Oral Answers to Questions

Norman Baker Excerpts

Thursday 23rd June 2011 Commons Chamber

[Mr John Spellar (Warley) (Lab)]

3. What steps he is taking to improve the flow of traffic in urban areas.

[The Parliamentary Under-Secretary of State for Transport (Norman Baker)]

We are providing local authorities with the right tools and the freedom to use them effectively. Our £560 million local sustainable transport fund will contribute to local schemes that support growth and reduce carbon.

[Mr Spellar]

Last week, in answer to a written question that I tabled on street works, the Minister stated that an independent report had found that legislation was “fit for purpose” but local authority practice needed to improve. He can certainly say that again! He only has to step outside this building to see the chaos caused by nearby street works that continue for week after week with no work actually being done, and that pattern is repeated across London and the rest of urban Britain. What is he going to do to create a sense of urgency about freeing up the roads—and, as a start, will he get Boris to focus on his day job and start sorting out London’s roads?

[Norman Baker]

All of us have considerable sympathy for those who encounter street works, which are a nuisance to motorists and pedestrians alike, and which cause congestion and adversely affect business. We are keen to take steps to improve matters, including by developing regulations to allow targeted lane rental schemes, cutting red tape from the private scheme approval process, and considering utility works overrun charges.

[Neil Carmichael (Stroud) (Con)]

4. When he expects the Swindon to Kemble railway redoubling project to commence.

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[Nic Dakin (Scunthorpe) (Lab)]

5. What progress has been made on the review of toll charges on the Humber bridge.

[The Parliamentary Under-Secretary of State for Transport (Norman Baker)]

The second phase of the Humber bridge review was launched on 14 June, and we are now in the process of meeting stakeholders to gather views and ideas. As part of that process, the Economic Secretary to the Treasury and I intend to meet interested Members, including the hon. Gentleman.

[Nic Dakin]

I thank the Minister for his reply. Humber bridge tolls are essentially a tax on local people and local businesses. Is it right that at this time, with this review still going on, there should be an 11% hike in those taxes?

[Norman Baker]

I understand the hon. Gentleman’s concern, of course, but the fact of the matter is that the Humber Bridge Board applied for an increase. I decided unilaterally to have a public inquiry, where people’s representations could be heard. The inspector came back with a clear recommendation in support of the board’s application for an increase, and there is no reason for Ministers to take a contrary view. What I would say, however, is that there has been no increase in the toll since 2006.

[Martin Vickers (Cleethorpes) (Con)]

Notwithstanding the decision of the Humber Bridge Board this week to implement the recommended increase from 1 October—just six or seven weeks before we anticipate the review being completed—does the Minister agree that, irrespective of the outcome regarding the tolls, the governance of the bridge clearly needs revising so that residents and the local community have a clear spokesman? At the moment, councillors are almost forbidden from taking part.

[Mr Speaker]

Order. We are immensely obliged to the hon. Gentleman.

[Norman Baker]

I sympathise with the point that my hon. Friend is making. The governors’ arrangements for the bridge are part of the review that we are undertaking. We inherited an unsustainable position from the previous Government in relation to the bridge. The Economic Secretary to the Treasury and I are very concerned about this and we are determined to make progress if we can on this matter and others.

[Diana Johnson (Kingston upon Hull North) (Lab)]

In the general election, the Liberal Democrats ran a “Ditch the Humber Bridge Debt” campaign. In the light of the Minister’s decision to endorse the 11% increase, should he not think again? Is this not another example of the Lib Dems’ promises in the manifesto being broken now they are in government?

[Norman Baker]

I think that what the hon. Lady wanted to say was that we have decided, since the election, to offer a reduced interest rate on the Humber Bridge Board’s debt, which will save the board £48 million in interest payments over the next five years.

[Mrs Helen Grant (Maidstone and The Weald) (Con)]

6. What progress his Department has made on its consultation on High Speed 2.

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[Chris Evans (Islwyn) (Lab/Co-op)]

9. What recent discussions he has had with FirstGroup on the future of the First Great Western rail franchise; and if he will make a statement.

[The Parliamentary Under-Secretary of State for Transport (Norman Baker)]

Department for Transport Ministers and officials meet franchised train operators and their owners regularly. These discussions have included the decision which has been announced by First Great Western to exit the franchise in March 2013.

[Chris Evans]

On the electrification of the Great Western line, what action is being taken to ensure that the new franchisee works with Network Rail so that there is minimum customer disruption during that period?

[Norman Baker]

I assure the hon. Gentleman that that element is an important part of the forward programme that is occurring.

[Geoffrey Clifton-Brown (The Cotswolds) (Con)]

When the First Great Western franchise is retendered, would the Minister consider allowing a provision to allow sufficient capital investment to improve the car parking at Kemble, which is already at capacity?

[Norman Baker]

We are reviewing the full franchise process, led by my right hon. Friend the Minister of State. As part of the franchise consideration, we are looking at longer franchises that may include that sort of issue in due course.

[Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)]

Given the circumstances in which FirstGroup decided to relinquish the contract, how will the Minister address new franchises so that both the interests of the taxpayer and the welfare of passengers are heeded?

[Norman Baker]

That is an important and quite correct question, because the present franchise held by First Great Western was undoubtedly skewed towards the operator and away from the fare payer and the taxpayer. It is not a franchise that, frankly, the Government would want replicated. The whole process of franchise renewal is designed to eliminate that sort of unfair franchise.

[Duncan Hames (Chippenham) (LD)]

I certainly endorse the Minister’s most recent remarks. Residents in Melksham in my constituency will want to do a lot better from the new franchise than they did from the last one. Will he tell us when the public will have an opportunity to contribute to a consultation on the draft specification for the new Great Western franchise?

[Norman Baker]

I assure my hon. Friend that that matter has been fully taken on board. There will be a full consultation, including with residents of his constituency.

[Gavin Shuker (Luton South) (Lab/Co-op)]

FirstGroup also manages First Capital Connect, the franchisee operating the Thameslink route. As that franchisee has consistently low scores on customer performance, will the Minister give an assurance that the franchise will not automatically be extended in 2015 but that we will have an opportunity to put it out to tender once again?

[Norman Baker]

No decision has been made on that matter, although clearly there are franchise terms to be adhered to by the franchise holder, and requirements in law that must be adhered to by them and the Department. Performance is an important matter for the railway and it is something I take seriously, as does my right hon. Friend the Minister of State. I am aware of the concerns that have been expressed by passengers on the hon. Gentleman’s line and I shall be meeting railway operatives later today to discuss performance on the railway, including on his line.

[Mr Jim Cunningham (Coventry South) (Lab)]

10. If he will bring forward proposals to ensure the provision of accessible public travel information for blind and partially sighted people.

[The Parliamentary Under-Secretary of State for Transport (Norman Baker)]

The Department is committed to improving accessible transport information that is available to enable people to plan their full journey. For example, the development of a journey planner for spectators going to the Olympics has provided an important new opportunity to achieve high standards of accessible information.

[Mr Cunningham]

I thank the Minister for that answer, but has he had any discussions with the railway operators, particularly in relation to the implications of cuts in the staffing of railway stations for people with disabilities?

[Norman Baker]

Matters relating to individual stations are, of course, ultimately ones for the franchise holder, but we have offered financial support for new information systems at more than 170 railway stations since 2006 and audio-visual passenger systems have been mandatory for all new rail vehicles since 1998.

[Mark Pawsey (Rugby) (Con)]

I received a visit from my constituent, Lionel Broughton, on this matter with regard to buses. My local bus company, Stagecoach, has said that it will look at introducing visual and voice announcements on its fleet. Can the Minister do anything to give the industry a nudge?

[Norman Baker]

I am delighted to say that I wrote to the Confederation of Passenger Transport, which represents the main bus operators, on 23 May, to give exactly that nudge.

[Katy Clark (North Ayrshire and Arran) (Lab)]

11. What recent assessment he has made of the effects on household budgets of changes in rail fares.

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[The Parliamentary Under-Secretary of State for Transport (Norman Baker)]

As my hon. and learned Friend will recognise, the provision of bus services is primarily a matter for either commercial operators or local councils through tendered services, but we are cognisant of the importance of such services in rural areas and so have provided £10 million extra for community transport initiatives, and the local sustainable transport fund of £560 million allows investment in bus services in rural areas.

[Maria Eagle (Garston and Halewood) (Lab)]

This morning the Transport Committee asked the Government to withdraw their modernisation proposals for the coastguard and consult on revised plans. Its report is very clear:

“The evidence we have received raises serious concerns that safety will be jeopardised if these proposals proceed.”

Despite failing to do so before now, will the Secretary of State finally listen to coastguards up and down the country and abandon his dangerous and reckless plan to close more than half of Britain’s coastguard stations?

