Plug-in Vehicles

Yvonne Fovargue Excerpts

Thursday 25th April 2013 Westminster Hall

[Yvonne Fovargue (Makerfield) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Robertson. I welcome this crucial debate, because, as we have heard from everyone who has spoken, it is vital that we reduce carbon emissions for the sake of all our futures, and that we accept that plug-in cars have a central role in achieving that goal. The Transport Committee clearly recognises that, and its excellent recent report is an important step forward.

The Government have claimed to be the “greenest ever” on some occasions, but sometimes the facts tell a different story. In 2011, they set out their vision for reducing carbon emissions from cars and vans using technologies other than internal combustion engines. In their Carbon Plan, they said that by 2050 almost every car and van would be an ultra-low emission vehicle. The way forward, we were rightly told, was to encourage demand for plug-in vehicles by providing financial incentives for consumers to buy these cars, and by providing funding for an infrastructure for vehicle charging that was publicly available.

So far, so good, but then there were the initiatives and the Select Committee has examined these. Purchasers can apply for a car grant of 25% of the cost of a plug-in car, up to a ceiling of £5,000, while funding has been provided for the installation of electric charge points in eight pilot areas. However, we have to consider the effect of these initiatives, and whether we are actually on course for that brave new world.

What we see is rather less than a comprehensive plan. Instead, there is a series of piecemeal and—as we have heard from Government Members—cautious actions that are unlikely to create the kind of demand for plug-in vehicles that is necessary if we are to take a major step forward. We are moving forward, but at a snail’s pace.

As the Committee’s report recognises, consumer demand for these vehicles has increased, but it remains relatively low; it is about 1%. Yet by 2015 we are told that the Government expect that we will

“see tens of thousands of plug-in vehicles on the roads in the UK”,

and hundreds of thousands by 2030. Judging by the numbers that we are seeing at the moment, I am not sure that we are actually on track.

The truth is that the grant for the vehicles has not had the effect that it should have had. As we have heard—I think from everybody who has spoken—part of the problem is that plug-in cars are more expensive than petrol or diesel models, and there is evidence to suggest that the grants are being used by affluent families to buy a second car, but those families are still using their petrol or diesel cars on a daily basis.

We need to bring down the cost of electric cars, because I think that we have won the argument that they are cheaper to run and offer the potential for huge savings across their lifetime. However, as we have heard, winning that argument is of little use if the average motorist simply cannot afford the up-front cost of these vehicles. We have heard from the hon. Member for Milton Keynes South (Iain Stewart) that there are some solutions to this problem, perhaps by looking at the network of hire vehicles.

When Labour were last in power, we provided £2.3 billion of assistance for the automobile industry during the recession, which was aimed at promoting research and development in new low-carbon vehicles. It also included helping companies such as Jaguar Land Rover to access the European Investment Bank’s clean transport facility. We made a commitment to make electric vehicles more easily available to consumers, with work by the then Transport Secretary, Lord Adonis, on trial electric vehicles. In addition, £250 million was invested in making electric hybrid vehicles more affordable for consumers, and the Government should be continuing that work.

I will now discuss the infrastructure, because it is absolutely vital that there is a recharging infrastructure that offers the assurance that potential buyers of plug-in cars understandably want that they will be able to recharge their car wherever they are. I understand that people with plug-in cars mostly recharge at home, but without the insurance that it is possible for people to recharge wherever they are, more people will not take up the offer of electric vehicles. People have to be confident that the structure is in place to allow them to make long journeys or take significant diversions without worrying whether they can get back home again.

The coalition agreement committed the Government to developing a national recharging network of publicly available charge points, but there is little evidence that the public actually believe that that network will be created. As the Committee’s report says, the Government appear to have spent £11 million on providing infrastructure that currently benefits only a handful of vehicle owners, while the National Chargepoint Registry does not even show the location of the majority of charge points installed with public funds, which does not instil public confidence. I accept that there has not been full evaluation of the pilot charging schemes in the eight selected areas. However, as a car owner in Wigan, when I see that Manchester has no charge points at all, that does not encourage me to buy a plug-in car to make that journey.

The simple fact is that there just are not enough charging points. It is a real worry that greater progress is not being made, and there are real doubts about whether the Government are treating this issue with the urgency that is required to ensure that even their own claims will be achieved.

As we heard from my hon. Friend the Member for Liverpool, Riverside (Mrs Ellman), the Government have done too little to inform the public of what is happening. Dr Berkeley from Coventry university told the Select Committee that

“the Government could do more to stimulate demand, particularly in terms of public awareness and public education”.

Indeed, one of the recommendations of the Committee’s report, which the Government need to consider more seriously, is that the Government must publicise the support and infrastructure that is available. There is no reason why the demand for plug-in vehicles should not take off, but it will do so only if the Government get firmly behind the project.

