Infrastructure Bill [HL]
Lord Berkeley Excerpts(9 years, 4 months ago)
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Lord Berkeley (Lab)
My Lords, I welcome many of these amendments. There is a sense of déjà vu about today because we spent many hours debating this. I recall amendments put down by several of my noble friends and noble Lords on the Liberal Democrat Benches proposing many of the changes now coming back from the Government. It is great that they have taken so much of our advice. I welcome it. Let us hope that this is a precedent for many future changes.
I am pleased that Amendment 1 starts to provide a link between Parliament, Government and the SHCs because that is very important. We talked about that. It may not be what we wanted but it is a start to getting there. I am also pleased that we have an amendment that says that the ORR can give advice to the Secretary of State on the effect of its guidance. That is good. I hope that the ORR will feel able to give advice on many more things than that. I am also pleased that the Secretary of State must lay a report before Parliament on this—it is all obvious but it needs to be said—and it is important that this happens and happens regularly.
Would it not have been much easier to have changed the name of the ORR during the passage of the Bill rather than with all these amendments? However, I do not really mind and it does not really matter. That is fine. It is a shame that we have not been able to persuade the Government that the ORR, in addition to its work monitoring the SHC, should have powers to take action and require efficiencies as it is able to do for Network Rail. I hope that that will come one day as the ORR will have the capability to do that and it is a logical thing to do. It would be much better for an independent regulator to do it than to try to have the Secretary of State do it. We saw some problems with that with regard to the railways last summer. I also hope that in future we may be able to persuade whoever wins and becomes the Government after May that it will be useful to have the ORR responsible for road safety on the highways network as well. We did not quite get that far, but we are getting there.
Finally, I did not understand what the noble Baroness said about Amendment 45. It rather seems that if the staff of the Highways Agency do not feel that they will be properly reimbursed in whatever changes come they will be told, “That’s tough. You’re not going to get any compensation”.
However, this is a good step forward. We enjoyed the debates in Committee, on Report and at Third Reading and it was obviously a good use of parliamentary time. It is very nice to think that the Government have accepted many of the principles of what we proposed.
Lord Whitty (Lab)
My Lords, I echo quite a lot of what my noble friend said. We have moved in the direction of a report to Parliament and the role of the Secretary of State vis-à-vis the strategic highways company. I accept, I think, although like my noble friend I find the wording a bit peculiar, that that reinforces the application of the equivalent TUPE in relation to the staff of the Highways Agency.
The one point I am disappointed by, which my noble friend also mentioned, was that neither the Commons nor the Government have seen fit to strengthen the reference to road safety in the terms of the duties of the new company. It is a very weak form of obligation. It is slightly stronger than it was originally. The road investment strategy says that the Secretary of State must “have regard in particular” to the effect of the strategy on the safety of users. Later on it says that the company should “have regard”—no longer “in particular” —to the effect of the exercise of those functions on the safety of users. The phrase “have regard to” is the weakest form of legislative obligation. I had hoped that during the passage of the Bill we would strengthen that wording so that it would be an objective of the company and of the investment strategy to improve the performance on road safety. We have not got that and we are now at quite a late stage during the passage of the Bill but I hope that the Government will keep that under review as we go forward and the company is created. I do need to point out that I am a chair of the Road Safety Foundation. The anxiety that safety should be part of the DNA of the new body is broader than just among those who have any vested interests and certainly I would have thought that the Government could have moved further. However, on the rest of it, I thank the Minister for having moved a bit in our direction.
Lord Berkeley
My Lords, my comments on these three amendments reflect my comments on the first group. I welcome them. Again, we spent a lot of time debating them, and it is really good that the Commons listened to the very strong pressure from the various cycling organisations and persuaded the Government that the new clause under Amendment 6 should go in. It covers everything that one could have asked for. It follows on, as the Minister said, from the delivery plan. A duty to deliver a strategy was needed, and what is in these amendments is very good. Subsection (9) even says what happens if the Secretary of State does not produce a strategy, which is very welcome. It would be nice if the Minister could give an indication as to when the first one might appear. Is it this year, next year or sometime never? I know it is always difficult for Ministers to commit themselves.
One thing occurred to me on reading this amendment. I read it as applying to all roads, not just trunk roads, but maybe the Minister will confirm that. I know that there are not many cyclists on trunk roads, as most find it much too dangerous, but trunk roads are useful highways, connecting towns, villages and cities that are a little further apart with a bit more capacity and higher speed. In the Netherlands, they are making high-speed cycle lanes where people are expected to go a bit faster.
However, it is a really good start. I congratulate the Government on listening to all the pressure that has come from the cycling organisations. I look forward to participating and taking this forward.
Lord Teverson (LD)
My Lords, from these Benches, I, too, very much welcome these amendments. As we discussed in Committee and on Report, as the noble Lord, Lord Berkeley, said, we felt that this was an important bit that was missing from transport strategy. The Infrastructure Bill is an excellent opportunity to put that right. The early clauses sounded very woolly to me, but as the noble Lord, Lord Berkeley, pointed out, new subsection (9) makes it rather clear that this is expected to happen rather than being something that is optional. That is a major step forward. I assume and hope that this will go forward and that we will approve it as soon as possible.
The Earl of Caithness
My Lords, I agree with the noble Lord, Lord Teverson, that these amendments do not do very much for the Bill. All these points were going to be covered anyway. I do not think that the process over the past two weeks has done politicians any good at all. It was a hurried amendment in the Commons and the Government, under Liberal pressure, gave way. We now have a cobbled together lot of amendments which did not give the other case a decent chance for discussion. If anybody reads last Monday’s Commons Hansard, it is not an impressive debate. We have not had a sensible opportunity here, although the whole framework of what we are discussing has been discussed ad nauseam in this House.
I would like to ask my noble friend, particularly about item 6 in column 1 regarding what will take place in other protected areas, how many miles of coal-mine tunnel are under protected areas in national parks and areas of outstanding natural beauty? Of course, we must remember that these would not have been allowed under this amendment: the fracking pipeline is only about 6 to 9 inches, whereas a coal-mine tunnel is considerably more.
My noble friend Lord Framlingham has just mentioned ancient woodland. Will marine nature reserves will be classified as protected areas? How many more restrictions will there be on the industry? My noble friend the Minister was absolutely right when she said that health and safety risks can be managed with best practices. We need to show those best practices for the rest of Europe to follow.
Returning to point 6, is this a precedent for future development? If you are not allowed to drill a 6 to 9-inch pipeline a thousand feet down, presumably the Government will not build HS2 which will go smack through the middle of the Chilterns, an area of outstanding natural beauty. There will be 11 kilometres of tunnels there. It will do considerably more damage than any whipstocking under an AONB from a small well. Presumably we will not have any more development. The Liberal party has closed the door on development in national parks and closed the door on the opportunity of growth. I think that a lot of people will use item 6 as a precedent in order to stop any future development at all.
Lord Berkeley
My Lords, I follow the comments of the noble Lord, Lord Teverson, about geothermal plants. People may have read an article in the Times last week on 2 February about the Eden project, which is trying to develop the geothermal plant mentioned by the noble Lord, drilling several miles underground. It says in the article—it is quite surprising to me—that the water that will come out will eventually be 180 degrees centigrade, which is well above boiling point. That is wonderful. It would heat 4,000 homes and all the biomes of the Eden project. I hope that this geothermal drilling—which is purely water based, I think; there are no chemicals or anything else—will not be caught by these various amendments. To quote Michael Feliks, chairman of the Renewable Energy Association’s geothermal group:
“It would be a shame if geothermal energy ended up as collateral damage in a debate about shale gas fracking.”
It is a completely different thing. It is drilling, and it should be allowed under the normal planning procedures rather than coming into this Bill at all.
Baroness Verma
My Lords, I am extremely grateful to all noble Lords for their contributions, but particularly to noble Lords who have supported the government amendments in lieu of the amendments that were made in another place.
A number of questions were raised. I want to make sure that I respond to all of them, but there will be one or two questions that I cannot commit to answering now and on which I will have to write to noble Lords, such as the question posed by my noble friend Lord Caithness about the number of miles of tunnels going underground. I do not think that information is at hand, unless of course the noble Baroness, Lady Jones, has the answer.
I reassure the noble Baroness, Lady Jones, that our regulatory regime is robust. It will ensure that no hydraulic fracturing will be permitted where groundwater and drinking water supplies can be affected. We had a protracted debate not that long ago in which we made it very clear that this Government take very seriously that operations will take place only if all of the environmental impact assessments are met. I had hoped that I had laid out today very clearly in my detailed speaking notes our response to what the other House came up with on Report. We have bettered the amendments that the other place made, so that they will be able to stand up to legal challenge and to ensure that the safeguards that she and other noble Lords, such as the noble Lord, Lord Truscott, have asked for can actually be delivered.
It would be wrong to return to the detail of a debate that has been well practised in this Chamber. The industry is already voluntarily doing a lot of what was asked in the amendments put by the Opposition. I am pleased with the response from my noble friends about what we have taken on board. It is never about a U-turn for a Government, it is about listening carefully and then making sure legislation works. If the noble Lord, Lord Tunnicliffe, wants to make a political point out of it, that is entirely up to the noble Lord. I would say, however, that it is really important that responsible and sensible Governments look very closely at legislation and then respond. I think that the general consensus in the House has been that we have listened, responded and returned with a much better set of amendments, which answer exactly what noble Lords opposite and their colleagues down the corridor have asked for.
National Networks: National Policy Statement
Lord Berkeley Excerpts(9 years, 5 months ago)
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Lord Berkeley (Lab)
I am grateful to the Committee for allowing me to speak for a short time. I apologise for turning up late but my programme said that we were going to start at 3.45 pm. I apologise to the Minister in particular for missing the first part of her speech. I declare an interest as chairman of the Rail Freight Group.
Generally, I welcome this national policy statement. It has been some time coming but in the main it is good, and it will do an awful lot to make strategic development easier and possibly quicker—we will have to see how that works—and should certainly help integration, although the noble Lord, Lord Shipley, has put some questions down that I look forward to hearing the answers to.
I came across an example a week or two ago when I was privileged to go to the Port of Felixstowe and meet the biggest container ship in the world, which came in there. The Chinese ambassador was there along with other important people. The noble Lord, Lord Deighton, was there, making a very important speech about how good the UK was for business, and how with these big containers you need proper road and rail links inland to ensure that the containers can get away and arrive. I did not say anything in the speeches but I went up to him soon afterwards and said, “The solution is in your hands. Why don’t you speak to the Secretary of State for Transport and a few other colleagues and get the Felixstowe branch doubled and improve the links across the country, which are really bogged down?”. He said, “Well, I’m talking to Hutchison Ports”. I said, “That’s wonderful, but they’re not the people who will actually be doing it”. Maybe the Minister could take that on board and see where it has got to, because it is a major hang-up in getting these extra numbers of containers on to the network to where they want to get to or come from.
My concern echoes the criticism of the Commons Transport Committee about the projections for road and rail that the NPS does not explicitly address the criticisms that many people have made. In a Question in your Lordships’ House a few months ago, we debated the fact that the predictions always show an increase in road traffic, when in fact if the predictions 20 years ago had been true, which said that we would more or less double the amount of traffic, we would probably have more than three times the amount of traffic now than we actually do.
There are many other problems that point to a failure of being able to consider alternative modes. If someone is proposing to build a motorway, or to widen a motorway, to increase the capacity, will anybody look at the alternative for taking it by rail? I think it probably stems from the way in which the projections are done. If you build a bypass or something and you get many millions of cars saving half a minute on their journey, and if you aggregate that up, it will give you a wonderful cost-benefit, in the positive sense, to build the road, without looking to see whether those people could have gone by rail or have cycled or walked. There has been massive criticism of this from groups such as the Campaign for Better Transport and the CPRE, which the Minister will have seen. I wonder whether the time has now come—now that this NPS will, we hope, be confirmed and published and we can all work to it—to reflect on whether there could not be more detailed discussion and investigation into the traffic forecast modelling that the department used, to consult all the experts and to see whether we can get something that is a little more acceptable to many of the users and developers.
Lord Berkeley
But surely resilience, either on rail or road, includes having alternative modes when something goes wrong. Is that not part of planning?
Baroness Kramer
First, that is reasonably well covered but in terms of determining how you cope with resilience, the resilience study for the south-west—a study which the noble Lord, Lord Berkeley, will be very aware of—was also interesting because all modes were looked at in its production. However, it seems to me that it has to be apropos the event location that one is coping with, so we would need resilience on individual modes as well as for broader access. The NPS has that within its language. Part of the way in which the department and the Government are now working is also demonstrated by something like that resilience study, which addressed that wide range of issues. It is picked up again in the RIS where, for example, something such as the A303 is absolutely critical to resilience in access down into the south-west, even though the crisis was on a rail line at Dawlish. To tell the honest truth, I think we have that one sorted.
There are issues of integration and considering an overarching transport plan, which my noble friend Lord Shipley addressed and the noble Lord, Lord Berkeley, to some extent echoed. First, if one were to look at page 102 of the planning document—the very last page—it is quite instructive because it shows, as it were, the food chain. To me, the work on looking at alternative modes and setting out a broader transport plan happens much earlier up the food chain than in this planning document. It is too late by the time that progress has got as far as the NPS. There is a section called “strategy and policy”, which is a crucial area to bring in this thought around various modes and a much broader perspective on transport. Critically, and as I think I said in my speech, when it progresses to the investment planning and decision-making phase that would be where the RIS, the route utilisation strategies and the work required in the various control periods for Network Rail would appear. It is at those stages that those issues need to be addressed.
Once it gets to planning, it is not that one ignores integration and alternative modes but we would be just past that point when this document begins to apply. I think that is healthier. I say that for this reason: I look at what seems to have been real progression in this area over the last few years. If I had looked at transport planning even four or five years ago, I am not sure that when we looked at HS2 we would have been so incredibly focused as we are now on building that east-west connectivity across the Midlands and the north. It has become an implicit part of looking at HS2 to talk about not just HS3 but much more complex work. A significant part of the responsibility for that has now been devolved to Transport for the North—that is, having remembered its acronym, TfN—which will be producing its initial report in March. That devolved engagement is crucial to that step. That comes well before we would ever get to an NPS; it is a much earlier piece of thinking. Also, when we look on a project-by-project basis, Sir David Higgins of HS2—my noble friend Lord Shipley specifically raised HS2 and connectivity—has said that that is a key theme. He works closely with Network Rail around those issues, because as he builds rail infrastructure, building in the rail interconnection or ensuring that it is optimised will be key. Indeed, one reason that we have not finalised the route for phase 2 is that it is so important to bring connectivity into that picture. Much of that is relatively recent thinking, but it comes at a much earlier stage than the NPS. Very important issues have been highlighted, but I am not sure that they are something for this document. In fact, it would almost be a failure if we were suddenly to start considering that at the NPS stage. It has to have been dealt with much earlier in the process.
I completely agree with the noble Lords, Lord Davies and Lord Berkeley, that rail freight interchanges are crucial. I think that there is now general satisfaction with the provision for that as described in the NPS document. It takes what the industry and much—although not all—of the environmental community thinks is an appropriate approach. We are investing heavily in access to the ports. The noble Lord, Lord Berkeley, will know of the upgrade from Felixstowe to Northampton. Across the various controlled periods, we are looking at the necessary improvements for port capacity. An area that will need a lot of focus in future years is that HS2 releases west coast main line, east coast main line and Midland main line in ways that create capacity for freight that we have not been able to explore historically. Although freight always has to be near the centre of our thinking, there will be a great deal of change as we explore how we can maximise the benefits of that freed up capacity. That will be important.
On modal shift, we have our revenue fund—about £80 million—to try to encourage a modal shift from road to rail. I am now falling back entirely on memory, but I think that the road investment strategy highlighted some parts of that strategy as ensuring relevant port connectivity. If that is not right, I will write back to your Lordships, but I certainly remember that being a great subject of conversation and I am pretty sure that it ended up in the road investment strategy.
My noble friend Lord Shipley talked about continental gauge. My husband, who is now long dead, was one of the supporters of Central Railway, which proposed a dedicated freight line. I think that a Member of Parliament in the other place, Kelvin Hopkins, is a supporter of Eurorail. A number of such projects are coming forward; none is proposed at the moment. It will be complex to consider them until we have a sense of what HS2 releases.
Lord Berkeley
Just for the record, Kelvin Hopkins MP has a scheme which he has been promoting for several years. It is still on his table; whether it is on anyone else’s table, I cannot say.
Baroness Kramer
I do not think that it has come forward to Parliament. I am giving a personal view, but I believe that a major project on that scale is outside the NPS, just as HS2 is, and that the hybrid Bill process would be used because it affects so many communities and so many localised planning issues that require people to have a voice. I cannot believe that it would be appropriate to handle it in any way other than through the hybrid Bill process, but I could certainly be proved wrong in future. My sense is that it belongs there rather than within the NPS framework.
I think that I have covered most of the issues that were raised. As I have said, they are all crucial to transport thinking, so I appreciate the fact that they have been raised in the context of this opportunity to discuss transport. However, we have also to recognise that the NPS is a very specific document meeting a very specific purpose and it is with that in mind that I am narrowing down my comments. The NPS does not introduce new policy; it states current policy. It is a planning document and it is central to our long-term economic plan. We have responded seriously to discussion and debate in this House and the other place as well as in public consultation because we have wanted to get it right. I hope that, on that basis, your Lordships will feel able to support the document today.
Railways: Pacer Trains
Lord Berkeley Excerpts(9 years, 6 months ago)
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Baroness Kramer
I have to say to my noble friend that that last accusation is a new one to me. Clearly, the Chancellor gave a commitment to replace these trains. We also know that this is a line that is due for electrification. However, I am afraid I cannot share the details with the House until we get to the invitation to tender, because they are still being worked out. It will not be very long to wait; it will be in early 2015.
Lord Berkeley (Lab)
My Lords, while all this is going on, the Government are doing the opposite and giving even more trains to the south. Indeed, today the Minister for Transport, Claire Perry, announced that there would be 10 new four-car trains to take people between Milton Keynes and London. Last week, I believe, new diesel trains were ordered and committed to go to Uckfield and between Ashford and Hastings. Is it not time that this trend was reversed and that the new diesels went to the Northern area? Perhaps the people of Sussex and Kent could try out some Pacers for a few years and see how they get on.
Baroness Kramer
My Lords, we are obviously anxious to phase out these Pacers rather than find them new homes. The noble Lord will be aware that we have orders from up and down the country for new rolling stock at significant levels; that includes the north—for example, on the east coast main line. An invitation to tender is coming very shortly in the new year. I cannot speak ahead of it, but I am reasonably confident that my noble friend will be happy.
Transport: Women’s Safety
Lord Berkeley Excerpts(9 years, 7 months ago)
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Lord Berkeley
To ask Her Majesty’s Government what action they are currently taking to improve women’s safety on transport.
The Minister of State, Department for Transport (Baroness Kramer) (LD)
My Lords, we work on a number of fronts to improve safety and security for all passengers and staff. In particular, the Government are supporting a British Transport Police-led academic literature and tactical review on reducing sexual offending and improving perceptions of safety on transport. This research will be delivered for February 2015 and will support an international expert session to debate the findings.
Lord Berkeley (Lab)
I am grateful to the Minister for that reply. Is she aware of a study recently done in the UK and Canada that found that,
“women passengers generally prefer staffing to technological solutions and are very skeptical of the tendency of”—
transport operators—
“to replace staff from trains or buses with automated machines”.
Will she encourage operators to have more staff and fewer machines and CCTV and to recruit more women to the front line, which women also prefer in many instances?
Baroness Kramer
My Lords, I completely agree with recruiting women to the front line. It is also important to have a staff presence where that is feasible. I am very encouraged, for example, by Transport for London’s commitment to take staff out of the ticket offices and put them out on the platforms and places where the passengers are. However, if we were to man every station at all hours at all times, we would unfortunately have to close stations because of the inherent cost.
Infrastructure Bill [HL]
Lord Berkeley Excerpts(9 years, 7 months ago)
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Lord Berkeley
“( ) The Office of Rail Regulation is renamed as the Office of Rail and Road Regulation.”
Lord Berkeley (Lab)
My Lords, in this grouping I have five small amendments, Amendments 36 to 40. They really suggest that perhaps the Office of Rail Regulation needs renaming, whether as the Office of Rail and Road Regulation, the Office of Road and Rail Regulation, the Office of Surface Transport or something like that. Given that the Government and Passenger Focus have agreed to change that organisation’s name, I wondered whether the Minister had any proposals to make this change.
Amendment 39 tries to link in with the licence and other things about which we were talking. Probably the most important amendment in this group of five is Amendment 40. Can the Minister explain why Clause 9(5) is there? Basically, the strategic roads authority would not have to provide any documentation to the monitor or office of road regulation if it was confidential. It could not be compelled to produce such information.
