Sustainable Aviation Fuel Bill

Debate between Lord Berkeley and Lord Moylan

Committee stage
Wednesday 10th December 2025 Lords Chamber

[Lord Moylan (Con)]

My Lords, for the convenience of the Committee, I rise to move Amendment 7 in the name of my noble friend Lord Grayling. While I am on my feet, I congratulate the noble Earl, Lord Russell, on his demotion to a mere barony. I assure him that it will pass, and his family will be able to resume their Earl-like status, I hope for many generations to come.

I wish to speak to my Amendment 11 in this group. I will try to put this in language that I understand—that is, fairly simple language. The levy has to be allocated. If the contracting party has to make payments to the producers of SAF, it will fund this by a levy, and the levy will be applied high up the supply chain; it will be applied to the producers of fuel. The people who produce aviation fuel will be adding a certain amount of SAF to their kerosene—an increasing amount each year—before then selling it to the airlines. As I understand it, that is the mechanism.

The question is: among the competing producers of aviation fuel, how is the levy to be allocated from one period to the next? I will assume for the sake of simplicity that the allocation period is a year. There is no necessity that it should be a year—it could be done six-monthly or monthly—but the Minister can say whether the Government have a clear intention about that.

My understanding is that the Bill envisages that the allocation will be based on market share. Market share can be measured only in retrospect. You can know what a company’s market share was last year or in the last six months; you will not necessarily know what its market share will be for the year to come. But, of course, companies are selling aviation fuel in the year in which they are acquiring market share, so they will not know what their levy is until the end of the year, or period, in which the levy is allocated to them, according to their market share. It will be impossible for them to have a clear notion of what they should be adding to the price of the fuel to compensate themselves for the levy. It is envisaged that they should compensate themselves for the levy through adding to the price of the fuel and selling it on, which is how the airlines and ultimately the passengers pick up the cost.

This is presented by the industry—to me, at least, and maybe to other noble Lords —as a very serious practical difficulty. The tendency will be to overcompensate and add more to the price of fuel than is strictly necessary to cover a levy which companies can only vaguely guess at. I accept that their market share is unlikely to jump wildly from one year to another. That does not happen in mature businesses; I do appreciate that. But the levy is quite sensitive even to modest adjustments in market share from one year to another. To get an accurate price to pass on to the customer, relying on retrospective market share is simply not going to cut it and the result may well be that customers end up being overcharged.

It would be better if the counterparty were able to calculate the levy on a transparent pence-per-litre basis. Another point of capital importance is that this could then be added to invoices so that anyone buying aviation fuel—which would normally be airlines, of course—would see clearly on their invoice how much had been added in respect of the levy. There is a suspicion in the industry, which I am sure the Minister wants to dispel, that the Government would rather obscure the additional cost of the levy, and that a system whereby it was written plainly on the face of an invoice would be unwelcome to them.

It would be useful if the Minister were to dispel that view, but I will leave aside that issue. Even if it were not a consideration, there is the important practical consideration of how this will be calculated by companies which will not know what their levy is going to be. This is an extremely serious issue about the implementability of the Bill. It is bound to come back on Report, because the Bill will not work unless this is sorted out; at least, it will not work in the way that the Government intend.

With that, I recommend my Amendment 11. I will be interested to hear what the Minister has to say about it.

[Lord Berkeley (Lab)]

My Lords, I will speak mainly to my noble friend the Minister’s Amendment 20. This is perhaps an odd order in which to speak on these things, but it does enable my noble friend to respond to me after I have spoken rather than before; I am sure that he would welcome that.

I want to talk about the relationship between sustainable aviation fuel and the production of renewable liquid fuels that could be used in home heating. I raised this at Second Reading and highlighted what I thought was a key point. The production of sustainable aviation fuel, particularly through the HEFA process, generates hydro-treated vegetable oil—HVO—as a by-product. In fact, HVO accounts for around 30% of the output—a significant quantity, I believe.

In the consultation on alternative heating solutions published a couple of weeks ago, the Government rightly acknowledged the role that HVO could play in decarbonising off-grid homes. I declare that my home is off-grid and relies on oil. Indeed, the Government highlighted that it would be the most cost-effective option for consumers of all the options considered. However, the consultation still questioned the feedstock availability of the fuel. What really pleased me was that, in the last few days, a Written Answer has been given to a Member of Parliament in the other place. It states:

“As of the 1^st of January 2025, a market for low carbon fuels for use in aviation and road transport has been supported under two separate schemes”—


the SAF and the RTFO. It continues by saying that targets under both these mandates

“are set considering global availability of feedstocks and competing demands between transport modes and across sectors of the economy”.

It basically says that there is enough material for both aviation and home heating. I think that is a major step forward.

When my noble friend comes to discuss his Amendment 20, I hope he will include a consultation with me, a few colleagues and our noble friend Lord Whitehead, the Minister for Energy Security, to discuss the significant benefits of working together for these two uses given that we have this Bill and a DESNZ consultation. I hope that this is just the right time to have such a discussion because it is a sensible strategic step towards meeting our decarbonisation goals.

