Electric Vehicles and Bicycles

Julian Knight Excerpts

Wednesday 9th May 2018 Westminster Hall

[Andrew Selous (South West Bedfordshire) (Con)]

I beg to move,

That this House has considered take-up of electric vehicles and bicycles.

I am extremely grateful to Members across the House for their support for what I believe to be a very important debate. This is the third time that I have secured a debate in this Chamber on the take-up of electric vehicles. It is such an important issue for many reasons: electric vehicles will help us to reach our carbon commitments; they are the answer to low-cost, pollution-free motoring for our constituents; and, perhaps above all, it is essential for the United Kingdom to grasp global leadership of this key industry of the future, so that a new and up-and-coming industry’s jobs and investment will be here in the United Kingdom.

In the case of conventional vehicles, the UK is passing £5 billion from sales of conventional vehicles on to foreign economies. Partly because of how supply chains work, a country such as Germany has a significant advantage.

[Julian Knight (Solihull) (Con)]

Picking up on the point about those conventional vehicles, although I share my hon. Friend’s enthusiasm for electric vehicles and know the importance of reaching the 2040 target, we need to bear in mind the 170,000 jobs in car making in this country. In the medium term, clean diesel—which is less polluting than petrol—should be part of the strategy as we go forward.

[Andrew Selous]

If we get this strategy right, there will be more than enough jobs for everyone. I am absolutely with my hon. Friend in wanting enough good-quality jobs.

In 2016 a fifth of all electric vehicles sold in Europe were produced at the Nissan plant in Sunderland. Looking forward, the United Kingdom has a genuine opportunity to capture a significant part of the global market by 2030, which could be worth an estimated £95 billion to the UK economy—lots of jobs for lots of car workers by 2030.

--- Later in debate ---

[Andrew Selous]

With some of the new chargers, an electric vehicle range of 300 miles is entirely possible. At the moment, I agree with my right hon. Friend, but if we play this right it will not be long before he will be able to motor up to East Yorkshire in comfort in an electric vehicle.

Nissan claims that by 2030, widespread adoption of a vehicle-to-grid service could save consumers up to £2.4 billion in reduced electricity costs. I am impressed by some of what the Government have done so far, but the 2040 target is too far out. We need to be bolder. The target for Scotland is 2032; for China, it is 2030; for Germany, it is 2030; for India, it is 2030; for Austria, it is 2030; for the Netherlands, it is 2025; and for Norway, it is 2025. I want the United Kingdom to be a world leader. The Government need to signal their intent to be at the front of the pack and not a best of the rest person coming up the rear.

[Julian Knight]

Bringing forward the 2040 target will destroy the new car market, because no one will spend £50,000 on a Land Rover if they think it will be worth peanuts in five or eight years’ time. That is simple economics. I caution my hon. Friend that it is great to have the ambition, but setting an arbitrary date before 2040 would be a grave mistake.

[Andrew Selous]

I have to very respectfully disagree with my hon. Friend. I bow to no one in my defence of high-quality British jobs. I absolutely accept the anxiety, but we can sustain those conventional jobs. Very soon, there will be so much pent-up demand for electric vehicles that the car workers in his constituency, and that of the hon. Member for Coventry South (Mr Cunningham), will not be able to keep up with the demand for these new energy vehicles—as they are called in China—from our constituents when we reach that 2022 tipping point. It is the obvious thing for our constituents to do.

The transport sector is now the largest source of carbon dioxide in the country. Emissions in the transport sector went up in 2017. If we bring forward the 2040 date, that would address a large part of the gap to which the Committee on Climate Change has drawn our attention.

We need to make huge progress in the fleet sector, and we can do that now. There are about 25,000 central Government fleet vehicles in the UK. The Government say a quarter of those should be electric by 2022—that is a much less ambitious target than India and China have announced for their fleets. Let us go for a 100% Government electric vehicle fleet by 2022, including those run by local councils. We have a long way to go; only two of the Ministry of Justice’s 1,482 vehicles are electric. Let me praise Dundee City Council, which has 83 electric vehicles—the most of any UK local authority. It has also brought in a charging hub for the public and taxis, with four 50 kW and three 32 kW chargers. Well done, Dundee.

There is the serious issue of company car tax. There is a lunatic progression: at the moment, the rate of company car tax for zero-emission vehicles is 9%, which is due to rise to 16% before going down to 2%. Let us get it down to 2%; let us signal our intention, not make it worse for the area that we are trying to encourage.

We should be ambitious on sales targets. Let us go for 15% by 2022, 45% by 2025 and 85% by 2030 and get on with electric charging infrastructure.