I accept that his civil servants are almost locked down in purdah—he will satisfy himself that, when smaller local authority areas bid for such things, the process perhaps needs to be weighted to recognise that they are unable to underwrite bids in the same way as larger metropolitan areas. Are there other ways of doing it?

The great advantage of volunteers coming together as they have in Wells is that there is private sector engagement, which is encouraging. The Heritage Lottery Fund has been forthcoming in explaining what involvement it may have. If we are aiming to create a country that works for everyone, I hope the Minister will look carefully at the process to ensure that all regions can compete equitably, and that the bid process does not disadvantage rural areas and those where local authorities are unable to resource bids more fully.

[Rebecca Pow (Taunton Deane) (Con)]

I applaud my hon. Friend for bringing this debate to the Chamber. One of the big drivers behind cities of culture is improving economic prosperity. As my hon. Friend says, Wells, with its cathedral, is a glorious location. It was the location for the film “Hot Fuzz”. My dad went to school there, at the Blue School. It is important to recognise that Wells sits in a poor rural environment. The effect of Wells securing city of culture status might reverberate out into the surrounding rural areas, including to my constituency of Taunton Deane and the rest of Somerset, and improve our productivity, which we so badly need to address. As Conservatives, we are addressing it, but we need to do more.

--- Later in debate ---

[James Heappey]

My hon. Friend is exactly right. If someone flew over our constituencies, they would see so many trees and fields that they would think all was well down below. It is so easy to assume that, but there is a hidden deprivation in rural areas that is just as significant a challenge as the challenge in inner-city areas. In fact, dealing with that deprivation is arguably a much greater challenge. Too often in rural areas, rather than deprivation being concentrated in one area and the aim of intervention therefore being clearly defined, families who live in deprivation are on their own. There might be only one family in a hamlet who live in such circumstances, or deprived families might be scattered across a town or a large village, making it much more challenging to intervene in their lives. There is an opportunity for city of culture status to uplift the entire area, so that we can find and engage deprived people who live in isolation—we can do something that could be transformative to their lives.

The Minister will be well aware of several obvious benefits of city of culture status that are common to all bid cities. The most obvious place to start is the visitor economy. Somerset’s visitor economy is already growing—it has grown from £1.2 billion to £1.3 billion in just the last few years. Visit Somerset has been on the front foot in looking at all sorts of ways of marketing our county, with huge success, as have the various tourism expos that have come to the county, several of which I have had the pleasure of hosting. I suspect that the Minister will want to pass back congratulations to Visit Britain, which has brought several international delegations of tour operators to Somerset. I hosted a group of Spanish, Italian, Portuguese and Mexican tour operators in Glastonbury just a month or two ago. It was great that Visit Britain brought them to the area to see what we have to offer.

Despite that, the reality is that Somerset is still too often the drive-through county on the way to the far south-west—that is music to your ears, Mr Streeter, but Somerset has so much more to offer and I am sure you will not begrudge us if we hold up visitors a little longer at our end of the peninsula. So much more could be done in the visitor economy in our part of the south-west, and it would be great to see the city of culture status acting as a catalyst for a growth in visitor numbers. It would also be fantastic to see the city of culture status acting as a catalyst for infrastructure improvement—the railway lines south of Bristol are not planned for electrification, while the line from Reading to Taunton and down to the far south-west is perhaps not being electrified as quickly as we might have hoped. Perhaps a major, internationally significant tourism event, such as city of culture events or something along those lines, might be a reason to accelerate the improvement of those lines.

City of culture status might be a great hook for a number of airlines that have been looking at bringing in daily services from Bristol airport to New York, Doha and Istanbul. Perhaps city of culture status might be the final encouragement they need to commit to those services, which would be great not just for Bristol and the greater Bristol area, but for the whole south-west peninsula. City of culture status could be a catalyst for that, and for road improvements. My hon. Friends the Members for Bath (Ben Howlett) and for North East Somerset (Mr Rees-Mogg) have been doing some great work on improving the route from the M4 down through Bath and into Somerset and west Wiltshire—it would be great to see that succeed. I have been working on getting some improvements to the A39 and the A361 for cars coming in from the M5 at Bridgwater north, in order for them to access Mendip more quickly. What a great thing it would be if city of culture status was to be the catalyst for those road improvements.

The Minister has been doing great work on broadband and mobile phone coverage—they have improved enormously in our part of the world in recent years. Given that there might be some growth in the emerging digital arts industry in the Somerset area, city of culture status might also catalyse that need for digital connectivity and see us accelerate.

[Rebecca Pow]

I wonder if my hon. Friend will give me the pleasure of intervening again, as I am the only other Back Bencher here?

[James Heappey]

I would be delighted.

[Rebecca Pow]

I feel I am speaking up for the rest of Somerset, and perhaps the Minister might listen to this. Productivity in the south-west has historically been below that of the rest of the country—we are at about 7% and the rest of the country is at about 8%. Does my hon. Friend see city of culture status as a great opportunity to address that? The knock-on effect could be enormous. If we had a city of culture in the south-west—that would be unusual because the money is all going north—it could do so much good and have a big impact on productivity.

