Automated and Electric Vehicles Bill

Lord Campbell-Savours Excerpts

Committee: 2nd sitting (Hansard): House of Lords
Thursday 17th May 2018 Lords Chamber

[Baroness Worthington (CB)]

My Lords, I shall speak to the amendments to which I have lent my name, particularly Amendment 39. I begin by declaring my interest as an employee of the charity Environmental Defense Fund Europe, which works to find solutions for environmental issues including climate change and air quality.

Today, we turn to Part 2 of the Bill. We must begin by considering the important issue of whether the Bill, as drafted, is fit for purpose. The latest figures show that the UK is failing to get a grip on transport and emissions and is in danger of missing key climate and air quality targets. Meanwhile, we are spending public money and valuable parliamentary resource on debating a narrow and essentially toothless transport Bill. Transport now accounts for the biggest proportion of greenhouse gases in the UK at 26%, according to 2016 figures. While other sectors, such as the power sector, have been successfully decarbonising—spurring new investment, new supply chains, new jobs and more export potential—the transport sector is stuck in a time warp, seemingly oblivious to the fact that it needs to change to meet society’s needs in the 21st century. Those needs include cities free of pollution and a world not exposed to the existential risk of climate change.

Attempts have been made to get the vehicle manufacturing industry to change course. EU standards were imposed on emissions of greenhouse gases and air pollutants. However, rather than responding with investment in new zero-emission vehicles, manufacturers chose instead to sell us diesel cars and install cheating devices. Having been caught once, there is no real sign that, left to their own devices, they are prepared to make a fundamental change. New, innovative zero-emission models are prototyped and were announced with great fanfare, but there is almost no effort to market them and customers find themselves frustrated by long waiting lists as demand outstrips supply. Only strict new policies, introduced in China, have caused the OEMs to rethink their investment and marketing plans—but only for the Chinese market. In Europe, as people are ditching their diesel cars, the only option available to many is to return to petrol cars. That exacerbates climate change and fails to address other sources of air pollution associated with petrol, such as benzine.

Recent analysis of monthly car sales in the UK shows that although petrol and diesel sales have been roughly equal for much of this decade, petrol sales jumped up last month by around 20% while diesel sales fell by around the same amount. Zero-emission vehicles, in the form of battery electric vehicles, were just 0.5% of sales. Hydrogen-fuelled vehicle sales remained so low as to not feature in the analysis, which brings me to today’s amendments. It is abundantly clear that the Government do not yet have a cohesive strategy to bring about a clean transition in transport. There has been talk of a ban on the sale of internal combustion engines in 2040, but I am afraid that that is simply not good enough. Children and old people in our cities are regularly exposed to dangerous levels of air pollution and transport continues to use far too high a proportion of our carbon budgets; that threatens to further worsen our ability to meet our legally binding greenhouse gas targets, which the CCC—the Committee on Climate Change—has already said we are in danger of missing.

Here in London, where pollution is routinely the worst in the country, zero-emission vehicle sales are failing to keep pace with the rest of the country. They were at 38% of all sales in 2011, but have fallen to just 10% in 2017. We need action now, not in 22 years’ time. The Bill, which began life as the modern transport Bill and has been reincarnated as the Automated and Electric Vehicles Bill, addresses a far too narrow set of issues. With just enabling powers, it is an empty vessel with little to no impact, which the lightweight impact assessment makes abundantly clear.

The noble Baroness, Lady Randerson, has sought to address one of the Bill’s clear failings by rightly pointing out that the Government’s approach to providing infrastructure for zero-emission vehicles needs to take into account hydrogen fuel cell electric vehicles, which are mentioned in the Bill, but then there are no further references throughout. This is a potentially important category of vehicles that combines the efficiency of electric motors with hydrogen fuel to extend the range to hundreds of miles per journey. The Bill acknowledges that these are intended to be included under the definition of electric vehicles but fails to take the next step, which is to address the need to consider hydrogen refuelling infrastructure alongside electric charging infrastructure. We strongly support the noble Baroness’s amendments to address the issue and believe that if the Government cannot accept them then they should come forward with their own amendments to address the omissions in the Bill relating to hydrogen fuel vehicles.

