Vehicle Registration Marks

Steve McCabe Excerpts

Thursday 31st January 2013 Commons Chamber

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

I am grateful for the opportunity to make a case to the Minister about the system for the manufacture and sale of number plates in this country. I declare an interest as secretary of the European secure vehicle alliance, an associate parliamentary group that has long campaigned to improve vehicle security.

The UK, unlike many other countries, relies on a poorly conceived and poorly regulated manufacturing and distribution regime with approximately 40,000 outlets that supply, on average, only two or three pairs of number plates a week. That badly designed approach offers neither quality nor inherent integrity, yet countries such as Sweden have designed and developed a secure system relying on a single supplier, appointed on a five-year basis through a competitive tender process, that starts with the assumption that the number plate should be like a secure document that can assist law enforcement agencies as well as protecting owners’ vehicles. In Sweden, the plate manufacturer receives its instructions electronically from the Swedish equivalent of the Driver and Vehicle Licensing Agency. The system is simple and efficient, and it provides for security. It is similar to that adopted by many European countries. It provides enhancements that benefit motorist and state, and it works out cheaper for the motorist than is the case in the United Kingdom.

Such an approach of controlled supply operates in a large number of countries. In some countries, such security value is attached to number plates that they are produced in the same institutions that print bank notes. It would be inconceivable that our Government would allow a free-for-all in passport production.

In 1994, the Home Office vehicle crime reduction team and the Association of Chief Police Officers produced a plan to reduce vehicle crime that recommended adopting the Swedish number plate regime. In November 2010, a further report from ACPO’s vehicle crime intelligence service recommended adopting a system of secure vehicle registration marks with a limited number of approved suppliers. The British Number Plate Manufacturers Association, the Department for Transport and the DVLA have shown little enthusiasm for the 1994 plan and the 2010 report, but perhaps that is not too surprising, given that the DVLA is not generally associated with innovation and the BNMA is heavily influenced by dominant manufacturers and suppliers, not least the multinational group 3M. These vested interests have little incentive to change the system. It suits them to have a relatively unsophisticated model for the supply and assembly of number plates. 3M gains enormously from the supply of the one high-value product used in British number plates—the reflective sheet.

One consequence of the ease with which plates can be obtained in this country is that it facilitates the theft and transfer of cars, which is often known in the trade as ringing or cloning and is usually associated with organised crime. There is also a problem with the theft and counterfeiting of VRM plates.

Despite considerable advances in automatic number plate recognition since the late 1990s, there has been no corresponding change in our number plate technology, yet we know that the police think that this needs to happen. Indeed Hills, one of the leading UK number plate suppliers, has produced millions of plates that cannot be read by many of our ANPR cameras. It seems likely that other suppliers are producing similarly deficient plates. Far from building on the technological lead that developments in ANPR should give the United Kingdom, we seem to be concentrating on providing comparatively expensive number plates which are of little value in terms of security or assistance to law enforcement.

The style and layout of our plates could be improved. I have here a handy prop—a number plate—which I am willing to gift to the Minister at the end of the debate. It contains a hologram, a concealed Union Jack identifier, small but camera-readable and computer-readable ID marks and the vehicle identification number. That is the kind of thing I have in mind.

I do not know what has happened to the British Standards Institution review of number plates, which I understand was supposed to be published early in the new year. Perhaps the Minister can enlighten us. But it seems to me that this review has concentrated on the views of the industry, the BNMA and its members. It is hardly likely, therefore, to come up with any case for change. Indeed, the committee of the BSI which considers number plates is chaired by an executive of 3M.

It is my contention that this cosy, almost collusive, set of relationships is hindering our potential to develop a new generation of number plates for which there is now a strong case to be made. It is exerting undue influence on the DVLA and the Department for Transport and putting the profits of multinationals before the interests of our motorists and the needs of the police.

I hope the Minister can commit to reviewing the existing situation. I hope I can persuade him to review our use of number plates in the context of security and related technology. I hope we can convince him that there are clear advantages in having more security features, and I hope he will re-examine the case for greater control of the supply of number plates. I believe that a single-source supply model warrants consideration, but I recognise that others may judge it to be too great a step, and my interest is in advocating a model that provides for a markedly more secure and sustainable number plate regime. Such an approach need not cost the taxpayer money. It will more likely raise revenue through a better established market that can support the sale of “cherished plates”, and of course any Government seriously considering introducing cost-effective and sustainable road pricing will need an effective number plate regime that gives access to essential data.

Finally, I contacted West Midlands police to advise them of this debate. They said that change is definitely needed and long overdue. They support improved design and marks to aid automatic number plate recognition, a limited number of approved suppliers, and metal VRM plates hot-riveted to the vehicle to prevent theft and tampering.

--- Later in debate ---

[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.

[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.