(11 years, 4 months ago)
Lords ChamberMy Lords, the noble Lord is right that the tunnel-boring machines were not made in the UK. Each one costs about £10 million, which is a relatively small proportion of the overall project. UK businesses have benefited from the award of 97% of the contracts in the Crossrail supply chain, with 58% of contracts awarded to SMEs and 43% awarded beyond London and the south-east.
My Lords, has the noble Earl’s department given any thought to whether Crossrail ought to be renamed, perhaps in honour of Her Majesty the Queen after 60 years of loyal service on the Throne?
My Lords, this is an issue for the Mayor, but it is a very interesting idea and something that we will consider. There are a number of examples of railway infrastructure being named after the monarch or royal events, such as the Victoria line, Victoria station and the Jubilee line.
(11 years, 4 months ago)
Lords ChamberMy Lords, on the noble Lord’s first question, the short answer is no. During the three years to 2012, the Treasury received £411 million and £450 million from the east coast and west coast rail franchises respectively. This is completely separate from the money that the DfT paid to Virgin Trains as part of the revenue-based risk-sharing mechanism, which by its nature is variable, so the statement that my right honourable friend made is factually accurate. The bottom line is that the plans that we have set out will drive improvements to rail services and put passengers at the heart of a revitalised rail franchising system. It is also important to remember that rail franchises are not directly comparable.
It was never intended for the east coast main line to remain in the public sector. Indeed, when the then Secretary of State, the noble Lord, Lord Adonis, explained in this House in July 2009 the decision to bring the line into public control, he said:
“I do not believe that it would be in the public interest for us to have a nationalised train operating company indefinitely”.—[Official Report, 1/7/09; col. 232.]
My Lords, I must declare an interest, as the House of Lords pays an enormous amount of money to get me travelling from Berwick-upon-Tweed to here, and, indeed, my family spends an awful lot of money on buying their tickets. Since the east coast service is operating remarkably successfully and is working well, why is there this desperate need and hurry to denationalise it?
My Lords, many noble Lords have privately approached me and said how well the east coast franchise is working under DOR. However, we need a longer-term investment plan for the future. The Brown review finds that franchising is a fundamentally sound approach for securing the passenger railway services on which so many people rely. The Government remain committed to benefiting from private sector innovation and operational experience in their railways.
(11 years, 7 months ago)
Lords ChamberMy Lords, I can assure the noble Baroness that ministerial meetings will continue. I am not sure that it would be helpful for me to have meetings because I do not think that I can add anything to the work that my honourable friend Norman Baker undertakes. However, it may be helpful if I explain the problem to the House. The noble Baroness and I desire the same end state: the reduction of carbon emissions. The problem, however, is that if we increase the level of obligation at the moment, there may be undesirable, indirect land-use change problems right around the world, and that could increase the level of carbon emissions. It certainly would not reduce them to the extent that we would like. We have the same objectives as the noble Baroness—I assure her of that—and we still have the ability to get to where we want to in 2020, but we have to be mindful of indirect land-use change problems.
My Lords, does the noble Earl not agree that this exciting new biofuels industry is greatly hampered by the fact that four different government departments are involved in it? I declare an interest as the president of the British Association of Biofuels and Oils.
My Lords, I accept that several government departments are involved; however, officials do talk to each other. The Secretary of State, Ed Davey, was representing the UK in Europe, trying to find a solution to the ILUC problems.
(11 years, 10 months ago)
Lords ChamberMy Lords, one of the concerns I have identified in private conversations with the noble Lord is the possibility of distorting the market in UCO and biodiesel by importations of ethanol. I will happily raise that with my right honourable friend the Secretary of State.
My Lords, as one of the instigators of the RTFO, is it not a scandal that our commitment is met by only 11% from home-produced fuel in this country? I must declare an interest as president of the transport division of the Renewable Energy Association.
My Lords, I understand the point that the noble Lord is making but we are bound by the WTO trade rules and EU state aid rules.
(12 years ago)
Lords ChamberMy Lords, although I agree with my noble friend’s analysis, he needs to understand that these fuels are also traded internationally in large quantities.
My Lords, does the noble Earl agree that, in reality, the RTFO is in a complete shambles, most especially because it is answerable to four different government departments? I ought perhaps to declare an interest: along with the late Lord Carter and others, I was responsible for persuading the previous Labour Government to implement the RTFO.
My Lords, several government departments may be involved but my honourable friend Mr Norman Baker is in charge of the policy. It is complicated, but I believe that it is a good and efficient policy that provides biofuels in a most efficient way.
(12 years, 11 months ago)
Grand CommitteeMy Lords, I will write in detail to the noble Lord on the issue of used cooking oil and see if I can draft a letter that will meet his concerns. At the moment I am convinced that this is a sensible policy.
My Lords, the point made by the noble Lord, Lord Bradshaw, emphasises what a complex issue this is, because it goes back to the Treasury. When the noble Earl writes to the noble Lord, Lord Bradshaw, perhaps he could kindly copy us all in so we can be kept abreast of the situation.
My Lords, it is standard procedure to write to all noble Lords who have taken part in any of these debates.
The noble Lord, Lord Reay, asked me several interesting questions. First, he asked if there were any suggestions that adding biofuel to fossil fuel reduces fuel efficiency. Yes, biofuel is less energy-dense but we are blending only low volumes. He asked about the proportion of biofuels supplied today under the RTFO that comes from crops. The latest published figures indicate that two-thirds comes from crops. He also asked about the cost to the motorist to date, which has been between £300 million and £400 million per year at current market prices. He asked whether, after consulting on a number of options, we are keeping the buyout mechanism. The answer is yes. For those who are unfamiliar with the system, the buyout mechanism is in place to provide a safety valve that will protect both industry and the consumer from spikes in the cost of supplying biofuel. It will allow obligated suppliers to buy up part or all of their obligation, rather than meeting it by redeeming the RTFCs that are issued to those supplying sustainable biofuels. The cost of buying out is 30p per litre of fuel that the supplier would otherwise have been obligated to supply.
