Transport for the South East
Jesse Norman Excerpts(6 years, 7 months ago)
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The Parliamentary Under-Secretary of State for Transport (Jesse Norman)
May I say what an adornment you are, Sir Henry, to the Chair in Westminster Hall, and may I congratulate my hon. Friend the Member for Bexhill and Battle (Huw Merriman) on securing this debate on the important issue of the sub-national transport body, Transport for the South East? As with everything else, my hon. Friend has been a vigorous, energetic and, if I may say so, effective campaigner. Indeed, as he gently reminded the House, this is the latest stage of his campaign to put this institution on the parliamentary map, and I salute him for that. In his speech he gave an excellent summary of the opportunities and challenges facing the region. This debate is timely given the run-up to the launch of the economic connectivity review for Transport for the South East on 8 May, which I understand will be a key milestone in its work towards developing a transport strategy for the region as a whole.
I will come in due course to the many constituency issues raised, but I will first follow my hon. Friend in placing the emphasis precisely where it should be, which is the regional potential of Transport for the South East—I think that is the original purpose of the debate. My Department and I have been impressed by the pace at which Transport for the South East has worked, despite its young age, and I pay tribute to Councillor Glazier who is sitting in the Public Gallery observing—and, I hope, approving—the proceedings of the work he has done and the leadership he has shown. At not even a year old, TfSE has built, and continues to build, partnerships across the region, and it speaks with an increasingly clear voice to Government about its priorities. I am sure that voice will make a real difference to local people in the south-east, and in due course to the country as a whole, since this is a principal engine of economic growth.
Local areas know their economies best, and the hon. Member for York Central (Rachael Maskell) was right to say—indeed, it is an ancient Tory principle—that power should be devolved and exercised wherever possible close to the people it affects. In part that is for informational reasons, because local councils will know what local priorities are, but those priorities must be balanced with national and regional priorities, and getting that balance right lies at the heart of good transport policy. Local areas will know how best to drive growth for the benefit of their residents, and it does not need saying that transport has a key role to play. As colleagues have said, transport unlocks housing and economic growth; it gets people where they want to go for work, education, or to access and enjoy public services.
Sub-national transport bodies are new organisations that speak with a single voice for their region. Contrary to there being too much centralisation, the hon. Lady seems to have forgotten that this Government have been significantly decentralising. Metro mayoralties are an important aspect of that, as are sub-national transport bodies, which allow us and local people to prioritise the transport interventions that will make the biggest difference to people in their areas and beyond.
STBs, as they are called—no clinic required here, Sir Henry—fill the current gap between local and national transport authorities, bringing a regional voice to Government investment decisions. When local areas come together to plan long-term infrastructure, they can deliver outputs that are greater than the sum of their parts. Using evidence and local knowledge, STBs will make the case to Government for the transport priorities that they believe will drive transformational growth. The Government are hearing those voices across the country, and those bodies—including Transport for the South East—have already submitted to the Department their priorities for the second road investment period. They are also engaging with our proposals for a new major road network that will benefit from dedicated funding from 2020.
On 1 April 2018, Transport for the North became England’s first sub-national transport body, and I was delighted to lay the statutory instrument for that in the House. Three other STBs are currently operating in shadow form across England, with ambitions to become statutory bodies in their own right: Midlands Connect, England’s Economic Heartland and, of course, Transport for the South East. TfSE is the youngest of those shadow bodies, but it has made impressive progress since its inaugural meeting in June last year. There are also proposals for STBs to emerge in other parts of the country, including the east of England and the south-west, and I and my colleagues watch those developments with interest.
We are seeking to work closely with all those bodies to support them as they establish their priorities, develop their own transport strategies, and submit proposals to Government to become statutory bodies. That should ensure they can continue to add value to transport decision making over the longer term, but I should be clear on what we look for in a successful sub-national transport body. We want it to have a strong rationale and a coherent economic geography, and to speak with one voice alongside its local authorities, local enterprise partnerships and, of course, local MPs. Where those things come together, STBs can be very powerful bodies, and my Department will take account of their views in our decision-making processes.
From the toil and woe that some hon. Members have told of in this debate, one might have thought that the south-east was an area in significant economic difficulty, rather than one of the richest parts of this country and indeed of Europe and the world. But, of course, with success come growing pains and strains. It is important to recognise that, and we do. However, as my hon. Friend the Member for Bexhill and Battle has stated, it is important to say that the south-east is a significant contributor to, and driver of, the UK economy as a whole. We will continue to support that process in Government.
It is also worth noting—a point well made by colleagues on both sides of the House—that there is no standardised, one-size-fits-all picture of unbroken economic success across the region. There are clear and important areas of deprivation that exist, especially in coastal communities, and we must attend to those no less than we must feed the flames of economic growth across the region as a whole. To reflect both, we have provided a boost to local economies across the whole south-east, with over £1.4 billion of local growth fund money allocated to local enterprise partnerships in the region to help to encourage economic growth and housing. A substantial portion of that money has been invested in transport projects.
In addition, the Government are investing £2.2 billion in major road schemes on the strategic road network in London and the south-east of England, and investing substantially in rail schemes such as Thameslink and Crossrail, which has been mentioned, and in transformational local schemes such as the £850 million improvement—I do not think we have any hon. Members from Berkshire here—to Reading station. The Department is also investing £1.2 billion to improve local transport through maintenance and small improvements, as well as large local schemes such as the £56 million towards the Combe Valley Way link road between Hastings and Bexhill, which has helped reduce congestion and supported growth in the area.
As my hon. Friend and Opposition Members have pointed out, the sub-region contains a number of ports and airports that are nationally significant, supporting not just the south-east but also London, the midlands and the north. TfSE and its members can play a major role in ensuring that the importance of those international gateways is fully understood and that they continue to support economic growth across the whole country. That role will become more important in the future, when we look to expand trade relationships with the world as we leave the European Union.
I know that TfSE has worked hard to establish itself, working alongside Government to identify investment priorities and to establish a robust evidence base that will feed into its own transport strategy. As I said, it has made a good amount of progress in a short time, and we are pleased to see it learning fast from those that have gone before it. My officials are working hard with its members to help them to sustain that pace. As TfSE develops its economic connectivity review, which will form part of the evidence base for the transport strategy, Department for Transport economists are providing support and advice to ensure it is able to fulfil its objectives and hopes.
Peter Kyle
The Minister’s Department is clearly doing a lot of work on this and is keen to see improvements in the metrics. What metrics will his Department use to judge whether the initiative is successful, and is his Department giving the right support?
Jesse Norman
We are seeking to support the sub-national transport bodies appropriately at each stage of their development. One thing that is misunderstood is that each of those entities is at a different stage of development. The classic example is Transport for London, which is very well established and now self-funding, with its own historical settlement from central Government. That is one thing. Transport for the North is substantially funded, with £10 million a year and a lot of extra money for ticketing and so on, but it is a much younger organisation, albeit we are seeking to build capacity and work with it as it gets bigger.
Jesse Norman
I am afraid the hon. Gentleman may have to sit down for a second and let me answer the previous intervention. Otherwise, he can intervene on his colleague’s intervention and I can try to make a sub-response to a further response.
To finish my point, TfSE is an even younger body, but we are supporting it in a small way and expect to continue to do so as it grows. The hon. Member for Hove raised the question of metrics. What metrics one sets will inevitably be those that are devoted to local needs. Part of the challenge of successful growth is not to have a one-size-fits-all set of metrics but to develop challenging local targets with the STB that meet its goals, and encourage it to meet national goals.
Mr Dhesi
The Minister mentioned Berkshire. I am from Slough, where we have not only the highest number of electric vehicle points in Berkshire, but one of the highest in the country. Will he explain what support the Government can give to our council and its partners as they seek to get more people into electric cars?
Jesse Norman
As the hon. Gentleman will be aware, we make a lot of money available to local councils to support the roll-out of charge points. We have given money historically to support plug-in car grants and home charging. I recently wrote to local authorities to encourage them to take up our offer, which remains open and, I think, not fully expended. He would be welcome to invite Slough Council to write to us, and we would be happy to work with them according to that scheme to make more installations.
My hon. Friend the Member for Bexhill and Battle mentioned funding for TfSE. In all STBs it is important that we are clear that local partners are committed for the longer term, and that there is clarity about what funding is needed and what it would and should be used for. My officials and TfSE have been working closely on those issues, and Ministers will take a decision at the next stage in the near future.
We welcome the ambition the subnational transport body has shown to become a statutory body and are working closely with it to develop that proposal for the Government. That requires groups of local authorities to pledge to come together with a proposal to the Secretary of State, including what functions they think might be best exercised at a more regional level. They may differ from one to another on that. As I have said, where those groups can show a clear mission and purpose—not just economic and geographical strength, but robust governance arrangements—the Secretary of State will be in a position to have a constructive conversation about their ambitions.
Stephen Lloyd
On that important point, the Minister knows I am very interested in the question of the A27 from Lewes to Polegate. He also knows that there is a tremendous partnership between the county council, different MPs, the business community and, I would hope, Transport for the South East in support of the new spur. Can he give any indication of when a decision will be made?
Jesse Norman
I was coming to the specific issues that have been raised. As the hon. Gentleman knows, the current roads investment strategy scheme includes a package of improvements to the existing route. We expect consultation to start in spring 2020, and are providing funding toward a feasibility study for a larger-scale bypass. Those options are being developed as we speak.
If I may press on, there is no one-size-fits-all approach to STBs. The Secretary of State will consider each on its individual merits, and the creation of bespoke arrangements for each STB will reflect the varying local transport and economic growth needs of the area. Creating these organisations permanently by statute is a serious matter and is not to be undertaken lightly. It requires the proper level of local consensus and commitment, but if it is done properly, the payoff is that the entity increases its impact and influence, as well as its longevity, and therefore has the potential to play a role in delivering transformational change.
The shadow Minister raised Operation Stack and the M20. We will recall that the disruption in 2015 was not brought about by any Brexit-related activity but by unions and by other factors. As she will be aware, the Department has asked Highways England to develop and deliver an interim solution to mitigate the worst effects of traffic disruption on the M20 by March 2019. A series of potential options can be used as part of that, and our goal with all of those is to allow non-port traffic to continue to travel in both directions.
One colleague mentioned the extension of Crossrail to Abbey Wood. I can confirm that the route to Abbey Wood is safeguarded, from our point of view, but the focus in the first instance, as one might imagine, must be to deliver Crossrail on time.
One perfectly understands why hon. Members mentioned A27 investment. They should be aware that we expect to make preferred route announcements for the improvements at Worthing and Lancing, and for the bypass at Arundel, by summer 2018.
The hon. Member for Slough (Mr Dhesi) mentioned the Heathrow rail link. He knows that that important proposal will be considered alongside other national priorities through the planning process for the next control period. That will ensure that the rail link provides maximum benefit for passengers, and will allow us to understand the journey opportunities and other possibilities that such a link could provide.
I was asked whether the concerns of Gravesham residents will be reflected in the decision on the lower Thames crossing. I can confirm that Highways England will continue to work with all stakeholders.
