Uninsured and Untraced Drivers' Agreements (Review)

Stephen Hammond Excerpts

Wednesday 27th February 2013 Written Statements

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

The Department has today published a consultation paper on our review of the uninsured drivers’ agreement and untraced drivers’ agreements, which the Secretary of State for Transport is a party to with the Motor Insurers’ Bureau (MIB).

These agreements provide a framework within which the MIB investigates claims and provides compensation to victims of accidents occurring in Great Britain and caused by uninsured or untraced drivers. They are updated periodically to ensure that they are fully up to date and provide appropriate compensation for claimants in accordance with EU and UK law. The current uninsured and untraced agreements date from 13 August 1999 and 7 February 2003 respectively. We have worked with the MIB, as the other contracting party to the agreements, in this process of review to see what amendments are necessary.

We need to ensure these agreements are compliant with the law but also as straightforward as possible in their drafting—making them easy to understand and apply. It should be borne in mind that, ultimately, premium-paying motorists bear the costs of all claims investigated and paid under these agreements.

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

Road Network (Economic Growth)

Stephen Hammond Excerpts

Monday 11th February 2013 Written Statements

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

This statement is to inform the House that I am today publishing a consultation on revised policy setting out the role of the strategic road network in enabling economic growth.

The new policy will replace circular 02/2007 planning and the strategic road network, and DFT circular 01/2008 policy on service areas and other roadside facilities on motorways and all-purpose trunk roads in England.

We are consulting on changes that will mean in some cases constraints are removed from local authorities and other local decision makers, when considering proposals for new developments.

In reducing regulation, the updated policy will encourage growth by making it easier for businesses and communities to develop, while at the same time ensuring that the road network continues to operate efficiently.

A47 (Upgrading and Dualling)

Stephen Hammond Excerpts

Thursday 7th February 2013 Commons Chamber

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

I congratulate my hon. Friend the Member for Mid Norfolk (George Freeman)on securing the debate. I know that the paucity of people in the Public Gallery has nothing to do with the power of his case; I am sure that it is more the thought of the Minister replying.

My hon. Friend raised with me, the Department and the Highways Agency the subject of future improvements to the A47 along with a number of other hon. Members, some of whom are in the Chamber tonight. They include my hon. Friends the Members for Great Yarmouth (Brandon Lewis), for Norwich North (Miss Smith), for Norwich South (Simon Wright), for South West Norfolk (Elizabeth Truss), for North West Norfolk (Mr Bellingham) and for Broadland (Mr Simpson). Tonight we have heard from my hon. Friend the Member for North West Norfolk. I met him recently and was delighted to do what we could at Middleton, and I also heard what he had to say when he made the case for King’s Lynn. Of course, I also heard the point made by my hon. Friend the Member for South Norfolk (Mr Bacon) about the Norwich research park, and it will not be lost.

I recently met my hon. Friends to discuss future proposals to improve the A47 so they know I take a great interest in the subject. I appreciate that it is important for the constituents of my hon. Friend the Member for Mid Norfolk, those of my other hon. Friends and the economic growth of the whole region. Before I discuss the A47 specifically, it is probably worth making the point that the Government regard infrastructure as a top priority. We set out in the coalition agreement a commitment to a low-carbon transport infrastructure as an essential element of building a dynamic and entrepreneurial economy. We reiterated the importance of investment in economic growth, including in the strategic and local road networks.

The A47 is part of the strategic road network, which is worth about £100 billion and covers some 4,350 miles of motorway and all-purpose trunk roads. The fact that we recognise the importance of its maintenance and enhancement can be seen through the history of this Government’s spending. In the 2010 spending review, we announced the investment of £1.4 billion in starting 14 major road schemes. In the 2011 autumn statement we identified for accelerated delivery two Highways Agency major road schemes and introduced six more schemes, making eight in total, and we allocated £1 billion of new investment to tackle areas of congestion. In the 2012 autumn statement, the Chancellor announced additional capital investment in this Parliament that would enable four further new major Highways Agency schemes to be introduced as well as making moneys available for pinch-point schemes in the strategic and local road networks.

Within the current spending review period, we will spend £1.8 billion on local authority major schemes. They will deliver significant improvements to local road networks and public transport across the country. My hon. Friends will recognise that one of those is the Norwich northern distributor road, and I hope they acknowledge the money that will go into that project.

It is important to recognise that our investment commitment is not only in the major schemes. Importantly, the Chancellor announced in his 2012 autumn statement the provision of a further £100 million of capital expenditure to undertake pinch-point schemes on the strategic network. From my point of view and, I hope, that of my hon. Friends, the most important announcement was the £170 million for a new fund for the local authority network to allow the authorities to consider the possibilities for schemes that would unlock congestion and sponsor economic growth.

I am sure that my hon. Friends will acknowledge our announcement last October about two pinch-point schemes on the A47—at the Honingham roundabout and at the junction between the A1 and the A47 at Peterborough. The Highways Agency is involved in delivering those beneficial schemes and they will both be delivered by the end of the spending round, by which I mean March 2015. I hope that my hon. Friends will recognise and welcome that short-term investment.

I am grateful to my hon. Friend the Member for Mid Norfolk for setting out both the context and the need for future improvements to the A47. As he and other hon. Friends will know, and as he acknowledged, I met a number of them in December to discuss the proposals put forward by the A47 Alliance in its “Gateway to Growth” prospectus. I am happy to reiterate what an excellent document that was. It showed how local and regional interests had combined, in stark contrast to what we had seen under previous Governments. Members of Parliament and representatives from county and district councils had come together and worked closely together to set out the case for future investment. They make that case more powerfully if they do so in a joined-up, coherent fashion.

