Transport System: Failings

Lord Davies of Gower Excerpts

Thursday 25th April 2024 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Transport (Lord Davies of Gower) (Con)]

My Lords, I am very pleased to respond for the Government on this debate on the transport system, which I thank the noble Lord, Lord Snape, for tabling. I also thank noble Lords who have taken part for their insightful and wide-ranging points. I will do my best in the time allotted to me to address those in my response.

This country has a proud transport history, spanning great maritime successes, the birth of steam-powered engines and the creation of one of the safest road networks anywhere in the world. Our heritage inspires us to look forward. We continue to strive towards an excellent transport system that supports people and businesses, wherever they live and work.

We are not only managing the transport system we inherited but taking steps to make it fit for the future, seizing opportunities for transport to unleash economic growth and improve people’s lives. We are mending the potholes, making life easier for drivers and reforming our railways. We are capitalising on our world-leading research and innovation capabilities by legislating to make the UK one of the best places in the world to invest in, produce and use self-driving vehicles. We are giving local and regional leaders the powers and funding they need to deliver transport systems which get people and businesses moving across the country.

Naturally, there are forces that have had significant consequences on transport and those who use it. These include the Covid-19 pandemic, Russia’s illegal invasion of Ukraine and the historic high levels of inflation which have impacted economies across the globe. These challenges have left their mark on the ways in which people travel. They have also impacted the cost of building infrastructure and running services, but thanks to our interventions we are well on the road to recovery.

In the three years after the pandemic began, the Government provided more than £45 billion of operational funding to keep the railway running. Now, passenger numbers are back at 80% of pre-Covid levels. To tackle the cost of living crisis, we have capped bus fares at £2 and launched two “Great British Rail Sales”. We have cancelled planned inflation increases on fuel duty and, from 2022, temporarily cut the rate by 5p, saving the average car driver around £250 in total since then. We are supporting drivers through our plan for drivers and ensuring we can reach our net-zero goals in a proportionate and pragmatic way. Thanks to the difficult decisions we have made on HS2, we are now redirecting £36 billion of investment towards rail, roads and local transport as part of our Network North plans, allowing us to benefit more people in more places, more quickly.

This Government have the practical and long-term vision to improve and nurture the transport system in the future. Allow me to outline some of our plans in detail. On rail, we are acutely aware of the need to bring the railways into the 21st century. Vital to this is our ongoing work to upgrade the existing rail network, to improve rail operators’ performance and to make the railways more accessible to all. We have published a draft rail reform Bill and are pushing ahead with a range of non-legislative reform measures. We are continuing to deliver HS2 between London and the West Midlands, boosting economic growth, improving journey times and adding much-needed capacity on one of the UK’s most congested rail routes.

On trains, I noted this morning the announcement that Labour proposes an ideological nationalisation, with no detail beyond a soundbite and no response to how nationalisation will make a difference to things that people really care about: reliability and affordability. There was no real detail of what Labour proposes to do with the parts of the industry that are profitable, including the rolling stock operators and the open-access operators. The rolling stock operators have used private finance to fund 8,000 new carriages since 2010. The popular open-access operators have reconnected communities and given them direct services to London. Either Labour proposes to nationalise this part of the sector, or it is not serious about nationalisation and it is simply a fig leaf to appease their union paymasters.

All Labour’s current policy to nationalise passenger rail contracts will deliver is baking in some of the existing challenges, such as too much involvement from Whitehall in running the railways, taking on the parts of the sector that require greatest public subsidy, with no plan to grow passenger numbers—the only way to reduce subsidy. It also means that rail workers will become public sector workers, and so their pay rises will need to be in line with those of nurses and teachers, rather than in line with private sector wage growth. To quote the noble Lord, Lord Snape, we will indeed be “the laughing stock” of the western world.

We have set out a 30-point plan for drivers, bringing about smoother journeys and easier parking, stopping unfair enforcement and inconsiderate driving, and helping the transition to zero-emission driving. Spades are in the ground on our second road investment strategy, and we are preparing plans for the third road investment strategy.

At the local level, we are devolving powers and budgets away from central government through measures including the local transport fund, city region sustainable transport settlements, devolution deals and trailblazer settlements. This is giving leaders the funding and powers they need to get people and business moving. We are investing in a long-term sustainable future for buses, including more than £4.5 billion to support and improve bus services since March 2020. We are investing in active travel infrastructure, including the active travel fund and the second cycling and walking investment strategy.

We have set out a clear vision and ambitions for the future of the British maritime sector, focused on growing our economic impact, keeping people safe and protecting our environment. The UK SHORE programme alone is providing £206 million to accelerate the technology needed to decarbonise the domestic maritime sector.

We have established a strategic framework for aviation focused on innovation, sustainability and efficiency. Our updated airspace modernisation strategy will enable quicker, quieter and cleaner journeys, and increase UK airspace capacity. We have set a road map for how drones and novel electric aircraft can deliver better public services and green economic growth. In November last year, we saw the first ever transatlantic 100% sustainable aviation fuel flight by a commercial airliner, from Heathrow to New York, made possible with government funding.

Finally, on the environment, we have dedicated over £22 billion to help the UK meet its 2050 net-zero target, and we are ensuring that our transport system will be resilient to climate change. Network Rail alone will be investing around £2.4 billion in England and Wales over the next five years to improve resilience to extreme weather and climate change. However, these ambitious plans are not for government alone. We are working closely with the devolved Administrations to deliver a world-class transport system across the country. We engage closely with our friends across the world and with international bodies to deliver frameworks and standards, to share and contribute to best practice and research, and to drive forward global action on decarbonisation and the environment. We consult broadly and deeply with industry, civil society, academia and the general public to shape and deliver our plans.

With that, I turn my attention to points raised during the debate. Quite a lot of points were raised, and I will try to get though as many as I possibly can in the time left. The noble Lord, Lord Snape, talked about rail performance in his opening speech. The department has been clear that the current performance of the railway is unacceptable. The industry needs to make significant improvement to deliver the punctual and reliable services that passengers and taxpayers deserve. That is why the department has regular high-level meetings on punctuality and reliability with both Network Rail and representatives of the train operators to hold rail partners to account. All private-sector operators have now transitioned over to National Rail contracts, which include a revenue-incentive mechanism, encouraging train operators to minimise cancellations and short formations unless absolutely necessary.

The noble Lord, Lord Snape, also referred to Hitachi. The department is holding intensive discussions with Hitachi to find a sustainable solution for train manufacturing at its Newton Aycliffe plant. Train operators are subject to procurement law as they operate under contracts directly awarded by the department. This is complex and difficult. There are no simple solutions, and any solution needs to be legally robust and sustainable for the long term.

The noble Lords, Lord Snape, Lord McLoughlin and Lord Liddle, talked about bus service cuts and ongoing support for the sector. The noble Lord, Lord Liddle, talked about the less well off using them; I can assure him that I use buses regularly. The Government have announced unprecedented funding for bus services, totalling over £4.5 billion since March 2020. This includes £2 billion to prevent reductions to bus services following the pandemic and over £1 billion allocated in 2022 to help local authorities deliver their bus service improvements.

The noble Lords, Lord Snape and Lord Liddle, talked about bus strategy. The aim of the national bus strategy is to make buses more frequent, more reliable, easier to understand and use, better co-ordinated and cheaper. The strategy required all local transport authorities to publish bus service improvement plans, setting out local plans for the changes in bus services that are needed, driven by what passengers and would-be passengers want.

The noble Lords, Lord Bourne and Lord Birt, talked about road investment. The Government are investing £24 billion from 2020 to 2025 to operate, maintain and enhance our strategic road network of motorways and major A roads. In the last four years we have completed 23 major enhancement schemes across all the English regions, including three on the A19 in the north-east and, only last month, the A585 Windy Harbour scheme in Lancashire. The road investment strategy 3 will build on the priorities and outcomes of the first two road periods, adjusting focus where necessary to tackle the next big priorities for improvement and achieve a long-term strategic vision for the network.

The noble Lord, Lord Bourne, talked about enabling economic growth. Growing the economy is a priority for the Government, and a secure, reliable, well-connected and integrated transport network is a vital tool for growth. It allows individuals to access more jobs, education, services and amenities, and allows firms to access wider labour pools and share knowledge and supply chains, boosting productivity in the long run.

The noble Lords, Lord Bourne and Lord Fowler, talked about rail industrial action. The industry is facing a serious financial challenge. Reform is essential to deliver a better railway for passengers. Since coming into office, the Transport Secretary and Rail Minister have met with the rail unions and industry to facilitate discussions, which have resulted in pay offers being accepted by the RMT, TSSA and Unite unions in exchange for negotiations on reform. ASLEF is now the only rail union that continues disruptive national-level strikes.