It is a little hard, and self-contradictory and inaccurate, for the shadow Minister to accuse the Government of introducing too much centralisation. Let us not forget that, since 2010, the Government have created local enterprise partnerships, metro mayoralties, Transport for the North, Transport for the South East and other sub-national transport bodies. They do represent not centralisation but devolution. It is self-contradictory to say that too much centralisation is going on and that devolution has created a patchwork or mosaic. With devolution comes diversity and difference. Part of the strength of devolution as an idea is precisely that we can take advantage of the best efforts and the best opportunities and examples used locally and the creativity that pushing power down unleashes.
Rachael Maskell
Does the Minister recognise that Transport for the North was absolutely clear that it wanted the electrification of the Transpennine route? The Secretary of State denied that opportunity to TfN. While the Government have created spaces for dialogue, they certainly have not given power, which is what devolution has to be about.
Jesse Norman
The hon. Lady will know that TfN became a statutory body literally weeks ago. These are very early days. There remains a role for national policy making where issues of cost and benefit, passenger satisfaction and the proper spending of public money are in play—that is entirely as it should be. The key point is that TfN exists and is functioning. It is working hard to reflect the interests of the constituencies and the economic priorities of its diverse region, which we massively welcome.
The shadow Minister offers what she calls a completely different approach. Since our approach is long term, strategic and integrated, and involves a significant increase in funding, I wonder which part of long term, strategic, integrated or higher funded her new approach will differ from.
Rachael Maskell
I will again draw on the electrification example and the words of sheer frustration coming from the rail industry at the Government’s stop-start approach to control period 5. The industry has seen only blocks of funding, as opposed to the Government looking at the 30-year planning process needed across the rail network, which Labour will certainly adopt.
Jesse Norman
It is certainly a helpful clarification that the shadow Minister’s comments apply only to rail. I thank her for that.
The shadow Minister raised bus tech. She will know that bus companies are investing significantly in new ticketing technologies. We rightly fund them to the tune of, I think, a couple of billion pounds a year through the bus service operators grant. The proposal she seems to be making amounts to expropriation of the bus companies if a Labour Government are elected. That seems to me to be not only economically unwise but thoroughly contrary to the interests of passengers.
Finally, the shadow Minister raised cycling and walking. I invite Members to raise their hand if they cycled to the House of Commons today.
Jesse Norman
I am delighted. I congratulate the shadow Minister for sharing my commitment to the cycling and walking investment strategy. I assure her that our new cycling and walking review is gathering an enormous number of good ideas about how we can put public money and better regulation, co-ordination and co-operation to better support cycling and walking. She is absolutely right to raise the importance of this issue and the importance of modal shift, and I thoroughly concur. She will know that, as a result of our cycling and walking investment strategy, public funding for those areas has roughly trebled since 2010. That is a record on which I would like us to continue to build.
Jesse Norman
I am sorry but I cannot; I have no time because I need to make way for my beloved colleague, my hon. Friend the Member for Bexhill and Battle. I have taken quite a lot of interventions already, as I am sure the hon. Gentleman knows.
I am absolutely aware of the close involvement of my hon. Friend the Member for Bexhill and Battle with TfSE and am delighted to see the wider acknowledgement that debates like this can bring to the organisation’s good work so far. I wish it good luck in its launch event on 8 May, and I very much encourage it to continue to work closely with the Department on its transport strategy and proposal to Government. I look forward to learning more about the work it is doing and its priorities as it enters this exciting next phase of its development.
Global Road Deaths
Jesse Norman Excerpts(6 years, 7 months ago)
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The Parliamentary Under-Secretary of State for Transport (Jesse Norman)
I am very grateful for those remarks, Mr Hollobone. It is a pleasure to serve under your chairmanship. I am grateful to colleagues from all parts of the House for the thoughtful interventions they have made on this important topic and for how they have managed to compress a lot of thought and passion into a small number of minutes. That is impressive and good to see.
I congratulate the hon. Member for Huddersfield (Mr Sheerman) on securing this debate. As he said, this is a serious global issue. It is a sobering thought indeed to reflect that around the world, 3,500 lives are lost in road crashes every day according to the World Health Organisation. I absolutely recognise his efforts over many years, internationally and at home, to create a positive force for change. I am also pleased to acknowledge that sat behind him is a Mount Rushmore of dignitaries from the global road safety world, including David Ward of the Global New Car Assessment Programme and David Davies of the Parliamentary Advisory Council for Transport Safety. I thank them very much on behalf of the House and the Government for the work they do.
I had the pleasure of presenting to an international field of parliamentarians and others at the Global Network for Road Safety Legislators in December last year. That was a welcome opportunity to share the UK experience with other legislators, to learn from them and to see best practice in the field. As has been said today, by international standards the UK has an excellent road safety record and a long history of success in encouraging safe behaviour and safe road use from all those who travel on them. It is a record that this country should be proud of. It goes back many years under different Administrations. It is interesting to reflect that the number of people killed or seriously injured on Britain’s roads has dropped by 61% since 1990.
The hon. Member for Strangford (Jim Shannon) rightly mentioned that many of these accidents occur from human error. It may be that in a world of connected autonomous vehicles and pods travelling around the world, human error will be minimised, road safety will be improved and accidents will fall, but there are many things that Government, local authorities and business can do and have done to reduce the number of people killed and seriously injured on our roads and roads in other parts of the world.
I am keenly aware of the impact such fatalities can have and the need to protect our most vulnerable road users. I cannot pause without reflecting on the comments made by my hon. Friends the Members for Ayr, Carrick and Cumnock (Bill Grant) and for Stirling (Stephen Kerr) and the hon. Member for Poplar and Limehouse (Jim Fitzpatrick). They drew attention to the important issue of the impact on young people. In my constituency we have a marvellous charity called the ELY Memorial Fund, which is dedicated to supporting those bereaved by road traffic accidents. It was set up after the death of Emma Louise Young by her wonderful parents, Angie and Steven Tyler. They have pioneered a “Dying2Drive” initiative that will match anything that my hon. Friend the Member for Stirling could mention. I have visited it myself. As the sixth formers come out, seeing a smoking ruin of a car with bodies slumped over it and blood everywhere, the colour drains from their faces and they become completely aware in the most graphic way possible of what it could be to have an experience like that. As my hon. Friend rightly said, it is absolutely harrowing.
Just looking at our young adults, the number of those aged between 17 and 24 killed on Britain’s roads has fallen by 25% since 2010 and 77% since 1990. There is therefore much to be proud of but much still to do. The UK has been a key driver in the development of the sustainable development goals. We are in a strong position to make an effective contribution to the UN’s target on road safety, sustainable development goal 3.6, which is to halve the number of global deaths and injuries from road traffic accidents by 2020. We are also pleased to play our part in the development of a common global vision and narrative on sustainable transport through a target to provide by 2030 access to safe, affordable, accessible and sustainable transport systems and special attention to the needs of those in vulnerable situations. The hon. Member for Huddersfield rightly focused on the impact that a death can have in destroying the fabric and the social and economic integrity of a family. That is one reason why that is a development issue as much as it is merely a road safety issue.
I suggest to the House that the Government’s commitment in the area is clear. The road safety statement, “Working Together to Build a Safer Road System”, published on 21 December 2015, set out our priorities for action. We have delivered heavily on those actions. In particular, in March 2017 we doubled the penalty points and increased the fine—to £200—for using a hand-held phone when driving, as part of our continuing efforts to tackle that dangerous and reckless action.
For more than 50 years, we have used a combined approach of tough penalties and rigorous enforcement along with the THINK! advertising campaigns, recognised by Members across the House for their quality and the international respect that they command, to reinforce the social unacceptability of drink-driving, reminding people of the serious ramifications that drinking and driving can have on themselves and others. That has had results: alcohol-related fatalities have reduced from 25% of all road deaths in 1979 to 13% of a much smaller number of reported road deaths two years ago.
On drug-driving, we introduced a specific drug-driving offence in 2015, with specified limits for 17 drugs, including illegal and prescription drugs. In addition, in 2015 we provided £1 million in funding to police forces specifically for better equipment, enforcement and training of officers in drug-recognition and impairment-testing skills. Last year we published research on the effectiveness of the drug-driving legislation introduced in 2015. It found that the legislation had led to additional police activity against drug-drivers, and higher prosecution and conviction rates.
It is important to say that we also recognise the importance of equipping drivers with the right skills, encouraging the uptake of more pre-test practice in driving and a broader range of real-world driving experiences for novice drivers. Following a public consultation last year, therefore, we have announced amended regulations to allow approved driving instructors to provide lessons on motorways to learner drivers in a dual controlled car. Those new rules will come into effect in June this year. Meanwhile, from 4 December 2017 the practical driving test changed to include following directions from a sat-nav and testing different manoeuvres, making it more applicable for modern driving.
A theme of this debate has been that young people are particularly at risk. That is absolutely right. We know that they are disproportionately represented in our casualty figures, and we are undertaking a substantial £2 million research programme to identify the best possible interventions for young and novice drivers. Those measures to be considered include voluntary limits during the first months of driving solo, more pre-test learning and hazard perception learning, the use of telematics to help novice drivers, and a range of educational interventions.
It is also important to recognise that vulnerable road users other than drivers need attention. Motorcyclists account for 19% of all road deaths, despite accounting for only 1% of traffic. They have not been mentioned in this debate, which I know is by accident and because of the short time we have had, but they are a very important source of the killed and seriously injured statistics. We consulted on improvements to motorcycle training and provided our response last year, setting out our long-term intention to provide for change.
In September last year I announced a cycle safety review. In March this year I launched the consultation on the cycling and walking investment strategy safety review, which invited those with an interest in improving safety of cyclists and pedestrians—including vulnerable road users—to provide evidence, whether drawing on experience from this country or other countries, so that we may use that evidence to shape future policy decisions.
Our road safety statement sets out the Government’s vision, values and priorities to improve the safety of our roads, and how we are working towards a reduction in the number of deaths and injuries domestically. However, I recognise that our road safety statement—it is a theme that that has come out today—does not include a national road safety target.
Jim Shannon
No mention has been made of the insurance companies, which have been strategically and purposefully trying to reduce accidents by offering insurance incentives. Perhaps the Minister will comment on that, because some of those insurance companies have brought in systems that really help.
Jesse Norman
As the hon. Gentleman acknowledges, insurance can cut in different directions based on the pooling effects and the way it is segmented, but potentially insurance can be a valuable part of setting a set of incentives, particularly for young drivers, that could improve road safety over time.
I will return to the key topic that has been raised: the lack of a national road safety target. It is true that we do not have one and we do not have road safety targets for local authorities or the police. Our judgment has been that there is a tremendous need, as has been recognised here, for local road safety practitioners, the police and local authorities, to supply and apply their knowledge and skills to local circumstances, but we are wary of a centralised approach to setting targets. That occurs in a political context in which the 2010 Government took over a vast panoply of targets across the whole of Government and sought to create greater empowerment and local accountability by removing many of those targets. It is important to say that local authorities, the police and other bodies remain free to set their own targets, if they find that useful. It is also worth saying that the over-emphasis on targets can itself be counterproductive, because it can cause people to chase the target, rather than the problem.
