Motor Vehicles (Compulsory Insurance) Bill

Debate between Peter Bone and Theresa Villiers

Committee stage
Wednesday 5th January 2022 Public Bill Committees

[Mr Peter Bone (Wellingborough) (Con)]

It is a pleasure to serve under your chairmanship, Ms Ali, for the first time, I think. The Minister is here at such short notice, and I am grateful to her and to the Government for that. I am also grateful to the Opposition Members present, because without Opposition support, the Bill could not have moved forward.

The Motor Vehicles (Compulsory Insurance) Bill is a small but important piece of legislation. It had its First Reading on 21 June 2021. Second Reading was moved on 22 October, but unfortunately it was objected to on that date. It was moved again on 29 October, when it was agreed without objection. Although there was no debate on Second Reading in the House of Commons Chamber, the issue was fully considered in Westminster Hall on 22 September in a debate entitled, “Motor Insurance: Court Judgments”. That debate was expertly led by my right hon. Friend the Member for Chipping Barnet.

[Theresa Villiers]

That is very kind.

[Mr Bone]

That debate may be found in Hansard at column 172WH. I had intended to attend and speak in that debate, but unfortunately I was unable to do so because I had covid.

The purpose of the Bill is to remove the requirement for compulsory motor insurance for vehicles used exclusively on private land and for a wide range of vehicles that are not constructed for road use. As the Committee is no doubt aware, the law of the land is that motor vehicles must be insured for use on roads and other public land. That common-sense interpretation has been in place for a long time, and certainly since the Road Traffic Act 1988 established it in law.

On 4 September 2014, in its ruling on the case of Vnuk, the Court of Justice of the European Union extended a requirement for compulsory third-party motor insurance beyond the requirements of the law of Great Britain per the 1988 Act. That interpretation was never intended by Parliament, but if the status quo continues, the Vnuk interpretation of the European directive will be in force in our country. The Committee may ask why that is. When we left the European Union, all European directives became what is known as “retained law”. The Vnuk interpretation will put ordinary people in breach of the law for not having motor insurance for vehicles used exclusively on private land. It would also extend to the ridiculous situation of compulsory insurance for ride-on lawnmowers.

--- Later in debate ---

[Mr Bone]

I was going to deal with that, but I will answer the specifics. The right hon. Gentleman is quite right that the EU is changing the directive so that it applies differently in the EU, but it is not changing it in the same way as we propose to do. I will deal with the issue later.

The Bill does not seek to invent new policy, nor would it limit the Government or Parliament in changing insurance regulations for motor vehicles in future. The Bill would simply restore the interpretation of the law that was intended by Parliament and was believed to be correct by the Government, lawyers, the motor insurance industry and motorists prior to the Vnuk judgment.

It should be noted that the Vnuk judgment has led the European Union to seek to revise the European directive, although it is unlikely to do so in the same way as we propose in the Bill. I argue that, instead of waiting for the European Union bureaucracy to change its ruling, we can do so now, here, in this Parliament. The Bill is therefore an important step in realising the benefits of our decision to leave the European Union.

The Bill would end any associated liability for insurance claims against the Motor Insurers’ Bureau for the cost of accidents on private land where motor insurance is not held. As things stand, the cost of such claims would have to be accounted for within the Motor Insurers’ Bureau charging levy, thus passing on the cost to the motor insurers, who in turn would pass it on to the consumers through insurance premiums—the very point made by my right hon. Friend the Member for East Yorkshire.

[Theresa Villiers]

I note that, under clause 2, the Bill does not apply in Northern Ireland. Will consumers—drivers—in Northern Ireland therefore face that hike in insurance bills that we are trying to prevent in England, Scotland and Wales?

[Mr Bone]

My right hon. Friend draws attention to something that I will refer to later in my speech. When she hears what I have to say, she will see why in the end that will not be the case.

The significance of this measure is seen in the Government Actuary’s estimate that the increase in premiums to extend coverage following the Vnuk judgment would be about £50 for the average motor car policyholder. The Bill will therefore save the average policyholder unnecessarily increased insurance premiums in already difficult economic times. The cost of living is rising and the Bill is an opportunity to keep pounds in people’s pockets.

You have kindly agreed that clauses 1 and 2 may be debated together, Ms Ali. Clause 1 would insert into the Road Traffic Act 1988 new section 156A, “Retained EU law relating to compulsory insurance”. Subsection (1) limits the insurance obligation under article 3 of the 2009 motor insurance directive to vehicles used on roads and other public places, and to a motor vehicle defined as a mechanically propelled vehicle intended, or adapted, for use on the roads. In effect, it removes the Vnuk interpretation as it applies to the use of vehicles in Great Britain.

