Vehicle Technology and Aviation Bill (Fourth sitting)

Steve Baker Excerpts

Thursday 16th March 2017 Public Bill Committees

[Andy McDonald]

The Minister is very persuasive. He has made things very clear. Although I feel some disappointment that we are not dealing with the matter now, his unequivocal commitment to bringing forward regulations at some later stage terminates the discussion as far as I am concerned. I am grateful for what the Minister has told us, and I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 3 ordered to stand part of the Bill.

Clause 4

Accident resulting from unauthorised alterations or failure to update software

[Mr Steve Baker (Wycombe) (Con)]

I beg to move amendment 1, in clause 4, page 3, line 12, leave out “operating system” and insert “software”.

This amendment replaces “operating system” which is too narrow a term. A vehicle may have firmware which is software in non-volatile memory, an operating system which is software in volatile memory, and application software.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 2, in clause 4, page 3, line 15, leave out “’s operating system”.

See explanatory statement for amendment 1.

Amendment 3, in clause 4, page 3, line 20, leave out “operating system” and insert “software”.

See explanatory statement for amendment 1.

Amendment 4, in clause 4, page 3, line 23, after “install software updates” add “to the vehicle”.

Amendment 5, in clause 4, page 3, line 29, leave out “operating system” and insert “software”.

See explanatory statement for amendment 1.

Amendment 6, in clause 4, page 3, line 32, leave out “’s operating system”.

See explanatory statement for amendment 1.

Amendment 7, in clause 4, page 3, line 39, leave out “operating system” and insert “software”.

See explanatory statement for amendment 1.

Amendment 8, in clause 7, page 5, line 31, at end insert

““software” in relation to an insured vehicle, means those components of the vehicle’s computer system that are intangible rather than physical, however stored.”

This amendment would add a definition of software.

[Mr Baker]

At last it seems that it was worth studying for that MSc in computer science, not because we shall discuss formal specification using Object-Z, or the state of communicating sequential processes, and not even because of implementation languages, emulation and testing, but because I think it would be appropriate to replace the term “operating system” in clause 4 with the single word “software”. All the amendments in the group are intended to do that.

I should like briefly to elaborate on what I said on Second Reading, to explain why these amendments are necessary to achieve the purpose of the Bill. In the explanatory notes, clause 4 is described very simply:

“This clause ensures that insurers should not have to bear liability to the insured person in some situations where the vehicle’s software or operating system are altered, or not updated.”

That is the purpose of the clause, but subsection (1) refers to

“alterations to the vehicle’s operating system made by the insured person, or with the insured person’s knowledge, that are prohibited under the policy…a failure to install software updates to the vehicle’s operating system”.

I should like to make briefly and, I hope, engagingly the case that that is drafted too narrowly and that, to achieve the purpose of the Bill if it were tested in court, we need to simplify it and use the term “software”.

The “Oxford Dictionary of Computing” defines “operating system” as:

“The set of software products that jointly controls the system resources and the processes using these resources on a computer system.”

That refers to the software that controls the hardware and makes it available to other programs. Opposition Members have gamely tabled amendment 20, which would delete “vehicle’s operating system” and insert

“application software related to the vehicle’s automated function”.

There is great merit in what they are trying to do. Again, the dictionary defines “an applications program” as:

“Any program that is specific to the particular role that a given computer performs within a given organization”—

it is talking about business, rather than cars—

“and makes a direct contribution to performing that role.”

Just as I said on Second Reading, it would technically be the application software that did the automated driving in such cars. I therefore fear that if the Government and the Committee were to keep the definition used throughout clause 4 and specify the term “operating systems”, we could find that an unintended conclusion was reached if it was necessary to test the law in court after an accident.

The solution is simple. The “Oxford Dictionary of Computing” defines software as:

“A generic term for those components of a computer system that are intangible rather than physical.”

I propose in amendment 8 that

“‘software’ in relation to an insured vehicle…means those components of the vehicle’s computer system that are intangible rather than physical, however stored.”