We understand and remain committed to the international road safety goals, to which we have already committed ourselves, to sharing our experience and expertise with other Governments, and to taking part in many global forums, which have responsibility for making roads safer, including the UN World Forum for Harmonisation of Vehicle Regulations and the Global Forum for Road Traffic Safety, both hosted by the UN Economic Commission for Europe in Geneva. In addition, my colleagues in the Department for International Development are contributing nearly £10 million—not £1 million or £1.5 million—to the Global Road Safety Facility, a multi-donor trust fund operating through the World Bank. That is a scheme to which the Government as a whole are signed up. The programme has been running since 2013 and is due to continue until 2021.
The Global Road Safety Facility generates research and evidence on road safety. Working on these areas directly relates to the focus area of disability through potential reductions in future disabilities incurred through road crashes, as well as all the other economic and social effects that have been highlighted today. That facility has made progress on road safety particularly within the World Bank, and in 2015 all World Bank-funded road programmes included the road safety component as a result of its work. Also, in 2016, road safety was accepted as a theme in the World Bank environmental and social safeguarding framework, so that all programmes approved near a road will need to include an appropriate road safety component.
This research will help to reduce the high numbers of fatalities for road traffic accidents in low and middle income countries. We will be collecting road transport data through a grant between the Department of Health and Social Care and the work of the official development assistance research funding, in order to assess solutions to road safety problems globally. That will help shape policies and regulations to reduce accidents in four partner countries: Vietnam, Bangladesh, Kenya and China. In summary, the Government take an active role in reducing global road deaths and will continue to support and engage in making not just our roads, but all roads around the world, safer.
Oral Answers to Questions
Jesse Norman Excerpts(6 years, 8 months ago)
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Philip Davies (Shipley) (Con)
The Parliamentary Under-Secretary of State for Transport (Jesse Norman)
Top o’ the morning to you, Mr Speaker. The Government have allocated significant resources to west Yorkshire for local transport schemes, including £781 million over 30 years from local growth funding and other sources, but Bradford Council has not yet brought forward that scheme for funding. Our consultation on the major roads network, which could provide another funding route for such schemes, has recently closed. We will respond to the consultation in due course.
Philip Davies
May I place on record my thanks to the Secretary of State for the interest he has shown in developing a Shipley eastern bypass, especially when he visited the area last year? That was in sharp contrast to Bradford Council, which has shown zero interest in developing such a bypass, despite it being much needed by local residents. The council has not even come up with the costs of development that the Secretary of State asked for more than four months ago. Will the Minister not only develop a bypass for Shipley, but bypass Bradford Council so that we can crack on with a scheme that is much needed by the local economy and residents?
Jesse Norman
As my hon. Friend says, this scheme potentially offers relief from congestion, better local access and better connectivity to Leeds-Bradford airport, and we are very interested to see it proceed.
Ruth Cadbury (Brentford and Isleworth) (Lab)
Wera Hobhouse (Bath) (LD)
The Parliamentary Under-Secretary of State for Transport (Jesse Norman)
The UK is building one of the best global ChargePoint networks. Our new £400 million ChargePoint infrastructure investment fund will see thousands more charge points installed nationwide. We already provide grants to install charging stations in workplaces, homes and residential streets, and for buses and taxis. Through the Go Ultra Low city scheme, Bath—the hon. Lady’s constituency—and other cities are installing publicly accessible charging hubs. Also, the new Automated and Electric Vehicles Bill will encourage large fuel retailers to install charge points on their premises.
Wera Hobhouse
In Bath, the council is considering introducing a clean air zone, focusing particularly on older, more polluting vehicles, but that will disproportionately disadvantage the less well-off, who are more likely to own older vehicles. Will the Government consider a scrappage scheme for old vehicles to encourage the uptake of electric vehicles without disadvantaging the less well-off in our city?
Jesse Norman
As the hon. Lady will be aware, substantial scrappage schemes already exist in the market through the private sector, and those look to continue.
Richard Burden (Birmingham, Northfield) (Lab)
Expanding the charging infrastructure is a key part of encouraging people to switch to ultra-low emission vehicles, but does the Minister agree that the Government’s decision to cut the plug-in car grant and the home charging grant sends out contradictory signals? Will he commit to maintaining the current value of both grants in real terms, at least at their existing levels?
Jesse Norman
I am afraid I do not agree with the hon. Gentleman’s diagnosis of the situation. As I saw when I visited Nissan recently, electric cars are being taken up at higher rates than ever before, and the plug-in car grant has been an important part of that. As the industry becomes more mature—we are seeing greater signs of that; the new Nissan Leaf has started to have stable resale values, which is an important sign of maturity—we would naturally expect levels of Government subsidy to fall.
Kerry McCarthy (Bristol East) (Lab)
It is very welcome that the Government are looking at alternative fuels. Will the Minister agree to place in the House of Commons Library a summary of the grants, incentive payments and similar subsidies being paid out by his Department in respect of each of the different alternatives being explored?
Jesse Norman
As the hon. Lady will know, we have recently made a new £11 million investment in hydrogen charging, so she is absolutely right that we take a technology-neutral view and that we seek to encourage different forms of technology wherever available. I will certainly talk to officials about what information we can place in the Library, but I think much of it is already in the public domain.
Carol Monaghan (Glasgow North West) (SNP)
Kevin Foster (Torbay) (Con)
The Parliamentary Under-Secretary of State for Transport (Jesse Norman)
The current driver licensing arrangements take into account the risks that an individual poses to road safety and are designed to be fair and proportionate to all drivers who remain fit and competent to drive, regardless of age. The Driver and Vehicle Licensing Agency keeps all its medical driver licensing policy and processes under review.
Kevin Foster
The Minister will be aware that the current system of car driving licence renewal includes no requirement at all for independent medical evidence to ensure that a driver’s health or eyesight meet the legal requirements. Does he agree that this self-certification process is inadequate and open to abuse, and will he agree to review it?
Jesse Norman
There is no evidence—certainly none that we are aware of or that has been brought to our attention—to suggest that requiring independent medical evidence in relation to a driver’s health or eyesight would lead to an improvement in road safety. The current process is balanced and proportionate, and focuses resources on drivers who need medical investigation. Those drivers—in fact, all drivers—are legally obliged to notify the DVLA if they develop a medical condition that could affect their ability to drive safely. Where a driver has failed to do so, the DVLA will investigate notifications from concerned friends, relatives, the police or medical professionals.
Tom Pursglove (Corby) (Con)
The Parliamentary Under-Secretary of State for Transport (Jesse Norman)
The road investment strategy announced the Government’s intention to develop a scheme to upgrade the A45 between Stanwick and Thrapston to a full dual carriageway. The scheme is at an early stage of development and a preliminary environmental study will be carried out as part of this development work.
Tom Pursglove
This dualling is something that I have campaigned particularly hard for. It has the overwhelming support of local people and would do much to improve the strategically important link between the A14 and the M1. The environmental study is key to progress, so will the Minister join me in pushing for that work to be carried out as soon as possible?
Jesse Norman
My hon. Friend has been a tireless and energetic campaigner on this issue, as on so many others, and I can assure him that the environmental study will be one of the first items to be completed under the options assessment work.
Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)
Eddie Hughes (Walsall North) (Con)
The Parliamentary Under-Secretary of State for Transport (Jesse Norman)
That is a great question. As my hon. Friend will know, the pothole action fund is part of a £6 billion fund we are spending on local highways between 2015 and 2021, including £105 million for highways maintenance in the West Midlands combined authority, which includes Walsall. We ask that highways authorities provide a statement on their websites on how they utilise the pothole action fund money they have been allocated and, of course, we review and assess how that money is spent. We are always looking for, and seeking to incentivise, best practice.
Kerry McCarthy (Bristol East) (Lab)
Jesse Norman
As the hon. Lady will know, we have spent more money than any Government have ever spent in this country on tackling air quality issues. We are working very closely with local authorities, including Bristol, to do that. Something like £400 million is already in prospect to support local authorities in this regard, and we look forward to seeing further action by Bristol and other local authorities to support it.
Theresa Villiers (Chipping Barnet) (Con)
I was alarmed to learn that Govia Thameslink Railway is planning to cut Great Northern services at Oakleigh Park station in the morning peak. GTR has promised me it will restore the services when new rolling stock is introduced this year. Will the Minister work with me to hold it to that promise?
Ian C. Lucas (Wrexham) (Lab)
Jesse Norman
As the hon. Gentleman notes, we are in the process of seeking to apply EU law as it applies to community transport. We have launched a review to explore several specific workarounds that address the concerns that community transport operators may have. We look forward to the completion of that review, and we will be publishing our own thoughts as a result, based on the substantial input we have gathered.
Martin Vickers (Cleethorpes) (Con)
The bioethanol industry and the farming community that supplies it are looking for some certainty about the introduction of E10. Is the Minister able to give a clear steer as to when they can expect that certainty and whether the Government will be giving support?
Jesse Norman
My hon. Friend will be aware that the Government have taken a very important forward position by introducing the renewable transport fuel obligation. We are looking closely at E10, and at international precedents and examples as to how enhanced ethanol fuels have been brought into play. It is important to respect market dynamics, so this is a slightly tricky issue, on which we are spending some time and consideration.
Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)
Karin Smyth (Bristol South) (Lab)
The Hussey family and I are grateful for the Minister’s support following Freddie’s tragic death in 2014, and we will welcome him to Bristol next week for a trailer safety summit. On Tuesday, the other place agreed to improve trailer safety measures; is the Minister willing to share his view of their lordships’ decision?
Jesse Norman
I have greatly enjoyed the chance to work with the hon. Lady on the issues that she describes, and I am very much looking forward to attending her trailer safety summit next week. The Haulage Permits and Trailer Registration Bill will come to this House in due course, so we will then have a chance to look at what their lordships have said.
Lower Emission Lorries
Jesse Norman Excerpts(6 years, 8 months ago)
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The Parliamentary Under-Secretary of State for Transport (Jesse Norman)
The Government are today announcing new measures to change the rates paid by hauliers of less polluting lorries, as part of our plans to improve air quality across the UK. Current rate Euro VI rate from February 2019 Euro 0-V rate from February 2019 Annual Rate (Band G vehicles) £1,000 £900 £1,200
The newest lorries generate 80% less nitrogen oxide (NOx) emissions than older ones. From February next year, lorries that meet the latest Euro VI emissions standards will be eligible for a 10% reduction in the cost of the heavy goods vehicle (HGV) levy. Euro V and older vehicles which do not meet these emissions standards will pay 20% more.
The HGV road user levy, introduced in 2014, was brought in as a first step to ensure lorries pay a charge to cover the greater wear and tear they cause to road surfaces than other vehicles. This change to the levy will incentivise the industry to choose less polluting lorries.
The Government will make the first changes to the levy to implement the reductions for Euro class VI vehicles through a statutory instrument being laid today, with the remaining changes to increase the rates for Euro V and older vehicles expected to be included in the Finance Bill in the autumn.
Levy rates will continue to comply with the relevant maximum levels set under European law, which for Euro 0-V rates will be determined at the time of the Finance Bill.
Note that the following shows the maximum levy rate. Levy rates depend on vehicle weight and number of axles.
[HCWS601]
Motoring Agency Business Plan 2018-19
Jesse Norman Excerpts(6 years, 8 months ago)
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The Parliamentary Under-Secretary of State for Transport (Jesse Norman)
I am pleased to announce the publication of the 2018-19 business plans for the Department for Transport’s Motoring Agencies - the Driver and Vehicle Licensing Agency (DVLA), the Driver and Vehicle Standards Agency (DVSA) and the Vehicle Certification Agency (VCA).