Bus Services (No. 2) Bill [HL]

Debate between Lord Berkeley and Lord Moylan

3rd reading
Tuesday 29th April 2025 Lords Chamber

[Lord Moylan (Con)]

My Lords, I thank the Minister’s private office, the Bill team and the other civil servants involved in the Bill, who have dealt with the Official Opposition with promptness, courtesy and responsiveness in an exemplary way. I also thank the Minister for his openness and engagement with the Opposition during the Bill. That contributed greatly to its swift and efficient passage through Committee. The Minister sets an example that many of his colleagues on the Front Bench could follow in relation to transparency, engagement and so forth, which could help with the dispatch of our business in your Lordships’ House. I thank the Opposition Whips team, in particular Abid Hussain and Henry Mitson. I express particular thanks to my Whip throughout all this, my noble friend Lord Effingham.

I am trying to be positive when I say that this is not the worst Bill introduced by the Government so far, but none the less it remains a pretty poor Bill. It does damage and removes private entrepreneurialism from the bus sector, where, as we know, private enterprise and the spirit of private enterprise are the only keys to economic growth. It is here primarily to gratify the unions and certain local authorities and not to do very much indeed for passengers. Most importantly, it gives powers to local authorities that they are neither equipped nor funded to exercise. To that extent it is, as I have said earlier, a somewhat bogus Bill.

We have improved the Bill in your Lordships’ House. We have added a purpose clause so that we know what it is meant to be about and what standard we can hold the Government to. We have ventilated further the £2 bus cap and what the consequences are of removing it, which is a further amendment that passed. We have also brought into the Bill the very sensitive issue of special educational needs transport and the effects that the reduction in the threshold for national insurance contributions has on that sector and its survival—which is so important. As I say, that is now part of the Bill as it goes to the other place.

We have removed unnecessary language—dangerous language—about what was expected from bus drivers in dealing with crime. As the noble Baroness, Lady Jones of Moulsecoomb, has said, we have also seen amendments to review services to villages, which we were glad to support. The noble Lord, Lord Hampton, has introduced an amendment which focuses on improving the overall safety of buses and the way in which bus services operate. The amendment from the noble Lord, Lord Woodley, sadly not in his place—as indeed he was not when the amendment was moved on his behalf by my noble friend Lord Moynihan—has added important protections to the Bill in relation to violence against women and girls.

Finally, it is worth noting the flanking action by my noble friend Lord Holmes of Richmond and the noble Lord, Lord Blunkett, which saw improvements made to the Bill in relation to floating bus stops, the back of which I think we would all like to see. So, it leaves your Lordships’ House a better Bill.

The Minister said something about the Bill coming back. I see no reason for it to come back. All those amendments are very worth while, and I hope that the Government will embrace them in the other place and simply move on.

[Lord Berkeley (Lab)]

My Lords, I add my voice to the many noble Lords who have thanked my noble friend the Minister. It is his first Bill. He is a real expert on buses and transport generally, and the House owes him a debt of gratitude for the way he has dealt with the Bill. We have made changes, as other noble Lords have said. It has been a very friendly and useful debate. The key thing is for us all to try to encourage more people to use the buses, whether that is in the countryside or in towns. That is the key; the Bill will go a long way to encouraging people to do that.

Bus Services (No. 2) Bill [HL]

Debate between Lord Berkeley and Lord Moylan

Committee stage
Tuesday 28th January 2025 Grand Committee

[Lord Berkeley (Lab)]

My Lords, briefly, in looking at Amendment 1 and hearing the speeches on it, especially from the noble Lord who proposed it, I ask: what is the point of this amendment? It seems to me to be motherhood and apple pie and nothing much else. You can interpret the phrase “performance and quality” however you want—no doubt many noble Lords will link that phrase to some amendments that they will move or speak to later—but I really do not see it. Here is a Bill to improve passenger services and quality, clearly, but the noble Lord wishes to put in an amendment: Amendment 1. We will probably spend half an hour talking about it, but I hope that my noble friend the Minister has an answer as to why he does or does not like it.

[Lord Moylan (Con)]

My Lords, I was not going to speak on this group after my noble friend Lord Effingham spoke, but I am prompted to do so by an earlier intervention.

It is very important that, when you make a large change, as is proposed here—the Government will claim that this is a significant change, I think, and rightly so—you are clear about what you are trying to achieve. We might assume that everyone wants better buses and so ask why there is a need to say it, but you need to be clear about what you are trying to achieve. Of course everyone wants better buses, but what actually constitutes better buses? When the railways were nationalised, everybody wanted better railways. They did not necessarily imagine that, in the 1960s, that would involve slashing nearly all the branch lines in the country and making a dramatic change to the way in which the railways operated by cutting them back.

