Oral Answers to Questions

Jim Shannon Excerpts

Thursday 10th December 2015 Commons Chamber

[Andrew Jones]

I am acutely aware of the limits of my talents, Mr Speaker.

In answer to the hon. Gentleman, the Government are keen to see a settlement to that dispute, and I know that my colleague in the other House, Lord Ahmad, is currently working on that.

[Jim Shannon (Strangford) (DUP)]

Across the United Kingdom of Great Britain and Northern Ireland, there are 60,000 vacancies for HGV and LGV drivers, but many people are unable to take up those opportunities because of the price of training. I know that the Minister has considered that issue, but will he consider the possibility of a loan or grant for the £4,500 that it takes to train an HGV driver?

[Andrew Jones]

I know that the industry is keen to focus on that, and I am keen for more people to take that test. The average pass rate is only 52%, so considering what can be done to increase that will be my top priority. I will consider these matters, but I do not think it will be possible to start subsidising individual licence applications; otherwise, we would have to extend that measure across the piece.

Oral Answers to Questions

Jim Shannon Excerpts

Thursday 29th October 2015 Commons Chamber

[Mr McLoughlin]

I completely agree with my hon. Friend. I have had the opportunity of travelling in one of those taxis. As I said, part of the answer is that we will continue our programme of support for ultra-low emission vehicles. That is very important.

[Jim Shannon (Strangford) (DUP)]

Some 1.2 million cars have been affected across the UK. It is important to be mindful of the innocent drivers, as of course they all are, who are now facing a higher road tax bill and a decreased sale value. Does the Secretary of State agree that the full financial implications of this disgraceful thing that has happened should be placed at the feet of Volkswagen and Audi?

[Mr McLoughlin]

Motorists will not face any increase in taxes—we have made that fairly clear—but this is one of the issues that VW will have to address in due course.

Heathrow: Noise Mitigation

Jim Shannon Excerpts

Monday 19th October 2015 Commons Chamber

[Dr Lee]

Clearly, for the constituencies close to the airport, mitigating noise becomes difficult. The glide approach, with an aircraft using engines less, would be quieter, even in the hon. Lady’s constituency. Some changes can be made. I am realistic enough to know that the constituencies in close proximity to Heathrow will be impacted to some degree, but the impact could be less if we gave some consideration to these suggestions.

[Jim Shannon (Strangford) (DUP)]

Connectivity is very important for the whole of the United Kingdom, not just for Heathrow but for Belfast—Aldergrove—and Londonderry. The importance of having these connections and the benefit to the economy is great. Let me say for the record that my party is fully committed to the expansion of Heathrow. Heathrow has revealed some methods that can go a long way towards addressing the issues of noise for people who live in the area. Perhaps we can hear some of the hon. Gentleman’s ideas on how to reduce the noise in these areas.

[Dr Lee]

As the hon. Gentleman knows, I will be passing through Belfast airport soon, and I shall be able to admire the country that he has the privilege to represent a part of.

As I said, I would like to see a clear definition of the continuous descent approach that would require a greater adherence to the 3° path from 8,000 feet down and not just at 4,000 feet, when NATS at Heathrow takes over. This would raise the height of planes above the constituency. Planes are noisiest when there is a faster level of negative vertical speed. Furthermore, I have concerns about arrivals that have not been stacked or that come out of the Ockham or Biggin stack at 8,000 feet and have to descend to about 4,000 feet for their final approach. If NATS were mandated to take noise mitigation seriously, that would become much less of an issue for residents on the ground.

Another area with scope for improvement is the way in which certain noisy aircraft are dealt with. Has the Department for Transport considered banning such aircraft from taking off and landing between 9.30 pm and 7.30 am? The retrofitting of noise-reducing devices to Airbus A320s is being actively encouraged by Heathrow, but about 20% of A320s operating at Heathrow have yet to have them installed. Will the Department issue guidance on this? One airline operating a few A320s without the retrofit can have a huge noise impact.