The business plans set out:
the services each agency will deliver and any significant changes they plan to make;
the resources they require; and,
the key performance indicators, by which their performance will be assessed.
These plans allow service users and members of the public to assess how the agencies are performing in operating their key services, managing reforms and the agency finances.
The business plans will be available electronically on www.gov.uk and copies will be placed in the Libraries of both Houses.
[HCWS582]
Greater Manchester Metrolink
Jesse Norman Excerpts(6 years, 9 months ago)
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The Parliamentary Under-Secretary of State for Transport (Jesse Norman)
I do not have an enormous amount of time in which to speak. If I have understood things correctly, I have 12 minutes.
Madam Deputy Speaker (Dame Rosie Winterton)
Order. The Minister has until 7.30.
Jesse Norman
What a joy. In that case, I can extend my speech. I am very glad to hear it.
When I read the name “Jim McMahon” I thought that it was referring not to the hon. Member for Oldham West and Royton (Jim McMahon), but to one of my great heroes, the former quarterback for the Chicago Bears and, latterly, the Green Bay Packers. My sense of excitement on being invited to respond to him and my sense of delight that he was taking an interest in the transport issues of Greater Manchester was absolutely intense. However, my sense of delight is no less great in having this opportunity to respond to the hon. Gentleman, who was himself an award-winning leader of Oldham Borough Council.
If I may say to the hon. Gentleman, he is a little confused about some of the responsibilities involved in his area. For buses, he is very welcome to address himself to Andy Burnham, who has responsibility for buses. Indeed, he has enhanced powers under our new legislation. He has rightly addressed the subject of the Manchester Metrolink system. Everyone in this House who has travelled on the Metrolink—I was travelling on it recently myself—will agree that it has been a colossal success for the conurbation. I absolutely agree with him, and, as a member of the Government, I pay tribute to Councillor Andrew Fender for the work that he has done over the past 41 years. Opinion is divided in Manchester as to whether he should be regarded as Mr Metrolink, or just Mr Transport. Whichever it is, we congratulate him, and the hon. Gentleman’s point was very well made.
As the hon. Gentleman knows, transport is of enormous importance to this Government—absolutely in the north-west and as part of the strategic development of the north as a whole. We very much agree with local partners that transport is essential for growth, which is why we are investing significantly in local and regional transport infrastructure, including £15 billion for the strategic road network and £6 billion for local schemes through the local growth fund. This investment is designed specifically to drive the economic growth that we wish to see, to allow the other opportunities that come from transport including the social and family benefits, and to relieve the economy—at least temporarily—from the effects of congestion.
As the hon. Gentleman knows, we are creating a northern powerhouse to rebalance the economy, and that is a shared aim. The reason for creating Transport for the North as an entity was specifically to provide a local voice that could convene and gather those different projects and schemes—that total regional ambition—into one place that would support economic growth in the north. We will invest £13 billion during this Parliament to connect the region better, so that northern towns and cities can pool their strengths and create not a series of city economies or regional economies separated by geography, but a single powerhouse economy. Of course, Greater Manchester is at the heart of that.
Jim McMahon
I accept all those points. The event that we attended in Manchester with the Northern Powerhouse Minister was very much in the spirit of working together across party political lines in order to get the best outcome for Greater Manchester, but I made a point at that meeting that, when HS2 is in place, it will take the same amount of time to get from Manchester to London as it does to get from Royton to Trafford Park. Those local connections are vital if we want the economy to thrive.
Jesse Norman
Yes, that is an interesting and well-made point. Of course, it is true that every journey begins with a local journey unless one happens to live in the terminus. It is also true that, as with the Metrolink, the secret of HS2 is a capacity story, as much as it is a speed story. As the hon. Gentleman has well said, the capacity of the Metrolink has greatly increased over the last few years, and that is one measure of its great success.
As the House will know, Greater Manchester has seen a revolution in its public transport over the past few years. Through the innovative Greater Manchester transport fund, which combined local funding with significant support from central Government, as well as real support from the local growth fund we have seen the introduction of bus corridors including the Oxford Road bus corridor, which is believed to be the busiest in Europe; the Leigh-Salford guided busway; new bus stations and multimodal transport interchanges across Greater Manchester; and a step change in support for cycling and walking. I pay tribute to the Mayor of Greater Manchester for the work that he has done with Chris Boardman in reimagining the possibilities for walking and cycling across the whole area. It is something that Chris and I have worked closely on and that the Department fully supports.
The Chancellor confirmed in his spring statement last week that a further £243 million from the transforming cities fund is being provided to the Metro Mayor of Greater Manchester to support public transport, improve sustainable travel and boost local productivity. This again demonstrates the Government’s strong commitment not just to Manchester, but to mayoral combined authorities.
Although rail is not my specific brief, it is worth saying that the great north rail project has allowed us to upgrade Manchester Victoria and connect Manchester’s three main railway stations for the first time through the Ordsall Chord project. Over the next few years, the chord will provide new and direct links to Manchester airport from across the region, and will free up capacity at Manchester Piccadilly. We have delivered upgrades and electrification between Liverpool and Manchester, and cut the fastest journey time by 15 minutes since 2015. We have also upgraded the route between Manchester and Wigan, and are currently delivering a comprehensive package of route upgrades and electrification across the north-west and Yorkshire, including between Manchester, Bolton, Preston and Blackpool. Of course, the success of the Metrolink has been at the centre of this development, as the hon. Gentleman rightly acknowledged. This started in 1992 with the opening of the first phase between Bury and Altrincham and has continued through to the current construction of the Trafford Park extension. The first extension, to Eccles in 2000, linked Salford to the city centre.
In 2008, Metrolink embarked on a £1.9 billion investment programme that transformed the network and its service. It tripled in size, providing improved connectivity to jobs, retail and leisure opportunities for communities across the region. New park-and-ride facilities made the network even more accessible and have helped to reduce traffic congestion across the region, while customer facilities have been upgraded and a brand new fleet of trams has been introduced. Extensions were completed to Chorlton in 2011, to East Didsbury, Droylsden and Ashton-under-Lyne in 2013, and, as the hon. Gentleman will be aware, to Oldham and Rochdale by 2014. I congratulate him on his timing in arriving at Oldham Council in time to take credit for many of the successes that were about to occur. That is always a good quality in a politician.
In addition, the Airport line was opened in 2014, winning the civil engineering achievement of the year award at the prestigious national rail awards in 2015. Other improvements have included the short extension to Media Village and, more recently, the Second City Crossing. The latter project is a short but important route designed to alleviate congestion and improve capacity by providing a second route through the city centre. It is already helping to improve the reliability and resilience of the network and allowing it to be operated to its full extent. The most recent development, however, is the construction of the Trafford Park extension, which is currently under way. This has been funded in part as a result of the devolution deal with the Greater Manchester combined authority, which gives the city the greater certainty it needs to invest in this, and other, important local schemes. This scheme, worth £350 million, will link some of Greater Manchester’s busiest visitor destinations as well as running through Trafford Park—Europe’s largest trading estate and home to more than 1,400 businesses employing over 33,000 people. Services are expected to start in 2020.
The result of all this investment and exciting development is that Metrolink is now the largest light rail network in the UK, with 93 stops along 57 miles of track. It is a model of what can be done with steady and sustained investment. It is a public transport network that passengers are using in large numbers, with 37 million passenger journeys in 2017—an increase of 10% on the previous year. That is a massive success overall and a reason why investment continues both from the Government and from the combined authority’s own resources in order to make it happen.
I am aware of the hon. Gentleman’s continued support, which he has made very clear, for further extensions to the Manchester Metrolink system such as the Ashton loop line from Ashton town centre to Oldham, and a spur to Middleton linking up to the Bury line to create an orbital line across the north and east of the conurbation—a “circle line”, as he has described it, at least in potentia. Indeed, he spoke on this topic in his maiden speech on 19 January 2016. The future development of the network is a matter for the Mayor of Greater Manchester, the combined authority, and Transport for Greater Manchester. I understand that the combined authority has a number of ideas about future expansion, including possible routes to Stockport, and a loop around Wythenshawe linking into the proposed HS2 station at Manchester airport, as well as, in the longer term, a possible third link across the city centre.
I congratulate the hon. Gentleman on putting this issue squarely on the public agenda once again. It faces local constituency interests and authorities as much as it faces central Government. For our part, we are currently considering a bid for funding from the large local majors scheme fund for a short extension of the existing Airport line to the expanding Terminal 2, which would ultimately be part of the Wythenshawe loop. We will announce a decision on that fairly soon. I also understand that Transport for Greater Manchester is looking closely at using tram-train technology. The current project to provide this between Sheffield and Rotherham should provide useful lessons on how this type of technology—potentially very useful and highly applicable—could be used elsewhere.
The Government will continue to work with the combined authority as it develops its strategies, and we will continue to consider future bids for funding. Greater Manchester has shown that it is also able to make use of its own resources and those of third parties to develop extensions without direct Government funding. I applaud that, but there is clearly merit in continuing to co-operate and work closely together on these big infrastructure projects.
The Metrolink system is only one of the light rail systems in this country. Our view on this development in transport is very simple: we support it and think it has massive benefits. We have already seen the impact of better integrated transport links for both passengers and the local economy in cities such as Nottingham, Birmingham and, as we have heard today, Manchester. In all three, the light rail system has become an integral part of the transport network. We have supported it because we know that it is part of a strong and resilient economy.
The new £1.7 billion Transforming Cities fund recently announced by the Chancellor will provide funding for more light rail schemes, which will help to drive productivity and growth in cities where it is most needed, connecting communities and making it quicker and easier for people to get around. The new fund will enable more English cities to reap those benefits, helping to deliver the opportunities and ambition of the industrial strategy across the country.
The joy of a light rail system is not merely that it supports an integrated transport network, which reduces congestion, but that it is good for air quality and very environmentally friendly. It is a green form of transport, which makes locations better places to live, not just better places to get to. We have seen evidence that implementing a light rail system helps to stimulate long-term employment growth and attract inward investment, boosting local economies. It can also bring in tourism and give a sense of place and distinction to an area—even one as already distinguished as Oldham.
I have seen examples of the transport system being a key consideration of companies wishing to invest. Few companies these days do not think about transport when deciding where to locate their main offices or even satellite offices. They know that light rail is popular with its users, and that is reflected in the statistics published by the Department for Transport, which show a record number of passengers using light rail. Passenger numbers continue to rise in England, to a record 267 million since records began in 1983. Independent figures also show passenger satisfaction riding high at around 93%, and 90% on the Metrolink.
However, we also have to be realistic and acknowledge that light rail is not necessarily suitable for every place. Each place is different and has its own demands, needs and interests. We feel that there is scope for the sector to look more closely at how light rail can integrate with future forms of transport, such as driverless cars and other forms of mobility, as a service. The Government will continue to work closely with the sector across all of these modes to help bring about the improvements we all want to see in this area.
The Manchester Metrolink has been a great success. It has improved connectivity, access to jobs and retail and leisure opportunities for communities across the region. That has been made possible by the combined commitments of significant local transport investment by central Government and investment made through the combined authority. We are confident that the Metrolink system will continue to play a key role in the future success of Greater Manchester, and I am delighted that this issue has been placed firmly on the public record by the hon. Gentleman.