Of course, what is really required is an entirely new clause devoted to other forms of zero-emission vehicles, including hydrogen—something that it is impossible to achieve with amendments alone. My Amendment 39, which would add a definition of zero-emissions vehicles to the Bill, relates to Amendment 98 on reporting requirements, which we will come on to. My purpose in tabling Amendment 39 is to try to link the Bill to the Government’s own manifesto commitment that by 2050 almost all cars and vans will be zero-emission vehicles. Achieving that goal will not happen by magic. It will not happen by stating that there could be a ban on internal combustion engines by 2040. It will happen only with a comprehensive policy framework that causes significant change to be delivered in the sector. The private sector must still be in charge of how that change is delivered, but it has shown itself to be incapable of driving the necessary change on its own. Government intervention will be needed. A comprehensive strategy and policy framework is sorely missing.

In the accompanying Explanatory Notes to the Bill there is a sentence that reads:

“The Bill … sets out the regulatory framework to enable new transport technology to be invented, designed, made and used in the United Kingdom”.


As it stands, there is absolutely nothing in the Bill that concretely contributes to the meeting of that goal. I and others in the House have sought to address the Bill’s manifold shortcomings but the narrow drafting has prevented us from tabling all but the most limited of amendments. Nevertheless, in the course of today’s debate I hope we can present our case to the Minister that the Bill is sadly a missed opportunity. There is a very real and urgent need for a much more complex approach to transport technologies. We need to see zero-emission fuels properly addressed, including hydrogen. We hope that the Government will be persuaded to come forward with their own amendments.

[Lord Campbell-Savours (Lab)]

My Lords, I will intervene briefly to make what I can only describe as a very trivial point. The Industry and Parliament Trust wrote to me and a number of my colleagues in the last few weeks telling us that there would be a breakfast meeting in the House on 1 May. I do not think that it realises that some of us simply cannot turn up for breakfast meetings on this extremely important issue. I raise this in the Chamber because it is important that it realises that these are problems for some Members. I would have attended because it is a fascinating area of development.

In particular, my interest is in the possibility of applying this kind of technology to lorries, which is what has happened in America. There have been tests. In so far as commercial vehicles are the major polluters, we should be doing everything possible to ensure that they are in the front line of the shift to this technology. As I said, I hope that the Industry and Parliament Trust has that in mind when it arranges these meetings in the future, because it means that some of us are denied the opportunity of the very excellent work that it does on many issues that come before Parliament.

[Lord Tunnicliffe (Lab)]

My Lords, I did go to that breakfast, so I have heard the hydrogen manifesto, as it were. I also attended a dinner last night arranged by ChargePoint and witnessed my first outbreak of range anxiety among electric car owners, who explained at some length and some volume that 120 miles with the lights on meant about 50 miles. The battery electric formula has still a long way to go. There are many areas where hydrogen might be used, the classic example being buses in London. Hydrogen needs greater emphasis in the Bill. I hope that the Minister will be able to bring forward amendments to produce a little more balance in the Bill so that it does not so blatantly presume a battery solution.

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[Baroness Worthington]

My Lords, the amendments in this group do two things. They change the word “may” to “must” throughout the Bill and they seek to introduce a time limit against which the Government must produce the regulations mentioned in the Bill. As I hope I was able to convey in my opening remarks, we feel that the Bill has not represented a judicious use of parliamentary time. It is incredibly lightweight. Even the things we are debating today are purely enabling powers: there is nothing in the Bill that compels anybody to do anything at any time. I would hate anyone to leave this process thinking that this is in some way a step forward in our becoming world leaders in energy transition; it is anything but. It could be accused of being simply window dressing.