The noble Lord, Lord Faulkner, mentioned decarbonisation. The Government expect both electrification and alternative technologies to play a role in net zero by 2050. That is why my department has delivered more than 1,250 miles of electrification in Great Britain since 2010.

The noble Lord, Lord Faulkner, talked about rail reform. We are committed to rail reform and delivering improvements for customers ahead of legislation. We recently completed barcode ticketing for all national network stations and announced a 75% rail freight growth target by 2050. In line with Network North and wider stakeholder engagement, the Great British Railways transition team continues to develop the long-term strategy for rail. We need to ensure that the strategy reflects both the realities of the railways and the clear direction set by Network North.

The noble Lords, Lord Goddard of Stockport and Lord Liddle, talked about holding Avanti West Coast to account. The department takes performance very seriously and holds all franchised operators to account for the service they provide. As part of the national rail contract, Avanti West Coast has a series of challenging but achievable targets to meet, which the department monitors, and officials continue to closely monitor and review Avanti West Coast progress to a sustained recovery. The noble Lord, Lord Goddard, mentioned the Avanti West Coast rest day working agreement. On 13 March 2024, Avanti West Coast secured a 12-month rest day working agreement with ASLEF. The new agreement will support Avanti West Coast’s driver training programme as it transitions to its new Hitachi fleet over the coming months.

The noble Lords, Lord Campbell-Savours and Lord Berkeley, referred to rail fares, ticketing and retail. We have already made progress on fares reform, launching flexible season tickets in 2021, delivering on our commitment to extend single-leg pricing to the vast majority of LNER’s network, launching a trial of simpler fares on LNER, and announcing that we will extend contactless pay-as-you-go to an additional 53 stations in the south-east by spring this year.

The noble Viscount, Lord Hanworth, and the noble Lords, Lord Berkeley and Lord Whitty, talked about decarbonisation. This Government have done more than any other to promote walking and cycling, and we remain fully committed to the vision that half of all journeys in towns and cities are walked or cycled by 2030. Over £3 billion is projected to be invested in active travel up to 2025. Despite the challenging financial climate, since 1 June 2023 Active Travel England has played an important role as a statutory consultee within the planning system. The noble Viscount, Lord Hanworth, the noble Lord, Lord Whitty, and other noble Lords talked more on decarbonisation. The UK has decarbonised faster than any other major economy, more than halving emissions since 1990. Our credible, cross-cutting plan to decarbonise all transport is at the heart of our ambition.

On a point raised by the noble Viscount, Lord Hanworth, there are now more than 1 million battery electric cars on UK roads, which is evidence that more and more drivers are switching to electric vehicles. We continue to work with the industry via the automotive transformation fund to support the creation of an internationally competitive electric vehicle supply chain in the UK.

The noble Lord, Lord Holmes of Richmond, talked about access for all. The Access for All programme has provided accessible, step-free routes at more than 240 stations and small-scale improvements at around 1,500 more since 2006. As part of our recent Network North announcement, the Government confirmed that £350 million will be made available to improve accessibility at our train stations. On bus accessibility, we are requiring operators across Great Britain to provide audible and visible information on their services. Our new accessible information regulations will require almost every local service to provide audible and visible next stop announcements. The £4.65 million accessible information grant will help the smallest operators to comply. The department has driven change through its support for the Taxis and Private Hire Vehicles (Disabled Persons) Act 2022 and through updated best practice guidance for local licensing authorities, including on supporting an inclusive service. However, I note what the noble Lord said in relation to particular areas of London.

The noble Lord, Lord Holmes, also talked about technology performance. It is right that road users should expect high standards when it comes to managing and responding quickly to incidents on the motorways. National Highways has rolled out new stopped vehicle detection technology on “all lane running” smart motorways, which can detect a stationary vehicle and alert an operator who can close lanes and dispatch a traffic officer.

I was interested in what the noble Lord, Lord Murphy of Torfaen, said, particularly about Newport station—much of what he said existed under British Rail. However, as we know, it is now devolved to the Welsh Government and has been nationalised as Transport for Wales, so I am afraid that any comment on that should come from the Welsh Government. However, I will say that Transport for Wales last year was reported to have the worst customer satisfaction for train operators in the whole of the UK.

The noble Lord, Lord Whitty, talked about aviation and decarbonisation. The jet zero strategy sets out the Government’s approach to achieving net zero by 2050 in UK aviation. It focuses on the rapid development of technologies in a way that maintains the benefits of air travel while maximising the opportunities that decarbonisation brings for the UK.

The noble Lord, Lord Whitty, raised the issue of road safety. While the UK has some of the safest roads in the world, any death is a tragedy, which is why we continue working tirelessly to improve road safety for everyone.

The noble Lords, Lord Moylan and Lord Liddle, talked about rural transport. The Government recognise the importance of transport provision in rural areas and are committed to finding solutions that ensure viable and improved transport.

In a very well-informed speech, the noble Lord, Lord McLaughlin, talked about rail passenger numbers and revenue. All substantive financial risks of rail services sit with government. Between 2021 and 2022-23, the taxpayer provided funding of £45.9 billion for the operation of the rail industry—just over £1,500 per household. He also talked about the HS2/Network North decision. The HS2 programme accounted for over one-third of all the Government’s transport investments, doing little to improve the journeys that people make the most. That is why the Government cancelled phases 2a and 2b—the western leg—of HS2.

Noble Lords made many other points. I will quickly mention the Lower Thames Crossing, which the noble Lord, Lord McLoughlin, mentioned. As the scheme is a live planning application, there are sensitivities in what I can say and it would be inappropriate to say anything that could prejudice that process.

The noble Lord, Lord Stevens, mentioned general aviation, which was a refreshing change in the debate. The department actively supports GA in achieving key government objectives. I hear what he says and understand his concern regarding drones. There has been a CAA airspace review. The rules are well defined for the use of drones but I acknowledge his concern.

I have come to the end. I think there are one or two other contributions that should be responded to. I will do that in writing. I thank noble Lords for their attendance and their contributions.

Goods Vehicles (International Road Transport Permits and Haulage Within the EU) Regulations 2024

Lord Davies of Gower Excerpts

Tuesday 23rd April 2024 Lords Chamber

Moved by

[Lord Davies of Gower]

That the draft Regulations laid before the House on 4 March be approved. Considered in Grand Committee on 18 April.

Motion agreed.

Goods Vehicles (International Road Transport Permits and Haulage Within the EU) Regulations 2024

Lord Davies of Gower Excerpts

Thursday 18th April 2024 Grand Committee

Moved by

[Lord Davies of Gower]

That the Grand Committee do consider the Goods Vehicles (International Road Transport Permits and Haulage Within the EU) Regulations 2024.

[The Parliamentary Under-Secretary of State, Department for Transport (Lord Davies of Gower) (Con)]

My Lords, I beg to move that these regulations be considered. They have two main purposes. First, they implement fully some specialised provisions contained in the EU-UK Trade and Cooperation Agreement, which I will refer to, if I may, as the TCA, in relation to UK-based operators and drivers. These provisions are connected to declarations for most lorry drivers working for UK-based operators when they make journeys between two points in the European Union.

The TCA provisions had a go-live date in 2022. They have been implemented administratively in the UK already, through the glossing provision in the European Union (Future Relationship) Act 2020. These regulations add enforcement powers and increase legal certainty. The full implementation of these provisions is needed to ensure continued, reciprocal access for the movement of goods vehicles between the UK and EU.

Secondly, this instrument amends legislation governing the allocation of permits for the purposes of the transport of goods outside the United Kingdom. The UK has made several new or amended bilateral road transport agreements with countries outside the EU since the previous legislation in 2018. The 2018 regulations —specifically, the International Road Transport Permits (EU Exit) Regulations—also catered for a no-deal Brexit. This instrument revokes and replaces the 2018 regulations.

The background to this is that, at the beginning of February 2022, new requirements provided in the TCA between the UK and the EU came into force. These changes apply to the operators of goods vehicles and their drivers involved in the commercial transport of goods within the territory of the EU and within the UK. Direct journeys between the UK and EU, and vice versa, are outside these requirements. For example, a journey by a UK operator from London to Paris is exempt from these requirements, but a journey made by a UK operator between Paris and Nice is not exempt. Similarly, an EU operator travelling from Berlin to Newcastle is exempt, but an EU operator travelling between Newcastle and Manchester is not and a posting declaration would have to be made.

--- Later in debate ---

[Lord Tunnicliffe (Lab)]

My Lords, I also thank the Minister for his presentation of this SI. He added a certain overview, which is useful. I found myself in a difficult situation with this SI, both because it is complicated and because the normal excellent support I get from the staff in our office was overwhelmed by the fact that the member of staff was doing Rwanda, so I had to try to do it myself.

