HGV Road User Levy Bill (Ways and Means)

Seema Malhotra Excerpts

Tuesday 23rd October 2012 Commons Chamber

[Stephen Hammond]

I have said that the normal rules will apply and that the directive allows the UK Government to spend the money in the way that they consider appropriate. The money will go into the consolidated fund. The Department for Transport has enjoyed robust discussions with the Treasury and got an excellent settlement for the infrastructure of this country. I have no doubt that we will continue to have robust discussions in the future and I am sure that we will continue to receive a good settlement for transport.

The hon. Gentleman asked about the number of hauliers paying more per year. The analysis so far shows, as he has pointed out, that 98% of hauliers would pay no more than £50 a year and that 94% would pay nothing at all. My understanding—I am sure that we will explore this and I may be able to inform the hon. Gentleman later of the latest numbers—is that the maximum loss for conventional HGVs that are either articulated or rigid and do not have a trailer would be £79 a year, based on current exchange rates. Unfortunately, however, our analysis of 7,000 rigid vehicles that tow a trailer has found that 40 vehicles would probably suffer a penalty of some £300, but that is only 40 out of 7,000, which is a significantly small part of the overall haulage fleet of the United Kingdom.

The hon. Gentleman also asked about the rebate that might be applicable to UK hauliers using foreign roads. As is the case with vehicle and excise duty, it is not possible to get such a refund, so the charge would be cheaper than any daily charge. UK hauliers are unlikely to benefit from such a refund.

The hon. Gentleman then asked some general questions, some of which I tackled earlier. On the staging of the levy, he will have heard me say that we have brought the date forward so that there will be a simultaneous introduction in April 2014. He will have also heard me set out the conditions for paying VED at the same time as the levy, so they will net each other out.

My Department does not believe that the opt-out from the European directive on traffic law enforcement will have any implications. We have a robust strategy of enforcement. Vehicles must pay before using a road in the UK and we can stop any that do not and immobilise them until a fine is paid. Again, I am sure that we will explore that matter in Committee.

The hon. Gentleman made some closing remarks about the environment. There is no change to the incentives for greener vehicles. We are committed to considering charging based on polluting carbon vehicles in the future, but for the moment the charging that will be put in place is practical and enforceable. I believe that there will be no disincentives for the green lobby.

I listened carefully to my hon. Friend the Member for Brigg and Goole (Andrew Percy). I thank him for his welcome. He echoed the remark from my hon. Friend the Member for High Peak (Andrew Bingham) about the complex way in which we are doing this, because of the EU rules. However, I am sure that he, like me, is delighted that we are doing it anyway and will raise a cheer for that.

The Chair of the Transport Committee raised a number of points. We will tackle cabotage and the safety issues that she raised on Second Reading and in Committee. However, I say to her directly that we will ensure that the Vehicle and Operator Services Agency has all the necessary resources to ensure that its enforcement procedures are workable. We believe that the measures will ensure that the collection procedures are completely workable.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

Will the Minister clarify whether in his future discussions about safety he will raise improving the safety of cyclists, who are particularly at risk from HGVs?

[Stephen Hammond]

I thank the hon. Lady for those remarks. Her colleague the hon. Member for Ogmore (Huw Irranca-Davies) raised that issue and I am about to respond to his points, so I will address her remarks at the same time.

I welcome the recognition by my hon. Friend the Member for Spelthorne (Kwasi Kwarteng) that this is a commitment being delivered upon. He is no longer in his place, but I was delighted that he recognised that. He asked the rhetorical question: is it right that foreign users contribute to our roads? Of course it is. That is why this measure is being put in place and I am delighted that we are doing it now.

The hon. Member for Ogmore opened his excellent contribution with his impassioned support for businesses along the M4 corridor. I will try to answer some of his questions. He, too, asked about enforcement, with particular reference to the police’s role in enforcement beyond VOSA. The police, of course, can enforce this legislation and prosecute offenders. It will not be their main objective, and the primary responsibility for enforcing it will lie not with the police but with VOSA, as I have made clear.

The hon. Gentleman asked whether, if foreign hauliers could pay the bill on a daily, weekly, monthly or annual basis, there would be issues to do with the setting of the rate and the ability to do so. I would say two things to him in response. First, we are allowing that flexibility to ensure that we capture everybody who intends to come to the country. Secondly, at the same time the level of the payments will be set annually in the Finance Bill.