I do not believe that that is the case for the Office of Rail Regulation or Network Rail. Network Rail should provide every bit of information that is required. I know from discussions in Germany with the German rail regulator that the German railway, Deutsche Bahn, succeeds in preventing the regulator from investigating some sections too thoroughly because it was not given the information. It is a bad precedent. Would the Minister consider whether this paragraph is necessary or could be changed?
The final two amendments in this grouping are Amendments 41 and 42. Perhaps I should speak to Amendment 42 and the Minister could answer. She should then speak to Amendment 41, which is a very good amendment that I welcome. It concerns compliance and fines, and I am sure that the Minister will talk about fines. Look at new subsection (1)(a) and (1)(b) on a road investment strategy and directions and guidance, proposed in government Amendment 41; it would be rather good to have in addition two paragraphs (c) and (d) that referred to compliance with safety and efficiency requirements. It seems to me that that would tie up the role of the ORR and make sure that it had to investigate all these issues such as safety and efficiencies and, if necessary, levy fines or impose any other penalties that it felt should be imposed. I beg to move.
The Minister of State, Department for Transport (Baroness Kramer) (LD)
My Lords, I have previously discussed the rationale behind a number of government amendments which will further define the duties of the monitor. Amendment 41, which I have already described but will move shortly, if I understand it correctly, makes it clear that if the company fails to comply with its statutory directions or have regard to guidance, the monitor may issue fines. We have covered Amendment 43, which will give the monitor a duty to drive performance in a number of areas.
Amendments 38 and 39 propose an alternative to the Government’s definition of the monitor’s function. However, as I have mentioned, the Government’s amendments to the Bill already describe what the monitor should have regard to when monitoring the strategic highways company. With those in place, the distinction between “monitoring” and “ensuring” should become academic.
The noble Lord, Lord Berkeley, has also proposed that we remove subsection (5), which prevents the ORR requiring the company to provide it with information that it would not be compelled to produce during civil proceedings. Our legislation already grants the Office of Rail Regulation strong legal powers to require the strategic highways company to disclose data. However, I reassure noble Lords that this does not mean that the monitor has carte blanche to access every file held by the company. For example, the company should not be obliged to disclose particularly sensitive documents—for example, legal advice. This is a perfectly reasonable proposition.
In assessing the performance and efficiency of the company, there is little information that the company would not be compelled to disclose during civil proceedings that would help inform the monitor’s analysis. In addition, pitching this at the level of civil proceedings has a precedent. The provisions in subsection (5) mirror those in Section 58 of the Railways Act 1993.
As for the amendment of the noble Lord, Lord Berkeley, to the government amendment, I agree that the company must comply with its health and safety obligations and have due regard to maximising efficiency. It is also important that the monitor has the power to sanction the company if its performance and efficiency have been insufficient, as the Government’s amendments have set out. However, as we have already discussed, I do not believe that it follows from this that the monitor needs further powers to issue sanctions for health and safety. The Health and Safety Executive is responsible for policing this area and every company has an obligation to comply with the Health and Safety at Work etc. Act 1974, regardless of what our monitor is empowered to do. As there is already an effective and respected body in this area, I feel that it should be left to continue with its good work.
Turning to the second addition, once more I agree that maximising efficiency on the design, construction and operation of the highways is important. When we discussed Amendment 43, we made it clear that the monitor has critical responsibilities in assessing the key themes of performance and efficiency; and it will need to use its powers of sanction accordingly. The Government’s amendments ensure that these issues are given appropriate regard. The monitor will have the power to sanction the company if it is satisfied that the commitments of the road investment strategy, which will include commitments on construction and on efficiency, have been contravened.
This leaves the issue of design, which is currently the remit of existing planning authorities. Planning authorities operate effectively and judiciously all across the country. They currently have the responsibility for approving the design of any highways and are well placed to consider local issues. This system works well, and I believe that matters of design should remain in their capable hands. They need not be duplicated by the monitor.
Finally, I turn to the first amendment in this group. This proposes that the Office of Rail Regulation be renamed the Office of Rail and Road Regulation. As your Lordships may be aware, following discussions in Committee we have announced that we plan to change the legal name of the watchdog from the Passengers’ Council to Transport Focus. I can understand why the noble Lord proposes this change for the monitor. This case, however, is less straightforward.
There is the issue of the proposed name. While it may appear that we are indeed talking about an office dealing with road and rail issues, I urge caution around “regulation”. The monitor will not be a regulator of roads, at least in the market-setting sense in which the ORR currently regulates the railways. It will not control the direct costs on individual motorists for using the network, as it does on the rail side, because for the vast majority of roads such costs do not exist. In fact, the tools available within a hypothetical office of rail and road regulation would be very different, depending on which side of the road or rail fence it was acting.
We have discussed this question with the ORR itself. It is very alert to the new challenges of its role, and to the value of handling road and rail policy in one organisation. It does not, however, think that a name change is appropriate at this time.
Unlike Passenger Focus, the ORR has to manage a relationship with its levy payers in the rail sector and has a formal role in making sure the rail market functions well. Given that this is a substantially different role to roads, it would rather carry out the road work under a strong free-standing brand—the strategic road network monitor—while retaining its current statutory name for its existing work. This will ensure that any confusion is avoided and that, in the eyes of the public, roads monitoring is clearly differentiated from rail regulation. This will make it clear that neither road nor rail users risk having their interests eclipsed by the other.
There is also a practical issue with the noble Lord’s approach to renaming the Office of Rail Regulation. Considering the varied legislation in which the name “the Office of Rail Regulation” appears, the proposed amendment would not be in itself sufficient to make the change. There would also need to be significant tidying up. That is why we are renaming Passenger Focus, through secondary legislation, in which these implications can be worked through. If we were changing the name of the ORR, we would want to follow the same approach.
The amendment that I propose is an important safeguard in ensuring appropriate monitoring of the strategic highways company, and I hope that your Lordships will support it. Conversely, I believe there is a strong argument against each of the amendments of the noble Lord, Lord Berkeley, and ask that he withdraw this one.
Lord Berkeley
I am grateful to the noble Baroness for her full answers to those questions. I shall not push the ORR issue again. It is not something that has to be top of the priorities, but I am grateful to her for her explanations, and I beg leave to withdraw the amendment.
Baroness Kramer
Your Lordships have previously asked if cyclists and walkers are included in the definition of road users of the strategic road network and other highways. The answer remains emphatically yes, and I have moved an amendment to make this absolutely clear for the provisions of the Bill where we use the phrase “users of highways”. I should also point out that this definition—I have double-checked this with the lawyers—absolutely does not exclude any other users who may not be mentioned.
Lord Berkeley
The House should congratulate the Minister on the amendment. We have discussed it so often. We have been told on many previous occasions that Governments do not like lists; you can understand that. I shall not table an amendment saying, “Please add Segways and horses” or anything else. I take what the Minister says: this covers everything.
In that vein of thanks, the two other amendments in this group are to do with cycling and walking strategy. Some noble Lords have already spoken on cycling and walking. It may seem odd that on strategic highway routes there is not much cycling and walking. I suggest that there should be. It is important that, as part of the strategies that the strategic highway company will have to look at, it should have a separate cycling and walking investment strategy.
In this House we have debated cycling on many occasions. The pressure is on from many areas, not just from the cycling and walking organisations but also from those who believe that they are pretty healthy forms of transport, to get the Government to commit to a long-term strategy with some long-term funding. So far, Ministers have not been able to make any commitment to funding, but the recommendations from the All-Party Parliamentary Cycling Group’s report last year suggested that £10 per head of population per year—which is about half the figure in many continental countries, such as Belgium, Holland and Denmark—could be allocated on a long-term basis to improving cycling facilities, infrastructure and other things,
I know that Ministers have in the past said that this is a local problem and that it should therefore be funded locally. The problem is that local funding does not usually stretch to such things. Many people believe that, combined with a draft strategy, something like what is in Amendment 55 and the proposed new schedule in Amendment 96 should be done for the benefit of health, and for cyclists and walkers, and to reduce road congestion, pollution and the other things that we talked about earlier.
I look forward to the Minister’s response, and take into account that this is only the small tip of an iceberg. As my noble friend Lord Davies of Oldham said, most journeys take place on local roads. Still, it is a start, and if it could happen on the trunk road network, I suspect that the other roads would soon follow.
Lord Teverson (LD)
My Lords, I, too, very much welcome the Minister’s amendment. It offers clarity and shows that the Government are quite clear that cyclists and walkers are important on the highway network. I admit that I could not resist backing the amendment of the noble Lord, Lord Berkeley, because, although I am not an absolutely regular cyclist, I get my bike out quite frequently in Cornwall, which is not the easiest of terrain to cycle.
I was in continental Europe over the weekend, and it was astounding to see how important cycling can be in terms of an alternative transport means and strategy. If it is one that is generally safe, and one that is accepted among families, then it becomes a normal way of getting to school, of getting to work and moving around. Indeed, I remember doing it as a child back in the 1950s and 1960s. I always used to cycle to school, save the bus fare and spend it elsewhere. That was my disposable income for the week.
Given the excellent work that, in particular, my right honourable friend Norman Baker has done in the other place in the past, and the Local Sustainable Transport Fund, this is something that we need to build on. That is why I was very pleased to support this amendment. It would be good to move to a proper formal government strategy in this area. It is also all part of our commitment to reduce carbon emissions in the transport sector, and a very important way of doing that. Having said that, I also understand the argument that—hopefully—as we devolve more fiscal powers to cities and non-metropolitan areas as well, this should be a major part of their focus of work, too.
It would be a sign that the Government is looking at this area and has some strategy that they see as a framework. It would also give a signal that the Government think that this is important, and would get them ahead of the curve on this important change that is gradually happening. It would be so much better for all of us: for emissions, for physical exercise and for congestion. It would have big pluses for all those points of view. That is why I am pleased that the Minister has proposed the amendment that she has, but I hope that the Government can consider this and take it forward in some way or another.
Infrastructure Bill [HL]
Lord Berkeley Excerpts(9 years, 7 months ago)
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Lord Berkeley (Lab)
My Lords, I support my noble friend and will briefly speak to some of the amendments in this group, namely Amendments 2, 2B, 5, 6, 6A, 7 and 7A. I will not repeat all that my noble friend has said, because the various amendments that we have tabled between us provide the basis for the proper link between primary legislation and the licence, which, as my noble friend said, is so lacking in the Bill.
I started off by looking at the relevant clauses of the Railways Act 1993 and the Railways Act 2005, which we discussed in Committee and in some helpful meetings with the Minister and officials, for which I am grateful. It was remarkably easy, at this comparatively high level, to cross out “rail” and put in “road”; they are very similar. If, as my noble friend said, we are to have a company that looks after the strategic roads in a way that is similar to what Network Rail became in September by becoming fully government-owned, it would seem logical that the legislation under which this happens would be similar.
I will not go through all the amendments in detail; my noble friend has done that very well. However, I have two questions for the Minister when she comes to reply. First, under the Bill, will it still be possible for Members of Parliament and of this House to table Written Questions and ask questions of Ministers, as we currently can with the Highways Agency? Noble Lords will know that we cannot do that for Network Rail, because if you table a question about it the answer comes back, “Write to the chief executive”. I am sure one gets good answers from the chief executive, but one does not see the answers that other noble Lords get to the questions that they ask the chief executive. I hope that the same thing will not happen with the strategic highways company and that we will still be able to table questions about its operations and the company generally, and to get a proper Written Answer or be able to have an Oral Question or debate on it as the circumstances demand.
I also hope that when Network Rail becomes subject to the Freedom of Information Act on 1 April next year, that situation will apply to it. Clearly, we would not want to ask whether a motorway sign or signal had been moved; that would be a ridiculous waste of ministerial time. On the other hand, there are many things that it would be useful to ask such questions about for the purposes of parliamentary scrutiny.
My second question for the Minister concerns my Amendment 7A which relates to Section 48 of the Health and Safety at Work etc. Act 1974. This exempts Crown-owned companies, or officers or companies of the Crown, from being taken to court by the Health and Safety Executive if it believes that they have contravened the Act. I know that the Highways Agency itself is exempt, being a Crown agency. It would be nice to know whether any change was planned in this relationship, and therefore the exemption, when the strategic highways company comes into existence. I believe that Network Rail does not have an exemption, because the Health and Safety Executive, through the Office of Rail Regulation, has taken action against it on several occasions. There should be a balance between the two and as much transparency as possible. I am very much looking forward to what the Minister has to say in response and fully support the amendments of my noble friend.
Lord Bradshaw (LD)
I shall say just three things. The Government are mistaken. The Office of Rail Regulation should, under that title, oversee roads as well. In spite of all the arguments, if it were signalled, it could change its name at some future date. It could be planned for and there would not be a lot of expense. It would be much more understandable to motorists and everybody else who the regulator was, whether it was a railway regulator or a transport regulator.
I also endorse the points made by the noble Lord, Lord Berkeley, about safety. One thing that the Office of Rail Regulation has done is to drive up safety standards on the railways. Although the Government keep saying the safety standards on the roads are the best in Europe, these are really quite deplorable, as we see with the continued deaths of cyclists in London, for example.
Lastly—I know I am reaching for the moon here—would it not be better to be honest and say that we have to adopt road pricing some time and, to make it acceptable, to say that the money raised from it would be used for roads and motoring purposes? If you explain what the money is for, people are much more likely to embrace the idea. A recent opinion poll in one of the national papers showed that people were against raising taxes, but if they were specifically asked whether they would pay more tax to improve the health service, they said yes. The same applies to road pricing.
Lord Davies of Oldham
My Lords, this amendment requires the Secretary of State to publish a report on allowing a public sector rail operator to take on lines and challenge the train operators on a genuinely level playing field in the public interest, securing value for money for passengers and taxpayers.
Many noble Lords will no doubt recall the exchanges that we had at Question Time last week on the future of east coast rail. I congratulate the Minister on her performance then in defending the Government’s position, which I regarded then, and still do regard, as indefensible, but I hope that today her response will be somewhat different. We should learn the lessons of east coast rail, where we have seen the benefits of a not-for-dividend operator running a rail line.
East coast rail was brought back into public ownership in 2009 after the private operator reneged on its commitments. It is efficient, it has returned more than £600 million to the taxpayer and it invests every penny of that profit back into the company. It provides a quality service, achieving record levels of passenger satisfaction and punctuality. The new timetable that it introduced in 2011 allows it to operate 7,000 more trains each year, and it now has 500,000 more passengers. It has also delivered for passengers. This year’s fare rise was in fact a real-terms cut—something that no private franchise was able to do. In fact, elsewhere, season tickets have risen in price by 30% since 2010—a stark contrast.
Despite that, the Government appear intent on pressing ahead with the privatisation of intercity east coast services. Will the Minister confirm that the cost to the taxpayer of reprivatising the east coast could run to £6 million? It is important that the Minister responds to this question and says what steps the Government are otherwise taking to improve the functioning of the railways. It is unacceptable that our rail lines are, according to the 2011 McNulty review, up to 40% less efficient than the best-performing European networks.
We know that the Conservative Party is unwilling to take a pragmatic approach on this issue. Its Railways Act 1993 effectively prohibits a public sector operator, except in the most restrictive circumstances. But the public do not feel this way. Only 28% of those polled support the sell-off of east coast. Can the Minister say on which side of this divide her own party finds itself? Many will recall her party’s support for a public sector operator while it was in opposition. It is time to put an end to this rigid ideological approach, which also sees the Government trying to rush through a sell-off of the 40% public stake in Eurostar before we have even seen the conclusion of my noble friend Lord Myners’s inquiry into the Royal Mail privatisation.
This amendment would give the Government the opportunity to reflect and to alter their stance. It is time to learn the lessons of east coast and legislate to allow a public sector operator to take on lines. It should be able to challenge the train operators in the public interest on a level playing field. That is the way to secure the best deal for passengers and for taxpayers. I hope that the Minister will accept this amendment so that we can move in that direction. I beg to move.
Lord Berkeley
My Lords, it is worth reminding the House that we already have public sector operators in this country; we have lines owned by Dutch railways, French railways and German railways. They are not called that in this country—they have different names—but they are owned by those countries. On the continent, some of them operate effective, positive and well liked services; some of them are pretty awful. When you hear that Eurostar, which is still 40% owned by the British Government—although it is for sale—is allowed to bid for the east coast, but a company that is perhaps 100% owned by the British Government would not be allowed, it does seem a bit odd. I am sure that the Minister has an answer to that, but it seems to me that we are selling off our crown jewels in the shape of a piece of Eurostar and allowing the companies that buy them—perhaps from the continent, perhaps from elsewhere—to come back and provide a good service on certain occasions, but to compete a little unfairly against what our own companies might do if they existed.
Lord Snape (Lab)
My Lords, I have followed this debate over the years with some interest and have a number of questions arising from this amendment that I would like to put to the Minister; perhaps my noble friend on the Opposition Front Bench would also like to consider them. I have no interest to declare in this debate other than the fact that I worked for the railway industry, as did my father. The romantic view, perhaps, of British Rail that some of my colleagues occasionally expressed was one that neither my father nor I shared.
Working for a nationalised railway industry, as I did before being elected to the other place and before being appointed to this House, was a massively depressing experience. Year after year, the amount of finance available to the railway industry was the subject of debate. It was quite often cut back. Short-termism was the only way to describe the finances of BR. Although I am no great supporter of the form of privatisation that the Government have inflicted on us, at least it has provided some degree of long-term continuity so far as railway finances are concerned—a continuity that did not exist when the railways were nationalised. Indeed, some of those in my own party used to mock what they called the concept of Morrisonian nationalisation. They said that it was not nationalisation at all and that the railways were being run by the civil servants. That view was widely shared by many of us who worked in the industry at the time.
I speak to this amendment not from any romantic attachment to a nationalised railway but as a confused supporter of the railway industry who wonders how we got into this particular mess in the first place as far as franchising is concerned. I have said in previous debates that what we have at the present is neither one thing nor the other. It is certainly not franchising. If we look at the new trains that are in the process of being ordered and built, it appears that they were designed by civil servants. The Government or civil servants set the fares as far as companies are concerned. The Japanese build the trains and the rest of us ride around the country in what remains of the whole industry. It is a confused picture, to say the least, but I do not feel that the amendment would help to clarify matters particularly.
I have one or two questions I want to put specifically to the Minister about the current process, before we look at whether or not directly operated railways should be allowed to bid for franchises. How are these decisions actually taken? The whole thing is shrouded in mystery. Various companies, we understand, put forward bids for the franchises, and a process of evaluation takes place behind the scenes. Perhaps the Minister can tell us how this process is conducted and who is involved in it.
If this amendment were to be accepted, would it mean that one desk in the Department for Transport would put together a bid and its merits or otherwise would then be decided by another desk in the Department for Transport? I hope that I am second to none in my admiration of the legal profession, which does not go unrepresented in your Lordships’ House, but if the answer is yes, one can imagine a bonanza for lawyers in the event of an appeal. Indeed, the taxpayer has just paid heavily for the mess that was the west coast main line franchise. Perhaps the Minister could tell us in passing exactly how much that cost.
If the amendment were accepted, how much does she envisage it would cost the taxpayer to fund legal inquiries or complaints if DOR’s bid—an internal departmental bid in some ways—were accepted over and above a private sector bid: or, as my noble friend Lord Berkeley rightly reminded us, a bid from a nationalised railway industry in Germany, France or Holland, to name but three? I hesitate to sound critical, but one can imagine the legal profession rubbing its hands at the prospect of such a financial fracas taking place behind the scenes.
Allowing DOR to bid is not particularly revolutionary. In the debate on privatising the railway industry in 1993, your Lordships’ House accepted an amendment moved by that well known left-winger Lord Peyton of Yeovil to allow the British Railways Board, as it then was, to bid for franchises. That amendment was struck out in the other place and we have the system of privatisation, franchising or whatever you like to call it that we have now. I do not wish to add to the difficulties of the Minister if, as I suspect, she rejects this amendment, but some clarification is long overdue before she does so as to exactly how this process works at present and how it would be affected if the amendment were accepted.