Subsection (2) clarifies that the Bill does not affect the provisions requiring insurance policies to include the cover required by the law applicable in the territory where the vehicle is used, or the law applicable where it is normally based when that cover is higher. That means that the liability imposed by the Vnuk interpretation will remain in place for insurance policies covering vehicles in use in EU member states and Northern Ireland.

Subsection (3) concerns the removal of section 4 rights created in the 2008 Lewis v. Tindale case, which found that the interpretation of the 2009 directive in the Vnuk judgment could be enforced directly against the Motor Insurers’ Bureau. The Lewis decision means that the Motor Insurers’ Bureau’s liability for an insurance claim extends beyond the scope of the obligations of the Road Traffic Act and applies to accidents on private land and to vehicles not constructed for road use. Subsection (3) brings an end to the relevant section 4 right to compensation from the Motor Insurers’ Bureau except in the case of motor vehicles on roads or other public places, as defined by the Road Traffic Act.

Northern Ireland

Debate between Peter Bone and Theresa Villiers

Tuesday 15th September 2015 Commons Chamber

[Mrs Villiers]

The hon. Gentleman is right to raise matters relating to HMRC and the National Crime Agency, as well as law enforcement bodies south of the border. They all have a hugely important part to play in tackling organised crime, criminality and cross-border crime, and I know that they are making every possible effort. I will engage with my colleagues across government who have responsibility for such bodies to see whether we can do more to ensure that we do everything we can to combat criminality and cross-border crime.

[Mr Peter Bone (Wellingborough) (Con)]

I thank the excellent Secretary of State for coming back to the Commons to update us. I am not sure about the timescale in relation to what is undoubtedly a crisis. Are we talking about having to resolve it within weeks or within months? If it has to be done within weeks, will she undertake to request a recall of Parliament during the conference recess, if necessary?

Northern Ireland: Political Situation

Debate between Peter Bone and Theresa Villiers

Tuesday 8th September 2015 Commons Chamber

[Mrs Villiers]

On criminality, I have set out the Chief Constable’s position, which I share: individual members of the Provisional IRA are involved in criminality for personal gain and to pursue personal agendas. I have discussed this matter with the Chief Constable on a number of occasions, and his view is not that there is organisational involvement in criminality, save of course for the fact that existence involves criminal conduct, because it is a proscribed organisation.

On arrests, the Chief Constable has indicated that he wants a better clear-up rate on paramilitary beatings. They cause huge concern and often have fatal consequences, and it is utterly unacceptable for organisations to seek to take the law into their own hands. On arrests in South Armagh, I can assure the right hon. Gentleman that the PSNI, HMRC and their various security partners are working very hard to bring to justice anyone responsible for criminality, be it in South Armagh or in the rest of Northern Ireland. Indeed they are working with their partners to tackle those who seek to exploit the border and engage in criminal conduct south of the border, too.

[Mr Peter Bone (Wellingborough) (Con)]

The politicians from Northern Ireland are some of the most courageous politicians we have, and they have worked hard for years. It is good to see the Secretary of State at the Dispatch Box, but it is even better when she is not at the Dispatch Box, because that means things are going well. Having a boring Secretary of State is rather useful, so it is sad that she has had to come to make this statement today. I wish to ask about the specific issue of welfare reform. Judging by the timetable she mentioned earlier, we could expect, if it is necessary, that this legislation will come back almost in the first week after the next recess. May I ask that we have enough time to scrutinise it, if it does come back, because there has been a tendency in the past to rush Northern Ireland legislation through quickly?

Oral Answers to Questions

Debate between Peter Bone and Theresa Villiers

Wednesday 5th June 2013 Commons Chamber

[Mrs Villiers]

I can give the hon. Gentleman that assurance. We are very supportive of a PEACE IV programme and were delighted that funding for it was included in the multi-annual financial framework to the tune of €150 million. We hope that we might be able to provide a top-up for that fund from our territorial cohesion allocation and we hope that it will focus on those key shared society projects that are so important in Northern Ireland.

[Mr Peter Bone (Wellingborough) (Con)]

That was rather a strange question and I would have hoped that the Secretary of State would have said very little in reply, as surely the people who have helped the peace process are the people of Northern Ireland themselves led by courageous politicians from Northern Ireland, many of whom are sitting in this Chamber today.