I set about by trying to understand the thing. I do not know whether it is my age, and that I am just slowing down, but I found it very complex. It was not helped by the fact that the format of the Explanatory Memorandum has been changed—much to my surprise, because I learned the old one and knew where to go. That took me a little while to recover from, but eventually I found that Morag Rethans was my contact. We made contact and she helped me, over quite a long phone conversation, to work through the various bits of the agreement. Yesterday morning, I understood all parts of the SI. I do not think I understood them all at the same time, and my understanding of them has certainly faded a bit in the past 24 hours. I always like the contributions of the noble Baroness, Lady Randerson, because she is so much more diligent than me and finds little corners in what has been happening.

In a sense, I was content to clarify my mind—the Minister may have to correct me on this—that this was a piece of domestic legislation which took the agreements that we have, particularly the TCA and agreements with other peripheral states, as a given. As far as I can see, there is nothing in this instrument that changes our formal relationship with the EU and those peripheral states. What it does is mend holes in our own regulations that make the interface with other states incomplete and messy. The solution is designed to ensure that UK domestic law fits with our international obligations. In particular, it gives an enforcement mechanism to ensure that its impact is uniform, both in the UK and reciprocally with visitors to the UK.

By the time I had made my limited progress in understanding, I could not actually see any particular flaws in the SI, per se. Thinking in macro terms, it would have been great if we had done it sooner, because the closer it had been to the completion of the TCA and so on, the more likely that it would have fitted together. However, that has passed—let us not worry about it.

The problem with this agreement is that we left the club, and the club did not like us leaving. The negotiations that took place with respect to this area—the noble Baroness, Lady Randerson, and I go back at least five or six years on this issue—left the problems relating to road transport at a disadvantage compared with where we would like to be. Unfortunately, the only way of getting to where we would like to be would have been to maintain membership of the European Union. Since we on these Benches accept that we are no longer a member, it is our responsibility to conclude agreements that smooth the relationship as far as possible. As far as I can see, that is what this instrument does.

I object in many ways to the £5 million in relation to the assessment—saying that you do not need a proper impact assessment. The beauty of a full impact assessment is that the person doing it has to look at other solutions and, by looking at them, we are at least in part reassured that what is proposed is the best solution, having been exposed to other possibilities. I do not see anywhere where there could have been a better solution but it would have been better to have had a full impact assessment, with the team working on it considering all the solutions before coming to this one. With those few comments, I am content.

Moving outside the brief, in a sense, and joining the noble Baroness, Lady Randerson, it seems to me that, compared with some of the fears we had way back before this was firmed up, a pretty practical situation has been developed—as I say, this is the UK end of it—and that the biggest damage is in what one might call the musicians and artists area. I would like an assurance from the Minister—this parallels the noble Baroness’s concern—on what, if anything, the Government are doing about that. Is this still a live issue? Can we have some assurance that it is being pursued because it seems to me that, for most tasks, the regulations that exist now are practical?

It seems that, in this area, however, it is a heavy burden. As I understand it, for larger operations, the problem is overcome by dual registration of specialist transporters and so on, but that area, which is so important to the UK economy, starts off with two or three blokes and their instruments in a Transit van. Previously, they could wander around the continent and so on. I know that that is what the Common Market is about and that we are not in it anymore; nevertheless, it is a considerable blow to emerging musicians and artists, so I hope that the Government might make some progress in that area.

[Lord Davies of Gower (Con)]

I thank noble Lords for their consideration of these draft regulations and their contributions. I will now attempt to respond to some—or all—of the specific points that were made.

These regulations are required to ensure that the UK continues to meet certain obligations of the EU-UK Trade and Cooperation Agreement, which enables ongoing market access to the EU for the UK haulage industry. Failure to legislate to fully implement posting requirements would risk challenge from the EU around a potential breach of the TCA, the key treaty for our ongoing trading relationships with the EU. The regulations assist the UK’s competent authorities to deal with operators who have refused to co-operate with foreign authorities. The UK’s competent authorities are the traffic commissioners, for Great Britain, and the Transport Regulation Unit, for Northern Ireland. The regulations increase the tools available to them and their ability to prevent attempts to evade the rule of law.

In 2023, the UK laid regulations that provided competent authorities with powers to enforce posting requirements related to EU operators working in the UK. It is important that the UK is seen as fair and implements the reciprocal provisions for UK operators, who are subject to the same requirements in the EU. Additionally, domestic legislation must be updated to reflect the progress of partnerships with countries outside the EU—including several new and amended bilateral road transport agreements, to which I alluded earlier, that have been signed since 2018. Although UK operators working abroad outside the agreements take a chance of facing enforcement abroad, by matching UK law to these agreements, the regulations demonstrate the UK’s commitment to honouring them fully.

I turn to the point made by the noble Baroness, Lady Randerson, and the noble Lord, Lord Tunnicliffe, about UK haulage access rights abroad. During the TCA negotiations, the UK proposed specific market access rights for specialist hauliers servicing tours for cultural events, arguing that the nature of their work was specialist and different from general haulage activities. UK negotiators attempted to differentiate cabotage arrangements from touring. They sought to permit the carriage of goods entering the EU from the UK being unloaded and reloaded at various points in the EU and returning to the UK unaltered. The EU did not accept this proposal, seeing these different arrangements as a way of getting additional cabotage rights which are unprecedented for non-EEA/EFTA countries. To support the cultural touring sector, the Department for Transport implemented the dual registration measure in the summer of 2022. This measure relates to HGV operators.

The noble Baroness, Lady Randerson, raised engagement with stakeholders. Throughout the development and implementation of these measures associated with the posting of transport workers, we have been engaging with industry stakeholders to promote the changes and helping businesses to know what they need to do. An 8-week public call for evidence was held from 29 June 2021 to 24 August 2021 which received 113 responses which were published on GOV.UK; 64 of these responses were from representatives of organisations. Following this, we also held a closed consultation on the proposed legislative measures with six key stakeholders, including industry associations. Consultees were broadly supportive of the proposals, and the majority thought that the additional burden imposed on businesses would be low. The devolved Administrations have been consulted on the details and proposed effects of the regulations throughout the process, including a specific consultation from August to October 2023 about the postings and international permits provisions of these regulations.

On the impact assessment, which was raised by the noble Lord, Lord Tunnicliffe, the Department for Transport undertook a post-implementation review of the 2018 regulations. Permit numbers have not been oversubscribed. There have been no reports of impact by the industry.

On communications to the industry, which was raised by the noble Baroness, Lady Randerson, the changes made by these regulations will be communicated with the industry via trade associations, updates to GOV.UK and other relevant channels. Information is already available where there have been changes to permit requirements in international road transport agreements. Communications with trade associations were done when international road transport agreements were implemented.

Posting requirements already apply to road transport operators and drivers for journeys between two places in the EU. Guidance has already been published. The provisions of this instrument do not affect what road transport operators or drivers need to do to comply with the posting requirements. On the point raised by the noble Baroness, Lady Randerson, on fees, they are not being increased.

On the point raised by the noble Lord, Lord Tunnicliffe, as a result of the trade and co-operation agreement, the UK is required to implement some changes related to road transport from 2022 onwards. This is because the related EU acquis was, when the TCA was negotiated, known to be being changed from 2022. Therefore, provisions were included in the TCA for changes to come into effect later. These later changes include changes to the road transport operator licensing regime, which the UK made in 2022. They also include changes in relation to the posting of transport workers affecting in-scope drivers of goods vehicles, which is the subject of these regulations. These changes were written into the 2020 TCA, albeit with later commencement dates.

To conclude, these regulations are an important step in the UK’s future relationship with the European Union and an important part of the EU-UK Trade and Cooperation Agreement that we agreed when leaving the EU. Implementing these regulations will ensure that UK operators found to be breaking the rules included in the TCA—an important treaty for our ongoing trading relationship with the EU— can be dealt with appropriately. The regulations also update requirements related to road haulage permits, including in the light of new and better bilateral road transport agreements between the UK and certain non-EU states.

Motion agreed.

Rail Manufacturing: Job Losses

Lord Davies of Gower Excerpts

Wednesday 17th April 2024 Lords Chamber

[Lord Liddle (Lab)]

My Lords, I would first like to pay tribute to my noble friend Lord Rosser, who, sadly, passed away last week. In the context of this Question, he was an exemplar of the very finest in railway trade unionism.

In the other place, the much-respected rail Minister Huw Merriman said that the Government were working on a short-term solution to bring forward orders at the Alstom plant in Derby. Can the Minister confirm that, as reported in today’s Telegraph, this involves new trains for the Elizabeth line? Before Covid there was considerable investment in new rolling stock, but does he accept that, as the Treasury’s grip on railway finances has strengthened, his department has displayed, in the last couple of years, what can only be described as powerless drift and delay? This is no way to treat workers’ lives, and no way to conduct policy in a vital industrial sector. Where is the plan? Where is the promised guiding mind that will end the railways’ chaotic fragmentation?