Lord Berkeley
“Strategic highways company licences
(1) A licence under section 1 may include—
(a) such conditions (whether or not relating to the licence holder’s being responsible for assets under the authorisation of the licence) as appear to the grantor to be requisite or expedient having regard to the duties imposed by section 4; and(b) conditions requiring the rendering to—of a payment on the grant of the licence, or payments during the currency of the licence, or both, of such amounts or amounts as may be determined by or under the licence.(i) the Secretary of State,(ii) the Office of Rail Regulation, or(iii) any other person, or any other person of a class or description, specified in the licence, except a Minister of the Crown or Government department,of a payment on the grant of the licence, or payments during the currency of the licence, or both, of such amounts or amounts as may be determined by or under the licence.(2) Conditions included in a licence under subsection (1)(a)—
(a) may require the licence holder to enter into any agreement with any person for such purposes as may be specified in the conditions; and(b) may include provision for determining the terms on which such agreements are to be entered into. (3) Conditions included in a licence under subsection (1)(a) may require the licence holder—
(a) to comply with any requirements from time to time imposed by a qualified person with respect to such matters as are specified in the licence or are of a description so specified;(b) except in so far as a qualified person consents to his doing or not doing them, not to do or to do such things as are specified in the licence or are of a description so specified;(c) to refer for determination by a qualified person such questions arising under the licence as are specified in the licence or are of a description so specified;(d) to refer for approval by a qualified person such things falling to be done under the licence as are specified in the licence or are of a description so specified;(e) to furnish to a qualified person such documents or other information as he may require for the purpose of exercising any functions conferred or imposed on him under or by virtue of the licence;(f) to furnish to the Secretary of State or the Office of Rail Regulation such documents or other information as he may require for the purpose of exercising the functions assigned or transferred to him or it under or by virtue of this Act.(4) Conditions included in a licence may contain provision for the conditions to cease to have effect or be modified at such times, in such manner and in such circumstances as may be specified in or determined by or under the conditions; and any provision included by virtue of this subsection in a licence shall have effect in addition to the provision made by this Part with respect to the modification of the conditions of a licence.
(5) Subsections (2) and (4) are without prejudice to the generality of subsection (1)(a).
(6) Any reference in subsection (3) to a “qualified person” is a reference to—
(a) a person specified in the licence in question for the purpose in question, or(b) a person of a description so specified,and includes a reference to a person nominated for that purpose by such a person pursuant to the licence.(7) Any sums received by the Secretary of State or the Office of Rail Regulation in consequence of the provisions of any condition of a licence shall be paid into the Consolidated Fund.
Lord Berkeley
I shall be brief in speaking to this group of amendments because we have discussed at some length the licence for the strategic highways company. My Amendment 9 is a provision similar to what Network Rail now has. I was interested in the Minister’s comment that it is a licence for a commercial model and that the strategic highways company is not going to be commercial. I do not know whether Network Rail was ever commercial in her definition of the word, but it certainly is not now and I notice that the Government have not tried to change the licence to reflect any alteration. Perhaps she has a quick view on that. The draft licence that we received on 3 November was certainly an improvement on the previous version, for which I am very grateful.
The only other thing I wish to comment on in this group is my Amendment 17, which is to do with the duties of the strategic highways company. Whether they should go in a licence or in some other document, I do not know, but the draft licence from the Department for Transport is a licence to build roads, to take into account environmental concerns and to do it reasonably efficiently. Given experience of legislation over the years, there is a need to have in the Bill, for preference, or in a licence, if it must be that way, a wider role and wider responsibilities for this company to go cross-modal. That includes looking at road and rail—I declare an interest as chairman of the Rail Freight Group—passenger as well as freight, efficiencies, travel choices, developments in sustainable locations, as sustainability is very important in all this, and different modes to secure the economic, social and environmental gains jointly and severally. I do not think that these are in the draft licence at the moment. If the Minister would look at this again and see whether some—preferably all—these issues could go into a licence, I would be much happier that the strategic highways company was going to be part of a wider transport and environmental structure, taking into account the needs of customers, the environmental needs, roads, railways and developments in local transport. With that short introduction, I beg to move.
Lord Whitty
My Lords, I have Amendment 10 in this group. Again, as in the previous debate, my noble friend Lord Berkeley has put his finger on another lacuna in the Bill. Nowhere does the Bill spell out the functions and duties of the proposed strategic highways company. There is a whole schedule, 26 pages long, which largely consists of adding,
“or a strategic highways company”,
but does not actually say what that company should do. I find this extraordinary and not consistent with earlier circumstances in which we have set up public bodies or corporations to do a particular job, some of which are still doing it, where there was clarity in the legislation as to those functions. Those functions have to be economic, social and environmental these days. The Government should at least consider making sure, at later stages, that the Bill spells out the central duties of the companies. I hope that the Minister will take that away.
Lord Berkeley
My Lords, I am grateful to the Minister for her response. We must recognise that she has moved a long way on these discussions in the last month or so and I very much welcome her commitment to come back at Third Reading with some of these issues—particularly those in my Amendment 17—in the Bill. As she says, some of the things are in the draft licence but, as many noble Lords have said, we would like to see it strengthened a little more. I hope that we will be pleased with the result at Third Reading in a week or two. In the meantime, I beg leave to withdraw the amendment.
Lord Berkeley
My Lords, I support my noble friend on this group of amendments. I will briefly develop his theme by looking at the amendments in the group that relate to the monitor. I have proposed that the name of the Office of Rail Regulation should be changed, but that does not matter very much.
In Clause 9, the Government have introduced Amendments 41 and 43, both of which are welcome. They are a step forward from our discussions and I am certainly pleased to see them there. I have one or two amendments to those two amendments on the Marshalled List, which are complicated to go through and I am not going to attempt to go into any great detail now. Their purpose is twofold. One relates to safety and the other efficiency.
On the railways, one of the two tasks of the Office of Rail Regulation is to ensure that the network is operated as safely as possible under the Health and Safety at Work etc. Act, which is slightly modified for railways. As my noble friend Lord Whitty said, the approach of the amendments is to do the same for the roads. Let us not forget that, as my noble friend said, just under 2,000 people were killed on the roads in the past year compared with none on the railways—no passengers, very few rail workers and I am not sure about the road workers. Sadly, suicides are a separate issue. The difference between 2,000 on the roads and none on the railways indicates that the structure of the Health and Safety at Work etc. Act is working very well on the railways. In these amendments, I propose that a similar thing should be done on the roads, supervised by the Office of Rail Regulation.
The other relevant matter in this group is that, as we discussed briefly in Committee, the monitor should not only have the ability to check on the efficiency of the strategic highways company, but have powers of enforcement if it felt that the efficiency was not as it should be. Again, that is contained in the amendments. One thing worries me about the Government’s amendments. There is a constraint on the independence of the monitor, which is serious. The rail regulator is totally independent. He cannot be sacked except under extreme circumstances that we do not need to go into. But in Amendment 43 on general duties that the monitor should act under, the Government say that the principles are that:
“(b) regulatory activities should be targeted only at cases in which action is needed”.
Who decides when that takes place? Who decides which actions are needed? Surely it must be the regulator who decides. If that is the case, then proposed new subparagraph (b) in Amendment 43 is superfluous. If it is the Government, I suggest that they would be interfering in the independence of the regulator.
In Amendment 48, the guidance that the monitor would receive in proposed new subsection (2) includes:
“The Secretary of State and the Treasury, acting jointly, must give the Office”,
of Rail Regulation,
“guidance as to the circumstances in which the payment of a fine under [this] section … should be required”.
Whereas the ORR can fine Network Rail whenever it likes if it has due cause, when it comes to the strategic highways authority it has to ask the Treasury’s permission first. That sends completely the wrong message. It would be good if the Minister could agree to look at those two things and the general safety outline as to how it will be implemented under the Health and Safety at Work etc. Act as part of the discussions between now and Third Reading.
Lord Jenkin of Roding
My Lords, I have listened to the argument with interest and some incredulity. Seeking to compare the number of deaths on the railways with the number of deaths on the roads ignores major differences between the two forms of transport. The roads are essentially a matter for individual drivers and many accidents and deaths are caused by serious driver error. It can be because the vehicles have not been properly inspected. Older vehicles always have to have annual road testing. Of course, there are many other causes, such as the terrible bonfire that swept smoke right across the motorway and caused serious accidents. But none of those can conceivably be laid at the door of the highways authority.
The design of the roads, signposting, warning signs and a whole range of things are the responsibility of the highways authority and would be the responsibility of the strategic road company, but a great many of the issues for which the strategic highways authority would be made directly responsible—the noble Lord, Lord Whitty, talked about legal liability—cannot conceivably be laid at the door of that authority. The language that he has used in his various amendments simply does not draw the distinction between issues that are clearly the responsibility of other authorities, notably the whole question of licensing, inspection and testing of vehicles and the question of skills of drivers and so forth. I do not see how the highways authority could be made responsible for all that.
I studied the noble Lord’s amendment and listened to his eloquent speech in which he made it clear that he has a very real interest, although non-pecuniary, in road safety, but it is overstepping the mark to try to lay the liability for that sort of thing at the doors of the strategic highways authority. I will listen to what my noble friend says having studied her amendments on this issue with interest. For the moment, I am not persuaded on this occasion by the noble Lord, Lord Whitty.
Lord Berkeley
“Formation of route strategies: consultation and co-operation1AA (1) The strategic highways company shall produce route strategies for all highways under its control (“specified highways”) and shall ensure such strategies remain up to date.
(2) In deciding how to divide up specified highways into route strategies, the strategic highways company shall have due regard to local government boundaries and travel to work areas.
(3) Route strategies shall consider—
(a) other transport modes, including railways and port facilities, that are served by specified highways or run parallel to them;(b) the interaction between specified highways and other highways;(c) opportunities to secure the expeditious movement of people and freight;(d) opportunities to reduce environmental impacts.(4) The strategic highways company must—
(a) carry out such consultation, and arrange for such publicity, as the strategic highways company thinks appropriate in relation to a route strategy;(b) consult such persons, and such descriptions of persons, as may be prescribed;(c) have regard to the responses to the consultation and publicity in deciding whether to proceed with a route strategy.(5) In setting or varying a roads investment strategy, the Secretary of State shall have due regard to route strategies.
(6) The Secretary of State may make regulations about route strategies.”
Lord Berkeley
I speak briefly on this amendment. We are in Schedule 2, Part 1 now. It suggests that there need to be route strategies before the Secretary of State can really put forward investment strategies. We have discussed this before—in route strategies it seeks to ensure full consultation. The Minister has been very forthright in her commitment to consultation, which of course I welcome very much. It is, however, another way of saying how important it is, when one is considering route strategies, to look at all different modes, including not only the local government travel to work areas, how to move people around and ensure consultation.
The proposal is a very useful precursor to an investment strategy, and I hope it will give the impression outside, as it is designed to, that transport, surface transport, road, rail and other means of transport are being looked at in the round rather than just having an investment strategy in which we are investing in roads willy-nilly. I beg to move.
Baroness Kramer
My Lords, I will speak briefly to the amendment. We recognise that what the noble Lord is seeking to do is to remove some ambiguity, but we are not comfortable with his amendment because we think it would prevent the company from adapting the route strategy process to meet changing needs and circumstances. That would make it somewhat undesirable. We recognise what is driving this. It seems that it is being driven by a desire for greater clarity, so I am happy to commit to him to include a requirement in the final version of the statutory directions and guidance along the lines that the company will agree the process with the Secretary of State and publish it. That should provide the combination we are seeking, both of clarity and of flexibility. I hope that on that basis the noble Lord will feel able to withdraw the amendment.
Lord Berkeley
I am grateful to the Minister for that short reply. I shall read it with interest, but it sounds good. On that basis, I beg leave to withdraw the amendment.
Lord Berkeley
My Lords, I will speak to one or two of the other amendments in the group, and hope that the Minister will be able to respond under the slightly odd arrangement we have.
In Clause 8, on my Amendment 33A, the Government have moved a long way in changing the name and activities of the Rail Passengers Council. The point of the amendment is to emphasise the need for them to consider not just the users of the network, but also those who do not currently use it or who cross over the network. In other words, they must look at the people who are not using it, at the potential for modal shift and at reducing the need for travel. They must look at the thing in the round before they come up with their excellent data, which I am sure they will do on the roads as they currently do for railways and, of course, buses.
Moving quickly, I raised a question about Amendment 48 in a previous grouping—I got it wrong—and the Secretary of State giving the Office of the Rail Regulator guidance as to the circumstances in which payments were defined. I hear what the Minister said. My question is whether that is the same guidance and instruction that the ORR currently has with the railways. If not, why not?
Lord Davies of Oldham
My Lords, I speak to Amendment 33, which asks the watchdog to look after the interests of cyclists and pedestrians. As we know, and as the department has recognised, a strategic road network can often be a barrier for pedestrians and cyclists. That means that there are many potential users of the network who may wish to use it to cycle to work but currently cannot.
The legislation would not allow Passenger Focus to consider their views. The chief executive, Anthony Smith, has been quoted as making clear his view that, given the legislation, Passenger Focus could focus only on actual users of the strategic network along with, perhaps, a second tier of fleet managers marshalling its use. While he quite understood the concerns around the remit, any change must be a matter for government and the legislative process. This is therefore our chance to effect that change, against a background in which the Government continue to respond to the increasing pressure for the use of cycles by saying that they are very much in favour of such growth.
Of course, the greatest deterrent to cycle use in our towns and cities and on connecting roads of any significance is danger. Because we do not set out to protect cyclists adequately, our present figures are dreadful in comparison to many other European countries. In the UK, 2% of journeys are made by bike, compared with 10% in Austria, 19% in Denmark and 27% in the Netherlands. Some 22% of all journeys in the UK are of less than a mile, but a fifth of these are in a car. Some people are, of course, obliged to use a car for a journey of less than a mile. However, the great deterrent to using the far more efficient and effective cycle is that people consider cycling to be dangerous.
The Government promised to support cycling but, of course, Cycling England, the pressure group for cyclists, was shut down; the body which co-ordinated policy and action on cycling, which had a £60 million annual budget, was shut down; and the Government also abandoned the cycling towns and cities initiative which we, as the previous Administration, had initiated—and it was delivering results. The proportion of people cycling at least once a month in England dropped from 15.3% to 14.7% in the year to October 2013. No one is going to say that that is a dramatic drop, but it is movement in the wrong direction when there are calls on all sides, to which the Government subscribe, for cycling to be encouraged. There was a decline in all regions in the United Kingdom.
I am therefore seeking with this amendment for the Government, who alone can take the legislative initiative on this—that is quite clear—to give a voice to cyclists and pedestrians, and to ensure that we make some progress on the aim of improving the use of cycling, and even walking over short distances. In order to achieve that, certainly with cycling, we must overcome the anxiety of the public that cycling on so many of our roads is just not safe enough.
Infrastructure Bill [HL]
Lord Berkeley Excerpts(9 years, 8 months ago)
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Lord Berkeley
“Part 4ALevel crossingsLevel crossing bill
Within 12 months of the day on which this Act is passed, Her Majesty’s Government shall introduce into Parliament a bill to give effect to the recommendations of the Law Commission and the Scottish Law Commission on level crossings (Cm 8711), and which is substantially based on the draft Level Crossings Bill prepared by the Law Commission and the Scottish Law Commission.”
Lord Berkeley (Lab)
My Lords, I will also speak to Amendment 100. These amendments are nothing to do with fracking. They take us back to infrastructure of the road and rail sort. This amendment came about because, quite conveniently, the Law Commissions did a study on the legal situation of level crossings. I believe they took about seven years to do that, so they must have done it extremely thoroughly. They produced an excellent report about this time last year which made a number of recommendations and, very helpfully, included a draft Bill to implement them.
The purpose of it all was because, as we will see, some of this legislation goes back to the first railway. Some 150 years or so ago, there were of course no internal combustion engines and if there were level crossings they were probably to take horses and carts across. It is very different now when in some places, as noble Lords will know, the pressure on level crossings for access is pretty extreme whether it is from the railways or the roads, and particularly in urban areas. When the railways want to run more trains, they find that they cannot because people complain too much that the gates are shut too often and vice versa. Obviously, the solution is to build a bridge or tunnel but that does not really go down very well in urban areas either.
This report by the Law Commissions really deserves some detailed consideration. I tabled these amendments in July and the Government had not responded so I was tempted to try to get a response by tabling the Law Commissions’ draft, which was about 50 pages long. The noble Baroness was quite pleased when I withdrew from that. However, it has resulted—we can debate whether it is a result or a coincidence—in the noble Baroness kindly sending to me and colleagues the government response to this report, and putting a copy in the Library. It is an excellent response, so my purpose in moving this amendment now is to see whether we can press the Government a bit more for a timetable and to discuss one or two of the issues on which I think they might not agree with the Law Commissions.
One issue which covers the whole thing is whether level crossings should be subject to the Health and Safety at Work etc. Act, as most similar activities are. It may come up on Report when we start talking about the strategic road company, which the Minister kindly gave some of us a briefing on yesterday, and the comparison of safety relationships between road and rail. But on level crossings, the Government have moved a good way in accepting many of the recommendations to make the thing simpler. I do not know how many of the Committee have managed to read these 28 pages overnight but perhaps I could mention a couple of issues. If your Lordships have not, it does not really matter.
For me, if the Government went ahead with their recommendations it would be 90% good and I hope that they will. They are quite right to query again how much this should apply to heritage railways, especially when there are volunteers. That needs taking with a bit of a pinch of salt because dealing with a level crossing on a 100 miles per hour railway is not the same as dealing with one on a 25 miles per hour railway, so they have done well to question that. I mentioned the Health and Safety at Work etc. Act; we could go through that again.
It is a good idea to get rid of all this old legislation. I am told that there are 800 Acts applying to level crossings. Network Rail has to deal with all these things and if we started talking about how much all these changes might cost, I get the impression from Network Rail that a lot of money would be saved—especially on lawyers, which is always a good thing. On whether the Office of Rail Regulation should introduce codes of practice, I think that it should but it is not really the end of the world if it does not. But on the regulations, I worry about what happens when it comes to consultation between road users, planners, highways authorities and rail people, and whether the Government have got it quite right as to who has the last word on how discussions will take place as to who gets priority. That needs a lot more consultation but it is still in the report. As I said, the legislation goes back to 1839. I shall not read out all the different bits of legislation because it will take too long but this certainly needs further work.
The closures need to be made simpler. Network Rail has told me that it costs a great deal of money, time and effort to get closures. Some people will debate whether Network Rail should be allowed to make closures, but when you look at the railway safety statistics, level crossing accidents come very high up the list of causes of accidents—leaving suicides aside, which are slightly different. As we try to make our railways more efficient, run faster and more frequently, we need to look at protecting the public by making some of these closures. I hope that the Minister will accept that they can go ahead. I am not going to go through any more, particularly the Scottish ones. We can possibly leave those to the Scottish Parliament if we get some devolution, which is another issue.
In her covering letter, which is very helpful, the Minister said:
“I have … asked officials to develop, as a matter of urgency and no later than the end of 2014, an action plan which will outline where we believe further work is required and how this will be taken forward”.
That is very good and I welcome it, but there are always two sides to these things. Perhaps the Minister can answer either tonight or in a letter how many of these changes actually need legislation—primary legislation, secondary legislation or none at all? The Law Commissions proposed one great big Bill but it does not have to be done that way. I worry after the next election. Which Government would want to bring in a level crossing Bill in their first session? They would not because they would have other priorities.
Therefore a timetable would be good, showing what could and could not be done. We could then start a process of discussion about some of the issues in this government response, which would be very helpful. It really is important. It will save Network Rail a great deal of money and it will help avoid some of the disputes that take place between road and rail users and their operators. Everyone must agree that we should get rid of legislation going back to 1830-something. Now is the time to do it. With that quick introduction, I beg to move.
Lord Hodgson of Astley Abbotts (Con)
My Lords, I support the noble Lord, Lord Berkeley, and in particular his request for the Minister to consider a timetable. I will not pretend that I have the knowledge of the railways that he has, but I have worked with the Law Commission on a number of its proposals and Bills. It is punctilious about avoiding political controversy and exceptionally thorough in its consultation; as the noble Lord pointed out it has been involved in this in the seven years of consultation. It therefore does an exceptionally valuable job in updating, tidying up and spring cleaning our legislation.
There is, however, a danger attached to that, which is that the Law Commission regards legislation proposals that it has brought forward that have not been implemented within a certain period as needing to go back for further consultation because it needs to make sure that the public mood and the facts have not moved on. I support the noble Lord, Lord Berkeley, in this because I hope my noble friend will realise that if this matter is left on the shelf, the Law Commission will say that it is no longer fit for purpose and will need to start consultation all over again to see what has happened in the intervening period since the last consultation was carried out.
I support what the noble Lord is suggesting and I hope that my noble friend will be able to act as Dyno-Rod for departmental inertia to make sure that it is brought forward quickly to avoid having to go round the whole course again.
The Minister of State, Department for Transport (Baroness Kramer) (LD)
My Lords, I am very grateful to the noble Lord, Lord Berkeley, for raising this issue. I know that he speaks also for the noble Lord, Lord Bradshaw, who has had to leave. I welcome the opportunity to discuss this matter. It is an area in which the Committee rightly takes a very keen interest.
As we all know, the UK has the best level crossing safety record in Europe. We want to ensure that it is maintained and, of course, to see that it is improved. We are absolutely not complacent about level crossing safety. The noble Lord, Lord Davies, rightly pointed out that, as we run more trains and operate many of our lines at full capacity, the issue becomes more acute. He mentioned that the relevant cost fell on Network Rail. I can understand why people say that other road users should pay for the provision we are discussing. I do not want to fight over who is going to pay. When it comes to taking a decision on a closure, we need to move forward in an accelerated fashion. Therefore, I will accept a little injustice in order to make sure that we are really efficient when we need to be. I do not think that is what is inhibiting the system although I take the point that the noble Lord makes.