I accept that this is a bit of a “chicken and egg” problem, up to a point. People will not buy the plug-in cars if they are not sure that the infrastructure is there, and there is a reluctance to provide the infrastructure unless the demand is proven to exist. However, the Government can break that impasse. As the Committee’s report says, the Government should not sit back and hope that increased demand simply manifests itself. The Department for Transport should set milestones to make sure that its plug-in vehicle policy is effective, and it should take the lead in providing data on the location of charge points so that the public can actually see where they can charge their vehicles and can plan their journeys adequately.

In a wider sense, the Government also need to consider whether they are doing enough to help the automobile industry to make the changes. It is really pleasing that Nissan is building its electric car, the Leaf, in Sunderland, but it is disappointing that it has downgraded its estimates of production. We need to encourage Nissan and other companies in every way we can. Is the automobile industry putting sufficient investment into improving the efficiency of conventional petrol and diesel vehicles? Can we encourage it further to invest in British industry? I would like to hear the Minister’s views on those subjects because, as the hon. Member for South West Bedfordshire (Andrew Selous) said, it is important that Britain’s car industry takes the lead in this sector, so that it becomes revitalised.

We recognised in government that a step change was needed to move away from our dependence on oil, so we embraced and incentivised ultra-low carbon alternatives such as electric vehicles. Of the 20% of our total emissions that originate from our roads, 15% to 16% of them are from cars. If we can make it affordable for more people to use electric vehicles, that has the potential to make a significant impact on emissions. For the most part, the Government are looking in the right direction, but they seem to be in danger of stalling.

--- Later in debate ---

[Norman Baker]

I am happy to provide my hon. Friend with details about that. We are in regular contact with manufacturers in the country to encourage them to pursue that matter further. In respect of that particular manufacturer, I will exercise my brain cells to find out whether anything comes to me during this part of the debate, to enable him to have a fuller answer.

It was suggested that these are merely second cars for rich people, but that is not so. Some 73% of the so-called second cars have taken up the grant for business use, so business is embracing low-carbon cars. That is the predominant purchasing market at present.

We are in the process of updating the “Making the connection” infrastructure strategy and looking to restate the rationale for policy in this area, and this debate helps, as does the Committee’s thoughtful report. As this strategy develops, I will be limited in what I can say about what it will contain. However, we are aiming to publish it in early summer and hope to be able to provide an in-depth analysis of our programmes to date and use this, and robust evidence from other key stakeholders, to set out a pathway to the mass adoption of ULEVs in the UK.

We are currently talking—we always do; it will not be a surprise—to automotive manufacturers, infrastructure providers and energy providers, because there is an issue about the grid. We are also talking to our colleagues at the Department of Energy and Climate Change, trade associations representing the motorcycle sector, other Departments, and so on. That is not an exhaustive list, but I hope it gives hon. Members confidence that we are engaging cross-departmentally and across industry, with all relevant parties, to ensure that we are getting the best possible future for ULEVs.

I think we are getting the policy right. The start of Nissan Leaf production in Sunderland is proof of this. Of course, it is not just that. The BMW 8 engine is to be produced in the UK; the batteries are now being produced, helped by the significant investment in research and development, which the Government has brought forward.

We have the potential to achieve—I agree with my hon. Friend the Member for South West Bedfordshire—and we must be ambitious for Britain in this area. We must ensure that we become the focal point for the development of ULEVs. We are on the way to doing that, certainly as far as the European dimension is concerned, by getting in early, with clear direction from Government. Industry has said to the Government that it welcomes the clear, direct steer from us, giving long-term certainty about the direction of travel. To be fair to the Opposition, all three parties have embraced this agenda, giving certainty to industry beyond particular Parliaments. It is important that that stays as it is. We want more auto manufacturers.

Another point about the number of vehicles sold is that there is a limited number of vehicles on the market at the moment. That will change rapidly, with a new range of vehicles coming along shortly, giving far more choice to the consumer and the business user as to which vehicle they purchase for their particular needs. That, as much as anything else, will lead to an upturn in sales.

I will now try to answer questions asked by hon. Members. The national charge point registry was mentioned by the Committee Chair in her opening contribution. It is a requirement under both plugged-in places and the new national grant scheme that all publicly accessible charge points funded by the Government must be registered with the national charge point registry. Good progress has been made in adding data to the NCR. There are currently 3,085 points on the register.

[Yvonne Fovargue]

Would it be a good idea to inform the people who run the websites of the availability and where the charge points are? When I researched—I presume my hon. Friend the Member for Liverpool, Riverside went to the same website—no charge points were listed in Manchester, apart from one that was a private charge point owned by the Citroën garage.

[Norman Baker]

I am surprised to hear the hon. Lady say that. We will certainly look into that, because we want to ensure that as much information is available as possible. We will take that point on board and see whether it is correct. If it is, we will draw it to the attention of those who can help correct it. The information needs to be available to the public at large.

I have mentioned Nissan’s production. The Chair of the Select Committee mentioned local authorities. I hope that she has seen the announcement by the Secretary of State, which was issued subsequent to her Committee’s report being finalised, but which does mention help for local authorities, including an £11 million fund to help install on-street charging for residents who have, or have ordered, a plug-in vehicle but do not have off-street parking. Authorities can apply for 75% of the costs of installing a charge point. That is a pretty generous contribution. It should not be too high, because if it were 100%, people would ask for charge points without any intention of using them. There has to be a buy-in on both sides and 75% is about right for the contribution made.

