Bus Manufacture in the UK

Debate between Robert Goodwill and Nigel Adams

Monday 31st October 2022 Commons Chamber

[Nigel Adams]

As ever, the hon. Gentleman is spot on.

To put those 420,000 Chinese electric buses into perspective, the UK currently has about 40,000 locally operated buses and only about 4% of them are electric. China is intent on maintaining world leadership in electric bus manufacturing and has been winning orders for buses funded by British taxpayers via the ZEBRA scheme. A key question for the Minister is whether the scheme is purely aimed at transitioning buses to electric power, or whether it is also intended to support and encourage our domestic manufacturers to fully transition to manufacturing only electric vehicles.

I am very familiar with the buses manufactured by Switch in the Selby district. The company was formerly known as Optare and is now part of the Indian Hinduja Group. We also have Plaxton in North Yorkshire. It has been part of Alexander Dennis since 2007. My right hon. Friend the Member for Scarborough and Whitby (Sir Robert Goodwill) knows that company all too well, as it manufactures in Scarborough. This is an important part of North Yorkshire’s manufacturing capability.

[Sir Robert Goodwill (Scarborough and Whitby) (Con)]

Does my right hon. Friend agree that it is important that local authorities and passenger transport executives look not only at the bottom line but at the social implications of placing orders outside the United Kingdom, as it could diminish our manufacturing base and mean that, in future, China could have a monopoly of bus supply to the UK?

[Nigel Adams]

My right hon. Friend is right. As we sit here now, China more or less has a monopoly on global bus supply. If we take Wrightbus, Plaxton, Alexander Dennis and Switch into the mix, the industry employs 3,500 individuals directly and an estimated 10,000 indirectly within the supply chain. This is an important sector.

I have been to the Switch factory in Sherburn in Elmet, which has orders from Transport for London, First Bus, Manchester Airport parking, City of York park-and-ride, Dubai and New Zealand. As I mentioned, Switch is part of the Hinduja Group and has started manufacturing UK-designed buses in India, including double-decker buses for the Indian market.

[Nigel Adams]

Not only does it not smell right; it is absolutely not right that we are not purchasing British-manufactured buses.

The model for supplying electric buses is very different from the model for supplying the existing fleets of diesel-powered buses, but electric buses are an excellent fit for the needs of a local bus service. Electric buses do not have the same range as diesel buses, but this is not a disadvantage because the distance travelled each day by local buses on a defined route is known precisely and is within the range of an electric bus working from a local depot. However, the cost of an electric bus is higher than that of an equivalent diesel bus and operators are not experienced in running electric bus fleets. For that reason, the industry is moving to a slightly different model, which should be investigated further, where buses are provided via service contracts, which cover the cost of the buses, the operation of the buses and the charging infrastructure. They can also cover, as part of that, battery upgrades and replacement costs. However, electric buses are far more cost-effective, with lower costs per mile once the transition is made and the infrastructure for charging and servicing is in place.

The key to this is the battery, which is a key component in an electric bus, or any other electric vehicle. For that reason, there is a lot of focus on battery technology, battery capacity and expected battery life. It might be thought that the bigger the battery capacity, the better the range of bus. That is not necessarily the case, but that has not prevented battery capacity from being a key part of the specification, including in some tender documents.

Therefore, battery capacity has been a factor that is believed to have unduly influenced some purchasing decisions. Buses manufactured in China are typically heavier than UK buses, so they have larger capacity batteries. In the case of Switch, the bus is designed around a lighter framework and less weight. Operating methods have a major impact on the capacity of battery required.

The ZEBRA scheme is especially important because, in addition to encouraging the take-up of electric buses, it is encouraging the purchase of new buses to replace an ageing fleet. The pandemic has had a profound effect on the number of passengers using local bus services and even now passenger numbers are far lower than they were before the pandemic. During the pandemic, bus services were supported by the Department for Transport. In August 2022, a further £130 million was made available to support bus services, which is a considerable sum. However, bus operators are now experiencing reduced passenger numbers and the inflationary pressures of fuel and wage rises. It is not surprising, therefore, that they are not placing orders for new buses in larger numbers. In North Yorkshire, a large number of bus services are currently not viable because of reduced passenger numbers.

ZEBRA is a major driver of investment in new buses and a key enabler as a step towards net zero. The £198.3 million of funding announced in March is sufficient to fund 943 new buses. That funding is built on the £71 million announced last year to support up to 335 new zero-emission buses in five areas, as well as hundreds more zero-emission buses that have been funded in London, Scotland, Wales and Northern Ireland.

I hope that that provides you with an insight, Mr Deputy Speaker. I know that they will be thinking of nothing else in Ribble Valley aside from the electric bus market. I now wish to move on to how the Government’s ZEBRA scheme is working in practice and to look at the recent decision by Nottingham City Council to purchase buses from the Chinese manufacture Yutong.

Nottingham City Council has received £15 million of Government funding, yet it awarded the first 12 of its single-deck buses to Yutong. Within the tender, it did not ask for range requirements, instead asking for a specific battery capacity; it asked that the capacity exceeded 420 kW, which basically excluded all UK manufacturers. That is like asking someone to provide the size of the fuel tank rather than the range or the miles per gallon of a vehicle.

UK manufacturers run smaller, more efficient batteries than the Chinese manufacturers, so tend to achieve a similar range with a smaller battery. Nottingham City Council has set a target of becoming a carbon neutral city by 2028, yet it is prepared to ship buses from around the world, rather than buying from carbon neutral UK bus manufacturers. That does not make a lot of sense. It is also believed that the Chinese-made Yutong buses were not the cheapest to tender. I will give some other examples.

