Public Bus Collisions

Lord Davies of Gower Excerpts

Monday 13th May 2024 Lords Chamber

[Lord Hampton]

To ask His Majesty’s Government what steps they are taking to reduce deaths and injuries of vulnerable road users from public bus collisions in England.

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

My Lords, the Government are determined to make our roads safer for all users. The National Bus Strategy made it clear that local authorities and bus operators should work together to ensure that bus services are safe and perceived to be safe by all. We also introduced changes to the Highway Code in 2022 and have delivered high-quality walking and cycling schemes, which will be vital to ensuring the safety of vulnerable road users.

[Lord Hampton (CB)]

I thank the Minister for his Answer. Every six weeks, according to Transport for London’s own statistics, on average one person is killed and 100 people hospitalised by preventable bus incidents. This is getting no better, despite the fact that the number of bus journeys has actually reduced. Given that the London business model is being rolled out to the rest of the country, do the Government still think that having bus companies investigating their own incidents is a good idea?

[Lord Davies of Gower (Con)]

My Lords, as I have said, road safety is a priority for the Government. The department is determined to make roads safer for everyone, and the delivery of high-quality walking and cycling schemes, coupled with the changes to the Highway Code in 2022, will play an important part in addressing the safety concerns of people wanting to walk, wheel and cycle. Active Travel England is working with local authorities to ensure that walking and cycling infrastructure is of the right quality and in the right places to maximise its value and impact. On the issue of bus companies investigating themselves, as the noble Lord knows from debates on the Automated Vehicles Bill, we have no intention of introducing separate investigation for buses.

[Lord Moylan (Con)]

My Lords, is my noble friend aware that many injuries caused by buses in fact occur inside the bus, especially to the elderly and vulnerable? Care needs to be taken in examining any statistics that suggest how many bus-related injuries arise in a particular period, to ensure that a distinction is made between those occurring inside the bus, often because of excessive braking, and those involving pedestrians in the street.

--- Later in debate ---

[Lord Davies of Gower (Con)]

My noble friend makes a very good point. It is a matter for individual bus companies, and of training. This issue is clearly of great importance to bus users but, as I say, it is for the bus companies themselves to ensure that their drivers are properly trained and take great care.

[Baroness Brinton (LD)]

My Lords, there is a particular problem for disabled and vulnerable passengers using the new bus stops that are in lanes between cycle paths and the main pavement—not least a very narrow pavement for wheelchair users trying to leave a bus, and a ramp, as a result of which you often almost go straight in front of the cycles. I must tell your Lordships that when you are coming down a steep ramp, you are not in control of your speed. Are there any plans to monitor accident numbers and to assess the risks associated with this new bus stop/cycle lane arrangement?

[Lord Davies of Gower (Con)]

I thank the noble Baroness for that question. The phrase used for these stops is “floating bus stops”. Local authorities are bound by the public sector equality duty, and it is for them to ensure that any infrastructure they install is safe, fit for purpose and delivered in a way that enables them to comply with equalities legislation. The department is aware of concerns raised by some groups about these floating bus stops, and that is why we co-funded research into the issue, led by Transport Scotland. This concluded recently and we will consider the findings carefully in deciding the next steps.

[Baroness Jones of Moulsecoomb (GP)]

My Lords, in fact, bus deaths and injuries are coming down quite dramatically compared with car deaths and injuries. The latter have barely moved, whereas bus and coach injuries have come down by 40% in the last year. I want to congratulate the Government because, clearly, their policy of depriving local councillors of funding means that there are fewer bus services and therefore fewer deaths and injuries from buses.

[Lord Davies of Gower (Con)]

I note the noble Baroness’s comments.

[Lord Kirkhope of Harrogate (Con)]

My Lords, there are concerns, and this issue arises from a Question we had about road safety. In view of some recent unsatisfactory accidents, is any consideration being given to obliging cyclists, particularly those on e-cycles, to have proper accident insurance in place, and to follow speed limits, like all other users of the road?

[Lord Davies of Gower (Con)]

My Lords, like all road users, cyclists are required to comply with road traffic laws in the interests of the safety of other road users. This is also reflected in the Highway Code. Dangerous cycling is completely unacceptable, and that is why there are already strict laws in place for cyclists who break the law. The police have the power to prosecute if these are broken.

