Vehicle Technology and Aviation Bill (Sixth sitting)

Debate between Richard Burden and Alan Brown

Tuesday 21st March 2017 Public Bill Committees

[Richard Burden]

I would certainly defer to your judgment about the fact that the new clause is in order, Ms Ryan.

May I take the hon. Member for North West Hampshire back to something he himself said, which is that he thinks that bringing forward strategies is the job of Ministers? I agree, and that is exactly what the new clause says: it asks Ministers to bring forward a strategy for encouraging the uptake of electric vehicles. The reason we are suggesting that is that the Bill, as it stands, deals with one element of the picture, which is the question of the charging infrastructure. That is important, but it is only one element of a larger picture. As the Government impact assessment says, it is part one of a rolling programme of reform. In future waves, they will need to expand the infrastructure beyond the scope even of what is in the Bill. That is why we have been talking a lot about how we can future-proof it. They will also need to address barriers to uptake and concerns and uncertainties of the kind that we discussed in the evidence session, such as capital cost, residual values and battery ranges; encourage more active procurement of ultra low emission vehicles, including electric vehicles, by public authorities; and introduce an active industrial policy to ensure that the UK is in pole position to develop and make electric vehicles in the future.

I have to say that the Department for Business, Energy and Industrial Strategy’s Green Paper, “Building our Industrial Strategy”, is a good document. There are some very worthwhile things in it, including proposals for meeting the challenge of increasing our involvement in the research, development, commercialisation and manufacture of these vehicles. I absolutely welcome all that, but the point of the new clause is that the relationship between that industrial strategy and the transport strategy that the Bill is concerned with needs to be much clearer. We also need to assess all the existing and potential incentives for consumers and business. The Government regularly reference those, but—this has come up several times in debates—it is difficult to reconcile what they say about the importance of consumer incentives with their cuts to grants, plug-in vehicles and so on.

Home charging is a logical and important place to start but, as we have heard, in urban areas, which are potentially one of the most fruitful markets for electric vehicles, that is not always simple or practical. We need some innovative thinking and new ideas to encourage and incentivise uptake. I am sure the Minister is brimming with them—we know that it is only a matter of time before the Hayes hook-ups hit our streets. We need to consider the kinds of issues that Quentin Willson urged us to look at when he gave evidence: wireless on-street charging, possibly using street lamps, and exploring other options in urban areas where private parking areas are simply not widely available. It is also important to address how the charging infrastructure can be extended to places such as supermarkets, shopping parks and workplaces, where there is natural dwell time and less inconvenience for electric owners charging their vehicles.

It is important that the Government are seen to be leading the way on electric vehicles. I broadly welcome the actions of the Minister and the Government and the keenness that the Minister has brought to the subject in our deliberations. Like him, we all want to ensure that the UK is one of the world leaders in manufacturing and supporting infrastructure for electric vehicles, but we also want it to be a leader in their uptake, moving towards a new transport system and a different contribution to our economy. That all goes well beyond the Bill, but it is important that the different strands of Government thinking on industrial strategy and transport strategy are brought together.

The new clause would encourage and require the Government to think ahead, and think creatively, about putting a strategy in place to confront the inhibitors of uptake and gear the UK towards a new economy and a new kind of transport system. As I have acknowledged, the Government’s aim is to address the inhibitors to widespread uptake of EVs, but the Bill’s focus is narrow. It addresses only the charging infrastructure and the information available, not the wider challenges that I referred to—capital cost, wider infrastructure, residual value, battery technology and so on. I think the Minister recognises that—he has said that this is step one on a journey of many steps—but I would like him to assure us today that the Bill will kick-start an active and innovative Government strategy to make EVs and other ultra low emission and zero-emission vehicles the go-to vehicles for the UK. He is well versed in overcoming the barriers to uptake, but we need to know how he and the Department for Transport will confront them.

[Alan Brown]

Following on from the comments of the hon. Member for Birmingham, Northfield, I agree that we hope that the Government will set out a strategy to kick-start the roll-out of electric vehicles. Whether a report about the uptake of vehicles is a political decision is, I think, semantics. All Government decisions are political in one way or another. A Government make a political decision and then implement policy, and that is a political decision and then policy making by that Government at that moment in time. Any subsequent Government can change the legislation to suit their politics, their decisions or their changes in policy. So this might be a political decision or it might not be, but it is about implementing policy.