[Sir Robert Goodwill]

Will my right hon. Friend also bear in mind that China has not exactly covered itself in glory in relation to human rights and democracy?

[Nigel Adams]

As a former Minister for Asia, I know that too well. I have been at the Dispatch Box, where the Minister for Science and Investment Security, my hon. Friend the Member for Wealden (Ms Ghani), is sat this evening—we all look forward to what she has to say—and she was sat where I am, quite rightly giving me stick up and down dale about human rights abuses in China. I will be interested to hear what she has to say on this particular subject.

Let me give the House some more examples, including the decision taken by Leicester City Council, where the first ZEBRA buses were delivered—also Chinese. Cardiff Council ordered 36 zero-emission buses from the same Chinese company, and Newport City Council ordered a further 16 Chinese buses. They were all supported by UK Government funding.

I mentioned light goods vehicles, especially those used for delivery services. Bus manufacturing is a skilled, bespoke process, as operators seek individual design features. Light goods vehicles are manufactured on a production line and use mass manufacturing techniques; these are high-volume processes. Light goods vehicles are ideally suited to be electric vehicles, because they travel regular routes and not especially long distances. They are the next major EV opportunity, and the technology being used in electric bus transmission is directly transferable.

Child Refugees: Age Checks

Debate between Robert Goodwill and Nigel Adams

Friday 21st October 2016 Commons Chamber

[Mr Goodwill]

We are certainly keeping records of the children. After the children arrive at Lunar House in Croydon for initial processing—“processing” is a terrible word, but the House knows what I mean: the initial welcome they get there—they will then be moved on to temporary holding facilities around the country before they are reunited with their families. All the necessary social services checks will be carried out on those families to ensure the safety of the children.

[Nigel Adams (Selby and Ainsty) (Con)]

Can the Minister provide a bit more detail on exactly what the Government are doing to help protect vulnerable people and migrant children across Europe and the Balkans?

[Mr Goodwill]

As the previous Prime Minister announced at this Dispatch Box, it is important that we should not be distracted by the events in Calais and elsewhere around Europe from the real need, which is in the refugee camps in the war zones and the countries around them. I am pleased that we are the second biggest donor, and we are working closely to ensure that people there get help. There is also, of course, the programme for bringing 20,000 people across from those areas. They are the most vulnerable. Those who can make the journey right across Europe are not necessarily the most vulnerable, and I believe that ours is the right policy.

Rural Bus Services (North Yorkshire)

Debate between Robert Goodwill and Nigel Adams

Monday 10th February 2014 Commons Chamber

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

I congratulate my hon. Friend the Member for Thirsk and Malton (Miss McIntosh) on securing this debate. Buses play a vital role in our economy. More than 2.2 billion bus journeys were made on local buses in England, outside London, in 2012-13. Buses are essential for many people to get to work, to education, to doctors and to hospitals, as my hon. Friend remarked. For many, particularly those in rural areas, the bus is a lifeline and without it they would not be able to access those essential services or go shopping and socialise.

Over half of those who rely on buses outside London do not have access to a car. Customer satisfaction with bus journeys is high—84% are satisfied with their service—and under-21s make up a third of bus passengers, while use among the over-60s is increasing as a result of the national concessionary pass. Furthermore, a recent study by the university of Leeds has reinforced the importance of buses to a healthy, growing economy.

The Government remain committed to improving bus services, and expenditure on buses reflects that: this year, we will spend more than £1 billion on the concessionary travel entitlement and more than £340 million in direct subsidies to bus operators in England; more than £300 million has been allocated to funding major bus projects in the past year; and outside London 42% of the money that goes to bus operators comes from the taxpayer by one mechanism or another. We have provided £70 million through the better bus areas fund to deliver improvements in 24 local authority areas and £20 million to support community transport.

In addition, many bus improvement schemes have been funded as part of the Government’s £600 million local sustainable transport fund, while a total of £95 million has been provided for four rounds of the green bus fund to improve environmental performance. All this demonstrates our commitment. Moreover, as a local North Yorkshire MP, I am pleased that North Yorkshire county council has received more than £5 million in local sustainable transport funding in 2012-15, including for bus improvements in Harrogate and Knaresborough and to boost tourism in Whitby and the Esk valley.

My hon. Friend made the point that initially, when the concessionary scheme was introduced, boroughs such as mine in Scarborough and other popular tourist hotspots felt they were being unfairly treated because they were paying for journeys that started in their area. People going from Leeds or Hull to places such as Scarborough, Malton or Kirbymoorside found that although the council in Hull paid for the journey to the resort, the council in the resort paid for the return journey. The situation has been a lot better since we moved to county-level funding, however, as it means that journeys within North Yorkshire are paid for by North Yorkshire county council.

The central question posed by my hon. Friend was, should pensioners be charged to use their concessionary passes? I believe that this would undermine the basic principle of the concessionary scheme, and many would probably see it as a step too far. Were any Labour Members present for this important Adjournment debate, I believe they would also underline how the principle of the concessionary scheme should be written in stone, not undermined.

[Nigel Adams]

Has the Minister assessed the cost of means-testing to see who can afford to pay?

[Mr Goodwill]

As with other benefits, such as the free television licence and the winter fuel allowance, it would be prohibitively expensive to means-test people. Also, if people had to apply for the pass, as with other means-tested pensioner benefits, we might find a much lower uptake.