This amendment is about the law surrounding level crossings. At present, the legislative framework surrounding the management and operation of level crossings is, frankly, antiquated and complex. I have been passed a note informing me that 10,000 Acts apply to level crossings. I did not even know that we had 10,000 Acts. That is the most extraordinary figure and it says it all. Indeed, that complexity is the reason why we, or, rather, the Government of the day, requested the Law Commission and the Scottish Law Commission to undertake a review in 2007. The review was initiated in 2008. I take this opportunity to place on record my thanks to the Law Commissions for the tremendous amount of hard work which has gone into developing their report, and recommendations which were published in September 2013. The examination of 10,000 Acts is demanding work.
The Committee will appreciate that this is a highly complex area which touches on a wide range of issues including railways, highways, health and safety, planning, land and criminal law. The Law Commissions’ 86 recommendations represent the culmination of five years of investigation. Following legal and policy analysis, the Department for Transport has published its response. I apologise that noble Lords have not had a little more time to read it. I suspect that the noble Lord, Lord Berkeley, was always going to be the most dedicated reader and I congratulate him on going through it. The response indicates which of those 86 recommendations we intend to accept, reject or implement in a modified format.
We accept the case for reform which the Law Commissions have presented and have accepted the majority of their recommendations. However, in some key areas—for example, closures and the application of the Health and Safety at Work etc. Act, as the noble Lord, Lord Berkeley, mentioned—the Department for Transport’s response indicates that we believe we need additional policy and legal consideration. This arises very much as a result of talking to the industry. The Committee will understand that some level crossings are site specific and that that creates additional complexity. However, we believe that we have to pursue these issues because in some cases there may be alternative proposals that work rather better.
On closures, the department needs to be convinced that the process recommended by the Law Commissions would shorten timescales and cut costs, which it is meant to do. We need convincing that that is what it would do. Stakeholders from both road and rail have voiced concerns about the possible implications and have pointed out to us areas where there is lack of clarity. We need to explore those further.
I very much understand that this is a probing amendment but I am told by those who understand procedure that it is a real oddity to put in a piece of legislation a clause which would legally commit a future Government to introduce a complete Bill. Although I know that is not the purpose of the amendment, technically there is an issue there. I should also draw the Committee’s attention to the fact that the Law Commissions’ recommendations contain significant devolution elements which we must and will discuss further and reach agreement on with the Scottish and Welsh Governments before implementation could proceed. As I said, we are also aware of stakeholder concerns about some of the recommendations. They must be addressed because this is highly practical, operational stuff and we have to get it right.
We want to move quickly, but we recognise that there is work to be done, and we are trying not to set ourselves an artificial deadline. However, I am very concerned that this does not get kicked into the long grass—as, I suspect, are all of your Lordships who have spoken.
We have said that we will come forward with an action plan. We will produce it by the end of 2014. It will be an outline of where we think further work is required and how it can be taken forward as a priority. I point out that that action plan will address some of the specific issues raised. The noble Lord, Lord Berkeley, asked whether most of this requires legislation. Unfortunately, it does, but we will look for those areas where we do not need legislation, because that will give us a little flexibility. There are also additional complications that flow from our need to get the Law Commission to consider whether it can simplify some of its recommendations. The action plan will cover that issue as well.
I hope that the noble Lord, Lord Berkeley can agree that this is the best way forward; I hope that he will feel comfortable to withdraw his amendment, because it seems to me that we are all pretty much on the same page on this important issue.
Lord Berkeley
I am very grateful to the Minister for a comprehensive reply. It was a probing amendment, and one would not want the text to commit a future Government. She has outlined many of the challenges. I am sorry that I got the number of Bills wrong by a factor of about 12, which is pretty bad. If we can have a timetable, with all these issues addressed and listed, including issues relating to Scotland, Wales, the EU and whatever, that would be extremely helpful. If the noble Baroness can get the agreement of Network Rail and, we hope, all the train operators and everyone else, that is a major step forward. I again thank the Minister and the Law Commission, because it has got the issue on the agenda. Let us hope that we can see it driven to a conclusion in less than the seven years that it has taken to produce its report. On that note, I beg leave to withdraw the amendment.
Lord Berkeley
My Lords, I support this amendment. When I read it I thought that it was a breath of fresh air, which, from my small experience of some of these regulatory bodies, is very necessary and probably should have come earlier. The noble Lord, Lord Jenkin of Roding, talked about the importance of competition, which we discussed under the Energy Bill. An awful lot of the regulators, which he rightfully lists, under Section 7, are by definition monopolies, because that is the way they are.
I certainly believe that monopolies are generally inefficient because they are not subject to competition. One role of the regulators should be to make them more efficient and make sure that they reduce their costs as much possible and increase their efficiency. On the rail side, the Office of Rail Regulation has a duty to look at Network Rail’s costs and to make a decision on whether it is efficient. If it is not, the ORR has a duty to reduce its requirement and to reduce its costs while not affecting the efficiency of the operation. As I said in a recent speech in your Lordships’ House, the ORR has already reduced Network Rail’s costs by about 40% in 10 years. It is rightly intent to continue that trend with another 20% or 25%.
That is designed to make sure that the company is efficient and that, therefore, the customers, who largely are the train operators, get the services at the least cost and look after the interests of the customers. The other thing that the regulator has to do is make sure that the company is properly financed so that it can deliver on its objectives.
Vehicles: Heavy Goods Vehicles
Lord Berkeley Excerpts(9 years, 11 months ago)
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Lord Berkeley
To ask Her Majesty’s Government whether they have plans to strengthen the enforcement of drivers’ hours and construction and use regulations with respect to heavy goods vehicles.
The Minister of State, Department for Transport (Baroness Kramer) (LD)
My Lords, the Government have plans to strengthen enforcement, including: continued targeting; introducing four new purpose-built Driver and Vehicle Standards Agency check sites; using the joint DVSA and police HGV task force in London set up last year; and a fixed-site automatic number-plate recognition camera network. We are consulting about proposals to use financial penalty deposits for historical drivers’ hours offences, developing plans for some specialised vehicles, and working to get more serial offenders to traffic commissioner inquiries more quickly.
Lord Berkeley (Lab)
I am grateful to the noble Baroness for that comprehensive Answer. I would like to know when some of these things are going to happen, but they sound really good. My reason for asking was that I recently met an HGV driver who had driven on trade plates from the south of England to Edinburgh, and then back to the south of England and back to Edinburgh, within 24 hours. I hope that these regulations will stop that kind of thing. Will the Minister confirm exactly how it could be stopped in the future?
Baroness Kramer
My Lords, the noble Lord raises an important issue about trade plates. Vehicles which have not yet been put into service are exempt from the EU drivers’ hours rules and so do not need to use a tachometer. However, drivers of these vehicles would need to comply with the GB domestic drivers’ hours rules, which restrict driving to 10 hours a day with a duty limit of 11 hours a day. Obviously, for enforcement, without the tachometer we are very much dependent on intelligence. I have passed the noble Lord’s information back to the various authorities to pursue. Intelligence is an important part of enforcement here. We also rely heavily on whistleblowers. Drivers are encouraged to report any breaches of these rules to the DVSA on its helpline, which is 0300 123 9000. All calls will be treated in confidence and driver anonymity is ensured. I will confirm to the noble Lord the various processes that follow on from the receipt of that information.
Infrastructure Bill [HL]
Lord Berkeley Excerpts(9 years, 11 months ago)
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Lord Davies of Oldham (Lab)
My Lords, Amendment 32 is designed to probe two issues: the motivation behind the move to a strategic highways company and the extent to which the Minister will be able to affect its day-to-day operations. We are concerned about the cost implications of putting the Highways Agency at arm’s length because doing so could result in significantly increased managerial pay. In fact, there have been comments by informed individuals to suggest that that is certainly one of the attractions of the proposal. It will free the company from the constraints of Civil Service pay. We are also concerned about the issue of additional VAT payments. At present, considerable sums are returned on the basis of the role played by the Highways Agency, but as a company, of course, it will not receive such concessions and will have to meet its VAT obligations in full. We are concerned about fines because we are not at all sure about how any fines would be levied, and on whom. We are concerned about poor value cyclical investments, and we are concerned about the reduced flexibility of the Government in the area of spending in the future.
We recognise that the point of this attempt at improving the infrastructure basis of the Department for Transport as far as roads are concerned is about guaranteeing that certain sums will be spent in the future so that infrastructure projects which clearly need a long time-line of assured expense will have that guarantee. However, we also need some assurance from the Minister that the absolutely critical issue of ensuring that the necessary flexibility, either when situations change or the perspective of Ministers alters, is available. According to the transparency page on the Highways Agency website, at present the top five jobholders all make significantly more than £100,000 a year. One would have thought that in the context of pay in the public service and the other advantages of being in the public sector—the oft-quoted security of pensions, although that is becoming less advantageous as time goes by; job security, although by heavens one cannot talk to many civil servants and get the impression that they feel they enjoy job security—people on salaries of over £100,000 could be expected to discharge a significant area of responsibility. Let us consider whether the pay at the top of the strategic highways company will be boosted by any additional income streams. The Government have quite clearly indicated that these proposals have nothing to do with a long-term perspective on road pricing; we had that discussion at the end of our sitting last week. However, if there are no additional income streams, the taxpayer will be paying those potentially increased wages of the staff.
The impact assessment lists pay and remuneration under the heading “Institutional constraints under central controls”. I want to know what central controls those are, or yet again is a model being followed that we know all too well, in fair weather and in foul, of creating a non-governmental body and seeing its salaries inflate so that they match the private sector, which can always be relied upon to have a significant differential between the top few and the very many who do a great deal of the work and are responsible to them? Is that what we are going to see again prior to privatisation? I beg to move.
Lord Berkeley (Lab)
My Lords, I support my noble friends on this amendment. It may well be that in her reply the Minister will refer to more than one of the five documents that she referred to in last week’s Committee sitting and kindly e-mailed to us the next day. I have now read them but they do not tell me a lot about the questions that we were asking. I hope that before we get to Report we will have the detail—I think that the Minister suggested that more would be forthcoming—of the relationship between a strategy, if there is to be one, a licence for this company, directions and guidance, articles, duties, governance and things such as that. However, in the case of this amendment, who is going to decide how much the staff of the new company are paid unless it is the Secretary of State?
As my noble friend said, it is beginning to look as though the only reason for making this change is so that the staff can be paid more than they are at the moment. It may be that the people who proposed this looked longingly at the remuneration and bonuses received by the senior staff at Network Rail in recent years without seeing that that is changing quite dramatically to a lower figure. Of course, once Network Rail is fully owned by the state, it may change even further. It would be interesting to hear how we are going to know who is in charge of remuneration, management, financial arrangements and staffing if it is not the Secretary of State. Therefore, I think that this is a very good amendment and I fully support it.
Lord Jenkin of Roding (Con)
My Lords, I take this opportunity to thank my noble friend and her private office for the help that we were given after last week’s sitting with the supply of the documents to which she had referred and to which the noble Lord, Lord Berkeley, has also just referred. I am very grateful. I, too, have read them, and the draft licence in particular, with all the caveats surrounding it, which I totally understand, is a very helpful indication. It might have been helpful if I had known about it when we were discussing the purposes of setting up this body and what its objectives would be.
I would have expected a remuneration committee to be the sort of thing to be covered by the articles of association. Indeed, the paper that the Minister has circulated, entitled Strategic Highways Company: Approach to the Articles of Association, makes reference to the,
“Model Articles for a company limited by shares”.
Of course, this company cannot be the same as that because, in a sense, it is rather different with all the shares owned by the Secretary of State. However, I would have expected the whole question of a remuneration committee to be covered by the articles when they are finally drawn up and issued.
It is absolutely within the powers of a board of directors to decide how that is going to operate, but I think that it is not unreasonable that the Secretary of State should keep a very close eye on this issue. Some of the remuneration that has been paid—not only in the private sector, as the noble Lord, Lord Davies, implied, but sometimes also in the public sector—has been a bit absurd and given rise to a good deal of criticism and uneasiness. I should have expected the Secretary of State to want to keep a close eye on what the company is doing. As I understand it, it will primarily be for the articles of association to spell out this sort of thing, and I would be most grateful if my noble friend would be willing to confirm that.
Lord Whitty
My Lords, I agree with much of what the noble Lord, Lord Bradshaw, has said, but of course the problem with the Bill is that under the Government’s current proposals the Office of Rail Regulation—perhaps with a better name—will be not a regulator but simply a monitor. There is no equivalence between the ORR’s relationship to the railways and what is currently proposed. We will come to one of my amendments later on that would allow some degree of regulation of quality, standards, the performance of the road network and road safety. At the moment, though, that is not what the Government envisage, and I would hope that the Minister would explain why. As the noble Lord has indicated, equivalence in our strategic network would appear to be common sense.
Lord Berkeley
My Lords, I also support these amendments. It is very difficult to see how the Secretary of State can fine himself, which is effectively what will be happening. As we know, that actually would not happen because long before it got to that stage—not that we know how it will get there, because that appears in Clause 5(2) and we have not seen the documents yet—the people running the SHC will get the sack, they will be told to change their policy in order that they comply with the road investment strategy or they will comply with the directions and guidance. So to some extent I think that this clause is a complete waste of time, although it would be nice to see what the Secretary of State said about the circumstances that may require the payment of a fine.
I agree with the noble Lord, Lord Bradshaw, and my noble friend Lord Whitty that we need to debate in more detail why this is not done by an independent regulator. Independence is the answer, and the independent rail regulator has the trust of the industry and, I think, of government; I am not sure about the other regulators, but we are talking about the ORR today. If it had those powers and it could use them, everybody would feel very happy that it had looked at the expenditure, efficiency, safety and everything else to do with the highways and come to an independent conclusion.
Baroness Kramer
I thank your Lordships. I want to make clear that the Office of Rail Regulation in its role as a highways monitor would advise the Secretary of State on these issues. Perhaps it would be helpful if I took your Lordships through the thought process that took us to the current arrangement of enforcement, because we recognise that there are different ways to approach enforcement.
In looking at the system of fines we followed quite a usual practice, which is to keep the setting of performance standards and objectives together with the enforcement of that performance regime. That tends to be the line most experts in this field would recommend, because it means the enforcer, having been involved in setting those standards, has confidence that the regime as a whole is fair and that enforcement is justified. It is quite difficult for a body that is not setting those standards to then enforce them. Given that the company’s funding will come from the Secretary of State, it seemed to us right that he should be the one to set the performance expectations for the company and consequently to enforce them, following the general principle that I just described. That is the role that we have set in place here.
There have been other views. For example, I note that the report of the Transport Select Committee in the other place recommended giving greater powers to the monitor, closer to the functions discharged by a regulator. It is quite clear, as we have discussed before, that the role that the ORR would play with regard to the SHC is, by definition, different from its role in rail. For example, it is clear that there are no passengers who are paying fares, as there are with rail; there is no equivalency with the roads that would be under the responsibility of the SHC. There is no competitive arrangement between the various operators. For example, there is not the relationship that exists between Network Rail and the operators, which obviously has its tensions. We looked at it as rather a different role, and that is why we came up with the structure that we have here.
I agree with the comments that have been made on fines. Any fines that are paid by the SHC—I hope that it would not get to the point of paying fines, but it happens—will come out of the money that the company can spend on improving the road network. We have always assumed that the fines would be much more reputational in nature, rather than a heavy punishment. They are much more aimed at signalling poor performance, rather than transferring large sums of money out of the company. Obviously we want constant improvements in the road network.
The noble Lord, Lord Bradshaw, asked again about changing the title to be used from the Office of Rail Regulation to the office of transport regulation. I think that we have said that one of the interesting things about the role that the ORR will have—a role in relationship to rail and a role in relationship to road—is that it may, over time, lead to more thought about how the various modes interrelate. However, at this point we do not think that we are at that stage. It will be interesting to see how this monitoring role evolves. We will need to see how the SHC carries out its work and how that process evolves, so there may be a point in the future when that name change is appropriate.
I also point out that there is nothing to prevent a name change. It is not provided for in the Bill because the body has an advisory role with regard to roads, but it is open to the ORR to use a different trading name if it so chooses. Therefore, if it wanted to call itself a transport regulator, it could choose that as a trading name.
Lord Berkeley
I am grateful to the noble Baroness. I want to go back to the performance criteria that she mentioned in relation to fines and things such as that. She mentioned that there was a reputational issue, and of course exactly the same would apply to Network Rail—a fine on it would be significant in terms of reputation. However, can she give the Committee any idea of the sort of criteria that would be used? Presumably, road closures for maintenance is one of them, but might they include happy cyclists, happy motorists or happy pedestrians, or something like that? Is she able to expand on any of the criteria either now or in a letter if necessary?
Baroness Kramer
What we are doing now is basically setting up implementation vehicles. That is the purpose of this language. The content of the road investment strategy will undoubtedly lead to performance criteria. It is very hard to set performance standards without that document in front of us, and obviously we hope to see it some time in the autumn. I think that we have to pass the hurdle of having a road investment strategy before we can sensibly ask a Secretary of State to set those standards.
I am being reminded that it is very likely that breaches of the licence conditions would be the kind of standards used by the Secretary of State. It is possible that he might set standards so that there is a penalty, for example, for the failure to control costs or to achieve delivery. Quite a range of performance standards might be selected but I think that we are rather too early in the process, without having the RIS, to put sensible names to them.
Lord Whitty
My Lords, I will be brief on this amendment because the main discussion of Passenger Focus is in the next group of amendments. My amendment is simply about the name. I prefer my formulation to that of my noble friends Lord Berkeley and Lord Judd, because my amendment makes it clear that it is actually the users—the consumers—of these services who are represented by the council. I think that that point is more ambiguous in the title they are proposing. We need a new name, so I commend my formulation and beg to move.
Lord Berkeley
I am going to confuse the Committee because my Amendment 42, which we will come on to shortly, suggests that the name should be the transport infrastructure and services council. However, after I tabled this amendment I had a discussion with the chief executive of the Rail Passengers’ Council, who said that a much better name than anything anyone has suggested before, including the Government, was the transport users’ council. I will just throw that into the ring and see what the Minister and other noble Lords think of it.
Lord Jenkin of Roding
It sounds a very good name. However, might there not be some confusion with another body with the same initials—the TUC?
Baroness Kramer
Perhaps I may just explain. We have had a number of conversations about the wider community who make up road users, and we have talked about the possibility of having lists. Such an approach would create problems because there are always additional thoughts about who should be included in the list. As noble Lords will see in Hansard, we started out with a discussion that covered obvious road users such as car drivers, pedestrians and cyclists. People have certainly come to me and said, “You’ve got to include Segways in it”, “We certainly need to include horse riders”, and, “What do you do about mobility scooters?”. Many potential issues arise once you start getting into list mode. What we have tried to do throughout this whole process is make it clear that we, and indeed the Passengers’ Council, have a very wide interpretation and intend to capture everyone who actually uses the road in one way or another. Just creating a detailed list gets us into more trouble than having just that broad understanding. That is why we have kept with this name.
As I said, there are ongoing discussions. Noble Lords have excellent ideas and are in frequent communication with the community. We would be very glad to share with the Passengers’ Council the names that have been proposed today to see whether it is inspired by them to identify what it thinks would be the most appropriate name for it to use. I do not think that we want to start making legislative changes at this stage, when there is so much flexibility provided for in the system we have.
Lord Berkeley
My Lords, the Bill refers to the Passengers’ Council, which is clearly wrong, and we have all come up with different suggestions about what it should be. However, as the Minister is in discussion with various groups and the department, will she commit to coming back on Report with a suggestion of what it should be? Otherwise, every time we get to this point we will have an argument and say, “Well, it is not the Passengers’ Council because it does not represent trucks”. If we could move this matter on, it would be very good for everybody.
Baroness Kramer
I should point out to the noble Lord, Lord Berkeley, that it is the Passengers’ Council today; that is its legal name. If we were to include a different name in the legislation now, it would not be clear to anybody which group of people it applied to. We are identifying the organisation. It might be appropriate for that organisation to make changes to either its name or its trading name to meet the new set of responsibilities that it will have. However, if I were to put in some other name today it would not be clear that it applied to the Passengers’ Council, a body for which everybody in your Lordships’ House has great respect.
Lord Berkeley
“(1) In all Acts and secondary legislation the Passengers’ Council is renamed the “Transport Infrastructure and Services Council”.
(2) In this section “relevant activities” mean, in relation to specific highways, activities to—
(a) protect and promote the interests of users of such highways,(b) protect and promote the interests of communities impacted upon by such highways, and(c) promote the need to reduce impacts of such highways on the natural and historic environment.(2A) In this section, consideration of users of highways shall include consideration of—
(a) potential users, who, in the absence of safe infrastructure or convenient services, do not currently use or cross over such highways, (b) the potential for modal shift to more sustainable modes of transport, and(c) the potential to reduce the need to travel, including by making more efficient use of vehicles, such as through better logistics, and through better land use and travel planning along such highways.(2B) The Transport Infrastructure and Services Council must carry out relevant activities in relation to highways for which a strategic highways company is the highway authority.