The noble Lord also asked about the efficiency and effectiveness of biofuels, and whether there were any problems. He will recall that I recently answered an Oral Question in the Chamber about ethanol and petrol, which can cause some problems. However, they are not insurmountable.
The noble Lord, Lord Grantchester, asked me what I would say in response to industry concerns that there has been inadequate time to prepare for this and that consultation on the RTFO guidance has been very brief. We have no intention of delaying transposition and implementation. The renewable energy directive was published in 2009 and set mandatory sustainability criteria for biofuels. The implementation of the criteria should not come as a surprise to industry. Those companies that have taken the opportunity to report on a voluntary basis and to establish a sustainable biofuel supply chain will be well placed to meet the requirements of an amended RTFO.
(13 years ago)
Lords ChamberMy Lords, I beg leave to ask the Question standing in my name on the Order Paper and, in so doing, declare that I am the unpaid president of the transport division of the Renewable Energy Association.
My Lords, in a recent consultation on the renewable energy directive, we proposed amendments to the renewable transport fuels obligation. These proposals included providing twice the financial support to waste-derived biofuels as will be provided to conventional biofuels through the award of two renewable transport certificates per litre of waste-derived fuel. Crop-derived biofuels will continue to receive one certificate per litre and biofuels that do not meet the required sustainability standards will receive no support.
My Lords, I thank the noble Earl for that lengthy reply. This is a very complex issue. I know for a fact that if the 20p per litre rebate is abolished, an enormous number of current users will revert to fossil fuels. Is this what the Government really want?
My Lords, Treasury Ministers confirmed at the 2011 Budget that the duty differential for biodiesel produced from used cooking oil will end on 31 March 2012, as was always intended. It is appropriate that support for waste-derived biofuels in transport will be provided through double rewards as part of the renewable transport fuels obligation. That, of course, has a sharper sustainability focus. By providing two renewable transport certificates per litre of waste-derived fuel, the UK is moving away from the guaranteed return of 20p provided by the duty differential for biodiesel produced from used cooking oil and moving towards an environment where the competitive market decides the price that will be awarded for each renewable transport fuel certificate. But each RTFC will still be worth around 20p.
(13 years, 1 month ago)
Lords ChamberMy Lords, we welcome all these suggestions. The mayor’s input and suggestions will be considered alongside the many other contributions to the debate about our future airport aviation policy.
My Lords, could the noble Earl try to persuade his colleagues in the Treasury to look again at this terrible problem of air passenger duty, which is one of the reasons that Heathrow has lost its premier slot in the world?
My Lords, the noble Lord will know that air passenger duty is under review. However, it is a matter for the Treasury, as well as the Department for Transport. We are giving it careful consideration and will make an announcement in due course.
(13 years, 9 months ago)
Lords ChamberMy noble friend makes an extremely important point. I confess that, like him, I have not yet read the White Paper in full. Whether I will ever read every page is doubtful. Local authorities will bid directly to the Department for Transport, but we have devised a system which is as simple as possible. There will initially be two tranches, and guidance about the application process is in the Printed Paper Office and online.
My Lords, I very much look forward to reading the White Paper. I am a resident of Scotland, and I have a particular worry relating to my part of Scotland, which I know does not come under the noble Earl’s jurisdiction. In northern England, a number of local authority-funded coaches travelling from X to Y and A to B are nearly always empty. I hope that the White Paper will look at this most carefully to make certain that we have a really good public transport system which will actually have people travelling on these buses.
My Lords, the noble Lord makes an interesting and important point. I have started to use a bus service from Alton to Bordon in Hampshire, and it always surprises me how very few people are in the bus, despite it being quite large. However, part of the policy is to allow more suitable vehicles to be used by a variety of schemes.
(13 years, 10 months ago)
Lords ChamberMy noble friend raised the interesting point of winter tyres. They are effective, but it is a personal choice and it would be peculiar for the Government to take any steps to mandate them. Suppliers of essential services in remote rural areas might want to consider stocking some vehicles with winter tyres, but it is entirely a matter for them. I suspect the capital cost of winter tyres rarely justifies the investment.
My Lords, will the noble Earl ask his ministerial colleagues to look very carefully at the question of winter fuel payments, particularly for the disabled and the elderly? What they are getting at the moment is pretty minimal, bearing in mind the incredibly low temperatures.
My Lords, I am sure that my ministerial colleagues are carefully considering whether the payments are at the right level, but it is not a matter for me to comment on.
(14 years ago)
Lords Chamber
To ask Her Majesty’s Government what steps they are taking to ensure that cyclists abide by the Highway Code.
My Lords, the Government support a combination of information, education, training and enforcement to ensure that cyclists abide by the Highway Code. The enforcement of cycling offences is a matter for individual chief officers of police. The hazards caused by cyclists who break road traffic laws are recognised by chief officers and action is taken where offences are detected. The Government support action taken by the police to deter and reduce the number of cycling offences.
My Lords, I thank the noble Earl for that slightly unexciting reply, but does he not agree that it is a scandal how remarkably few prosecutions are made against cyclists who do not adhere to the Highway Code—most especially driving on pavements?
My Lords, I entirely agree with the noble Lord. I know that all noble Lords are extremely concerned about that type of offending. It adversely affects noble Lords, because they tend to be a little bit older than the average member of the population.