I recognise what that prospectus says. It is a targeted programme of improvements to the strategic road network. It details about 15 specific individual schemes, with five related to the Highways Agency network and a range of other proposals. I could, if my hon. Friends wish, detail all 15 schemes now, but I know that they will have read that document and have it close to them all the time. I will therefore not detail all those schemes, but they are exciting and they would generate growth, unlock housing and be good for road safety. They tick all the boxes.

The partners in the A47 Alliance have secured funding for some of these propositions already, and they are confident that they can go further and secure delivery locally. I recognise the case being made. The A47 is part of the strategic road network. Sections around Peterborough, Lynn and Norwich are all dual carriageway standard. Some elements of it are not. There have been previous and significant improvements to the A47, but it is fair to make the point that the previous Government curtailed a number of improvements that would have helped Norfolk: the Acle straight, the Blofield to North Burlingham dualling, the North Tuddenham to Easton and the East Wynch-Middleton bypasses all seemed to go the way of so many regional plans throughout the country—

[Mr Bacon]

The A140 was the same.

[Stephen Hammond]

Indeed—much talked about but seldom delivered. It is worth putting it on the record that the A47 Alliance rightly puts those proposals back into the package. They would be of great benefit.

My hon. Friend the Member for Mid Norfolk rightly recognises that we are developing route-based strategies as a way of analysis. Three are already being trialled. In considering major future enhancements to the network, we are looking to local authorities, local enterprise partnerships and other interested parties, including academic institutions and councils, to work together to assess the potential of their region by addressing not only the transport problems that they face, but the economic growth that would be unleashed if those transport problems and congestion were resolved.

It is right, as I stated in December and am happy to reaffirm this evening, that excellent work has been done by the A47 Alliance. That is ideally placed to be considered one of the earliest route-based strategies in the forthcoming programme, and I hope that it will be among the first one or two after the three that we are currently considering.

I conclude by thanking my hon. Friend for yet again making the case. I recognise absolutely the importance of the A47 and the economic improvements that it could bring. I am convinced that East Anglia is not a Cinderella region. I made that point when I was with my hon. Friend the Member for South West Norfolk at the start of works for the A11 dualling. The interest from colleagues here on a Thursday evening shows how powerfully they are making the case for their constituencies, sometimes purposefully from the Back Benches and sometimes a little more mutedly by my hon. Friend the Member for Great Yarmouth.

[George Freeman]

He is not normally that quiet.

[Stephen Hammond]

He is this evening, but the force of his advocacy for his constituents is recognised.

I recognise the importance of the A47 and I am glad that we have yet again been able to air its importance this evening.

Question put and agreed to.

A120

Stephen Hammond Excerpts

Tuesday 5th February 2013 Westminster Hall

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

I am pleased to see you in the Chair, Mr Sheridan, and I am delighted to be here. I congratulate my hon. Friend the Member for Witham (Priti Patel) on securing the debate. She knows that, were it not for the debate in the main Chamber, many more people would be here this afternoon. I have been particularly struck by what she and my right hon. Friend the Member for Saffron Walden (Sir Alan Haselhurst) said in lobbying to reverse the local legacy and to ensure that Essex is a great county in which to do business in the future, to quote her.

My hon. Friend has been a tireless campaigner on the need for future investment in this road, as has my right hon. Friend. I recognise her continuing determination to speak about the importance of this subject for her constituents, local businesses and the local economy. I am of course aware that she has asked a number of parliamentary questions about the improvements that she quite rightly believes are required to the A120 and to the A12. She secured an Adjournment debate last year on transport in Essex. As she will remember, I met her recently to discuss the proposals to improve the A120 and therefore I am pleased to be responding to this debate this afternoon.

The strategic road network is the Government’s largest single asset, currently valued at about £100 billion and comprising some 4,350 miles of motorway and trunk road. The Government recognise the importance of the transport infrastructure to supporting the economy, and local economies throughout the country, and therefore we have announced increased levels of Government funding to deliver improvements targeted at supporting economic growth.

My hon. Friends will remember the announcement in the 2010 spending review that we were investing an extra £1.4 billion in starting 14 major road schemes over the spending review period. My right hon. Friend the Chancellor of the Exchequer, as part of the 2011 autumn statement, identified several other schemes that would be brought forward for delivery. In the 2012 statement, the Chancellor announced additional capital investment in this Parliament that would enable four major schemes to be brought forward.

I therefore hope that my hon. Friends will recognise that the Government are keen to support the infrastructure of our country. Indeed, in the 2012 statement, there was the provision of a further £100 million of capital expenditure in this spending round to undertake further pinchpoint schemes. My hon. Friend the Member for Witham will be aware that that included a £0.28 million—£280,000—pinchpoint scheme to widen Galley’s Corner roundabout south-east of Braintree. It is obviously true, but I am sure that it disappointed her, that no other schemes that applied for pinchpoint funding on the A120—several did apply—could be delivered within the scope and the criteria of that fund. She and I have spoken about that.