It would be lovely for this Government to end this parliamentary Session by saying, “We have passed a Bill on autonomous, automatic or electric vehicles; aren’t we great?” Anyone who does not then look at the detail might think, “That’s very progressive of them; that sounds very green”, but in reality this is merely a collection of incredibly small, narrow measures which “may” be enacted, should the Secretary of State wish to do so: nothing in the Bill compels anyone to do anything. The intent of these amendments is to at least say that these regulations will be passed; otherwise, why are we here? What are we doing? We have no sight, at the moment, of any draft regulations. That is regrettable, given that the Bill started life as a modern transport Bill several years ago, possibly—I am losing track—yet we still have no detail from the department as to what the regulations will contain. It is simply not good enough, given the amount of money and resource that this is taking at a time when time is so scarce. Given the preoccupation with Brexit, it is, frankly, a dereliction of duty.

So we are seeking to add something to the Bill, otherwise it really is quite a pointless exercise. With Amendment 101 we are saying that the regulations really must be published within a year of the passing of the Bill. I hope there will then be a consultation process on the regulations and a year should be enough time for the Government to conduct that consultation and issue the regulations so that the industry knows where it stands and is able to move forward and make investments. I am sure it will not have gone unnoticed by many in this House that industry is having a rather tough time at the moment making investment decisions in Great Britain. The reasons are fairly obvious, but one thing we can do is give it some certainty around our leadership on green measures and the fact that we are intent on transforming our energy sector, including transport. That would, I hope, unlock further investment, as we have seen in Sunderland with Nissan, in the future of transport, not yesterday’s technologies. This is an important issue to discuss. I look forward to hearing the Minister’s response. I would really like to hear when we can expect draft regulations to be published and when we can see the detail. I would like to hear some reassurances that these are not just enabling powers but there is an intent to use them and to bring those regulations forward. I would like a sense of the timeframe.

It was stated in response to the previous debate that the legal advice is that there is sufficient clarity in the Bill for us to assume that hydrogen vehicles and hydrogen charging are included. Frankly, as with the rest of the Bill, I am not persuaded that that will pass muster. Investors do not have clarity from the Bill. If the enabling powers on the large fuel retailers are to be taken and enacted and we are going to require them to put in electric charging, are we also going to require them to put in hydrogen charging? Is this just an exercise in signalling or are we seriously going to do this? If we are, we need to see those regulations and they need to be changed to “must” rather than “may”, and we need to see a timeline; otherwise, nobody has any certainty and the industry will see investment drying up, as it is already. I look forward to hearing the Minister’s response. I beg to move.

[Lord Campbell-Savours]

My Lords, this is an extremely important amendment. I say that as a result of going to that dinner last night in the House of Commons which my noble friend on the Front Bench referred to. It was quite an extraordinary occasion. I did not realise how utterly disorganised this whole sector is. We had all the leaders from the industry around that dining table explaining to us what their problems were and in some cases being quite defensive about how they were able to handle those problems. I was shocked because I had never been to a parliamentary dinner where people had become so angry. There was one lady there from the Commons who was so angry that she could hardly contain herself. She had bought an electric-powered vehicle and wanted to sell it off because she was so dissatisfied with the service.

As I watched what was happening, it dawned on me that the people round the table were in two groups. There were those who wanted fiercer regulation, the backing of the law and help in ensuring that a structure was put in place. Others around the table were the deregulators, who did not want any sense of regulation and thought it could be left to the market. My conclusion after two and a half hours at this dinner was that the regulators were winning the discussion because it became obvious that unless there was greater regulation—and, I might say, real regulation, not guidance; there was even a fierce argument at the table about guidance versus regulation—very little would happen and, indeed, the industry could potentially be destroyed.

I went to that meeting last night thinking, “I’m going to have an electric vehicle in two or three years’ time”. I will not now, not after what I heard last night. Anyone listening to that discussion would have drawn the same conclusion. I have great hopes for the future of electric power. I spoke at Second Reading on this matter and strongly advocated the case. I passionately believe that we have to go down that route. But the state has to be prepared to intervene.