(2C) Those activities may include investigating, publishing reports or giving advice to the Secretary of State on—
(a) how a strategic highways company’s exercise of its functions or achievement of its objectives under a Road Investment Strategy is relevant to the interests listed in subsection (2A),(b) any other matters which the Council considers to be of use in relation to relevant activities.”
Lord Berkeley
My Lords, in moving Amendment 42, I shall also speak to some of the other amendments in this group. The intention of this group is to discuss in more detail the role of the watchdog, what it might do, who it might look after and some of its objectives. We discussed this in outline during Second Reading.
We should start with Amendment 51, because that defines who the users of this road network are. One of these days I shall start putting pedestrians first, then cyclists and then motor vehicles to make people realise it is not just for fast cars. However, as other noble Lords have mentioned, there are also horseriders and perhaps in the future Segway users and all kinds of things. The monitor—Passengers’ Council or whatever we call it—should look after the interests of all those.
As to Amendment 42, it would be useful to expand some of the relevant activities to take into account the needs of not only the users but the communities that are affected by roads, and also to put in this objective to reduce their impact. There is then the issue of looking into modal shift, which I make no apology for coming back to again. Reducing the need for travel is something very few Governments ever look at. They currently look separately at forecasts for road, for rail and for air. Cycling does not really come into it, and neither does the thought of looking into the possibility of modal shift and what would be needed for that to be achieved. The end of proposed new subsection (2A)(c) covers this with reference to,
“land use and travel planning along such highways”.
Passengers’ Council produces some excellent data and reports on transport trends in the railway industry. I am sure that it would do the same thing on highways if it gets the chance to do so. It would be nice to think that some of its reports could then be used by either the Office of Rail Regulation or the Secretary of State in looking at the performance of the companies and whether they get fined, as we debated earlier. Again, it would be much better if it were done by the ORR.
This watchdog has an enormously important role to play. The Minister has already indicated that its role would be completely different from those of the organisations looking after the interests of current users, such as the British Horse Society, the Freight Transport Association, the Road Haulage Association, the Cyclists Touring Club, the pedestrians’ association, the AA and the RAC. I have probably forgotten a few and the Minister will not want a list anyway. However, I would like her to confirm that these organisations will not see their roles changing very much. The passenger watchdog should produce something that is more strategic and detailed in its analysis while also looking at some of the wider benefits and disbenefits which I have tried to outline in the amendment. I beg to move.
Lord Judd
My Lords, I warmly support what my noble friend has said. I should say at the outset of our deliberations that I am sorry that I was not able to be here for the first meeting. I should also underline that I am a strong supporter of the CPRE and that I am involved in the capacity of honorary officer in a number of environmental agencies, not least those dealing with our national parks. All of that is relevant.
We should go back to the mainstream of the argument that we had on the previous amendment. The roads should serve the community. We are a closely knit island with a lot of complex interests to reconcile. Direct impacts and consequences can arise from a new piece of legislation which may quickly become unintended consequences. It is therefore terribly important to get right, at the beginning of a Bill, the approach and ground rules for any strategy that is to be established. An example is the realm of public health. We keep saying that we want more people to take up cycling and walking. It is perfectly clear to me that the role of any regulation in this sphere should be to ensure that not only are those objectives reconcilable with other policies in the public realm, but that they can be furthered.
But then there are all the people who do not use the roads because they are intimidated by and frightened of them. Their interests also need to be looked at very carefully. There are communities which have to contend with increased noise on roads arising from more feed-ins and feed-outs from strategic routes. We need to have some imagination and clarity of thinking right at this early stage about the wider social purposes which the regulator should be looking at in the fulfilment of the Government’s policy. At the moment, looking at the responsibilities of Government and quite apart from their aspirations as expressed for, as I have just said, public health, there is a conflict. We keep narrowing the scope down to, in effect, passengers and drivers, when the much wider community is involved. It is therefore sensible to make this clear at the outset in the tasks set out for regulation.
Lord Davies of Oldham
My Lords, I, too, have memories of motorways. The M25 went around the north of the constituency that I represented, in Enfield. The only tunnel constructed on the M25 was there, in order to protect the interests of my constituents. Subsequently there was an additional tunnel in order to protect a great deal of Epping Forest, which I also greatly supported. However, our negotiations and discussions were nothing to do with planning authorities; we had to deal with the Department of Transport and the excessive, terrifying costs of what is involved in tunnelling. That is why the M25 is a circular route 125 miles long but has only one tunnel, which is constructed as far as the immediate neighbourhood’s interests are concerned. It was nothing to do with planning; the Department of Transport had to answer.
Lord Berkeley
My Lords, I do not want to prolong this discussion for much longer, but some of us, in setting out a role for the Passengers’ Council, are trying to ensure that it produces the right data and looks at alternative options before the company goes ahead and develops new roads. With regard to the planning system, I do not believe that the Passengers’ Council should have a role at all, but I believe that it has a role in producing the data to justify—or not—what gets done and to look at alternatives.
Lord Whitty
My Lords, I have tabled two amendments but I want to comment briefly on what has been said. I find myself slightly between the noble Lord, Lord Jenkin, and my noble friend Lord Judd. As Roads Minister for three and a half years in the last days of Swampy, I know what the noble Lord, Lord Jenkin, is talking about. We have to separate out the planning process from the monitoring of the operational process. On the other hand, I agree with my noble friend Lord Judd that when we are talking about users of the road network, we are talking not only about the people who that day happen to be driving a car or a lorry on that network, but also about all the people who depend on that network or whose premises and lives are affected by it. We therefore need to interpret “road user” in the broadest possible sense. Without straying into the planning system, I think that some of what my noble friend said should be reflected in the Bill.
My two amendments deal with different issues. Amendment 47 refers to the setting up a complaints system. One of the most effective jobs of Passenger Focus in relation to rail, and latterly buses, has been in dealing with a complaints system. Its effort has pushed the responsibility for dealing with complaints back on the railway and bus companies. It is there to pick up what those companies failed to do in terms of complaints. Similarly, we have never had the equivalent system in relation to strategic roads. It is important that a complaints system is seen as one of the responsibilities of whatever we eventually call the Passengers’ Council.
My second amendment is a probing amendment, which I will not press. It relates to Clause 8(6), which refers to a relationship between the Passengers’ Council and local authority rights. It says that the new consumer body could have responsibility for matters relating to local authority roads if the local authority asks it to. That is a bit cock-eyed. Either we make it responsible for complaints about all local authority roads, which I do not really want to do, although my amendment would have that effect, or we leave it as the user body for the strategic road network, which would be tidier. After all, complaints about roads for which the local authority is responsible need to be dealt with largely within the local authority context. There is plenty of scope for complaints to local councils about local authority roads.
If some local authorities want the Passengers’ Council to be there for consumers but others do not, there will be confusion. My local road, the A30, in 10 miles goes through Wiltshire, Dorset and Somerset. If only one of those councils agrees that the Passengers’ Council should be the consumer body, we would have to pinpoint exactly where the complaint arose—over a traffic jam, police incident, or whatever—and we would end up with a patchwork of bodies. Some councils would say that the Passengers’ Council was responsible and would shove off all complaints to it, while others would continue to deal with the complaints in their highways departments. Subsection (6) extends the Passengers’ Council’s role into local authority roads, which may be a step too far. My amendment should probably have been worded differently, but I want to hear what the Minister says in her summing up.
Baroness Kramer
My understanding is that “Road User Focus” will be able to see right through to the complaints to see what they are and whether they are being appropriately handled. At the moment, complaints are not a large issue for the Highways Agency. Of all the letters sent to it last year—I do not have the total number, unfortunately—only 16 needed outside help in resolving them, which represented about 2% of the letters received. So it has a good complaints system in place and a good track record on resolution, and that will pass over to the new company. However, as I said, it is important that the watchdog should be able to see all the way through that process. I am sure that it will choose how it engages with that—it is not constrained by the language in Clause 8.
Lord Berkeley
My Lords, I wonder whether I may probe the Minister a bit more. With the railways, on most trains there is a notice in each coach that says that if you do not like what is going on and want to make a complaint, first, you contact the train operator and, if that does not work, you can go to the Rail Passengers’ Council. The users of the railway service read this every day and the Rail Passengers’ Council will pass a complaint on to Network Rail if that is appropriate. On the highways, you are sitting in your car or your truck or on your cycle and there are not the same opportunities for knowing whom to complain to. Therefore, to some extent, it is not surprising that the number of complaints is probably a great deal lower than it is for the railways, but the principle needs to be there, which is why the comments of my noble friend Lord Whitty are so important. If you do not get the right answer from the SHC or the passenger train operator, you need to have an independent body to appeal to who you know will guarantee to give you a decent answer within a reasonable time.
Baroness Kramer
I would say first to the noble Lord, Lord Judd, that the watchdog is just one part of the total family of entities here, which include the monitor, the Secretary of State and the SHC. It is therefore right that it should have a very specific role, which is to represent the road user. I have underscored over and again that it is not the car driver and the passenger but the whole body of people who we understand as making up “road users”. That is important. I rather object to lists because they tend to miss various categories of road user, which would be neither fair nor, frankly, right. That is why I prefer the broader term of “road user”, and I repeat that it is not meant to be confined to the driver and the passenger; it embraces a much broader group.
Secondly, we must make sure that the watchdog has a manageable job of work that it can do effectively. It is meant to be a voice for road users. If we give it a much wider breadth of responsibility for local communities and other kinds of objectives that we want to achieve, it will struggle to provide the voice that is needed to ensure that the road user is heard. I think we can say that historically many road users do not feel that they have had a voice, and they want to make sure that it is there for them in the future because that is appropriate.
Let us look at the equivalent on the rail side of transport. We do not ask Passenger Focus to explore the needs of communities through which our railways pass. The body is focused very much on the needs of the passenger, and that is why it delivers. I therefore disagree with the noble Lord, Lord Davies of Oldham. Passenger Focus is a highly respected body that is considered to be doing an incredibly good job and is very effective. We want to try to replicate that effectiveness over on the road side of transport.
The issues raised by the noble Lord, Lord Judd, about the relationship between roads and communities, as well as the issues raised by others about roads and the environment, are entirely legitimate and important, but they should be handled using strategies other than through the particular role of the watchdog. It is important to make sure that the road user defines the tasks of the watchdog. For those reasons, I resist this proposal.
Lord Berkeley
My Lords, I am grateful to all noble Lords who have taken part in this very interesting debate. We have covered a wide range of possible roles for the watchdog. I shall read what everyone has said and we may come back to this issue on Report. In the mean time, I beg leave to withdraw the amendment.
Lord Berkeley
“Network Rail.”
Lord Berkeley
My Lords, I shall speak also to Amendment 52A. This is to do with freedom of information. In Clause 8(8), I see that the Passengers’ Council is going to be subject to the Freedom of Information Act. I did not know whether or not it was at the moment but presumably it is not, otherwise that wording would not be there. I thought that it would be interesting to explore whether the infrastructure operators of rail and road would also be subject to FoI. Local authority roads must be subject to FoI at the moment because they are local authorities, as, I assume, is the Highways Agency, so it would be logical for the SHC to be in the same position. I believe that the Minister said that Network Rail would be subject to FoI after 1 September when it became fully owned by the Government. I personally think that it should be, for tidiness and transparency reasons, but it would be good to hear the Minister’s comments on this to see whether I have misunderstood anything. I beg to move.
Baroness Kramer
My Lords, I thank the noble Lord, Lord Berkeley. This is an opportunity to clarify some points on the subject of freedom of information. As he will know, on 17 December 2013 the ONS announced that under new EU statistical rules, which come into force on 1 September 2014, Network Rail will be reclassified to the public sector. The Department for Transport is working with Network Rail to decide on the details of how Network Rail will operate in the public sector. A framework agreement explaining these decisions will be published before 1 December—that is, well before the Report stage of the Bill.
The framework will address a number of issues, which are likely to include our intended approach to the Freedom of Information Act. It has been pointed out to me that there is a strong preference to announce the whole agreement rather than drip-feed announcements around individual measures, so all announcements associated with that will be part of a single package. As I say, they will come out on 1 September, so the Committee will know exactly what the position is on FoI before we come to Report. I confirm that the Passengers’ Council is not currently subject to the FoI Act, and we are correcting that by adding it to the Bill. The Office of Rail Regulation, however, has always been subject to the FoI Act. Following the publication of the framework agreement, which makes comments on this, if the Committee feels that its concerns have not been addressed then it may wish to return to this issue, but obviously there will be clarity around it before 1 September.
The strategic highways companies will be public authorities for the purposes of the Freedom of Information Act 2000 by virtue of being companies wholly owned by the Secretary of State. Public authorities are subject to the freedom of information duties under Section 1 of that Act. I argue that in the Government’s view the amendment is not needed, and I ask the noble Lord to withdraw it.
Lord Berkeley
I am grateful to the Minister for that helpful reply. With regard to Network Rail, I think that she said 1 September, rather than 1 December, is the date when the transfer will take place, if I understand it correctly. I am pleased with that clarification and beg leave to withdraw the amendment.
Lord Davies of Oldham
My Lords, I have amendments grouped with those of my noble friend Lord Whitty, and I agree with a great deal of what he has just said.
Amendment 54 is my chief amendment and is designed to ensure that the monitor focuses not simply on the financial cost of the strategic highways company’s activities—that is, the bill to the taxpayer for the SHC—but on its wider non-monetisation impacts such as landscape, biodiversity and social distribution. We need breadth to the monitor’s analysis of the performance of the company. The text is based on guidance in the Treasury Green Book on appraisal, so I am merely suggesting that where the Treasury thinks that the proper appraisal of an activity should include these features, I want them to be included when considering the SHC.
The other amendment in the group is a minor one about removing all exemptions in documents. We do not see why these powers should be restricted in the documents that are made available, but that is a relatively minor aspect. Amendment 54, however, is of considerable import.
Lord Berkeley
My Lords, I have tabled two amendments in this group, but I shall speak to the whole group because all the amendments consider the role of the monitor—the Office of Rail Regulation or whatever it may be. I get the feeling that Ministers are rejecting any comment that might enable the SHC, or the government policy that surrounds it, to climb out of its roads silo. There is probably a rail silo because that is the way the railways work. There is also clearly a road silo, so what these and several previous amendments are trying to achieve is the ability to look at cross-modal choice and to consider the issue of sustainability, which seems to be forgotten about for much of the time. The ORR would have the opportunity and the capability to look at the alternatives and it would be able to consider the costs, which of course it is meant to be monitoring.
Monitoring something is not quite the same as pushing for greater efficiencies, a point I made when speaking to a series of amendments that we considered last Thursday. What the ORR has achieved with Network Rail is a reduction in its costs by 60%. If the new construction and maintenance costs of the highways were to be reduced by 60% in a period of 10 years, either we would have quite a few more roads that were in better condition or the Treasury would be very happy—or both. It is an opportunity that will be missed unless the regulator is given more powers. That is the point of Amendment 57. The compromise would be that the ORR would report to the Secretary of State within three years with ideas on how it might do its job properly.
There are several other issues. My noble friend Lord Whitty mentioned safety. During a Question for Oral Answer earlier today a noble Lord talked about road safety and the issue of HGVs. Safety on the roads may have got better, but it is still disastrous compared with safety rates on the railways. It is not just about people being run over; it covers a multitude of different issues for which I believe the ORR could come up with some new ideas. I have separated out two amendments related to level crossings so that they will be considered later, though I am not sure when. However, level crossings are a major safety issue for the railways. There is really no reason that I can see for not putting all these together under one safety rule—based, in my book, on the Health and Safety at Work etc. Act. I know that that was being debated in the Deregulation Bill yesterday and some rather distressing issues were brought to the fore.
Safety is one thing but pollution is another. Recently we were told that the pollution measurements in Oxford Street are three times the EU limits. There would not be any harm if the ORR were able to look at that as well.
Finally, on funding, the Office of Rail Regulation is funded by the industry: 50% by Network Rail and 50% by the train operators. I cannot see why the ORR’s monitoring of road activities should not be funded partly by the company running the infrastructure and partly by the users. That would be a good balance. There is absolutely no reason why that should not happen except, I suppose, that Ministers would be frightened of the road lobby. However, there would be a consistency between road and rail, and there is an opportunity here for at least getting the funding for the ORR on a consistent basis between the two.
Baroness Kramer
My Lords, I thank your Lordships for a wide range of amendments that address the monitor at the Office of Rail Regulation. If I understand the comments that I have heard correctly, I think there is great respect for the body and the work it has done on rail; obviously, we intend that the same expertise and focus should now apply to the road infrastructure, the strategic highways company.
From the Government’s perspective, there is tremendous value to be had in subjecting the costs and performance of the new SHC to serious external scrutiny: that is what the monitor is meant to provide. At last week’s sitting, the noble Lord, Lord Whitty, mentioned some of the challenges that he faced in his time as a Transport Minister in keeping down the costs of road schemes, and the noble Lord, Lord Berkeley, has referred to the success, in which the ORR has played a part, in bringing down the cost of rail schemes. We recognise that this is an ongoing challenge that the Government have to face. Looking at what the SHC will do and comparing it against past performance or international benchmarks will be important. The monitor exists to provide that information. It has the power to require the company to provide data on its performance; it will have the capacity to maximise performance and see where the company has excelled and where it has fallen short; and the Secretary of State will be obliged to listen to what it says.
We are also absolutely determined to ensure that the monitor is a transparent organisation, so its advice will not be quiet, secret reports passed to the Secretary of State. We are clear that publication will be the norm for the work of the monitor. The public have a right to see what the monitor is saying about the performance of the company.
The questions today clearly go to how far the monitor’s role should extend. Before I go into the detail of specific amendments, let me address some points of principle. I see the obvious attraction to saying that in its work on roads, the ORR should match the role that it discharges on railways, but there are such fundamental differences between the two systems that I think that it is hard to continue that argument in depth. Regulation of the railway means regulating the track, the rolling stock and the operator. On roads, in effect, only the equivalent of the track will be covered. The monitor will not be regulating HGVs, cars or drivers, so those roles remain with the Secretary of State. It is as though it will have just one part of the range of tasks that the ORR has in dealing with the railway. On the railways, there are paying customers; on the roads, there are not. Yes, people pay vehicle duty and, obviously, fuel tax, but that money is direct to the Treasury; it is not a dedicated amount of money that goes through some direct channel to the SHC.
That means that the railways have a complex funding system that has to be orchestrated by an independent, impartial body. Roads are funded almost entirely by the Government out of general taxation. It seems almost impossible to apply the same system to roads and rail. If we did so, we would end up with a great deal of confusion rather than simplification and effectiveness.
Lord Berkeley
The Minister is absolutely right that there are differences, but a specific role of the ORR—its roles are specific; they do not quite have a barrier around them, but it is close to that—is to monitor the costs and efficiencies of Network Rail, which is the infrastructure manager, and then to fine it if it does not achieve its targets, as we heard last week. The ORR does things on capacity, too. When it comes to running the trains, passenger trains are run by the Department for Transport or are franchised out, while freight is independent, as we all know. However, when it comes to infrastructure, there are great similarities. There is the civil engineering of new build both on railways and on roads. On the railways, the ORR has a role of seeing whether the embankments stay up or the bridges fall down—one hopes that they do not. A similar thing could happen with the Highways Agency network. On the railways, the costs are to do with the quality of the track; on the roads, they could be to do with the quality of the road surface, which is just as important. There is also the question of the time during which infrastructure is closed for maintenance. Network Rail produces figures, which the regulator sometimes complains about. There are similar problems on some of the motorways when they are closed for maintenance. On the straight issue of infrastructure, therefore—if we leave out the train operations and everything else—I think that there are enormous similarities. I hope that the noble Baroness agrees with that.
Baroness Kramer
Clearly there are similarities, which is one reason why we turned to the ORR—it has a lot of expertise that it would be able to translate to the road side. However, I think that I have made it absolutely clear that the key benefit that the ORR will bring will be the ability to subject to real scrutiny the costs and the performance of the new company. That includes the asset management issues that the noble Lord has described. Its role will be to do that work and then to use it to advise the Secretary of State.
We are choosing that route because the Secretary of State remains at the heart of the system, as the Government are in effect providing all the funding. We think that that makes a fundamental difference in finding the appropriate structure. As I said in response to earlier amendments, those who have expertise in regulation consistently stress to us that the enforcement of a performance regime goes hand in hand with the ability to set that regime. That is a responsibility that we are putting on the Secretary of State, both because of the funding and because of the role that he plays in setting the road investment strategy. Since the policy and the RIS will be the Secretary of State’s and since he is providing the funding—pretty much wholly, in this case—we believe that this should be his decision. Therefore, the monitor doing all that work acts, in effect, in an advisory role. That will be a very effective arrangement.
