Draft Goods Vehicles (Licensing of Operators) (Amendment) Regulations 2022

Debate between Lord Spellar and Gill Furniss

Monday 28th February 2022 General Committees

[Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)]

I look forward to serving under your chairpersonship, Ms McVey.

I hope the Minister will answer a few questions. I would like to pick up on the last few words she uttered. Frankly, in my time in this place I have never known an SI to be suddenly found to be technically legally correct. I wonder if the Minister could explain exactly what technically legally correct is when, clearly, the SI is not correct in any shape or form. We will be going against the Public Passenger Vehicle Act 1981. In the letter that the Minister sent out about the disruption, it seems that it may affect around one case a week. How will it affect that one case a week? The Minister indicated that she wished to see the updated SI completed before this SI comes into being, but, I have to say, with the devastation of the new highway code that was introduced and the fact that nothing was done to warn people until after it had become law, I do not have much confidence that this SI will go through as quickly as we would like. If it does not go through as quickly as the Minister has indicated, what exactly will happen to those who are going to be affected, and what compensation can people access to mitigate this complete mistake by the Government? I am happy for the Minister to address that at the end.

I want to pay tribute to HGV and LGV drivers nationwide. They ensure that our supermarket shelves remain stocked and that vital medicines reach our pharmacies. During the coronavirus pandemic, they have been unsung heroes and deserve our deepest thanks. Goods drivers have been working under considerable pressure of late due to significant problems in the supply chain. Delays in transporting goods in and out of the UK meant that the intricate timescales to which they work were disrupted anyway. The problem has not been helped by the fact that we have a shortage of more than 85,000 HGV drivers in the UK. The Government have failed to address both the short and long-term factors behind this shortage. That has caused immense destruction and been a hammer blow to our economy.

I have significant concerns about the impact of the proposed legislation on operators of light goods vehicles. Under the EU-UK TCA, the Government are obliged to implement these new rules to mirror the new EU regulations. It is for that reason that the Opposition will not oppose this SI. However, the Government must ensure that it is implemented in a way that is fair and that does not place extra regulatory burdens on businesses and disrupt our economy even further.

I must also highlight the sheer length of this statutory instrument. It contains 135 regulations. In all my time in Parliament, I have never come across a statutory instrument that even comes close to that size. I understand the powers Ministers have given themselves under the EU withdrawal Acts to bring forward these changes, but I am concerned that these regulations are not being given the proper parliamentary scrutiny they require.

Turning to the content of the regulations, I am concerned that the Government are downplaying the impact they will have on business. In the explanatory memorandum accompanying this SI, the Government state that these requirements should

“not impose any particular burden on business.”

However, it is difficult to work out how exactly they have reached that conclusion. In the Government’s own consultation, 17 respondents objected to the changes on the grounds that they would increase regulatory burdens, while 18 were in favour. Some 12 organisations even said that it was likely that they would have to cease or reduce operations due to these regulations. That represents over 10% of total responses. Why then have the Government failed to complete a full impact assessment? Why have they blindly concluded that these regulations will not be a burden on businesses? What is the purpose of running a public consultation if the Government ignore the outcome?

For operators coming into scope for the first time, these new regulations will have a significant impact on their finances. They will cost them £658 each over the first five years and then £401 each for the subsequent five years. Firms operating LGVs are already working on razor-thin profit margins, and without the necessary Government support, they risk collapse. I urge the Minister to consider extra support to ease the transition, beyond the lacklustre support in this SI.

More widely, efforts must be galvanised to bring more people into the logistics sector. Long-term structural problems cannot be swept under the rug any longer. The workforce of drivers is ageing rapidly, with just 1% of HGV drivers under the age of 25. New regulations like these and the extra costs they bring risk alienating people from the industry even further.

The Government must improve working conditions in the sector. That includes investing in new, better-quality facilities for drivers so that they can rest, eat and sleep with dignity.

[John Spellar (Warley) (Lab)]

Is there not also a problem that when younger drivers have qualified, the insurance premiums when they start work, before they have two or three years’ experience, are huge? Should there not, therefore, be a Government scheme to encourage people in to spread that load and encourage more young people into what should, essentially, be a younger person’s industry, but very much has an older workforce?

[Gill Furniss]

I absolutely agree with everything that my right hon. Friend said. If we are to get on the right path to our economy growing, we must do everything possible to encourage new people into the industry—and new start-up businesses, too. As I said earlier, it is just another example of a barrier put in the way of achieving what we would like. The extra £32.5 million announced to upgrade driver facilities is, of course, welcome, but it is just a drop in the ocean for fixing the problem.

Another area that the Government must get right, if these regulations are to be successful, is publicity. It is right that the new licences will be available to apply for from tomorrow, but three months is a tight timescale for operators to become compliant. I therefore ask the Minister what steps she is taking to contact operators and firms impacted by the changes to ensure that they know exactly what they need to do. That also includes the earlier issues referred to by the Minister, which I have asked for answers on.

Unfortunately, raising awareness of important changes has not been a priority for the Minister’s Department; when significant changes to the highway code were implemented earlier in the year, it waited until over two weeks after they were in force to launch a publicity campaign. The same mistakes cannot be repeated as these new rules come into force.

I will finish by once again paying tribute to HGV drivers, LGV drivers and everyone else in the logistics sector. Their work is vital but, all too often, they are under-appreciated. As operators adjust to the new regulations, the Government must work with the sector and trade unions to provide the tools they need to make the transition as smooth as possible. That is essential for the longevity of the sector, all the jobs it supports, and our wider economy.