Automated and Electric Vehicles Bill (First sitting)

Debate between John Hayes and Graham P Jones

Tuesday 14th November 2017 Public Bill Committees

[Graham P. Jones]

Will the Minister give way?

[Mr Hayes]

I will in a second.

In the end, the clause aims to protect insurers from a negligent person who intentionally fails to update their vehicle. For the sake of clarity, I offer the parallel of someone who fails to ensure that a vehicle they drive now is safe—who fails to take the proper precautions or make the proper arrangements to ensure that their vehicle can be safely driven when they go out in it. So it will be with autonomous vehicles and the software that relates to them. That is the purpose of the clause, but I am not entirely convinced by the advice that I have had on it yet. The civil servants in the room—I know I am not supposed to acknowledge them—will have a shiver going down their spine. I want to reflect more on it. I think we are right and I am sure what I have said is right, but I may have more to say on it. I am happy to reflect on it and come back to my hon. Friend the Member for North Warwickshire if there is more to be said.

[Mr Hayes]

With laser-like precision, my hon. Friend has focused on exactly the reason why I want to reflect on it. I thought that that was what he might say and that was what he meant when he first spoke. Although the response I offered him goes a fair way towards what he was seeking, I need to clarify that additional consideration for him. In the end, that will bring us back to the point close to the heart of all insurance considerations: how we discern liability and negligence. I want to be more precise about the second point that he raised, but I do not yet feel confident to do that. I will now give way to my old friend—the veteran of many Committees with me.

[Graham P. Jones]

I am grateful for the Minister’s warm words. To return to the issue of GPS mapping updates, people expect the road network to be updated on vehicles, but the scenario is completely different for manual operation compared with automated operation. I hope the Minister is aware that most of the operated maps sit in the private sector. That is not an issue if the car is manually operated because the driver always has discretion as he sees the road in front of him, but that is not the case in automated mode. We have to think about our highways workers or our police force who may be intervening in the road network.

When we talk about updates, serious consideration needs to be given to GPS maps in automated mode. Who is responsible for them? Who owns them? Who will update them? How will we ensure that we have road safety? Updates are vital, but GPS mapping is particularly vital. The Minister needs to take a good look at that and how it will be integrated into the insurance industry and into the Bill and the regulations to protect our people working on the roads.

[Mr Hayes]

As I say, the hon. Gentleman is a veteran of many Committees. We have rarely crossed swords, but we have certainly waved swords at each other from time to time. He makes a sound point which is precisely why we would need to address a range of those issues in further regulation. At this juncture, I do not think we can think about adding that to the Bill. I know he did not say we should, but he did say that we should think about those matters and look at how they relate to this Bill subsequently. He is absolutely right.

At the risk of opening up a new avenue for discussion—I hesitate to do that because I know we want to make reasonably rapid progress today—the hon. Gentleman might also have raised the issue of the interface between the driver and the road, and the technology on the road. As we move towards smarter roads, there will be an increasingly close relationship between the information received in the car from outside, as well as the information that is at hand within the vehicle. That is another area where there will be a connection to automated vehicles. We are already seeing the regular use of gantries across roads that provide information. The interaction between that information, the car, and the information that is available locally will, over time, become an increasing feature of driving.

This is another area in which regulation will—in exactly the way the hon. Gentleman described—need to address how that works for automated vehicles. The assurance I give him and others is that we recognise these challenges, we anticipate further work, we know that work is ongoing and it will be set out, both in the formation of international standards for a type-approval process that I mentioned, and in the regulation we will introduce that matches that development.

--- Later in debate ---

[Sir Oliver Letwin]

I am grateful again to the Minister. Yes, exactly: I had been worried about two cases, one in which the person sitting in the driving seat was the owner, and the other in which the person sitting in the driving seat was not the owner but was covered by a policy covering the driving of other cars. In both instances, I think it is clear.