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[Lisa Nandy (Wigan) (Lab)]

T5. I recently met a group of my constituents from Hunter Lodge in Wigan, who told me that they are unable to travel together on train services throughout the country because most companies will carry only one wheelchair user at a time. Does the Minister agree that, 16 years after the landmark Disability Discrimination Act 1995, it is entirely unacceptable that that appalling situation should continue? What is he therefore doing to put pressure on train companies to ensure that the situation does not continue?

[Norman Baker]

I entirely sympathise with the hon. Lady’s point about disabled people having difficulty accessing some trains. There is a long-standing arrangement by which trains are expected to become compliant by 2020, and we are sticking to that and putting pressure on the train companies to accelerate it wherever possible. In addition, we are spending a good deal of money on access for all at railway stations in order to ensure that stations themselves are properly accessible to all people who want to use them.

[Peter Aldous (Waveney) (Con)]

T7. Can the Minister provide an assurance that the granting of a short-term, two-and-a-half year contract for the Greater Anglia rail franchise will not delay planning for the reintroduction of a through service from Liverpool Street to Lowestoft?

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[Kelvin Hopkins (Luton North) (Lab)]

Eddington identified congestion as a major and growing cost to the economy. Across Europe, towns and cities have light rail systems, which alleviate congestion. When are the Government going to put real political will and resource behind developing light rail systems across Britain?

[Norman Baker]

I am happy to say that we have done a great deal for light rail in the time since the general election, including authorising extensions to the systems in Nottingham, Manchester and Birmingham. I have authorised a tram trial project in Sheffield and commissioned a report internally on value for money in light rail, and that report is now on my desk. We recognise the values of light rail and we are taking it forward in a real way.

The Minister for Women and Equalities was asked—

Chiltern Railway (Penalty)

Norman Baker Excerpts

Thursday 16th June 2011 Written Statements

[The Parliamentary Under-Secretary of State for Transport (Norman Baker)]

I have decided to impose a penalty on Chiltern Railway of £350,000, having taken account of the outcome of a statutory consultation process.

The penalty relates to four breaches of the terms of the company’s franchise agreement which occurred before management of Chiltern transferred to Arriva UK trains in early 2011. These involved late delivery of two station improvements, and two timetable changes which were not properly authorised by the Department for Transport and which could, if un-rectified, have significantly reduced the value of the franchise to the Department. These breaches were in the context of the company’s poor performance in meeting a number of its detailed contractual obligations over a substantial period.

The Department imposes such penalties very rarely. When it does so, the aim is to encourage train operators to comply with their contractual obligations to the Department under franchise agreements. It should be emphasised that the penalty does not relate to Chiltern’s operational performance. As a number of consultees commented, the company is noted for its high standard of performance and customer satisfaction, and for the substantial investment it is making in improving services.

The penalty has been reduced from the proposed level of £500,000 in the light of the responses to the consultation, and in particular the welcome and clear assurances from Chiltern that it has stepped up its commitment and oversight at senior management level to ensure compliance with the terms of its franchise.

The receipts from the penalty will be retained by the Department and reinvested in transport. No decision has been made at this stage as to the final use of the funds.

Disabled Persons Transport Advisory Committee (Public Bodies Bill)

Norman Baker Excerpts

Tuesday 7th June 2011 Written Statements

[The Parliamentary Under-Secretary of State for Transport (Norman Baker)]

The cross-Government review of non-departmental public bodies, responding to this House in October 2010, decided that the public bodies landscape needed radical reform to increase accountability, cut out duplication of activity, increase transparency and discontinue activities that were no longer needed. Among the recommendations was that the Disabled Persons Transport Advisory Committee (DPTAC) be abolished.

The Public Bodies Bill is currently before Parliament. The Bill as drafted, would allow the Government to make an order abolishing DPTAC. If the Bill is passed with this provision in it, I am minded to make such an order. But before coming to a definite decision to do so, I intend to consult on the order and will make no final decision until I have taken into account the responses to that consultation.

In advance of this formal consultation I am inviting views from all those with an interest on what successor arrangements should be put in place if DPTAC is abolished. I am seeking to ensure that any successor arrangement will continue to provide my Department with consensual, pan-disability advice in a flexible way, and that any arrangement represents value-for-money.

I propose to invite comments on the options listed below:

Option 1—Rely on existing expertise in the Department for Transport policy divisions and agencies. Where ad hoc specific advice is needed, it could be sought by individual policy divisions from third party stakeholder groups, the transport industry, and experts. This would have minimal cost (although commissioned, consultancy advice could be expensive) but perhaps risks disability issues being overlooked.

Option 2—Establish a stakeholder forum, which could be convened and provide advice as and when issues arose. Again this would have minimal cost, but could again result in an increased consultancy bill. It might also be difficult to decide who to appoint to the forum. There are over 50 disability groups, and their interests sometimes conflict (e.g. the interests of the visually impaired, and those using mobility scooters). Achieving consensus could therefore be difficult.

Option 3—Rely on a cross-Government body to provide transport advice—for example the existing (non statutory) Equality 2025, run by the Department of Work and Pensions. This option should ensure that disability issues do not get overlooked. Equality 2025 is likely to be able to offer general advice—for example on transport access to the Olympics by disabled people—but would not be in a position to offer more specialist advice, for example the type of mobility scooter models suitable to be carried on public transport.

Option 4—Establish a non-statutory specialist body which would be flexible and accountable to Ministers. This may cost more than the options above, but should be less expensive than the current arrangements. However, a smaller body because of its size, may not cover all disability areas, and therefore could reduce the opportunities to provide pan-disability advice.

Option 5—A wide-ranging panel of experts from which members could be drawn, on an ad hoc basis, when specific advice is needed. A once a year meeting of all specified stakeholders could be held so that they all have the opportunity of voicing wider concerns.

My initial thinking is that option 5 would be the most appropriate path to take, but I would welcome views to inform my decision making in this area.

Strategic National Transport Corridors

Norman Baker Excerpts

Monday 23rd May 2011 Written Statements

[The Parliamentary Under-Secretary of State for Transport (Norman Baker)]

I am today publishing our response to the comments received in the consultation on proposals to amend the criteria defining strategic national corridors (SNCs) and confirming the action we will take.

The strategic national corridors were established in 2009 to define the network over which the largest proportion of strategic traffic—that is traffic travelling between the 10 largest urban areas, 10 busiest ports and seven busiest airports in England—moves around the country. The original definition also provided for connectivity between the four nations of the United Kingdom, but there was no specific provision for connecting capital cities.

We concluded that the routes linking Edinburgh, Cardiff and Belfast to the nearest urban strategic destination should be recognised for the strategic connectivity that they provide, and consulted accordingly. After taking account of the consultation responses I can now confirm that we are going ahead with this change.

Specifically, we identified two routes as having national significance: namely the Al between its junction with the A19 north of Newcastle and the Scottish border, providing a defined link to Edinburgh; and a route between Bootle and the Twelve Quays ferry terminal in Birkenhead, providing connectivity with Belfast. Again, after taking account of the consultation responses, I can confirm that these routes will henceforth become roads of national significance.

A number of other suggestions were made for changes to the SNCs, including specific proposals for increases in coverage. My Department will reconsider the scope and role of the SNCs once the LEPs are well established and their role in transport decision making is clear.

The consultation documents, including the consultation response, can be found on my Department’s website. An electronic copy has been lodged with the House Library.

Car Insurance Premiums

Norman Baker Excerpts

Wednesday 11th May 2011 Westminster Hall

[The Parliamentary Under-Secretary of State for Transport (Norman Baker)]

The Minister who normally deals with these matters, the Under-Secretary of State for Transport, my hon. Friend the Member for Hemel Hempstead (Mike Penning), is, unfortunately, elsewhere today, so I am happy to stand in for him. I discussed the matter with him prior to the debate and I will ensure that the comments made by the hon. Member for Birmingham, Hall Green (Mr Godsiff) are passed directly to him, so that he is aware of the specific points that have been raised today. My civil servants will confirm that I am not averse to disappearing off my brief to respond to points in debates. I am happy do so today in response to the points that the hon. Gentleman has made, in so far as I am able to within the responsibilities of the Department for Transport.

First, on the point that the hon. Gentleman made about the nature of the motor insurance industry, motor insurance is sold in a competitive market. There are many players, many different companies, and motorists are able to shop around and find the best deal that suits their needs. How premiums are set is a commercial decision for individual insurers according to the risks that they believe are posed by the drivers concerned, including factors such as experience, age, the type of vehicle and the driver’s record—for example, whether he, or she, has penalty points or disqualifications.

The Department is not aware of any evidence that the market is not working. There are certainly a large number of players who have, in theory at least, an opportunity to carve out a better position in the market by offering different kinds of products to different kinds of drivers. If the hon. Gentleman believes that there is evidence of collusion in the market, then he needs to bring that to the attention of the Competition Commission; it can investigate the market if it believes that there is prima facie evidence that collusion is taking place. I should say that the Department is not aware of any such evidence.

