Automated Vehicles Bill [Lords]

Mark Harper Excerpts

2nd reading
Tuesday 5th March 2024 Commons Chamber

[The Secretary of State for Transport (Mr Mark Harper)]

I beg to move, That the Bill be now read a Second time.

As hon. Members know, most journeys take place on our roads. About 86% are made by cars, taxis and vans, but in the over 100 years since the invention of the car, despite our vehicles becoming better, safer and now cleaner, one aspect of driving has remained constant: the driver has always controlled the vehicle. In future, things may be different. For all or part of a driver’s journey, self-driving vehicles will free them from that responsibility, improving the lives of the millions of people who are unable to drive; boosting connectivity for rural communities across the country; transforming freight, be it long haul or last mile; and above all, making our roads safer.

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

As the Secretary of State knows, insurance premiums have been going through the roof recently—the costs are astronomical. What impact does he expect automated vehicles to have on insurance premiums?

[Mr Harper]

If the hon. Gentleman will allow me to make a little progress, I will speak about how one centrepiece of the Bill and of our approach is the safety not just of the automated vehicle and its occupants but of other road users, particularly vulnerable road users. I will come on to that point; if the hon. Gentleman does not feel that I have covered it, he should feel free to intervene again.

We are on the cusp of a transport revolution, and Britain is very much at the wheel of that decision. British companies are developing the self-driving technology; British lawyers are developing the robust new legal frameworks that are being used; and British parliamentarians in this House and the other place can now agree regulation widely seen as among the most comprehensive in the world. The goal is clear: we want to make this country the natural home for the self-driving vehicle industry, and this Bill is the next stop on that journey.

[Ben Everitt (Milton Keynes North) (Con)]

It will not surprise my right hon. Friend that I am speaking up for Milton Keynes on this subject. This is a huge global opportunity for Britain, worth £350 billion, and Milton Keynes is often the testbed of this technology. It is a beautiful, vibrant city that is going places—except perhaps in the eyes of the producers of last night’s “EastEnders”—so does he agree that when we get this technology, we will be able to roll it out because we have tested it in places such as Milton Keynes?

[Mr Harper]

I thank my hon. Friend for speaking powerfully for his constituency. He is right: those developing this technology will want to roll it out carefully and thoughtfully, and they will want to do that in specific places in the United Kingdom. He has just made a powerful bid for Milton Keynes to be at the centre of that.

Gearing Britain up for a self-driving future has been the work of years. In 2015, our world-leading code of practice enabled self-driving vehicle trials in the UK. We passed the Automated and Electric Vehicles Act 2018, which codified insurance in this area for the first time and recognised the importance of that, as the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) said earlier. In that same year, we kicked off a Law Commissions review on a legal and safety framework for self-driving vehicles—

[Grahame Morris (Easington) (Lab)]

rose—

[Mr Harper]

Let me just set out what that review did, then I will take an intervention from the hon. Gentleman, who is an esteemed member of the Select Committee. It convened legal minds from across the country, launched three rounds of public consultation, sifted through hundreds of written responses and produced more than 70 recommendations, which now underpin this legislation.

[Grahame Morris]

I am grateful to the Secretary of State for giving way. These are really important points, as is the clarification sought by the hon. Member for Carmarthen East and Dinefwr on insurance liability. Can I ask the Secretary of State about the arrangements for the compensation of victims of any collisions that are caused by uninsured automated vehicles? He mentioned the Automated and Electric Vehicles Act 2018, but that legislation does not mention this point. This Bill represents an opportunity to address that. Will the Secretary of State set out how we are going to do that, or are we missing an opportunity?

[Mr Harper]

The hon. Gentleman is right to raise that point. We have arrangements in place for vehicles with human drivers who are uninsured, and we are working with the Motor Insurers’ Bureau on the arrangements that will be in place. I would envisage analogous arrangements for self-driving vehicles that are uninsured, to make sure that if they are involved in accidents, any victims of those accidents are able to receive reimbursement in the same way as happens now for the victim of an uninsured driver. We already have arrangements, and I would envisage analogous arrangements. We are already having those conversations, but if the hon. Gentleman has more to say on that, either today or in Committee, I will be delighted to hear from him—

[Grahame Morris]

rose—

[Mr Harper]

I am happy to hear from him again now.

