Assessment of Exhaust Emissions

Stewart Malcolm McDonald Excerpts

Monday 8th February 2016 General Committees

[Andrew Jones]

The hon. Gentleman asked quite a number of questions. I will take the questions on VW first.

The Government first became aware of the installation of software fitted to Volkswagen vehicles to distort emissions testing following the announcement of the US Environmental Protection Agency’s investigation on 18 September last year. We have widely condemned VW’s behaviour and demanded that it take early action to rectify the situation. Our priority is to protect the consumer, to restore confidence in the real-world performance of diesel vehicles and to ensure that VW supports its UK customers.

The VCA has secured an assurance from all automotive manufacturers outside the VW group for which it has issued emissions type approvals that defeat devices have not been used. The Government have called on the EU to conduct a Europe-wide investigation into whether there is evidence that cars have been fitted with illegal defeat devices. We have obviously gone on to test vehicles, and on 10 November, the Secretary of State announced an emissions testing programme to look for defeat devices and to improve our understanding of the real-world emissions performance of vehicles used in the UK. That investigation is vital to restore public confidence.

The VCA, our type approval authority, first reran lab tests for those VW group vehicles for which it had provided approval. Those initial tests provided valuable information for improving our ability to detect a defeat device and strengthened our understanding of the impact on vehicle emissions. To ensure the independence of the testing, the Department is funding the programme and neither the cars nor the testing facilities will be provided by the vehicle industry. We are completely distant from anything in the sector. We are testing 40 vehicles that are representative of a significant proportion of the overall vehicle fleet. The testing is proceeding well and we are using all the facilities we have in our country to make the process happen as quickly as possible, but we are only halfway through it. That is why we have said that the findings will be published in the spring. It would be premature to make further announcements today because we would be doing so only halfway through the programme, which would not be appropriate. We have been clear that we will not provide an ongoing commentary because we will need to conduct in-depth analysis when we have completed the process and ensure that the results are viewed in context, which can be done only at the completion of the testing. I cannot say more than that on the VW issue today.

I emphasise to the Committee, however, that although the VW crisis has brought things more into the public eye, the work on real driving emissions started long before the VW issue was on anybody’s radar, and that will continue. The proposal before us is about testing for all marques, not just one, and for all vehicle fuels, not just those diesel fuels used in the particular type of engine that caused the problem at VW. While VW is a part of this, that is only in the sense that it has brought the issue further into the public domain. On how we can improve performance, we are building on the success and progress that we have had on air quality over some years—we have gone from Euro 3, Euro 4 and Euro 5 up to Euro 6—and these proposals are a step change. I just want to put things in context for Members, because while that issue is related, it is not the key one.

I will now deal with some of the other questions. Provisions for small manufacturers will be discussed and agreed in the package 3 negotiations, which will take place later this year. The UK has already highlighted the importance of the matter to the Commission and is in discussions with manufacturers here, such as Aston Martin.

I can certainly confirm that discussions are continuing with the Serious Fraud Office and the Competition and Markets Authority. They are independent bodies, so it is for them to decide whether to investigate. We are fortunate to live in a country in which politicians do not direct the legal process.

We need to reflect a little on the issue of changes to measurement tolerance, which is a significant factor. The intention, with the first transition step in 2017, is that the conformity factor can be reached through software and calibration changes alone, and a conformity factor of 2.1 has been agreed. That includes any measurement uncertainty.

The second and final step, in 2020, will brings the conformity factor down to 1, which represents parity with the lab test plus, again, measurement uncertainty. Research conducted by the European Commission’s Joint Research Centre examined the various sources of error in on-road emissions measurements. Its conclusion was that there was a worst-case error margin of 0.375, which was why the UK supported 0.4 as a conformity factor. However, some member states argue that other factors that increase NOx emissions in real-world conditions should be taken into account, so an overall figure of 0.5 was agreed.