[James Heappey]

My hon. Friend is an excellent battle buddy to have in today’s pursuit of the Minister. She is entirely right that productivity is potentially one of the big gains, and I will come to it shortly.

City of culture status might help to achieve other things. We are blessed in Somerset with some outstanding schools and colleges, but too often we are training people up and giving them an education with which they think they have no option but to move away to pursue their careers. City of culture status might attract inward investment and create a buzz about living in Somerset. It might come about alongside the introduction of a university of Somerset in my hon. Friend’s constituency, and alongside excellent work on the arts—Strode College in my constituency delivers skills in digital arts and marketing and so on. In some small way, city of culture status might help to rebalance Somerset’s demographics by keeping young people in the county.

If we manage to improve the infrastructure and create a younger workforce with the right skills that are needed by the industries that are there and that are emerging, we will achieve a significant productivity boost, as my hon. Friend suggested. That would be a fantastic legacy for Somerset, not only because it would change Somerset’s stars in terms of the population’s skills and the availability of the workforce, but because the availability of the newly skilled workforce would bring with it inward investment, which would bring new companies. That would be hugely exciting. Perhaps we could see city of culture status as part of the legacy of Hinkley Point, which is already doing something to rebalance our region’s economy.

What if, having brought all of that expertise and know-how to the county, and with follow-on industries coming behind, there was city of culture status helping to reinforce what a wonderful quality of life one can have when living in Somerset? It all seems to work and the timing is right. I hope the Minister agrees that he has a significant opportunity to do something not just for the city of Wells but for the south-west region as a whole.

[Rebecca Pow]

My hon. Friend is giving a catalogue of reasons that make Somerset glow and sound such an attractive place, which it is. We also have the massive wildlife offer in the Somerset levels, which is very close to Wells and which we could build on. Taunton in my constituency is the county town of Somerset, but it could build its links with Wells. We are trying to build our cultural offer. Similarly, we have the international Somerset County Ground. We could build the whole offer in Somerset, focused in Wells, but with spin-offs.

[James Heappey]

My hon. Friend is contributing powerfully on behalf of our county and her constituency. She is entirely right. England’s smallest city cannot do this alone. This offer encompasses Glastonbury, Shepton Mallet, Frome, Cheddar, Wedmore, Street and villages all over the county, but also places slightly further afield such as Taunton, Bath and Bristol. This is a hugely exciting regional opportunity.

The Minister might say: “So what? Every bid says city of culture status will bring more tourism, boost productivity and bring inward investment.” He is not wrong. However, that is where a bid from a small city in a rural setting becomes interesting. The challenge of yesteryear was the regeneration of post-industrial cities. The new challenge for the next decade is how we build more resilient communities that can deal with loneliness, an ageing population and the challenges of mental health, and particularly dementia among that ageing population.

Somerset has those problems acutely and is in the nation’s vanguard when it comes to the ageing population. City of culture status could be seen as an opportunity for the arts to bring communities together and enhance the culture of volunteerism, which already exists in our communities but which could become so much more, and therefore to build networks of people who are looking out for one another. It would be hugely exciting if the arts and city of culture status brings them together in the first place.

I hope the Minister will reflect that there is an economic challenge in the south-west. Although there are not the brownfield sites seen previously in other bid cities, he might reflect that the south-west has lagged behind in inward investment for some time, and that a flagship project of international significance could really drive the local economy. It would be exciting, and therefore ticks all of the boxes of a more conventional bid.

I hope the Minister also sees that one of the Government’s great challenges over the next decade will be tackling loneliness and helping the elderly to live independently in their own homes, so that they do not need adult social care and do not need to be in hospital. City of culture status could be a catalyst for developing that resilience, building that network of volunteers and embracing the huge horsepower that exists within community and voluntary groups. If a celebration of our community, culture and shared history can be used to create a legacy of support and of looking out for one another in a resilient community, that is hugely exciting.

Mr Streeter, you have indulged me and my colleagues from Somerset for long enough. It has been a huge honour to pitch to you and the Minister the value of a bid for Wells to become the UK city of culture. I know the Minister does not make the decision, but I hope that we might be successful in reaching the shortlist in due course, and that he will go away full of enthusiasm for what we have to offer.

Ultra Low Emissions Vehicles

Debate between James Heappey and Rebecca Pow

Wednesday 1st February 2017 Westminster Hall

[James Heappey (Wells) (Con)]

It is a pleasure to serve under your chairmanship, Mrs Moon. I echo the words of my hon. Friend the Member for Taunton Deane (Rebecca Pow) in congratulating my hon. Friend the Member for South West Bedfordshire (Andrew Selous) on securing the debate.

I agree with all that has been said about the need to promote ultra low emissions vehicles. It is clear that we have to do so to meet the carbon targets that we have committed to and because air quality is increasingly featuring in the public conscience. Court cases about air quality may force the Government’s hand more quickly than the requirement to meet our carbon plans.