[Lord Watts (Lab)]

My Lords, can the Minister say how many cyclists were prosecuted last year? My own background tells me that very few are.

--- Later in debate ---

[Lord Davies of Gower (Con)]

I am afraid I am unable to help the noble Lord with a number. I do not know whether we keep a record of that. I shall find out and if we do, I will write to the noble Lord.

[Lord Kamall (Con)]

In answer to a previous question, my noble friend said that the bus companies themselves investigate such accidents and the cause. Is that information shared among the bus industry as a whole, or with any regulators or departments, to make sure we learn lessons from these accidents and that they do not happen again?

[Lord Davies of Gower (Con)]

I am not aware of that, but I take my noble friend’s point. It is a question of bus companies taking their own steps to ensure that people are safe while they travel, and that drivers are trained properly.

[Lord Liddle (Lab)]

Does the Minister agree that, for all the points that have been made in this short discussion, in the vast majority of cases, bus drivers, particularly in our cities, deserve our thanks and respect for safely and successfully navigating the multiple and increasing challenges they face on our roads? Since buses are the main means of transport for the elderly, the young, young mothers with children—the less well-off in our society—should they not be valued by society as a whole for the public service they offer us day in, day out?

[Lord Davies of Gower (Con)]

I could not possibly disagree with that. I am a regular bus user and I agree that they provide a tremendous service, whether it is in our cities, towns or, indeed, our rural areas.

[Lord Londesborough (CB)]

My Lords, does the Minister agree that pedestrians, cyclists and e-scooter riders make themselves even more vulnerable and dangerous to others, including bus drivers, through the increasing and distracting use of headphones, AirPods and smartphones in general while on pavements and roads? Are the Government taking any steps to address this?

[Lord Davies of Gower (Con)]

I agree with what the noble Lord says, but it is an individual responsibility. It is not for the Government to say, “You should take care”. A Government can encourage people to take care, but it is a matter of your own assessment of the risks on the road. If you wish to wear headphones and take that risk, more fool you.

[Lord Haselhurst (Con)]

My Lords, if the present level of injuries, which has been described, continues, is there not a strong case for introducing greater regulation? In ordinary circumstances it would not be necessary, but it does seem to be very necessary in this sphere.

[Lord Davies of Gower (Con)]

There is quite a bit of legislation on reckless and dangerous cycling—the penalties are quite high—and on drinking alcohol or taking drugs while cycling. The penalties and offences are there; it is a matter of the police enforcing them.

[Lord Harris of Haringey (Lab)]

My Lords, the Minister says that it is a matter of the police enforcing them. Will he tell us how exactly they are expected to do that, given their current level of resourcing and that there is no system of licensing or, indeed, of identifying cyclists, who may simply cycle away having committed the offences to which he refers?

[Lord Davies of Gower (Con)]

The noble Lord asks how the police are supposed to do it. It is a matter of being out there and patrolling. I did it myself for 32 years, and I managed to nab a few cyclists.

National Networks National Policy Statement

Lord Davies of Gower Excerpts

Wednesday 8th May 2024 Lords Chamber

[Lord Tunnicliffe (Lab)]

My Lords, I often end up in this situation, with four or five people in the Chamber battling through statutory instruments with the Minister. I do not know how I got into this mess, but I have. Tonight, though, is different, and it has become more different as I have listened to this debate.

I was born in 1943, and I would claim to be in one of history’s most favoured generations. In my life, nobody has shot at me in anger; I have never known hunger; broadly speaking, longevity has grown in that period; general levels of health have improved; and, broadly speaking, affluence improved until, say, 2015. I remember the Cuban missile crisis and thinking, and even arguing, that all these sensible people who had been through the Second World War would not do anything silly. As I become closer to power in my old age, I realise by what a narrow margin that proved to be—just—true.

The situation we now face is worse. We have a number of wars; we have a war in the Middle East, and a war in Ukraine. Never, in decades, has the possibility of a war approaching our shores been greater. But even that pales into insignificance compared with the climate crisis. I have to get my stuff from the radio, but I believe that every day in the last year was the warmest on record, worldwide. I cannot go that far, but I have a horrible feeling that we will fail the climate crisis. We are a nation that can make our contribution, and we are backing off it; we were a leader on this whole issue, and now we are backing off it. This is just an example of how we are incrementally backing off our commitments.