The Commission has committed to the European Parliament to review the tolerance quickly. We are dealing with new equipment and relatively new technology. The reason why such testing has been used for heavy goods vehicles before cars was simply that the equipment was so big—it could be put in the back of a truck, but not in the back of a car. We are not in that position now as technology is miniaturising. The Commission has committed to a quick review of the tolerance and possibly to moving to much tighter tolerance. We therefore know exactly the direction of travel and there is clear technological progress.

A further question was asked about reviewing our own position on real-world testing, but we have to be clear about what we are asking for before we speak to the European Commission. The Department and chief scientists are considering the matter. Once we know what must be done, we will engage with the Commission and the Joint Research Centre.

On the question of legal challenge, I think that we can be very secure and we have no concerns about that. Our legal opinion is that real driving emissions measures are consistent with Euro 5 and Euro 6 measures. We are not aware of legal challenges on that, and the Commission and the European Parliament are also content. The proposal will complement Euro 5 and Euro 6 testing in a laboratory.

[Stewart Malcolm McDonald (Glasgow South) (SNP)]

I promise to be brief. I have two quick questions, following on from what the Minister said about the Serious Fraud Office and the Competition and Markets Authority. Of course he is correct that those bodies are independent and must be able to make their own decisions, but the Secretary of State has the power, when he believes that an illegal defeat device has been used, to impose fines or to take legal action against a company. He has not done so, because he has come to the same conclusion as Volkswagen: what VW installed in cars in Europe does not actually constitute a defeat device. Does the Minister therefore share my disappointment that these new proposals from the Commission do nothing to alter the definition of a defeat device in Europe? Why has the Commission not gone for the American definition, which is much tougher to get around? To implement such a measure wholesale in Europe would show consumers that we take the issue seriously. Will the Minister consider the definition of a defeat device here in Europe? I urge him and the Secretary of State to get it changed quickly.

[Andrew Jones]

Our priority is to protect the consumer and to restore confidence in the real-world performance of diesel engines, ensuring that VW supports its UK customers. We have launched an investigation, and re-tested diesel cars to gather much-needed evidence to restore public confidence and to improve our understanding of vehicles’ real-world emissions performance. We are only halfway through that testing process. We have said that we will not bring the matter to a conclusion or take any further steps until we are absolutely clear about the extent of the problem, but we have not ruled anything in or out. We are still working and are only halfway through the process. On the definition of a defeat device, the real driving emissions proposal includes an amendment to bring requirements on defeat devices in line with those for the USA.

--- Later in debate ---

[Stewart Malcolm McDonald]

We have been brought to this point by the soap opera of the Volkswagen scandal and by the fact that one in two cars sold in Europe is a diesel car. This is an enormous public health and consumer issue. I fear that the Government are at risk of sitting on their hands, as we hear that country after country in a list as long as my arm are taking action of some kind against Volkswagen. It is interesting that the hon. Member for Birmingham, Northfield mentioned the Google issue. I worry that the Department for Transport risks being seen to be as feckless as Her Majesty’s Revenue and Customs when it comes to standing up for the public interest against big corporations.

Volkswagen, quite simply, has managed to pull the wool over so many consumers’ eyes, but because of the inadequate rules here in Europe, it will probably get away with it. In the United States, Volkswagen drivers are being compensated with $500 in cash and $500-worth of credit vouchers. Here in the United Kingdom, Volkswagen drivers will not receive a single penny. What of the fact that it was a United States authority that caught out a major European car manufacturer? Not a single one of the EU’s 28 member states caught Volkswagen out; instead, it was a Californian authority.

There is undoubtedly some good stuff in the documents produced by the European Commission, but I feel an opportunity has been missed. We have an opportunity to strengthen the proposals. There are some technical elements that need to be strengthened, but really we need to see more from the European Commission to tackle the culture in the car industry and its relationship with testers and regulators across the EU. We must see proposals that put an end to manufacturers being able to shop around in Europe to get the most favourable tester to give them the results that they want. In the Transport Committee we heard evidence from Transport & Environment, a Europe-based think-tank that does a lot of work on emissions regulations. It seems strange that an awful lot of manufacturers go to Luxembourg—a country not exactly known for its car industry. What is going on in Luxembourg? What are manufacturers getting there that they cannot get elsewhere? The proposals do nothing to crack down on that, and that is where the Minister needs to focus his attention in future.

