Automated and Electric Vehicles Bill (Seventh sitting) Debate

Full Debate: Read Full Debate
Department: Department for Transport
Karl Turner Portrait Karl Turner
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I beg to ask leave to withdraw the clause.

Clause, by leave, withdrawn.

New Clause 12

Review of impact of Part 2

“(1) The Secretary of State must, within 12 months of this Act receiving Royal Assent, lay a report before Parliament setting out the impact of regulations made under Part 2 on—

(a) the number and location of charge points in the United Kingdom,

(b) the resulting uptake of electric vehicles in the United Kingdom, and

(c) the manufacturing of electric vehicles in the United Kingdom.

(2) Before exercising their duties under subsection (1), the Secretary of State must consult the Scottish Government, the Welsh Government and the Northern Ireland Executive and have regard to their views.”—(Alan Brown.)

This new clause would require the Government to produce a report examining the uptake and manufacturing of electric vehicles in the United Kingdom.

Brought up, and read the First time.

Alan Brown Portrait Alan Brown (Kilmarnock and Loudoun) (SNP)
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I beg to move, That the clause be read a Second time.

It is a pleasure to serve under your chairmanship, Sir Edward. I apologise for being late; I am glad I got here in time to make some comments. New clauses 12, 13 and 14, when looked at in the round, encompass a common theme: ensuring a proper UK-wide approach and commitment to reviewing the policy’s implementation and effectiveness across all nations of the UK, in terms of the roll-out and uptake of electric vehicles.

I appreciate that the Minister appears to be a listening Minister who reflects, reviews and advises as appropriate. That has been evident throughout the Committee. I also appreciate that he has already made a number of commitments, but the reality is that nothing is absolutely certain unless it is in the Bill. In February 2016, as part of the Enterprise Bill Committee, I was urged not to push an amendment about cash retentions to a vote and was assured by the then Minister that the issue would be resolved by the end of 2016. We are now a full year on from that deadline and the Government are consulting on a previous consultation. That is proof that Ministers and commitments come and go, which is why we are trying to incorporate these measures into the Bill.

New clause 12 would require a binding 12-month review of the impact of the regulations and ensure that the views of the devolved nations are taken on board. For example, the Scottish Government are creating their own strategy for the uptake of ultra low emission vehicles, which they are linking with the Scottish energy strategy, which is obviously a common-sense alignment. It is important that the Scottish Government’s 2032 target for phasing out new petrol and diesel cars is not undercut by a UK Government strategy. A further example is that the Scottish Government are offering interest-free loans and free infrastructure installation over and above UK Government grants.

It is quite clear that the UK Government and the Scottish Government can and will work together on future strategies. That could include, for example, the UK Government introducing a vehicle scrappage scheme. New clause 12 would therefore formalise that aspect of working together towards a common goal in the long-term future.

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Alan Brown Portrait Alan Brown
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I certainly welcome the Minister’s assurances and his comments. I still have the slight feeling of having had my fingers burnt in the past, but I recognise the genuine commitment from him and I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 13

Report on electric charging points

“(1) The Secretary of State must, within 12 months of this Act receiving Royal Assent, lay a report before Parliament setting out a UK-wide electric charging point strategy that must include, but is not limited to, a strategy for establishing charging points for —

(a) domestic properties,

(b) urban and rural settlements, and

(c) the road network.

(2) Before exercising their duties under subsection (1), the Secretary of State must consult the Scottish Government, the Welsh Government and the Northern Ireland Executive and have regard to their views.”—(Alan Brown.)

This new clause would require the Government to consult with devolved administrations and produce a report setting out a UK-wide strategy for electric charging points.

Brought up, and read the First time.

Alan Brown Portrait Alan Brown
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I beg to move, That the clause be read a Second time.

New clause 13 would formalise the need for a reporting strategy for establishing charge points covering the varied demographics and geography of the UK, and would include differentiating between rural and urban areas. I appreciate that the Minister has spoken at length about the commitment to consider how we can roll out so as to ensure that rural areas are not left behind.

Again, this is about ensuring a UK-wide approach and picking up on other investment required for rural areas, which I have touched on before, such as mobile coverage upgrades. Additionally, as other hon. Members have highlighted, a strategy for domestic properties needs to be developed covering solutions such as charging points accessible to terraced houses and flats, and possibly roll-out in future developments, so that infrastructure is incorporated as new developments take place. We also need to consider the road networks and allow best practice to be rolled out fully across the UK. That is the idea behind the clause, and I look forward to the Minister’s response.

Matt Western Portrait Matt Western (Warwick and Leamington) (Lab)
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As I did on Second Reading, I want to re-emphasise the point about the provision for other forms of electric vehicle—the Minister and I have had conversations elsewhere about it—particularly in the provisions for EV buses, for example, and cycles.