On the issue of postcode charging, the hon. Gentleman gave one or two striking examples involving the B11 postcode. I will ensure that my colleague the Under-Secretary is aware of that issue and that he takes it forward in his discussions with the motor insurance industry.

My experience of this issue relates to the year 2000, when there were problems with flood insurance in my constituency of Lewes in the aftermath of flooding, and with how the insurance industry responded to that challenge. It was certainly the case at the time that, in my constituency, the insurance industry applied a broad-brush approach to insurance premiums, based on postcodes—in that case, the BN7 postcode.

The BN7 postcode encompassed houses that had been flooded and houses, way up a hill, that obviously had not been and would never be flooded, even in the worst possible scenario. The houses up the hill were being invited to pay higher premiums because they were in the same postcode, so I entirely understand the hon. Gentleman’s point.

In that case, the insurance industry has moved on, and one or two companies were able to offer different premiums on a more selective basis, based on their detailed analysis of where was, and was not, flooded. They were able to carve out a market from that, which demonstrated that in that case the industry was working and able to respond, through individual initiative by individual companies, to the circumstances that pertained. I would have thought that there was an opportunity for an insurance company to offer more reasonable premiums in B11 in order to undercut those who apply a crude postcode approach. That is, however, a matter for the industry.

[Mr Godsiff]

I hear what the Minister says, and I know the logic of what he says. I assure him that my constituents are very price-conscious and, particularly in this day and age, very careful with their money. They have searched every alternative. If they had found an alternative, then believe you me, not only would they have taken out insurance with it, but they would have alerted all their friends to the benefits of going to another company. The alternative is not there, despite what the motor insurance industry likes to make out.

[Norman Baker]

I hear the hon. Gentleman’s comments. Obviously, he has looked into the matter in his area much more than we will have done at the Department for Transport. All I can do is repeat the comments that I have made. First, if he believes that there is collusion in the industry, he needs to draw that to the attention of the Competition Commission. Secondly, the Under-Secretary, my hon. Friend the Member for Hemel Hempstead—the relevant Minister for this area—will, I am sure, be interested in his comments and look at the issue of postcode charging. We would like to ensure that the motorist gets a fair deal and is not subject to improper procedures. We want, therefore, to ensure that motor insurance costs are kept reasonable, as far as it is possible for us to influence them.

We recognise that the high cost of motor insurance can cause a number of policy problems and we are working with the industry to help address them. People are dependent on their cars to travel to work, leisure facilities and so on, so this is an important issue for a great number of people. My hon. Friend the Under-Secretary is speaking with the insurance industry on a number of issues, particularly tackling uninsured driving, automatic access for insurers to check the driver’s record held by the Driver and Vehicle Licensing Agency, and addressing the problems of high premium costs faced by young drivers, to which the hon. Gentleman referred.

One area of concern for us is that people may be tempted to drive uninsured. The insurance industry estimates that uninsured driving costs each motorist approximately £30 on their premiums each year.

The Government introduced the continuous insurance enforcement scheme to deal with uninsured drivers. A new offence has been introduced of keeping a vehicle without insurance unless it is kept off the road and a statutory off-road notice declaration has been made to the Driver and Vehicle Licensing Agency. The new scheme regularly compares the DVLA vehicles database with the motor insurance database, which holds all motor insurance policies.

From that comparison, we are able to detect a greater number of uninsured vehicles, rather than relying solely on the police spotting uninsured vehicles in use on the road. We anticipate that the scheme could reduce uninsured driving by 15% to 20%, by taking out the softer evaders and leaving the police to target on the road hard-core offenders who continue to drive uninsured. Obviously, getting uninsured drivers off the road would be of benefit not only to road safety generally, but to those who legitimately and properly pay their insurance and who quite rightly feel aggrieved about having to pay extra in their premiums to deal with the uninsured. I think that that agenda is shared throughout the country—except by uninsured drivers. I hope that it is shared, so that we can get some fairness into the premiums.

The scheme is planned to commence in late June. Under it, keepers of vehicles that appear to be uninsured will be sent reminder letters by the Motor Insurers’ Bureau. If keepers take no action, they will receive a fixed penalty notice and a fine of £100, followed by enforcement action which, in extreme circumstances, might be wheel-clamping, impounding of the vehicle and, ultimately, prosecution. The DVLA will be responsible for enforcement action on behalf of the Secretary of State.

We are also concerned that significant rises in the cost of insurance might increase fraud, with some drivers prepared to make false statements about their driving record to obtain cheaper insurance, such as on how many penalty points they have, whether they have been disqualified and so on. The insurance industry estimates that 40,000 claims are declined already each year at the underwriting stage, on the grounds of non-disclosure or misrepresentation, and that 200,000 claims are adjusted.

Others might be tempted to declare younger drivers as named secondary drivers on their parents’ insurance when, in fact, they are the main driver of a vehicle. We are working with the insurance industry with a view to allowing it access to the driver details held by the DVLA. That will to help to tackle fraud and prevent situations in which drivers might give inaccurate information, consequently invalidating their insurance. The timetable for delivery is yet to be finalised with the insurance industry, but we expect a project of such a size to take between 18 and 24 months to complete all stages of the work, from specification and design to development, and through to a fully operational system.

[Jim Shannon]

Up until now, in response to the hon. Member for Birmingham, Hall Green (Mr Godsiff), the Minister has indicated that everything is about catching those who are not paying insurance and so on. The Government response has indicated nothing about incentives for those who drive well. Not only in Northern Ireland, but all over the United Kingdom, people who drive well and who have passed advanced driving courses should qualify for a reduction in their insurance risk. Is that something that the coalition Government are considering? If so, what discussions have they had with the insurance companies?

[Norman Baker]

Personally, I believe it is right for drivers who drive well to be rewarded, and that occurs in a sense with no claims bonus systems, which are well established in car insurance. Generally, submitting no claims drives down the costs year on year for a driver relative to other drivers.

Whether insurance companies ought to identify further opportunities to reward good drivers is a commercial matter for them. For example, I know about some schemes that benefit older drivers with clean licences, or others for people driving an historic vehicle. Premiums can reflect guarantees to drive less than a certain number of miles each year, or that drivers of an historic vehicle probably want to take care of that vehicle, so they would be less of a risk to the insurance industry than they might otherwise be.

I come back to my central point, which I made at the beginning: the market is competitive, including a large number of insurance companies. If I were running an insurance company, I would want to look for the niche market and the opportunity to identify a set of safe drivers who are less likely to make a claim. We could then offer that group a good premium, pulling one big market in and collecting together all the low-risk drivers, and so benefiting from paying out less. Insurance companies in a commercial market have such opportunities, and can identify them better than I can. Any business worth its salt would reward good drivers, because they are better business for the insurance company than are bad drivers, for whom they are paying out.

One particular concern of the Government is the impact of high insurance costs on young drivers. I accept that the higher premiums faced by younger drivers reflect the cost to insurers of covering the risk for two main reasons. First, insurance companies’ figures suggest that as many as a fifth of newly qualified drivers make a claim within six months of passing their test. Many are relatively minor bumps and scrapes, but the overall cost to an insurer of even modest damage is likely to be higher than a young driver will have paid in his or her annual premium. We recognise that the cost of damage claims affects all insured drivers, although groups that are over-represented in claims, such as young or newly qualified drivers, are likely to cost insurers more.

Secondly, insurers have to make special provision for young people. A minority of accidents can unfortunately lead to catastrophic claims, in particular when one or more claimants might require long-term or even life-long medical care. The problem with young drivers is not simply that claims are more likely, but that such costs are liable to be much higher if the claimant is young. In addition, only a limited number of big insurers can afford provision against such claims, which in this area limits the market in which young people can buy insurance. The usual recommended option of shopping around for the best price, therefore, is less effective for young drivers than for older drivers. If the hon. Member for Birmingham, Hall Green has researched that aspect, we would be interested in hearing about his specific examples of how young drivers in his constituency are affected in insurance terms.

One effect is that young drivers, including learner drivers, often find that rises in insurance costs are increasingly prohibitive. Many young people depend on a motor vehicle to obtain better access to education and employment, and they often learn to drive for such reasons. We do not want to deprive people of that opportunity.

Some insurers have argued for the Government to impose additional regulation on newly qualified drivers so that they would not be allowed to drive in high-risk circumstances, which might improve road safety. Other specific restrictions have been proposed, including those in other countries where driving is permitted below the minimum age here. We are, however, reluctant to impose more regulations on young people, because doing so would bear down on those who want to be safe and responsible. It might reduce access to employment and education, while enforcing regulations might involve significant costs. There is also a risk of perverse consequences; for example, limiting the carriage of young passengers might prevent a sober driver providing transport for companions who have been consuming alcohol.