Clearly, the Government support the roll-out of electric vehicles. Part 2 of the Bill is about the electric charging network, so why would they invest in such a network and have provisions in the Bill to extend it if they were not going fully to support the roll-out of electric vehicles? I would, therefore, welcome a report. The Government have a 2020 target of 1.6 million electric vehicles and we are 1.5 million short at this moment. I would welcome, therefore, seeing how the Government think they will achieve that target.

Recently, there have been cuts in the grants available for purchasing electric vehicles, for hybrid vehicles and for home charging, so some of the political or policy decisions have been contrary to increasing the uptake of the vehicles. Therefore, it would be good if the Government came back with a report that clearly outlined how they were going to increase uptake of electric vehicles and meet their 2020 target and the long-term 2050 target. We have heard on Second Reading and in our Committee sittings that other countries are much further ahead in increasing the uptake of electric vehicles, so I would like to think that a Government report could look at what those countries are doing and incorporate that into their strategy as part of a look ahead. Coming back with a report has merits, and would allow everyone to see the clear direction from the Government.

Vehicle Technology and Aviation Bill (Fifth sitting)

Debate between Richard Burden and Alan Brown

Tuesday 21st March 2017 Public Bill Committees

[Richard Burden]

My hon. Friend is right. It indicates that when we come to a decision later on new clause 7, it will be important for all Committee members to consider it seriously. This is not something that should divide us along party lines; it is something that we should all be concerned about. We have more issues and questions about some aspects of clause 12, but as the amendments relating to most of them have been grouped under clause 15, I will leave it there for now and keep the Minister and other hon. Members in suspense.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

I want to make a few brief points. Cyber-security is clearly a huge issue in this day and age, so we should consider it as we go forward. We need to think about where the endgame is for us: it is the 2050 target of all vehicles on the road being low-emission. That is partly predicated on the roll-out of the smart charge point grid and the use of electric vehicles. If we are looking towards that 2050 horizon, we need to take as many steps as we can to ensure that there is a practical roll-out and a safe mechanism. This and neighbouring clauses are about certain roles, responsibilities and liabilities, so making the owners and suppliers of charge points responsible for their security, and setting out regulations that define that safety and security, makes sense. For that combination of simple reasons, I support the amendment and the new clause.

--- Later in debate ---

[Alan Brown]

I support the hon. Gentleman’s principle. The amendment states:

“The Government must publish a review within one year”

of Royal Assent, but the explanatory statement says that the Government must “regularly review the impact”. By stating only that there must be a review within one year, that is asking for only one review. As we move into the post-Brexit world, would a review after one year be appropriate? We may need to look at the wider consequences as we go forward.

[Richard Burden]

The hon. Gentleman is right that the amendment talks about a year, which is because we want to get that ball rolling. As with so many other things, the environment is changing—that is particularly the case in relation to Brexit. ATOL will still be there post-Brexit, although when we discuss the next group of amendments we may explore possible changes.

The package travel directive will no doubt still be there for the states that are still members of the European Union. What is uncertain at this stage is what the interface will be between those two things post-Brexit. The Government must address that. As I said, we ask them to get the ball rolling within a year of the Bill receiving Royal Assent, but the hon. Gentleman is right about the need for regular review, particularly in the light of Brexit.

Vehicle Technology and Aviation Bill (Fourth sitting)

Debate between Richard Burden and Alan Brown

Thursday 16th March 2017 Public Bill Committees

[Richard Burden]

I will focus first on amendment 13. As it stands, the Bill allows the Government to impose requirements on what are described as “large fuel retailers” and “service area operators”; the problem is that Ministers have yet to define or outline the definitional criteria for what those actually are. It is a bit “Alice in Wonderland”—the requirements will apply to large fuel retailers and service area operators, and the definition of those is what the Government say they are.

