HGV Road User Levy Bill

Jim Shannon Excerpts

Tuesday 20th November 2012 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

As the Member for Strangford in Northern Ireland, I know the importance of a viable freight industry that can deliver all the products we have. The UK freight industry has supported the principles in the Bill for the past few years, and there is a consensus in favour of the Bill. Members on both sides of the House are of that opinion, and the freight industry is telling us the same thing as well. The industry is vital to Northern Ireland and my constituency in particular. Some hon. Members, their families and their constituents will enjoy the vegetables and potatoes that come from my constituency, because 70% of our food is exported to the rest of the United Kingdom. So when Members sit down to the humble Comber spud on Sundays, quite possibly it has come from my constituency. It is important, therefore, to have a viable freight industry.

I have a couple of quick questions. The Bill makes it explicit that the vehicle excise duty will be the means by which the rebate will be made. Can the Minister give us the precise reductions in the duty that could bring that about? I rather think that they will not be known until the Budget statement of 2014, when they will be included in the Finance Bill. The levy is to be introduced for UK operators from May 2014, but the process must be operational in time for the vehicle excise duty renewals. Will he assure us of that time scale? It is vital for the industry.

Figures released by the Department indicate that about 6,500 vehicles fall into bands for which vehicle excise duty rates are already too low to offset the cost of the levy. I understand that half of these vehicles—about 3,250—are 28-tonne 2x2 articulated vehicles. Will the Minister indicate, either today or later, the breakdown of operators using vehicles requiring a higher net charge than at present? In particular, where do they operate from? Are they one-man bands or small companies that need a bit of help? It would help if consideration could be given to that. It is unclear whether the 2% of vehicles identified in the money resolution debate as facing significant extra charges as a result of the change are to be found largely in a particular sector or sub-class of vehicle.

It is important that the Minister considers another matter. Businesses need to plan ahead and have some indication of what the costs will be for the future. That is particularly important, as down-plating might not be possible for some operations.

I would like to focus on one final point touched on by the hon. Member for Folkestone and Hythe (Damian Collins). I would like the Minister to clarify a few points for Northern Ireland Members in particular—given that we have a land border—about how this will affect us. How will the charging work in Northern Ireland across the land border with the Republic of Ireland? I ask because I understand that the Irish Government have already begun discussions with Ministers about the amount of cross-border trade. If that is the case, could Irish vehicles be regarded as a special case? It would be useful for Northern Ireland MPs and the House as a whole to know whether the UK Government are minded to permit this exemption. Finally, how will holders of reduced pollution certificates be compensated through replacement grants?

We are moving to a better place with this Bill. We have a chance to do something that is important for the freight industry in the area I represent and the many companies that depend on it. It is also important for the produce that is moved from Northern Ireland to the rest of the United Kingdom and the Republic. The Bill will have an important impact on those industries. I want to see the Bill go through and the benefits that come from it. I understand that I will not be on the Committee, but others will, and I will keep a watchful eye on it.