[The Parliamentary Under-Secretary of State, Department for Transport (Lord Davies of Gower) (Con)]

My Lords, I too pay my respects and offer my condolences to Lord Rosser’s family.

Several train operators are in the market for new trains, which will provide significant commercial opportunities for UK rolling stock manufacturers. Alstom will have the opportunity to take part in competitions for future contracts. Rolling stock owners are also continuing to support the supply chain by investing heavily in their fleets. Several major upgrades are under way, including for Govia Thameslink Railway’s Porterbrook-owned Electrostar fleet, and for Avanti West Coast’s Angel Pendolino fleet refurbishment.

[Baroness Randerson (LD)]

My Lords, I would also like to pay tribute to the noble Lord, Lord Rosser, who I regarded as a friend and whose contribution to this House I greatly respected.

The Government have a feast-and-famine approach to ordering rolling stock. Between 2012 and 2019, 8,000 vehicles were ordered, but between 2019 and 2023, 100 vehicles were ordered. It also seems to take the Department for Transport an absurdly excessive time to move through the procurement process: from invitation to tender to the delivery of the first vehicle takes over six years. Are the Government, as some suspect, on a deliberate go-slow in order to reduce expenditure? In view of the news about the desperate last-minute attempts to conjure up some orders for Elizabeth line trains, does the Minister accept that, with thousands of jobs at risk in Alstom and Hitachi, this reveals a desperate gap—a black hole—at the heart of the Government’s industrial policy?

[Lord Davies of Gower (Con)]

No, I do not agree that the Government have a gap in their industrial policy. Rail manufacturing plays a very important role in growing the UK economy and there is a strong pipeline of future orders for UK rail manufacturers, including upcoming procurements in the market being run by Northern, Chiltern, TransPennine and South- eastern. That competition process is open for all manufacturers to bid, including of course Alstom. The department is also working with His Majesty’s Treasury to set out a pipeline for expected rolling stock orders, to provide the sector with further clarity over the near term.

[Lord Grocott (Lab)]

My Lords, I think it was significant that there was no reference at all in the Minister’s Statement in the Commons to what I consider to be the inevitable consequences of the cancellation of the Crewe and Manchester sections of HS2: it is obvious that that was significant in terms of job losses. We already know about the losses that have occurred from money spent on both those projects that is now wasted because the line is not being built. What is the Government’s estimate of the loss of jobs in construction and manufacturing—which the Minister has focused on so far—as a direct result of the cancellation of those legs of HS2?

[Lord Davies of Gower (Con)]

I cannot comment on the construction side, but Alstom is part a contract with Hitachi to design, build and maintain the HS2 trains for phase 1 only—that is 54 trains. Phase 1 of HS2, between Birmingham and London, will continue, with, as I have said before, a rescoped Euston station. HS2 Ltd has written to the joint venture confirming that the original order for those 54 trains for phase 1 remains unchanged.

[Lord Sikka (Lab)]

My Lords, the managing director of Alstom has said:

“We have worked constructively with the Government on securing a sustainable future for Derby Litchurch Lane, but after 10 months of discussions we have run out of time, and the production lines have stopped”.


Can the Minister explain what exactly were the stumbling points in those 10 months and what efforts the Government have made to overcome them?

[Lord Davies of Gower (Con)]

Yes, I can. The Transport Secretary had a constructive meeting yesterday with Alstom’s chairman and chief executive officer and its UK and Ireland director. We are now in a period of intense discussion with the company on potential options to secure a sustainable future for Alstom’s Litchurch Lane factory. While it would not be appropriate for me to go into the details of those discussions at this stage, I know that the Transport Secretary plans to update both Houses at the appropriate time.

[Lord Berkeley (Lab)]

My Lords, the potential Alstom order from the Government for extra trains on the Elizabeth line is, allegedly, to cope with more passengers who will come off HS2 and want to go somewhere else on the Elizabeth line. Can the Government confirm that the new trains—it may be up to 10—will have toilets? In a recent incident on the Great Western, there were people stuck on trains for something like 10 hours without access to a toilet—and then they got criticised for jumping on to the track. Surely, in this day and age, the minimum should be to have at least one or two working toilets on such trains, which possibly go for two-hour or three-hour journeys.

--- Later in debate ---

[Lord Davies of Gower (Con)]

The noble Lord makes a very serious point. I am not able to confirm that now, but I will certainly look it up and write to him.

[Baroness Chapman of Darlington (Lab)]

My Lords, many of us here have campaigned hard to get the Hitachi factory in Newton Aycliffe. Hundreds of local people have had good jobs there for many years now. Is it not true that the Government have just not delivered the anticipated orders for trains that the factory was expecting? There are many young people who have taken career choices and studied at the university technical college there associated with Hitachi. It will be devastating for Newton Aycliffe, Darlington and the Tees Valley if anything happens to jeopardise the future of the factory. What message does the Minister have for that community, and what will he do to make sure that we keep those much-needed jobs?

[Lord Davies of Gower (Con)]

I can only repeat what I have just said. The Government are working very hard to make sure the company remains at the location. New competitions have recently commenced for rolling stock on Northern, Southeastern, TransPennine and Chiltern railway lines, as well as procurements for fleet upgrades on East Midlands, Chiltern and CrossCountry. Alstom is very capable, and able to compete for this work.

[Lord Grocott (Lab)]

Perhaps I could ask for a specific answer on this. The Minister referred to the rolling stock that has already been ordered in respect of London to Birmingham, but he cannot give an estimate of job losses following the cancellation. There clearly must be consequences for rolling stock when you do not build a railway to Crewe and Manchester that you planned to build. So can the Minister at least tell us how much rolling stock in total is not now going to be required and constructed as a result of the closure of the new railway?

[Lord Davies of Gower (Con)]

I cannot give the noble Lord that figure at the moment, but I will certainly look into it and come back to him.

Renewable Transport Fuel Obligations (Amendment) Order 2024

Lord Davies of Gower Excerpts

Wednesday 27th March 2024 Lords Chamber

Moved by

[Lord Davies of Gower]

That the draft Order laid before the House on 21 February be approved.

Relevant document: 16th Report from the Secondary Legislation Scrutiny Committee. Considered in Grand Committee on 26 March.

Motion agreed.

Renewable Transport Fuel Obligations (Amendment) Order 2024

Lord Davies of Gower Excerpts

Tuesday 26th March 2024 Grand Committee

Moved by

[Lord Davies of Gower]

That the Grand Committee do consider the Renewable Transport Fuel Obligations (Amendment) Order 2024.

Relevant document: 16th Report from the Secondary Legislation Scrutiny Committee

[The Parliamentary Under-Secretary of State, Department for Transport (Lord Davies of Gower) (Con)]

My Lords, this order would amend the Renewable Transport Fuel Obligations Order 2007 so that recycled carbon fuels, known as RCFs, are eligible for support under the renewable transport fuel obligation—RTFO—scheme.

The RTFO scheme establishes targets to drive the supply of renewable fuels. It does this by placing obligations on suppliers of transport fuel to ensure that renewable fuels make up a proportion of their overall supply. The amount of renewable fuel that should be supplied is calculated as a percentage of the volume of relevant fossil fuel supplied in a calendar year.

This obligation is met by acquiring certificates which are issued for the supply of sustainable renewable fuels. These certificates can be redeemed at the end of an obligation period, as well as traded between parties. The value of these certificates therefore provides a revenue stream for producers of renewable fuels and demand for their products in the fuel market. While the RTFO has operated successfully since 2008, it is important that it continues to evolve as new technologies and opportunities for emissions-reducing fuels are developed.

We committed to supporting RCFs in the Government’s transport decarbonisation plan and this statutory instrument delivers on that goal. It is the product of two consultations with industry and in-depth working with industry experts and across government departments. The instrument will help to maximise the greenhouse gas savings that can be achieved under the RTFO by broadening the available feedstocks for eligible fuels and encouraging the development of a new industry.

So what are these new fuels? RCFs are fuels produced from fossil wastes that cannot be avoided, reused or recycled, and have the potential to reduce greenhouse gas emissions relative to petrol, diesel or kerosene. To date, the RTFO scheme has supported only fuels produced from renewable feedstocks, such as biomass and renewable energy. However, emerging technologies and production methods mean it is possible for fuels produced from fossil wastes to contribute to emissions reductions to a similar degree to renewable fuels.

For example, wastes such as municipal solid waste—black binbag waste to most of us—can be processed using advanced techniques to form alternatives to fossil diesel and jet fuel. These fuels can provide significant greenhouse gas emissions savings compared with their alternative end-of-life fate, such as incineration in energy- from-waste plants.