With old planes, as they get sold on and have a life of 30 years or more, a ban might be the only way to actually get them retired from service. That is particularly applicable to new, low-cost, long-haul carriers. In addition, aircraft manufacturers could do a great deal more: no manufacturer offers streamlining for its landing gears, for example. Manufacturers could also modify their advice for airlines on operating techniques to reduce noise, including additional use of speed brakes located on the upper side of aircraft, which, if used instead of flaps, would further reduce noise.

I very much hope that the Minister will be able to bring about a resolution to at least some of the problems I have outlined. It is quite easy, as Members can tell, to get bogged down in the detail of the issue, but the best solution most certainly involves a far more robust mandate for NATS or, perhaps, the Civil Aviation Authority.

I have long been a proponent of Heathrow expansion, primarily based on the economic benefits it would bring for my constituency of Bracknell and the Thames valley region, and on its wider implications for the UK’s long-term prosperity. Heathrow expansion offers the best prospects for stimulating the local economy by supporting and creating jobs. An expanded Heathrow would also play an important role in the continued economic success of the Thames valley, ensuring that it retained its position as a hub of innovation, productivity and prosperity.

I am determined, however, that current usage of Heathrow airport, and any future expansion, should not come at the expense of the health and wellbeing of local communities. In particular, when Heathrow is on easterly operations, some residents in the Thames valley can be blighted by aircraft noise for up to 19 hours a day. That has happened a lot recently.

Severn Bridges (Tolls)

Jim Shannon Excerpts

Tuesday 21st July 2015 Westminster Hall

[Jessica Morden]

My hon. Friend is quite right. People in many communities in my constituency, particularly those with low and medium incomes, find it difficult to absorb that cost. Access to jobs in Bristol for which people might like to apply is limited by their having to pay what amounts to an extra tax.

The Welsh Government’s report is clear, and, having spoken to small and larger businesses locally, so am I: the tolls have a big impact.

[Jim Shannon (Strangford) (DUP)]

In Northern Ireland, we do not have any toll roads or bridges—I thank the Lord for that—but that is because of their potential impact. Has the hon. Lady considered the effect of reducing the tolls on tourism, which is an important issue in Northern Ireland, and obviously for the hon. Lady as well?

[Jessica Morden]

I thank the hon. Gentleman for his intervention. Various sectors, particularly transport but also tourism, are impacted by the tolls. Evidence from tourism businesses in the west suggests that the tolls make it more difficult to attract visitors from the south-west of England, for example. The charge also acts as a psychological barrier, as people have to pay to enter Wales.

Oral Answers to Questions

Jim Shannon Excerpts

Thursday 16th July 2015 Commons Chamber

[Mr Goodwill]

We continue to keep all options under review. I know that it has been suggested that Manston airfield may be used to store trucks, although that is 43 miles from Dover. One or two issues that can be addressed more urgently include queue-jumping. Queue-jumpers cause congestion on local roads and they also cause problems when they get to the front of the queue, when there is usually an altercation before they are sent back. We are looking at how we can make Operation Stack work more efficiently, but looking at alternatives too.

[Jim Shannon (Strangford) (DUP)]

Tourists going to France are being inconvenienced by delays. Lorry drivers are accosted by migrants in great numbers. There is clearly a lack of confidence in the cross-channel routes at this moment in time. What can the Minister do to reassure tourists and lorry drivers that they can cross the channel without any bother whatsoever?

[Mr Goodwill]

Obviously, this is a problem on the other side of the channel, of which the French authorities are all too well aware. We anticipate that it will be a continuing problem, but it is of course made worse by the industrial action in Calais. Although Calais is open, it still is not operating at full capacity. DFDS ferries are not able to use the port, and two of the five berths at Calais are occupied by striking workers.

London’s Licensed Taxi Trade

Jim Shannon Excerpts

Wednesday 15th July 2015 Commons Chamber

[Mr Charles Walker (Broxbourne) (Con)]

It is a great honour to have secured this debate. I am also delighted to see you in the Chair, Madam Deputy Speaker, as I know that in your capacity as Member of Parliament for Epping Forest you have done a great deal for the licensed taxi trade, and particularly the black cab licensed taxi trade. Indeed, you and I have worked closely together on this matter over a number of years, and we will continue to do so.