Our plans to reduce transport emissions by 2020 are already quite challenging. The Energy and Climate Change Committee, on which I previously served, produced a report that looked at how the Government are progressing towards meeting those targets. It was apparent that hitting the targets we set for 2020 will be very difficult indeed. The transition to biofuels will help, of course, but there are real challenges to achieving that transition, given the capability of some of the cars currently on the road. Obviously the quickest way to meet those targets, both for 2020 and beyond, is to adopt ultra low emissions vehicles.

The technology is hugely exciting. When the Select Committee visited California just before we finished compiling our last report, we visited Tesla. Seeing the vehicles there, I came to understand that they are no longer golf carts or milk floats; they are proper cars that will really excite people the world over and will achieve significant saturation, even if the market is left to its own devices. A small plug: I am delighted that Tesla is going to come and speak to the all-party parliamentary group for Globe UK, which I chair, in a few weeks’ time to explain its vision to colleagues in Parliament. Of course, other manufacturers are doing great things, too—it is not just Tesla—but I have seen that factory, and what it is doing really is very impressive.

The argument for such cars is compelling. They are not milk floats. They have all the gadgets and oomph—I think that is the technical term—that cars need to turn the heads of proper petrolheads. They are also amazingly cheap to run. Of course, they now accelerate like proper cars and have all the gadgets inside like proper cars, but it is the fact that they can run for hundreds and hundreds of miles for pence that makes the real difference.

I agree with colleagues that the existence of a second-hand market is important. As my hon. Friend the Member for Taunton Deane rightly said, the Government should focus their attention on really screwing down on the fleets to ensure that they are aggressively encouraged to become ULEV fleets as quickly as possible. Vehicles are invariably in fleet service for only a very short time—a year or two—and it is those vehicles that filter through to the second-hand market most quickly.

The Government need to address three barriers to the roll-out of electric vehicles, which the Minister has heard me talk about previously. First, we need to get the charging network right. The challenge is not the charging network at service stations on motorways and trunk routes, because service stations all over the country now have electric charging points. Nor is it the charging network on driveways at people’s homes, because the Government’s excellent grant scheme ensures that when someone buys an electric vehicle they can install a charging point on their private land. It is residential curbside charging, particularly in areas of high population density. If someone goes out in any direction from here, it will not be long before they find high concentrations of people living with no private parking. Having a curbside charging network—probably buried in the curb stone—would be an extraordinary infrastructure project.

[Rebecca Pow]

My hon. Friend is making a serious point. Is that not where the hubs that I talked about could be useful? We could have hubs in various areas in cities so that people do not need to park and charge on the curbside; they can go to the hub, which they join on a membership basis.

[James Heappey]

I, too, had the pleasure of meeting EV Hub, and its initial model focuses on commercial fleets. The reality is that, if every vehicle has to go via one of those hubs when it leaves its parking spot each morning, the scale of the demand will be unworkable. We have to find a solution to curbside charging for those who do not have off-road parking of their own.

We also need to find a way of incentivising businesses to install electric vehicle charging points in their work car parks. When we visited California, a number of businesses made a great virtue of that and let people charge their cars for free while they were working. It would be worthwhile to find a way of encouraging businesses to do that.

The second barrier is the preparedness of the energy system itself: quite simply, do we have the generation capacity to meet the likely increase in electricity need? Is the energy system—the wires and switches—capable of dealing with the clusters in demand when a lot of EVs are charged in one street or neighbourhood at the same time? Is the system smart enough yet? Has it been digitised so that we can mitigate that clustering in both time and space by load-shifting, so that cars are charged when the energy is available at the cheapest possible point? We risk exacerbating the peak energy price in the evening if we do not have that digitised load-shifting capability in place. If everybody comes home and lazily plugs in their car before they go inside, alongside switching on the kettle, cooking supper and all the other things that go on in homes when people first get home at night, demand will increase massively.

Thirdly, people will need certainty about the future tax regime for how we charge people to drive cars. It is blatantly obvious that Her Majesty’s Treasury is not going to give up the receipts it currently gets for fuel duty without a compensating tax in place, and I suspect that that will be very pricey. If we are really going to encourage people to go for electric vehicles, we need to be very clear—perhaps in a Green Paper alongside the modern transport Bill—about what we are thinking of for an alternative way of raising tax from motoring once people transition and we lose the fuel duty.

We can work through all that, but the Government need to be clear about their role in encouraging the transition. The grants that are in place are doing an excellent job and, as a result, people are being encouraged to look at EVs in particular. The more EVs come down in price and, crucially, the more they increase their range, the more people will see them as a viable option and be incentivised by the grants. The size of the grants will be the indicator of how serious the Government are about facilitating the transition.

My plea, however, is that we do not penalise the drivers of diesel cars. I declare an interest as the driver of a diesel car, who thought I was doing the right thing by buying one, because it produced low emissions and was efficient. We have our diesel cars now and, if we are to be incentivised to transition away from them, the Government need to recognise that we did not do the wrong thing by buying them—quite the contrary, we thought we were doing the right thing.

The transition is happening, the technology is compelling and Government intervention is the throttle in the process. To meet the fourth and fifth carbon budgets, however, we surely require the Government to put their foot down fully on the accelerator.