The Department has been working on alternative approaches, such as measures to improve driver training and testing, and is considering whether further measures should be developed. Training should focus not only on the test, but on the challenge of independent driving, including, for example, an understanding of the risks of particular driving conditions, and of distraction and impairment. A range of measures have been taken already, including a voluntary foundation course in safe road use to help pre-drivers and learners, which is aimed primarily at 14 to 16-years-olds. We also intend to work with the insurance industry on whether new or existing insurance products can be developed, with discounts if young drivers choose enhanced training before and/or after the test, or are happy to accept in return restrictions such as not driving at night.

In addition, my Department is in regular contact with vehicle manufacturers and suppliers on developments in new vehicle technology, including driver information systems and parental controls. Such technology might demonstrate how young drivers are driving and could provide important information on behaviour and their insurance and casualty risks. The insurance industry is already making use of technologies and new products when young drivers are willing to accept restrictions or training. The Government are keen to work with the industry on such matters.

The number of personal injury claims has increased at a time when the number of casualties has reduced, which we believe has had a consequent effect on costs incurred by insurers. There have been concerns around high legal costs in civil litigation, in particular under no win, no fee conditional fee agreements. The Government are committed to addressing such concerns and welcomed Lord Justice Jackson’s final report on those matters, which made a broad range of significant recommendations for reducing costs in the civil justice system.

The Ministry of Justice published “Proposals for Reform of Civil Litigation Funding and Costs in England and Wales—Implementation of Lord Justice Jackson’s Recommendations” on 15 November 2010. The Department announced on 29 March 2011 that it will abolish the general recoverability of the CFA success fee from the losing side; abolish the general recoverability of after-the-event insurance premiums; and introduce the package of associated measures set out by Lord Justice Jackson. Through the Legal Services Board, we are also considering the issue of referral fees.

Finally, we should recognise that the most effective way of controlling costs is to reduce the number of road accidents and casualties. The Government are strongly committed to improving road safety and we are setting out our plans in a strategic framework published today.

Avon Ring Road (M4 Link)

Norman Baker Excerpts

Wednesday 11th May 2011 Westminster Hall

[The Parliamentary Under-Secretary of State for Transport (Norman Baker)]

Congratulations, Mr Weir, on a marathon session in the Chair today. I also congratulate my hon. Friend the Member for Kingswood (Chris Skidmore) on securing this important debate and on representing his constituents so diligently in the matter. There are two strands to my response: first, the process for prioritising the funding of local major schemes in the spending review period up to 2015 and beyond; and secondly, the importance of local authorities considering a range of options for addressing transport problems in the short and longer terms and what short-term options he might consider to try to deal with the situation that he describes so eloquently.

Of course, my hon. Friend will not need to be reminded of the economic situation that the Government have inherited and that the main priority is to reduce the deficit and promote sustainable economic growth. The emergency Budget last June and the October spending review were part of that strategy. However, in the spending review, the Government recognised the importance of transport infrastructure and its ability to help the economy to grow. There is a clear link and he is right to draw attention to that link in general and to the specifics of his constituency’s science park, to which he referred.

We are committed to investing capital of £6 billion over the next four years in local transport, including £1.5 billion in local authority and major schemes. Nevertheless, over the next four years, we simply cannot afford to deliver every scheme that is being proposed. We inherited from the previous Administration a completely unrealistic pipeline of schemes that could not have been delivered, even if the economy were in its most buoyant form. We have therefore had to take tough decisions to prioritise schemes. My Department has set out a process for delivering a programme of local major schemes over the spending review period. The long lead time for developing major transport schemes means that we have only considered schemes that had already secured conditional approval or programme entry funding approval, or that had a bid for programme entry already lodged with the Department prior to the suspension of major scheme activity on 10 June 2010. That is when the portcullis came down, if I can use an appropriate metaphor for the House.

We have been keen to ensure that we get value for money and we have driven down the costs of schemes that we have been considering in the pool. That will enable us to proceed with more schemes than would have been the case if the previous Government had simply accepted the estimates available to them. We announced on 4 February this year the schemes we were approving, those we were not going to take forward and those that are in the development pool. Promoters of schemes in the development pool have until September to come back with best and final offers and we shall announce in December which ones are approved.

Despite what may have been said elsewhere, I must make it clear that the road that is the subject of this debate has, I am advised by officials, never been put forward officially to the Department for Transport for funding as a local authority major scheme. Indeed, South Gloucestershire council’s core strategy talks about the road only being a reality post-2026. So I hope that my hon. Friend would accept that it is unfair to consider funding it within the current spending review period given the process we have been through. For the record, again, despite what may have been said elsewhere, the scheme has certainly never been promised funding by the Department for Transport. I am not aware of the comments made by my ministerial predecessor some years ago, but I have asked officials to dig them out for me and let me have copies, so that I can see for the record what was said.

The Department for Transport is working on the development of a policy for prioritising and funding local authority major schemes beyond 2015. We recognise that it is not possible to progress many schemes in this period that, nevertheless, have merit and ought to be considered properly post-2015. It is our intention to move to a more devolved funding framework for major schemes, with local enterprise partnerships and others being more relevant in the process. That framework will be developed further during 2011 and I have no doubt that the Secretary of State will make a further announcement in due course about exactly how that will operate.

To answer my hon. Friend’s specific point, I can say that his proposal has not been ruled out indefinitely, but that it cannot proceed within the present time frame that I have identified up to 2015. It is certainly up to him and others to make further representations, collect local support directly from residents and also perhaps through local councils, the local enterprise partnership and others, so that when the next round of transport schemes is considered, the case has been well advanced. If he wants to do that, I encourage him to do so. In the meantime, if he wants to present a petition to me, I will certainly be happy to accept it from him and his constituents.

Moving on to the second strand of my speech, I encourage promoters of schemes to consider a range of solutions for addressing transport problems. As part of the case that my hon. Friend wants to build up and may well be building up—I encourage him to do so—it is worth drawing attention to some of the comments made hitherto about the road, so that he is aware of them. The “Greater Bristol Strategic Transport Study”, which was produced in 2006, was commissioned by the Government office for the south-west to consider the case for building the link road. For the benefit of those who have not had a chance to read the document, let me read the concluding paragraph of the section that considers the link road:

“Although the new M4 to A4174 Link road scheme has a strong economic case, mainly derived from travel time savings for journeys from outside the study area, it is not being recommended by the study. The new link would alter flow patterns in the congested area between M4 J20 and M4 J19, M32 J1 and the northern stretch of the A4174 Avon Ring Road, putting additional strain on the A4174 and causing congestion problems on the M4 to the east of the new junction with the strong likelihood that the widening of the M4 between Junctions 18A and 18 would be necessary. The improved linkage to the M4 is likely to encourage long-distance commuting to and from developments in Emersons Green and Pucklechurch, which would go against the principles of sustainable development.”

I stress that those were the comments of the Government office for the south-west in 2006. I read that out partly for the record, but also because if my hon. Friend is keen to promote his scheme, he will need to address the arguments that will be made.

However, I want to be optimistic about the short term, as well as looking at the longer-term possibilities. My hon. Friend might be interested in looking at options that provide short-term benefits. In the development pool of major schemes, to which I have referred, one is being promoted by South Gloucestershire council in conjunction with the West of England Partnership and Bristol city council. If approved, that scheme may help to address some of the congestion issues to which he has referred.

The scheme I am talking about is the North Fringe to Hengrove package, which includes a series of complementary projects that would facilitate the development of three new rapid transit routes linking the North Fringe, East Fringe and South Bristol areas via Bristol city centre. The promoters argue that the rapid transit network will provide a fast, frequent and reliable public transport service, where services run on a combination of segregated busways and bus lanes separate from car traffic. Services would be given priority over other road users at traffic signals.

Promoters argue that the scheme would provide a high-quality passenger experience, with ticket machines at stops, user-friendly electronic information displays, high-quality stop design including CCTV and lighting, and safe and secure access to stops. The network would also provide improved pedestrian and cycling measures, including new footways and cycleways and appropriate modern and safe crossing points. A decision will be made on Government support or otherwise for that scheme in December. I am not clear about whether my hon. Friend believes that that is a useful scheme. If he does, it is on the table at an advanced stage and he may want to make representations in favour of it before we take a decision later this year. I referred to that today for background. I stress that no decision has been made for or against the scheme at this stage.

The West of England Partnership has also submitted a bid to the Department for funding from the local sustainable transport fund, which I launched with the White Paper, “Creating Growth, Cutting Carbon,” earlier this year. The promoters argue that elements of that bid would help to ease congestion in the area we have been talking about by promoting an integrated package of low-carbon alternatives to single-occupancy car use. The full bid document can be found on the Travelplus website. The Department will make a decision on that bid at the end of June this year. I stress again that no decision for or against has been taken; it has not been evaluated properly. However, if that is something that my hon. Friend supports, he may want to make representations about that before we take a decision in June—not very far away.