Let me move on to some of the other issues that have been raised, such as whether the ORR should be promoting multimodal choice or increasing links with rail. I would argue that these areas should be part of the Secretary of State’s responsibility and I suspect that we will see them reflected in the RIS when it comes forward. It is at the government level that we are committed to developing a comprehensive transport policy that covers the whole range of issues that we have discussed today. The draft documents on the company’s governance, which we published on 23 June, and the licence condition make it clear that the company must abide by a continued commitment to deliver sustainable development, for example. Again, there is clear language on road safety and clear language on working with communities and local authorities. So the roles will work out in such a way that the Secretary of State develops the policy, and the role of the monitor is to assess the efficiency and performance of the company running the network. That revolves around judging delivery and capacity, principally by reference to the objectives to be achieved by the company, as set out in the RIS. The amendments propose a very different approach, whereby the monitor’s role involves much broader speculation on whether or not the company is following the right policy, whereas I would argue that it is the Government’s responsibility to determine the right policy.
We should give the Government the right to decide what balance of different transport measures is needed. At the very beginning of this debate, the noble Lord, Lord Davies of Oldham, expressed real concern that we would set up a system that would take away flexibility from future Governments, which would be unacceptable in a democratic society. This matter also reads into that issue. It is important for the Government to set transport policy, and I am somewhat concerned with the notion that it would transfer over to the Office of Rail Regulation. That responsibility is appropriately with the Government, and the Government are rightly accountable to Parliament for their decisions on issues such as prioritisation and allocating resources.
I want to strike a note of caution on the efforts of these amendments to link decision-making on roads with that on rail. Cross-modal integration is an important part of a successful transport network, and the thought periodically passes one’s mind that here is the ORR acting as a regulator for one transport mode and a monitor for the other, and whether this is not an opportunity to integrate them. However, there are fundamental differences. I come back to the point that rail has a full system of price regulation. If we think through the consequences of bringing the two closer together, we could end up with the ORR’s road advice having to account for rail but not vice versa. There would be a one-sided thought process on modal thinking. However, forcing the ORR to take account of road matters when making decisions on rail matters would fundamentally change decision-making in the rail regulation regime. We are committed to introducing the new role of the monitor without disrupting the ORR’s existing work. I think that noble Lords would agree that the rail structure is working well. To disrupt that and suddenly force plans such as CP4, CP5 and CP6 to be adjusted to deal with road issues would undermine a lot of the good work that we are trying to do here and, frankly, put all the ORR’s current activities in flux, including the price settlement. I do not think that it is anyone’s intention to make a disruptive change. However, I take on board the overall issue, which is that we need to integrate our transport thinking, but that should happen at the Secretary of State level rather than at the level of the monitor or regulator.
If we are considering increasing the enforcement powers of the monitor, as proposed by the amendment, we end up with many similar questions. The monitor has a valuable role to play in assessing the performance and efficiency of the new company. We expect that to mark a radical improvement in the transparency and accountability of the people running the strategic road network. However, this does not go so far as to give the monitor the responsibility for proposing changes to the legal regime around the company. Again, that is the responsibility of Parliament and the Secretary of State. It does not mean that the monitor cannot take a view on these issues, should it wish to do so, but formally making this a role of the monitor that is equal to that of advising on the RIS seems to go well beyond this point.
Looking at parts of Amendment 56, I should note that we think that the proposal to allow the Secretary of State to issue guidance to the ORR on road matters, mirroring the provisions in the rail sector, has value. At present, we expect the monitor and the Secretary of State to have a fairly detailed working relationship negotiated through other documents—not necessarily on the face of the Bill—which will set out what the monitor is expected to do in day-to-day terms and what is agreed to be a proportionate level of oversight for the new company. However, there are a lot of ways of doing this. It may be, in the light of developments to the Bill, that this is a more appropriate way to set out the relationship between the Secretary of State and the ORR. We will continue to look at that.
Lord Berkeley
My Lords, I also support my noble friend’s amendment. The situation is a classic case of restrictive practices or protectionism—whatever we would like to call it. I thought that this Government were against restrictive practices and protectionism—after all, they have several deregulation Bills—but, as ever, it seems that the Home Office is exempt.
During my Question on HGVs today, the Minister mentioned in reply the work being done in London between VOSA and the police to stop lorries that might be thought to be contravening some regulation or other. In fact, I was invited to witness one of these events a few weeks ago. They do it every day in different parts of London, and it works well; the number of vehicles that are stopped and the number of charges that the Minister told the House about are very impressive. However, there is one thing that has not happened. I said to the Metropolitan Police people and VOSA, “You’re doing all these things, but do you have one common database so that you can work out how to catch these people and do something with them?”. Very politely, the answer was, “Well, no we don’t, because the Met doesn’t allow it”.
The issue of whether the Met is above the law is a debate that we can have on a different day, but it is the same issue as the restrictive practice of saying, “Don’t set foot on my patch, otherwise—although I will not shoot you—I shall make sure that there is trouble”. Surely we should all be working on the same databases and sharing things. VOSA has made major progress here and it is about time that the Met caught up. If an amendment comes back on Report, either from the Minister or from my noble friend, it would be nice to think that a Home Office Minister could be here to answer on this issue and make a proposal.
Lord Davies of Oldham
My Lords, like the noble Lord, Lord Jenkin, I have heard my noble friend Lord Faulkner wax lyrical persuasively on this issue, and I have heard the noble Lord, Lord Bradshaw talk about it on many occasions. It is clear that the case stands—and stands mightily proud. We have had this argument long enough for a Government to see sense on this. All that I can say to the Minister at this moment of decision is that I shall be showing the utmost loyalty and commitment to my noble friend. The Minister has a noble friend on her side arguing the same case. I advise her to follow my example.
Lord Bradshaw
This is the last of the road amendments but it is not the least. There are great problems with our roads and the way that they are run. The amendment simply asks the Government to agree that within six months of the Bill being enacted, the Secretary of State commissions,
“a body to review the funding and condition of the road network”.
This body should consider four things, including,
“whether the heaviest users of the road network, in terms of wear and tear on the roads, congestion and pollution, should contribute a higher proportion than at present of the funding of the road network”.
We keep talking about the railway because that is in our minds at the moment, but people who travel at peak times have to pay higher fares than those who travel at off-peak times. The train operators who use congested parts of the network pay more, and it is time that a more rational way of paying for the road network was developed.
I am also asking that the methodology for calculating the axle weights of vehicles, used in calculating the rates of vehicle taxation should be changed, or re-examined, which might be better. The present methodology is based on experiments that took place in 1958 in America by the American state highways authorities. These experiments consisted of running a properly laden lorry, with a distributed load at 35 mph over perfectly level surfaces, and measuring the deterioration of those surfaces. The authorities came to the conclusion that it was reasonable to use the fourth-power function and the standard axle as a means of calculating load damage. Lorries do not go at 35 mph, they do not have perfectly distributed loads and the road network is not in perfect condition, as it was in 1958 when the Americans conducted the experiments. I suggest that it is perhaps time that we revisited this whole area and looked at the real position, not the theoretical position in the laboratory conditions in which experiments were conducted in America.
My third concern is whether the arrangements for the utilities, which dig up our roads to lay their pipes and cables, include them making an adequate financial contribution to the remaking of the road surface on completion of such street works. Is the remedial work of a suitable standard, and if not, how could those organisations make an appropriate financial contribution? I know that noble Lords will see, as I do, that outside their own homes the entire road is pockmarked by holes which have been dug by the cable companies, water companies, gas companies and so on. Most of the work is not properly finished and often the edges are not adequately sealed, allowing water to get in and break up the road surface, which is the primary cause of potholes. However, it is no good spending money on just filling up those potholes, the problem has to be attacked at its root cause.
My last issue is the question of the other part of the highways network that is not covered by this legislation. It is not in a satisfactory condition. The structural condition of the road is usually pretty terrible, and what is more, it is declining more and more rapidly.
Those are not issues that I expect the present Government to tackle, but they should be working on drawing up the terms of reference of a review that would look into how to address them. I have referred previously to why this is now urgent. The revenue from fuel tax will decline as cars and lorries become more efficient, which means that the Government will face a mountain of expenditure with a declining source of revenue. Moreover, very fuel-efficient cars are not eligible to pay much road tax. I have noticed since I acquired such a car that I am putting around a third of what I had been into the pot for the upkeep of our roads. That is a serious strategic problem and, while I am not expecting any answers, I am expecting some sympathy and a form of commitment that these issues will be taken in hand. I beg to move.
Lord Berkeley
My Lords, these are interesting amendments which, as the noble Lord, Lord Bradshaw, has said, cover a wide range of issues. It is definitely time to revisit the issue of damaged roads. Road vehicles are getting heavier and their tyre pressures are higher, but that may be balanced by improved suspension systems, making this a complicated calculation. Of course, higher speed incurs more damage to vehicles of all types. It is reasonable that vehicle excise duty, in the absence of any sort of road user charge, should reflect the different types of damage caused to roads as well as congestion and pollution. We need also to take into account something else which has come to the fore in the past few years. Worsening road surfaces are having a serious effect on cyclists. If the Government want more people to take up cycling, it must be safe for them to do so. A large pothole can cause a cyclist to fall off their bike and hurt themselves, and at night the potholes cannot be seen because they are so deep. It is a serious issue and now would be a very good time to address it.
On proposed new paragraphs (2)(c) and (d) in Amendment 64, we are where we are with the undertakers. I suspect that that is one reason why we do not do more with our roads. Constructing trams in cities is so expensive because the private sector undertakers take anybody to the cleaners if they want to build anything. I do not see an easy solution, except that they need to be kept up to the mark and ensure not only that the quality of the reinstatement is good but that the time it takes is kept short. Some emergency potholes and road works are there for weeks.
On new paragraph (d), damage to the roads in the past couple of winters probably reflects the same cause and effect as damage to the rail network: the weather has been very bad. The motorways mostly stayed open, as did the existing high-speed rail link because they have been designed and built in the past 50 years to cope with the current forecast weather conditions and using more modern drainage systems—slopes on cuttings and so on—which are appropriate. Most of the other roads and the classic railway system has suffered from being built 100 or 150 years ago. It is time to look at all that again, and it would be interesting to see the results. I hope that the Minister will look on the amendment with favour.
Baroness Parminter (LD)
I support the Minister looking closely at the amendment from my noble friend Lord Bradshaw for two reasons: first, because of the point he made that we need roads of good quality, whether you are the user of a car, a cyclist or some other person travelling on the road. We are facing far less revenue coming in to the Treasury to pay for them and need to find other sources of funding. That seems to be a reasonable proposal.
Secondly, I follow on from the comments of the noble Lord, Lord Berkeley, about cyclists. I speak as someone whose husband suffered a serious cycling accident two years ago—the police do not know whether it was because he went into a pothole or was hit by a car and then hit a pothole, but potholes were clearly involved in that accident, and he still has no recollection of what happened. There is an increasing number of good reasons to encourage children on to bicycles. I speak as someone who cycles my youngest to school when I can. It is madness for us to want children to be encouraged to go out to cycle for the health benefits that that gives them if, by the time they are adults and cycling to work, the roads are in such poor condition that it is not safe for them to go on them.
We need safe and well funded roads, which means that the Government are going to have to be creative in how we find that money. I think that the amendment offers an opportunity for further discussion and debate.
Lord Cameron of Dillington
I am sure that the appetites of the Corns are something to be praised in this respect. My point is that I hope that this principle will not be too rigorously followed when dealing with invasive alien species in future.
Lord Berkeley
My Lords, I bow to the expertise of previous speakers because I am no great expert in species. The previous three speeches have demonstrated that it will be quite a challenge to decide what is in and what is out. The issue seems to be very subjective and no one is fighting tonight, but I expect that the experts will fight in the future.
I have two examples—and I do not know whether they are in or out; perhaps the noble Baroness can help me. I have a quote from the Western Morning News last week, under the headline:
“UK ladybirds are being eaten by their invading cannibal cousins”.
Ladybirds are now cannibals that are eating either the five-spot or two-spot ones—I could go on—and invade at the speed of 200 kilometres a year. Even though they came in 20 years ago, I do not know whether they have reached Cornwall yet. Maybe the noble Lord, Lord Teverson, will know. Are they included? Have they been here before? Where would it be?
My other example is from three or four years ago when a friend of mine discovered that the Duchy of Cornwall was introducing Japanese oysters into the Helford River in Cornwall—we seem to have been in Cornwall a lot, but I cannot help that—without doing an environmental study or getting permission. Oysters were put in the cages, which all looked very nice, and some people liked them and some did not. However, after a year they all died, which may have served right those who introduced them, but it killed every other oyster in the river—the native oysters. I do not know whether those Japanese oysters would come within the context of this part of the Bill. Those that came from Japan certainly killed all the local ones, and it was of some comfort when my friend took the duchy to court. Its defence was that it believed that, for all practical purposes, it was above the law. I do not know whether that was why the court found against the duchy because the matter is still sub judice. That is an example of someone bringing in a species and perhaps not following it through to see if it was the right one to bring in.
That is why I tabled my Amendment 71. When I was researching it, I thought, “What is a species?”. I looked it up on some web dictionaries, and the best definition seems to be the wording that I have put in the amendment. Does it cover things in the air, be they birds, insects or whatever? Does it cover animals, birds or whatever that walk on the ground? Does it cover things in the water? That is a pretty important place from which we should start. It would be very good if someone could give a definitive answer so that we knew what the context was and where we might go from here.
Lord Davies of Oldham
My Lords, I have a great deal of sympathy with the main outline of the speech of the noble Baroness, Lady Parminter. I was a little less keen on the pasty that was identified as being available in Cornwall. I recall my brother-in-law, who is an expert on birds, arriving in Cornwall in the early 1990s and seeing a chough, which I did not see. He was certainly well versed in the significance of choughs to the Cornish position.
The purpose of the amendment that I have tabled is to get some sharpness of definition in the crucial area that we are concerned with. We all know that the issue of invasive species is of great significance. It is one of the causes of the loss of biodiversity and much of the world, and we have seen indications in this country of the extent to which that occurs. The annual cost of invasive non-native species to the economy is put at £1.3 billion, so we are not talking peanuts here.
I shall mention my own experience of this. I heard someone—I think it was the noble Lord, Lord Teverson—suggest that we could not mention Japanese knotweed. I am going to mention Japanese knotweed quite often. My acquaintance with the problem of Japanese knotweed was to see a person lose the value of their house, in an ordinary suburban area with absolutely no suggestion of any threat at all except of Japanese knotweed. The plant effectively reduced the price of their house from £350,000 to £50,000 in value. They simply had to get out of that house as they did not think that they could afford the costs of controlling the knotweed.
That was my introduction to local difficulties, but when I was in the department I became acutely aware, and I am sure that the Minister is well versed in this, that whenever a group of people come together to discuss Japanese knotweed, the railway industry is going to be there in force, as indeed it was on every occasion when we discussed it, simply because of the sheer cost to the railway system in this country of keeping the wretched plant at bay.
We are not talking about trivial issues as far as the nation is concerned when it comes to certain aspects of non-native species in this country. For agriculture alone, the cost in England and Wales seems to be getting on for £1 billion. That is an awful lot of money being spent in seeking to control a plant. In the European Union, the annual cost of non-native species is €12 billion. We were gratified to hear at the Defra briefing this morning of the extent to which there was international movement and action on this, and that the European community was playing its full role in this. There were one or two interesting exceptions that we heard about, which raised an eyebrow or two; many of us thought that the Danish scarcely merited the kind of exemptions that we in this country could hardly get for particular products and local parts of the economy; nevertheless, the Danes had obviously put up a good case.
However, I want to emphasise that we have to get this right. I know when I say those words that it is not possible to get it right, because it is a continual battle against change, some of it produced by climate change, which accelerates the difficulties.
We support the clause. The reason we want to probe the Minister is obvious enough; the noble Baroness, Lady Parminter, did the task for me. Red kites were reintroduced at Woburn, not far from where I live. The first arrival of a red kite on a tree, resting and then taking off in all its glory is something that I treasure. Of course I applaud the reintroduction of certain species, but I heard what the noble Lord, Lord Cameron, said about his anxiety about beavers. That shows the differences there can be between different parts of the community. People I have been talking to thought that beavers might help to restrict floods because they build dams to do so, whereas the noble Lord, Lord Cameron, thought that beaver dams might accelerate the problems. There you are, you pays your money and you takes your choice on that.
Before the Olympic Games, an absolute fortune was spent on clearing the site of my dear friend knotweed. The site had to be cleared of a lot of other very noxious things indeed. One of the great expenses of the Olympic Games was getting the site clear, but Japanese knotweed featured in that and cost £70 million to remove.
We must not underestimate the challenges which such species present. My amendment is tabled in order to get, and I am certain that the Minister will oblige the Committee by giving, a clearer definition of what the noble Baroness, Lady Parminter, asked for in the first place.
Infrastructure Bill [HL]
Lord Berkeley Excerpts(9 years, 11 months ago)
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Lord Davies of Oldham (Lab)
My Lords, we start on quite a fundamental point, on which even the Minister on occasions has not been too secure in the position that she has adopted. When I was asked last night to prepare a short summation of this part of the Bill for wider circulation, I wanted to get things as accurate as I conceivably could, but I found myself wrestling with whether I was referring to one company or companies. Every time that I used the word “companies”, it looked singularly ill placed with the surrounding arguments as far as the Bill is concerned. Therefore, Amendment 1 asks the Minister to clarify what is, after all, a pretty fundamental point, and we would not want to continue our deliberations without having cleared it up.
At Second Reading, the Minister certainly said:
“Yes, it is the Government’s intention to set up just one company. It is standard template language in legislation, I understand, to create the option of further entities. It has no sinister meaning at all behind it. The intention is for a single company, but of course the lawyers always think about what-ifs in the most extraordinary way”—
she did not sound too convinced by the argument herself. However, she went on:
“I guess we did not really kick back against that but, yes, it is one company”.—[Official Report, 18/6/14; col. 896.]
I congratulate her on putting up a pretty stout defence of her position, but even in that stout defence there is a certain ambivalence, as there is in the Bill. That is why Amendment 5 in my name would remove a provision from Schedule 1 that makes rules for when two different strategic highways companies interact, which certainly suggests that the Government are planning for more than one strategic highways company.
It looks a fairly limited argument to say, “The lawyers guard against every development and therefore we may need more than one”. The debate about the Bill will be coloured very significantly indeed if we must take on board the fact that there may be two strategic highways companies. To make the most obvious point, we will want to know how they will interact, and we have amendments down that relate to that. If the Minister is able to clarify the issue and state that, as it is the Government’s intention to establish just one company, she will look at the Bill again to ensure that it is framed in that way, I am quite sure that that would set a lot of minds at rest and make for a much more straightforward discussion.
I assure the Minister that whether there is one or more than one strategic highways company has quite a conditional effect upon the legislation. Our concern is not just about one passing fancy of the lawyers but about something that may be of real substance. Some of my more prophetic colleagues say, “Why don’t you come to terms with the fact that this is all about setting up the strategic highways authority for privatisation? Of course, you will want more than one, and this will neatly fit in with privatisation plans in the not-so-distant future”. Well, I am not a cynical person and I accept what the Government put in the Bill at face value.
It is on that basis that I move this amendment, which would delete “one or more companies” and insert “a company”. In addition, as I said, Amendment 5 would delete sub-paragraph (3) in Schedule 1, which suggests that the existence of more than one potential strategic highways company is not a legal oddity caused by standard drafting—lawyers always make life so much more interesting for us all when they turn to drafting—but a scenario actively envisaged by the drafters of the Bill. It clearly makes provision for what should happen in the event that one strategic highways company should wish to build a bridge connecting to another. One and one still make two and therefore this problem could arise only if there is more than one strategic highways company.
There is understandable concern that the Government are considering a model where the SHC might be franchised out in some not-too-distant future. If that is the intention, it reinforces our many concerns about this measure, but I venture to suggest that this concern is as great as any. Therefore, I ask for reassurance from the Minister that, when I next write about the Bill and try to communicate intelligently with a wider audience, I am able to refer to one company in the singular the whole time and make some coherent sense out of this measure. I beg to move.
Lord Berkeley (Lab)
My Lords, I support my noble friend’s amendment because there are already precedents for having a multiple infrastructure. One is the M6 toll road. I believe that the company running it was given a 90-year lease to maintain and operate it and charge whatever it liked as tolls for the next 90 years, or whatever it was. If, in the future, there is a plan for road tolling, as appears more likely with this Bill—I certainly welcome that and will be talking about it in later amendments—whatever tolling the Government of the day propose, the M6 toll road will not be part of it. Whether that will increase or decrease its traffic, I do not have a clue; it depends on what the charges are. It is a particularly bad example because most of the freight goes on the existing road and damages it quite dramatically—the noble Lord, Lord Bradshaw, has an amendment down on road damage—but this is just one example of what can happen if there is no co-ordination over the whole country.