It was suggested that £11 million would not go far enough. Let us see what the response from local authorities is. If we are overwhelmed by local authorities that respond positively, we will reconsider within the spending envelope for the budget covering this area. However, I think that that is a pretty reasonable start. It goes along with the £13.5 million for home owners—a 75% grant for them, as well—to have a domestic charge point installed, and the £9 million to fund the installation of charge points at railway stations. That is a useful initiative, because it enables people to get to the station in the morning—it encourages them to use the train, by the way, which is also lower carbon—and charge the car during the day. It need not be a rapid charge, either. They can then have confidence that, when they come back in the evening, the car is ready to drive home, fully charged. That is a good initiative and I look forward to train companies taking us up on that generous offer.

We are allocating £3 million to support the installation of charge points on the Government and wider public estate to ensure that we are doing what we can, as a Government, to lead the way on this matter and to send a clear signal that this is right for us and right for the public at large, and all those who would be interested in running vehicles in future. I hope that addresses the point on the public sector raised by the Chair of the Select Committee.

The hon. Lady also mentioned the TEN-T rapid charge bid, which we have supported. She also referred to the impact on the grid, and our view is that, if demand for electricity is properly managed with the use of smart meters and dynamic tariffs, the grid can support a relatively high number of plug-in vehicles without the need to build extra power stations. In fact, electric vehicles may also provide a way to capture and store electricity produced at night from renewable sources such as wind power, so they could actually help the electricity mix. Clearly, those are matters in which DECC is interested, and it is considering them in conjunction with the Department for Transport. As she would expect, Departments are working together on that.

On taxation policy, the hon. Lady was kind enough to refer to the recent change introduced by the Chancellor in his Budget, which is a welcome step and gives long-term confidence. In fact, it is a clear example of the Government responding to business: businesses said what they want, and the Government listened and delivered what they asked for. That will give confidence to manufacturers and purchasers of such vehicles in the years ahead.

The hon. Lady and my hon. Friend the Member for Milton Keynes South asked about quiet vehicles. There is an issue with whether visually impaired people are more at risk if they cannot hear particular vehicles. I am advised that, above 20 mph or so, the tyre noise is sufficient for them to identify that a vehicle is moving, but there is an issue with low-speed vehicles. The European Union is debating whether there should be a mandatory requirement for a noise to be added. I am not sure whether my colleagues in the Department for Environment, Food and Rural Affairs would appreciate an Aston Martin noise being added to a small vehicle, but there is a decision to be taken on whether adding a noise should be mandatory or simply voluntary. Those discussions are ongoing. There are also ongoing international discussions on whether that should be addressed internationally. Clearly, an international solution would generally be a good thing.

My hon. Friend the Member for South West Bedfordshire correctly identified that, if these electric vehicles are rolled out, they could lower the cost of motoring, as well as making motoring cleaner environmentally. He also asked one question that he said I had to answer, which was on when it will be economically rational to buy an electric vehicle. I am afraid that I do not have a date in mind, and it would be rather foolish of me to give him a date. What I can say is that it depends on a whole range of factors, including the oil price, the take-up of fleet buyers and everything else, but I am quite clear that I share his view. At some point in the not too distant future it will become more sensible economically, apart from anything else, to purchase an electric vehicle rather than a traditional petrol-driven vehicle. I hope those days are not too far away.

I welcome the interesting suggestion of my hon. Friend the Member for Milton Keynes South that cars might be available for hire, which would take away some of the uncertainty that people have, and it may fit in with people’s lifestyles to be able to do that for short journeys in particular circumstances. We are, I think, already working on something similar with car clubs so that they can partner local authorities and train operators in funding such possibilities.

Concern was raised about the possibility of electric vehicles running out and leaving people stranded, which I accept is a genuine concern for consumers. It is worth pointing out that such vehicles have a range of 100 miles, or less if the air conditioning is on, for example. In the UK, 99% of journeys are 100 miles or less, so the chance of someone thrashing their car and running out somewhere is, helpfully, quite remote. As battery technology improves, that will become even less of a risk.

Finally, I hope the hon. Member for Makerfield (Yvonne Fovargue) will forgive me for saying this, but her contributions since being appointed Opposition spokesman have tended to be formed of two things: how the previous Government got everything right, and how all the things we are doing are wrong. Having spent 13 years in opposition, and perhaps having more experience of making such speeches, I would say that sometimes giving the Government credit for what it is doing means that the Government listens more when it is told that it is getting something wrong.

I think I have answered most of the hon. Lady’s points. Lots more cars are coming onto the market. She says that the grant has not had the effect it should have had. Yes, it has, and it will have more effect when we have more cars and more choice for consumers, as we will very shortly. I agree that we need to invest in British industry, which is what we are doing. The Government is on track and has a good record on electric vehicles, which in due course will be good for the economy and the environment.