[Grahame Morris]

I am grateful to the Secretary of State for that clarification, but this is a whole new world where we will be relying on AI, software and so on. How would an insurer prove that a vehicle was being driven autonomously rather than by a driver? Under the provisions of the Bill, would the insurer have access to the data so that they could analyse it and see whether an individual was in charge of a vehicle or whether it was being driven autonomously?

[Mr Harper]

I will come on to that in my speech, but I will answer the hon. Gentleman’s specific questions. From the point of view of any person needing to make a claim, the insurer will be liable whether the vehicle is in self-driving mode or the user is in charge. What happens subsequently, regarding whether the manufacturer, the software provider or whoever has to pony up the money, is a matter for the insurer to argue about with them. That will not impact the victim, who will be paid by the insurer.

On the hon. Gentleman’s important point about data, we discussed this last week when I met a roundtable of those involved in the industry, including road safety campaigners and those in the insurance industry. The Bill will ensure that the data can be shared, and the insurance industry is keen for that to happen so that it can properly price the risk. I will say more about this when I talk about the safety framework, but there is a real opportunity here because most road traffic collisions are caused at least in part by human error. The track record of self-driving vehicles shows that this is an opportunity to improve road safety, which is important not just for those who use vehicles but for other road users. There is a balance to strike here. We need to capture that benefit but also ensure that we do not leave anyone exposed without protection, as the hon. Gentleman rightly set out.

[Sir Greg Knight (East Yorkshire) (Con)]

On the point the Secretary of State has just been discussing, presumably the details of all journeys undertaken by automated vehicles will be recorded. Where will that data be stored, and who will have access to it? Could someone access that information for non-driving reasons—for example, someone involved in divorce proceedings or an employer in an employment tribunal?

[Mr Harper]

My right hon. Friend should note that data for these purposes will be protected in the usual way. Data has to be used for the purposes for which it was gathered. There are legal processes for who has access to it, as well as those we will set out specifically for driving purposes. The other things he mentioned will be governed by the usual laws that govern the use of data. I do not want to dwell on those specifics, but they are already covered by existing data protection legislation for the devices that people have in vehicles to monitor their progress or for mobile phones.

I would like to start with safety. Anyone stepping into a self-driving vehicle will reasonably ask: “Can this car consistently drive safety? Will the law protect me if there is an accident? Is the manufacturer regulated and can they be held to account?” Under this legislation, the answer to each of those questions will be yes. The Bill has been built on a bedrock of safety, protecting not just the driver inside the car but road users outside the vehicle.

As I mentioned in answer to the hon. Member for Easington (Grahame Morris), I chaired a roundtable with road safety groups last week and explained how we are holding self-driving vehicles to a higher safety standard than the average human driver, guided by principles we will soon consult on; how these vehicles must meet rigorous technical requirements before rolling off production lines and being authorised for our roads; and how we will tackle misleading marketing, with new offences for companies that seek to blur the line between true self-driving and driver assistance.

[Clive Efford (Eltham) (Lab)]

That gets to the nub of the point. Because these vehicles are going to be automated, they will be governed by an algorithm written by a human being somewhere remote from where an accident might occur. How do we determine whether the primary purpose of that algorithm is to protect the person in the car or someone outside the car, such as a pedestrian or a child crossing the road? How does the algorithm make a choice in those circumstances?

[Mr Harper]

We will consult on the statement of safety principles, which will set out the governing principles of the legislation. On the specifics, this will be about making sure that the manufacturers—those who create the software and those who put the cars together—have rigorous processes for testing and decision-making. Those systems will have to be authorised to be used in our cars, and it will be important to look at their data and their track records. As I say, in real-world situations where these vehicles are being used—for example, in California—the evidence suggests that they have a very good safety record that is much better than that of human drivers. There is a big opportunity here to have a safer road environment, not just for the users of the vehicles but for other road users.