Recent amendments to the Energy Act via last year’s Energy Bill permit RCFs to be included in the RTFO as well as other renewable transport support schemes, such as the forthcoming mandate for sustainable aviation fuels, provided they cause or contribute to a reduction in carbon emissions. The amendment to the Energy Act recognised that RCFs can play an important role in decarbonising different transport modes, including harder to electrify vehicles such as heavy goods vehicles and airliners.

Turning to the specific content of this SI, it amends the RTFO order to add wastes of fossil origin as an eligible feedstock for fuel production. Importantly, it also designates RCFs as a “development fuel”. These development fuels can be used to fill a sub-target in the RTFO designed to encourage the supply of novel and strategically important emerging technologies for fuel production. As a development fuel, qualifying RCFs also need to meet additional eligibility criteria in the order ensuring that only fuels that comply with existing fuel standards can qualify. This mitigates any air quality or compatibility concerns, as the fuels will in essence be chemically comparable with transport fuels already in use today.

This order will also allow RCFs to claim one development fuel certificate per litre of fuel supplied, which is half that of similar eligible renewable fuels. This is in recognition that truly renewable fuels remain more valuable, while still rewarding emissions savings from RCFs. To ensure that we mitigate any unintended consequences, the order also introduces detailed sustainability criteria. These ensure that support is provided only to fuels that are produced from genuine non-recyclable wastes and that they provide a saving on carbon emissions of at least 50% compared to traditional fossil fuels such as petrol and diesel. These criteria ensure that the policy complements the waste hierarchy and avoids incentivising the creation of wastes while still delivering emissions savings compared to the alternative likely end-of-life fate for different waste streams.

Why we are supporting RCFs? We expect that RCFs will have an important part to play in meeting our future emission reductions targets. Renewable fuels already contribute one-third of transport emissions reductions from the current carbon budget. Widening eligibility to include RCFs will ensure that such fuels can continue to make that important contribution as part of the transition to the electrification of road vehicles. Advanced fuels such as RCFs can generate significantly lower emissions compared to traditional fossil fuels.

The UK is leading the way in developing many of these technologies, supported by grant funding from the Department for Transport via the Future Fuels for Flight and Freight competition and, more recently, the Advanced Fuels Fund. Introducing RCFs into the RTFO now sets a helpful precedent for the forthcoming mandate for sustainable aviation fuel, which the Government have committed to introduce on 1 January 2025 and which will operate in a similar way, but for the aviation sector. Including RCFs in both schemes is important, as production processes mean that many facilities will produce both road fuel and SAF at the same time. Supporting RCFs under the RTFO will also increase the range of feedstocks eligible for support and encourage the innovation needed to increase the deployment of low-carbon fuels in harder to decarbonise vehicles such as heavy goods vehicles and airliners.

A further benefit of supporting RCFs is to provide a productive alternative for difficult to manage wastes. Examples of RCF feedstocks include unrecyclable, often contaminated plastics such as black bin bag waste. These wastes are currently mostly incinerated or sent to landfill. Processing them into fuels offers a more sustainable method of waste management. RCF production also utilises many of the same processes and technologies needed to be developed in order to increase the efficiency and capability of chemical recycling. Providing extra investment into these processes will therefore lead to wider waste management benefits in future.

In conclusion, as I have said, fuels supplied under the RTFO scheme currently deliver about one-third of all domestic transport carbon savings under current carbon budgets. However, it is vital that we expand the range of feedstocks we use if we are to continue to grow their contribution and meet our net-zero goal. RCFs have the potential to deliver emissions savings across the transport sector, while also supporting the efficient handling of wastes, and provide an opportunity for a valuable emerging UK industry, something I think we should all support. I beg to move.

[Lord Ravensdale (CB)]

My Lords, I declare my interests as set out in the register, particularly as a chief engineer working for AtkinsRéalis, an engineering consultancy, and as a co-chair of Legislators for Nuclear.

I very much welcome this statutory instrument, not least because I put forward and agreed with the Government the amendment to the Energy Act 2023 which gave them the primary powers to undertake this change. As the Minister said, recycled carbon fuels can provide significant carbon savings compared with traditional fossil fuels such as petrol, diesel and kerosene, and will save large quantities of carbon for hard-to-abate sectors. They will also enable RCFs as key near-term components of sustainable aviation fuels in the SAF mandate. Clearly, how these carbon savings are to be determined will be a key point in the implementation of these regulations, so can the Minister perhaps expand to the Committee on the detail of how this carbon savings process will be undertaken?

Secondly, the other part to my amendments to the Energy Act 2023 related to nuclear-derived fuels and enabling these to obtain support under the RTFO. These powers will be important in the near term for plans for hydrogen-powered construction vehicles and for hydrogen-powered buses at Sizewell, and in the medium term for the SAF mandate, given the unique characteristics of nuclear plants and their ability to produce hydrogen and synthetic fuels economically and at large volumes, leveraging the heat that they generate as well as electricity to generate large volumes of sustainable aviation fuel. Can the Minister perhaps update the Committee on when we will see a similar statutory instrument for nuclear-derived fuels, and indeed on the timescales of those associated consultations?

Finally, I highlight the need for cross-departmental working in this area, particularly on sustainable aviation fuels, which I know is already happening. There is a need for ministerial sponsorship of a senior-level, cross-Whitehall discussion, including the relevant departments, including the DESNZ, the DfT and the Treasury, to initiate those activities and dialogue on policy, funding and collaborations needed to unlock this SAF opportunity from recycled carbon fuels and from nuclear-derived fuels. This would really help break down those silos and move this area forward. Can the Minister also please state what plans there are for such cross-departmental work in the future?

--- Later in debate ---

[Lord Tunnicliffe (Lab)]

My Lords, I thank the Minister for his presentation of this statutory instrument. It is not an instrument that I have got on with very well. I decided to try to understand it, and that has absorbed a great deal of my time. As I tried to understand it, my old history teacher’s test came to mind: “You don’t understand it until you can explain it in your own words”. So I shall explain what I think it means, in my own words, and see whether the Minister agrees.

At one level, this is an elaborate and benign waste-management exercise. Let us look at the two comparisons here. A renewable transport fuel comes from taking CO₂ out of the atmosphere and turning it into fuel using those wonderful devices called “plants”. We then turn the energy captured in those plants into fuel and burn it in vehicle engines and so forth, which releases the energy and the CO₂ back into the atmosphere. The impact of the CO₂ is neutral: in other words, the plants’ photosynthesis activity captures energy, essentially from the sun, and that energy is turned into fuel and then released.

A recycled carbon fuel takes carbon from beneath the earth, in the form of oil or carbon or whatever, and in this case turns it into something useful such as plastic, which then becomes waste. It is then, in this process, turned into fuel. That means, essentially, that it is burned. Energy is released and the CO₂ is released into the atmosphere. The impact of CO₂ is adverse, in the sense that carbon is taken from its fossil source and put into the atmosphere, which is a bad thing.

It is only if the feedstocks are not burned wastefully, through incineration or whatever, that there is a net benign effect: only if very strict controls are applied to the feedstock to make sure that it is inevitable that the feedstock is turned into free CO₂, left to incineration et cetera—or it goes into landfill, which once again is an adverse outcome. Therefore, properly controlled, this policy is benign and has our support. So the Minister can stop his concerns; we are not going to try to vote this down, first because it is benign and, secondly, because we do not want a constitutional crisis.

Moving on, I have a few questions about this order. The emphasis in the literature seems to be on aviation fuel. Can the Minister give us some feel on the extent to which it will be a significant contribution to aviation fuel or where else it would be used in any significant amount? Indeed, will it be significant in any non-aviation applications? Next, is there an international dimension here in terms of the UK creating this instrument, which will stop the development of international agreements on this way of handling waste? Finally, is it within this instrument’s power for the Government to withdraw it, because it needs to meet two tests? The first is on the strict control of the feedstock while the second is about whether the financial incentives contained in the order actually work. If it is impossible to get a set of financial incentives that work, can the Government withdraw the instrument and its impact?

[Lord Davies of Gower (Con)]

My Lords, I thank all noble Lords for their consideration of this order. I will now attempt to respond to the specific points that they made.

Let me start by saying that the RTFO includes a range of strict eligibility criteria to ensure that all fuels supplied are sustainable and provide a minimum level of greenhouse gas savings. Although RCFs are a fossil fuel, and therefore emit fossil carbon when combusted, their carbon savings are determined by comparison to the counterfactual end-of-life fate of the waste feedstock. For instance, black binbag waste uses an assumption that the waste would otherwise be incinerated in an energy-from-waste plant and calculates the benefit seen by diverting that waste into fuel production. This still needs to provide an emissions saving of 50% compared to simply using fossil diesel.

Different counterfactuals can be considered, depending on the specific waste feedstock. This ensures that the use of these fuels delivers effective greenhouse gas savings. Converting residual non-recyclable waste plastic into recycled carbon fuels can encourage a more effective use of our waste, as it can achieve greater energy recovery than disposing of the waste via conventional means.