I am in some sense trying to help the noble Lord, Lord Berkeley, with his question on the purpose of the amendment. There is also a further question: if you have an objective, who is to be held to account for that objective? This seeks to hold the Secretary of State firmly to account and put him at the centre of the chain of being responsible for this Bill.

It seems to me that there is nothing else in the text of the Bill that explicitly puts passengers, passenger needs and the quality of the service they receive at its heart. I think that there would be great benefit in doing so. We know that the Government and local transport authorities are responsible to multiple stakeholders—not only the users of their services but their workers, trade unions, local electors and so on. They have to balance the large number of needs and demands on them. The amendment says that the requirements of passengers come ahead of those others and that the Secretary of State would be held accountable if the Bill did not work out in improving passenger services. I find it difficult to see, first, why the noble Lord, Lord Berkeley, has difficulty understanding that point and, secondly and perhaps more importantly, why the Minister, should he be moved to resist this amendment, would want to do so.

--- Later in debate ---

[Lord Berkeley (Lab)]

My Lords, just before the Minister responds, several noble Lords have talked about the bus service in Cornwall, saying how wonderful it is. As many noble Lords know, I live there and I often use the buses. There is nothing particularly special about a service that runs on time, publishes timetables and has bus stops that work. They have managed to persuade somebody—I think the Department of Transport—to enable them to finance a group of double-deck buses for the trunk routes. They are very comfortable and even have conference facilities on the top deck, with tables and things. It is still working very well. I think all that was needed was some officials in Cornwall Council who knew what they were doing, led by a good friend of mine, called Nigel Blackler. He managed to persuade the Government and Ministers at the time that it was a good thing—as Cornwall is geographically long and thin with one railway down the middle and a motorway down the middle and lots of others. It is quite possible to do; it has not cost them an arm and a leg and it is very popular. Why not carry on doing it?

[Lord Moylan (Con)]

May I ask the noble Lord, briefly, if he believes that the whole success in Cornwall depends on a few people knowing what they are doing and being professional about it—I am sure he is right, he knows his area—would he not want to seek from the Minister the sort of assurances that I am looking for? That is that officers in other local transport authorities that adopt franchising are seen to have similar skills and abilities before they are allowed to do so?

[Lord Berkeley (Lab)]

If am grateful to the noble Lord. I think it was probably at Second Reading, or sometime, that we discussed the difference in the quality of local authority management between Dorset and Hampshire or somewhere there. It is down to the local authority to make sure that they have the right people. I am sure Ministers will be very keen to ensure that they do have the right people, because otherwise you will get what I found in Dorset. The train goes every hour and stops at a station called Sherborne and, interestingly, the connecting bus departs five minutes before the train arrives. That is just the kind of thing we do not want, but I hope the local authorities will be sensible enough to learn from some of these mistakes.

Vehicle Emissions Trading Schemes (Amendment) Order 2024

Debate between Lord Berkeley and Lord Moylan

Tuesday 29th October 2024 Lords Chamber

[Lord Berkeley (Lab)]

My Lords, I congratulate my noble friend on his short introduction to this draft order. It is 14 pages of gobbledygook, mostly caused by Brexit and the inability of legislation in Northern Ireland to keep up with the rest of the country. I am sure that will not go on in future. Will the Minister say whether it matters where the affected vehicles are manufactured or stabled? I can see that some people will try to take advantage of whatever benefits there are on one side or the other to move vehicles across the water or to somewhere else. The sooner we have one UK-wide standard for things like that, the better.

[Lord Moylan (Con)]

My Lords, talking of strange verbs, I was always struck, when I was involved with Transport for London, that on London Underground there is the verb “to non-stop”, as in, “This train is non-stopping at this station”. I suppose that there might have been a time when I could have done something to eradicate it, but I never made the effort and so no doubt it will continue to flourish.

[Lord Berkeley (Lab)]

Does the noble Lord also support the verb “to platform”?

[Lord Moylan (Con)]

If I were to take that question, this could be a very long intervention, so perhaps the noble Lord will forgive me if I move more directly to the instrument itself. As the Minister has explained, it essentially does two things: first, it corrects some errors and technical problems that exist in the legislation—the statutory instrument—that was passed last year; it is good to see errors corrected. Secondly, it extends the vehicle emissions trading scheme to Northern Ireland, which, as I understand it, is being done with the support, and at the wish, of the Northern Ireland Assembly. As such, these Benches have no objection to raise to the approval of this instrument.

Procurement Bill [HL]

Debate between Lord Berkeley and Lord Moylan

Committee stage
Monday 4th July 2022 Grand Committee

[Lord Berkeley (Lab)]

I am grateful to the noble Lord for expanding fully on these amendments but in the case of some of the categories in Schedule 4, there is no regulator with the power to appoint companies to do things. Ports and airports come to mind; the Government will probably do those. Are we happy that the Government can do that without any sort of regulatory oversight?

[Lord Moylan (Con)]

Since that is technically an interruption to my speech—

[Lord Berkeley (Lab)]

I am sorry.

[Lord Moylan (Con)]

No, I am delighted. It adds much illumination.