I do not know whether the hon. Gentleman has had the opportunity to ride in a self-driving vehicle, but the data they collect of their surroundings is interesting. My personal observation is that the space they give when passing a cyclist, for example, is a lot more generous than that I have seen many human drivers give. Of course, those parameters are going to be set and regulated, and people will have to be assured that the vehicles are safe before they are on the road. Ultimately, the manufacturer will be legally responsible if they turn out not to be.

[Clive Efford]

I am grateful to the Secretary of State for giving way a second time. I agree entirely that, overall, roads will be safer with automated vehicles, but there will still be accidents. My question was specifically about where there is an accident and there is a choice to be made about protecting the person inside the car and injuring someone outside the car. How do we determine what takes priority in those circumstances?

[Mr Harper]

We will consult on the safety principles, but with some of this stuff we have to look at the way the vehicles make decisions. We cannot possibly legislate for every single set of circumstances. In the same way, when there is a collision involving a vehicle with a human driver, the driver will make the best decision they can in the specific circumstances. Sometimes those situations lead to legal conflict and then people have to make a judgment. We cannot legislate for every single one of those circumstances in advance. What we can do is make sure there are robust systems that make good decisions based on the best data, and then look at the track record. We will also set up a regulatory system whereby any accident involving an automated vehicle will be properly investigated.

The hon. Gentleman raises an important point. It is essential with this legislation that we earn the public’s trust and win their confidence. That is one of the reasons why we have been so clear, and why we accepted the amendments in the other place, about putting safety at the forefront of the Bill. If people are not persuaded of that, this technology will not make much progress.

[Several hon. Members rose—]

--- Later in debate ---

[Mr Harper]

I will take an intervention from my hon. Friend the Member for North East Bedfordshire (Richard Fuller) and then make some progress before continuing to take interventions.

[Richard Fuller (North East Bedfordshire) (Con)]

The Secretary of State is taking a safety-first approach to this legislation, and that seems to be the will of the House. I have used a driverless vehicle operated by Waymo, a driverless Uber-style service in the United States. He will know that those vehicles have more cameras—more eyes—looking in more directions more of the time than it would be possible to achieve even with 100 drivers sitting in a single vehicle. My concern is whether, in his effort to put safety first, he is compromising the potential for economic growth. In America, most of the force for change with automated vehicles is being driven by the leading global technology companies. What discussions has he had with those companies in preparation for the Bill? How comfortable are they with the Government’s approach?

[Mr Harper]

I have discussed the legislation with a number of those companies—both UK companies and those in the US—and I am pleased to assure my hon. Friend and the House that they too recognise that safety is incredibly important. They all understand that they have to be able to operate within a legal framework set by legislators who are ultimately accountable to the public, and that they have to take the public with them. As ever with these things, whatever the track record of existing vehicles and drivers, because this is new technology, people will be sceptical about it, and anything that goes wrong will have a brighter light shone on it. The industry is very aware of that and, I think, very happy to work with us on those issues.

[Several hon. Members rose—]

[Mr Harper]

I will take one more intervention and then I will make some progress.

[Jim Shannon (Strangford) (DUP)]

I will be honest, Mr Deputy Speaker: I am not very technically minded. I like the idea of a manual car with five or six gears and reverse. In the rural community that I live in, I am very happy with that. I have a bit of hesitation about automated vehicles. Thinking about young drivers—this is really important, because the Secretary of State mentioned blurred lines—we have to make sure that everyone who learns to drive has full capacity to drive any vehicle, and does not think they can get into an automated vehicle and just sit there and do nothing. It is really important that everyone is subject to the same rules. Can he confirm for anyone who thinks that in future they will be able just to sit in the back of the car that that is not the case, and that they will have to learn to drive in the way that we all have over the years?