[Richard Fuller (Bedford) (Con)]

I am grateful to my hon. Friend for his dissertation on software systems, but can he advise me? We want to avoid the problem that we were talking about earlier in trying to define what might happen in the future. New software systems might be created that were unknown at the beginning and software—malware, for example—that was never conceived of when the operating system was developed might be added and somehow find its way into the computer systems of an automated vehicle. Under my hon. Friend’s amendment, how would those adaptations, legal or otherwise, or those new types of software be handled?

[Mr Baker]

I am grateful to my hon. Friend for extending my remarks with his question. The reason why I have included “however stored” is to distinguish software stored in volatile memory from software stored in non-volatile memory, such as a USB key, and to include the firmware used to start up the low-level devices. The term “software” as I have defined it from the “Oxford Dictionary of Computing” is all-encompassing; it includes everything in the computer system that is intangible rather than physical. To answer his question directly, that definition encompasses all the software in the system however it might arise, so it is the maximal definition.

If we go back to making the legislative definition work, what I propose in amendment 1 is to leave out “operating system” and insert “software”. Amendment 2 would delete “’s operating system”, because that phrase is otiose, as a colleague said earlier. Clause 4 would simply read “a failure to install software updates to the vehicle”. I am trying to make this maximal to ensure that the Bill is absolutely clear that all the software in the system must be untampered with and up to date.

[Christian Matheson (City of Chester) (Lab)]

This is simply a question of clarification. Would the clause as the hon. Gentleman sees it include, for example, not just the vehicle but the software on the electronic key that will be used to engage the vehicle?

[Mr Baker]

That is a very good point, and I think that the Bill already deals with it. I shall try to find the right part of the Bill—it does not leap out at me instantly—but I think that it states that updates are as specified by the manufacturer. Perhaps a colleague might find that and intervene. The point is that all the software that should be up to date must be up to date, and it should be as specified by the manufacturer. As I said on Second Reading, I do not think that the House should tightly constrain what is necessary. Unless anyone wishes to correct me, there is only one software engineer on the Committee, and I am certainly seven years out of date. As legislators, we should seek not to constrain but simply to ensure that the legislation is drawn up so as to encompass the entire software system and ensure that the legislation meets its intended purpose.

I hope that the Government will accept amendments 1 to 8, if not today then on Report and having consulted the industry. I am very much aware that we did not take expert evidence on this issue, so I would understand if the Government wished to consult outside the Committee and return to the issue on Report. I should say that owing to a lamentable lack of attention to detail on my part, it would be necessary to table a duplicate of my amendment 4 to amend line 41 of clause 4, as my proposed manuscript amendment would have done. I draw that to the Government’s attention. If they want any assistance in preparing amendments for Report, I would be glad to help.

[The Chair]

I think that my co-Chair ruled this morning that we would not accept a manuscript amendment. That decision still stands.

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[Andy McDonald]

Although we are in the same territory, I will defer my comments, Ms Ryan.

[Mr Baker]

Given that the Minister wishes to consider the issues and return to them, I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

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[Andy McDonald]

As we have a software engineer in the room, I bow to his superior knowledge, but I think he has already acknowledged that ours is a bold and perhaps even decent attempt to narrow the definition to the very function—not bad for an old personal injury solicitor. I recognise that we are all trying to be specific about the what the software is intended to do, so I will not detain the Committee long on amendment 20 but rather move on to amendment 21, which is in the same territory but not on the same point. It would add a proviso to exclusions and limitations on an insurance policy, because, as drawn, the policy would simply be void in the event of failure to install the software.

We discussed this subject during our evidence sessions, and I think we were all quite fascinated by how software would ultimately be installed, but we think it proper to oblige the manufacturer to attempt to notify the vehicle’s owner, provide the update and arrange for its installation. If an automated vehicle is to be able to drive itself, it is critical to safety that the software responsible for the driving operation be up to date. No one doubts that.

I do not know whether everyone can say with certainty that their mobile phone or home desktop computer has the latest version of the software installed. If a smartphone or computer is out of date, that is pretty poor, but significant consequences are unlikely; if an automated vehicle’s software is not up to date, the consequences could be catastrophic.