I may be being unfair, so let us look at the Motion from the noble Lord, Lord Berkeley. I will read it into the record, because the more I read it, the more powerful I think it is. The key wording is,

“without carrying out the systematic review of road projects recommended by the Climate Change Committee; addressing the risk of insufficient environmental action by the Department for Transport highlighted by the National Audit Office; or joining up their policies with the missions presented to Parliament under the Levelling-up and Regeneration Act 2023”.

I want the Minister to address all three charges, because if he cannot refute them, he ought to apologise. It seems to me that those commitments were made to Parliament, and Parliament has a right to expect commitments made by Ministers to be honoured.

We have no vehicle to discuss the planning statement other than this debate, so I will finish by saying a few words about it. The issues with building transport infrastructure go deeper than the NNNPS. The question is whether this update will improve transport infrastructure delivery. While this version provides some important improvements on the 2014 version, it falls well short of providing what is needed and poses significant questions as to whether it is compatible with our climate change commitments. This risks further slowing down the planning process for major projects; the system is already moving at a glacial pace, when we should be pushing the accelerator. One of the concerns raised about the plan is that it is clearly not meeting our net-zero obligation. It contains decarbonisation promises that we already know the Government are behind on, such as the charge point target. How does the Minister plan to ensure that we still meet our 2015 net-zero target when these policies seemingly do the opposite? Does the Minister think his draft National Networks National Policy Statement is compatible with the 2021 transport decarbonisation plan?

An additional concern is the lack of roles for the subnational transport bodies. These bodies have strategic plans for their regions to both reduce carbon output and support economic growth. What further work will the Government do to ensure regional bodies are brought into transport planning? I am glad the Government accepted the Transport Committee’s recommendation that these plans be placed on a five-yearly review.

One piece of good news is that noble Lords should not have to wait long to see improvements in this policy statement, if the local election results are anything to go by. As part of its commitment to overhauling the country’s approach to planning and infrastructure, Labour has committed to updating all national policy statements within six months—and I thank the noble Baroness, Lady Jones, for pointing out that, conceptually, they are a sound idea. This sits alongside Labour’s review of Britain’s rail infrastructure, which would explore how it can not only recover from over a decade of managed decline but help us boost jobs, improve value for money and drive investment and economic growth across the country. This policy statement, thanks to the input of the Transport Select Committee and those who provided evidence, does improve on the one drafted by the Government. However, what our planning and transport systems need is a Government who are committed to delivering a system that works and is compatible with our net-zero promises.

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

My Lords, I would like to thank all noble Lords for their consideration of the National Networks National Policy Statement. I would particularly like to thank the noble Lord, Lord Berkeley, for securing the debate; he is well known for his contribution to transport policy, not least in the area of rail freight.

Our road and rail networks are essential parts of our transport system. They connect people and communities and enable the effective movement of freight. They are fundamental to our economy and our way of life. Therefore, we need to maintain and enhance these national networks. The Government set out their ambition in the 2020 national infrastructure strategy to make the infrastructure consenting process better, faster and greener. The cross-government action plan for nationally significant infrastructure projects sets out the reforms to the planning regime that will ensure the system can support our future infrastructure needs. The action plan underlines the importance of having clear and up-to-date national policy statements in order to set the strategic direction for future infrastructure schemes.

The National Networks National Policy Statement—or NNNPS, as I will abbreviate it—sets out the planning framework for taking decisions on large-scale road, rail and strategic rail freight interchange projects in England. It sets out the need for development of infra- structure, and the impacts that the proposed development must address. The NNNPS provides planning guidance for promoters of schemes on the national road and rail networks, and is the basis for the examination by the examining authority and decisions by the Secretary of State. The current NNNPS was designated in 2015; at that point there was no net-zero target, transport decarbonisation plan or biodiversity net gain requirement. The NNNPS has been reviewed to bring it up to date, so that it properly reflects the legislative requirements and policy context of today.

Automated Vehicles Bill [HL]

Lord Davies of Gower Excerpts

Consideration of Commons amendments
Wednesday 8th May 2024 Lords Chamber

Moved by

[Lord Davies of Gower]

That this House agrees with the Commons in their Amendment 1.