My right hon. Friend the Member for Saffron Walden spoke a little about the history of the A120, as did my hon. Friend the Member for Witham. Obviously, sections of it are single-carriageway road, as she rightly said. The A120 east of the M11 is a trunk road and therefore part of the strategic road network. As she points out, it also forms part of the comprehensive trans-European road network.

My hon. Friends were right to point out that if one looks at the history of the road and the Department’s consultations, surveys and studies on proposed improvements to the A120, one sees that in 2001-02 a comprehensive study was undertaken to look at the problems facing the A12 corridor between London and Ipswich, which included the A120. The study recommended road improvements between Marks Tey and Braintree, and that dualling the A120 from the A12 to Harwich should be considered in the longer term.

As my hon. Friends said, the previous Administration’s review of regional priorities in the east of England provided advice that changed those priorities, and the regional assembly removed the proposals from their prioritised programme. In the previous Government’s response to the advice, they accepted the recommendations for prioritisation, and the Department for Transport instructed that the scheme should not proceed further. That is the history. It is worth setting out the context.

My hon. Friends will know that, given the previous decisions on the prioritisation of improvements, there was not a sufficiently developed business case for the proposal at the time of the Government’s 2010 comprehensive spending review. I have spoken about the schemes that the Chancellor prioritised. A developed business case was a key requirement in both 2010 and 2011. The Department therefore had no plans to develop future scheme improvements in this location. There have been subsequent developments, to which my hon. Friends referred.

In our January meeting, I explained that, in assessing schemes for the future, the Highways Agency is looking at a process that would involve local parties in considering future priorities on a more local level, rather than on a simply regional basis. For the record, it may be worth setting out exactly how we expect such route-based strategies to work.

In response to the recommendations in Alan Cook’s review of the Highways Agency, we agreed to develop and roll out a programme of route-based strategies to identify future transport investments for the strategic road network. The Highways Agency is developing three route-based strategies at initial locations, one of which is the A12 from its junction with the M25 to its junction with the A14 and the A120 between Colchester and Harwich.

The three initial strategies will be complete in March this year. We will take the lessons learned from the production to inform a wider programme of strategies to assess network prioritisation, starting in the next financial year, which as I explained is likely to include the remaining section of the A120 west of the A12. Route-based strategies will ensure that there is clear evidence to make informed decisions on what is necessary for the strategic network to support economic growth locally and keep the country moving.

As I said to my hon. Friend the Member for Witham when we met in January, a key element of the route-based strategy is the engagement and involvement of local groups, including, as we discussed, local enterprise partnerships. I very much welcome the work of the Haven Gateway group in bringing together the range of local interests. I also welcome its analysis of the potential transport benefits and, more importantly, the potential benefits for economic growth in the region, which will be useful in informing the route-based strategy for the rest of the A120. I have made it clear, and I hope she accepts my reassurances, that the Highways Agency will work closely with local groups, via the LEP and local authorities, when it undertakes the route-based strategy work for the rest of the A120.

As I have said in this and other debates, the Government recognise the importance of transport infrastructure to facilitating economic development and the role that it can play in bringing forward proposed new housing developments. In our January meeting, my hon. Friend highlighted the development proposals from Gateway 120 Ltd. My Department and the Highways Agency are more than happy to discuss with prospective developers the needs and costs of transport infrastructure improvements to the strategic road network in the area. As she will recognise, any development proposals will clearly need to fit in with the aspirations of the local plans, and, at the meeting, I took some reassurance from her that that was so. She also knows that I promised to facilitate a meeting between officials and Gateway 120 to that end. That meeting took place yesterday. I am happy to ensure that she gets a full debrief.

My hon. Friend is right that, potentially, there are new and innovative funding areas for the A120 for us to explore together, with my Department’s officials, and I will ensure that we do so. She will also be aware that the Department clearly needs to know more about the absolute details of the transport proposals that underline the Gateway 120 scheme before we can take a view on the future funding that could be committed. She and Gateway 120 have undertaken to ensure that such details are available.

My hon. Friend rightly mentioned safety. I understand the deep concern and recognise the continued campaign for improvements. I have been speaking to the Highways Agency. We recognise the concerns over safety. I have asked Highways Agency officials to investigate options to make the junction at Pellens Corner safer. It is shortly due to complete a road safety audit for that location, which will provide detailed evidence of incidents and accidents and allow a detailed analysis of the situation. That will allow us to bring forward options to address the problem. I am more than happy to meet my hon. Friends to discuss their concerns about safety and the options that we are likely to bring forward.

Again, I thank my hon. Friend the Member for Witham and my right hon. Friend the Member for Saffron Walden for their contributions. I congratulate them on their tenacity in campaigning for the transport infrastructure needed in their local area to make Essex a great county in which to do business. The Government recognise the importance of the A120 as a strategic road and the benefits that the Highways Agency and Gateway 120 working together could bring to their constituencies.

Driving Test Language Support

Stephen Hammond Excerpts

Tuesday 5th February 2013 Written Statements

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

The Driving Standards Agency (DSA) today launched a consultation on the language support available to candidates taking theory and practical driving tests. The consultation seeks views on whether foreign language voiceovers and interpreters should continue to be provided or whether the statutory driving tests should be conducted only in the national languages (English and, in Wales, English and Welsh).

The reasons for adopting these proposals would be to:

Improve road safety—there is concern about the ability of non-English or Welsh speakers to understand road signs and other advice to drivers.

Enhance social cohesion—to encourage integration in society by learning the national language.

