Vehicle Excise Duty: Carbon Dioxide Emissions
Debate between Lord Ashton of Hyde and Lord Brabazon of Tara
Lord Brabazon of Tara
To ask Her Majesty’s Government whether they plan to change the basis on which Vehicle Excise Duty rates for new cars are calculated by carbon dioxide emissions alone.
Lord Ashton of Hyde (Con)
My Lords, the Chancellor keeps all fiscal instruments under review. Any changes are announced at the appropriate time.
Lord Brabazon of Tara (Con)
I congratulate my noble friend on that Answer. The Budget will be with us shortly, but will the Chancellor bear in mind that the present system strongly favours diesel cars, whereas we now know that nitrogen oxide emissions are far more harmful than CO2 emissions? Will the Government consider moving to a system that takes emissions of both gases into the equation? While they are about it, will the Government look at the testing regime? At present, this is a laboratory-based system, which bears little relationship to what one actually gets out on the road.
Lord Ashton of Hyde
My Lords, the Government do not explicitly promote diesel cars. The current tax system, introduced in 2001, covers the purchase of cars with low CO2 emissions, regardless of whether they are petrol or diesel. I hope I can be a little more helpful on my noble friend’s question about testing. I am pleased to report that work has been going on for some time, at European and international level, to provide better testing. Although they will still be laboratory tests—so that they can be replicated around the world—a more accurate database will be included, which will more accurately simulate actual driving conditions.
RBS
Debate between Lord Ashton of Hyde and Lord Brabazon of Tara
Lord Ashton of Hyde
My noble friend is exactly right. He talked about fines on banks. It is very important, as he mentioned, that the Governor of the Bank of England spoke in his Mansion House speech of increasing penalties from seven to 10 years so that individuals know that they cannot play with the balance sheets of their banks and get away with it, and the penalties as such rest on the shareholders. I completely agree with him. Personally—no, “personally” is irrelevant. The Government think that, despite the fact that we increased regulation, made it more efficient and increased criminal penalties, the most important thing is the culture and ethics of the bank. That is from the top of the bank downwards. If bankers and their boards and chief executives know that and are absolutely determined that ethics should prevail, we will be in a much better position than we were. That is the single most important thing.
Lord Brabazon of Tara (Con)
My Lords, I thought that somebody from the other side might get up, but evidently not. I welcome the Statement, as it goes, particularly in terms of selling the RBS shares. However, I hope my noble friend and the Government will not take too much criticism for selling them at a price below that which the Government paid. As an old stockbroker—admittedly, it is 30 years since I was one—one knows that a share is worth what it is worth at the moment, not what you paid for it. If you go on looking at what you paid for a share, your future will end in tears. The reason you hold the share is that you hope its value will go up and not down, and you wonder if you have anything better to do with the money instead. That is why you should possibly sell. I welcome that. As my noble friend Lord Higgins said, this is only the start of the sale process. It is not necessarily all to be sold at this price. If you were to wait until some time in the future when the share price might get up to what it was bought for, you could wait for ever and ever. Also, although my noble friend already said this, he does not want to take too much advice from the party opposite about this sort of thing, as we all remember the gold sales with billions and billions lost.
Lord Ashton of Hyde
My noble friend is correct. Of course the Government are prepared to take criticism if criticism is due, but in this case it is not. We must also remember that it was not this Government who paid the purchase price but a previous Government who had to deal with a crisis situation brought on by, among other things, the chaotic system of bank regulation. If this Government are prepared to deal with that in a way that can provide an overall profit to taxpayers, they should be—as I am sure they will be—duly given the praise they deserve from all parts of the House.