Motor Vehicles (Compulsory Insurance) Bill

Debate between Stephen Timms and Peter Bone

Committee stage
Wednesday 5th January 2022 Public Bill Committees

[Mr Bone]

My right hon. Friend is absolutely right about increased costs, and I will deal with that point later in my remarks. He is also correct about the threat to motor sports.

The Bill would end the Vnuk decision’s application in retained EU law and related retained case law. I believe that I am correct in saying that, if passed, the Bill will be the first Act of Parliament to remove EU retained law; it will be a landmark first step in taking back control of our own laws. It is just one of the clear advantages of leaving European Union that we may now alter our laws to ensure that they are interpreted in the way that this sovereign Parliament intends.

[Stephen Timms (East Ham) (Lab)]

As I understand it, the EU has now changed its law. Because we are outside the EU, could we not stick with the retained law? I just want to make that point, because I do not agree with the hon. Gentleman about the damage of being in the EU.

[Mr Bone]

I was going to deal with that, but I will answer the specifics. The right hon. Gentleman is quite right that the EU is changing the directive so that it applies differently in the EU, but it is not changing it in the same way as we propose to do. I will deal with the issue later.

The Bill does not seek to invent new policy, nor would it limit the Government or Parliament in changing insurance regulations for motor vehicles in future. The Bill would simply restore the interpretation of the law that was intended by Parliament and was believed to be correct by the Government, lawyers, the motor insurance industry and motorists prior to the Vnuk judgment.

It should be noted that the Vnuk judgment has led the European Union to seek to revise the European directive, although it is unlikely to do so in the same way as we propose in the Bill. I argue that, instead of waiting for the European Union bureaucracy to change its ruling, we can do so now, here, in this Parliament. The Bill is therefore an important step in realising the benefits of our decision to leave the European Union.

The Bill would end any associated liability for insurance claims against the Motor Insurers’ Bureau for the cost of accidents on private land where motor insurance is not held. As things stand, the cost of such claims would have to be accounted for within the Motor Insurers’ Bureau charging levy, thus passing on the cost to the motor insurers, who in turn would pass it on to the consumers through insurance premiums—the very point made by my right hon. Friend the Member for East Yorkshire.

European Union (Referendum) Bill

Debate between Stephen Timms and Peter Bone

Friday 17th October 2014 Commons Chamber

[Stephen Timms]

I say again to the hon. Lady that the question of whether we remain members of the EU is a central one in determining whether we should have a referendum. That was the view set out by the current Prime Minister—the leader of her party—when speaking in Hammersmith on 5 January 2010, while he was campaigning for election and she was supporting him. He said:

“Do I want an in/out referendum? No, I don’t, because I don’t think we should leave.”

That was his view then and I think he is right to link, as he did so explicitly in those remarks, the question of whether or not there should be a referendum with that of whether we should remain a member of the EU. I am saying that instead of two years of political paralysis with the kind of navel-gazing debate envisaged and supported by Government Members, we should be focusing on addressing the economic challenges that face the UK, tackling the cost of living crisis that millions of people across the country are suffering. They have seen their wages fall in real terms since 2010. That should be the focus for the Government elected next May.

[Mr Bone]

The right hon. Gentleman normally makes sensible comments in this Chamber, although I do not agree with the point he is making. Putting party politics to one side, does he not agree that what business wants is certainty and that until a referendum is held there will be a debate about whether we stay in or come out of the EU? Is it not better for business to have that referendum and so have that matter finally decided?

[Stephen Timms]

The hon. Gentleman is absolutely right that what business needs is certainty, a point that was made by the Foreign Secretary just a few minutes ago. If we were to embark on a referendum campaign, however, that would unleash two years of total uncertainty. Investment projects would not go forward and economic improvements would not take place. The hon. Gentleman is absolutely right to highlight the dangers of uncertainty, as his right hon. Friend the Foreign Secretary did, but this Bill will create more uncertainty than any other measure currently being proposed.

[Mr Bone]

The right hon. Gentleman makes the fair point that the further away we are from the referendum, the more uncertainty there is. Of course, there has been a lot of misunderstanding in the Chamber today. The Bill says that there will be a referendum by the end of 2017; it does not say that it will not be earlier.

[Stephen Timms]

The hon. Gentleman makes an interesting point. I think that he would probably agree with the views of Sir Martin Sorrell, a supporter, as I understand it, of his party, who said:

“Having a referendum creates more uncertainty and we don’t need that…You added another reason why people will postpone investment decisions.”

Surely what we should be doing in this House is encouraging investment decisions and encouraging people to bring them forward rather than putting them back. I absolutely agree with the hon. Gentleman that there is an enormous danger in creating unnecessary and unwanted uncertainty, which would lead to serious economic risk for the UK.