Any recycled fuel produced from plastics will have to meet the same fuel standards as all other fuels to gain support from the RTFO. We are aware that pyrolysis oil, which is an initial stage of chemical waste recycling, can be used as a fuel for some applications and can have negative air quality issues associated with its use. However, such fuel would not be eligible under the RTFO order proposed here, as it does not meet the relevant fuel standards outlined in the order. Pyrolysis oil created during RCF production would need to be further refined into a diesel fuel that complies with existing fuel standards to receive RTFO support. We are not aware of any evidence to suggest that this would alter the air quality performance of the final fuel compared to regular diesel.

I will now address one or two of the points that were made. The noble Lord, Lord Ravensdale, made a couple of points; in particular, he talked about nuclear-derived fuels. I can tell him that we received the primary powers required to support nuclear-derived fuels under the RTFO following Royal Assent of the Energy Act 2023. We continue to consider the inclusion of nuclear-derived fuels in the RTFO. We have confirmed that the forthcoming mandate for sustainable aviation fuels will support nuclear-derived fuels; it is on track to come into force on 1 January 2025.

On the issue of cross-departmental working, DESNZ, the DfT and the Treasury are absolutely aware of the need for it and are making great efforts to work together in order to take it forward.

Train Operating Company Contracts

Lord Davies of Gower Excerpts

Monday 25th March 2024 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Transport (Lord Davies of Gower) (Con)]

My Lords, in 2021, the Government began introducing national rail contracts, which have now replaced all the emergency contracts signed during the pandemic. These are flexible contracts, allowing services to be adjusted as passenger demand recovers. They include incentives on punctuality, reliability, service quality and customer satisfaction. Last autumn, we introduced a new incentive to drive recovery in demand and revenue. We are actively developing further improvements for inclusion in future contracts.

[Baroness Randerson (LD)]

My Lords, I want to shine a light on Great Western Railway, at whose hands the Minister and I suffer on a regular basis. As well as cancellations and lateness, we have shortened trains, with 10 carriages frequently being reduced to five, and yet Great Western Railway’s notifications of disruption do not always cover this. Why are we not always told in advance about shortened trains? Is it because, as some people have assured me, the department has changed the contract with Great Western, specifically requiring it to run shorter trains for a certain proportion of its journeys? Does the Minister accept that it is important to have transparency on this? People need to know when they will be faced with a five-carriage train. He referred to recovering passenger numbers, and we frequently have intense overcrowding on Great Western trains.

[Lord Davies of Gower (Con)]

I have to declare that I am a regular traveller on Great Western Railway services and appreciate much of what the noble Baroness says. Cancellations, especially those made close to the time of travel, can be very inconvenient, preventing passengers travelling with confidence. When trains are regularly cancelled, this can disrupt people’s lives. That is why the department holds operators to account for cancellations. The scrutiny and penalties depend on the reasons for these cancellations, as well as on how close they are to the planned time of travel and therefore how much they inconvenience passengers. However, I am not aware of any arrangement that the department has with GWR in relation to cancellations.

[Lord Birt (CB)]

My Lords, last year, my wife and I spent a delightful three weeks in Japan visiting the ancient cities and gardens, travelling extensively by bullet, regional and local trains. We laughed increasingly loudly as every train, without exception, arrived on time, exactly to the minute. By contrast, almost every wait at a UK train station—including my journey here today—is punctuated by computer-generated announcements of delay and cancellation. In the last 12 months, 33% of UK trains have failed to arrive on time. One in 30 trains has been cancelled. Why can we not run a railway as well as the Japanese?

[Lord Davies of Gower (Con)]

I take the noble Lord’s point. The Secretary of State visited Japan recently and looked closely at its operating systems. Let us hope that we see an improvement to the extent that we can operate our service equally well.

[Lord Liddle (Lab)]

My Lords, it is almost six years now since the chaotic introduction of changed rail timetables demonstrated that the present system of train operating contracts is completely broken. Since then, we have had the Williams Rail Review, the Williams-Shapps Plan for Rail, and a lecture by the Secretary of State last year backing fully the case for reform. But all there is to show for this is a rather sketchy framework rail reform Bill, which the Government have put out for legislative scrutiny, despite the fact that the legislative programme is so light that the House of Commons is rising at 4 pm. What explains this dither and delay? I suggest to the Minister that the Government introduce this rail reform Bill into this House, where it could have lots of detailed scrutiny from informed people and be improved.

[Lord Davies of Gower (Con)]

As the noble Lord knows, the rail reform Bill is being scrutinised by the Transport Committee. That was an agreement by the usual channels. From May 2021, national rail contracts were introduced to bridge the gap between Covid-19 emergency agreements and future competed contracts. The last two national rail contracts began in October 2023. Under the national rail contracts, the Government cover the operators’ reasonable costs, receive revenues and bear the financial risks. The national rail contracts are flexible by design, allowing service levels to be adjusted as passengers return to the railways.

[Lord Swire (Con)]

If my noble friend the Minister is genuinely looking at improving customer experience on the railways, can I return again to the issue of the provision of wifi, which is variable on some railways and non-existent on others? Surely in 2024 the basic provision of wifi, which is technologically achievable, to encourage people to work—after all, we are trying to increase productivity—should be something we accept as the norm and not something we continually have to argue for? Increasingly, you can get wifi on aeroplanes in the middle of nowhere; surely you should be able to get it on the GWR from Exeter to London.

[Lord Davies of Gower (Con)]

My noble friend is absolutely right, and I quite agree with him. It is very annoying; I suffer from it myself when I travel on GWR. I really do not understand, technically, why we should not be able to do it. It is something I will perhaps take a personal look at when I go back to the department.

[Lord Anderson of Swansea (Lab)]

My Lords, how are the Government addressing that, fearing the non-renewal of their contracts, companies seek to find ways and means of reducing investments as they near the end of their contracts?

[Lord Davies of Gower (Con)]

My Lords, train operators are required to work to an annual business plan agreed with the department, allowing more agility for both parties to respond to change as it arises throughout the contract term. Train operators are incentivised to deliver for passengers by earning a fee based on their performance.

[Baroness Grey-Thompson (CB)]

My Lords, in the light of the draft rail reform Bill, will His Majesty’s Government commit to primary legislation to deliver level boarding and accessible step-free station deadlines? By the Government’s own figures, it will take 100 years for stations to be step-free at the current rate of Access for All funding.

[Lord Davies of Gower (Con)]

I accept what the noble Baroness says. We have discussed this outside the Chamber, and it is something that the Government are working hard to improve.

[Lord Pickles (Con)]

My Lords—

--- Later in debate ---

[Lord Goddard of Stockport (LD)]

From this side, we might rename the noble Baroness, Lady Randerson, Baroness Mystic Meg. We are talking about contracts and railways, and, out of the hat, two days ago, Avanti has now decided to pay overtime premiums of £600 a day for drivers. Clearly, this is a last desperate act of the Government and Avanti trains to keep the contract. Last week, Transport for the North—chaired by a Conservative Peer—unanimously agreed with Burnham and Rotheram, the mayors from the north, that that contract should be taken away. This is clearly unacceptable. We talk about the NHS, care workers, firefighters and the police, and, as a last desperate act, Avanti is offering £600 a shift for driving a train at weekends—it is absolutely scandalous.

[Lord Davies of Gower (Con)]

I can only repeat what I have said before in the House to noble Lords. The decision to award a contract to First Trenitalia was contingent on the operator continuing to win back the confidence of passengers. The Minister with responsibility for rail and officials regularly meet with FirstGroup and Avanti senior management to understand the challenges and to hold them to account for issues within their control. However, I hear what the noble Lord says.

Avanti Trains

Lord Davies of Gower Excerpts

Tuesday 27th February 2024 Lords Chamber

[Lord Snape]

To ask His Majesty’s Government when they next expect to meet Avanti Trains to discuss payments made to the company under the service quality regime.

[The Parliamentary Under-Secretary of State, Department for Transport (Lord Davies of Gower) (Con)]

My Lords, officials regularly meet Avanti to discuss its performance against service quality regime targets and how it will make improvements for passengers and to the customer experience. To date, no payments have been made to Avanti under the service quality regime. The evaluation to determine the first service quality regime performance fee for April to October 2023 is currently under way.

[Lord Snape (Lab)]

My Lords, does the Minister accept that, at a recent internal meeting at Avanti trains, various slides were produced for its management? I have some of them with me at the moment and I shall quote from them. Managers joked about receiving “free money” from the Government and performance-related payments being

“too good to be true”.

The presentation went on to say that the Department for Transport supports the firm and added:

“And here’s the fantastic thing!—if we achieve those figures”—


that is, the Government’s punctuality figures—

“they pay us some more money—which is ours to keep—in the form of a performance-based fee!!”