Question put and agreed to.
Car Insurance
Jesse Norman Excerpts(6 years, 9 months ago)
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
The Parliamentary Under-Secretary of State for Transport (Jesse Norman)
It is a delight to serve under your chairmanship, Mr Davies. I would say I was speechless at the joy, except that I have to make a speech. I thank the hon. Member for Clwyd South (Susan Elan Jones) for opening the debate as she did on the important subject of insuring cars rather than the individuals who drive them. I also thank all hon. Members for their contributions, and I welcome the hon. Member for Reading East (Matt Rodda) to his position on the shadow Front Bench. It will be a delight to address some of his points.
I hope I can assure hon. Members that the Government take the cost of motor insurance seriously and are committed to ensuring that it is reasonable for all motorists. To do that, we have sought to identify the root causes of high insurance premiums and to address them directly, but we have no plans to change the current motor insurance system, as stated in our response to the petition, and there appears to be consensus across all the parties whose Members contributed to the debate that that is the correct position.
I will first outline the system and some of the issues and then come on to all the important questions raised by colleagues from across the House. The UK was one of the first countries in the world to recognise the benefit of compulsory motor insurance, back in 1930. Our long-standing approach has been that it is an individual’s use of a vehicle that has to be insured. The current system of insuring individual drivers, rather than vehicles, does not, as has been noted, prevent named drivers from being added to an insurance policy for shorter or longer periods, which can be a cost-effective way for friends or relatives who share a car to be included on a single policy. For a typical family of four sharing a car, the saving with a named-driver policy rather than each family member having their own policy has been estimated to be more than £1,000. There are also new insurance products coming on to the market that facilitate short-term cover, including insurance by the hour and car-sharing arrangements, without the need to change insurance law. Such products make it easy to arrange cover for someone else using your car. One new car insurance app quotes an average of £10.90 for an hour’s coverage, which can be set up at very short notice, and I am sure we can expect further developments of such pay-as-you-drive solutions in the coming years.
It is important to note, as colleagues have, that it is not at all clear that changing the system would reduce the cost of insurance. In fact, there is every reason to think it could raise it. The complexity involved in changing the system would have significant cost implications, yet would not necessarily produce tangible benefits for the consumer. Some countries opt for a car-based rather than a driver-based system because they have no-fault legal regimes, under which each insurer compensates their own policyholder. So it is a question not just of how people purchase insurance but of the wider civil law principle of liability, which is different in the UK from those other countries. Changing our motor insurance system would almost certainly, therefore, involve complex legal changes and require detailed consultation. A change in the underlying legislation would mean that all insurers would need to redesign the systems they used to offer quotes, which, as the hon. Member for Reading East hinted, would be a complex and lengthy exercise and could have significant cost implications for both the industry and, in due course, consumers. Given the alternative solutions available, such as adding a named driver or adding “drive other car” options to motor insurance policies, such significant reforms would be disproportionate.
The price of insurance currently depends on a range of factors, including many that are driver-specific: driving history, including previous claims and unspent drink-driving convictions; the use made of the vehicle, for example, whether for commuting or business; and years of driving experience. If insurers were required to cover the vehicle and were not able to take such factors into account in their pricing, the cost of insurance would likely rise for those with a good driving record and a history of safe driving and they would end up bearing, on a net basis, the additional costs of drivers who were not as careful or safe. The evidence for that is that insurers already tend to charge much higher premiums for any-driver insurance policies, under which less good drivers can join a named driver. Named-driver policies allow friends or relatives who share a car to be included on a single policy and provide the insurance provider with the necessary information to assess the potential risk of each individual.
Turning, as one or two colleagues have already done, to the scenario used in the petition, I wish to note that it is based on a drink-driving situation. Three friends need to get home from a night out, two of whom, including the driver, are under the influence of alcohol and are unable to drive. The petition suggests that a system that insured the vehicle would enable the third friend to drive the group home. However, as has been mentioned, the risk could be significantly greater than is suggested. As has been noted, the owner’s friend may never have driven the vehicle and may have much less overall driving experience or a significantly worse claims history. In an era where vehicle technology is changing rapidly, the variety between newer and older cars is only getting greater, so the driver’s individual experience of a particular make and model of car will have increased significance.
We have to think about the cost of covering vehicles, not people, as well as the incentive that creates. If that group knows that one of its members—they may be the least experienced driver—will be sober, that could create an incentive that removes the restraint on people’s drinking. There may therefore be collateral unexpected consequences, even within the scenario that was set out. That by no means means that the Government are not determined to seek to reduce the cost of insurance, and it is important to make that clear. We have no plans to change the current system, but that does not mean we are not tackling other key issues known to drive up the cost of premiums, several of which have been discussed today.
One issue that has not been discussed is that of the measures we are taking to tackle the high rate of fraudulent, minor and exaggerated whiplash claims. The scale of the problem is highlighted by the fact that 85% of personal injury claims made in 2016-17 relating to road traffic accidents were labelled as whiplash or soft tissue injuries to the neck and back. I am afraid these data are four or five years old, but that figure compares with 30% in France and Denmark, 31% in Spain, 35% in the Netherlands and 68% in Italy, which is a bit more like us. A large number of claims management companies actively encourage claims after even minor crashes, thereby potentially exacerbating the problem. The magnitude of costs that insurers inherit from whiplash claims are often passed on to consumers through higher insurance premiums, raising the cost overall.
In February 2017, the Government announced a robust package of reforms to crack down on minor, fraudulent and exaggerated whiplash claims. The measures will be introduced in a civil liability Bill in due course. Subject to parliamentary time and consideration, the Government aim to implement the whiplash measures as a package in April 2019. It is estimated that the reforms will bring down the cost of motor insurance by around £35 a policy. Leading insurers, such as Aviva, have publicly committed to passing on savings through lower premiums. Motor insurance operates under something of a cloud, as we recognise, and has often been criticised on competition grounds, as colleagues have noted. In many ways, however, it is an intensely competitive industry, and insurers will have be under pressure to pass on savings or risk being priced out of the market. We as the Government will monitor the industry’s reaction to the reforms and will consider further action if required.
I want to pick up on some of the points that Members have raised, which include some important issues that are collateral to the petition, but are important for us to touch on. The hon. Member for Clwyd South mentioned that she had three key tests for legislation in this area. The first was the effect on costs, the second was the effect on the innocent party and the third was whether it would help or hinder road safety. I hope she will recognise that one of the unintended consequences might be to push up the cost of personal injury claims. The UK is famed for its relatively high level of personal injury claims, which is one reason why it yields whiplash claims. Those claims are one of the things funded by insurance premiums. The downside is higher costs, and we have identified that problem, but the upside is that personal injury claims tend to get paid out at a higher level in this country. We are keen to ensure that the link between driver insurance and driver behaviour is maintained precisely to maintain personal accountability.
The hon. Lady, like the hon. Members for Darlington (Jenny Chapman), for Kilmarnock and Loudoun (Alan Brown) and for Reading East, was absolutely right to note the high cost of young people’s insurance claims and the higher risk that young people face in their motoring. In answer to the question raised by the hon. Member for Reading East, I cannot comment on what the coalition Government did or did not promise about a Green Paper, but I can tell him that these issues are of enormous interest and importance to the Government. We have commissioned a lot of work under our Driver 2020 programme, which is specifically designed to explore different forms of intervention that can bear on young people and improve their driving and therefore their insurability. That includes work on hazard perception, simulated training, education, parental engagement, data recorders, telematics and the rest. That is important.
To respond to the hon. Member for Darlington, we absolutely have not ruled out some form of graduated driver licence. We do not think it is the right policy at the moment, but we are looking at it. As she acknowledged, there are different forms of GDL, and it is important to be specific about the elements that might be brought in. It is not policy, but as she has said, and as the Prime Minister has said, we are considering that for precisely this reason. It falls into a wider desire across Government and certainly on my part to reduce the risk to young drivers, particularly in rural areas.
In my county of Herefordshire, I went to an extraordinary demonstration organised by the local fire service called Dying 2 Drive. It is run in connection with the ELY Memorial Trust, which is a wonderful local charity dedicated to helping prevent road accidents for young people. It is the most petrifying experience. Young people in sixth forms are exposed to a road traffic accident with fatalities right there. The situation in front of them is then solved through an intervention by the fire service and the police. It is a very moving experience. It is very hard to see it and drive without great care and attention thereafter, and the evidence is that it is very effective. I would like to see it rolled out by all kinds of fire services. It underlines the wide range of interventions that can be used to try to help this problem of young people at risk on our roads.
I will pick up a couple of other points that have been made. Adverse consequences are a theme that everyone has rightly touched on. We all recognise that the cost of premiums is higher than we would like, particularly for certain groups in society. We are determined to adopt a series of reforms—I have talked about whiplash and the work being done on young people—to try to reduce the high premiums and their impact on particular groups, but we have to be aware of the law of unintended consequences and the danger that such reforms may inadvertently drive up costs and premiums. Costs may be reallocated to people in a way that undermines the incentives to drive well and drive safely. It would be a disaster if we had those counterintuitive and counteractive results.
I am grateful to all Members who have contributed and to the hon. Member for Clwyd South for introducing the debate.
Alan Brown
I thank the Minister for giving way just as he was finishing. In terms of the costs for young drivers, I mentioned the fact that the extra 12% insurance premium tax is a further hurdle for those drivers to overcome. Could the Government look at reforming that?
Jesse Norman
It is hard to respond to that question, because it is about a tax and is therefore handled by the Treasury, rather than my Department. Also, it is not a tax that falls specifically on young people, but on the industry as a whole. As with any tax, one should consider not only the tax but the things it is intended to pay for and might be paying for, whether that is reducing debt or funding public services. The point I would make to the hon. Gentleman is that over the past few years the Department has pioneered a continuous insurance enforcement system that has significantly reduced the number of uninsured drivers by some 40%. Again, we take the point about the concern, but we specifically want to address the cause of it, which is the number of uninsured drivers. That is the core point of the remark.
To wind up, I am grateful to colleagues across the House and the hon. Member for Clwyd South for introducing this debate. I am grateful to the Petitions Committee for putting it on our docket. We all recognise that the cost of car insurance is an important issue for all motorists. That is why the Government are committed to the things we have discussed tonight: tackling fraudulent whiplash claims, working with the motor insurance market, keeping premiums as low as they can be and addressing the risks and concerns that relate to young people and those in rural areas. I hope on that basis that the House will be satisfied.
Oral Answers to Questions
Jesse Norman Excerpts(6 years, 9 months ago)
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Vernon Coaker (Gedling) (Lab)
The Parliamentary Under-Secretary of State for Transport (Jesse Norman)
We have very ambitious plans to reduce transport emissions, including by ending the sale of new conventional petrol and diesel cars and vans, and by ending the use of diesel-only trains by 2040. Clean growth strategy actions will reduce greenhouse gas emissions, and the UK plan for reducing nitrogen dioxide concentrations sets out action to tackle hotspots of air pollution. We will shortly be launching our new zero-emissions transport paper, and the House can review that, too.