On a more general point, I would like to mention the local transport White Paper, “Creating Growth, Cutting Carbon”, which I launched in January. It shows how the Government are empowering local authorities, from streamlining transport funding from 26 to four grants— reducing all the unnecessary, bureaucratic streams that the previous Government had—to powers in the Localism Bill. The White Paper also sets out a number of sustainable transport choices that local authorities can make for their areas, from making public transport more attractive to car-sharing clubs; from improved cycle networks to bus partnerships; and from community transport to travel planning. Those are the sorts of things that allow people to travel freely without hindering economic growth or increasing their carbon footprints. I urge local authorities to consider those options in developing solutions to transport problems. There is a further tranche of money available after tranche one.

To conclude, we have set out a process for prioritising local major transport schemes over the next four years. Consistent with our localism and decentralisation agenda, it is our intention to move towards a more devolved framework for prioritising and funding local major schemes beyond 2015. That suggests that local people’s views will perhaps be more important than they have been hitherto in deciding the priorities for local schemes. Garnering local opinion, therefore, may well be a useful exercise for my hon. Friend in the meantime. Beyond that, the local transport White Paper sets out the wide range of sustainable transport options for local authorities and others to consider to support economic growth and to reduce carbon emissions. Those two objectives are and remain the central objectives of the Department for Transport.

Ultra Low-Carbon Emission Vehicles

Norman Baker Excerpts

Tuesday 10th May 2011 Westminster Hall

[The Parliamentary Under-Secretary of State for Transport (Norman Baker)]

I am grateful for the opportunity to respond to the debate. I congratulate my hon. Friend the Member for South West Bedfordshire (Andrew Selous) on the topic that he has chosen, on his enthusiasm for it and on the large number of entirely pertinent questions that he asked during his contribution. I will try to answer as many of those as possible, which means that my response might be slightly more bitty than would otherwise be the case.

It is worth pointing out to start with that the two objectives of the Department for Transport are to help to create growth and to cut carbon. Of course, developing and promoting electric vehicles fits in exactly with those two objectives, showing that helping the environment need not be—in fact, should not be—contrary to economic development and the generation of growth for this country. If we can move that agenda forward, it will certainly be in all our interests to do so. That is why we have taken action to position Britain as a global leader in the design, production and use of electric and ultra low-carbon emission cars. Cutting spending does not have to be incompatible with a low-carbon agenda. Some low-carbon choices already offer outstanding value for money, so our future goal is a market for green vehicles that makes economic as well as environmental sense.

We have heard about alternatives to car transport. Let me deal with that issue briefly. Of course, a rounded transport strategy has to take into account alternative forms of transport. That is why we have prioritised the local sustainable transport fund to develop alternatives for shorter journeys; two thirds of car journeys are of 5 miles or less. To answer the shadow Minister, the hon. Member for Denton and Reddish (Andrew Gwynne), that shows the commitment of the present Government to dealing with the environment, because not only is it a big way of dealing with carbon emissions in the short term, but £560 million for those areas is more over this four-year period than the last Government provided over the last four-year period, notwithstanding the difficult economic circumstances in which we find ourselves. That is a real commitment from the Treasury to this agenda.

[Mr Edward Leigh in the Chair]

The shadow Minister also mentioned rail. I was having some difficulty in following his logic, because he said on one hand that people were being priced off the railways, but on the other hand that a record number of people were using the railways. Those two statements do not seem to be entirely compatible. Also of course, the last Government changed the RPI arrangement so that every year, rail fares went up above inflation. To that extent, we are simply talking about a continuation of the policy inherited from the last Government.

[Andrew Gwynne]

When the Minister looks at the record of the debate, he will see that the quote about pricing people off the railways came from his right hon. Friend the Minister of State, Department for Transport, who is responsible for the railways.

[Norman Baker]

The point that I am trying to make is that, if increasing rail fares above inflation prices people off the railways, which I think was the argument developed by the hon. Gentleman, the policy has been singularly ineffective so far. The policy pursued by the last Government of pricing fares above inflation has led, according to his own figures, to record numbers of people on the railways.

[Andrew Gwynne]

I realise that the debate is not about railways, but perhaps the Minister will look at some of his right hon. Friend’s written parliamentary answers, which show that the Government’s own projections make it clear that price increases of 3% above RPI over the next three years will see the growth in rail passenger usage fall.

[Norman Baker]

As the hon. Gentleman says, the debate is not about railways, so we should not spend too much time on this, but the Department for Transport’s projections show increasing numbers of passengers on the railways. Only this week, record numbers of rail passengers were announced, not least because of the price of fuel, which my hon. Friend the Member for South West Bedfordshire mentioned.

I am glad that the Opposition spokesman mentioned high-speed lines in a positive sense, and I look forward to the Opposition confirming that they have retained the last Administration’s position of supporting high-speed rail. It is important that there is cross-party agreement on the issue, and I am disappointed that the hon. Gentleman’s boss has so far been unable to say definitively that high-speed rail would continue if there were a Labour Government.

Let me turn in more detail, however, to the subject before us: electric and low-carbon vehicles. Notwithstanding the comments about railways and low-carbon transport locally, the fact remains that most journeys are undertaken by car, and that will remain the case for the foreseeable future. The reason is that cars are a convenient means of getting from A to B and are the only practical alternative for a great many journeys. Yes, people can take a different means of transport if they are in a city centre, and they can use the railways if they are going from one city centre to another, but the car is the only alternative for most journeys. We must therefore ensure that it is in a good place to contribute sensibly to our environmental and economic objectives. As I said in opposition, and I am happy to say again in government, the enemy is the carbon, not the car, and that is what we should focus on in our attempts to move forward on transport policy.

In the short term, the majority of CO₂ savings from road transport will come from improvements to conventional technologies, and that is broadly acknowledged across the House and across industry. I have been impressed by car manufacturers’ ability to tweak—that is perhaps an understatement—or adjust their technology in a productive way to deliver reduced carbon emissions from conventional engines, and one of the models mentioned competes favourably with a hybrid engine. EU regulations on fuel efficiency have helped to drive that process. Similarly, the manufacturing industry’s competitive will has helped to respond to the general environmental challenge that we all face. We will continue to work with manufacturers and our EU partners to squeeze more fuel efficiency out of petrol and diesel cars and vans because that will provide the biggest short-term gain. However, we are also preparing for the more revolutionary change that is the subject of the debate.

Of course, the take-up of ultra low-carbon cars may be slow at first, and nobody should be surprised by that. Whenever a new technology is introduced, there is always a slow take-up and then a rising line on the graph as people get used to the technology and gain confidence in it. The price then starts declining because the market is developed, and part of the Government’s strategy is to help to ensure that the market is kick-started and developed. There should be no concern about the number of electric vehicles that have been sold to date, because the trajectory is the one we would anticipate and is entirely consistent with our significant ambition for four years ahead, to which I will return shortly.

We are putting in place the incentives we need to establish a market for these pioneering technologies, which will be supported by measures such as enhanced capital allowances, low benefit-in-kind taxation and variable vehicle excise duty. I am happy to say that we are joined in our effort by a number of private and public sector organisations. To respond to one of the points that has been made, the Royal Mail is undertaking trials with electric vans. Sky is seeing what the plug-in Toyota Prius is like to live with. In my Department, the Government Car and Despatch Agency is testing five plug-in Toyotas and a Smith electric van, so we are doing what we can.

To support the development of the market for low-carbon vehicles further, we need to ensure that the right infrastructure, specialist supplier base and customer incentives are in place, and that is exactly what we are doing. We have confirmed our support for a range of research and development programmes across the green vehicle sector. Through the Technology Strategy Board’s low-carbon vehicles innovation platform, we are working with key partners to deliver a strategic vision for automotive R and D. Last year, we announced that a further £24 million was being awarded to six winning consortia from the latest competition, which makes a total of £52 million with contributions from business.

All of that will make a significant contribution to greener vehicle development in this country, to pick up the point rightly made by my hon. Friend the Member for Nuneaton (Mr Jones). That development includes hybrid technologies, composite materials and engines that recover waste heat energy. The vehicles that will benefit include plug-in hybrids from Nissan, Lotus and Jaguar Land Rover, extended-range electric cars and a lightweight hybrid refuse collection vehicle. Through the plug-in car grant, we are helping to lower the up-front costs of such vehicles. There are nine eligible cars, which are, and will be, on our roads, with more than 500 orders already placed under the scheme, as has been mentioned.

