Highways (Financing) Bill (Fourth sitting) Debate

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Department: Department for Transport
Greg Smith Portrait Greg Smith (Mid Buckinghamshire) (Con)
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It is a pleasure to serve with you in the Chair this afternoon, Ms Lewell. Let us see if we can rise to the Minister’s challenge of maintaining this morning’s quality of debate.

Amendment 49, tabled in my name and that of my hon. Friend the Member for Bognor Regis and Littlehampton, essentially requires the ORR to review each licence at least every five years and to publish that review. The review would include compliance, user satisfaction, value for money, financial performance and resilience, toll returns and—continuing a theme of some of the amendments we discussed this morning and that flows through the entire Bill—the effects on surrounding roads off the trunk road network and the strategic road network that are the feeders to the new infrastructure: the lower Thames crossing and potentially others that the Bill enables.

I put it to the Committee and particularly to the Minister: why should a long-term licence not be subject to a mandatory review period published at least every five years, although I am open to other suggestions on the period? This is something that will impact motorists from across the whole country, particularly in the case of the lower Thames crossing. The hon. Member for Dartford has already expressed concerns about the impact on local roads. If a licence is granted for much longer than that—and I cannot see how it would not be, in order to bring realistic commercial payback under the tolling arrangements—what if it is a complete disaster? What if things do not pan out as everyone expects them to?

We do not want things to go wrong, but let us face it: sometimes they do. Often they do not go wrong due to any eventuality that has been foreseen. We would not have done it in the first place if there was a plan that saw things going wrong. But when things do go wrong, we need clear answers from those accountable to those paying the tolls on these roads, and indeed to the Government who will have set up the scheme in the first place. That goes in many respects to the conditions that the Minister spoke to in clause 6 around timely notice.

I gently say to the Minister: yes, it is important for an operator to get timely notice of any change, whether that is termination of a licence as it comes up to its expiration or an extension, but what is missing in clause 6 is anything that addresses the point about things going wrong. What if the Government need to step in and salvage a pretty horrendous situation that we might conceive of in future?

Jim Dickson Portrait Jim Dickson (Dartford) (Lab)
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The hon. Member is making a good case; clearly, things need to run well in the interests of road users, the infrastructure provider and local residents. However, clause 11 already provides for the modification of the licence after the grant, which surely includes most of the things he is calling for—that is, an ability to issue a notice and to say that the licence needs to be modified for some reason to do with the operation of the infrastructure.

Greg Smith Portrait Greg Smith
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I am grateful to the hon. Gentleman for that intervention. He is right that there are measures in clause 11 that would address that issue, but we are currently discussing clauses 5 and 6, and the Minister’s comments reflected the fact that clause 6 only refers to extensions of a licence as opposed to reviews of a licence.

I cannot imagine that any of us, whatever walk of political life we find ourselves in at any one moment, would not want to have a statutory review period, so that all of us can question whether a contract is working as well as we want it to. Frankly, there are many projects I can think of that I wish we had had review periods for in the past, because we might have been able to pick up things that were going the wrong way.

If the Minister and the Government do not wish to have a five-year review period, I would welcome suggestions about what sort of review period would be acceptable to them. If they do not want a review period at all, there needs to be a pretty good case for that.

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Justin Madders Portrait Justin Madders
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I am grateful to the hon. Lady, but I would say that she is making my case for me: we need to keep up with important changes and risk in the cyber-security world. That is why keeping the Bill as technology-neutral as possible is important, because we simply do not know what will be coming next. Giving operators the flexibility to be able to determine what technology is used is an important part of cyber-security moving forward.

Amendment 53 would insert specific consultation requirements into the Bill before a toll can be set. I agree that local communities and those who use the tolls should have a voice. The question is not whether they should have a voice, but how best to secure that engagement within the Bill’s framework of independent regulation. As it stands, the framework places responsibility with the regulator to set tolling requirements through its code and licence conditions, and to enforce compliance. Consultation requirements should sit within those arrangements, rather than be prescriptive in the Bill.

In exercising its functions, the ORR must have regard to the principles of transparency, accountability, proportionality and consistency, and keep the interests of users at the heart of its decision making. That is an important safeguard in the Bill, and I hope that it addresses some of the shadow Minister’s concerns. He will know that the Bill establishes a stakeholder group that will directly advise the ORR. Again, I hope that will address the point about the voices of users being heard in this process. I do not believe that the amendment would improve engagement. Instead, it would constrain the regulator’s discretion to determine how best to take forward individual users’ voices, so I ask the Member not to press it.

Jim Dickson Portrait Jim Dickson
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Without wishing to prolong proceedings, it is very important that the exact level and differential of tolls between the Dartford crossing and the lower Thames crossing—this legislation is being used to construct the lower Thames crossing—is properly considered. My constituents are particularly keen that there should not be a differential between the two crossings so that a financial incentive is created to use one rather than the other, somewhat negating the fact that we have the new infrastructure in place. We need to try to balance the traffic between the two crossings, and tolling will obviously be an important part of that. Would the Minister note that? Perhaps we can ensure collectively that that is in the thinking of the licence holder going forward.