Vernon Coaker
The Minister will know that 24% of all emissions are transport related. He will know there are hotspots across the country, including in my constituency, and thousands of people die prematurely as a result of poor air quality, including 61 people in my Gedling constituency. How does he intend to accelerate the progress and policy development he has outlined to us today?
Jesse Norman
We absolutely recognise the issues that the hon. Gentleman raises. He will know that we work very closely on this issue, through the joint air quality unit, with the Department for Environment, Food and Rural Affairs. Our specific plans on transport emissions will be released in our report later this month.
Andrew Selous (South West Bedfordshire) (Con)
Can the Minister assure the House that, as far as the Department for Transport is concerned, “emissions” refers both to carbon and to air quality emissions, such as nitrogen oxide and small particulate matter, and that they are fully addressed together within the Department?
Jesse Norman
Yes, I can give my hon. Friend that assurance. Of course, DEFRA is the lead agency within Government on emissions. Only on Monday we put the renewable transport fuel obligation on the statute book. The obligation specifically balances the two sides of that equation.
Layla Moran (Oxford West and Abingdon) (LD)
Oxford is proud to call itself a cycling city, yet last week it was identified in the High Court ruling on air pollution as one of the 45 cities that the Government need to do more to help. Will any more money be coming to Oxford to help us make that modal shift?
Jesse Norman
The hon. Lady will be aware that substantial amounts of money have already been put aside to help local authorities that have been affected by air quality problems, and it is up to Oxford to see if it can apply for that money when it becomes available.
Kevin Hollinrake (Thirsk and Malton) (Con)
I drive an electric car, but many people do not. Northern powerhouse rail will take many cars off the road. The all-party parliamentary group on the northern powerhouse is calling for the northern powerhouse rail project to be brought forward to coincide with the completion of High Speed 2 in 2032. Will the Minister support that proposal?
Jesse Norman
I am always grateful for invitations to support proposals. I think I will leave that proposal to the specific Ministers concerned, but my hon. Friend will be aware it is a manifesto commitment.
Ian Mearns (Gateshead) (Lab)
The Parliamentary Under-Secretary of State for Transport (Jesse Norman)
Since becoming road safety Minister, I have met the hon. Gentleman several times, as well as a broad range of road safety organisations and others with an interest in road safety, to discuss many different issues. Those institutions include RoadPeace, the Royal Society for the Prevention of Accidents, the RAC, the AA and many others.
Mr Sheerman
I congratulate the Minister on his keen interest in this subject; I have been impressed by him so far. However, is it not the case that there are still 1,720 knocks on the door by a policeman or a policewoman who says that your daughter, your son, your mum, your dad, your grandmother or your grandfather are dead? That is the truth, so we cannot be complacent. Can we now look to having a national investigatory body to investigate every death on the road? Will the Minister also talk to his overseas development colleagues, given that 1.3 million people worldwide die in road accidents every year? Is it not time that we did something to help them?
Jesse Norman
As the hon. Gentleman will know, we are very closely involved in supporting nations around the world to raise road safety standards; he has been involved in that himself. With regard to a national body, we have looked at that. I am sure that he will take some comfort from the fact that only today we are laying regulations that allow driving instructors to undertake motorway driving with learners. That is part of a much wider pushback to improve driving quality and reduce fatalities.
Lilian Greenwood (Nottingham South) (Lab)
The previous Transport Committee’s June 2016 inquiry into all-lane running concluded that 8% non-compliance with red X signals was unacceptable. In their response, the Government agreed, promising to tackle it through a combination of education and enforcement. In January this year, the chief executive of Highways England wrote to me with an update, stating that
“we have reduced levels of non- compliance with red-x signals to 8%”.
How can it be acceptable for the Government to be continuing to roll out all-lane running when it appears to have made zero progress on reducing these dangerous driving offences?
Jesse Norman
As the hon. Lady will be aware, a study has been done on all-lane running showing that, if anything, it may be safer than the previous arrangements, and that is to be welcomed. We will be making an announcement on red X signals fairly imminently.
Karl Turner (Kingston upon Hull East) (Lab)
Does the Minister not recognise the correlation between his Government’s decision to scrap road safety targets, introduced by Labour, and their failure to reduce the number of those seriously injured or killed on our roads?
Jesse Norman
I am a little reluctant to get into the statistics game with the hon. Gentleman. He will be aware, however, that for the year ending September 2017 road fatalities fell by 4% and overall road injuries fell by 5%, compared with the previous year. The picture is mixed and generally heading in the right direction.
Jessica Morden (Newport East) (Lab)
The Parliamentary Under-Secretary of State for Transport (Jesse Norman)
In December 2015 the Department for Transport published the road safety statement “Working Together to Build a Safer Road System”, and we are making excellent progress in delivering its objectives. I am pleased to announce today that the Department has, at our third attempt, commissioned an objective scientific study to understand the relationship between tyre degradation, the passage of time and the effect on tyre safety. Two earlier attempts to commission that research were unavailing. The guidance given has been very effective in this area, but that marks a further move towards better road safety.
Jessica Morden
My constituents Julian and Gill Smith, who tragically lost their daughter Rhiannon nearly a year ago in a car collision, are now campaigning for better preventive action. I agree with my hon. Friend the Member for Huddersfield (Mr Sheerman) and ask that the Minister looks seriously at calls by campaign groups such as Brake to establish a UK road collision investigation branch, so that we can have more crash data and evidence to prevent deaths and injuries on our roads.
Jesse Norman
As the hon. Lady says, that is a tragic incident for the family concerned, and one’s heart goes out to them. As I said to the hon. Member for Huddersfield, we continue to look closely at the possibility of setting up such a national body.
Alex Chalk (Cheltenham) (Con)
In the last 15 years, there have been 340 casualties on the notorious A417 near the Air Balloon pub. There have been 148 accidents in the last five years alone. Will my hon. Friend join me in warmly welcoming the landmark of reaching the consultation stage on the shortlisted new roads scheme? Does he agree that, by backing that project, this Government are committed to saving lives on Gloucestershire’s roads?
Jesse Norman
Of course I welcome that. As my hon. Friend will be aware, it has been the product of a great deal of hard work by local campaigners and the Department over a considerable period.
Jim Shannon (Strangford) (DUP)
Would the Minister consider reducing the drink-drive limit? The reduction in Northern Ireland and Scotland has led to fewer deaths and injuries on the road and less work for the police. It is surely the most obvious thing to do.
Jesse Norman
We continue to keep the situation under review. As the hon. Gentleman will be aware, there have been moves in that direction in Scotland. As that policy works its way through, we will continue to look closely at the issue.
Daniel Kawczynski (Shrewsbury and Atcham) (Con)
The Parliamentary Under-Secretary of State for Transport (Jesse Norman)
The Department published its latest statistics on road conditions in England in January 2018, which show that local classified roads are improving, with fewer local roads to be considered for maintenance. There is still much to do, which is why the Government have committed record levels of investment, including more than £6 billion to highways maintenance up to 2020-21, as well as having an action fund to combat potholes totalling £296 million in this Parliament, which colleagues across the House will warmly welcome.
Daniel Kawczynski
I thank my hon. Friend for that answer. He will be aware that Shropshire Council has submitted a very effective business case, supported by our local enterprise partnership, for the funding of the north-west relief road in Shrewsbury, which is the final bit of the circular around our town. What steps is he taking to ensure that the scheme is looked upon favourably?
Jesse Norman
I am absolutely aware of that. My hon. Friend has been a tireless campaigner for that road over the years. I reassure him that we recognise the concern that he indicates. The Department has received the funding bid for the Shrewsbury north-west relief road, and it is being actively and currently considered.
Chris Bryant (Rhondda) (Lab)
The Government are intending to close the driving test centre in Pontypridd and move it to Llantrisant, which will make it far more inconvenient for people in the Rhondda—one of the poorest constituencies in the land—and probably more difficult for people cost-effectively to learn how to drive safely. It will also put the driving test centre in a place that does not have suitable roads for people to do the test properly. Will the Minister look again at closing the Pontypridd driving test centre?
Mr Speaker
He did do it nicely. We congratulate the hon. Gentleman on his ingenuity.
Jesse Norman
One wonders if style is everything in these matters or whether content should have a place at some point. The answer to that question is that of course we will continue to look at it, but I doubt the answer will change.
Nigel Mills (Amber Valley) (Con)
The Parliamentary Under-Secretary of State for Transport (Jesse Norman)
In the 2016-17 financial year, the Department spent almost £3.5 million on supporting the community transport sector through the bus services operators’ grant, and since January 2013 it has devolved approximately £2.9 million of that grant to support local councils’ community transport services. As my hon. Friend will be aware, the Department is currently consulting on changes to the law and guidance on the use of section 19 and section 22 permits. The consultation closes on 4 May.
Nigel Mills
The Minister will know that the changes on which he is consulting pose a real threat to the future of some operators. What more can he do to protect the existing use of permits rather than require what are generally small local charities to move to the full commercial status of the operator licence?
Jesse Norman
As colleagues will know, I have spent a lot of time working with the bodies responsible for the sector and visiting local community transport organisations. I take my hat off to them for the astonishing work that they do, which is, in a way, a form of social care as much as a form of transport, if not more so. Our consultation document, which I am sure my hon. Friend will have read, lays out three potential exemptions: derogations from commercial operators in favour of community transport operators, showing that there is in fact no competition in specific cases; a potential distance exemption of 15 miles from a particular hub; and the separation of commercial and non-commercial activities. We expect them to receive a lot of comments. I am not aware of a direct threat to any operators in particular, but we very much seek their feedback.
Mr Speaker
Notwithstanding what the Minister said about the hat—he talked about taking his hat off—I would not have thought he would want to do so in the present weather, as a protective function.
Nick Smith (Blaenau Gwent) (Lab)
Many community transport operators use diesel vehicles, so what representations have the UK Government made to the German Government to hold Volkswagen to account for its emissions scandal?
Jesse Norman
It is the Rhondda valley by proxy. We continue to press the German Government hard on the issue and regard the behaviour of Volkswagen as unacceptable. We are greatly improving the emissions regime, toughening up the testing regime and taking active steps to penalise the use of defeat devices.
Sir Patrick McLoughlin (Derbyshire Dales) (Con)
Dr Rupa Huq (Ealing Central and Acton) (Lab)
The Parliamentary Under-Secretary of State for Transport (Jesse Norman)
As the hon. Lady is aware, the matter is currently out to consultation, although it does not cover the certificate of professional competence, which will be handled separately. As I have indicated, there are many workarounds for this issue, and there is no reason for any community transport company to be adversely worried. There is a misalignment between EU law and UK law, and there may be some players who, unfortunately, are operating in a commercial way. That is how the matter rests, and we will do everything we can to protect community transport operators that are doing a good job.
Iain Stewart (Milton Keynes South) (Con)
Liz McInnes (Heywood and Middleton) (Lab)
The Parliamentary Under-Secretary of State for Transport (Jesse Norman)
I am grateful for the question. We will be making an announcement later in spring.
Jeremy Quin (Horsham) (Con)
Andrew Selous (South West Bedfordshire) (Con)
Jesse Norman
The answer to that question is a great deal, with more to come. I was very pleased to be able to go to the meeting of the all-party group on air pollution, of which my hon. Friend is a member, with Chris Boardman. That is an excellent example of how an individual initiative in Manchester can be used to drive great change. The cycle safety review is coming up shortly and will look at a very wide range of issues relating to cycling, including recent information on some of the impacts on air quality. As he says, cycling is remarkably good for the body and soul of the people who do it.