Reduce fraud—to address the problem of an interpreter attending for test with a learner driver and communicating advice beyond a strict translation of the theory test questions or the instructions given by the examiner.

Reduce costs—there will be a small saving to DSA from not paying a fee to the theory test service provider for the annual update of voiceovers.

There are three options for change. These include the removal of all voiceovers and translation services in non-national languages, as well as the retention of some elements of support. Consideration is also given to the option of making no change.

The consultation will run from 5 February to 2 April. The consultation paper is available at the following web address:

www.gov.uk/government/consultations/driving-test-language-support.

Vehicle Registration Marks

Stephen Hammond Excerpts

Thursday 31st January 2013 Commons Chamber

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

I congratulate the hon. Member for Birmingham, Selly Oak (Steve McCabe) on securing this debate and look forward to responding to it. I also welcome my hon. Friend the Member for Rochester and Strood (Mark Reckless) to his place, and I will also comment on his remarks. I am aware that the hon. Member for Birmingham, Selly Oak is vice-president of the European secure vehicle alliance, which is dedicated to reducing vehicle-related crime, fraud and disorder. I am pleased to be able to respond on behalf of the Government on the matter, which is clearly an issue to his constituents, to the wider UK public and, of course, to the Government themselves. We are trying to respond on behalf of all motorists.

I listened carefully to the hon. Gentleman, particularly to his espousal of the Swedish system. I recognise the merits of that system, but I cannot share his view that the UK’s system is poorly conceived and regulated or that we allow a free-for-all. I will put on the record why I think that.

The register of number plate suppliers scheme was established in 2003 to regulate the supply of number plates in the UK. It has helped to reduce the opportunities for criminals to obtain plates to disguise the identity of stolen vehicles or to use them in criminal activity. As the hon. Gentleman has said, there are almost 40,000 suppliers on the register—38,894, to be absolutely precise. Although I acknowledge, as the hon. Gentleman has said, that other countries operate a different regime with regard to supply and format, including a single supplier system, the register scheme represents a system of regulation.

I accept that, prior to the scheme, it was possible to buy number plates in the UK for any vehicle from any supplier without valid checks or controls. That is why it was essential to put the scheme in place. It makes it more difficult for criminals and penalty evaders to abuse the number plate process, as it requires them to prove entitlement to the plate and to provide personal identification. It has closed off the opportunity for criminals to obtain number plates through legal channels and, contrary to some views, it has the support of the police.

All number plate suppliers now have to register by law. They pay a one-off fee to join the scheme, the object of which is to ensure that number plates are sold only to a purchaser who can provide entitlement to them and verification of personal details by producing the necessary documents, such as a vehicle registration certificate or a photocard driving licence. Number plate suppliers are then required to keep a record of sales and make it available for inspection by the police or local authorities. That is an important source of information for the investigation of vehicle theft and other crime related to motor vehicles.

It is an offence to create and supply number plates that do not comply with the relevant regulations and the British standard. In order to comply with the British standard, each plate must be permanently and legibly marked with the British standard number, the name, trademark or other means of identifying the number plate manufacturer or the component supplier, and the name and address of the supplying outlet.

DVLA enforcement officers, in conjunction with trading standards officers and the police, carry out a number of intelligence-led targeted enforcements against registered number plate suppliers and unregistered suppliers such as market traders. Again, that gives a slightly different impression from that given by the hon. Member for Birmingham, Selly Oak; it goes against his argument. He made a number of valid points, but it would have been helpful if he had acknowledged at the outset that the registration scheme and the action that the DVLA takes were important in maintaining the integrity of the British number plate system.

[Steve McCabe]

I recognise that there has been a modest attempt at regulation, but I am trying to persuade the Minister to go further. Can he give me the figures for successful prosecutions resulting from the activities of the DVLA enforcement officers in the past few years?

[Stephen Hammond]

I shall try to answer that question later in my speech. If I cannot do so, I will of course write to the hon. Gentleman with the information.

The hon. Gentleman was right to highlight the concerns expressed a few years ago when a single manufacturer, Hills, developed a system of printing that had the unforeseen side-effect of making the number plate text unreadable by automatic number plate recognition—ANPR—technology. He was also right to point out that concerns still exist. Hills was the only manufacturer using that system, and the manufacture of those plates has now been stopped, but there is still an unknown number of those so-called transparent plates in circulation. The Department for Transport estimates that, in the worst-case scenario, up to 5% of all cars could be unreadable. However, we have reasonable evidence that the actual numbers are somewhat smaller. None the less, that development needed to be stopped immediately, and it has been. Most of the transparent plates were fitted to fleet vehicles, which are eventually sold into individual ownership, at which point the plates are routinely swapped for regular, opaque ones. That is one reason that the number might be lower. There were no concrete rules to stop companies employing that process, but that has now been remedied.

[Mark Reckless]

The manufacturer in question, Hills, was owned by 3M. Is the Minister concerned that there could be a conflict of interest, in that that company, which is well served by the existing registration market, has an executive chairing the relevant British standard that enables the continuation of that market?

[Stephen Hammond]

My hon. Friend leads me neatly into the next section of my speech, in which I shall address the issue of the British Standards Institution review. My predecessor committed to looking into that, and the hon. Member for Birmingham, Selly Oak has asked me for an update. I am pleased to be able to tell him that we are seeking to change BSI standard BS AU 145(d), which covers the reflective quality of number plates. Recent advances to ANPR technology mean that the cameras are finding it more difficult to read older number plates. The hon. Gentleman will know, not least because we debated the HGV Road User Levy Bill in the House on Tuesday, that ANPR is now used increasingly for many aspects of managing the road network, including the enforcement of congestion charging and the HGV levy, as well as for detecting and preventing crime.