The reason I am labouring these points and asking the Minister to confirm them is that I do not think that any ordinary human being reading the Bill would have the slightest clue that this is what it is trying to do. I think its architecture has been forced on it by the desire to piggyback on the Road Traffic Act; and I suspect that lawyers will understand, because they will be familiar with the Road Traffic Act and how its principles operate. Therefore, I am satisfied that probably this is the right way to structure the Bill. In any case, it is certainly structured in a way that, when everything is read together in the right way, does not create the gap that I was worried about, as the car moves between automated and non-automated mode. That was the critical issue.

[Graham P. Jones]

It is a pleasure to serve under your chairmanship, Mr Bailey. I seek clarity from the Minister—I know he has been reasonably descriptive up to a point—on the types of vehicles that will and will not be insured. It will probably be connected and automated vehicles, automation level 4 and 5; however, I am concerned about the size and shape of the vehicles and how the legislation will fit them in the future.

There has been an issue about insuring automated vehicles, not just on public but on private land. However, even on public land, are there situations where we might see a size of vehicle—my hon. Friend the Member for Kingston upon Hull East drives a very small electric vehicle, and there might be even smaller ones—on parts of the road network that had become accessible to new types of electric vehicle, and where we might suddenly need to reflect on the type of insurance? They may get down to the size of a bicycle, for example—I do not know—so are there circumstances or situations where the shape and size of the vehicle would have some effect? I suppose that relates to the definition of level 3 and 4 automation. I know that the Minister will produce a list in future guidance, but I would welcome a clarification from him on shape and size, how the Government see that changing and whether they will be responsive to that.

Going back to insurance on private land, this causes an enormous problem, quite apart from my earlier point about mapping. The legislation says that vehicles must be insured on public and private land—although there are some discrepancies around private land. How will this work with automated vehicles? If we multiply that by the fact that the shape and form of automated vehicles may change—they may be able to go down narrow footpaths, for example—where are the Government on the insurance system? How it will work with automated vehicles accessing private land? I am asking for clarity on this point. I do not know the answer; I am probing the Minister to see if he does. There seems to be a complex minefield of issues when it comes to insuring an automated vehicle—of whatever shape, form or function—that can wander off on to private land. There does not seem to be much clarity in the Bill on that. It seems to be hanging on the old legislation for traditional motor vehicles as we know them and how they are insured on the current road network.

Turning to automated vehicles, in particular on private land, and their shape and form, this will clearly be a challenge, so will the Minister clarify how the Government will respond? Again, I come back to the mapping issue. There will surely need to be tighter definitions of where automated vehicles go and what they are allowed to do. There seems to be no reference to that in the guidance or anywhere else. Will the Minister provide some clarity? People want to know. It is not just about the public highways, motorways, A roads and B roads. It is far bigger than that and the insurance system has to cope with insurance off-road, on private land.

[Mr Hayes]

By way of adding a certain excitement to the proceedings, I shall deal with the last point first, rather than reply to the points made in chronological order.

The hon. Member for Hyndburn spoke about where vehicles might be used, and the size and shape of vehicles. He was right to identify that it may be—note the emphasis on “may”—that autonomous vehicles at the beginning of their life on our roads are typically used in certain places and in certain ways. One can easily imagine a vehicle in autonomous mode travelling on a long straight road—a motorway, for example. It could be that that is the way the technology will develop. He is right to draw attention to that because it has been written and spoken about many times in the discussions about autonomous vehicles. He was also right to raise the matter of shape and size. Earlier in our considerations, we discussed vehicles other than private cars. Of course we should not assume that autonomous vehicles will simply be private motor cars. There will be other kinds of autonomous road vehicle and it may be that they will develop first, or at least in parallel with the development of private cars.

The hon. Gentleman is right that that could well be where we are heading, but the essence of his argument is that we might have to have different insurance policies to deal with those different eventualities. That will not result from the measure before us; the size and place considerations—the type of vehicle and where it is used—will be the same as in the current insurance framework, most of which is covered by the Road Traffic Act, so I do not anticipate a huge departure from existing practice.

