Motor Vehicles (Compulsory Insurance) Bill

Mike Kane Excerpts

3rd reading
Friday 28th January 2022 Commons Chamber

[Anthony Browne]

I completely agree. I declare another interest. I used to be Europe editor of The Times and I lived in Brussels for many years. I used to drive around across borders. If you drive for a couple of hours from Brussels you get into Luxembourg. Another half an hour and you are in Germany. Within 10 minutes, you can drive between France, Germany and Luxembourg: you are crossing borders the whole time. From that point of view, one can understand why one would want some co-ordination between insurance policies and so on. In the UK, we are an island. That is a very different position and different motoring rules apply. Often, the EU would have motoring rules, for example regulations on child seats in cars, that might have made sense if one lived in Luxembourg and drove into Germany and France every day and would not want to have the different regulation of child seats. In the UK, however, there is no particular reason why we should have the same regulation for child seats in cars as there is in, say, Poland.

[Mike Kane (Wythenshawe and Sale East) (Lab)]

We drive on the left.

[Anthony Browne]

We do. Clearly, people do drive from what is now the EU to the UK, but the volume of traffic is very low.

I want to raise a point about why we ended up with this European Court of Justice ruling. As a Europe editor of The Times, I wrote various think-tank reports about EU regulations and structure. I advised the Government and was involved with European law-making for about 20 years. In the Lisbon treaty, there is the principle of subsidiarity. We do not talk about it much in this place. When Margaret Thatcher was Prime Minister, she talked about it and everyone scratched their heads saying, “What is subsidiarity?” The basic principle is that one should make laws at a European level only where necessary, for example on cross-border issues such as pollution or trade. I cannot see any argument for why the insurance of golf buggies needs a pan-European law.

--- Later in debate ---

[Mike Kane (Wythenshawe and Sale East) (Lab)]

What an excellent finish to the contribution from the right hon. Member for Hemel Hempstead (Sir Mike Penning). I will get on to the £50 bonus in a few moments.

I congratulate the hon. Member for Wellingborough (Mr Bone) on securing progress for his Bill and on selflessly putting himself forward to be the Brexit dividend Minister. No wonder he has been mounting a full-throated defence of the Prime Minister on the news channels over the past few days. Those things are possibly connected.

The hon. Gentleman did a good job of explaining the background of the Vnuk case and its consequences for motorists here. I thank him for that good explanation. I did not agree with everything he said but people will look back at the Hansard report and say it was a good contribution.

As has been made clear, we have operated under the scheme set out in the Road Traffic Act for many decades. It is proportionate and it works, although that is not to say we should not revisit it from time to time. The Government have intended to overturn Vnuk for quite some time. The cost of uninsured drivers is currently met by the Motor Insurers’ Bureau. The Government have estimated that the implementation of the ECJ ruling in the Vnuk case could cost policy holders £1.227 billion, or an average rise of around £50 for 25 million customers. I think that figure is right, but I will come back to it, if I may.

[Sir Mike Penning]

I say respectfully to the shadow Minister that that cost is being met not by the Motor Insurers’ Bureau but by motorists in this country. That is probably very important.

[Mike Kane]

It is indeed met by motorists, who are hard pressed in this cost of living crisis.

A few people veered slightly off the highway in the debate. There were terrific contributions from the hon. Members for Stourbridge (Suzanne Webb), for East Surrey (Claire Coutinho), for Loughborough (Jane Hunt), for Dudley North (Marco Longhi), for Vale of Clwyd (Dr Davies) and for South Cambridgeshire (Anthony Browne). I would love to talk about subsidiarity well into the night and juxtapose it with the principle of solidarity that the European Union was founded on—that is not a remainer case; it is just a great debate—but that is not for this place today.

Churchill said that a fanatic is someone who will not change their mind and cannot change the subject. We have seen a bit of that today. From some Government Members we have seen what I would call hubris—they are glad after the fact. Ask Odysseus how that worked out; I would be careful with it. The right hon. Member for Hemel Hempstead hit the nail on the head: there will be no £50 dividend. I shall say why—and I am going to veer off course.

There is an £11 billion pothole-repair backlog in this country. That is what is driving up motor insurance, because most damage is done by potholes. The Secretary of State for Transport has cut pothole-repair funding in Hertfordshire by 23%. The area represented by the Under-Secretary of State for Transport, the hon. Member for Copeland (Trudy Harrison) in Cumbria has the most reported potholes in the land. For the last 40 years—during which the seat belt rules have applied—the number of fatalities on our roads has gone down and down and down. In 2020, the number rose by 5%: we have reversed a 40-year trend. That is what will have an impact on people’s motor insurance, for sure. The £50 deficit—the “Brexit deficit”—is a complete misnomer. It will not affect motor insurance one bit. I think that that is what the right hon. Member for Hemel Hempstead was referring to, but let us see the insurers put that £50 in their policies! I doubt we will see that happen any time soon.

I could carry on, and name other factors that will have an impact on motor insurance—[Interruption.] It seems that Members do not want me to do that, but let me briefly talk about the highway code that we are implementing next week. There has been no promotion of it—absolutely nothing. The Government’s transport team are saying that they will get round to that in February, way after it has happened. We have major changes coming. What will that do to the accident ratio in the next few months, and what will it do to motor insurance payments? The cost of living crisis has been mentioned a great deal. How will the hike in national insurance payments affect the crisis that our people face? How will the depletion of our gas storage affect it?

Thank you, Mr Deputy Speaker, for allowing me to veer off track ever so slightly. I congratulate the hon. Member for Wellingborough on the Bill, but it is clear that there is much more work to do. We need to ensure that people who have to drive can afford their motor insurance and can afford to drive safely, and we need to look at the whole picture, in the round, of the damage being done to road maintenance and road safety. I look forward to hearing from the Minister about that.