[Mr Baker]

This is a sensible amendment, but I think it suffers from defining in terms of operating systems rather than software. Perhaps the Minister will explain whether the definition needs to be in the Bill, or whether updates could be required under the policy and it should be for insurers to determine how software updates should be installed.

[Andy McDonald]

I am grateful to the hon. Gentleman for pointing out the necessary correction. My concern is that there is nothing in the Bill that requires software to be updated. I find that somewhat difficult to understand. These vehicles will be available for use and there will be several iterations of the software updates, so I am staggered that there is nothing to require that to happen. It is almost an assumption—the nature of the beast is such that of course it will be part of the debate—but there is no obligation.

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[Mr Baker]

I rise to make two points, one at slightly more length than the other. The first is that the amendment mentions application software. At the risk of labouring this point, there is a stack of software in the car: firmware at the low level, the operating system, which makes the low-level devices usable, and application software on top. We have reached the point where we are all agreed that all the software needs to be up to date.

The second point is one that my hon. Friend the Member for North West Hampshire just made: not all the software is safety-critical. That is an important point, so I will take a moment to consider it. Safety-critical software will almost certainly have been derived from formal specifications, proved safe as it is manufactured and then tested comprehensively before it is deployed. I would hope and expect that any responsible engineer, before putting an automated car out on the road, would have a very high level of confidence that the software was in fact safe to use.

The issue then is that there are often bugs in software, so it is not inconceivable that a safety-critical update might be required, but I would like to think that it would be an edge case. If we were to prevent all cars with an automated function from being on the roads because some software update was required, we might end up defeating our purpose. On one hand, I think it reasonable that all safety-critical software must be up to date; on the other, I think that the amendment probably would not achieve the purpose intended.

[Andy McDonald]

The hon. Gentleman is focusing, quite correctly, on “safety-critical”, but is not the software relating to the automated function by definition safety-critical?

[Mr Baker]

The hon. Gentleman makes a good point. I will give way to my hon. Friend the Member for North West Hampshire in a moment if he wishes, but I think that he put his finger on the point very well, not least because he drives a semi-automated car. Imagine my hon. Friend’s Volvo, which requires him to keep his hands on the wheel when it is in semi-automated mode. There could be a software update that allowed him to take his hands off the wheel for an additional five seconds. That is not safety-critical; it is just a variation on the length of time during which it is not necessary to hold the wheel. The point is that such an update would not be critical to the safety of the car’s ability to drive itself—I am grateful to him for indicating assent—but it would be an update related to the software related to the automated function. That is where the amendment falls down. It is possible to conceive of updates that are related to the safety-critical software but not safety-critical. That is where the issue lies.

The other point is that if I have understood correctly, the overall thrust of the Bill, which I welcome, is to be permissive but absolutely clear where liability lies. Drivers know that they are insured whether or not the vehicle is in automated mode. That is the crucial point.

[Mr Hayes]

indicated assent.

[Mr Baker]

I am grateful to the Minister for indicating assent. The point then becomes that it is between the insurer and the manufacturer to ensure that these vehicles are safe, properly insured and that the risks involved are insurable—in other words, low.

I have in mind skydiving. I like to skydive. The parachute that has saved my life a couple of hundred times was sold to me without warranty for use for any particular purpose—in other words, it is formally a novelty item under the law. However, it seems to keep saving my life, provided I use it properly. I am quite comfortable with that, because I understand that the vendors of the equipment—the container and the parachute—produce good, reliable equipment to which one can reliably trust one’s life.

I rather imagine that, in relation to cars, while it will all be much more formal and the software will be more complicated than the parachute’s, we are in a similar position. Provided everyone understands where the trust and the liability lies, and provided those relationships are correctly defined, so that they can be tested in court, and provided that the arrangements that are in place are understood, we have a basis on which we can proceed. The quite detailed, technical arrangements, which I would suggest we as legislators are not equipped to either foresee or handle at the time, can actually be dealt with in a way that allows innovation, spontaneity and creativity, but within a fixed framework of law that is suitable to the purposes.