In essence, insurance works on the basis of insuring people, to some degree taking account of what they are driving—for example, policies take account of the size and shape of vehicles. I do not imagine that that will change and nothing in the Bill suggests otherwise. I anticipate—the insurance industry told us this in evidence submitted to the Committee—that the industry wants enough certainty from the Bill to develop products that are fit for purpose. My judgment, from what we have been told, is that the industry will want such products to mirror as much as possible what is available now. Certainly that is true of where vehicles are used and of their shape and size.

[Graham P. Jones]

I was simply probing the Minister because the use of automated vehicles on private land is an interesting area on which the Government must be probed. I also made some other small points. I urge him to clarify whether he foresees any situations, beyond what is in regulation or statute now, where automated vehicles on private land may provide a challenge that the Government will need to look at.

--- Later in debate ---

[Mr Hayes]

I will deal with the private land point in a moment.

To re-emphasise: when we insure a vehicle at the moment, the questions we are asked by the insurer are not about where we intend to drive it—we are not interrogated about whether we will drive the vehicle on the motorway, on side roads or only in our village. That is not typically what happens with an insurance policy, although there are exceptions. Someone with a historic vehicle, for example—a classic or vintage vehicle—might well take out an insurance policy stipulating that the vehicle will only be used for a certain number of miles in a given period, paying a lower premium as a result. If people say that they will use their vehicle only on high days and holidays and that it will be driven for less than 100 miles a year, of course they will obtain a different kind of policy, often offered by a specialist provider. That, however, is an exception. As a rule, we are not interrogated about where we are going to drive, whether it be on a main arterial route or a side route, so I do not think that the insurance products that I hope are developed as a result of the Bill will, in those terms, be very different from what we have now.

That is certainly what the Association of British Insurers and others have told us. The evidence to the Committee emphasises not only the insurance industry’s support for the Government proposals, but its wholehearted support for the development of autonomous vehicles. The industry sees it as critical that we get the legislation on to the statute book so that it can develop the products necessary to provide the safety and security we all seek.

[Graham P. Jones]

I am grateful to the Minister for giving way one last time. To pursue this matter, let us say that an accident occurs on private land while the vehicle is in autonomous mode. Does he think that the existing regulatory framework is sufficient for insurers, or that some changes will be needed for assigning liability should there be an accident on private land? An automated vehicle goes on to a large piece of private land, a track or whatever, and there is an accident, so there needs to be an investigation as to who was in the right and who was in the wrong. On private land where an automated vehicle was making its own decisions, does he not think the Government should conduct some analysis of the potential issues? It may be that no changes are required, but should not the Government consider it? People do drive on private land, and if they are going to take automated vehicles on to private land, it is a legitimate question.

Automated and Electric Vehicles Bill (Sixth sitting)

Debate between John Hayes and Graham P Jones

Committee Debate: 6th sitting: House of Commons
Tuesday 14th November 2017 Public Bill Committees

[Mr Hayes]

Well—

[Graham P. Jones (Hyndburn) (Lab)]

rose—

[Mr Hayes]

Before I give way, I will quote Ruskin. I know that the hon. Gentleman will want to be informed by that before he contributes. Ruskin said:

“Quality is never an accident. It is always the result of intelligent effort.”

The effort required is of a scale and of the kind that my right hon. Friend the Member for West Dorset mentions. I shall be able to offer extra, exciting news in a few moments.

[Graham P. Jones]

I am more likely to quote Rousseau than Ruskin. To take the point made by the right hon. Member for West Dorset and talk about it practically, in my constituency 50%-plus of properties are terraced and the lamp standards are set back, not kerbside. That causes a difficulty, because even if we were to fit charging points, we would still have trailing wires. We therefore have all sorts of issues about how we interconnect a property with the kerbside when the lamp standard is set back towards the property, not the road.