A committee was set up to improve standards and it was given an 18-month programme of review supported by my Department and by the Home Office. It is rightly using wider industry expertise. I hear clearly the point made by the hon. Member for Birmingham, Selly Oak and by my hon. Friend but, had we not used that expertise, one of their colleagues might have challenged me by asking why we had kept the review to civil servants. Once the committee has made its recommendations—they will be published and consulted on in late spring—I hope both hon. Members will respond to them, and point out any outstanding issues. The committee has done some rigorous work, however, and I hope its findings will offer some reassurance. I think that they will help to maintain confidence in the number plate regime, tackle vehicle excise duty evasion and improve safety.

It was suggested that the introduction of a more secure number plate system would support the sale of cherished plates. To meet the widespread interest in attractive personalised and cherished registration marks the DVLA has since 1989 been operating a sale of marks scheme, a special facility allowing motorists to acquire and retain the use of particular registration marks that have not been previously issued. More than 3.8 million registrations have been sold, which has generated over £1.8 billion in revenue. The revenue raised this financial year currently stands at just over £49.5 million, with a total of 166,00 registration marks being sold through the DVLA. The scheme is clearly popular with the motoring public, therefore.

It is recognised that there remains an issue in that some keepers of vehicles will attempt to flout the law by displaying registration marks in an incorrect format. All such formats will have been supplied by an illegal supplier, however, so they would already be on the register. Those suppliers would therefore be acting illegally already.

[Steve McCabe]

Why is the DVLA allowed to option plates that any normal, rational person would realise are being purchased only because the buyer intends to have them tampered with and altered illegally? They would have no value otherwise.

[Stephen Hammond]

Not all cherished plates fit into that category; indeed, the vast majority of them do not. Some cherished plates might even have our initials on them—I can envisage “NE 1” being one of the great number plates of our time, Mr Deputy Speaker.

The DVLA and the police take the matter of misrepresented registration marks very seriously. The misrepresentation of registration marks can make vehicles difficult to identify and hamper police efforts. Those who have misrepresented their registration plate have already committed an illegal offence. It is a criminal offence to alter, re-arrange or misrepresent the characters of a vehicle registration mark in a way that makes it difficult to distinguish the registration number. Offenders are liable to a maximum fine of £1,000.

I am surprised and baffled by the comments of my hon. Friend the Member for Rochester and Strood, because neither I nor my officials recognise the remarks he attributes to us. If he tells me the source of those remarks, I will certainly look into the matter, but while I am prepared to accept that the Department may have made those remarks, we do not at present recognise that.

[Mark Reckless]

My remarks were a statement of the position of the Department for Transport as characterised by the West Midlands police.

[Stephen Hammond]

That may have been characterised in all sorts of different ways, of course, but I am happy to discuss the matter with my hon. Friend later.

Over the last century, the number plate has incorporated several security features to reduce the misrepresentation, cloning and fraud that some drivers engage in. My predecessor in the Department instituted the British Standards Institution review. We have some challenging issues to face, but I am aware that the integrity of the number plate regime system is absolutely crucial to road safety, as well as to tackling road crime.

In conclusion, I cannot promise that we will move to a single supplier system, but we will—

HGV Road User Levy Bill (Programme) (No. 2)

Stephen Hammond Excerpts

Tuesday 29th January 2013 Commons Chamber

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

I beg to move,

That the Order of 20 November 2012 (HGV Road User Levy Bill (Programme)) be varied as follows:

1. Paragraphs 4 and 5 of the Order shall be omitted.

2. Proceedings on Consideration and proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion three hours after the commencement of proceedings on the Motion for this Order.

I wish to put on record the helpful, constructive and conciliatory approach of the Opposition to the programme motion.

Question put and agreed to.

HGV Road User Levy Bill

Stephen Hammond Excerpts

Tuesday 29th January 2013 Commons Chamber

Technically, the amendment may not address precisely the issue that the BVRLA wishes to address. However, it has continued to raise the issue of the £2.7 million deficit, and we are keen to hear what the Minister has to say on the matter.

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

I thank the hon. Member for Poplar and Limehouse (Jim Fitzpatrick) for tabling his amendment. I hope that I will be able to persuade him that it does not deal with the concerns raised by the BVRLA, which I should like also to address. I want to try to prove to him that his amendment would potentially, if we were not careful, give a free £200 to an awful lot of people. I hope he will agree with me on that. We discussed the point about clause 7 in Committee when the hon. Member for Linlithgow and East Falkirk (Michael Connarty) raised the issue of 10 monthly and 12 monthly payments.

Removing clause 7(3) would remove the annual rebating formula and mean that all the rebates would be made under subsection (4), which applies to all periods of time over one month and less than one year. Under the European directive, the charges and rebating formula must be the same for both UK and foreign-registered vehicles.

In selecting the charges for different time periods, we have chosen to offer the annual levy at a discount compared with the purchase of 12 monthly levy payments. That is also compatible with the Eurovignette directive, which states that the annual charge may be no less than 10 times the monthly charge.