1: Clause 40, page 26, line 37, at end insert—
“(ca) the Welsh Ministers (in their capacity as highways authority or traffic authority);”

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

My Lords, I will speak to Amendments 1 to 11. I thank colleagues for their previous engagement and constructive approach to the Bill during its passage through this House. The excellent review carried out by your Lordships was reflected in its broad acceptance in the other place. As a result, the Government were required to make only minimal amendments, including minor technical amendments.

I begin with Amendment 1. Following constructive discussions with the Welsh Government, we tabled a clarificatory amendment to Clause 40 to include the Welsh Ministers as an authority that may be required to report on incidents within Wales. This follows clarification that Welsh Ministers are a traffic authority for the purposes of the Road Traffic Regulation Act 1984, and a highway authority for the purposes of the Highways Act 1980. In our discussions with the Welsh Government, they confirmed that they would like to see the Clause 93 powers to digitise traffic regulation orders extended to Welsh Ministers. Previously, this was an England-only measure. Amendments 5 to 8 make the necessary changes to enable this.

In various places, the Bill allows the Secretary of State or the devolved Administrations to delegate or confer functions on traffic commissioners. The remaining amendments make minor and technical changes to correct drafting errors in these areas. Amendments 2 and 10 ensure that traffic commissioners are able to recover their costs through fees made payable under the Bill when carrying out functions that may be conferred on them under operator licensing regulations. These amendments correct a straightforward drafting omission; the Bill was always intended to function in this way. Indeed, such provisions are already included in relation to the other instances where functions are conferred on traffic commissioners.

Amendments 3, 4 and 11 clarify that these receipts are deposited into the correct consolidated fund, depending on the nature of the funds. The mechanism aligns with that used for the direction of other fee receipts and is in line with previous legislation and current practice. These amendments do not allow for any new taxation; they are included to make sure that fees can be recovered, no matter who is carrying out the function, and to ensure that those fees get paid into the right place. I hope that that reassures my noble friend Lord Borwick, who wrote to me yesterday on this specific point.

These amendments also make provision so that, if the devolved Administrations were to delegate the power to receive penalties to the traffic commissioners, the receipts relating to those penalties would go the appropriate devolved consolidated fund. My officials have engaged with the devolved Administrations, who have agreed that this matter does not require a legislative consent Motion. I beg to move.

[Baroness Bowles of Berkhamsted (LD)]

My Lords, this Bill is a technical framework, with the detail largely to follow in regulations. We on these Benches have been generally supportive throughout the passage of the Bill and will remain closely interested as the detail is fleshed out in secondary legislation. We welcome the Commons amendments as improvements—in particular to reflect the responsibilities of the devolved Administrations. In the case of Amendments 5 to 8, the Government have, on this occasion, listened to the representations from the Welsh Government to extend the powers in Clause 93 to Welsh Ministers. The Bill applies to the whole of the UK, parts of which will—indeed, already do—have slightly different approaches to traffic regulation. It is therefore important to ensure that the relevant Ministers have the right powers.

On other matters, we are disappointed that some of the issues raised when the Bill was passing through this House were not agreed in the Commons amendments either. A number of amendments were tabled to the Bill about the accessibility of public transport for disabled people, but none of these proposals was accepted by the Government. It is nevertheless still crucial that disabled people are involved in the developments from this legislation to make sure that it makes transport more accessible, not less.

Similarly, Wera Hobhouse MP continued to raise the concerns that we voiced around the protection of personal data but, sadly, those concerns were dismissed by the Minister in the other place. Thus we will be particularly keen to see how the legislation addresses all the concerns that we have raised throughout the passage of the Bill and how it ensures that the rollout of autonomous vehicles will be both inclusive and innovative. I will also watch with interest how the balance between open-source and IP rights plays out.

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[Lord Davies of Gower (Con)]

My Lords, I extend my gratitude to colleagues across the House for their supportive comments on and contributions to this Bill. Your Lordships’ careful and considered scrutiny has been hugely valuable, and I hope that the House sees fit to agree the handful of Commons amendments before us today.