By 2040, of course, all vehicles will have to be electric vehicles. The houses will still be there—we are not going to demolish or reconstruct them—so there will have to be a process of adaptation between now and then. The right hon. Member for West Dorset was talking about 10 million charging points and 20 million cars, and I do not think he is too wrong. Who knows? With smaller vehicles, there may be more vehicles than that. How does the Minister envisage resolving that?

One thing the Minister could do, though it would not bridge the problem of open wiring and cabling from a property to the kerbside, is on parking bays. One of the problems in terraced areas will be the competition for parking outside. If a person has a charging point on their property, with the Government having alleviated the problem of cabling across the kerbside, they still have the problem of accessibility when they come home. The Government need to consider how the charge is transferred from the property to the roadside and how to prioritise, because someone who has just bought an electric vehicle will want to be able to park outside their house to connect the cable up at the shortest point. Those are issues the Government need to consider. When we look at the scale mentioned by the right hon. Member for West Dorset and where the volume of terraced properties is like mine at 50%-plus, we see there is a major challenge for the Government.

[Mr Hayes]

Yes, and one might say, paradoxically, that the challenge is both urban and rural. In many urban areas, people may not have convenient roadside parking, while in many rural areas people may live remote from main arterial routes and therefore major retailers. The Bill mentions major retailers, and I want to deal with that in greater detail. The point was made by the hon. Member for Kilmarnock and Loudoun in considering the previous incarnation of the Bill—the first Bill that dealt with these matters, which never came to fruition because of the general election—that rural areas in the north of England and Scotland and elsewhere could be disadvantaged if charging points are focused on main routes and urban places. I want to deal with that in my remarks and the subsequent actions I take.

The hon. Member for Hyndburn is right that there is a technical challenge in making sure that the infrastructure is in place to deliver the charging points. There is also the planning challenge. My right hon. Friend the Member for West Dorset describes the efforts of Wandsworth and Kensington and Chelsea as just the beginning. Those were not his words, but I want to ensure that no one felt he was being critical of those brave local authorities.

Yesterday, I met the Secretary of State for Communities and Local Government and discussed this with him. In two respects, planning is critical. It is very important that we ensure that, first, electric car charging points are part of any application for new housing—an implicit part of new developments—and secondly, in respect of local authorities, we achieve greater consistency in the provision of charging points for the very reason that my right hon. Friend gave. The numbers involved require all local authorities to consider them and act on those considerations, or we simply will not get enough charging points—or, just as seriously, we may get them clustered in certain places and absent in others. That will not build the confidence we require to encourage the purchase and use of electric vehicles.

--- Later in debate ---

[Mr Hayes]

Let me be crystal clear: I have no intention of being behind the curve. I am not satisfied to be on the curve, we are going to be ahead of the curve. That is why we must think about housing developments and local authorities but, more than that, about workplaces. I want the Committee to know that the Government have already put into place grant funding to encourage workplaces to put charge points in place, so that people who do not have easy access to a charge point on the street and have not charged at home can charge at their place of work.

I want every local authority in the country to know that there is grant funding available for on-street charge points and I encourage them all to apply. We are not simply speaking of regulations or guidance that encourages or obliges them to consider these matters. We are prepared to help to fund this roll-out.

Workplaces, homes, local authorities, on-street, working across Government—this will not simply put us ahead of the curve, it will make us a leader in this field. I personally am not a laggard, and neither are the Government.

[Graham P. Jones]

I am grateful to the Minister for giving way. He raises a good point: it is desirable to have charging points in workplaces, and I hope the Government will follow through on the Minister’s advice. People do not want charge up at home. There is obviously an issue there: the energy is coming from their own power point and, even if they have solar panels, they will be at work during the day when the sun shines and their vehicle is more likely to be at work. So the workplace is a great place for people to charge electric vehicles. That is desirable in the UK because if we are charging during the day—most people work during daylight hours—it will be from a renewable energy source.

