Electric Vehicles: Infrastructure

Virginia Crosbie Excerpts

Wednesday 22nd February 2023 Westminster Hall

[Steve Brine]

No, and before the Liberal Democrats try to produce another attack leaflet to say that is what I was saying, the hon. Lady can strike that from the record. That is certainly not what I was saying, but I am asking the Minister whether the Government are considering it. Surely the Treasury are considering that loss of revenue. From his previous role as Chair of the Transport Committee, the Minister will know that that was laid down as a challenge to the Government. I know that the Committee is still waiting for a response to that. I am rather cheekily asking the Minister whether he has yet to respond to himself. Could he do so today?

I will raise some more concerns about the availability of electric vehicles. Certainly in my constituency, consumers are embracing the change to electric vehicles as people are understandably more and more concerned about the environment. However, we have already heard about the supply available to buyers. The current average waiting time for an EV is seven months, according to the Library. Companies such as Volkswagen have at least a 10-month wait from the time the car is bought to its delivery. I would suggest that that is a barrier to purchase. It is concerning, because forcing people to make the change to EVs will once again increase the waiting times as demand increases. People cannot be expected to bear a cost that is due to factors out of their control.

There is a current fall in demand for EVs because of the dip in the economy and the spike in inflation. I asked a previous Minister in the Department about this. What conversations are the Government having with industry to try to help them meet demand? I realise that the pandemic has hugely got in the way of that, but what conversations are the Government having with industry to try to stimulate demand?

Tesla has recently smashed the cost of EVs by a reported £7,000. There has been an expansion of EVs, but only 24 models are priced under £32,000 due to the cost of the battery technology. Even the UK boss at Kia, Paul Philpott, has said that car makers are finding it “economically difficult” to bring affordable smaller vehicles to market due to the high cost of batteries, despite the ban on the sale of all new petrol and diesel cars looming in 2035.

I will gently remind the Minister about the up-front cost and a serious lack of a second-hand market for electric vehicles. That is a whole other subject, with only 3% of used car transactions involving EVs in 2021. I hope that that market will start to emerge as we make the transition, so that many lower-income families will not be priced out of even having a conversation about switching to an EV. It is hugely unfair that they want to do the right thing, but they know they cannot.

In closing, I support the move to electric vehicles, and I know that my constituents do. I see more and more EVs on the streets of my constituency. The phasing-out of all new petrol and diesel cars by 2035 has my support, but it is clear that the infrastructure is far from fully developed, with many complaining about teething problems. It is obvious that to meet the target, and seriously increase the rate at which the infrastructure is being implemented, especially the distribution of charging points, we need to see a step change to meet the current ambition.

[Virginia Crosbie (Ynys Môn) (Con)]

I thank my hon. Friend for calling this timely and important debate. I am sure the Minister is aware that last week Welsh Labour, propped up by their Plaid chums in Cardiff, cancelled all major building projects, including plans for a third bridge across the Menai Strait. Does my hon. Friend agree that their priority should be increasing the number of electric vehicles, and that means better scrappage schemes, grants and rolling out more EV charging points? That is the responsibility of Labour in Cardiff as a matter of urgency.

[Steve Brine]

I hope other Governments around the UK will be listening to today’s debate. My hon. Friend mentions the issue of scrappage. There are many different subjects I could have covered in today’s debate, but I did not want to go on for another 20 minutes and test the Chair’s patience. This is long enough, surely. She is right that scrappage schemes in Wales would be good to see. I look forward to her updating the House.

There does need to be consideration of the loss of revenue in Treasury. What conversations have been had about the change in vehicle excise duty? I am concerned that the Government have said that they plan to set out a legally binding annual target that manufacturers must meet up to 2035. We have no idea of what that will take. The cost to consumers needs further consideration, at a time when we face cost of living challenges. Supply and cost are major barriers right now to people who want to do the right thing. We can all support the phasing-out of combustion cars. I suggest that the current target of 2035 may be beyond us. I look forward to the Minister’s response to disabuse me of that thesis.