[Mrs Villiers]

My hon. Friend is right; the real credit for the huge achievements in the political settlement in Northern Ireland goes to the political leadership of Northern Ireland and the courage its members showed. They received welcome support from around the world, but it was their achievement and we should give them the credit for it.

Rail (East Anglia)

Debate between Peter Bone and Theresa Villiers

Tuesday 3rd July 2012 Westminster Hall

[Mr Peter Bone (in the Chair)]

Order. On the point about loudly and clearly, it would help if the Minister faced forward, so that the microphone could pick up what she is saying.

[Mrs Villiers]

Thank you for that steer, Mr Bone.

Later this month, we will publish our high-level output specification, to cover what we want the rail industry to deliver in the 2014-to-2019 period. Some of the larger headline schemes are likely to be directly mentioned in the statement, but most of the projects needed to deliver the general outputs that we will set in that statement will not be explicitly listed, so the July statement will not have all the answers on exactly how the benefits of rail improvements will be shared around the country. It will be followed by an industry process to decide which upgrades are needed to deliver the specified outputs, overseen by the Office of Rail Regulation. I assure hon. Members that careful consideration will be given to the points made about the Ely North junction and other improvements today. I should mention that this HLOS statement, like the last one, is likely to contain certain general funding pots that are to be made available over the five-year period, which could be used to support various different schemes around the country, including in East Anglia.

The forthcoming long franchise for Greater Anglia will be important in answering the questions we have heard today. We are granting a longer, more flexible franchise, because we believe that that will give the train operator a stronger incentive to invest in the improvements passengers want, including better trains and stations. We expect the next Greater Anglia franchise to start in the summer of 2014, and to last for up to 15 years. Our reforms to franchising put passenger satisfaction and service quality at the heart of the outputs that we require train operators to deliver. We will work closely with bidders and Network Rail to see how we can maximise the opportunity to integrate decision making more effectively between track and train management—that is another aspiration in the prospectus—and we will also require the next franchisee to introduce ITSO smart ticketing across the franchise.

--- Later in debate ---

[Mrs Villiers]

I am afraid I do not have time; I have only a couple of minutes left.

As for aspirations such as “Norwich in 90”—a campaign for that has been led by my hon. Friend the Member for Norwich North (Miss Smith)—it is too early to say what the franchise will specify for the train service between London and Norwich. However, in making such decisions we will need to take into account the interests of all the communities on the line, and those who live in intermediate destinations such as Chelmsford and Colchester. Whatever train service we adopt, we shall encourage bidders to put together affordable proposals for improved journey times and a better customer experience.

We did some work on options for Norwich to London before letting the short franchise, and that suggested that spending about £10 million to £15 million on new locomotives and refurbishing existing passenger vehicles would make it possible to save about seven minutes on most trains, and that could be funded in a 15-year franchise from additional revenue. However, that is just one option. We hope that franchise bidders will devise alternative plans that either cost less or produce greater benefits for passengers.

One factor, of course, that bidders will have to take into account is the requirement to make modifications to rolling stock by 2020, to provide proper access for people with reduced mobility. In response to all hon. Members who talked about the state of the rolling stock—some of it is fairly elderly—let me say that there will be changes over the next few years because of the deadline. The decision on whether that will involve targeted improvements, full refurbishment, new rolling stock or a combination of all three lies in the future, but change will have to be made. In the meantime, Abellio is pressing ahead with a deep clean of rolling stock.

In conclusion—

[Mr Peter Bone (in the Chair)]

Order.

Oral Answers to Questions

Debate between Peter Bone and Theresa Villiers

Thursday 28th June 2012 Commons Chamber

[Mrs Villiers]

I welcome my hon. Friend’s interest in this issue, and I have looked at it. The reality, however, is that double-decker trains that were run in the past by British Rail were claustrophobic, it took a long time for passengers to get on and off, and they deployed the sort of slam-door stock that we have tried to phase out. The shape of the UK rail network, the size of the bridges, the distance between rail tracks and the distance between the tracks and the platform mean that we cannot run the large double-decker trains that work in Europe. I am afraid that there are much more cost-effective ways to expand capacity, with longer trains and more frequent services, which is what the Government are doing.

[Mr Peter Bone (Wellingborough) (Con)]

14. What her policy is on the issuing of renewal notices for driving licences.