The much-loved London black cab is not an overnight sensation. Hackney coaches first appeared in London during the reign of Queen Elizabeth I, and Captain John Baily, a veteran of Sir Walter Raleigh’s expeditions, is thought to have established the first Hackney rank by the Maypole on the Strand—a site from which four coaches worked. The first laws governing what is now known as the taxi trade were introduced nearly four centuries ago, with London’s cab trade being continuously licensed since 1694. Control is now in the hands of Transport for London. The practice of displaying an identification number goes back to 1654 and despite a number of modifications, the principle of that practice remains consistent to this day—isn’t tradition a wonderful thing?

At the age of 45, James Howe, an experienced cabbie, was chosen to drive London’s first motor taxicab. He enjoyed a long association with both horse-drawn and motor cabs and, in 1933, at the age of 75, he was awarded a special badge commemorating a career that began when he earned his licence in 1884. You and I love the concept of hands across history, Madam Deputy Speaker, and at least two Members of this House were alive at the time that James Howe received his long-service medal. Is that not a wonderful thought?

The fitting of taximeters was made compulsory in 1907 and the inventor of these meters was a German noble called Baron von Thurn und Taxis. A taximeter is by definition what makes a cab a taxicab, and taximeters in London calculate the fare payable as a combination of time and distance. I thought that it would be useful in my opening remarks to set the scene for the House.

Transport for London licenses taxis and their drivers under the Metropolitan Public Carriage Act 1869 and the London Cab Order 1934, so there is not a lot of modernity there. The minicab trade in London is licensed by regulations made under the Private Hire Vehicles (London) Act 1998, which is very recent history. I thank Addison Lee for the useful briefing it provided me on the regulation of its private hire business and those of its competitors.

As we know in this place, all licensed London black cab drivers are required to do the knowledge. We see those amazing men, and now women, beetling around London on their scooters with a clipboard in front of them, learning all these wonderful routes around our wonderful capital city. That is a gruelling three, four or five-year exercise undertaken by aspirant black cab drivers, most of them while holding down a full-time job. They show extreme dedication. It is an extremely gruelling process, with drop-out rates between 70% and 75% on average, and those that pass the test have covered approximately 20,000 miles worth of routes. These men and women are the best of the very best that London has to offer. Having passed the knowledge, a newly qualified driver needs to buy or lease a cab. The cost of new taxis is quite high, often in excess of £42,000, so that is a major investment.

No vehicle over 15 years of age is licensed and the Mayor is keen to see that number reduced to 10 years, as he wants to promote a clean air environment in our capital city. The Mayor has a duty to ensure that he only grants licences to those people who are “fit and proper” to drive a taxi. Drivers are required to be insured and CRB checked and to have a financial standing check. How many of us in this place could cope with the level of scrutiny needed for a financial standing check? My word!

All London taxis—this is very important—are wheelchair accessible and have been required to be so since January 2000. That 100% accessibility compares with only 3% of private hire vehicles. Importantly, licensed black cabs are the only taxi service permitted to pick up passengers without advance booking and the only service permitted to use a meter, with Transport for London setting the level of fares that can be charged. Of course, there are problems. If there were not, we would not be here this evening. This is not a totally good news story.

In its recent review of taxi and private hire vehicle licensing, the Law Commission called for the retention of the two-tier licensing system, and I strongly endorse that.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Gentleman for giving way, and I sought his permission to intervene before the debate. My introduction to the London taxi was when I became a Member. Taxi drivers in London—I am sure that they are the same across the whole United Kingdom of Great Britain and Northern Ireland—have an opinion on all the things that are happening in the world. It is obvious to me from conversations with the London taxi drivers that they are very concerned about the changes to licensing. Does the hon. Gentleman share my concerns on their behalf and agree that a full consultation must take place with the Licensed Taxi Drivers Association to find a way forward that can bring them on board?