Let me will just return to the Minister’s point about local authorities. My local authority is about to implement a planning policy making charging points automatic in every new build. They are progressive, but they are still left with this legacy. I put this to the Minister today, in my constituency of Haslingden and Hyndburn—where 50% of homes are terraced houses and the lampposts are set back—what incentive do people have to buy an electric vehicle when they cannot charge it at their property? Either they cannot get an access space, or they would have to run a cable. There is the technical problem of running a cable from the property to the car. What is the Minister’s response today, to get the electric vehicle market growing, and to get it growing in constituencies like mine?

[Mr Hayes]

It is straightforward: greater interoperability, greater shared and common access, consistency about payment method, and much greater availability—in homes, on streets and in workplaces. We simply have to have a step change in volume, but a fundamental change too in the ease of use of charge points.

It is true that most people who currently have an electric vehicle, for most the time, charge at home, and typically they charge overnight. That point was made earlier in the debate. But unless people have the confidence that they can charge straightforwardly elsewhere—with a system they understand and a payment method that is easy to use—they will not have the confidence to purchase or drive an electric vehicle. We see this as absolutely critical to our bigger ambitions for low emission vehicles, which is why we introduced the Bill. The whole purpose of the Bill is to address one of the principal reasons people might cite for not switching to an electric vehicle.

--- Later in debate ---

[Mr Hayes]

This part of the Bill facilitates a regulatory environment that would allow us to address a range of challenges. The Bill anticipates regulations, though I do not yet know whether this needs to be done by regulation or whether it can be done by other means. I wanted to highlight that I share the hon. Gentleman’s concern. I know that the Committee felt that there is, not a risk or a likelihood, but a possibility that we might end up concentrating charge points, even though they are interoperable and easily accessible and wonderfully recognisable and beautiful, and that rural areas would consequently be at a disadvantage. I will look at the matter closely and see whether we need regulation, or whether we can use other means.

I must say a word about amendment 3, as it is the subject of the debate. The hon. Member for Kingston upon Hull East suggests that we require the Secretary of State to consult charge point operators and vehicle manufacturers before regulating. I can absolutely assure him that we will be consulting charge point operators and vehicle manufacturers before we make regulations. He has my certain assurance that that consultation will take place. I do not feel that the amendment is necessary, because it is implicit in the way in which the Government will go about their work. Ruskin said:

“Remember that the most beautiful things in the world are the most useless; peacocks and lilies for instance.”

That does not mean that useful things must be ugly. It is perhaps true that the most beautiful things are useless, but let us make useful things as beautiful as they can possibly be.

[Graham P. Jones]

Presumably, Sir Edward, with your permission, we are also speaking to clause stand part?

[Graham P. Jones]

The clause states that the Secretary of State will make regulations on these matters. What is the timeframe for this and what is the process? Who will be involved in some of these decisions and in formulating some of the ideas? When in the near future will some of these regulations be laid? As I said earlier, 50% of the issues for my constituents are simple technical matters: terraced property, road and the kerb that sits in the middle. When will the Secretary of State bring forward the regulations in clause 9 and who will be involved in that?

[Mr Hayes]

Well—

--- Later in debate ---

[Mr Hayes]

Let me deal with that first. I wholly agree that the regulatory powers we have taken are designed to produce a common payment method. That is very important. As I offered a moment ago, we will engage with the industry to work to that end, but we could use these powers to oblige that. It is intolerable that people might turn up thinking they could charge their vehicle, find that the charge point was compatible because of the steps we have taken, and then find that they had to have pre-booked, prepaid or have a special card to do pay. It is probably right that we go for a pay-as-you-go method, but I do not want to be definitive about that. Let us have those discussions to achieve the end my hon. Friend suggests.

On the other matter, will the hon. Member for Hyndburn remind me what he said? I have now waxed so lyrical that I cannot remember.

[Graham P. Jones]

It was about the process and the involvement of the regulations that the clause says the Secretary of State will introduce. When are we likely to see them? Fifty per cent of my constituents have a technical problem that could be resolved quite soon. Perhaps the Minister’s office and the regulations might resolve that for them.