We are facing a revolution, not just in cars but in all forms of mobility. It is incumbent on us to recognise that at this juncture we should be thinking about how to integrate those needs into the Bill, and specifically about infrastructure. We have talked about where sites might be located, and about commercial properties, but we should be thinking specifically about the infrastructure needed for buses in our town centres. I urge that that be incorporated into the new clause as well.

Alan Brown Portrait Alan Brown
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I welcome that intervention. It is a valid point; we need to look at the wider considerations. Buses and other vehicles are the biggest polluters in terms of NOx, so it is certainly an important consideration. As I said, I will be happy to hear the Minister’s response; I hope that it will encapsulate these issues as well.

John Hayes Portrait Mr Hayes
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In 2013, as the whole Committee, including the hon. Gentleman, will know, the Government published “Driving the Future Today”, which set out the path to achieving zero-emissions vehicles. It was Yeats, my favourite poet, who said that

“Happiness is neither virtue nor pleasure nor this thing or that, but simply growth. We are happy when we are growing.”

The growth of new kinds of vehicles has been almost unremitting since that publication. The facts speak for themselves. There are around 10 times more ultra low emission vehicles registered in the UK than in 2013, so although the aims of the strategy published then remain the same, the hon. Gentleman is right that we need a new one. I have thought about it since I read his new clause and since hearing the arguments made from both sides of the Committee. We shall publish a new strategy that will include all vehicles. The hon. Member for Warwick and Leamington is right: we have had private discussions about this and he has made representations to me. We will start work on it now, because I do not want to delay—I am casting an eye only at the politicians in the room, by the way. Shall we say that we will have it completed and published by March? That would be well within the time in which the Bill is being considered. On that basis, I hope the hon. Member for Kilmarnock and Loudoun will withdraw his new clause.

Alan Brown Portrait Alan Brown
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As the Minister says, the facts speak for themselves. I certainly welcome that review and that forward direction. I would also be grateful if he wrote to the Committee to confirm the timescale and the terms of reference.

John Hayes Portrait Mr Hayes
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indicated assent.

Alan Brown Portrait Alan Brown
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On that basis, I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 14

Report on impact of electric vehicle charging points on energy consumption

“(1) The Secretary of State must, within 12 months of this Act receiving Royal Assent, lay a report before Parliament on the impact of charging points on—

(a) energy consumption,

(b) grid management, and

(c) grid storage capacity.

(2) Before exercising their duties under subsection (1), the Secretary of State must consult the Scottish Government, the Welsh Government and the Northern Ireland Executive and have regard to their views.

(3) As well as consulting those in subsection (2) the Secretary of State must consult with—

(a) the National Grid, and

(b) any other such persons as the Secretary of State considers appropriate.”—(Alan Brown.)

This new clause would require the Government to consult with devolved administrations and produce a report on the impact of energy consumption as a result of increased number of electric vehicles in the UK.

Brought up, and read the First time.

Alan Brown Portrait Alan Brown
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I beg to move, That the clause be read a Second time.

The Minister’s comments on new clause 13 almost make mine on new clause 14 superfluous, because some of the matters that I will raise can be incorporated as he outlined. New clause 14 returns to the theme of assessment and understanding of the impact of uptake on the energy network. We know that spikes in electricity usage are predicted while vehicles are being charged, but there is a huge variation among analysts’ predictions of how big peak surges could be. It all depends on when electric vehicles are plugged in and charged. We heard in evidence from the National Grid that it does not think the surge will be as large as predicted by many other analysts, who say that it will completely overwhelm the network.

The facts speak for themselves, as the Minister said. The number of electric vehicles on the road is still at a low point; we will fully understand the impact on the grid only once the uptake of electric vehicles has increased massively. That proof will be really important, and it is important that the Government review how uptake works in practice. What will the increase in peak electricity demand be? What impact will that have on the National Grid? What upgrades will be required? How will that feed into smart grid charging strategies and future energy storage requirements? All those questions need to be taken into account.

New clause 14 sets out a 12-month timescale, but at the predicted rate of uptake of electric vehicles, we will probably still not understand the full impact on the grid of people’s behaviour in that time. The roll-out of electric vehicles may be patchy across the UK, so on reflection I must admit that even 12 months might not be enough. However, I hope that the strategy assessment that the Minister mentioned in his remarks on new clause 13 could also incorporate consideration of this issue, with a commitment to further reviews in future.

Oliver Letwin Portrait Sir Oliver Letwin
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I am delighted that the Minister is talking to the National Grid and others. I entirely sympathise with the hon. Gentleman’s desire to see a transparent product of those discussions: a continuous published analysis of impacts.