Justin Madders (Ellesmere Port and Neston) (Lab)
Rachel Maclean (Redditch) (Con)
During the recent appalling weather, Worcestershire County Council has been sharing information about where the nearest grit bin can be found, and getting the gritters out on the road. Will the Secretary of State join me in praising them for helping residents to prepare for the recent appalling conditions?
Jesse Norman
I absolutely praise them, and I am delighted that we have ample stocks on hand to deal with the current inconveniences. I put my hat squarely back on my head to deal with that on a personal level. Not least of the joys of this particular scheme and approach is that they open the way to Herefordshire, a place that I know the House will wish to visit on regular occasions.
Ian C. Lucas (Wrexham) (Lab)
The Secretary of State will be aware that no money was spent in control period 5 on supporting enhancements to the rail infrastructure in north Wales. Having seen the unanimity in north Wales and in north-west England on Monday this week, does he not accept that our time has come for cross-border rail investment?
Peter Aldous (Waveney) (Con)
BACT—Beccles and Bungay area community transport—plays a key strategic role in north Suffolk in serving remote rural areas and many vulnerable people. Will the Minister assure me that in assessing the feedback from his current consultation, his No. 1 objective will be to put the future of organisations such as BACT on a sustainable, long-term financial footing?
Jesse Norman
I can absolutely assure him that the Department’s goal has always been to manage this process with as little impact as possible and ultimately to the benefit of the community transport sector, if we possibly can.
Karin Smyth (Bristol South) (Lab)
The Minister and his predecessor have been supportive of my trailer safety campaign and #towsafe4freddie, following Freddie Hussey’s tragic death in 2014. Does he agree with me that the Haulage Permits and Trailer Registration Bill, which is currently going through the Lords, offers a fantastic opportunity to further highlight the importance of trailer safety?
Jesse Norman
I absolutely recognise the campaign that the hon. Lady fought, and I think it is very worthwhile. I slightly doubt whether what she suggests is in fact the case, but attempts can of course be made within the rules. This is a very narrowly defined piece of legislation that focuses very specifically on permitting and on trailer registration, so there may not be scope to add other things, but I continue to be delighted to talk to her about the campaign that she is waging.
Robert Courts (Witney) (Con)
From the need for a final fix to the A40 to urgent upgrades to the Cotswold line, the need for a boost to west Oxfordshire’s transport is now acute. Will Ministers agree to work with me to make it happen?
Alex Burghart (Brentwood and Ongar) (Con)
Will the Minister please look into the concerns that a flyover and tunnel at Stonehenge will damage the valuable archaeological site at Blick Mead?
Jesse Norman
My hon. Friend will be interested to know that I sent a message of welcome to the team from the International Council on Monuments and Sites that is currently considering the issue of Stonehenge. Of course we will look into my hon. Friend’s concerns, and he is welcome to write to me with further details.
Nic Dakin (Scunthorpe) (Lab)
When will the Government catch up with the rest of the world and take advantage of a quick, easy, cost-effective way of reducing transport emissions by introducing E10 fuel?
Jesse Norman
We are reviewing that option at the moment. As the hon. Gentleman will know, it would require legislation, but we are already giving considerable support to the ethanol industry, and we are continuing to look into it.
Several hon. Members rose—
Draft Renewable Transport Fuels and Greenhouse Gas Emissions Regulations 2018
Jesse Norman Excerpts(6 years, 9 months ago)
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The Parliamentary Under-Secretary of State for Transport (Jesse Norman)
I beg to move,
That the Committee has considered the draft Renewable Transport Fuels and Greenhouse Gas Emissions Regulations 2018.
It is a delight to serve under your chairmanship, Ms McDonagh. The regulations contain important changes to two existing schemes that place requirements on suppliers of fuels. The schemes are provided for by the Renewable Transport Fuel Obligations Order 2007 and the Motor Fuel (Road Vehicle and Mobile Machinery) Greenhouse Gas Emissions Reporting Regulations 2012. Those require suppliers to reduce greenhouse gas emissions from fuels supplied in relation to transport, including through the supply of biofuels, and to report those reductions accurately.
The proposals before us today are the result of extensive consultation and input from industry, fuel experts and environmental organisations. In 2015 my Department and the low-carbon vehicle partnership’s transport energy taskforce, comprising more than 50 organisations, reported on how the UK might meet its EU 2020 greenhouse gas emissions reduction and renewable transport fuel targets. The taskforce’s report also considered how low-carbon fuels could help to reduce greenhouse gas emissions from UK transport in the period to 2030 and beyond. That work informed public consultations on the proposed amendments.
In September 2017 the Government set out a 15-year strategy for renewable transport fuels, including biofuels. I want to pay particular tribute to my colleague, my right hon. Friend the Member for South Holland and The Deepings, who I hope will make a barnstorming intervention from the Back Benches, for his contribution as the Minister responsible for that work. The strategy will support investment to develop sustainable advanced fuels for the automotive, aviation and road freight sectors. It also aligns with UK carbon budget commitments. The regulations are the product of that strategy and are crucial to its implementation, and would also align UK schemes with the requirement in EU legislation.
It may be helpful if I provide an overview of the regulatory framework that we propose to amend. Under the RTFO order, suppliers of fossil fuels have an obligation to ensure that a percentage of their fuel supply comes from renewable sources. The obligation is currently equivalent to 4.75% of the volume of fossil fuel that is supplied for use in road transport and non-road mobile machinery. There are built-in protections for smaller suppliers, in that the obligation applies only to volumes above a 450,000-litre threshold, and there is a deduction for the first 10 million litres of relevant fuel.
Suppliers of biofuel meeting the sustainability criteria are rewarded with certificates. Those renewable transport fuel certificates can be traded on the open market. Biofuels made from wastes and residues are awarded twice the number of RTFCs given to biofuels from crops. Under the RTFO scheme, motorists are protected from exceptional spikes in the cost of supplying biofuel through a mechanism that enables suppliers to pay a buy-out rather than having to acquire certificates. That effectively caps the cost of the obligation.
The greenhouse gas reporting regulations currently require designated fuel suppliers to report the amount and type of fuel that they supply, and its greenhouse gas intensity. The regulations operate in parallel with the RTFO scheme. As a consequence, information reported by suppliers under the RTFO order is for the most part sufficient to discharge a supplier’s obligation to report.
Since the RTFO was introduced in 2008, the greenhouse gas emissions savings of the renewable fuels supplied have improved year on year. Last year the average greenhouse gas saving of a litre of renewable fuel was 71% compared with petrol and diesel. That is in no small part due to the approach that the Government have taken to encourage the supply of renewable fuels from wastes and residues. The most recent statistics show that 66% of biofuels supplied in the UK were made from a waste or residue, and so they did not compete for land with food crops.
The draft regulations before us would build on that success. They would amend the RTFO order to increase the targets for renewable fuels to 9.75% of fuel supplied in 2020, with further incremental increases to 12.4% by 2032, providing long-term policy stability to industry and investors. They would also set sub-targets, starting in 2019, for the supply of renewable fuels classified as “development fuels”. That would increase incentives to supply new types of advanced fuels that are of strategic future importance to the UK. In line with that strategy, the draft regulations make certain renewable aviation fuels, renewable fuels from non-biological feedstocks, and renewable hydrogen eligible for reward under the RTFO order. They mitigate the risk that biofuels supplied will not deliver reductions in greenhouse gas emissions by placing a limit on the contribution that biofuels produced from food crops can make to meeting targets to supply renewable fuels. That limit is set at 4% in 2018, 3% in 2026, and 2% in 2032. Finally, they ensure that wastes that would be disposed of are eligible for greater incentives than those with other productive uses.
The draft regulations propose extensive changes to greenhouse gas reporting regulations in order to create a new GHG credit trading scheme. The new scheme will be familiar to suppliers as it copies many aspects of the RTFO scheme. The two schemes will be administered jointly, and the Department is aligning much of the reporting required so as to minimise burdens on suppliers.
The new GHG credit trading scheme will replicate the protections afforded under the RTFO scheme, both to smaller suppliers through equivalent deductions in obligation, and to motorists through a buy-out mechanism. Key features of the new GHG credit trader scheme include a greenhouse gas emissions reduction obligation on suppliers of fuel and energy for use in road transport and non-road mobile machinery, and suppliers will be required to reduce the overall greenhouse gas emissions of the fuel they supply, compared with 2010 levels. They must achieve a 4% reduction in 2019, and a 6% reduction in 2020. The scheme also provides incentives to suppliers by rewarding GHG credits for the supply of renewable and fossil fuels that have lower greenhouse gas emissions than ordinary petrol and diesel, for electricity use and electric road vehicles, and for reductions in upstream emissions from the extraction of crude oils. The GHG trading scheme aligns with the strategic objectives of the RTFO by offering rewards for the supply of renewable fuels used in aviation.
The Department has taken on board consultation responses in modifying the targets proposed in the regulations, which have been extensively reviewed and discussed. In particular, it has addressed concerns that it should set longer-term, more ambitious targets by proposing that the RTFO will reach 12.4% in 2032. The Department has also adjusted proposals to limit the contribution that biofuels made from crops will make towards the targets. That limit is also referred to as the “crop cap”. Rather than set a 2% cap from the outset as per the consultation, the regulations propose to set that cap at 4% in 2018, and reduce it gradually from 2021 onwards to 3% in 2026, and 2% in 2032—I am beginning to get a sense of what the Chancellor has to put up with on Budget day, when he or she has to read out these numbers.
It is the Department’s intention that that will provide the sector with flexibility to meet the 2020 obligations, while providing a clear signal for future investments in the biofuel industry as we make the transition to more sustainable renewable fuels. The Secondary Legislation Scrutiny Committee has noted that Vivergo Fuels made a representation on these regulations. Vivergo supports the increase in the RTFO, but it is concerned that demand for its ethanol may be constrained by the crop cap, and that there may be further constraints if the Government do not mandate the move to E10 fuel.
Let me address those concerns. The crop cap is designed to mitigate the risk that biofuels that cause indirect land use change will be supplied in the UK. Due to those concerns, the Department is focusing further growth in that sector on the most sustainable fuels made from waste that do not compete with land use for fuel. We therefore propose a cap that balances the risk to land use with the needs of the ethanol industry. In the UK, the RTFO scheme has been successful in promoting waste-derived biofuels. We have therefore been able to propose a cap that is below the maximum 7% level, and below that in many states where higher proportions of crops are currently used. To put those numbers into perspective, total UK bioethanol production capacity is equal to a little over 1% of transport energy, and the current proportion of crops used in biofuels is less than 2% of UK fuel supply—significantly lower than the 4% cap proposed for 2020. The changes proposed in the regulations do not reduce the size of the market for bioethanol made from crops—indeed, they continue support for it.
Secondly, the draft regulations will increase the level of obligation under the RTFO order, which drives a market for all renewable fuels, including bioethanol. That will increase potential demand for E10 among obligated suppliers.
