Driver and Vehicle Agency (Northern Ireland)

Richard Burden Excerpts

Tuesday 15th October 2013 Westminster Hall

[Richard Burden (Birmingham, Northfield) (Lab)]

It is a pleasure to serve under your chairmanship, Mrs Riordan. I add my congratulations to the hon. Member for East Londonderry (Mr Campbell) on securing this debate.

I welcome the Minister. We are both new to our respective roles and we both have a long-standing interest in road transport—in fact, we were both involved in a Ford eco-driving training session some years ago, which I will swiftly pass over because he did rather better than me. I also welcome my hon. Friend the Member for Ealing North (Stephen Pound), who takes a close interest in these issues as shadow Northern Ireland Minister.

The hon. Member for East Londonderry said that people always start Westminster Hall debates by saying that the issue is topical and important, and this one is that. The issue has rightly attracted huge concern from across the political spectrum in Northern Ireland. I will raise three major issues on how the process is being undertaken and its potential impact on Northern Ireland.

My first point is about how the reform is being done. I am sure we would all support in principle the modernisation of vehicle registration licensing. As has already been said, there has been significant neglect and under-investment in vehicle licensing services by the DVLA in Northern Ireland, and all drivers deserve the same high level of service. It may make sense to try to centralise databases between GB and Northern Ireland, to streamline the system and so on, but just because systems and databases can be streamlined does not necessarily mean that how the service is delivered to the public has to be centralised, too. That point has been made by a number of hon. Members today.

The experience of DVLA centralisation in other parts of the UK is not encouraging. The Minister said that the initial rise in complaints has not been maintained, but that does not answer the full point. My hon. Friend the Member for Ealing North said that, since the start of the closure programme, the DVLA has spent in excess of £1.63 million on overtime payments, and my hon. Friend the Member for South Down (Ms Ritchie) corrected him by saying that the figure is worse than that—£1.65 million.

If that amount has been spent so far on overtime payments for the centralisation process, something is going wrong. That is no criticism of the staff at Swansea, who do a professional job, as their colleagues do in other parts of the UK, but there is a real question about whether Swansea is equipped to cope with the increased demand of the centralisation programme. We would all question whether centralisation from Northern Ireland should be added to the demand already being created in Swansea without significant investment.

I have some practical examples. In Scotland, all applications to transfer a personal registration plate from one car to another moved to Swansea, which led to processed applications falling well behind the seven-day target. The Scottish Motor Trade Association, as my hon. Friend the Member for Foyle (Mark Durkan) said, reported delays of up to six weeks and described the situation as “a shambles.” That has caused frustration, and it is poor service.

It is not good enough for the Minister simply to say, “Well, we are getting on top of this,” because we need to learn from what has happened. We need to know how the Government have got on top of the situation and whether the centralisation in Northern Ireland will make matters worse; it seems to me that it is likely to. We should not repeat the situation.

My second point is on the centralisation’s social and economic impact. Hon. Members from across the political spectrum have rightly talked about that. Some 324 jobs are going in Northern Ireland, with 250 of those jobs in Coleraine. I know from personal experience in my own constituency that the closure of a major employment site not only causes direct job losses, serious enough though that is, but has an enormous impact on the local economy, too. Many hon. Members have made that point today. The actual job losses due to the overall effect of the centralisation programme in Northern Ireland is estimated to be closer to 500.

My hon. Friends the Members for South Down and for Foyle, and other hon. Members, have talked about the centralisation not only being an issue for Coleraine, although that is the biggest single concentration; there are impacts in Downpatrick, Derry and elsewhere. Bluntly, we are talking about the equivalent of many thousands of jobs going in GB if the same scale of job losses were to happen over here.

The Government have been rather coy about the likely impact of those job losses on the economy, but not everyone else has been. Oxford Economics has undertaken research estimating that £22 million of gross value added a year will be removed from the Northern Ireland economy, which will add to the rising unemployment bill. There will be an estimated increase of some £2.5 million in the annual jobseeker’s allowance bill because of the job losses alone, and there will be a further £3.6 million lost in tax revenue. If all that is added up, along with various other things, we are talking about substantial losses and a substantial hit to the Northern Ireland economy, as hon. Members have already said.

With such questions on what is taking place, people might think that the Government would at least have got their consultation procedure right, that they would have started the consultation in a timely fashion, that they would have done it sensitively and that they would have listened to advice from people on the ground who know what the real situation is. That just has not happened, has it? The Government failed to listen to local people’s concerns.

I pay tribute to the work of those, including the former Northern Ireland Environment Minister, Alex Attwood, who got the Government to consult in the first place. However, as many hon. Members have mentioned, the consultation document contains accusations that are, frankly, offensive—not to one section but to every section of the community in Northern Ireland. That requires a bit more than a public apology. I welcome the public apology from the Minister concerned, but the Government need to think about how they came to issue a consultation document containing that kind of thing in the first place.

I hope the Minister will reflect on what has been said today, and I hope he will reflect on what the Prime Minister said on his recent visit to Northern Ireland. He was over there promoting Northern Ireland, rightly, as a destination for inward investment. He said:

“Put your money in Northern Ireland and be part of this incredible success story because investing in Northern Ireland makes good business sense.”

Well, amen to that. But if that is the message to the private sector, perhaps the Government need to consider their own activities.

Unless and until the Minister can provide clear answers to the important issues raised today on the services that will be at risk, on the scale of job losses involved, on the impact on the benefits bill and on the hit to the UK taxpayer, and until he can quantify exactly what benefits will accrue from the change, perhaps—even though the consultation is formally coming to an end—he should pause, think again and come back with a considered response. The way things look at the moment, although the issue has been bouncing around for years, the consultation has been botched. There are very serious question marks about the centralisation, and the Government need to address them.