The noble Baroness, Lady Worthington, is concerned that it is all “may”—it may not happen, we do not know what will happen at what stage and there is no timetable. Ministers have to be much clearer and stronger in their resolution. It might well be that the discussions with the industry to date have been rather loose. They have not really tried to tie down Ministers in taking decisions on the way forward. Real decisions have to be taken soon; for example, on charging points. In the consultation document there was reference to inter- operability, easy public access, 24-hour service and maintenance, accountability of information on charging points, and standardisation of equipment. All these matters need dealing with now. We do not need delay. I say to the Minister, and I am not exaggerating: this industry could be gravely damaged unless there is a far more open discussion and real intervention by the Government to support it at an early stage.

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[Baroness Randerson]

I am pleased to move Amendment 44. The dinner that the noble Lord, Lord Campbell-Savours, referred to was indeed a lively occasion—much livelier than the average dinner in this place, I believe, in its conversation and opinions. The noble Baroness, Lady Worthington, is correct to say that the Bill lacks a spine. It is a collection of good ideas, probably, but it is not a strategy.

Addressing range anxiety among electric car owners is fundamental to the Government having a flawless strategy for encouraging people to buy these vehicles, and therefore for them to be manufactured. The whole population benefits from some of us buying electric vehicles. The amendments in this group relate to the availability of charging points and their ease of use, which is really the crux of the issue. Where they are placed is something we will come to in other groups of amendments, but this is a simple provision.

When you drive along and see on your in-car computer screen that there will be a charge point in 10 miles, it is at the very least supremely frustrating to find when you get there that it is not working. It can be a huge issue if you go on a long journey. I have told before in this House of the occasion when I went from one motorway services to another and another before I found a rapid charge point. I got a fast charge in the second and third ones, which was enough to send me to the next motorway services, but that is not the way to encourage people to own electric cars. It can be worse than really annoying. It can be a fairly dangerous situation to find yourself without any electricity in a lonely public car park, where there should be a charge point but it is not working. Charge points are almost always somewhere quite lonely. They are usually badly lit and, unlike getting petrol or diesel, you do not have a nice warm roof over your head. Standing out there in the rain and wind can be a pretty dispiriting process. When you get there, you therefore need the confidence that it will work.

This matter is easily addressed and I urge the Government to take these amendments seriously. I hope the Minister will accept them, or accept their principle and bring forward her own amendments. It is stating the blindingly obvious to say that you need some kind of measure in place so that when contracts are let, there is an obligation for these charge points to be working for a certain specified percentage of time, so that there is a commitment to repair them when they break.

The other side of trying to use a charge point is that almost all of them require you to have an app or be a member of a group. I think I have six or seven such apps on my phone, to be ready for all eventualities. If there are that number of apps on your phone, you do not use any one of them that often. This means that often, you turn up somewhere, only for the phone to tell you that you need to renew the app because you have not updated it and it will not work. My Amendment 46, which deals with,

“the use of contactless payment”,

seems the simple way to ensure that you have a straightforward way of paying that would be available to virtually everyone. We all know the effectiveness of contactless payment, which has worked brilliantly in beginning to replace Oyster cards in London. It has a simplicity about it.

I am not suggesting that these groups we join up to should not exist or that the apps could not be used. There could even be a financial or some other incentive for joining these groups, rather than having contactless payment. However, I am suggesting that there should be an obligation to make the charging points easy to use by ensuring that you have the fallback position, at the very least, of contactless payment. I will leave it there for now, and I beg to move.

[Lord Campbell-Savours]

My Lords, I listened carefully to the Minister’s previous response. His argument seemed essentially to be based on the need to ensure that we do not move too fast because there may be technological developments, which would mean that we had perhaps taken the wrong decision in the regulations. This is in the event that they were—in his view, obviously—prematurely introduced.

Let us go through the amendment. It mentions:

“performance standards for public charging points”.

Why can we not set those minimum standards on the basis of the technology that applies now—not what may apply in future, but what applies now? Standards will not go down in future; they will go up. The next thing the amendment requires is,

“procedures to be put in place to repair faulty public charging points”.

What is wrong with that? We have charging points, and there is a problem with repair. Why can we not have regulations requiring the suppliers of such equipment to ensure that it is maintained properly? That does not require technological developments.