The policy scoping notes say that “evolution of the market” and other factors mean that the Government are not yet in a position to apply the powers that they are taking in the Bill, and they may not even be in a position to start doing so for a year or two after Royal Assent. Paragraph 3.10 of the scoping notes says:

“It would not be appropriate to develop draft regulations before it had been decided to regulate”,

but on page 2, the notes say that Ministers will “produce draft regulations” relating to part 2 of the Bill before it reaches the Lords in the summer. There appears to be something of a contradiction in the Government’s logic. I know that this is a changing and emerging scene, but we need more clarity from the Government on when they will be in a position to produce draft regulations relating to this part of the Bill, who they will apply to and who they will consult. This relates to when they will actually apply the powers given to them by the regulations that they will bring in.

Amendment 13 goes some way towards trying to address that. It requires the Government to publish in draft the criteria for and definition of large fuel retailers and service area operators that they intend to use. In light of the policy scoping notes, arguably the amendment does not go far enough in asking for that clarity and those definitions. Will the Minister table amendments on Report to provide greater clarity on the sequencing of draft regulations, the application of powers and consultation, and on the timing of what the Government envisage?

In the meantime, it is worth pausing to consider some definitional points, as amendment 13 tries to do. What is a large fuel retailer? Going by the Government’s impact assessment, how large a fuel retailer is seems to be based on market share. That makes sense in a way, but I am not sure whether Ministers have missed a trick. As my hon. Friend the Member for Wolverhampton South West said on Tuesday, there could be a case for removing the word “fuel” altogether from the definition of a large retailer, so that the Bill could apply the mandating of the availability of charge points to a much larger operator.

We know from some of the evidence we heard on Tuesday that mandating charging infrastructure requirements on motorway services areas and the like is only one part of what needs to happen. Indeed, in the evidence sessions, one of the things that came over clearly to me is that getting the right incentives in place for home charging is just as important as anything that happens in motorway services areas. I therefore question whether the cuts that Ministers have made to the plug-in car grant and other consumer incentives are consistent with that objective.

It is also just as important to address how charging infrastructure can be expanded in supermarkets, shopping parks and workplaces. In the evidence session, Quentin Willson urged us to focus on how the UK can get ahead of the game in getting connectivity for wireless on-street charging in place. He also urged us to look at how street lamps can be converted into charging points. All those things seem to go well beyond the kind of charging infrastructure that the Bill envisages and covers.

When the Minister replies on this group of amendments, I hope he will give us some reassurance that the Government are looking at those kinds of initiatives, even if they are not covered by the Bill. If they are not to be covered by the Bill, who will be responsible for making those kinds of initiatives happen and come into being? Who will be charged with looking at whether we can have charging points up and down the country on lamp posts? When and how will they be charged with doing that? The Bill does not address those kinds of issues. Between now and Report, will the Minister reflect on whether something can be done? Perhaps something can be put into the Bill to at least start addressing some of the broader issues before it completes its passage.

In the meantime, it is worth putting on record that companies are concerned about what the Government taking the kind of powers conferred by the Bill will mean for them. These are much more immediate practical issues, but the Government’s impact assessment lays out the potentially significant cost to the operators affected by this part of the Bill, which could run into many millions of pounds.

That brings me on to amendment 11. As we heard on Tuesday, fuel retailers, particularly those with limited forecourt space, are worried that they simply will not be able to meet the requirements of the regulations that the Government bring in, particularly if—returning to the previous debate—they have to accommodate a variety of different charging and connecting points. Inevitably, some fuel retailers will not have the space to implement those changes without expanding the land they have available. The amendment would provide an exemption in such instances, when meeting the regulations would result in disproportionate costs to the retailer.

[Alan Brown]

With amendment 13, I agree that it makes sense to ask the Government to provide that absolute clarity, but how is “disproportionate costs” defined in amendment 11? One thing that struck me was that the people giving evidence were very reticent to install the charging points anyway. There is a risk that people would hide behind a definition of “disproportionate costs”. Is there any way that that could be firmed up?

[Richard Burden]

The hon. Gentleman is quite right. I will be clear: amendment 11 is worded to probe the Government’s intentions and to ask the Minister to provide greater clarity on these issues so that the operators of motorway and other service areas know a bit more about who is likely to be affected, what will be required of them and how much it will cost. The hon. Gentleman is right; what might be disproportionate to one operator will certainly not be to another.