[The Parliamentary Under-Secretary of State for Transport (Mr Robert Goodwill)]

I, too, congratulate the hon. Member for East Londonderry (Mr Campbell) on securing this debate on the future of vehicle registration and licensing services in Northern Ireland. I also welcome my opposite number, the hon. Member for Birmingham, Northfield (Richard Burden), to his place. I hope we can work together constructively—at least most of the time.

Let me acknowledge from the outset that I recognise that this is an important and emotive subject for the hon. Member for East Londonderry, his constituents and other hon. Members in Northern Ireland. In that respect, he will be pleased to know he has friends in high places, because the First Minister raised the issue with the Prime Minister on Friday, and the Secretary of State for Northern Ireland telephoned me on Sunday to discuss it personally; indeed, when I had my briefing session, I invited an official from the Northern Ireland Office, to ensure the voice of Northern Ireland was heard—talk about friends in high places.

Against that backdrop, I must explain that, as the hon. Gentleman will know, vehicle registration and licensing throughout the UK is an excepted matter and the responsibility of the UK Government. In GB, these services are delivered by the Driver and Vehicle Licensing Agency, in Swansea. In Northern Ireland, the DVLA has an agreement with the Driver and Vehicle Agency, which is part of the Northern Ireland Department of the Environment, to deliver vehicle registration and licensing services to motorists there. The DVA has traditionally delivered those services through its centre in Coleraine and eight other offices in Northern Ireland.

While I understand the hon. Gentleman’s concerns, the crux of the issue is that the vehicle registration and licensing services available to motorists in Northern Ireland have fallen behind those available in the rest of the UK. For example, motorists in Northern Ireland are unable to tax their cars online and have only limited services available at post offices. As the owner of more than a dozen vehicles, I must say I find the online tax system very simple. I can tax a tractor in 20 seconds; where I have to pay to tax a vehicle, it takes about two minutes. Otherwise, I would have to travel 4 miles to my nearest post office, which I cannot, of course, do on a Sunday night.

The consultation that has recently ended contains proposals to modernise services in Northern Ireland and to ensure that motorists there are treated the same as those in GB and can enjoy the same services. If the proposals outlined in the consultation were adopted—I must stress that I have not yet decided on the way forward—motorists in Northern Ireland would be able to tax their cars online and via an automated telephone service that would be available 24 hours a day all year round. Many more services would also be available at about 150 post offices throughout Northern Ireland.

Services to businesses in Northern Ireland would also be improved. Companies would have access to the same level of service as those in the rest of the UK, allowing them to streamline their processes so that they did not have to manage the registration and licensing of vehicles differently from companies in GB.

The changes proposed in the consultation would also ensure that motorists in Northern Ireland can never again fall behind those in GB when new services are introduced in the future. When the DVLA introduces more digital and online services in GB, those would become available to Northern Ireland motorists at the same time.

I acknowledge that introducing new services online and through post offices and centralising the delivery of the remaining services delivered by the DVA in Northern Ireland at the DVLA in Swansea would have an impact. Currently, the full-time equivalent of 324 staff work on vehicle registration and licensing services at the DVA in Coleraine. Introducing more online services and making more services available at post offices would mean that those staff were no longer needed for that work. The DVLA forecasts that 75% of the transactions currently undertaken by Northern Ireland motorists would be carried out online or at local post offices.

I stress that, despite many reports and statements to the contrary, there is no intention to remove those jobs from Coleraine to create the same number of new jobs in Swansea. The DVLA estimates that, if the new online and post office services are introduced in Northern Ireland, there would remain about 500,000 transactions where customers needed to deal directly with the DVLA. That sounds significant, but the DVLA in Swansea currently deals with 97 million vehicle transactions a year. The extra 500,000 could be absorbed by the DVLA with no increase in staff numbers and no effect on customer services.

To answer a point made by the hon. Member for East Antrim (Sammy Wilson) and the shadow Minister, the proportion of tax discs issued online is running at about 60%, and it is increasing. Of course, face-to-face services would also be available in post offices in Northern Ireland.

We must recognise that we are now in a fast-changing, digital world. Customers expect to be able to transact when and where they like—increasingly, from the comfort of their own homes. The way in which services have been delivered in the past, and the higher number of people required to deliver them, is becoming unsustainable. That is particularly true when more convenient and efficient alternatives are available and in use elsewhere in the UK.

Indeed, the DVLA is going through its own transformation process, which has resulted in many more services being made available at local post offices and in other services being centralised at the DVLA’s headquarters, in Swansea. That means that all the DVLA’s local offices in GB will close by the end of the year, with the loss of 1,200 jobs. The proposals for Northern Ireland vehicle registration and licensing services are no different from what is already happening in the rest of the country.

[Richard Burden]

The Minister is talking about the DVLA’s systems, but one important issue raised by Members from Northern Ireland, which I raised as well, was the impact on the Northern Ireland economy. We have heard the Oxford Economics estimate of direct and indirect job losses and of the impact on GVA. Will the Minister confirm those figures? If he is unable to do so today, will he write to hon. Members with the Government’s assessment of the impact on the Northern Ireland economy?

[Mr Goodwill]

I thank the hon. Gentleman for his question. Unemployment in Northern Ireland is lower than the UK average, and it has fallen by 1.2% in the past year. The analysis provided by Oxford Economics does not reflect the full impact the changes to the DVA’s operations will have, because it takes no account of the benefits from the expansion of digital services and the widening of services offered at post offices. Those changes will increase choice and ease of access for customers and reduce the cost of vehicle licensing and registration to businesses, ultimately increasing employment in Northern Ireland.