[Mr Harper]

I will come to that in a second—it will become clear in the next section of my speech—but I can tell the hon. Gentleman that the Bill is about giving people choices. If people want, as many will, to carry on driving their existing vehicles in the traditional way, that is absolutely fine and no one is going to try to stop them. To be very clear, the hon. Gentleman can carry on driving for as long as he wants to and is safe to, and no one is going to try to stop him. Certainly, I am not going to try—I wouldn’t dare.

On the legal concerns—this will address the point about the driving test, too—the Bill redefines our legal relationship with road transport. As soon as someone turns on a self-driving feature, legal responsibility for how the car drives will transfer to an authorised self-driving entity, or ASDE—not a very catchy acronym, admittedly, but that is what they are called. That could be a manufacturer or a software developer but, crucially, it will not be the human driver, who will assume a new status. As a user in charge, they will still need to ensure that the car is roadworthy, and they will need to reassume control if necessary. That answers the hon. Gentleman’s question: someone will still need to be in possession of a full driving licence and able to reassume control of the vehicle if required, but they will be protected by law from any offences while the car is driving itself.

Some journeys, either in private cars or on self-driving transport, will be fully automated, and a human will never need to take control; they will be, in essence, a passenger. My hon. Friend the Member for North East Bedfordshire (Richard Fuller) mentioned the example of Waymo cars in the US. Those are operated as taxis, with no driver present, and the human is never expected to take control; it is classed as a “no user in charge” journey. In those circumstances, someone would not need a driving licence, because they would never be expected to drive the car, in the same way we are not expected to drive a taxi or private hire vehicle. Those legal concepts will have a seismic impact.

[Wera Hobhouse (Bath) (LD)]

This is the future, and it is both quite exciting and quite scary. We have to get our heads around it and make sure that we get this right. On what the Secretary of State has just been describing, is it basically the difference between someone taking a taxi and driving their own car? If there is an accident in a taxi, the taxi company is responsible, not the passenger.

[Mr Harper]

If someone is using a vehicle for a “no user in charge” journey for which they are, in effect, the passenger and there is an accident, it will be totally the responsibility, in all circumstances, of the person operating the vehicle. Where someone who is driving the car for part of the time switches on the self-driving features and something happens while those features are activated, that will be not their responsibility but that of the manufacturer or the software developer. If someone is in control of the vehicle and the self-driving features are not activated, they retain responsibility.

One of the things that we will have to do is educate people about the difference, and we are being clear to manufacturers that there is a big difference between a self-driving feature and driver assistance. Under driver assistance, the driver is still fully legally responsible for the vehicle, but with some technological help; when the self-driving features are activated, they no longer have legal responsibility.

[Wera Hobhouse]

Is there not potential for a legal conflict between a driver who says, “I was in self-driving mode,” and a company that says, “No, it was switched off”? Does the Secretary of State see that it might be very difficult to establish what happened in such circumstances?

[Mr Harper]

Potentially, but that is exactly why the earlier question about data is very important. These vehicles generate a huge amount of data and one part of the authorisation process will be making sure that that data is properly managed and there is proper access to it by the investigators of any potential accident and the insurance industry to establish exactly what has happened in such circumstances.

[Iain Stewart (Milton Keynes South) (Con)]

rose—

[Mr Harper]

I give way to the Chairman of the Select Committee on Transport.

[Iain Stewart]

I want to build on the question from the hon. Member for Strangford (Jim Shannon) about the situation where a driver is in control of the car at some point and at other points the car is autonomous. That will presumably result in drivers becoming less experienced, as they will not accumulate as much knowledge and experience of driving. When the automated features switch off and the driver needs to take control, those will be potentially immediate and challenging circumstances. Is my right hon. Friend assured that the driving test and refresher courses will give drivers sufficient capacity to take over in those circumstances?

[Mr Harper]

My hon. Friend raises a good point. I am very comfortable with the driving test; it continues to be updated to make sure drivers are familiar with features such as satnavs, and the new technology will be added. The wider question about how often drivers drive and how experienced they are of course arises now. Someone can take a driving test and not drive very much but occasionally hire a vehicle, and we hold them to the same standard as those who drive day in and day out; they are still responsible. There might in these circumstances be a question about whether it would be sensible for people to take refresher courses and do further training, and we will want to monitor that and determine whether we should legislate for it or issue guidance. It is an interesting point for us to keep an eye on.