Does the Minister accept that this is a situation where the Treasury takes the revenue, the passengers take the strain and the directors take a bonus for providing the worst train service in the UK? This is not a policy; it is lunacy.

[Lord Davies of Gower (Con)]

As I referred to in my opening response, no payments have been made to Avanti under the service quality regime thus far. The department considers the comments from the leak to be a very serious issue, and expects the highest standards of culture and leadership from Avanti’s operators and senior management. We are extremely disappointed by the tone expressed in the leaked presentation. Officials have met their counterparts at First Rail Holdings, Avanti’s parent company, and spoken to the managing director to convey the seriousness of this issue. The Rail Minister has also met the chief executive of FirstGroup.

[Lord Goddard of Stockport (LD)]

My Lords, if the House were sitting for five days next week and the Minister had Questions every day, and he arrived six minutes late on Monday, eight on Tuesday, 10 on Wednesday, 12 on Thursday and 14 on Friday, with the remarkable phrase, “I apologise for my lateness to arrive at the Dispatch Box and hope it does not disrupt the House too much,” one of two things would happen. We would have a whip-round for an alarm clock for him, or the Chief Whip would be looking for a new Minister, because that is accountability. Is nobody holding Avanti trains responsible? Those times I have given to the House are times of trains being late that do not qualify for any payment whatsoever. The long-suffering public are putting up with this day in and day out. Does the Minister think I am overegging it? The 9.35 for Euston was 21 minutes late in this lunchtime.

[Lord Davies of Gower (Con)]

The decision to award the contract to First Trenitalia was contingent on the operator continuing to win back the confidence of passengers, but as with other operators, it is a combination of things. Its train crew issues are linked to its continued lack of driver overtime and ongoing industrial action. There are many issues that contribute to this. It is not always the operators’ fault.

[Lord Berkeley (Lab)]

My Lords, last week, the Government launched a draft rail reform Bill, which they claimed would put one organisation in charge of all the railways. It is pretty obvious that that organisation will be the Government. How will that actually improve the appalling service that Avanti is still giving, in spite of the Government actually being in charge now?

[Lord Davies of Gower (Con)]

I thank the noble Lord for that question. We are committed to reforming the railways, and we are getting on with delivering improvements for passengers, freight customers and the taxpayer now. Rail reform remains a priority for government. Our priority for the next 12 months is delivering the improvements I just mentioned, and we are focused on collaborating with the sector to lay the foundations for a reformed industry, taking more of a whole-system perspective within the current legal framework.

[Baroness McIntosh of Pickering (Con)]

My Lords, does the Minister remember that Parliament passed a minimum-service requirement in the context of strike action? Is it the case that, if there is bad weather, Avanti or any other rail company can order a fleet of taxis to ensure that passengers complete their journey, but if there is a strike, no alternative transport can be so ordered? Will the Minister look into this to ensure that the Act that Parliament passed is followed to the letter?

[Lord Davies of Gower (Con)]

I will certainly have a look at that.

[Lord Tunnicliffe (Lab)]

My Lords, I commend my noble friend Lord Snape for his tenacious pursuit of Avanti’s inferior performance. However, it is not just Avanti; Govia Thameslink regularly fails two-thirds of its performance measures. The industry is in a mess. Why do His Majesty’s Government not initiate legislation, already in draft, to create Great British Railways; or even better, call a general election and hand over this mess to a properly mandated Government?

[Lord Davies of Gower (Con)]

The noble Lord asks about the Govia Thameslink Railway service. The new service quality regime was introduced in 2023, and the targets set for that period were drawn from the best available information at that time. We have been able to review and evaluate the outcomes of a standard set in 2022-23, with new levels for 2023-24. The department regularly discusses and reviews performance with Govia Thameslink Railway, and its service quality regime results have improved year on year. We will continue to hold it to account to deliver further improvements for passengers.

[The Lord Bishop of Manchester]

My Lords, a number of times in this short session, we seem to have had it suggested that somehow the Avanti staff are to blame. I suffer along with the noble Lord, Lord Goddard, regularly on that Manchester Piccadilly to Euston route. The staff are wonderful; it is not the driver’s fault if they are eight minutes late, or the fault of the person bringing you a cup of tea if they are 40 minutes late. The problem does not lie with the Avanti staff, who are working under incredibly difficult conditions. Can the Minister join me in expressing support for those staff in the work that they are doing under very trying circumstances?

[Lord Davies of Gower (Con)]

I absolutely agree with the right reverend Prelate. I travel from Wales on the GWR system. Yesterday, we were an hour late arriving at Paddington. The staff are very good, and they keep us informed as to what the issues are. As I have said previously, the issues are not always the operators’ fault; they are very often to do with infrastructure.

[Baroness Randerson (LD)]

The Minister referred to improving standards from Govia Thameslink. However, in the first year of the current contract, it failed on seven of the nine targets, which were then reduced and loosened. When the Minister says that it has improved, has it improved against the new, looser and lower targets, or has it actually improved its service to customers? Secondly, on reaching those targets, its leadership is entitled to a massive £23 million bonus. Will it achieve that on the lower targets that the Government have set?

[Lord Davies of Gower (Con)]

The noble Baroness asks several questions there, and I would answer by saying that the targets are proportionate to the level of investment agreed with the business plan for any given year.

[Lord Woodley (Lab)]

On service levels, do the Government share the concerns of the RMT union about Avanti’s proposals to withdraw cash payments from its catering services? This move shows scant regard for those older and poorer passengers who use only cash. Does the Minister agree with me that it would be far better for customers to have the option of cash and card for catering services?

[Lord Davies of Gower (Con)]

That really is a matter for the operator; it is not for government to decide that particular issue.

[Lord Beith (LD)]

My Lords, LNER generally performs significantly better than Avanti, but it is now proposing to reduce the hourly service from Berwick-upon-Tweed to a two-hourly service and lengthen journey times. How is that the improvement in passenger experience of which the Minister spoke?

[Lord Davies of Gower (Con)]

I must confess that I am not aware of that, but it is something that I shall take back to the department and look into.

[Lord Browne of Ladyton (Lab)]

My Lords, why will the Government not just publish the contracts that we have with train operating companies? When I travel on Avanti back and forward, on every journey there is somebody in the carriage I am in who knows something about the contract, and I can tell you that the Government do not come out of any of those conversations well. Are all these contracts different for different train operating companies, so that they can compete with each other—because they do not seem to be? Why do the Government not just come clean and tell the people who are paying for all this nonsense what the contracts state that have been made on their behalf?

[Lord Davies of Gower (Con)]

The Government are very conscious that it is taxpayers’ money; they keep that in mind. As to publishing contracts, again, that is something that I would have to take back to the department.

Pavement Parking

Lord Davies of Gower Excerpts

Wednesday 21st February 2024 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Transport (Lord Davies of Gower) (Con)]

My Lords, the Department for Transport received over 15,000 responses to its consultation on this matter. The Government want to take the right step for communities and ensure that local authorities have the appropriate and effective tools at their disposal. We are working through the options and the opportunities for delivering them and, as soon as those matters are certain, we will publish our formal response and announce the way forward.

[Lord Holmes of Richmond (Con)]

My Lords, cars on the pavement force pedestrians into the carriageway. That means blind people, wheelchair users and parents with pushchairs—in fact, all pedestrians—are taken off the pavement and put on a very different path: into that of oncoming traffic. In London, there has been a ban on pavement parking for years. If it is good enough for the capital, why not the rest of the country?

[Lord Davies of Gower (Con)]

My noble friend makes an important point, and I cannot help but agree with him. Pavement parking is a widespread problem and a complex issue. We must ensure that whatever approach is taken works for all road users in the community. We know that our streets belong to us all and understand that parking on the pavements damages them and exposes pedestrians to risk. We have empathy for those members of our society for whom pavement parking poses particular difficulties—those who have sight and mobility impairments, wheelchair users and those with prams and buggies—but we must get this consultation right.

[Lord Blunkett (Lab)]

I commend the noble Lord, Lord Holmes, for his Question. There is a major challenge; he and I are fortunate enough to have a degree of assistance in navigating cars and motorcycles on pavements, but others do not. There is an additional hazard as well, which is the new fashion of using electric bikes on pavements. Those are a real danger to all the same cohorts that the noble Lord spelled out. Is it not time to do this now? It would not cost much and might get the Government some popularity.

[Lord Davies of Gower (Con)]

Again, the noble Lord makes a valid point, which I cannot disagree with. E-scooters are allowed on public roads only as part of the e-scooter rental trials, and private e-scooters can be used only on private land. The use of any e-scooters on the pavement is illegal under current legislation and the Government have no current plans to change this. But at the end of the day, these things have to be enforced and it is a matter, particularly in London, for the Metropolitan Police. It is also for councils to look at and I cannot help but agree with the noble Lord.