If I may say so, that is why I am so excited about the Bill. I think it shows that the Government are embracing a better way of structuring our society that allows for freedom, but within a fixed institutional framework that does not seek to intervene too much. That is why I reject new clause 9. It is very well intentioned, but for the reasons I have set out, I personally cannot accept it today. If the Government wish to achieve a similar intent, they will need to choose a different form of words at the fore.

[Alan Brown]

It is a pleasure to serve under your chairmanship, Ms Ryan. I will mainly speak to amendment 21, and I will be brief. To remind the Committee, the amendment relates to clause 4. The title of the clause, “Accident resulting from unauthorised alterations or failure to update software”, implies that software that has not been updated causes an accident. Part 1 of the Bill is about defining the liabilities and responsibilities needed to make insurance practical and able to be rolled out, and to facilitate the roll-out of autonomous vehicles. On that basis, amendment 21 makes a lot of sense to me. In defining liability and responsibility, it clearly sets out that manufacturers have a responsibility to try to make sure that vehicles are updated with the latest software. That is important, and I do not think it should be left to the small print of individual insurance policies. If we are trying to improve consumer confidence going forward, placing an onus on manufacturers to fulfil their responsibilities make sense, and putting that in the Bill would help that. It would facilitate that for insurance companies as well.

New clause 9 complements amendment 21. I take on board the comments about incorporating terminology such as “safety critical” in the new clause; that is something that should be considered going forward as well. I think there is merit in the amendment and the new clause.

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[Mr Hayes]

I am always happy to engage with the industry on the basis the hon. Gentleman describes. I am more than happy to include that in our continuing discussions, and it is right that we should continue to have that discussion with the insurance industry.

[Mr Baker]

I say as gently as I can to the hon. Member for Kilmarnock and Loudoun that the problem with amendment 21, as I said earlier, is that the Government cannot accept it in its current form, however long or short it is, because it is phrased in terms of operating systems. I think the hon. Member for Middlesbrough accepted that earlier. Should the Government wish to look at the function of the amendment and bring it forward on Report, I implore them to choose different words.

[Mr Hayes]

Yes. Let me be even kinder to the hon. Member for Kilmarnock and Loudoun than I have tried to be already. Without wishing to put words in his mouth, I do not think that he is arguing for this precise amendment to be made to the Bill—it has been acknowledged that that is not the case. What he and others are arguing is that the spirit of the amendment might add to further consideration. I have said that I think it is important, in regulatory terms, that there is a commitment from manufacturers of the kind that has been described. I essentially agree with my hon. Friend the Member for Wycombe—I used to think that it was me and the Labour party against the free market liberals, but I am very impressed with and reassured by his contribution.

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[Mr Hayes]

I am going to be brief. I was in favour of a prices and incomes policy when even the Labour party had abandoned that. [Interruption.] I hear comments from behind me. I have been a protectionist all my life, and now it is coming back into fashion. The semantic points that the hon. Member for Wolverhampton South West made are good ones. As I said, we will take out the word “But”—as there are no ifs or buts with me, as yet. We will take a look at the other semantic points; there are bound to be those linguistic changes to a Bill.

The hon. Gentleman’s fundamental point was about the cost of software. If there was a catastrophic market failure—we are speaking about something down the line, as my hon. Friend the Member for Tonbridge and Malling said, for we do not know what the market looks like yet, but if we follow the hon. Gentleman’s advice we are already dooming it to failure—of course we would consider becoming involved. Were that to compromise the wellbeing of a large number of people who purchased automated vehicles, with all the consequences that might have, at some point the Government would need to take some kind of stand, but, if I may use an appropriate phrase, frankly I think we are at risk, Madam Deputy Speaker, of travelling roads as yet uncharted, let alone those we can reasonably foresee how we might journey down.

[Mr Baker]

rose—

[Mr Hayes]

I will give way quickly, though I had produced a wonderfully eloquent summary.