As well as the legal issues, making driving more convenient in this way also makes it potentially much more accessible, by for example giving those who cannot drive at the moment, such as the 340,000 people registered blind or partially sighted, new options to travel independently, opening doors to economic and social opportunities that have thus far remained closed. Interestingly, in the United States, where this technology has been rolled out earliest, it is those groups who have been most vocal in arguing for the technology, because it changes their lives for the better and opens up their opportunities.

The third area is learning and enforcement. This technology will get stronger, smarter and safer over time. The safety data will be collected by the vehicle, monitored by its operator and scrutinised by a Government regulator, which means we can take enforcement action when things go wrong or through sanctions and suspensions if a company withholds data. The Bill also includes measures to investigate incidents independently and ensure that lessons are learned. I have spoken about the context behind the Bill and addressed some of the key components and will turn now to some of the benefits self-driving vehicles will bring.

[Alexander Stafford (Rother Valley) (Con)]

This is an exciting Bill about an exciting future. I have listened carefully to what my right hon. Friend has said about who will ultimately be responsible if there is an accident. My understanding is it will always be the manufacturer and will never be the person who owns the car. In my constituency, as in many others, large numbers of people like modifying their cars and I am sure when autonomous vehicles are introduced people will want to modify those as well. They might change them in ways that ultimately slightly limit or diminish some of the safety features put in when the car was built, so who will be ultimately responsible in such circumstances? People may make modifications without knowing the implications, potentially, for diminishing the safety of the car. Will the manufacturer still be responsible when the car is modified, or will it be the owner?

[Mr Harper]

My hon. Friend raises a very important point that we must make sure is covered. Clearly, if people make modifications that alter the functioning of the self-driving features of the vehicle, we would either have to say that that was not acceptable or they would have to accept that the vehicle was no longer self-driving. There would need to be rules. The vehicle will go through an authorisation process to go on the road, and there will be things that people will be allowed to change and things that they will not. I suspect that manufacturers will be very clear that they will no longer be responsible for a self-driving vehicle if someone has modified it. As long as that is clear, that is fine, but people will have to accept that, as cars become more technological with more technology built into them, the days of being able to tinker around with them under the bonnet and alter things will be long past if we want that technological stuff to kick in.

[Alexander Stafford]

My question was not just about modification that may change the safety of the car but about any modification. If someone who owns an iPhone changes the screen, it is no longer under manufacturer warranty even though that does not affect how it works. If someone has modified their car and it does not affect a safety feature but there is then an accident, will the manufacturer be able to say that the car has been modified and that, even though the safety features are unchanged, it is therefore no longer its responsibility? Will the liability pass to the owner if the manufacturer decides it has nothing to do with it?

[Mr Harper]

These cars will have to be authorised by the regulator to go on the road, but my hon. Friend makes the good point that, as part of that process, what the user of the vehicle can and cannot do needs to be clear. I suspect there will be very limited things that they could do without affecting the operation of the vehicle, but it is good to put on the record that in the information provided by both the manufacturer and the regulator we must be clear about what the user of the vehicle can and cannot do to ensure it can be driven safely.

Despite Britain having some of the safest roads in the world, the levels of serious injury and road deaths remain too high. That could soon change. If we can eliminate driver error, which is involved in 88% of road collisions, we could get to the point where self- driving vehicles are a game changer for road safety: they do not drink and drive, they do not get stressed or distracted, they do not speed, get tired, bend the rules of the road or push their luck.

Self-driving vehicles will save lives and we cannot ignore the economic impact either. According to industry estimates, 40% of new cars will by 2035 have some self-driving capability. This is a growing global market, Britain’s share of which could be worth £42 billion and generate 38,000 skilled jobs in areas ranging from cyber-security to AI, and thanks to Government support, our self-driving vehicle industry is not only thriving but recognised the world over.