[Mr Walker]

The hon. Gentleman makes a precise intervention. The Law Commission also called for significant changes to the legal distinction between taxis and private hire vehicles on the grounds that the current system relies too heavily on an imprecise concept of “plying for hire”, which is not defined in statute and has become the subject of a body of case law that is not wholly consistent. In that lies a multitude of problems.

--- Later in debate ---

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

I congratulate my hon. Friend the Member for Broxbourne (Mr Walker) on securing this debate on London’s licensed taxi trade, which he presented in his usual passionate way. I know that many taxi drivers reside in his constituency, as indeed they do in yours, Madam Deputy Speaker. By the way, before we get any further, may I make it clear that I will be travelling home tonight on two wheels? The only carbon dioxide I will be producing will have come from my own lungs.

Before I respond to the points raised by my hon. Friend, it is perhaps worth taking the opportunity to set out the Government’s position on regulating the taxi and private hire vehicle industry. The Government are responsible for creating the legislative framework within which local licensing authorities license taxis and private hire vehicles. In London, responsibility for licensing rests with Transport for London. It is Transport for London’s responsibility to decide who is a suitable person to hold a taxi or private hire vehicle driver’s licence, or a private hire operator’s licence.

[Jim Shannon]

Just last Thursday, in the middle of the tube strike, I took a taxi from here to Paddington. The taxi driver informed me that on eBay it is possible to purchase a driver’s licence and permit without any regulation. The hon. Member for Broxbourne (Mr Walker) said the same in his speech. Is the Minister aware of this and, if so, what steps can be taken to stop it?

[Mr Goodwill]

That would be illegal. Criminal record checks, and all the other checks that need to be made before somebody can ply their trade as a private hire driver, need to be carried out, so that would certainly be an illegal transaction.

It is the job of Transport for London to ensure that all its licensees comply with the rules and regulations that govern their industry. I understand my hon. Friend’s desire to raise these concerns on the Floor of the House, but as licensing is the responsibility of TfL, while I might be able to address his points, it is within TfL’s remit to act if necessary.

The taxi industry has played a key role in keeping London moving for many years and has a fine heritage. The addition of the private hire sector has helped to ensure that this form of transport is available to all, particularly supporting those who cannot rely on other public transport services. TfL licenses some 22,200 taxis and 66,200 private hire vehicles making 300,000 trips every day. These vehicles make a vital contribution to London’s economy and help to keep the city moving 24 hours a day, seven days a week. The availability of both taxis and private hire vehicles offers the travelling public real choice. They can either instantly hire a taxi on the street or at a taxi rank, or they can pre-book a taxi or private hire vehicle. When pre-booking, passengers can make an informed choice based on factors such as price, availability and quality.

Davies Commission Report

Jim Shannon Excerpts

Wednesday 1st July 2015 Commons Chamber

[Mr McLoughlin]

I am grateful to my hon. Friend. I am quickly looking at page 76, which he drew my attention to. I can assure him that we will go through all these points, but he is absolutely right: a plane stacked over London is neither economic nor good for the environment.

[Jim Shannon (Strangford) (DUP)]

In 2015, Belfast City airport has returned to solid growth across all business sectors. Nine flights leave Belfast City airport for Heathrow every day—the busiest flights from Northern Ireland. Does the Secretary of State agree that ensuring that Belfast City airport remains a vital regional hub will bring extra passengers and create more travel and extra revenue as a key priority?

[Mr McLoughlin]

The hon. Gentleman points out that this is a matter of connectivity from London not just to other parts of the world, but to other parts of the United Kingdom. I accept the importance of Heathrow and those services to and from Belfast.

Alternative Transport Fuels

Jim Shannon Excerpts

Wednesday 17th June 2015 Commons Chamber

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

I am delighted to have secured this Adjournment debate and I hope that I have not misled the House with its title, because today I want to ask about a specific fuel. I want to ask the Department for Transport about its position on the new diesel substitute fuel, aqua methanol, and its potentially vital role in reducing diesel exhaust pollution.