Our objective has always been real grants for real cars: cars that are safe and reliable, that meet the needs of real motorists and that provide a motoring experience that is as good as, if not better than, that provided by the conventionally powered vehicles people currently drive. It is important that the new generation of cars have that consumer confidence and that their performance is similar to, or better than, that of existing vehicles. If we are to have uptake, we absolutely must have that. Fifteen or 20 years ago, I did some work on green washing powders, which, quite frankly, were not as effective as normal washing powders, so the uptake was limited. If green technology is to take off, we must get its performance up to the level of that of existing technology.

The scheme was launched in January, with buyers receiving a grant of 25% of the price of a green car, up to £5,000. That, of course, also applies to business buyers. The scheme has been well received by the public and by business. We have shown our strong commitment to supporting the market by confirming support for the grant for the lifetime of this Parliament. To pick up the point raised by the shadow Minister, it is right that the sum involved is £43 million until March 2012. The spending review has confirmed the provision of about £300 million to support consumer incentives for the life of this Parliament. The hon. Gentleman can have confidence that this is not a stop-start arrangement, but something we will see through to make sure that there is confidence in the market.

Through these initiatives, we want to encourage motorists to embrace cleaner and greener vehicles. By encouraging demand, we will stimulate investment in mass production which will, in turn, bring down costs and further boost demand. That is what we have seen with all new technologies, whatever the field, and things will be no different with electric vehicles.

Let me turn now to some of the points raised by my hon. Friend the Member for South West Bedfordshire. He mentioned the carbon reduction from an electric car powered by the existing grid, and he is right to draw attention to the need to change the grid mixture. Indeed, when we came into the Chamber at the end of the previous debate, my next-door neighbour, the Minister of State, Department of Energy and Climate Change, my hon. Friend the Member for Wealden (Charles Hendry), was responding to a debate on that very matter. The Government are well seized of the need to develop a cleaner, greener grid, which will undoubtedly increase further the advantages of electric cars. Even if the existing grid is used with a new electric car, however, there can be up to 40% carbon savings. There are also further benefits in terms of reducing air pollution from tailpipes and so on. We should change the grid, but even if we do not, there are still many good reasons to pursue electric vehicles, which is what we are doing.

My hon. Friend the Member for Nuneaton referred to the regional growth fund, and I can assure him that the Department for Transport is drawing the attention of other Departments, including the Department for Business, Innovation and Skills, to the advantages of transport investment, including in this field. He will know of the Transport Secretary’s enthusiasm for these issues, and he can rest assured that my right hon. Friend will not lose an opportunity to advance them in discussions with fellow Cabinet Ministers.

My hon. Friend the Member for South West Bedfordshire asked about the 2020 target, as it were, for electric vehicles. There is no doubt that we want a big uptake of these vehicles. The figure achieved will be determined by external factors to some extent, for example the price of oil. If the price rises dramatically, it will, I suggest, hasten the development and uptake of electric vehicles, but if the price declines, it will make it less attractive to move forward on that trajectory. Therefore, some outside factors mean that it might not be sensible to set a target. We should say, as we have said, that we must decarbonise road transport if we are to make serious inroads in our carbon emissions in the transport sector.

We should and we have done stuff on rail and encouraged cycling and walking in urban centres, but ultimately the big gain will come from decarbonising road transport. We must put in place high-level objectives for carbon reduction and economic growth and the mechanisms to deliver the outcome we want, which, in this case, is a big uptake in electric vehicles. We must then monitor the uptake without necessarily setting arbitrary targets for how many vehicles there should be by 2020. Having said that, “The fourth carbon budget” report has made some recommendations and we appreciate the efforts made in that regard. We have not formally responded to them, but we will publish our views in October, and we might be able to give more detail on the number of electric vehicles we could achieve when we publish that.

My hon. Friend the Member for South West Bedfordshire referred to the incentives for purchasing electric vehicles, and I am grateful that he welcomes the £5,000 grant. The economics are not quite as negative as he might feel. On current petrol prices, an electric car such as a Nissan Leaf could save the average motorist up to £1,000 a year in running costs, so, taking account of the plug-in car grant and the vehicle excise duty benefits, even now someone could get a payback in seven years. I accept that that could be better and we want to make it better, but there is a sensible payback period for people to consider when they invest in such vehicles.

[Andrew Selous]

I thank my hon. Friend the Minister for the serious way in which he is responding. What he has just said is, in some ways, the most important thing that has been said in the whole debate, and I am grateful to him. The fact that the payback could be within seven years is very welcome news. He has told us about it here, but it is probably rather a well kept secret at the moment, so we need to publicise it slightly more. I ask him to do that.

[Norman Baker]

They always say that if one wants to keep a secret, tell the House of Commons. It is worth pursuing that issue further and I am grateful for my hon. Friend’s suggestion. My officials are here and we will see what we could usefully do to promote the scheme further.

I mentioned the need to ensure that the performance of electric vehicles is satisfactory, but if we are to make progress, we also need to ensure, as far as possible, that the economics are satisfactory. Once those two things are in place, people will embrace the new technology in a welcome way. People want to be green, provided that they can afford to be and that their vehicles do not lack performance as a consequence.

Those who have contributed to today’s debates raised the issue of the infrastructure. We are determined to roll out an effective infrastructure for electric vehicles, hence the inclusion in the coalition agreement of a commitment to mandate a national recharging network. Our plugged-in places programme is helping to do just that. The scheme will provide valuable data on how and where people recharge their cars, so that we can get the national network right. To help achieve that, we are working on a strategy for promoting the roll-out of charging infrastructure, and we will publish it this summer. More details will be available then.

In December last year, as my hon. Friend the Member for South West Bedfordshire knows, we announced five more plugged-in places: Northern Ireland, central Scotland, Greater Manchester, the midlands and the east of England will all receive match funding to install electric vehicle recharging infrastructure. Those projects join the schemes in London, Milton Keynes and the north-east of England, which the previous Government began.

The programme is real and happening now. Charging points are already appearing on our streets—the most visible sign of the growing market—and will soon, I hope, become a common feature on streets and in homes, workplaces, and private and public car parks, so consumers can charge their cars easily, safely and conveniently. To pick up the point made by my hon. Friend, they will have confidence that they will not be left stranded somewhere without a power source. That concern is also addressed by the development by manufacturers, who are pushing at the boundaries, of increasing range for electric vehicles.

This is a new market and these are new technologies. The projects will test a variety of business and operating models and different technological approaches. The knowledge that we gain will inform the developing national strategy for infrastructure. Of course, we want the UK to benefit from the business and competitive opportunities of ultra-low-carbon cars. We want green growth and we want it here. We want UK businesses to seize commercial opportunities in the sector and are supporting them to do so.

The move to ultra-low-emission vehicles presents opportunities to support the economic recovery, green growth and the creation of high-tech, low-carbon jobs. The automotive sector is already our No. 1 manufacturing export, directly employing around 156,000 people in the UK and a further 150,000 in the supply chain. The sector is worth nearly £6.5 billion to the UK economy in terms of gross value added, so as the automotive sector goes green, the UK is well positioned to reap the benefits. I can assure my hon. Friend the Member for Nuneaton that the Department for Transport, the Department for Business, Innovation and Skills, and the Treasury are working together and are closely focused on doing that.

The Nissan Leaf will be made in Sunderland from early 2013, with production growing to 50,000 vehicles per year. Nissan will assemble battery packs for the Leaf on the same site, starting in 2014 and growing to 60,000 units per year. Those are real, green jobs, and they are helping to create growth and cut carbon—the two objectives of the Department for Transport.

I turn to the other questions that were raised. I dealt with the length of the subsidy for electric vehicles. There is competition from Europe—there is no doubt about that. France has aggressive plans for infrastructure and vehicle uptake, but the UK has been allocated the largest number of Nissan Leafs in Europe, which demonstrates that we are seen as a leading market, and we are working to position the UK to take advantage of the business opportunities that the market brings.

To be frank, the standardisation of charging points is a difficult issue and not one for which there is an immediate solution. The International Electrotechnical Commission has developed international standards for electric vehicle recharging and there are discussions in the EU to get progress on a standardised charging system. However, the national interest sometimes has a role in the consideration of the best way forward, as my hon. Friend will understand.

[Andrew Selous]

Does my hon. Friend the Minister agree that this is one area in which the EU could play a useful role? Many people think that getting some form of standardisation is exactly what the EU is for.

[Norman Baker]

I entirely agree, and I hope that the EU comes up with a solution that does not reflect national interest, but European interest, and makes sense for manufacturers and consumers by keeping costs down. That would be an entirely sensible outcome for many EU discussions. I assure my hon. Friend that we are using our influence, as far as we have any, to push for exactly that outcome.

[Mr Marcus Jones]

Promoting the standardisation of such charging equipment across Europe is obviously laudable, but if other EU member states are promoting their national interests while doing so, surely we should also give some consideration to promoting our national interest and the interests of our manufacturers in those negotiations. Does the Minister agree?