The hon. Gentleman’s amendment would not have its intended effect, which I believe is to ensure that UK hauliers would be able to claim the rebates in twelfths rather than tenths, as proposed by the Bill. As he has rightly pointed out, I am aware of what the BVRLA has put together. It has been lobbying for a change to the calculation because at the moment it estimates that a UK operator could incur a small loss when it delicenses a vehicle—typically when it is sold—compared with the existing rebating regime for vehicle excise duty, which rebates in twelfths. The BVRLA has identified that a small extra cost to operators could be introduced by the way in which the levy is rebated compared with how VED is rebated.

Currently, when a vehicle is delicensed—typically when it is sold—the previous owner can claim back the outstanding whole months of VED, with the rebate calculation done in twelfths. From the introduction of the levy in 2014, UK operators will only be able to reclaim VED on the same basis that the levy can be reclaimed, namely in tenths. Setting the annual rate at 10 times the monthly rate complies with EU law and will maximise the revenue from the monthly charges. That means, in effect, that it is discounted when compared with the cost of the 12 monthly levy charges.

The decision to offer rebates in tenths was made, as I explained in Committee and as the hon. Gentleman has mentioned, to prevent foreign hauliers from paying for a year, using a vehicle for a month and then reclaiming 11 months. The hon. Gentleman’s amendment would have the effect—although this is not its intent—of removing that.

[Jim Fitzpatrick]

I accept the explanation about tenths and twelfths and that we do not want to give an advantage to foreign hauliers, but the question that was raised in Committee by my hon. Friend the Member for Linlithgow and East Falkirk (Michael Connarty) has still clearly not been answered to the satisfaction of the BVRLA. When someone surrenders VED—a tax disc—they can claim back, but if a vehicle is off the road while it is in the process of being sold, which could take two or three months, and is accruing the levy charge, can that be claimed back? If it can, I think that will answer the problem.

[Stephen Hammond]

I hope that I am about to address exactly that point. I welcome the hon. Member for Linlithgow and East Falkirk to his place, because he raised the point about the levy rebate, which I hope my opening remarks have addressed.

The BVLRA estimates that rebating the charge in tenths rather than twelfths might cost its members, as the hon. Member for Poplar and Limehouse has said, up to £2.7 million a year. That estimate is on the high side, to say the least, because the BVRLA assumes that half the refunds would be for vehicles in the most expensive levy band, whereas, in fact, only 4% of the UK fleet is in that band. Most UK vehicles—83%—are in bands costing between 36% and 65% less. I would therefore question whether the cost is as high as estimated.

The BVRLA also assumes that all refunds are claimed in the 10th month of the VED cycle for each vehicle, which is a worst-case scenario. In fact, there is a peak in vehicle disposals at around month three or four of the cycle, reflecting the fact that vehicles are often purchased in September and sold in January, to deal with Christmas business. The loss for any vehicle at this point is some 60% or 70% less than the worst-case figure.

We estimate that most vehicles will lose in the region of between £30 and £50 when delicensed. That is not a regular event, but it would happen, for example, when a vehicle is sold. The loss therefore needs to be set in the context of the vehicle’s whole lifetime, which can be about 10 years. For example, a typical vehicle that lasts 10 years and is sold twice during that period at a typical stage in the VED-levy cycle would incur between £60 and £100 in rebate costs over its life, because the loss is incurred only when the vehicle is sold or delicensed for other reasons. That cost equates to about £6 a year. Operators can avoid that cost by selling the vehicle taxed or by disposing of it only at the end of the VED-levy cycle so that there is no amount to reclaim.

As the hon. Member for Poplar and Limehouse said, the BVRLA gave oral evidence to the Committee and raised this point, but it did not give it the prominence that it has been given subsequently. I am pleased that we have been able to discuss it today because it did not feature in our discussion about levy rebates. I am pleased that I have been able to clear the point up. The BVRLA could have submitted written evidence on this point to the Committee, but it did not. It is helpful that it has been raised by way of amendment this afternoon.

[Michael Connarty (Linlithgow and East Falkirk) (Lab)]

The point I raised on instinct, on looking at the Bill, was that this was not a level playing field between those who come into the UK and pay the levy, and those who are in the UK and pay duty and now the levy. Although the Minister has said that the loss will be 70% less than the worst-case scenario and only about £6, it is still not a level playing field. There will be a loss for the leasing companies in the UK. The companies say that the loss will be £2.7 million a year. If it is 70% of £2.7 million a year, it is still a large hit for British business.

[Stephen Hammond]

As I have said, the figure of £2.7 million is predicated on half the vehicles in the fleet being in the largest band, whereas only 4% are in that band. There will be a very small loss, if there is a loss at all. The £2.7 million figure is clearly an overestimate.

I seek to persuade the hon. Member for Poplar and Limehouse that under the amendment, all rebating would be done under clause 7(4), which is designed for shorter periods of time than one year. Rebating the annual levy under that subsection would not resolve the tenths versus twelfths issue, but it would allow some foreign operators to drive on the UK’s roads for free for up to two months when they purchase an annual levy. That is because, as we discussed in Committee, they would be able to claim a rebate for whole outstanding months at the monthly levy rate, rather than at the discounted rate.

As well as the potential for free use of the roads, a further consequence of using clause 7(4) as the rebating mechanism would be to allow anyone to make a claim for more than they had paid, without ever driving on the UK’s roads. For example, if an operator purchased a levy starting at a future point in time, say 1 February, and immediately asked for a rebate, they would be able to claim 12 times the monthly rate because the levy period would not have started. That would contrast with the actual cost of the 12-month levy, which is discounted to 10 times the monthly rate.