[Grahame Morris]

I thank the Secretary of State for his reassurances about safety. I do not think it is all one-sided, because another aspect of safety is cyber-safety, which we do not need to worry about with a traditional car. Automated vehicles are extremely vulnerable to cyber-attacks from hackers and potentially from terrorists, especially as the software and technology age. What are the Government going to do? Are they going to commit to establishing the necessary regulations to ensure cyber-security for automated vehicles is robust and that protections continue over the lifetime of the vehicle?

[Mr Harper]

The simple answer is, yes, we are going to do that. The hon. Gentleman is right to raise cyber-security as an issue, and it is of course an issue today, because many cars today have electronic features from keyless entry to navigation systems. Existing cars are vulnerable to being hacked. Cyber-security is important and we and the industry are working with the National Cyber Security Centre. I agree that cyber-security will be very important, but it already is important.

[Clive Efford]

I agree with what the Secretary of State said about tinkering and that nullifying any insurance, but we have also just experienced the Horizon scandal, where the manufacturers themselves had access to the technology. What security do drivers have from the designers of the software governing these cars covering their own backs?

[Mr Harper]

One of the things we will have in place is a duty of candour. We will also set up a regulatory process with investigations of every self-driving vehicle involved in an incident. Importantly, manufacturers will be legally obliged to have that duty of candour to disclose the information, so that these issues can be got to the bottom of. The hon. Member raises a specific case that I will not comment on, and there will no doubt be learnings from that case, but the regulatory approach we are setting up will deal with the issue he just raised.

[Sir Greg Knight]

Will the Minister give way?

[Mr Harper]

Let me make a bit of progress; I want to try to get to a conclusion, because others wish to speak, but I will try to get back to my right hon. Friend in a sec.

In 2019, Google’s Waymo made the UK its first European engineering hub for self-driving technologies. Bosch and ZF, among others, are investing in the UK, drawn by our highly skilled workforce. CAM Testbed UK, a unique cluster of five facilities between London and the west midlands, has received £200 million of Government and industry funding, and we have put £66 million into scaling up self-driving mobility ideas, from buses in Scotland to HGVs in Sunderland, with a further £150 million announced as part of our advanced manufacturing plan. We do not want to lose momentum, and we want to make sure that we push the industry to realise the full benefits of this technology. I hope that the Bill brings certainty to investors, clarity to manufacturers, confidence to the public and demonstrates Britain’s strongest commitment yet to a self-driving future. Before I conclude, I will take an intervention from my right hon. Friend.

[Sir Greg Knight]

The Secretary of State has been generous in giving way. Just to clarify the point, there could be circumstances where a vehicle is in fully auto mode, but the owner bears some responsibility. For example, if an automated vehicle is on full auto and is involved in an accident, but it is then discovered that all the tyres are without tread, surely in those circumstances the owner would bear some blame.

[Mr Harper]

I set out at the beginning that in circumstances where a user is in charge—where they are not purely a passenger with a company providing a taxi or private hire service—and the vehicle is in self-driving mode, the manufacturer or software provider is responsible for the conduct of the vehicle, but the user in charge is responsible for such things as the physical condition of the vehicle and the tyres, and they retain that responsibility. The balance of which of those things caused the accident will be determined in exactly the same way as currently.

In conclusion, as I think the hon. Member for Bath (Wera Hobhouse) set out, self-driving vehicles will provoke excitement from some and nerves from others, but for most of us, it is a combination of the two. Clearly it is an opportunity, but there are some risks. I know that first-hand, not only having visited California-based Waymo and ridden in one of its self-driving vehicles, but having done a journey from my departmental office to this House in a self-driving vehicle designed by the British company Wayve. It was interesting, as it went expertly through busy streets and responded quickly to things. It was a rainy day and a lot of people were darting in and out of the traffic—probably not sensibly—but the car responded safely. I realised the enormous potential of this technology, not just as a growing economic sector, but for a future where transport is safer, more convenient and more accessible. This Bill is a crucial step towards that future, and I take great pleasure in commending it to the House.