Plug-in Vehicles

(Limited Text - Ministerial Extracts only)

Thursday 25th April 2013 Westminster Hall

[The Parliamentary Under-Secretary of State for Transport (Norman Baker)]

First, I congratulate the hon. Member for Liverpool, Riverside (Mrs Ellman), the Chair of the Transport Committee, on securing this debate and on the way that she presented her case. I will do my best to respond to the points that have been made, but without causing those interested in road safety to be here for a fruitless exercise.

I also thank other Members who have contributed to the debate, especially my hon. Friends the Members for South West Bedfordshire (Andrew Selous) and for Milton Keynes South (Iain Stewart). The hon. Member for South West Bedfordshire in particular has been a strong advocate of electric vehicles ever since I have been a Minister and no doubt for a long time before that.

Let me be quite clear that the Government is fully behind the drive towards low-carbon vehicles, both because it is environmentally sensible—in terms of cutting our carbon emissions—and because it represents a significant opportunity for British industry and British jobs to get ahead. I assure all Members that we are focused on that drive. There is close work between the Department for Transport, the Department for Business, Innovation and Skills and the Treasury. The Chair of the Select Committee rightly referred to the measures taken in the recent Budget, which are a good example of how Departments work together for a common purpose, and send long-term signals that this is where we want to go in terms of our transport objectives. As always, I will say at this point that creating growth and cutting carbon are two sides of the same coin; the commitment that we have made as a Government to the roll-out of electric and low-carbon vehicles is a precise example of that.

We are making significant progress. The 2011 Carbon Plan laid out how the Government intends to tackle rising greenhouse gas emissions, and new car emissions are outperforming the progress that was expected. We are on track to meet the 2020 indicator target of 95 grams of carbon dioxide per kilometre. As Members will know, there is also a 2020 target in place for vans, which is 147 grams of CO₂ per kilometre. I am reasonably confident that that target will also be met.

Stricter emissions targets are stimulating the shift to ultra-low emission vehicles, as well as improving the performance of standard, traditional or normal—if we can call them “normal”—vehicles. We are determined to create the right conditions and infrastructure for the development of an early market for ULEVs. We have committed £400 million so far in this Parliament to that end. This has resulted in the provision of more than 4,000 charge points nationwide, through the eight plugged-in places, with 70% of those being publicly accessible. I am delighted that the private sector has responded with its own charge points. We are now seeing a huge increase in the numbers available to the public at large.

[Andrew Selous]

I was surprised to hear the contribution from the Opposition Benches just now about there being no charging points in Manchester, one of our great northern cities. Will the Minister say whether that is because of the Government or because of Manchester, or are there plans to change that?

--- Later in debate ---

[Norman Baker]

That information is incorrect. There are 29 charge points installed to date in Manchester and 58 are to be installed later this year. I am grateful to my hon. Friend for allowing me to put that correction on the record.

As has been mentioned, the plug-in car grant was launched in 2011 and extended to vans in 2012. To the end of March, we have received almost 4,000 claims for these grants. We hear some doom-mongers in the press in particular, and one or two in Parliament, who suggest that this is somehow a terrible result. It is not. A graph can be plotted for any new product, for example, a DVD—or, in the past, video—recorder, showing what happens when a new product is put on the market. There is naturally a slow upturn, leading to a sharp increase. We are perfectly content that the roll-out of electric vehicles is not dissimilar to that of any other innovative product launched in the past.

I agree that we need to do what we can to encourage the market for such vehicles. I agree with the Chair of the Committee that it is important to identify the potential for fleet buyers. We are doing that, not least through our work with the Energy Saving Trust, with which, as Minister, I agree a programme of work each year. One of its clear targets is to encourage the take-up by fleet purchasers of low-carbon vehicles. That is one way in which we will stimulate the market. Doing that will bring down the unit cost and will help, generally, to increase the number of cars that are sold.

[Andrew Selous]

Some of my constituents work in the Luton van factory, making the excellent, award-winning Vauxhall Vivaro van. I have often spoken to Vauxhall about whether it has any plans to bring in an electric vehicle. Will the Minister update us on what recent conversations he has had with UK commercial vehicle manufacturers about the potential for making electric commercial vehicles here in the UK?

[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.