There are two kinds of impact. The hon. Gentleman mentioned the adverse impact on the grid from peak moments early in the morning or late in the evening, and in winter there is a lot of fast charging, which will increase the peak effect. However, I am much more interested in the other kind of impact, which I see as much more serious: the benefits, which many of us have seen for some years, that the National Grid anticipates from peak shaving. Night-time, and indeed daytime, vehicle charging can be switched off at moments indicated as economically advantageous to the car owner by the half-hourly settlement price. It is also highly economically advantageous for the grid to have reduced demand at such moments, avoiding the need for additional power. That would transform the economics of intermittent energy supply, including through renewables, for example solar, which are currently not regarded as having any contribution to capacity. I am very much in favour of new clause 14’s general principle; I am sure the Minister is about to assure us that he will fulfil that principle through regular publications.

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John Hayes Portrait Mr Hayes
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It is indicative of the generosity that typifies your stewardship of this Committee, Sir Edward, that you have allowed us to speak about the new clause, arguably tangentially but not in a way that is not helpful to our consideration. I will return to the argument of the hon. Member for Kilmarnock and Loudoun in a second, but the remarks of my right hon. Friend the Member for West Dorset are reminiscent of the conversations that he and I had many years ago when I was the Minister responsible for energy and when we unsuccessfully attempted jointly to address these matters.

My right hon. Friend is right to say that it is important that the Bill creates the necessary means by which powers could be taken, should they become necessary, to deal with the flow of information in the way he described. He will know well, having studied the Bill in detail, that although clause 11 and clause 11(2) in particular suggest that the Secretary of State can indeed take powers that he considers necessary, those powers are defined as being

“likely to be useful to users or potential users”

of a charge point. Moreover, there is nothing in clause 12 that specifically addresses the argument that my right hon. Friend just made.

In the light of that I am minded to consider a minor technical Government amendment, which either adds a further Roman numeral to the list or amends one there already, to be certain that the Secretary of State taking the powers detailed in the Bill could do so for the purpose that my right hon. Friend set out. I hope that will be sufficient to persuade him not to become rebellious and, even if the hon. Member for Kilmarnock and Loudoun, who I am about to try to satisfy, withdraws his new clause, bring something potentially destructive to bear, thereby changing the whole atmosphere of this extraordinarily convivial Committee.

I think the hon. Member for Kilmarnock and Loudoun is right again, if I may say so. It is certainly true that the strategy that I described, which we will bring in with vigour and rigour, with diligence and alacrity, should include the manufacture or use of electric vehicles. That is a given. It needs furthermore to relate that to the Government’s environmental objectives, which I spoke about earlier—our desire to create a low emission vehicle environment that is helpful to our broader air quality plans. However, he is also right that consideration of the matters brought up by his new clause must be part of that broad sweep or strategic approach. So, again, he does us a service by highlighting that.

I will take that point away and I hope that by the time we get to the next stage of our consideration of the Bill I will be able to say a little more about the characteristics of the strategy. On that basis, I hope that my right hon. Friend the Member for West Dorset and the hon. Member for Kilmarnock and Loudoun will feel that I am going not the extra foot or yard but the extra mile to ensure that their wishes are granted.

Alan Brown Portrait Alan Brown
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It is often asserted that the SNP is never satisfied in this place, but I am certainly satisfied with the Minister’s remarks and with that direction of travel, so I beg to ask leave to withdraw the new clause.

Clause, by leave, withdrawn.

New Clause 15

Liability of insurers etc where accident is caused by automated vehicles in convoy

“(1) That the Secretary of State must set out in regulations liability for insurers and other parties where an accident is caused by automated vehicles driving themselves in convoy.

(2) These regulations must make provision for—

(a) a definition of automated vehicles driving themselves in convoy,

(b) determining liability of insurers and automated vehicle owners in cases where—

(i) the automated vehicles travelling in convoy are insured, including where the vehicles may be insured by different companies;

(ii) one or more of the automated vehicles driving in convoy are not insured.

(c) resolving liability disputes where automated vehicles are driving in convoy,

(d) ensuring any compensation received by the injured party in such accidents is not delayed by liability disputes.

(3) Where a statutory instrument contains the first regulations made under this section, the instrument may not be made unless a draft of it has been laid before Parliament and approved by resolution of the House.

(4) A statutory instrument containing regulation under this section that is not the first such regulation made under this section, is subject to an annulment in pursuance of a resolution of either House of Parliament.”—(Clive Efford.)

Brought up, and read the First time.