[Norman Baker]

I agree that we do not want to leave ourselves in a position where, to be blunt, we are outflanked. We must try to achieve a consensual arrangement for a single recharging solution that everyone can embrace. That is clearly the desired outcome, and it will ultimately be to the benefit of all countries in the European Union and more widely. Indeed, as we heard earlier, the best solution will be an international one, as it will keep manufacturing costs down and therefore the cost to the consumer down, too. We are seized of the need to make progress, but the House will appreciate that it is not entirely within our control.

The matter of apprentices was raised, especially the fact that we need a sufficient number with the skill to work on electric vehicles. I am happy to reassure the House that the Department for Business, Innovation and Skills, the Department of Energy and Climate Change and the Department for Environment, Food and Rural Affairs are working together to identify the necessary skills and to consider how the demand-led further education system will deliver them. We are talking to the sector skills councils and the Commission for Employment and Skills about ensuring that the demand for green skills is shared with further education colleges and other providers. We plan to maintain a strong cross-Government focus on the STEM subjects of science, technology, engineering and maths.

[Andrew Selous]

The Minister is being generous in giving way, which I appreciate. What he said about schools is critical. To be blunt, if people do not have a GCSE in physics, they will probably not even make the starting gate. However, there is a chronic lack of physics teachers. I know that this is stretching the Minister’s departmental responsibilities, but it is important that we join these things up. Nothing will happen unless schools have the basic physics that will lead people on.

[Norman Baker]

As suggested, the number of physics teachers may be slightly beyond my brief at the Department for Transport. However, I have some sympathy for the point being made by my hon. Friend. The mindset in some areas and among some people is that manufacturing is an old-fashioned dirty business, and that people who want to progress in life should get white-collar jobs. That is unfortunate, and the Government are trying to change that mindset. Manufacturing is most important to the country, and it is a skilled task. Anything that schools can do to help promote it is entirely to be welcomed. My officials and I will ensure that my hon. Friend’s comments are drawn to the attention of the relevant Minister at the Department for Education.

Before I run out of time, I shall deal with the other points that were raised. Hydrogen was mentioned. I return to the Government’s objectives, which are twofold—to create growth and to cut carbon. I do not want to get into the business of picking winners in the technology that finally emerges. It may be that what emerges is not an overarching technology; there may be different solutions for different vehicles, with the solution for council refuse collection vehicles being entirely different from that for the car that takes people to visit their aunts and uncles.

We should be careful not to impose Government solutions, or to guess which way technology is taking us. We should specify the outcome that we want—that of decarbonised road transport—and invite manufacturers, those involved in research development and others to come up with a way of achieving that objective. It is not for us to second-guess things, although it is tempting. I do not mean that as a criticism of the previous Government, but they started promoting liquefied petroleum gas in 2001-02. They had good intentions, but it turned out that the environmental benefits were less than they thought at first. To some extent, people were being led up the hill and back down again, and we need to avoid such outcomes.

We have a similar situation with biofuels, which were referred to today, and we must be careful to avoid the same problem. Biofuels were originally seen as the big solution, the silver bullet. Pressure groups were pressing the Government to do more with biofuels, but then did an about-face, saying that biofuels were terrible and had awful consequences. Biofuels, too, went up the hill and down again.

Biofuels are within my brief, but it is taking time to get the issue right. We believe that they have a role in transport, but they must be sustainable. They must also demonstrate carbon saving and show that they do not have unwanted consequences for the environment through indirect land use or in any other way. If we get the foundations right, we can build on them, but we cannot have the biofuels industry being built on sand or we shall run into environmental difficulties in the years ahead. That is why we are taking more time. We are consulting on the renewable energy and the fuel quality directives, and people have the opportunity to feed in comments. I hope that the Opposition will get involved in those consultations, to ensure that our policies on biofuels are right.

I turn to the comments of the hon. Member for Denton and Reddish. He spoke about fuel duty and VAT on fuel. It might have been fairer if he had referred to the fact that the Chancellor cut fuel duty by 1p in the Budget; he might also have referred to the fact that the Chancellor abandoned the above-inflation increases that the previous Government intended to introduce. There is an argument to be had about where the price of fuel should be, given its impact on the environment and the economy, and it is perfectly legitimate to engage in that argument, but we should have the facts before making the necessary judgments.

The hon. Gentleman spoke about our being the greenest Government ever, but the time to judge that will be at the end of this Parliament; only then will we be able to see whether the policies that started off down the track have been enacted and where they ended. I, for one, am determined that the aspiration should be turned into reality. I want us to be the greenest Government ever, and I have no reason to think that other Ministers take a different view. I believe that the Prime Minister, too, is committed to that objective. The time to judge us will be at the end of this Parliament, and I hope that we will have an overwhelming case to demonstrate that we have achieved that challenging objective.

As for the green investment bank, it did not exist under the previous Government. Whether or not it is allowed to borrow is a moot point. We created the bank and we have given it borrowing powers, which is a substantial departure from normal Treasury policy. It does not start until 2015, but it is a major achievement, and I hope that the hon. Member for Denton and Reddish will acknowledge that; rather than painting everything as a glass half empty, he should recognise that the glass is half full—and getting fuller as time goes on.

[Andrew Selous]

I return, if I may, to what I believe is the most significant factor—the seven-year payback. Would the Minister be prepared to write to me, perhaps giving the matter further publicity, setting out the illustrative figures? I accept that they are illustrative and that they make assumptions about the price of fuel and so on, but that seven-year payback is critical. Would he be kind enough to set them out in a letter? I hope that he might also give the matter wider publicity, which could be critical in moving this vital industry forward.

[Norman Baker]

I am happy to give that assurance. I shall write to all Members present as a matter of courtesy. The Government will do whatever we can to promote electric cars and the uptake of low-carbon vehicles. We are committed to that agenda. That is why I am grateful to my hon. Friend the Member for South West Bedfordshire for introducing this important debate.

Oral Answers to Questions

Norman Baker Excerpts

Thursday 5th May 2011 Commons Chamber

[Fiona Bruce (Congleton) (Con)]

10. What steps he is taking to assist local authorities to repair potholes.

[The Parliamentary Under-Secretary of State for Transport (Norman Baker)]

On 24 March, we wrote to all local highway authorities informing them of their share of an additional £200 million, which we have made available for repairing damage to their road networks following the severe winter weather at the end of last year. The funding was paid to authorities on Monday 28 March this year.

[Fiona Bruce]

I thank the Minister for his reply and for the generous grant of £2 million recently received by my local authority of Cheshire East. However, the council has a £100 million shortfall in planned maintenance of its highways network, and it is unable to commit funding to upgrade junction 17 of the M6, which is in my constituency and frequently causes major traffic problems. Can the Minister offer any help to the local authority as it tries to address the problem with partner organisations?

[Norman Baker]

I am grateful to my hon. Friend for her welcome for the extra funds made available. It is worth putting on record that we have committed £3 billion for highway maintenance over a four-year period in addition to the £200 million that was announced this year, so despite the difficult economic circumstances, we are prioritising moneys for highway maintenance. I am not aware of the particular junction, but if my hon. Friend writes to me with further details I will happily get a reply to her on the matter.

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

If the main excuse given by failing authorities is that they are short of resources, will the Minister consider instructing them to stop installing speed humps and to use the tarmac they save to fill in the potholes?

[Norman Baker]

That is a novel and interesting suggestion, but I do not think it is the job of Transport Ministers to direct local councils how to spend their money.

[Jeremy Corbyn (Islington North) (Lab)]

11. What consideration he has given to electrification of the Barking to Gospel Oak line.

--- Later in debate ---

[Duncan Hames (Chippenham) (LD)]

I warmly welcome the creation of the sustainable local transport fund. I hope that the Minister is aware of the exciting trans-Wilts rail proposal, of which we heard earlier, developed by the community rail partnership, which has demonstrated the strong support of local businesses and MPs. Can he confirm that he would welcome a bid from Wiltshire council to that fund, and that it would be given serious consideration?

[The Parliamentary Under-Secretary of State for Transport (Norman Baker)]

I am pleased with the number of bids we have received so far for the first tranche of the local sustainable transport fund. A number of imaginative bids have come in. There is a further bidding round, however, and I would welcome any suggestions that could improve the co-ordination of transport across modes.

[Julie Hilling (Bolton West) (Lab)]

Does the Minister agree that referral fees and the whole claims management industry drive up the cost of motor insurance? Will the Government be doing anything to regulate this industry?

Rail Engineering (Jobs)

Norman Baker Excerpts

Tuesday 29th March 2011 Commons Chamber

[The Parliamentary Under-Secretary of State for Transport (Norman Baker)]

I welcome the opportunity to debate in some detail the issues raised by the hon. Member for Hayes and Harlington (John McDonnell), who spoke with his usual integrity and humanity.