[Mr Baker]

It was a wonderfully eloquent summary and I agree with a proportion of the Minister’s remarks, although not all of them. If we do end up in a position where safety-critical software updates to cars are both frequent and expensive, there will be a catastrophic market failure, and we will be banning automated cars and sending engineers back to college.

[Mr Hayes]

Exactly. I have nothing to add to that.

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[Mr Hayes]

The hon. Gentleman’s assiduity does him great credit. It is perhaps worth saying that the clause defines a series of terms and concepts vital to the functions of the proceedings in the Bill. The only reason it does not apply to Northern Ireland is that this is a devolved matter: motor insurance is devolved in Northern Ireland.

Question put and agreed to.

Clause 7 accordingly ordered to stand part of the Bill.

Clause 8

Definitions

[Mr Baker]

I beg to move amendment 9, in clause 8, page 6, line 5, leave out “electrical”.

This amendment would allow the Bill to cover hydrogen fuel used to power internal combustion engines.

I would not dream of pressing the amendment to a vote, but I would like to probe the Government on their position. Currently, the definition of “hydrogen refuelling point” is

“a device intended for refuelling a vehicle that is capable of being propelled by electrical power derived from hydrogen”.

My amendment would leave out “electrical”. The reason for that is the evidence we heard from witnesses in oral evidence.

I put it to a witness that we could have a dual-fuel vehicle, or indeed a vehicle propelled entirely by hydrogen, just as we could have liquefied petroleum gas vehicles and keep the internal combustion engine. I know it is not very fashionable at the moment—I know we are mostly looking at battery power, possibly with an option on fuel cells—but it is important that we ought not to unnecessarily constrain the use of hydrogen.

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[Mr Hayes]

As I said, I am always prepared to receive advice on these matters. I acknowledged in advance that my hon. Friend has great expertise in this field, so far be it from me to flatly disagree with him, but perhaps I am about to get another chemistry lesson.

[Mr Baker]

Of course when we burn hydrogen the result is water. However, when we took evidence on this subject, we were cut lamentably short for entirely understandable reasons. The witness was really talking about dual-fuel vehicles, which run on both petrol and hydrogen. We were not able to explore fully what it would mean if vehicles were to run with internal combustion engines entirely on hydrogen. The reason behind dual-fuel vehicles is that there is a limited supply of liquefied petroleum gas around the country, so vehicles still need to run on petrol. However, if there was hydrogen everywhere, one might potentially dispense entirely with petrol in such engines. Vehicles could then run entirely on hydrogen and they would never burn a carbon-based fuel.

[Mr Hayes]

Despite the overtures from my hon. Friend, the witnesses were singularly unenthusiastic about hydrogen, particularly Mr Willson. He said:

“I believe hydrogen is too far away yet to get consumers interested in or excited about it.”––[Official Report, Vehicle Technology and Aviation Public Bill Committee, 14 March 2017; c. 18, Q31.]

However, it is clearly not too far away to excite my hon. Friends the Member for North West Hampshire and for Wycombe, but they are at the apex of excitement at all times.

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[Alan Brown]

With your indulgence, Ms Ryan, I have some sympathy with what the hon. Member for Wolverhampton South West said, because I wondered whether this was the right place to make an amendment, given that the actual title of part 2 is “Electric Vehicles: Charging”. This clause is all about the charging of electric vehicles; it is not actually about internal combustion engines, so I would suggest that perhaps it is not the correct place to make this amendment.

Also, the Government Members of the Committee are some of the greatest free marketeers. If we move to this position where hydrogen internal combustion engines are the future, hopefully the free market will help to drive that as well, because we have all these petrol filling stations that can no longer sell petrol and they may have an opportunity to convert their petrol tanks to hydrogen tanks. There is still a future, but I think we are a wee bit way off it yet.

[Mr Baker]

I am extremely grateful for the range and scale of this debate. I started by saying that I would not dream of pushing this amendment to a Division, so I beg to ask the Committee’s leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Question proposed, That the clause stand part of the Bill.