The consequential amendments would mean that clause 7(4) could also be used for annual rebating and would remove the references to clause 7(3) in clause 7(8), which deals with the level of the rebate. Given the unintended consequences of providing updates only through clause 7(4), and given the relatively small value of the typical loss, which is incurred only if the vehicle is delicensed or sold, we do not propose to change the rebating formula from tenths to twelfths.

I will keep the situation under review. I hope that with those reassurances, the hon. Member for Poplar and Limehouse will withdraw the amendment.

[Jim Fitzpatrick]

We are very grateful to the Minister for his response. My hon. Friend the Member for Linlithgow and East Falkirk (Michael Connarty) raised this matter strongly in Committee. We supported the inquiry by the BVRLA because this seemed to be an issue that was slipping through the cracks. The Minister reassured us in Committee. He has said solidly that he will keep the matter under review. We do not want to see this develop into a disadvantage for British road haulage.

Given the assurances that the Minister has reaffirmed today, I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Third Reading

[Stephen Hammond]

I beg to move, That the Bill be now read the Third time.

As the House knows, this Bill introduces a new levy for all heavy goods vehicles that weigh 12 tonnes or more and that are kept on, or use, the UK road network. The levy is aimed at recognising the damage that HGVs do to our roads, so that a contribution is made for that.

The Bill has, I am pleased to say, enjoyed cross-party support as it has proceeded through the Ways and Means motion, Second Reading, Committee and now—I hope—Third Reading. With some exceptions and questions it has been broadly welcomed by industry, with agreement on the fundamental point that vehicles that use and cause wear to our roads should make a payment to take account of that. The HGV road user levy will, for the first time, require foreign-registered HGVs to make a contribution to the costs of maintaining the road network that they use.

Subject to the Bill being passed in the House today, although the financial burden of road maintenance will be largely borne by UK taxpayers, from April 2014 it will no longer fall solely to them. Our intention is for the levy to apply to all categories of public road in the UK, and to UK and foreign-registered HGVs equally. The Government plan to implement the levy from April 2014 for UK and foreign-registered hauliers, and I am working to ensure that the process to procure and develop the necessary vehicle payment systems is completed. That is being done to a short time scale, but as I stated in Committee, I am confident it can be achieved.

As stated in previous discussions, UK hauliers will pay the levy in a single transaction with vehicle excise duty—VED—when it is renewed from April 2014. Foreign hauliers do not currently contribute to road maintenance through a vignette or other form of payment, even though such charges are common in other countries and our hauliers pay them when they use roads overseas. Foreign-registered hauliers who have long enjoyed an advantage over our own haulage industry will now have that advantage removed. All main parties have wanted to introduce a measure to correct that imbalance for many years, and I am delighted that this Bill, which will go a long way towards addressing it, is receiving its Third Reading.

HGVs play a crucial role in our economy by supplying businesses and servicing consumers. More than two thirds of goods moved within the UK travel by road on an HGV. It is estimated that foreign hauliers make around 1.5 million trips in the UK annually, and the levy will ensure that they pay a fair amount when they use UK roads, and increase opportunities for UK hauliers in international trade.

As colleagues in the House may be aware, any form of road user charge is subject to strict conditions set out in the Eurovignette directive, in which the maximum daily charge is specified as €11, which is likely to rise to €12 by 2014 to compensate for inflation. By that stage it will equate to about £10 per day, which is what we intend to charge to the largest foreign vehicles that use roads in the UK. I recognise that many trips by foreign hauliers last longer than one day, so they will also be able to pay the levy for different periods—daily, weekly, monthly or annually, for up to one year. For the largest vehicles, the annual charge will be £1,000, and proportionately less for the smallest vehicles. Overall, most vehicles that come to the UK are in the heaviest two bands.

The Government have estimated that the revenue gained by charging foreign hauliers will probably be between £18.7 million and £23.2 million annually. I appreciate—this was discussed in Committee at some length—that that may not be an enormous sum in the grand scheme of things, and I am sure some of my colleagues would like it to be higher, but the levy is set at the highest level allowed by the Eurovignette directive. Other measures—principally the reduction in VED—mean that nine out of 10 UK vehicles will pay no more than they do now. That will ensure a fairer deal for UK-registered HGV operators, who should not, and will not, have to bear an additional financial burden as a result of the levy. As we have announced previously, details of vehicle excise duty will given by my right hon. Friend the Chancellor in due course.

With those brief comments, I hope that the House supports the Third Reading of the Bill.

--- Later in debate ---

[Stephen Hammond]

With the leave of the House, I would like to make a few concluding remarks and to respond to some of the points made in the debate.

My hon. Friend the Member for Tiverton and Honiton (Neil Parish) made the case, as did several other Members, about the size of the fee charged. As I have explained earlier on Third Reading, on the Ways and Means motion and on Second Reading, we are limited to what level of fee we can charge. I am sure that we will, as with other aspects of the Bill, keep it under review. My hon. Friend went down the line of suggesting that sat-navs be used for HGVs, but I am going to leave that issue for another day.

I welcome the support of hon. Members across the House, and I particularly welcome the support of the Chairman of the Select Committee and the points she made about road safety. The hon. Member for Poplar and Limehouse (Jim Fitzpatrick) mentioned those reports, too, and I think road safety is one issue that has cross-party support, with all of us determined to continue the UK’s good record on road safety and never to be complacent about it. We all want to see it continually improving.