Clive Efford Portrait Clive Efford (Eltham) (Lab)
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I beg to move, That the clause be read a Second time.

The Committee will be pleased that this is the last of my amendments and my last contribution to the debate. It has been a pleasure to be on the Committee under your chairmanship, Sir Edward; please pass on my regards to Mr Bailey. I also thank the Clerks for their assistance in loaning me a few of their grey cells, from their humungous brains, to draft my ideas for amendments and make them legible; I am very grateful for their assistance.

The Bill attempts to make it easy for an injured party to claim in the event of an accident. That is necessary because we are opening up the insurance industry and disputes in the event of an accident to considerations that have not been part of our road system in the past. That is, we are bringing manufacturers further into the possible area of liability than they have been before, because vehicles will be controlled not by people but by machinery and computer software. Software designers may even be dragged in to these disputes.

As we heard in our evidence sessions, in some circumstances these automated vehicles will be connected and moving in convoy. It is an interesting concept that vehicles moving in convoy will communicate with one another, as is how they will share information and how that information will be used. When we look out of our vehicles, we see the immediate environment around us, but if vehicles are travelling in convoy and communicating with one another, they can see the road ahead exactly as it is seen by the vehicle at the head of the convoy. So, if something is amiss in the first vehicle with the data or the design of the software, or if there is a glitch, that will affect the vehicles further down the line.

When we discussed this issue at our last sitting, the potential hacking of the software was mentioned. If there is hacking, the driver of the vehicle cannot therefore be held responsible—he or she did everything they could to make sure the vehicle was roadworthy—and the manufacturer of the vehicle and the designer of the software may say, “Well, we did everything that was reasonable”. Helpfully, the Minister has written to us to say that in those circumstances the insured person—the person who took the vehicle on the road—is the responsible party.

However, in those circumstances the situation will become more confused and, again, this is an area that the Government need to consider, because who is responsible when we know that the vehicles are not necessarily driving themselves as they are communicating with one another? The assumption in this Bill is that the insurance companies will pay out and it will all be sorted out afterwards, but we know that that is not true.

My daughter had a collision. No one was injured, but her vehicle was damaged. Only when the two insurance companies had sorted out the blame—that is, who had caused the dent in the vehicles—was the claim settled. That took several months, during which time she was driving around in a brand-new damaged vehicle. The insurance company did not pay out straight away, so under circumstances in which consideration of who is responsible could be quite complicated—particularly instances where several vehicles were travelling in convoy—it could take some time for insurance companies to settle who should pay in the first instance. The Bill needs to protect the consumer—both the insured, and the third party, who may be the injured party. We could be creating a situation where no party is paid for some time while those complications are sorted out.

With these automated vehicles, which will be communicating with one another on the road, we are introducing an area that needs further consideration. I am not suggesting for a minute that the Minister should have the answer now—not even on the bit of paper that he may be passed in a few seconds—but I do think that this matter is worth further consideration by the Government, particularly as the Bill progresses through both Houses. We may well come back and look at this complication in more detail at a later date, so that we ensure that we are protecting the consumer—both the insured, and the third party.

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Karl Turner Portrait Karl Turner
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Further to that point of order, Sir Edward. I thank you and Mr Bailey for chairing the Committee. I also thank the Clerks. Without their assistance, I would have struggled a great deal, having come to the brief relatively recently. I also thank the officials, who have been extremely supportive with my colleagues in my office and have helped a great deal, even by just having telephone conversations about certain amendments that we planned to table. I also thank the Minister for the discussions that we have had both privately and publicly on the issues that we have been debating.

Alan Brown Portrait Alan Brown
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Further to that point of order, Sir Edward. I, too, want to put on the record my thanks to you and Mr Bailey for chairing the Committee. I thank the Clerks for their assistance and helping with amendments. I realise that they had to be robust in terms of keeping to the guidelines of the Bill, and I appreciate the guidance that was given. I thank the Minister, who certainly seems to have listened and engaged. He has a good way of getting us to withdraw amendments with a mix of humour, appearing to listen, and a wee bit of flattery thrown in at the start just to keep us off guard. It has been an enjoyable process and I thank everyone involved.

None Portrait The Chair
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On behalf of Mr Bailey, myself and the Clerks, I thank all Committee members for attending. I am thankful for the remarkably good nature of the debate, for the mellifluous tones of the Minister, and for the good nature of the Opposition spokesmen. Whether we will end up with Hayes hooks, Turner turnkeys or something that alliterates with Leigh, we do not know, but there have been some good moments. I look forward to one of Sir Greg’s old cars colliding with Sir Oliver’s 100-mile convoy. I thank you all. We have not deviated too far into the realms of Ruskin.

Bill to be reported, without amendment.