A second example is that, just after the last election, there were various plans and threats from the then Secretary of State that Network Rail would be broken up into other regions or zones because it was not performing properly. The idea presumably was that there would be competition between those zones for quality, capacity and charging, and for anything else that you come across. Luckily, that did not go ahead. I declare an interest as chairman of the Rail Freight Group. The idea of having a different charge for whichever way you go between A and B would be just ridiculous; the business would not work.
The problem here is that, as the Bill stands, you could have more than one infrastructure company. Wales might well choose to be different. I do not think Scotland is part of this legislation, so the charges will be different there. Then there will be all the arguments about doing one thing one way and then leaving the rest of it and coming along and doing something else that is slightly different. There would also be the interfaces and the knock-on and consequential effects, which might be quite serious. I think that my noble friend is quite right in tabling this amendment and speaking so eloquently in favour of it. I do not know why we need more than one infrastructure company to run the trunk roads—there are not that many of them, actually—and why we cannot leave it as a singular company.
The Minister of State, Department for Transport (Baroness Kramer) (LD)
My Lords, as the noble Lord, Lord Davies of Oldham, said, I have emphasised before that we have no current plans for multiple strategic highways companies. This is not a sinister issue. We recognise that at some point there may be further companies, but the purpose of that might be, to give a good example, if one wanted a more regional structure for the equivalent of the strategic highways company. As noble Lords know, this Government are committed to devolution, so that is not something beyond the bounds of the imagination, but it is not anything currently contemplated. Our focus at the moment is a single highways company; there is nothing more sinister.
I also point out that one reason why I referred to the lawyers is that in this Bill we have sought clarity. The noble Lord will know from the number of Bills with which he has been associated over the years that it is quite common that a single phrase covers the plural. In fact, from the lawyers, I have this:
“Words in the singular include the plural, and words in the plural include the singular”.
It has been common practice in many Bills to allow for the fact that there may be more than one; it has simply been less explicit than we have been in this document. We thought that for the purposes of plain English this approach would be wise. There is no sinister context to any of this. We simply want to ensure sufficient flexibility for a future Government, so that if they decided that more than one company would be beneficial they would not have to go back and start legislation from scratch. In saying that, I am effectively responding to Amendments 1, 2 and 8, as well as Amendment 5, which as the noble Lord, Lord Davies of Oldham, said, is consequential to the other amendments.
I want to pick up on some of the issues mentioned by the noble Lords, Lord Davies and Lord Berkeley—that this is somehow some sinister mechanism for achieving privatisation. Nothing could be further from the reality of this Bill. The SHA is owned solely by the Secretary of State; if he were to cease to own it, it would lose all of its powers. There can be no way in which this company can be privatised. If the Secretary of State were to cease to be its owner, effectively it would cease to have any functions, powers or anything else. It would take a separate Act of Parliament to create a privatised entity. Everyone should be clear on that point.
The noble Lord, Lord Berkeley, raised the possibility that this could be some mechanism that in some way affected tolling, or future tolling. I point out to him that specifically under this legislation, where we have existing toll trunk roads, such as at Dartford, the Severn crossing and the M6 toll, these concessions remain in the same relationship to the Secretary of State as they currently have. They do not develop a new relationship under the auspices of the strategic highways company. We expect the concessionaires will continue to exercise their existing rights and discharge their current obligations. Tolls and congestion charges would therefore be set by a combination of public authorities such as the UK Government, devolved Administrations and local authorities, as is the case today under existing contractual mechanisms. I hope that with those assurances the noble Lord will feel able to withdraw the amendment.
Lord Whitty (Lab)
My Lords, I apologise to the Minister and the Committee that I was not here for the previous bit; I am afraid that I am boxing and coxing with the Chamber at the moment, and have probably already offended the rules of the House by nipping out during the Minister’s reply to move this amendment. Some of this amendment is relevant to what noble Lords have just been discussing on the previous amendment. Indeed, the first part of my amendment is a consequence of trying to clarify that we are talking about only one company and not several. That confuses people, particularly in local Government, who anticipate a degree of regional structures down the line. I know that the Minister will have cleared up some of that.
My second point relates to the issue of privatisation, of which the Minister was speaking when I came into the Room. Clause 1(3) of the Bill as it stands is branded as the way in which privatisation is prevented by the Bill; namely, that the designation would terminate if the company were sold or otherwise disposed of. To me, that seems a funny way of doing it. You will have a company which employs all the people who are at the moment employed by the Highways Agency. If it were somehow to be bought, all its duties would be removed. Surely it is far easier to give some parliamentary control over this process. If we are moving to a hived-off company, structured under the Companies Act but owned wholly by the state, and if it is the intention of the Government to keep it that way, why do we not state baldly in the Bill that it cannot be privatised except by primary legislation? That is what is proposed in the second part of my amendment. It may not be ideal, but it is a good deal better and clearer than what is in the Bill.
There are clearly worries. The first thought of most people when they heard that the Government were going down the road of hiving off the Highways Agency was, “This is the first step to privatisation”. There was alarm at that. There might have been in some quarters—but not ones that I have come across—some joy at the prospect, particularly were it to be related to road pricing, which in principle I do not oppose but is politically rather difficult for any of us to support, particularly a few months off an election. It is easier to assert the will of Parliament and say, “This is not privatisation. If there is any prospect of that changing, you will need a new Act of Parliament”. That is what my amendment proposes. I beg to move.
Lord Berkeley
I support my noble friend’s amendment. I am glad that he is here, because I am not sure that any other of us could have moved it. He did it very well. I want to compare this situation with what is happening to Network Rail, of which I declare an interest as being a member.
I have just come from a meeting with Network Rail where we have been told what is going to happen by 1 September, when it comes under government ownership. That sounds as if it is going to be quite easy, apart from changing all the memoranda and articles and allowing the Secretary of State or the accounting officer in a department to make certain appointments and control things. However, that is being done without much, if any, parliamentary scrutiny, because I do not think that anybody is particularly worried about it. Network Rail has been in the private sector up to now, but it has had £4 billion or so a year from public funds. It has managed to work and not cause trouble; otherwise, this would probably have happened sooner. However, there still have to be changes. I worry about it going in the other direction. As my noble friend Lord Whitty said, the consequences need some public debate, because there might be many more people who are worried about it, not least the people who work for the new company while it is government owned. It is reasonable to have some parliamentary scrutiny of a change. Therefore, I support the amendment in his name.
Lord Davies of Oldham
My Lords, I imagine that the Minister will have little difficulty in responding to this amendment. She is obviously going to continue to deny that privatisation is anywhere on the horizon as far as the Government are concerned—so that is one defence. Secondly, I hope that she recognises that there would need to be significant parliamentary action if privatisation of a significant company such as this were carried out. I am therefore anticipating the Minister quite enjoying responding to this amendment, which I am glad my noble friend has aired.
Lord Whitty
My Lords, I support the proposal that Clause 1 should not stand part of the Bill, as it queries whether the clause—which is the whole proposition here—is sufficiently coherent and clear as to what it intends to do. As a Roads Minister, I was responsible for at least one of the proposals for the A303 and remember that we talked to everybody in the community, including several different sets of druids, and told them that the Stonehenge tunnel would be built. However, as I said at Second Reading, no sod has yet been turned and all they have done is close one road.
I understand the Government’s intention to create a steadier position through having a slightly more arm’s-length relationship, but this is half-baked. It is neither fish nor fowl. This will be a company that is wholly owned by the Government and which—to address the point that has just been made—cannot raise its own money. The Minister has made that clear to me, both in writing and in person. I thought the main advantage of having the hive-off would be that the body could raise its own funds, even if subject to broader controls from the Treasury, but the Minister makes it clear in her letter that its situation will be no different to the current one of the Highways Agency. That seems to undermine the main advantage of establishing an arm’s-length body. The Government’s proposal incurs all the costs, all the confusion and all this great legislation in the Bill and all the schedules attached to it, but it does not, of itself, provide the funding, the strategic intent or the independence from Government and, crucially, from the Treasury. It will not avoid what has been a stop-go process for the past 30 years.
If the Government were proposing a new corporation that was properly set up and run and which, although still owned by the Government, had its own structural basis and accountability, as well as the ability to finance its activities in various different ways, I could see that there would be a significant advantage. With this halfway house, which is not even a halfway house, I see very few advantages. Therefore, I think that the Government would be more sensible to leave the Highways Agency where it is, give the agency more money and give that over a longer period of time—if that is the Government’s priority—and, if necessary, think up a fuller, clearer, more comprehensive proposition for what kind of highways organisation we need in this land. The answer to that might well be in the territory that my noble friend Lord Davies referred to, because what we perhaps actually need is a transport infrastructure company rather than one that deals with simply 2% of our roads.
If we were to do that, we could start to deliver the investment required for a genuinely integrated transport policy, whereas the Bill, as I am afraid I have said before, seems to be about changing the names on the doors without changing much else.
Lord Berkeley
My Lords, I would just like to ask the Minister where this figure of a £2.6 billion saving comes from. The two organisations Network Rail and the new strategic highways company will be quite similar, but one difference between them, which we will come on to in later amendments, relates to the role of the Office of Rail Regulation. Over the past 10 years, the Office of Rail Regulation has required Network Rail to make savings of about 60% of its turnover. That is quite a big saving, which has been achieved, while keeping the service going and the quality improving, because the regulator has very strong powers. If the savings are not made, or if the resulting performance of the network is bad, the regulator can fine Network Rail, as I believe it is planning to do next week.
The problem here is that the rail regulator will not have such powers over the highways authority but will simply monitor. You can sit monitoring things all your life, but you cannot incentivise or require an organisation to make the changes that it should. I am sure that there are changes to be made. I am sure that significant percentage savings could be made over quite short periods. On whether those would be the same as in the case of Network Rail, they probably could be, because Network Rail started off as a nationalised industry, which was probably pretty inefficient to some people. Although the Highways Agency has improved over the years, there is probably a long way further to go. However, unless we can get the ORR to have the same powers not just to monitor but to control and enforce cost reductions, I am not quite sure where we are with this.
Listening to other noble Lords, I am beginning to think that the only benefit from this that I have heard is the idea—which the Minister has, of course, denied—that the Bill is about getting the Highways Agency ready for privatisation.
Lord Teverson (LD)
My Lords, perhaps I should declare an interest in that I, too, am a regular user of the A303. When driving down there, one of the greatest moments for me is being able to see Stonehenge, but I know that the fact that I can do so is not necessarily good for the millions of people who go to visit it. More seriously, perhaps I could also declare my interests for the rest of the Committee stage of this Bill. I am a director of Wessex Investors, which would have an interest in the outcome of some of the planning implications of the Bill, although I do not intend to speak on those particularly. Wessex Investors could also potentially have an interest in some of the energy provisions, as it is starting to negotiate with an organisation on an energy project in the south-west. However, I do not think that any of those affect what I am going to talk about.
I, too, shall be interested in hearing answers to the questions on this asked by the noble Lords, Lord Whitty and Lord Davies, but I want to make the point that it is important politically that the Government are saying in the Bill that we have had enough of the stop-start, ad hoc investment plans for roads, and we need to move on to a much more mature and grown-up way of looking at infrastructure in the highways sector. Whether that is absolutely dependent on changing the name and function or legal entity of the Highways Agency, I am not absolutely sure, but I know that the Minister will come back on that when she answers the debate.
However, the good thing is that there is a real intention to start to mirror the situation that applies to rail. My understanding of this is imperfect and the noble Lord, Lord Berkeley, will know far more about it than me, but, as I see it, we have a good example from Network Rail, for which we now have a £38 billion programme over the next five years providing the investment needed to keep this country moving and to move things forward and modernise that network. That seems to be incredibly successful as regards usage and how that has worked over the past decade and into the future. If we can start to replicate that in the way we treat roads in this country, that would be positive.
I am not a great person for advocating huge investment in the strategic road network—apart from for the A303—but that clearly needs to be done in some areas, and on a programmed and predictable basis so that the Government, users and contractors know that it will be rolled out and actually happen rather than be subject to the next budget cut. I therefore welcome that, and hope that the Minister will be able to reply in such a way as to show that this change of the legal status of the Highways Agency will enable that to happen. Clearly, we need to do that.
Lord Berkeley
If I may just respond to the noble Lord, Lord Teverson, let me say that I, too, congratulate the Minister on what has been announced today about the things happening in Cornwall. To go back to the noble Lord’s comment about the long-term finance, I certainly agree with him that if this change enables the longer-term finance that Network Rail has at the moment, it will be a major step forward. I worry that I do not see that in the Bill—maybe I cannot find it, and perhaps the Minister will be able to put me right. However, I worry further, that although Network Rail has it for the next five years, where is the commitment beyond that for the railways? If that does not happen for the railways, it probably will not happen for the roads. I was going to raise this later, but since the noble Lord raised it, let me ask: is there the opportunity to have a discussion before Report committing the financing of this new agency—the Highways Agency and maybe Network Rail—to a five-year programme? If that does not happen, it would need primary legislation to change it. That is probably a bit of a tall order, but it would be interesting to explore.
Baroness Maddock (LD)
My Lords, I declare my interests as in the register, although I do not think that any of them have any particular relevance to what we are talking about today.
Following my noble friend Lord Teverson, of course we all have our favourite roads. Many people will be familiar with the A1 north of Newcastle and the issue of dualling it. Therefore, as I have lived with that, having now been married to the MP there for 13 years, I would be grateful to know how the Bill might help or hinder what has been a rather sorry tale of getting quite advanced on the dualling of that road, and then it all going backwards. It is now going forwards again, but I would be grateful for any information my noble friend can give me on that.
Lord Whitty
My Lords, Schedule 1 is 26 pages long. It is devoted almost entirely to inserting in the Highways Act the name of the company rather than the Secretary of State, or vice versa, and a lot of other administrative matters relating to assets, contracts and so forth. What it does not do—and I think it should—is to describe the responsibilities of the company and the scope of its activities, to which my next amendment relates.
This amendment is a shot at describing what I think will be the responsibilities of the company. This is Committee stage and, therefore, I hope that the department might accept the principle and draft a better description. However, essentially, somewhere in the Bill—I would prefer it to be in the body of the Bill rather than in a schedule, but the schedule is where the detail on the new company is spelt out at the moment—it should state what the functions and responsibilities of the company are.
The amendment refers to the obvious things: the construction, the maintenance and the improvement of the road system; traffic management for that system; and safety for that network. When I mention safety, on which I have amendments later on, I should inform the Committee that, since Second Reading, I have acquired an interest in this area in that I am now the chair, taking over from my noble friend Lord Dubs, of the Road Safety Foundation. Some noble Lords may recall that safety was a significant element when I was Roads Minister. Certainly, it is underplayed in this Bill and should be an important part of it, as are traffic management, speed controls, and so forth.
There is also the environmental dimension. There are problems about the construction and operation of roads. Somewhere in this Bill we need to say more clearly that the company, and not the Secretary of State any more, is now responsible for the environmental impact of the roads which are run by the Highways Agency. That includes the level of emissions which traffic management creates and whether that is going down and making a contribution to our carbon saving. It includes also the level of air pollution, which is largely proportionate to congestion and which, again, the Highways Agency network should be making a contribution to, as well as other things which are not perhaps so obvious, such as the run-off of water from highways, which has a significant effect on water systems—we have just passed a Water Act in which the quality of water is an important issue, including that of groundwater. Although most new schemes provide some better storage and diversion of water, from a lot of the old roads it still goes back into the ground or into the water system.
The amendment also refers to another responsibility, which is for research and development. I think that I am right in saying that the Highways Agency has its own R&D budget, but the Department for Transport also has a roads research budget. Is the whole of R&D on roads now to be the responsibility of this new company, which would probably be quite sensible? The Bill needs to be clear that the R&D on roads, traffic and the impact of roads is one of its responsibilities. A final dimension of the responsibilities that I am suggesting is the necessity to engage with road users and local communities, and the ability to enter into contracts with other providers. We will come later on to issues of co-operation with local authorities, and so forth. A key responsibility will be relations with road users themselves.
This amendment is my shot at this issue. I suspect that there could be a better one—but it is rather odd that a whole new nationalised infrastructure corporation should be established without the primary legislation saying anywhere what its responsibilities are. Therefore, I beg to move.
Lord Berkeley
My Lords, I support my noble friend in his Amendment 4, and I shall speak to the other amendments in this group. On Amendment 4, he is absolutely right. The strategic highways company needs to have responsibility for all the things that he has put in the amendment. I remind the Committee that there is very strong evidence that a month or two before the Olympics, when the air pollution on one or two of the trunk roads in London was reaching Chinese levels, the solution by the Mayor was to cover the monitoring points with plastic bags, which of course reduced the level of pollution inside the plastic bags but did not much help anybody else. But this needs to be done by the strategic highways company, and I would suggest that it needs to be supervised by somebody. That may be a role for the Office of Rail Regulation, or whatever it is to be called in future, because these are very important points.
My noble friend is right in his comment about research, but there needs to be some research into non-trunk roads, which are a very large part of the road network. I hope that that can be taken into account as well.
Amendments 6 and 7 relate to the 20 pages of consequential amendments to which my noble friend referred. It relates to something that may have got lost in the search for consequential amendments—the Environmental Protection Act 1990 and the question of which body is responsible for collecting litter on different roads. These two amendments are designed to make sure that the strategic highways do not get left out of the wrapping up; otherwise, we will see them covered in litter from head to foot.
I shall not read out all the parts of my amendment, because everybody can read them, and it probably would not make much sense anyway—unless you put a wet towel on your head.
Finally, my noble friend did not mention Amendment 61, which follows on from Amendment 4 and is to do with the transfer of additional functions to the strategic highways company in Clause 13(2). It covers highways and planning, but I agree that it should cover road safety as well, because that is a terribly important part of it. We will talk about safety comparisons later, but it would be good to see road safety in there, or something like it.
Lord Bradshaw
The amendment moved by the noble Lord, Lord Whitty, with which I agree, mentions “speed control systems”. We are considering the Deregulation Bill on Monday, which makes specific provision for a lot of the enforcement of speed and other offences to be undertaken by people who go round with pads rather than the modern method of using cameras. Will the Minister cover that, or at least take it away and get sorted out the apparent contradictions between those two pieces of legislation?
Lord Berkeley
“Duties of Strategic Highways Company
(1) A strategic highways company has, in relation to areas for which it is appointed, duties to—
(a) plan, monitor and manage highways for which it is the highway authority in order to secure economic, social and environmental gains jointly and severally,(b) secure the fullest possible use of sustainable modes of transport, including by—(i) widening travel choices;(ii) unlocking development in locations that are sustainable or assisting in making them sustainable;(iii) encouraging highway users to make more efficient use of vehicles by increasing average occupancy and loading rates; and(iv) working in partnership with operators of passenger transport and freight services, as well as local authorities and those responsible for major trip generators.”
Lord Berkeley
My Lords, to some extent Amendment 13 follows on from my noble friend Lord Whitty’s Amendment 4 on responsibilities and scope. There is a strong, if not stronger, argument for having in the Bill a clause which sets out the duties of the strategic highways company, because there is already legislation which puts duties on the Secretary of State or the regulator as regards railways. Some noble Lords will recall the Railways Act 2005 and the Railways Act 1993, which was the basis of privatisation. The duties there included promoting,
“improvements in railway service performance … to protect the interests of users of railway services … to promote the use of the railway network in Great Britain for the carriage of passengers and goods”.
I was very pleased to see that goods got in there. The list of duties continues:
“to contribute to the development of an integrated system of transport … contribute to the achievement of sustainable development”.
I could go on reading out Section 4 of that Act. It very much mirrors what has been achieved by successive Governments and rail regulators such as the Office of Rail Regulation in succeeding years through putting those basic principles into effect. This is quite important, and we have the opportunity to put a similar range of duties on the strategic highways company—or companies, however many there are.
Looking at this amendment, it is important that we start to include the cross-modal issues that I and several other noble Lords spoke about at Second Reading. We should look at modes of transport such as highways and railways—probably cycling and walking as well, and maybe other things in the future—on a cross-modal basis, with the duties to secure something like, as I put in the amendment,
“the economic, social and environmental gains jointly and severally”.
I am sure Ministers could come back with a better version, but I hope this is a useful basis for suggesting what the duties of this strategic highways company should be. Unlocking development is important, as is encouraging occupancy and loading rates for passengers and freight and looking at the need to drive, the need to move around and, of course, its sustainability.
We shall be talking about some of these things in later amendments, but it is important for an organisation such as this one to have duties, which should be in the Bill just as they are for the railways. I have tried to mirror what is in the original Railways Act. It has changed over the years and is in a different format now, but the duties are still there, and if we had something like this for the strategic highways company, alongside the responsibilities that my noble friend Lord Whitty talked about, it would make us all feel a lot more comfortable. I beg to move.