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[Baroness Sugg]

My Lords, I am very sorry that my noble friend and I missed that wonderful dinner, to which I think all noble Lords were invited last night; our invitations must have been lost in the post. The Government’s aim is to develop our infrastructure so that current and future drivers of electric vehicles can locate charging infrastructure that is affordable, efficient, reliable and easily accessible. The amendments, understandably, seek to improve availability and reliability.

Most government-funded charge points started out as being free to access, but payments have been gradually introduced over the years. Taking a payment in exchange for charging is a crucial step in the development of a long-term sustainable business model for charge point operators that will in turn lead to greater choice and improved future reliability of the network. Of course I agree that reliability is a critical issue, but we think that the market is developing to meet consumer expectations about charge point reliability. We welcome the fact that a number of charge point owners currently report on their level of reliability. The noble Baroness, Lady Randerson, mentioned Zap-Map.com, which incorporates a real-time feed that drivers can use to report on their recent charging experiences and report out-of-action charge points. As this market continues to develop, it is clear that operators will want their charge points to be functioning and accessible to attract customers, and indeed to receive payment.

Some operators are already providing information voluntarily, and as the market develops all may do so. However, should the Government need to intervene in this area, powers can be introduced under Clause 11. As currently proposed, this could require charge point operators to make reliability information available in open-source formats, which could be used to improve the consumer experience. Clause 11 also specifically mentions,

“whether the point is in working order”,

and making this information available will help to incentivise charge point operators to maintain working charge points and to ensure that they can be held to account by customers. I agree with the noble Baroness that for the infrastructure to work, the charge points have to work, and people need to feel confident that they will be able to charge their car—so I agree with the intent behind the amendments.

The noble Baroness also proposes an amendment on contactless card payments. Again, we absolutely recognise the importance of having easily available payment options to encourage the uptake of these vehicles. We have seen progress in this area. Since 2017 regulations have been in place for new charge points to ensure that they are available without the need for any form of membership. This applies to all new charge points from last November, and all existing charge points will need to meet that requirement by November this year. In the policy scoping notes contactless payment is one of a number of potential access or payment solutions, but we are not sure about mandating for this in primary legislation, which could risk forcing charge point operators to overhaul their entire network for a specific access method that may not be the preferred solution by drivers or industry, and may well be succeeded by another form of access. We want to consult on that. In advance of introducing any secondary legislation we will consult drivers and operators before proposing a minimum defined access method. If the preferred option is through contactless payment—which, I acknowledge, it may well be, so that people can easily pay for charging—that would be included in the regulations.

Amendment 50, proposed by the noble Lord, Lord Berkeley, which was mentioned by the noble Lord, Lord Campbell-Savours, rightly seeks to ensure that the Secretary of State has regard to innovation, customer choice and competition when bringing forward regulations under this clause. Those three things should always be at the heart of the Government’s policy-making, and will underpin any regulations brought forward under this, and indeed any other, clause.

As I have said, I agree with the intent behind all the amendments, and I will consider them further.

[Lord Campbell-Savours]

Before the Minister sits down, Clause 11 refers only to the provision of information. What we want is action. If no action is taken as a result of the provision of information, it is a waste of space. Why cannot some of the amendments be taken away by the Minister to her departmental officials before Report—at least those which are in no way affected by technological development—to see whether it might be possible to accept one or two of them? That would immediately affect people’s ability to secure the service that they expect when they call at one of these charge points.

[Baroness Worthington]

I reiterate that we must at least acknowledge that it is not good enough to have nearly one in 10 of these charge points in the vicinity of this House non-operational. Surely the Government should be doing more to investigate why that is the case and to ensure that regulatory powers are introduced to insist that they are maintained. It is just not good enough. We would not expect that to be allowed in any other form of public infrastructure. We are not asking for it to be in primary legislation, we are asking simply for power to be taken to make regulations to require that they be maintained. Given the Government’s apparent love of these enabling powers, I cannot see why they would not take one to require that the charge points are maintained. They are expensive and people rely on them.