[Baroness Randerson (LD)]

My Lords, the Minister looked surprised at the idea of government popularity. Can I encourage him to seize the day, because this is not just about people being forced into the road? It is also about uneven pavements that are left behind after lots of vehicles have parked on them. That is a danger to everyone who walks along the pavement. Does the Minister agree that it should be part of the rights of pedestrians in the 21st century to be able to walk safely down the pavement, and that since the Government’s consultation took place in November 2020, it is high time they got on and did something?

[Lord Davies of Gower (Con)]

As I pointed out in my first Answer, the department received over 15,000 responses to its consultation, covering tens of thousands of open comments. Every one of these has to be considered fully, giving due regard to the wide range of opinions expressed. Pavement parking is an extremely complex issue. All the options which are recommendations of the Transport Select Committee have supporters and detractors, and significant challenges in their deliverability and effectiveness. Yes, it is time and I am hopeful that in the not-too-distant future we will come out with a report on this.

[Lord Liddle (Lab)]

My Lords, all of us have enormous sympathy with the points the noble Lords, Lord Holmes and Lord Blunkett, have made. Can the Minister just disclose a little more about the options the Government are considering for better enforcement of the law? Will he tell us what they are, so that we might contribute better to this debate?

[Lord Davies of Gower (Con)]

I cannot disclose them at the moment, but as I said, I am very hopeful that in the not-too-distant future we will be able to come forward with suggestions.

[Lord Wallace of Saltaire (LD)]

My Lords, one of the reasons for parking on pavements is that cars have got wider. Do the Government have any plans to discriminate between 4x4s—which are wide, long and heavy, and thus also damage pavements—and smaller cars, and encourage the use of the latter in urban areas?

[Lord Davies of Gower (Con)]

I understand the point the noble Lord makes, but we have no plans to discriminate against 4x4s or wider vehicles at the moment.

[Baroness Eaton (Con)]

My Lords, I remind my noble friend that the government consultation on banning parking on pavements across England ended three years ago. Last month, local authorities, supported by the LGA, again called upon the Government to extend the powers currently held in London to the rest of England, in order to prevent parking on pavements. Does my noble friend accept that, if all councils across England had the same powers as London, that would enable the Government to meet their active travel plans much quicker?

[Lord Davies of Gower (Con)]

To a certain extent, I accept that. As I have said, the department has received over 15,000 responses, and it takes time. Yes, three years is a long time, and I am very conscious of that.

[Noble Lords]

Oh!

[Lord Davies of Gower (Con)]

In fairness, I have only just joined the department. I assure noble Lords that I am taking this very seriously and will do all I can to get a response out as soon as possible.

[Baroness Butler-Sloss (CB)]

My Lords, in London I jump for my life from bicycles on the pavement. Can the Minister add bicycles to the list when he is looking at enforcement?

[Lord Davies of Gower (Con)]

I, too, jump out of the way of bicycles. I take the noble and learned Baroness’s point; it is a serious issue, and enforcement should be more rigorous.

[Lord Brooke of Alverthorpe (Lab)]

My Lords, we are told in so many areas that we are awaiting the results of consultations and that we do not have the resources to undertake them more speedily. Are the Government exploring the possibility of using AI to do a quick analysis of many of these responses and get the results faster?

[Lord Davies of Gower (Con)]

I am not sure it is a question of resources; it is a question of analysing the 15,000 responses to the consultation. As for AI, I am afraid I am not an expert in that matter.

[Baroness McIntosh of Pickering (Con)]

My Lords, has my noble friend has a chance to look at the Bill in my name on Road Traffic Act offences involving e-bikes, e-scooters and pedal bikes, which has received its First Reading? In particular, will he look at the provision whereby there should be a review of illegally operated scooters to prevent further accidents and casualties?

[Lord Davies of Gower (Con)]

I have not yet had the opportunity to look at my noble friend’s proposed legislation, but as soon as I leave here I will go straight back to the department and do so.

[Lord Berkeley (Lab)]

My Lords, is it not about time that the Government grasped the nettle and said that roads are for things with big wheels, such as cars, bikes and scooters, and that pavements are for people who are trying to walk? It does not take three years to make a decision like that.

[Lord Davies of Gower (Con)]

I think I have covered the point the noble Lord raises. I agree that three years is a long time but, in fairness, it takes time to analyse all of this. I undertake to move as fast as I possibly can on this issue.

[Lord Winston (Lab)]

My Lords, it has been a lot longer than three years. I raised this question at least five years ago with the Minister’s predecessor, and I got a completely anodyne answer. It reflects badly on the Government when a simple situation is called complex that really is not complex at all.

[Lord Davies of Gower (Con)]

I cannot answer for my predecessor. All I can say is that I am very aware of the issue and undertake to move as quickly as I can.

Automated Vehicles Bill [HL]

Lord Davies of Gower Excerpts

3rd reading
Monday 19th February 2024 Lords Chamber

Moved by

[Lord Davies of Gower]

That the Bill be now read a third time.

[The Parliamentary Under-Secretary of State, Department for Transport (Lord Davies of Gower) (Con)]

My Lords, before I begin, I will briefly update the House on our engagement with the devolved Administrations. In line with the Sewel convention, the Government are seeking legislative consent Motions from the devolved legislatures of Scotland and Wales. The legislative consent Motion process is engaged for Scotland and Wales in relation to automated passenger services and the powers under Clause 40 to require reports from the police and local authorities. The Welsh Government laid their legislative consent memorandum in November. I am grateful for their constructive engagement to date. The Scottish Government laid an initial memorandum in December and we are awaiting a supplementary memorandum, outlining their recommendation on consent, later this month. UK government officials are working closely with their Scottish counterparts to clarify questions and provide support. The devolved Governments are rightly taking a close interest in this legislation, and we will continue to work constructively with them to progress the consent process.

A privilege amendment was made.

--- Later in debate ---

Moved by

[Lord Davies of Gower]

That the Bill do now pass.

[Lord Davies of Gower (Con)]

My Lords, I beg to move.

[Lord Naseby (Con)]

My Lords, I will make a short speech, conditioned by my being a former pilot with experience of Boeing, probably the most sophisticated company in the world on unmanned aircraft. The net result so far has been that 346 people died recently, although, thankfully, nobody died in the Alaska experience. Given that situation, although this Bill is supposedly about safety on the roads, we need to take great care; I recognise that we need a framework here, but I hope my noble friend will listen to what the noble Lord suggested earlier in the debate and have the Office of Rail and Road help oversee this Bill as it is implemented in relation to vehicles on the road.

--- Later in debate ---

[Lord Davies of Gower (Con)]

My Lords, it is nearly three months since the Bill had its Second Reading in this House. I am hugely grateful to colleagues on all sides for the very detailed scrutiny and challenge that they have provided over that period, as has already been alluded to. I heard what noble Lords have said.

The Bill has seen real benefit from the open and positive manner in which the opposition Front Benches have engaged. I thank the noble Lords, Lord Liddle and Lord Tunnicliffe, for the series of constructive discussions we have held on safety and other matters. In particular, the noble Lord, Lord Tunnicliffe, brings with him many decades of experience in the world of transport safety, and I am pleased that we have been able to draw on that during the Bill’s passage. I am grateful too to the noble Baroness, Lady Randerson, for her contributions, both in the Chamber and in our separate meetings. I also thank those who joined me for our two round-table sessions on data and accessibility, particularly the noble Baronesses, Lady Bowles and Lady Brinton, and my noble friends Lord Holmes and Lord Borwick.

I am also grateful to the teams at Wayve and Oxa, which have been so accommodating in welcoming me and colleagues across the House to experience self-driving technology in action. For those who have not yet had the chance, I can tell them that riding in one of these vehicles is simultaneously astonishing and—for want of a better phrase—reassuringly dull.

I am sure that colleagues will join me in thanking the countless policy officials and legal experts standing behind this piece of legislation. I am very grateful to the Bill team: Josh Kossoff, Marty Zekas, Dani Heard, Fran Gilmore and John Latham. My thanks also go to the policy leads Jenny Laber and Catherine Lovell; to Sam Cook, our drafter; and to Adam Lawless and Sean McGarry in my private office.

Finally, I pay tribute, one last time, to the Law Commission of England and Wales and the Scottish Law Commission. Their painstaking review is the foundation on which this legislation is built, and we have felt the benefit of their expertise throughout our debates. In particular, I thank the review’s lead lawyer, Jessica Uguccioni. The Bill receiving its Third Reading today is, in no small part, the product of more than half a decade of her work.

At Second Reading, I spoke of the potential benefits of bringing self-driving technology to our roads: safety, connectivity and new economic opportunity. Thanks to the careful and considered scrutiny of this House, the Bill now moves to the other place all the better able to make those benefits a reality.

Bill passed and sent to the Commons.