The previous Labour Government’s diesel-friendly policies have led to a serious diesel particulate and nitrogen oxides pollution problem, and there are dreadful health consequences. Ministers will be aware of the recent Supreme Court judgment indicating the urgency of the Government’s acting to alleviate this health problem. That would also mean that the UK could avoid incurring extremely large fines for failing to meet EU air quality standards.

On a day when we have had a very large environmental lobby at the House of Commons, I want to ask the Under-Secretary of State for Transport, my hon. Friend the Member for Harrogate and Knaresborough (Andrew Jones), whom I welcome to his role and to the Front Bench, what he will do to support a fuel that will contribute to reducing emissions and improving our air quality.

In 2001, my constituent Peter Dodd and his company Zero-m drove a senior official from the Department for Transport along Oxford Street in a very special London black cab. That cab was unique because it ran on aqua methanol and emitted virtually no poisonous particulates or nitrogen oxides. In the following six years or so Zero-m, sponsored by the Department for Transport and the Treasury, converted vans and heavy goods vehicles to run on aqua methanol so that those other major sources of diesel pollution could be cleaned up.

The resulting report, delivered in 2009, confirmed without doubt that aqua methanol could have a major impact on diesel pollution, could reduce carbon dioxide, could reduce UK exposure to oil prices and, most importantly in these continuing times of austerity and unlike nearly all other alternative fuels, would require only modest Government financial support during its introductory phase even if oil prices stayed low.

[Jim Shannon (Strangford) (DUP)]

Does the right hon. Lady agree that there are other alternatives, such as electric cars? That is a new way of reducing pollution across the whole community. Does she feel that the Government should emphasise that as well?

[Mrs Gillan]

The hon. Gentleman has pursued that issue, and I hope that the Minister will have taken note. It is important that the Government consider alternative fuels, particularly in the light of the detrimental effect on our environment of the fuels that are currently in use.

The report concluded that aqua methanol should be introduced as soon as possible, so the question is why there are not yet any clean aqua methanol vehicles on our city streets. The answer is that the Europe-wide fuel tax rules are blocking their introduction. They mean that aqua methanol would cost some £1.90 a litre at the pump and, obviously, that is a commercially impossible price.

Fortunately, after thorough investigation and confirmation of the report’s findings under the coalition Government, the Treasury has now agreed to make the tax changes necessary to enable the new fuel to be competitively priced against diesel in the UK by putting it on a level playing field with other gas-based fuels. It announced its intention to do so in the two most recent Budgets and autumn statements and finally included the necessary legislation in the last Finance Bill, just before the recent election. However, the change has still not been enacted, because in the wash-up process the Opposition objected to it despite the fact that the entire green fuel challenge project to demonstrate the need for aqua methanol and prove its worth in exchange for the tax change was initiated and completed during their time in government.

I am now hopeful that the Chancellor will take the measure through on 8 July, so the debate is meant to emphasise the importance to health of enacting this new fuel tax measure immediately. Equally importantly—we have yet to have an undertaking from Government on this—we must integrate the fuel into the DFT’s fuel strategies and funding programmes to accelerate its introduction. The importance of doing that as soon as possible can hardly be overstated.

It is unlikely that many people will have heard of aqua methanol until now, but those with long memories will remember the green fuel challenge, which aimed to foster the development of greener transport fuels. Of the three groups selected for support, the highest award was given to Zero-m Ltd, a company in my constituency. Its proposition was that converting commercial diesel vehicles to aqua methanol offered many advantages, including reducing particulate emissions from diesel engines and lower NOx, which is the diesel exhaust gas responsible for forming smog and acid rain, and which is central to the formation of tropospheric ozone.