[Mr Hayes]

I know that when I display my scepticism about the free market, it excites my Opposition friends whose views on such things are closely aligned with mine. I have to say, however, that the market is not entirely undesirable. We hope that through co-operation and collaboration, consultation and discussion, we can bring about a happy series of outcomes. We want to work with manufacturers and industry to ensure that we get to the destination that we all seek, but the regulations ensure that if we do not get there, we take the powers. My view is simple: we will introduce regulations when it is necessary to do so. We will not regulate unless we have to. As my right hon. Friend the Member for West Dorset said, there seem to be persuasive arguments that if we do not establish the ability and, in some instances, the actuality to do so, the market will not necessarily deliver all these outcomes, but that is a matter to gauge when we see how things develop. The important thing is that the Committee can be proud of putting in place the means by which Government can do just that.

Automated and Electric Vehicles Bill (Fifth sitting)

Debate between John Hayes and Graham P Jones

Committee Debate: 5th sitting: House of Commons
Tuesday 14th November 2017 Public Bill Committees

[Graham P. Jones]

Will the Minister give way?

[Mr Hayes]

I will in a second.

In the end, the clause aims to protect insurers from a negligent person who intentionally fails to update their vehicle. For the sake of clarity, I offer the parallel of someone who fails to ensure that a vehicle they drive now is safe—who fails to take the proper precautions or make the proper arrangements to ensure that their vehicle can be safely driven when they go out in it. So it will be with autonomous vehicles and the software that relates to them. That is the purpose of the clause, but I am not entirely convinced by the advice that I have had on it yet. The civil servants in the room—I know I am not supposed to acknowledge them—will have a shiver going down their spine. I want to reflect more on it. I think we are right and I am sure what I have said is right, but I may have more to say on it. I am happy to reflect on it and come back to my hon. Friend the Member for North Warwickshire if there is more to be said.

[Mr Hayes]

With laser-like precision, my hon. Friend has focused on exactly the reason why I want to reflect on it. I thought that that was what he might say and that was what he meant when he first spoke. Although the response I offered him goes a fair way towards what he was seeking, I need to clarify that additional consideration for him. In the end, that will bring us back to the point close to the heart of all insurance considerations: how we discern liability and negligence. I want to be more precise about the second point that he raised, but I do not yet feel confident to do that. I will now give way to my old friend—the veteran of many Committees with me.

[Graham P. Jones]

I am grateful for the Minister’s warm words. To return to the issue of GPS mapping updates, people expect the road network to be updated on vehicles, but the scenario is completely different for manual operation compared with automated operation. I hope the Minister is aware that most of the operated maps sit in the private sector. That is not an issue if the car is manually operated because the driver always has discretion as he sees the road in front of him, but that is not the case in automated mode. We have to think about our highways workers or our police force who may be intervening in the road network.

When we talk about updates, serious consideration needs to be given to GPS maps in automated mode. Who is responsible for them? Who owns them? Who will update them? How will we ensure that we have road safety? Updates are vital, but GPS mapping is particularly vital. The Minister needs to take a good look at that and how it will be integrated into the insurance industry and into the Bill and the regulations to protect our people working on the roads.

[Mr Hayes]

As I say, the hon. Gentleman is a veteran of many Committees. We have rarely crossed swords, but we have certainly waved swords at each other from time to time. He makes a sound point which is precisely why we would need to address a range of those issues in further regulation. At this juncture, I do not think we can think about adding that to the Bill. I know he did not say we should, but he did say that we should think about those matters and look at how they relate to this Bill subsequently. He is absolutely right.

At the risk of opening up a new avenue for discussion—I hesitate to do that because I know we want to make reasonably rapid progress today—the hon. Gentleman might also have raised the issue of the interface between the driver and the road, and the technology on the road. As we move towards smarter roads, there will be an increasingly close relationship between the information received in the car from outside, as well as the information that is at hand within the vehicle. That is another area where there will be a connection to automated vehicles. We are already seeing the regular use of gantries across roads that provide information. The interaction between that information, the car, and the information that is available locally will, over time, become an increasing feature of driving.