On the question from the noble Lord, Lord Liddle, about the timetable for regulations, I will give a brief outline. Over the coming months, we will launch a comprehensive programme of secondary legislation, building the new regulatory framework piece by piece. This will incorporate several statutory instruments, including guidance in the form of the statement of safety principles. Among the first elements to be consulted on will be regulations on misleading marketing, as these can apply before the authorisation system has been established. We expect consultation on these to commence later this year. We plan to consult on regulations for digitising traffic regulation orders in the autumn, which would come into force in spring 2025. Early work on the statement of safety principles will begin this year, as we build and review the evidence base that will underpin them. We expect to consult on the principles in 2025. The detailed regulations establishing the authorisation, operator licensing and in-use regulation functions will then follow. Full details on the programme will be made available in due course.

The passage of the Automated Vehicles Bill means that a self-driving future is within reach. It will be a future of safer roads, as self-driving vehicles remove human error as a factor of vehicle death and injury, a future where we can seize a market worth £42 billion to our economy, creating 38,000 new jobs. The Bill will ensure that the UK is at the forefront of a profound technological shift, moving us closer to a safer, more efficient and more accessible transport system that works for everyone in the country.

Motion on Amendment 1 agreed.

Moved by

[Lord Davies of Gower]

That this House agrees with the Commons in their Amendments 2 to 11.

2: Clause 43, page 29, line 19, after “State” insert “or by a traffic commissioner”

Lower Thames Crossing: Development Consent

Lord Davies of Gower Excerpts

Monday 29th April 2024 Lords Chamber

[Lord Colgrain]

To ask His Majesty’s Government whether they expect to meet the statutory timeframe within which a decision on the Lower Thames Crossing Development Consent Order must be made.

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

My Lords, the statutory deadline for a decision on the lower Thames crossing is 20 June 2024. While the department always attempts to meet its statutory deadlines, I cannot comment further on what is a live planning application.

[Lord Colgrain (Con)]

I thank my noble friend for his reply. He will know that the Dartford Tunnel on the M25 has reached its term design life and is having to be closed for repairs with increasing frequency. In anticipation of serious delays on the M25 or around the motorway network, the lower Thames crossing option was first studied by his department in 2009, with the final route announced in 2017. There have been eight subsequent public consultations with more than 100,000 respondents, with all spending on the project to date costing over £800 million.

The largest bored tunnel in Europe is now ready for commissioning, with contractors poised and with approval from all seven Kent and Essex MPs whose constituencies are affected. Can my noble friend tell the House why there is even a possibility that this project, which is forecast to make a £40 billion contribution to GDP over the next 60 years, could not receive its long-awaited and overdue consent order?

[Lord Davies of Gower (Con)]

My Lords, this is a large infrastructure project. By its nature, it is very complex and requires years of planning, consultation and analysis before it is ready to move into the delivery phrase. It is important that the Government plan projects properly, are open about the challenges and natural uncertainty of delivering a project of the size and scale of the lower Thames crossing, and learn the lessons of other major projects.

[Lord Stoneham of Droxford (LD)]

My Lords, does this issue reflect the general incompetence of the Government in dealing with large infrastructure projects, or is it due to the fact that over the last 14 years, skills shortages in the construction industry have been underestimated and not dealt with by the Government?

[Lord Davies of Gower (Con)]

As I have said, this is a very complex issue. It takes time. It requires years of planning, consultation and analysis: it is as simple as that. Further than that, I cannot comment.

[Lord Haselhurst (Con)]

My Lords, is my noble friend the Minister ready to concede that progress with this project is of great importance and will at least provide evidence to people in East Anglia that they are part of the levelling-up programme?

[Lord Davies of Gower (Con)]

I recognise that this is a very important project. It will be of great advantage to many people, both north and south of the Thames.

[Lord Liddle (Lab)]

My Lords, is this not a classic case of how the planning system in Britain is fundamentally broken? It started in 2009 and we do not have a decision by 2024. How can it make sense to have spent hundreds of millions of pounds on a project when the Government have not actually given the final go-ahead?

In the 1930s, when Herbert Morrison faced opposition to the plans for Waterloo Bridge, he described the Conservatives as “Mr Dilly, Mr Dally and Mr Can’t”. Is that not the case with this Government—dilly, dally, can’t?

[Lord Davies of Gower (Con)]

That is a wonderful history lesson; I am most grateful to the noble Lord. The majority of decisions made by my department and applications for development consent orders have been issued within the three-month statutory deadline that starts from receipt of the recommendation report. That will hopefully be the case with this.