Further, the company also discovered that renewable aqua methanol could be made more easily and cost-effectively than most, possibly all, other proposed green transport fuels. In addition, as if that were not enough, it discovered that substituting aqua methanol for diesel would improve UK fuel security and reduce our exposure to politically volatile crude oil prices, because aqua methanol is derived not from crude oil but from the huge and growing global resource of natural gas. Importantly, from the climate change point of view, it can also be made from a wide range of renewable sources, including, rather amazingly, renewable electricity and the carbon dioxide in the air, turning that controversial little climate change bugbear into a jolly good friend.

By introducing methanol made from plentiful natural gas in the short term—so-called brown aqua methanol—we can immediately strengthen the fight against diesel pollution, and at the same time, relatively quickly, win CO₂, fuel security, exports and job benefits. Once brown aqua methanol is established, it can be replaced down the track by chemically identical green renewable methanol once that form becomes economically viable when compared with diesel. Brown natural gas-based methanol paves the way and acts as that solid bridge to near-zero-CO₂ green methanol, without requiring the massive Government subsidies that would be incurred in trying to go directly to the green form without using the brown bridge.

Between them, the members of the Zero-m team have the most amazing experience. Together they have more than a century of expertise in alternative fuels, so these constituents of mine really do know what they are talking about. They particularly understand how oil markets work and the importance of minimising the need for Government subsidies, because oil prices can go down as well as up. When they go down—and history shows that they can stay low for a long time—subsidies that looked fairly short-term and affordable can suddenly look very high and indefinite. In fact, they can become, as they often have in the past, completely unsustainable economically.

With long experience of seeing high-cost alternative fuel projects fail because Governments cancelled the subsidies when oil prices fell, Zero-m’s approach throughout has been to find a way to introduce a fuel that will be commercially viable when oil prices are low. It is interesting to note, anecdotally, that before the second world war it was believed that there was only 12 years’ worth of oil left at the then consumption rate of about 8 million to 10 million barrels a day. Today, the numbers in BP’s June 2015 statistical review show that apparently we have 52 more years of reserves at the 2014 global consumption rate of 92 million barrels a day. Therefore, we are using about 10 times more oil today and it is going to last four times longer than they thought it would last in 1935.

Although it is probably true that oil could run out at some distant point in the future, the oil industry has a habit of finding new deposits and even cheaper means of extracting ever more from them, extending today’s problem with pollution into the future.

Zero-m believes that aqua methanol could be the earliest commercially viable alternative, because it only needs launch support to begin replacing diesel made from oil. Of course, it has to be remembered, but rarely is, that the more that subsidised alternative fuels displace oil, the greater the over-supply of oil will become and the lower the oil price is likely to go. That is the Catch-22 of developing alternative fuels: they look good when the oil prices are high, but if they succeed they will almost inevitably cause oil prices to fall.

Biofuels are one of the key planks of the European Union strategy to reduce emissions, but a 2015 departmental report on options for energy transport policy to 2030 showed that crude oil prices in excess of $250 a barrel are needed before most anticipated renewable biofuels can become commercially viable on a stand-alone basis. Even the Government are expecting bioethanol and biodiesel to need heavy taxpayer subsidy far into the future through the renewable transport fuels obligation.

It is surely worrying that even that Government report accepts that biofuels are not expected to be commercially viable even by 2030, and possibly far beyond. Add to that the fact that including biodiesel in diesel fuel does virtually nothing to reduce particulates and NOx, the key city street-level pollution issue, and that, even worse, including biodiesel in normal fossil diesel actually reduces miles per gallon. It seems to me that aqua methanol is one initiative that can definitely be foreseen to be commercially viable at today’s low oil prices of around $65 a barrel, which is massively below the over $250 a barrel that the Government are expecting biodiesel to cost in 2030, as set out in the report I referred to earlier.

Zero-m has calculated that, in terms of particulates and NOx reduction, converting one diesel van to aqua methanol, at an estimated cost of £5,000, is equivalent to converting five cars to electricity, which costs the Government at least £25,000 in subsidies. Converting one heavy goods vehicle, at an estimated cost of £15,000, would deliver the same diesel fume reductions as converting 30 cars to electricity, at a cost of more than £150,000. If the Government funded, say, £5,000 for each van and £15,000 for each HGV converted to aqua methanol, that investment could save them £20,000 and £135,000 respectively, versus what it would cost via the electric car route, and still achieve the same result.