Lord Bradshaw
I agree with what the noble Lord, Lord Berkeley, has said, but will add something. You can argue for or against it, but having chosen to go down the route of rail regulation, there is one thing I really would like to be assured about. We know that the motorist—maybe “road user” is the right term—is to be represented by Passenger Focus. That of course covers the railway, bus and tram industries; it has seen incremental growth, and I think the noble Lord, Lord Whitty, had a good deal to do with its genesis. With railways, buses, trams and the other things for which it is responsible, it has a right to get information from the regulated party or from the party for which it is responsible. A train or bus company cannot refuse such a request. I would like to be assured that the strategic highways company, too, will not be able to refuse a request for information from Passenger Focus acting in pursuance of its duties to represent road users. I am quite happy that it should represent them, but I do want it not to be treated any differently from the way it is treated in other industries.
Lord Berkeley
I am grateful to all noble Lords who have taken part in this debate and to the Minister for her response. I get the feeling that we are being directed towards this lovely, short licence document, or the longer one, as being the answer to everything. It is not clear to me—maybe because I do not understand it—when we will see the longer version, which will have as much detail in it as possible before Royal Assent, and whether we will be able to debate it. If we are not, it is pretty important that there is some reference to a strategy, such as a road investment strategy or, if the Minister prefers, a transport investment strategy, because there is none at the moment.
We do rail one way and roads another—we have debated that very often in the House. They have different criteria; they do not seem to talk to each other, and they have different forecasting methodologies. Is there to be some read-across between how the railways are operated and how it is intended that the strategic roads are operated? It may be that things have moved on since the Railways Act 1993, with the Railways Act 2005 and the high-level output specification used to specify what the railways should do, but there needs to be something in the Bill to set the strategy and perhaps the duties. We can debate whether it is to be the Secretary of State or the regulator, but to just dump all this into a licence that we may or may not see will lose us a big opportunity to consider before we get into the detail not just how roads are built and operated but how they fit into the environment, including the issue of emissions, along with local roads and all the other people that my noble friend Lord Whitty mentioned. I shall reflect on that and come back to it on Report. Perhaps we can have a meeting with the Minister before then, but in the mean time, I beg leave to withdraw the amendment.
Lord Berkeley
My Lords, in discussing the strategies and the length of time, my Amendments 23 and 24 go into more detail but I think they are trying to say the same thing. It is an interesting issue as to whether there should be a five-year period. It is a great deal better than having one year, which is what we used to have, but it may be better still to have a rolling one, if that were possible.
I heard some results from Network Rail this morning. It has a fixed five-year term, as noble Lords will know. I have been given the capital expenditure year by year over the past five-year period. In the first and final years, the expenditure was 50% higher than in the three middle years, which is very difficult to resource up and resource down for the contractors and suppliers dealing with it. I asked the people at Network Rail why, and they said, “Well, the first year we are catching up with what we should have done in the previous control period and did not get round to it, and the last one was because we had a lot more expenditure that we had to finish before the end of the control period”. That is quite normal. That will happen on roads as well as railways; it is much the same. But I know that the feeling at Network Rail is that, if it was possible to have a rolling capital expenditure programme, life would be much easier. I wonder which, if either, would get through the Treasury better and whether it would be possible to have a rolling one rather than a fixed one. That is just an example from Network Rail.
I have one other question for the Minister arising out of these amendments. I hope that the strategies and all the duties and everything else will include the interests of cyclists and pedestrians. People may say that pedestrians should not be on trunk roads and they should use footpaths if the road is high-speed, but it is terribly important that pedestrians and cyclists feel safe and use the roads, which is part of the environmental objectives that I put in my amendment. It would be good to have some confirmation from the Minister that this is all part of the strategic investment plan.
Lord Whitty
All the amendments in this group are mine. This relates to exactly the sort of thing that my noble friend Lord Davies was just referring to. The Highways Agency consists mainly of engineers—quite rightly, and very good engineers many of them are. In the fringes, there are traffic engineers, as well as highways engineers. When you ask them to build into their projects objectives other than those which relate to providing more, quicker or wider roads, there is a bit of barrier, on occasion. Between them, the amendments are an attempt to ensure that when we take decisions on road improvements or new roads, issues of safety and the environment are built into those decisions on the same basis as any improvement in travel time, the number of miles of road which are tarmacked, or whatever.
The Highways Agency contains within it people who take those things seriously, but the natural tendency, particularly when we put the foot on the accelerator of spending on roads, is to get as many roads built as fast as possible and not worry too much about the complications. One big complication has wider implications for the rest of the project: safety. Earlier, I declared my interest as the new chair of the Road Safety Foundation. Every year it produces a map of European standards and the state of Britain’s roads. I have the map here if anyone wants to look at it. Those are standards which have been worked up by various equivalent bodies across Europe. It is right to say that our motorway system, in particular, is one of the safest in the world and is the safest part of the British— English, in this case—road system. That, of course, is calculated on the basis of vehicle miles and comparing them. It is also true to say that 250 people a year are killed on Highways Agency roads every year, and 2,000-plus are killed or seriously injured on those roads. That is a significant safety issue. Just to put it in perspective, more people are killed on Highways Agency roads, which are only 2% of our network—a third of the casualties because of the density of traffic—than the number of people who are killed at work. There are health and safety issues at work, for which we have a whole organisation, the HSE, to ensure that such accidents do not happen or are minimised.
The Government need to have an answer to the question of who is liable for those accidents. There have been big improvements in road safety in the past 20 years. When I was Road Safety Minister we had a 10-year strategy and, by and large, that reduced deaths and serious injuries by about 30% over that period. That improvement has slowed down a bit since 2010, but we are nevertheless one of the best and safest in Europe and the world. However, there are still a significant number of deaths and injuries.
If you try to establish the causes of those accidents, there is an assumption that it is mainly driver error or driver behaviour—and there is some truth in that. Much of the improvement over the past 20 years has been in improved vehicle safety. The Euro NCAP programme has raised certainly new car safety features from what it regarded as 2-star to roughly 4-star—air bags and other aspects of car design—which has had a major impact.
It is also true to say that at least for most groups there has been some improvement in driver behaviour, but there has not necessarily been the same improvement in safety features in the physical design of roads, nor has the improvement been reflected in the objectives of road-building organisations—principally the Highways Agency, but also the local authorities. The reasons for this are partly because it is thought that if you build a better road, safety automatically improves. It does not necessarily do so, and certainly does not improve proportionately. It is partly because the system for appraising new projects—whether they are intersections, main road widening or whatever—includes safety elements that are but a small proportion of the total cost and benefit. Additional safety factors are therefore discouraged by the way in which the projects are appraised.
This group of amendments, which also relate to environmental issues, attempts to write safety issues into different points in the Bill. I imagine that the Minister will not accept the amendments as they stand but I advise her and her colleagues that road safety is underplayed in the Bill. At various points in the Bill, explicit reference to road safety and reducing accidents needs to be reflected, as well as in the licensing conditions and the standards and objectives that the Secretary of State accepts for the new company.
My worry about the transposition in this context is that if a road design issue causes or contributes to the cause of an accident, who is liable? We do not get many legal cases about the state of the roads, and I do not know why. Thirty years ago we did not get many legal cases about the performance of the National Health Service; now we get lots of them. We get quite a few about tripping over the pavement, which is the equivalent responsibility for the local authority. If you have an independent company, the question of liability to potential litigation needs to be taken into account as one of the risk factors. I am not saying that it is a determinant risk factor, but it is something that the Government will have to have an answer to, and at the moment I do not think they do. One way of ensuring that that happens, in terms of licence conditions and the other oversight that the Secretary of State will have to perform, is to write safety in at several points in the Bill.
With regard to the detail of the individual amendments, Amendment 18 relates to the standards that the Secretary of State can set for the company. One of those standards should be a reduction in the number of accidents and the number of people killed, and that should be,
“a central objective of the Road Investment Strategy”.
Amendment 22 makes the point that I was just referring to, that when you appraise schemes, the appraisal for safety benefits or otherwise needs to be a separate assessment and not be lost in the overall assessment, because the return you can get on safety measures is often much higher than the return you get on time-saving and other economic benefits. Amendment 22 also goes into other issues of reducing traffic and so on, which also have high returns. It is the same in the energy sector: saving energy is actually a far greater return than spending money on new power stations, although you have to do both—as you do here. But if you appraise the environmental element separately, the rate of return is significantly greater. Therefore, that should be done as a matter of course.
Likewise, in relation to the strategy in Clause 2, Amendment 33 says that the objectives should relate not just to road-building but to safety issues, and that in relation to guidance due consideration should be given to road safety and environmental outcomes. I would particularly emphasise the road safety dimension.
These amendments may not be the most appropriate place, but before the Bill leaves this House it would be sensible for the Government and the department to find the appropriate place to put, in lights, “road safety responsibilities of the new company”. If we let it leave this House without that being clear—in several different places, I suggest—there will be a tendency for the company to at least downgrade those and for the accountability of the company to be weaker because they have not been spelt out in the Bill.
These are quite important issues. Sometimes those who are keen on having new roads regard safety issues as a constraint rather than an objective of road design. We need to ensure they are an objective both at the individual project level and in the overall strategy. I beg to move.
Lord Berkeley
My Lords, I support my noble friend. He has raised some very interesting challenges. I do not think that safety gets taken into account nearly enough in the design of roads. In my earlier life, I designed quite a few of them.
It might be interesting to compare how the roads have developed and how the railways have developed. There were some horrendous accidents on the railways in Victorian times, starting off with a Member of Parliament who got crushed by one of the first trains because he was standing too close to it, or something. That led to the introduction of the Railway Inspectorate, whose job it was to ensure that the railways were safe, bringing in things such as brakes, which are quite useful. Things have moved on a bit since then. The Railway Inspectorate was originally staffed by retired Army officers, but more recently it has moved to the Office of Rail Regulation, which is the right place for it. I think that it does a very good job. We will be talking about some of the issues around that when we discuss a later amendment.
It seems to me a good idea to look at whether the ORR in its expanded role could take on some road safety issues. At present, the Highways Agency does that, and, in the absence of any other instructions, the new body will probably hold much the same views as that agency—namely, the desire to increase speeds so that people can get to their destinations faster and to increase capacity by having more roads. The strategy is designed round the concept of “a minute saved”. My noble friend is an expert on this. He may well be right that that body takes safety into account to some extent, but I am not sure that it does. It could certainly do so to a far greater extent.
The Office of Rail Regulation could be given responsibility for many of the safety issues that my noble friend raised, which cover a multitude of sins, and could be given a duty to look at the potential for modal shift. We talk about road to rail very frequently, but there is the issue of road to bicycle. As we have seen in London, road to bicycle is concerned largely with safety issues. A terrible number of cyclists have been killed in London in the past year or two. TfL talks about redesigning roundabouts but one of the key issues, which must be obvious to most people, is that if you give cyclists space, they are less likely to get run over. If the road traffic speed is set at 20 miles an hour, it is a great deal safer than 30 miles an hour, and you will get more people cycling and fewer people trying to drive. It would also reduce emissions and do all the other good things that we have been talking about. This is to do with modal shift. The journey time issue is equally important, whether you travel by bike, train, car or bus. Therefore, my noble friend’s amendments deserve careful consideration. I will discuss with him in more detail whether the Office of Rail Regulation should be involved in some of these issues. I think that body is capable of it as it has very capable people. Unlike the Highways Agency, it can stand back and take a different view and, if it does not like what is going on, it should be able to enforce and encourage change. These are important amendments and I look forward to further discussion on them.
Baroness Kramer
This set of amendments seeks to make the road investment strategy cover several specific areas, including carbon reduction, traffic volumes and environmental performance, and to place safety at its heart—the area where we have had most discussion, which has been fascinating. I reassure the Committee that the Government take all these issues very seriously. It seems to me that where we may differ is on whether or not these important values are enhanced in implementation by including them in the Bill rather than in the road investment strategy and in the licence. I am inclined to believe that the RIS and the licence are the most powerful documents to drive forward the behaviours that we are looking for, so I shall explain the role that those documents play.
We are concerned about ending up with a long list sitting in legislation and describing what the road investment strategy should look at, because, as everyone in this Room knows, there is always the problem of what happens with the item left off the list when that is significant. One can try to say that those that are not named are of equal significance and are equally elevated, and that one is not primary over the other, but that is not always an easy argument to make. I am concerned, particularly since we want this to be a long-lasting document, that there will be issues which we consider to be of equal importance to safety and the environment and that we would be in a difficult situation if we insisted on those additional significant priorities. I am therefore hesitant to go to the face of the Bill. It is helpful to have the information that we have on both the RIS and the licence, and the other documents.
Let me focus on safety, because it is a very important issue to the Government. As the noble Lord, Lord Whitty, said, our roads are pretty much the safest in the world, but we can never be complacent. The strategic highways company will have a responsibility for the safety of the road network, but, as I pointed out previously, there are key safety responsibilities—including driver licensing, training and education, the regulation of driving such as drink-driving and drug-driving policies, enforcement, dangerous and careless driving and, as the noble Lord underscored, the important issue of vehicle standards—that must stay with the Secretary of State and not transfer to the new company. That is to put the broad construct, which would not work effectively if those responsibilities were not kept with the Secretary of State.
As we go through these complex documents, it is worth noting that safety is already embedded in the strategic roads “system”. For example, the Design Manual for Roads and Bridges sets minimum standards for road safety, and safety is covered within the appraisal. The noble Lord, Lord Whitty, asked whether the appraisal formulas were exactly as they should be. That is surely not something that we are going to address in primary legislation; it is a working issue that needs to be addressed at a much more practical level. In wide areas of appraisal—I have looked more at financial and cost-benefit appraisal issues—we are constantly trying to update the way in which we look at those issues. I cannot see that it can be driven through primary legislation; it is part of being responsible. The importance of safety is already included in the draft licence and will be a key consideration in the road investment strategy. For example, the RIS will require performance specifications that embed safety issues.
The noble Lord, Lord Whitty, referred to legal liabilities. I think that it is clear that the SHC is responsible for the road but not the driver, but I do not think it would be right for me to try to speculate on legal liability.
Embedded in the amendments are important issues of environmental protection such as climate change and biodiversity. Again, they are well covered within the licence by broader existing legislation. Again, if we are looking at who is responsible for what, a lot of those issues refer to the vehicle fleet, and that must be with government rather than with the new company.
Therefore the view we take is that the issues that are raised are very important, but that they are carefully covered and encompassed by the language we have in both the primary legislation and supporting documents. Therefore once again, amendment is not necessary to achieve the goals which those sponsoring these amendments have in mind.
Lord Berkeley
The noble Baroness mentioned the performance specification. Giving something like the Highways Agency a performance specification means, “Make your road traffic go as fast as possible, make sure that the bikes are miles away, and put up lots of crash barriers so that if people do go off the road, they won’t kill anyone else”. I hope we have moved on—or will move on—from that.
Baroness Kramer
All I can say to the noble Lord, Lord Berkeley, on this, is that we have certainly moved on from that, have we not? That is one of the problems that happens when you try to put too much into primary legislation—we become more demanding as the years go by, not less demanding. It is important that we reflect that more demanding approach in the way we manage our network.
Lord Whitty
My Lords, I have an amendment in this group. I agree entirely with my noble friend Lord Davies on how we get to the investment strategy. My amendment is at the end of this group, and it is about Parliament’s oversight of the process. We always ought to consider how Parliament both approves and monitors bodies and documents which are referred to in legislation.
I am proposing that, before the first strategy is implemented, it should be subject to a report of a Joint Committee of both Houses. I suspect that our colleagues in the House of Commons will say that it should be a DfT Select Committee. Nevertheless, some form of parliamentary accountability is necessary. It is nowhere in the Bill, and it should be. It should be a regular process; I am saying every five years because that is the period to which the money and strategy initially relate. Certainly, a regular review of the roads investment strategy ought to be built in at parliamentary level. That will complement the consultations that are required at the beginning of the process in my noble friend Lord Davies’s amendments.
Lord Berkeley
My Lords, I have two amendments in this group. Amendment 26 is more about who should be consulted. I expect the Minister will say that she does not like lists and therefore we should not have them, but as my two noble friends have said, it is very important that the Secretary of State should consult organisations that are affected, including,
“Network Rail … local transport authorities … combined authorities … statutory environmental bodies”,
and anyone else that the Secretary of State thinks is important. It is very important that this should happen. If it is going to happen, that is fine, but it is very important that it does.
With regard to Amendment 31, on Part 2 of Schedule 2—“Varying a road investment strategy”—it seems more appropriate to make use of the Planning Act 2008 provisions and apply them to the road investment strategy as if it was a national policy statement. My amendment would bring it all together in a national policy statement structure rather than the one in the Bill. I do not think I need to explain it any further. I look forward to the Minister’s comments.
Baroness Kramer
My Lords, as we explained in the RIS explanatory document, Setting the Road Investment Strategy—another one of this cluster of documents that I hope people have found but if they have not, the Library has them—a key mechanism for public and stakeholder engagement in the development of future versions of the road investment strategy will be the route strategies. That is the point at which local authorities and all kinds of interested parties can look at the specifics and contribute greatly to the process. The outputs of the route strategies will be used to develop a strategic route network initial report, which will inform the Government’s proposals. One of those complex documents—I think that it is the one that the noble Lord, Lord Jenkin of Roding, was holding—provides a graphic pattern for how those pieces can work.
Of course, the Government will engage with key stakeholders when developing our proposals, but that is different from requiring a formal consultation. Obviously, it is the goal of the Government to ensure that we come forward with a very well informed document, and that engagement is inherently part of that process. Where we have looked at providing for consultation in this document is in relation to varying the RIS. The point that we have made is that where a strategy is being varied, because it has the downside of potentially weakening the value of the strategy as a long-term funding settlement, that is the part of the process where we want to bring in consultation in a more formal sense.
We would have no certainty that those variations would have had the stakeholder engagement that is required for building the route strategies in the first place, which, as I say, are the first step in the flow-through of information that informs and helps to structure the RIS itself. That is why we have a distinction from allowing the normal pattern of extensive stakeholder engagement when forming the RIS because it will have had that input through consultation on the route strategies. So we have the route strategies leading to the RIS. If the RIS is varied, that process will not have taken place so it is for variance of the RIS itself that we require consultation.
Lord Berkeley
The first strategy is put before Parliament but presumably the Secretary of State consults all the relevant people before he does that, or is he just going to put it before Parliament without consultation? That is the impression I am getting from the Minister.
Baroness Kramer
The Secretary of State and others are very heavily engaged with stakeholders. That is the way in which they expect to develop the RIS. The first one is always a bit odd because if you look at the rules, they require a to and fro between the Secretary of State and the strategic highways company, and of course the strategic highways company does not exist yet so there is a fairly unique arrangement for the first RIS, which we expect to be published—I cannot give dates—in the future.
Lord Berkeley
I will press the Minister once more. I see nothing in part 1 of Schedule 2 that says that the Secretary of State should consult anyone else apart from the strategic highways company. Maybe I have got it wrong but that does seem a bit odd.
Baroness Kramer
The point that underpins all this is that Ministers, rather than Parliament, have traditionally made decisions on infrastructure funding, and we are not seeking to overturn that. It would be rather unprecedented for the Government to put forward a funding and investment plan for debate. If that were to become the underlying principle, it would have a sweeping impact on many different aspects of government, so we are not proposing that. We also, frankly, recognise that it would slow down what is already not a brief process. We want to get to the point of getting infrastructure out into the ground.
For example, the rail investment strategy can be issued by the Government without being laid before the House and debated. That does not prevent Parliament from holding the Government and the rail sector to account, and that is the model that we are following here. We are behaving consistently with how these issues are already handled in government—we are not overturning that, other than to the extent of putting in a requirement for consultation should there be a variance in the RIS. As I said, that is because it has that sort of exception, or potential downside, of undermining the framework of long-term funding certainty that we are trying to create. I assure noble Lords that there will be extensive stakeholder engagement around the RIS. Indeed, the RIS will typically be built from the route strategies up, and there is extensive consultation at the route-strategy level. There is a place for consultation in all this, and the arrangements as a whole are very satisfactory for that purpose.
One of the amendments in the name of the noble Lord, Lord Berkeley, lists a number of stakeholders that would have to be consulted during the preparation of the RIS. He is right about lists tending to be a problem for me. The practical reality is that the stakeholders know who they are and the Government know who the stakeholders are. There is constant engagement, and it is a fairly fluid group, so there would be no great advantage to including a list of them.
I want to make sure that I cover the full range of issues. The noble Lord, Lord Whitty, suggested that Parliament should report on this. He said that he was not sure his amendment achieved what he intended, but we read it as requiring that Parliament approve each proposal in Part 1 of the Bill before it could come into force, and that Part 1 must be reviewed every five years. We are debating the Bill now, and I am sure his specific intent was not to require it to be reviewed as soon as it was enacted. We may just have some confusion around that issue. Perhaps he was trying to suggest that the RIS should be reviewed by Parliament—that is my understanding from the comments that he made.