I remember that I was glad in Committee to satisfy some of the concerns of the hon. Member for Argyll and Bute (Mr Reid) about some parts of his community. I also noted his plea for a higher charge.

I was not entirely surprised to hear the hon. Member for Linlithgow and East Falkirk (Michael Connarty) refer to the Tory Chancellor’s back pocket, as he had used the same phrase several times in Committee. Although he expressed sympathy for Kent, he will be unsurprised to learn that I have little. If it were to exchange its proportion of these sums for a hypothecated amount, it would be considerably less than the Chancellor made available for local road maintenance in the autumn statement, and continues to make available.

However, the hon. Gentleman was right in saying that I had promised to bear in mind the views of the BVRLA. I understand the concern that the organisation has expressed about size, but the analysis shows that the number of vehicles likely to be affected is relatively small. Even when the “urban artics” mentioned by the hon. Member for Strangford (Jim Shannon) are taken into account, it is clear that 98% of the fleet in the United Kingdom will be less than £50 worse off. In fact, very few people will be worse off as a result of the Bill.

I am glad that my hon. Friend the Member for High Peak (Andrew Bingham) enjoyed the experience of serving on the Committee. I think that it was an enjoyable experience, although I am not sure that all Bill Committees are quite as enjoyable or, indeed, give Bills such a speedy passage. I am glad that my hon. Friend did not press the point that he raised on Second Reading about the Mottram-Tintwistle bypass. I know that the Highways Agency owes him a letter, and I have chased that up today. He will receive letters from both the agency and me, but no promise that the bypass will necessarily arrive.

My hon. Friend the Member for Amber Valley (Nigel Mills) may not have been able to ask the oral question that he had tabled, but he certainly made his points eloquently this afternoon, and I thank him for his contribution.

The hon. Member for Strangford raised a couple of issues that we also considered in Committee. Our discussions about criss-crossing of the border continue, but I am convinced that we shall reach a satisfactory conclusion with the Government of southern Ireland. As for the small “urban artics”, the hon. Gentleman must bear in mind that although some are in lighter weight categories, they often have fewer axles and are therefore disproportionately damaging to the network.

Vehicles with reduced pollution certificates pay lower rates of VED. Because some are paying the minimum levels set by the Commission, we cannot reduce the levels further. Our solution is to change the nature of the benefit provided for vehicles holding RPCs. In future, such vehicles will receive a grant to the current value of the VED discount. I hope that that addresses the concerns expressed by the Freight Transport Association.

I thank all Members who have taken part in our informed, constructive debates, not just this afternoon but throughout the Bill’s earlier stages. I also reiterate my thanks to the Chairmen of the Committee and the Clerks who supported it. I particularly thank the hon. Member for Poplar and Limehouse for acknowledging that the Bill deserved all-party support. His scrutiny was constructive and sensible, and I was delighted to have his support for the Bill. I wish it a speedy passage.

Question put and agreed to.

Bill read the Third time and passed.

Parliamentary Oral Question (Correction)

Stephen Hammond Excerpts

Tuesday 22nd January 2013 Written Statements

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

I regret to inform the House that there was an inaccuracy in the answer I gave to a supplementary question pursuant to an oral parliamentary question [UIN 137500] on 17 January 2013, Official Report, column 1012, about schemes announced in the autumn statement 2011 which are now under construction.

The correct answer is that work is under way on over 90% of the projects and that construction has already begun on 13 of them.

There was also an inaccuracy in the answer I gave to a supplementary question pursuant to oral parliamentary question [UIN 137497] on 17 January 2013, Official Report, column 1009. I would like to clarify that £600 million, not £650 million, has been invested in the local sustainable transport fund programme.

It is worth pointing out that, in addition to this figure, we have announced a further £107 million of investment specifically for cycling schemes, of which £42 million was announced at last year’s autumn statement.

Local Speed Limits

Stephen Hammond Excerpts

Friday 18th January 2013 Written Statements

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

The Department has today published a revised speed limit circular, “Setting Local Speed Limits” (DFT Circular 01/2013). This follows a consultation held last summer, the report of which is also published today. The Department is also today publishing a speed limit appraisal tool, which will be hosted on the DFT’s website. These follow up key commitments from the Government’s “Strategic Framework for Road Safety” published in May 2011.

Setting the right local speed limits is vital for road safety, local growth and local health outcomes. Speed limits need to be suitable for local conditions and local authorities are best placed to develop solutions that suit their communities, working in conjunction with law enforcement agencies and taking on board the views of the community they serve.

The updated circular gives guidance to local councils which will help them implement more consistent speed limits on local roads. It incorporates recent changes that create more flexibility for authorities to implement 20 mph limits and zones. It also sets out the process for applications for further rural 40 mph zones. To date no applications have been made for new areas.

The speed limit appraisal tool will help councils assess the full costs and benefits of any proposed local speed limit schemes, and help them to make evidence-based decisions to introduce local speed limits that reflect the needs of all road users. As well as casualties and other traffic effects, we have made particular efforts to build into the tool effects that cannot be monetised, such as those that enhance quality of life.

The revised circular replaces Circular 01/2006, also called “Setting Local Speed Limits”, which is now withdrawn.

I am placing a copy of the circular and the consultation report in the Library of the House.