When it comes to cutting street-level diesel pollution, aqua methanol has the ability to give us a significantly bigger bang for our tax pound than relying mainly on the introduction of electric vehicles—or indeed of hydrogen vehicles, which are likely to be even more expensive, with commercial viability even further into the future. However, despite all that promise, aqua methanol is still not an integral part of the Department for Transport’s published alternative fuels strategies and funding plans, even though all common sense suggests that it should be strongly backed to accelerate and bolster current efforts to tackle the awful diesel pollution problem. Waiting for electric cars or hydrogen buses to fix the problem is being tried, and has been tried for some time, but still the diesel pollution worsens, with consequential health problems compounding the costs to the Government.

Tonight I am asking the Minister to add this potentially powerful new string to the Government’s bow in the urgent battle to improve air quality. The proposed tax change is the culmination of over 14 years of Government-initiated and sponsored work to investigate this exciting new fuel and then enable its introduction. The new tax measure has been approved by all relevant Government Departments, including the Treasury, the relevant legislation has been drafted and all necessary consultations have been completed successfully. There is nothing further that the Treasury needs to do now beyond including the measure in the Finance Bill on 8 July, with an early implementation date.

I have worked alongside my constituents on this journey, and it has been a long and painful one. We are very grateful that the Treasury has now heard the message. Aqua methanol can and should be a major and effective part of the solution to this problem, and it would require no financial support from the Government after the introductory phase.

I am sure that the Government will now enact the promised deferred tax change. Tonight I am asking the Department for Transport to complete the picture and integrate aqua methanol fully into its published strategies and funding policies. Without the tax change, the launch of aqua methanol is economically unviable and will not occur, and all the fine opportunities and valuable benefits will be forgone. However, without the other half of the equation—the Department for Transport—supporting aqua methanol, both financially and with publicity, our city air will continue to be full of dirty diesel particulates and NOx for much longer than it need be. With both those steps in place, Ford, Mercedes, Iveco, Scania and DAF, to name just a few of the most popular van and HGV manufacturers in the UK, could start making and importing clean aqua methanol-capable vehicles into the UK.

I would like to applaud the Minister and the Chancellor of the Exchequer for having the foresight to see that aqua methanol deserves to be put on the same taxation footing as other natural gas-based transport fuels. Now I also urge them to redirect funds from some longer-term, higher-cost initiative, such as hydrogen, just as the Department is already doing for compressed and liquid natural gas. Given the severity of the pollution problem, continuing with the status quo is not an acceptable or justifiable option. By being an early adopter, we can improve our environmental credentials. I hope that the Minister will give a response that encourages my constituents and enables us to kick-start the introduction of aqua methanol, so that we can clean up our air as quickly as possible.

Oral Answers to Questions

Jim Shannon Excerpts

Thursday 11th June 2015 Commons Chamber

[Claire Perry]

I would be delighted to meet my hon. Friend to discuss that further.

[Jim Shannon (Strangford) (DUP)]

Across the whole United Kingdom of Great Britain and Northern Ireland, there have obviously been great advances in improving access for those with sensory disablement—sight and hearing problems. As people travel between the four regions, has the Minister had any discussions with the Minister responsible in Northern Ireland to ensure uniformity in access for those with sensory disablements across the whole United Kingdom?

[Claire Perry]

I have had not had those discussions, because I have only recently picked up that part of my portfolio, but my predecessor might have done. I shall apprise myself of the facts and, if necessary, would be delighted to have that meeting.

Budget Resolutions and Economic Situation

Jim Shannon Excerpts

Wednesday 18th March 2015 Commons Chamber

[Sammy Wilson]

I shall come to that point. I am not suggesting that everything that the Chancellor has done is wrong. What I am trying to do is paint a picture of a country in which not every region and not every individual is walking tall. Not only some regions, but some groups of people, are still suffering and stooped under the burden of an ailing economy. Young people in my constituency are suffering as a result of youth unemployment; other people are in the lower wage brackets, or are in jobs in which there is uncertainty or the effect of the economic downturn has depressed wages the most. Those people are not experiencing the improved living standards that the Chancellor has described today.