The hon. Gentleman will appreciate that the Minister of State, who has responsibility for this matter, is not able to be with us tonight, but I will make sure that his comments are drawn to her attention. I will ensure that a written response to the questions that I am not able to answer tonight is sent to him. I am grateful for his comments about her involvement. I understand that she is well aware, from the recent meeting and from correspondence, of the importance that the hon. Gentleman attaches to addressing the impact of events such as Jarvis plc’s entry into administration on the rail industry skills base and on former employees. I have sympathy for those who have lost their jobs, and for the impact that it will have on their families. It is always a tragedy when someone loses their job, and the impact is much more widespread than just the effects on the individual concerned.

The Government are progressing with an ambitious programme for rail investment, because we believe that the railway network is vital to economic growth and reducing carbon emissions. However, funding is not unlimited. We must ensure that every pound is spent efficiently, and secure the maximum long-term benefits and value for money. Of course, that includes having a safe railway.

The spending review settlement demonstrated the Government’s commitment to rail transport. We have announced that we will fund and deliver a wide-ranging programme of investment in rail infrastructure and rolling stock. As the hon. Gentleman said, the projects include Thameslink and Crossrail, and the associated 2,100 new carriages; the intercity express programme; extending the electrification of the Great Western main line to Bristol and Cardiff; and electrifying the lines between Liverpool, Manchester, Preston and Blackpool. Major station development projects will proceed at Reading, Birmingham, London King’s Cross and Gatwick airport. There are a number of other projects, including those announced in the Budget last week.

The sustained financial support that we have offered now needs to be matched by a relentless drive for efficiency on the part of the rail industry. Sir Roy McNulty’s value-for-money study will have a crucial role in tackling that challenge from an industry-wide perspective. Sir Roy’s emerging findings give a strong indication of the scope for improved value for money in our railways. The potential savings of up to £1 billion that are identified in the report are efficiencies that should be achievable while keeping the same level of services. From my point of view, achieving efficiencies in the railway means making a stronger railway for the future.

One of the key principles for making those savings is much closer working and an alignment of incentives between train operators and Network Rail. Alongside the Government’s response to Sir Roy’s interim findings, we therefore confirmed plans to reform the rail franchising system to make franchises longer, more flexible and more responsive to the needs of passengers, while providing better value for taxpayers. The railway as a whole faces significant challenges in terms of costs and affordability. Finding effective responses to those challenges will not be easy in such a large and complex industry. The study team has been encouraged by the ready co-operation it has received from many people within the industry. Its aim, with their help and support, is to chart a route to a sustainable future for rail in this country.

It is widely recognised that getting better value for money is key to a sound future for rail in this country. We want rail to be in a good place to compete with other modes, not least for carbon reasons. Sir Roy’s recommendations, and the industry’s response, will shape the Government’s proposals for the reform of the industry, which we intend to set out later this year.

However, we recognise that a bigger and more efficient railway needs the very best of engineering and other skills to succeed. The industry’s success in meeting the challenge of the future will depend on the skills, motivation and capabilities of its work force. That is tied into the issue of how the industry manages its supply chain, and how we manage our investment in the industry. We have registered the widely held view that the Government should try to avoid driving peaks and troughs in demand for various skills. In the future, the industry leadership needs to be able to play a greater role in addressing the issue, and it must consider the impact that investment decisions can have right down the chain and how those decisions can be balanced to provide the best value for the taxpayer.

I am conscious that I had less than 10 minutes for my speech, but I shall try to get through as much as I can. I turn to the specific issue of Jarvis plc’s entry into administration. We greatly regret the failure of Jarvis and the subsequent loss of jobs and impact on individual families. I know that my right hon. Friend the Minister of State welcomed the chance to meet the hon. Gentleman and others in the RMT parliamentary group on 15 February, and to hear the group’s views on the matter at first hand. Following that meeting, I understand that Network Rail’s chief executive, David Higgins, has been in touch to confirm his willingness to meet the group to discuss its concerns.

Network Rail re-let to Babcock Rail the track renewal work previously undertaken by Jarvis on the London North Eastern and Midland and Continental routes, which led to a number of staff gaining employment with Babcock Rail. However, as the hon. Gentleman is aware, the contractual arrangements for track renewal work are commercial matters between Network Rail and the infrastructure companies, in which the Government have no locus to intervene.

Network Rail has made it clear that all current track renewal work has been allocated, and that there are no outstanding contracts to be filled. It is tasked to deliver the value for money needed to meet the output and efficiency targets for the operation, maintenance and renewal of the network set out by the independent Office of Rail Regulation. The ORR’s latest industry review makes it clear that Network Rail is delivering improved efficiency through the use of new technology and improved working practices, including the use of high-output track renewal equipment and pre-assembled modular sets of points, which allow it to carry out renewal work more quickly.

The Government recognise the importance of maintaining a skilled work force in the rail sector. That is why Sir Roy McNulty’s value-for-money study is working to identify major improvements in asset and supply chain management, and to forecast future requirements for work force skills. The Government also believe that infrastructure investment is crucial for Britain’s future, so over the next four years we will provide £14 billion of funding to Network Rail to support capital maintenance and infrastructure investment.

As the hon. Gentleman will know, we support a Y-shaped national high-speed rail network from London to Birmingham, Leeds and Manchester, with connections on to existing main lines. That would release capacity to expand commuter, regional and freight services on existing lines. The benefits of that network would bring about £44 billion to the country. Building the London to west midlands line would create about 9,000 jobs during construction, 1,500 permanent jobs following completion and 30,000 jobs around the stations of the high-speed network.

The Government are determined to achieve a sustainable, efficient and growing railway. We are equally determined that no changes should be made that would jeopardise the impressive improvements in safety and punctuality achieved across the industry in recent years. We are determined to get those responsible for track and train to work together more closely, to drive down the costs to taxpayers and fare payers while improving the quality of services.

Underlying our determination is our recognition of the need to maintain a skilled and properly resourced work force in the rail industry. Sir Roy McNulty’s value-for-money study will forecast future requirements for work force skills. We will consider Sir Roy’s final recommendations very carefully when they arrive, including in relation to the matters that the hon. Gentleman raised, against the overriding need for any reform to be designed to secure the greatest long-term benefits to the fare payer and taxpayer.

Many of the specific matters that the hon. Gentleman raised are best taken forward by my right hon. Friend the Minister of State, and as I said, I will ask her to write to him formally to provide a response. He suggested that the new contractors should give first refusal to ex-Jarvis workers, but I do not believe the Department should require that, because we have no locus to involve ourselves in commercial arrangements between Network Rail and those whom it seeks to employ, let alone in deciding who contracting companies take on. However, his comments have been noted, and I am sure that those in the rail industry will pay attention to them.

The hon. Gentleman asked whether it would be possible to meet the appropriate civil servants to examine the criteria for when the Department might intervene under the Railways Act 2005. That is a matter for the Department, and notwithstanding the fact that my right hon. Friend the Minister of State is not here, I will suggest to her that that might be a sensible way for the hon. Gentleman to meet officials.

[Jim McGovern]

The Minister mentioned billions of pounds of investment. Could he tell me, or will he meet me—

Regional Cycling Projects

Norman Baker Excerpts

Monday 21st March 2011 Written Statements

[The Parliamentary Under-Secretary of State for Transport (Norman Baker)]

Today, I am announcing £836,000 of additional funding in this financial year to implement a number of small sustainable projects in the cycle towns and, separately, for three train operating companies to enhance their bike and rail schemes. This exceptional decision has been made possible due to prudent management of departmental expenditure, including additional efficiencies made this year.

The chosen cycle town projects—Blackpool, Bristol, Cambridge, Colchester, Darlington, Derby, Exeter, Leighton Linslade, South Gloucestershire, Southend, Shrewsbury Woking and York—have been assessed as capable of being delivered within the current financial year while offering value-for-money. I believe this additional funding will assist in meeting the overall aims of the project to get more people cycling safely. All the recommended projects fit well with the strategic objectives of the towns concerned and will increase the effectiveness of their existing programmes in generating additional cyclists.

The three train operating companies, Merseyrail, South West Trains and Northern Rail, have worked hard, in partnership with local authorities and other organisations, including Sustrans and Network Rail, to deliver high-quality infrastructure improvements accompanied by promotional activities. This is with the aim of encouraging more cycling to railway stations and to deliver improved integration of bike and rail journeys. This money will enable further enhancements to these schemes.

Today’s announcement complements, and is in addition to, our recently launched local sustainable transport fund which allows local authorities to bid for a share of £560 million over four years, aimed at encouraging sustainable transport solutions, including cycling initiatives, that will create economic growth and cut carbon.

This additional funding demonstrates the Government’s continued commitment to cycling, recognising their potential contribution to reducing carbon emissions, improving health and creating economic growth.