This is another area in which regulation will—in exactly the way the hon. Gentleman described—need to address how that works for automated vehicles. The assurance I give him and others is that we recognise these challenges, we anticipate further work, we know that work is ongoing and it will be set out, both in the formation of international standards for a type-approval process that I mentioned, and in the regulation we will introduce that matches that development.

--- Later in debate ---

[Sir Oliver Letwin]

I am grateful again to the Minister. Yes, exactly: I had been worried about two cases, one in which the person sitting in the driving seat was the owner, and the other in which the person sitting in the driving seat was not the owner but was covered by a policy covering the driving of other cars. In both instances, I think it is clear.

The reason I am labouring these points and asking the Minister to confirm them is that I do not think that any ordinary human being reading the Bill would have the slightest clue that this is what it is trying to do. I think its architecture has been forced on it by the desire to piggyback on the Road Traffic Act; and I suspect that lawyers will understand, because they will be familiar with the Road Traffic Act and how its principles operate. Therefore, I am satisfied that probably this is the right way to structure the Bill. In any case, it is certainly structured in a way that, when everything is read together in the right way, does not create the gap that I was worried about, as the car moves between automated and non-automated mode. That was the critical issue.

[Graham P. Jones]

It is a pleasure to serve under your chairmanship, Mr Bailey. I seek clarity from the Minister—I know he has been reasonably descriptive up to a point—on the types of vehicles that will and will not be insured. It will probably be connected and automated vehicles, automation level 4 and 5; however, I am concerned about the size and shape of the vehicles and how the legislation will fit them in the future.

There has been an issue about insuring automated vehicles, not just on public but on private land. However, even on public land, are there situations where we might see a size of vehicle—my hon. Friend the Member for Kingston upon Hull East drives a very small electric vehicle, and there might be even smaller ones—on parts of the road network that had become accessible to new types of electric vehicle, and where we might suddenly need to reflect on the type of insurance? They may get down to the size of a bicycle, for example—I do not know—so are there circumstances or situations where the shape and size of the vehicle would have some effect? I suppose that relates to the definition of level 3 and 4 automation. I know that the Minister will produce a list in future guidance, but I would welcome a clarification from him on shape and size, how the Government see that changing and whether they will be responsive to that.

Going back to insurance on private land, this causes an enormous problem, quite apart from my earlier point about mapping. The legislation says that vehicles must be insured on public and private land—although there are some discrepancies around private land. How will this work with automated vehicles? If we multiply that by the fact that the shape and form of automated vehicles may change—they may be able to go down narrow footpaths, for example—where are the Government on the insurance system? How it will work with automated vehicles accessing private land? I am asking for clarity on this point. I do not know the answer; I am probing the Minister to see if he does. There seems to be a complex minefield of issues when it comes to insuring an automated vehicle—of whatever shape, form or function—that can wander off on to private land. There does not seem to be much clarity in the Bill on that. It seems to be hanging on the old legislation for traditional motor vehicles as we know them and how they are insured on the current road network.

Turning to automated vehicles, in particular on private land, and their shape and form, this will clearly be a challenge, so will the Minister clarify how the Government will respond? Again, I come back to the mapping issue. There will surely need to be tighter definitions of where automated vehicles go and what they are allowed to do. There seems to be no reference to that in the guidance or anywhere else. Will the Minister provide some clarity? People want to know. It is not just about the public highways, motorways, A roads and B roads. It is far bigger than that and the insurance system has to cope with insurance off-road, on private land.

[Mr Hayes]

By way of adding a certain excitement to the proceedings, I shall deal with the last point first, rather than reply to the points made in chronological order.