[Lord Naseby (Con)]

Surely my noble friend recognises that this crossing, which complements the Dartford Crossing, is vital to our exports. After Question Time today, will he find out exactly when that decision will be made and publicise it for the nation’s exporters, if for nobody else?

[Lord Davies of Gower (Con)]

Several references have been made to the Dartford Crossing. Approach roads from the west and the east are already heavily congested, so traffic would not be able to reach a new crossing provided at Dartford. The approach roads and the M25 are in a heavily built-up area; increasing their capacity would be massively expensive and require the demolition of many houses and other buildings. All options at Dartford require rebuilding junctions and widening the A282 and the M25, which would be very disruptive over a long construction period.

[Viscount Stansgate (Lab)]

My Lords, has the Minister been over the Dartford Crossing recently? Does he know how difficult and congested it can be? I agree with the comment that it is very damaging to the economy to have a massive collective traffic jam day after day. If the Government fail to make the statutory decision by the due date that the Minister has given, what will happen? Have the Government taken into account the economic damage done by the existing situation at the Dartford Crossing and the benefits that the new Thames crossing will bring?

[Lord Davies of Gower (Con)]

I know the crossing well and I am very conscious of the issues around it. It is a large infrastructure project, so we must get it right.

[Lord McLoughlin (Con)]

My Lords, the simple fact is that this is one of the largest planning applications that has been put before this country; I believe it runs to more than 359,000 pages of requirements. Perhaps my noble friend can reassure us that, following this project, there will be a review of the way in which planning applications are handled. It is very reassuring to hear people from Liberal and Labour Benches say that it should be facilitated much faster. I am not sure whether the local Liberal party has been as supportive of this project as the Liberal Benches in this House seem to be today.

[Lord Davies of Gower (Con)]

It is a huge project at £800 million, and the current most likely cost of the project is estimated to be £8.3 billion. I will take the noble Lord’s comments regarding planning back to the department.

[Baroness Watkins of Tavistock (CB)]

My Lords, can the Minister comment on the situation with regard to the Hammersmith Bridge, which is a much smaller project but is creating great difficulties for emergency vehicles in reaching hospitals and for police in reaching people living in certain parts of south-west London?

[Lord Davies of Gower (Con)]

I am very conscious of the issue around the Hammersmith Bridge, but it is of course an issue that concerns the local authorities; it is a matter for them to resolve.

[Lord Grocott (Lab)]

My Lords, will the Minister reflect on a more recent history lesson relating to the present Question—the experience of HS2? The planning application was delivered, the parliamentary procedures were concluded and considerable—if not vast—expenditure was made on the purchase of properties and costs involved in the route. Yet this Government—at a minute to midnight of the project’s completion—pulled the plug, on a Prime Minister’s whim. What hope is there for any other major infrastructure policy being completed under this Government when that lesson has not been learned?

[Lord Davies of Gower (Con)]

I note the noble Lord’s frustration over planning, but HS2 is outside the scope of this Question.

[Lord Harries of Pentregarth (CB)]

I have a question about the Hammersmith Bridge. The Minister quite rightly referred to Hammersmith and Fulham’s responsibility, but the Government also have a major responsibility and they set up a task force. Can the Minister say when that task force last met?

[Lord Davies of Gower (Con)]

I recall answering this question from the noble and right reverend Lord some time ago. I cannot remember the date, but I will certainly look it up and write to him.

[Lord Davies of Brixton (Lab)]

My Lords, for the avoidance of doubt, I am not currently answering Questions from the Front Bench, although I hope that it is simply a matter of time.

[Baroness Wheatcroft (CB)]

Can the Minister tell the House how many people in his department are currently working on this important project and how many of them he fears might lose their jobs to pay for the increased defence spending?

[Lord Davies of Gower (Con)]

No, I am afraid that I cannot.

[Lord Watts (Lab)]

My Lords, does the Minister remember that, when the Conservative Government took power, they ended the concept of a national policy group that would look at major infrastructure schemes and make sure that Britain was able to deliver those schemes in a quick and meaningful way? Does he agree with me that that was a massive mistake and that they should look at this issue again?

[Lord Davies of Gower (Con)]

I hear what the noble Lord says and will take his views away to the department.

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.