At the moment, 45 lobbyists are working in the European Parliament on behalf of Volkswagen, which over the years spent millions of pounds to get the results it wanted. My goodness, that was money well spent. Look at the result in the Parliament only last week: the right number of abstentions to ensure that these watered-down proposals, which still allow manufacturers to exceed the legal limit on NOx, went through. We must turn the corner and get to grips with an industry that for too long has perverted environmental regulations and treated consumers with disdain—an industry that does not give a damn about regulators because it has creative engineers who help it get around regulations. My fear and that of so many people who are much more qualified than me, whether those who work in the transport sector or those such as the British Lung Foundation, is that that will continue.

This is a major public health issue. We know that pollution from NOx is killing about 500,000 people across Europe every year, so I want to see some enthusiasm from the Government to get to grips with the opportunity before them. The proposals are a good starting point, but the Minister must assure us that he will put British consumers and British public health first by arguing for strengthened proposals. He could give us some confidence by taking a tougher line on Volkswagen than simply stating that it has been naughty, naughty. All of those statements, correct though they are, are a wee bit wet. People expect a bit more from Her Majesty’s Government on this, probably the biggest corporate scandal to engulf the motoring industry for quite some time. For that reason I will oppose the motion.

[Andrew Jones]

We have talked about critical issues in the debate, and it is absolutely right that improving our national air quality is a top priority. We must remember that the wider impacts of poor air quality are equivalent to about 29,000 early deaths in the UK. It is a huge and significant public health issue and that is an important factor.

We must also recognise the progress that has been made in tackling air quality issues by the automotive sector. Responding to challenges from Government and its own desire to improve its performance, the sector has shown creativity and determination in improving its engineering to deliver benefits for drivers and, through them, the rest of our community. We only have to look at the difference between Euro 5 and Euro 6 to see the progress made. We are looking here at how we can build on that progress.

I do not think that any Government have been complacent—far from it. However, it is fair to say that there is significant public concern on air quality issues and I share them entirely. The idea that the Government have been complacent is just wrong. In May, we abstained in protest after pressing for the introduction dates to be included in the EU motion. They were not included and we wanted them to be. I remember that particularly well because it was the first decision I had to make as a Minister and it happened about three days after the general election. It is critical to recognise that the Government have been pressing for action, and that started long before I took this job.

Have the reputations of the automotive sector and of Volkswagen been damaged by these events? Yes, it would be ridiculous to suggest that they have not been. We only have to look at the impact on share prices and sales figures to see that there is huge concern.

[Stewart Malcolm McDonald]

The Minister is right to say that the reputation of the auto industry has been damaged. Does he accept that the reputation of regulators in the UK has also been damaged, given that it took an American authority to find out what was going on?

[Andrew Jones]

I gently remind the hon. Gentleman that it was the portable emissions measurement equipment, which has been developed largely in response to the UK and others in Europe pushing for RDE, that actually enabled the investigators to unearth the VW issue in the first place. Europe is the first place in the world to introduce on-road emissions testing. The idea that we have been off the pace, complacent or asleep at the wheel is simply not true.

Has the reputation of the sector been damaged? Yes, it has. Has VW’s reputation been damaged? Yes. For what it is worth, my car has been recalled as part of the process. VW is not quite the company I thought it was when I bought the vehicle, and indeed paid extra for the environmental package as I sought to be a low-emitter driver. I am sure that the sector recognises that its reputation has been damaged. I have had that conversation with automotive industry players and with the Society of Motor Manufacturers and Traders. Real driving emissions testing is part of the answer and the key to recovering trust.