I welcome the fact that, as of the last year, 542 fewer people are on the dole or on welfare in my constituency. Nearly every week, however, people come and talk to me about the effects of the recession and the way in which it has changed employment practices, Many are uncertain about their incomes. Some are earning the minimum wage, some have jobs that are insecure, and some are not always paid because of the nature of their contracts. The Chancellor has said today that the minimum wage will be lifted and that some people will be lifted out of taxation; nevertheless, that has to be set against the fact that, for many people, those gains by Government action are depressed by employment practices that are becoming more prevalent in parts of the economy. Banks may be selling shares, but some of that growth and improvement—this is certainly the case in Northern Ireland—is being achieved by banks quickly foreclosing on those to whom they recklessly lent and by suppressing businesses instead of giving them the chance to grow.

Although the economy may be walking tall in the Chancellor’s eyes, there are many obstacles along the road that could cause us yet to stumble. I hope we avoid them, but let us look at some of the information even in the Red Book. Productivity growth is weak, which of course makes it difficult for real living standards to increase—if productivity does not increase, there is not the same chance for wage increases. Exports have not been growing in the way that the Government anticipated; indeed, the fact that the balance of payments deficit is 6% of GDP will have a deflating impact on the economy. Despite what the Chancellor has said, his own figures show that he is still dependent for future growth primarily on consumer spending. In other words, we are still dependent on people taking on the very debt that we have said brought about some of the problems we are now experiencing.

At the same time, growth in investment is weak. Growth in private sector investment is going to go up. That is quite right; however, according to the OBR forecasts, over the period of the next Budget, public sector infrastructure investment will be reduced by 17% as a percentage of GDP. That is one of the problems I have with the current policy. While I understand and, in fact, probably have more sympathy with the arguments put by Government Members—about getting the deficit down and making sure that we do not have huge debt interest, that we have confidence in money markets and that we do not have to pay more for the debt we undertake—there are ways that the Government can stimulate the economy. One way that can be done is through infrastructure investment.

I cannot understand why the money markets are more confident about lending us money to pay for welfare benefits than they are about lending it to pay for infrastructure development. There have been infrastructure developments in my constituency, such as the new road from Carrickfergus to Belfast. The improved travel times have led to investment by companies already in the town, which was isolated because of the difficult roads. The return to the Northern Ireland economy from the Titanic project in Belfast, with £90 million of investment and the return in tourist numbers—nearly 1 million in the first year and a half, with the impact that has on local pubs, hotels, restaurants and so on—has been terrific. At a time when we need to stimulate the economy, I cannot understand why the Government are planning to reduce infrastructure investment, which could produce real returns.

[Jim Shannon (Strangford) (DUP)]

One way of helping, which was announced by the Chancellor today, is the plan for farmers to spread their profits and losses over five years. As my hon. Friend will know, in Northern Ireland the dairy industry in particular is having a difficult time. It had to reinvest because of the EU regulations on slurry retention and disposal and also deal with a clear problem with the price of milk. The Chancellor’s announcement will enable the farming industry at least to balance its books over a five-year period. Does my hon. Friend welcome that as a way forward for the farming industry in Northern Ireland and for those in my constituency and, indeed, his own?

[Sammy Wilson]

I do not want to be churlish about this Budget, because there are a number of things—my hon. Friend has led me on to them—that I welcome. Given the way that farming income changes, it is important that farmers should have the ability to look at their income and spread their profits and losses, and the tax they pay on them, over a five-year period rather than a two-year period. I welcome the announcement of a requirement to have a universal service obligation for broadband, although I see that there is no timing for it, so maybe the Minister can give us some indication of that. I know that in my constituency smaller businesses that want to set up in rural areas are held back because they do not have that easy means of communication.