The draft regulations do not mandate E10, in the sense of requiring that 10% bioethanol must be blended in petrol. Instead, they allow fuel suppliers to determine how best to meet their obligations. Moving to E10 fuel could make achieving our renewable energy targets easier and provide an economic boost to domestic producers of bioethanol and UK farmers in the supply chain. The Department therefore remains committed to working with industry to ensure that any future introduction of E10 is managed carefully, and that E5 remains available for vehicles that are not compatible with E10.
To round up, the draft regulations will begin the implementation of the ambitious strategy for renewable fuels that the Government set out last September. That strategy seeks to accelerate the delivery of sustainable alternative fuels for aviation and other sectors that are hard to decarbonise, thus enabling the UK to lead in developing and deploying those fuels. The draft regulations also take into account the wider economic importance of existing UK biofuel production and seek to maintain that market. I therefore commend them to the Committee.
Jesse Norman
I am grateful to the shadow Minister and my right hon. Friend the Member for South Holland and The Deepings for their useful, important and valuable contributions. I will respond to them in turn.
The shadow Minister raises the questions of whether we lack ambition, whether the target should be increased and whether there should be regular reviews of the cap on crop usage and the like. Let me say a variety of things. There is always a balance involved in legislation of this type, as he will absolutely appreciate. There is a risk to land use and there is a desire to stimulate the use of biofuels from all possible sources. Of course, an attempt is made to take that balance in the right way.
As he will know, this has been the product of—and is reflected in the delay he describes—considerable months of consultation in reaching the draft regulations and the balance that they strike. As he will be aware, the draft regulations have changed, as regards the crop cap; it has gone from being 2% to, as my right hon. Friend said, a stepped process, from 4% to 3% to 2% over time. I have had assurances, as I think has the industry, that given the level of utilisation at the moment, the draft regulations will not act as any kind of constraint on the growth of biofuels well into the next decade. Of course, they are being regularly reviewed, and we can look at that in further detail if such a constraint applies.
On the introduction of E10, I absolutely understand that it is a live and important issue, and my officials continue to work closely with the industry, as the shadow Minister will know. The taskforce did not recommend a mandate. There are conflicting views on these issues, as he will appreciate. It is important that we do not fetter suppliers even further, having done so a little bit in order to support the industry as we have done through the fuel obligation. One lesson from looking at international experience is that it is not merely, in some cases, an argument that there may be value from a mandate, but that the clear projection of information is important. We continue to look closely at that. It would require legislation, which raises a further question about how that consultation would take place and when legislation could be introduced. For all those reasons, we are not minded at the moment to move further in the direction that the shadow Minister described, but it is a matter for continued consultation and discussion.
With regards to the comments of my beloved colleague, my right hon. Friend the Member for South Holland and The Deepings, he is absolutely right to focus on the people who work most closely with those fuels and who are most directly affected by them. He rightly mentioned the step change that he engineered in the crop cap and pointed to the need for continued co-ordination across Departments. I hope he agrees that that has significantly improved in recent years. Whether on air quality, clean growth, connected and autonomous vehicles or ultra low emission vehicles, we continue to work closely with the Department for Environment, Food and Rural Affairs, the Department for Business, Energy and Industrial Strategy and the Ministry of Housing, Communities and Local Government.
Mr Hayes
I certainly acknowledge that—our work on air quality is evidence of it—but I am not yet convinced that we have waste right. I am not sure that across national and local government, in co-operation between local authorities or in collaborations between Departments, we are yet far enough advanced to ensure that waste policy ties to what the Minister has very sensibly set out today.
Jesse Norman
I take my right hon. Friend’s point, which has landed well with my officials. It is a two-dimensional problem: there is the question of whether Departments are co-operating and the question of how they interact with local authorities. I thank him for that. My officials have taken it on board and we will actively pursue it.
These regulations begin the implementation of a 15-year strategy for renewable transport fuels, which is designed to support investment in sustainable advanced fuels for automotive, aviation, road freight and other sectors; to maximise the industrial opportunities to be gained for the UK; to maintain public confidence in the value of renewable fuels; to provide certainty to UK producers and to the farms that supply them that their existing installed plant capacity for biofuels from crops will be fully utilised; and to continue to support the transformation of wastes into fuel where that gives the greatest economic and environmental benefits. That is no small challenge.
So far, UK suppliers have responded to the challenge by supplying renewable fuels that have increasingly higher greenhouse gas reduction benefits and are sustainable. My Department is confident that suppliers will also respond to the opportunities presented by these regulations.
We recognise that policy in this area is not without controversy and that the gestation period for these regulations has been long, as the shadow Minister mentioned. The proposed changes are not a surprise to industry—how could they be after such a period of time?—and there is broad agreement about the direction that these regulations will set, which emerged from extensive consultation. The debate has been very useful and I thank hon. Members for their contributions.
Question put and agreed to.
A5 Upgrade
Jesse Norman Excerpts(6 years, 10 months ago)
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The Parliamentary Under-Secretary of State for Transport (Jesse Norman)
It is a delight, possibly an honour, to serve under your chairmanship, Mr McCabe. I start by thanking my hon. Friend the Member for Bosworth (David Tredinnick) for this useful, important and timely debate, which ties into a wider pattern of effective and successful lobbying from Members and colleagues from the same area.
My hon. Friend will know that this is an important area not merely for its road transport connections but for its history. He referenced the battle of Watling Street in AD 60-61, tragically not referring to my hon. Friend the Member for Clacton (Giles Watling), at the opposite end of whose constituency one would hope the road would ultimately end, but referring to the great Roman victory. Of course, the day after celebrating the suffragettes and the suffragists, I note the tragedy of our greatest suffragette, Boudicca, suffering her untimely defeat at such a moment. I thank him for the historical reference.
In order to respond to the comments from the hon. Member for York Central (Rachael Maskell) about RIS 1, I will start by laying out the Government’s overall approach. The debate has been interesting in the way that it has blended national and regional concerns relating to the road investment strategy’s second phase and the question whether this project should be a candidate for an expressway, with specifically local concerns, such as Mancetter island and so on, which Highways England might be invited to consider as part of its local responsibilities. It is important to keep those two balanced.
As hon. Members will know, in recent years, the Government have taken a much more long-term, phased and planned approach to investment in the strategic road network, including our motorways and main A roads. That has been a very important development over the last five to seven years. We do so for a specific reason, which is that when there is more longevity in the system and greater visibility of funding in the overall envelopes, there can be better planning, costs can be driven down in relative terms and productivity can be improved; overall, there should be greater certainty of delivery.
Alberto Costa
I thank the Minister for outlining the reasonable position of the Government in taking a long-term view when it comes to financing, but my South Leicestershire constituency has one of the largest logistics parks in Europe, Magna Park, and there is a proposal to double its size. That is not a long-term proposal—it is an immediate one. Given the problems we have expressed about congestion, noise, air pollution and so on, would the Minister look sympathetically at how the Government’s policy can be linked with the infrastructure proposals outlined by my hon. Friends and others from my constituency?
Jesse Norman
I am rather regretting giving way to my hon. Friend, because his intervention was of such a length and repeats information he already put on the record through his speech. I have very little time to make a quite a lot of points that I know he and other colleagues will want to respond to. Needless to say, of course the Government are sensitive to great and fast-breaking developments. We have schemes, including the large local major transport scheme, that are designed precisely to assist local government to petition where there are important local developments that can require new infrastructure on shorter term notice.
Highways England is making good progress according to the investment strategy launched in 2015, which brought with it a very large increase in funding for the strategic road network—more than £15 billion in the five years between 2015 and 2020. Highways England has already delivered something like 18 schemes that are open for traffic. Work on the £1.5 billion A14 Cambridge to Huntingdon scheme is advancing well.
My hon. Friend the Member for Nuneaton (Mr Jones) mentioned the interaction between the M6 junction work and the work at Dodworth. He is of course right about that. What it shows—I use this to respond to the hon. Member for York Central—is that work has got to be phased, and sometimes the acceptance of bids is not consistent with the intelligent structuring of investment. As a result, Highways England routinely and quite properly slightly overprogrammes the amount of investment it is making, knowing that some of those schemes will not hit the correct benefit-cost ratios, some local authorities in some cases will not have their bids and other work ready on time, and there will be local opposition in some cases that may delay a scheme. Therefore, it is important to understand that some balancing out will be required, and that is what has happened in RIS 1. There has been some delay for all of those reasons. That does not, unfortunately, mean that the money that has not been spent can be redeployed, because it is overprogramming within an overall envelope that has been used for purposes of investment.
This represents significant progress, but we recognise that there is more to do, and it is in that context that it is important to think about the second phase of the road investment strategy, which has been highlighted by colleagues today, and the Government’s investment in the strategic road network between 2020 and 2025. It will be funded by the new national roads fund, an important development that is designed to assist planning, remove the potential for disruption and ensure that all money spent by taxpayers on vehicle excise duty in England will be reinvested back into the roads network. There will be a much closer link between the money people pay and the investment that is made, which will allow us and Highways England to take a co-ordinated, long-term approach to investment in the network.
It is vital that the strategy’s potential is realised, and that we use RIS 2 to unlock wide-ranging benefits for the whole nation. The RIS 2 system deploys and relies on proper input from local authorities, and we are very pleased with the work that has been done by those who have submitted bids and expressed interest in RIS 2 schemes across the country. That crucial feedback will help us to make and Highways England to implement the right investment decisions for our strategic roads.
I thank my hon. Friends the Members for South Leicestershire (Alberto Costa), for North Warwickshire (Craig Tracey), for Nuneaton, for Rugby (Mark Pawsey), and for Bosworth for their co-ordinated approach to considering this road, which is entirely appropriate for a regional bid. I also thank them for the letter they jointly signed supporting the proposed upgrade between the M42 and the M1 near Rugby. I note that the scheme is backed by 18 local authorities and has been endorsed by the Midlands Connect strategy.
It is important to understand that Highways England is taking careful note of the bid—I want to put that on the record clearly. We are grateful for that. Highways England has proposed the conversion of the country’s busiest A roads to what it calls an expressway standard. It has provided evidence to suggest that that could provide users of those roads with improved performance and safety benefits, and a motorway-standard experience. As hon. Members know, the Department is consulting on the proposals, and the consultation closes, as luck would have it, today, having been open for two months—again, serendipity for my hon. Friend’s debate.
I assure colleagues that the case Highways England made for investment in the A5 has been recorded as a formal response to the consultation, and I have noted it in this debate. The Department will publish its response to the consultation in the spring. Officials—those present and those in the Department—will have been noting all the advice given today, which will be taken into account as part of the consultation.
The hon. Member for York Central was right to raise a quizzical eyebrow about the £10 million that my hon. Friend the Member for Bosworth said would be the total cost of the scheme. If I understand it right, that £10 million will be required for the next phase of work into a study of the options. We are not quite in the world of Linda Evangelista, but £10 million does not go far when we are building roads. The research phase concludes after the Department’s response to the public consultation, after which decisions will be made about the content of RIS 2.
My hon. Friend the Member for Nuneaton rightly identified the importance of avoiding accidents and pollution wherever possible, and of getting the full benefit from investments. I share that view. The reason for treating this as a route is so that a holistic view can be taken across all those issues—
Steve McCabe (in the Chair)
I am very sorry, but the clock has beaten you on this occasion.