The hon. Gentleman made some remarks about how we will offset the compensation for UK hauliers. I hope that my remarks to the hon. Member for Poplar and Limehouse will have clarified that matter for him. Equally, on the question of the charge level, as he knows, the Eurovignette sets a maximum of €11 a day for time-based charges. The maximum that that is likely to increase to owing to inflation is €12. Unlike other EU countries, we are not going to have a lower daily rate, but will look at the daily rate that is permissible.

The hon. Member for Ogmore rightly asked what action I and my officials had taken to reassure ourselves that the levy was not discriminatory. I took quite a lot of action because, as he might well guess, my first concern was that if there had been a significant time delay it would have discriminated against UK hauliers. I am delighted that my officials, working with EU officials, have now been able to secure the agreement that we can introduce the duty for both groups in 2014. I confirm that to ensure that was the case, officials spoke to the Commission before the consultation, and it indicated that it was content with our emerging proposals.

The hon. Gentleman asked about the amounts that we intend to charge. We are clear that they are as set out in the directive and that our plans comply fully with it.

I will now answer a question that I thought the hon. Gentleman might ask, just to help him along—I am in that kind of mood this afternoon. I thought he was going to ask me why the Welsh Government might think it necessary to lay a legislative consent motion. He did not, but let me put it on record that in our view, that is not necessary. The HGV road user levy is a tax, and taxation is a reserved matter. I believe the Welsh Assembly is concerned that there will be some problems because EU law prevents double-charging for the same stretch of road except in certain circumstances. However, we have said that if a devolved Administration wanted to introduce a charge or toll, we would modify the HGV road user levy as necessary so that could be done. I confirm that my officials and Welsh officials have spoken about the matter in the past week. The Scottish and Northern Irish Governments have decided that no legislative consent motion is necessary, but it is of course for the Welsh Government to decide whether they wish to pursue one. I thought I might take the opportunity to put that on record.

I believe that I have covered all the hon. Gentleman’s queries, except about cycle safety campaigning. He will know that I was delighted to be able to be at the National Transport Awards the week before last, along with my fellow Under-Secretary of State for Transport who was perhaps on more verbose form that night than in the House today, and to present an award to Philip Pank, the journalist from The Times. The hon. Gentleman will also know that in my second week in the job, I was delighted to be able to launch the Think Cyclist campaign.

As I have indicated, road safety is a key road policy priority for the Government, and the hon. Gentleman will have noted that we have made significant extra money available to local councils in the past six months for local cycle safety solutions. I am happy to work with the industry throughout the Bill’s progress and thereafter to ensure that road hauliers are aware of the need for cycle safety. I am aware, of course, that many of them already recognise that imperative.

My hon. Friend the Member for North West Leicestershire (Andrew Bridgen), spoke about his passion for road haulage. He raised a couple of matters on which I may be able to give him some clarity this afternoon. Although he recognised that there would be a charge of £200 for roadside infringements and a maximum fine of £5,000 for cases that go to court, he was concerned about how we would be able to enforce that. We will be able to take deposits from road hauliers if they do not have a UK address and, as has been pointed out, we intend to pursue them so that the charges are made payable before they enter the UK road system. The necessary enforcement measures will be in place if anyone attempts to enter for a second time without paying those charges.

My hon. Friend also asked about Northern Ireland. I have already put it on record that we believe that this is a tax matter, and therefore a reserved matter that will apply right across the UK. However, as I said when the Welsh Government raised the issue, the Government have no intention of reducing the ability of the devolved Administrations to introduce tolling or charging if they so wish.

My hon. Friend asked specifically about the Irish Government, who have written to the Department asking for the charge not to apply in Northern Ireland. That is partly because they make a financial contribution to some road improvements in Northern Ireland, which they do because Irish hauliers use those roads and benefit from them. Furthermore, Ireland already has road charges in the form of tolls, and should the new charge apply in Northern Ireland, it would be roughly the same amount as those existing tolls—a round trip between Belfast to Dublin would incur roughly the same amount. We have suggested that if the Irish Government were to propose a set of roads that criss-cross the border, we will look to exempt them from the charge.

The hon. Member for Dundee East (Stewart Hosie) raised a point about the 12-month period, and I will explore that matter further and write to him if he will accept that. My hon. Friend the Member for High Peak spoke about the finest quality limestone and how it gets moved around the country. I hope that his local press statement will say, “If it’s thank you Brussels for nothing, it’s thank you to this Government for something”—I am sure that is how he will phrase it. I have obviously heard his strictures about the new bypass from Mottram to Tintwistle, and the bridge at Chapel Milton. I have no doubt that an invitation to come and visit those places is already winging its way from High Peak to Great Minster House, and I look forward to receiving it.