The hon. Member for Hyndburn spoke about where vehicles might be used, and the size and shape of vehicles. He was right to identify that it may be—note the emphasis on “may”—that autonomous vehicles at the beginning of their life on our roads are typically used in certain places and in certain ways. One can easily imagine a vehicle in autonomous mode travelling on a long straight road—a motorway, for example. It could be that that is the way the technology will develop. He is right to draw attention to that because it has been written and spoken about many times in the discussions about autonomous vehicles. He was also right to raise the matter of shape and size. Earlier in our considerations, we discussed vehicles other than private cars. Of course we should not assume that autonomous vehicles will simply be private motor cars. There will be other kinds of autonomous road vehicle and it may be that they will develop first, or at least in parallel with the development of private cars.

The hon. Gentleman is right that that could well be where we are heading, but the essence of his argument is that we might have to have different insurance policies to deal with those different eventualities. That will not result from the measure before us; the size and place considerations—the type of vehicle and where it is used—will be the same as in the current insurance framework, most of which is covered by the Road Traffic Act, so I do not anticipate a huge departure from existing practice.

In essence, insurance works on the basis of insuring people, to some degree taking account of what they are driving—for example, policies take account of the size and shape of vehicles. I do not imagine that that will change and nothing in the Bill suggests otherwise. I anticipate—the insurance industry told us this in evidence submitted to the Committee—that the industry wants enough certainty from the Bill to develop products that are fit for purpose. My judgment, from what we have been told, is that the industry will want such products to mirror as much as possible what is available now. Certainly that is true of where vehicles are used and of their shape and size.

[Graham P. Jones]

I was simply probing the Minister because the use of automated vehicles on private land is an interesting area on which the Government must be probed. I also made some other small points. I urge him to clarify whether he foresees any situations, beyond what is in regulation or statute now, where automated vehicles on private land may provide a challenge that the Government will need to look at.

--- Later in debate ---

[Mr Hayes]

I will deal with the private land point in a moment.

To re-emphasise: when we insure a vehicle at the moment, the questions we are asked by the insurer are not about where we intend to drive it—we are not interrogated about whether we will drive the vehicle on the motorway, on side roads or only in our village. That is not typically what happens with an insurance policy, although there are exceptions. Someone with a historic vehicle, for example—a classic or vintage vehicle—might well take out an insurance policy stipulating that the vehicle will only be used for a certain number of miles in a given period, paying a lower premium as a result. If people say that they will use their vehicle only on high days and holidays and that it will be driven for less than 100 miles a year, of course they will obtain a different kind of policy, often offered by a specialist provider. That, however, is an exception. As a rule, we are not interrogated about where we are going to drive, whether it be on a main arterial route or a side route, so I do not think that the insurance products that I hope are developed as a result of the Bill will, in those terms, be very different from what we have now.

That is certainly what the Association of British Insurers and others have told us. The evidence to the Committee emphasises not only the insurance industry’s support for the Government proposals, but its wholehearted support for the development of autonomous vehicles. The industry sees it as critical that we get the legislation on to the statute book so that it can develop the products necessary to provide the safety and security we all seek.

[Graham P. Jones]

I am grateful to the Minister for giving way one last time. To pursue this matter, let us say that an accident occurs on private land while the vehicle is in autonomous mode. Does he think that the existing regulatory framework is sufficient for insurers, or that some changes will be needed for assigning liability should there be an accident on private land? An automated vehicle goes on to a large piece of private land, a track or whatever, and there is an accident, so there needs to be an investigation as to who was in the right and who was in the wrong. On private land where an automated vehicle was making its own decisions, does he not think the Government should conduct some analysis of the potential issues? It may be that no changes are required, but should not the Government consider it? People do drive on private land, and if they are going to take automated vehicles on to private land, it is a legitimate question.

Automated and Electric Vehicles Bill (First sitting)

Debate between John Hayes and Graham P Jones

Committee Debate: 1st sitting: House of Commons
Tuesday 31st October 2017 Public Bill Committees

[Graham P. Jones]

Q What impact will the Bill have on employment if it goes through?

Diana Holland: Again, it does not have to have any impact on employment in terms of the two relatively minor areas that it could be argued that it covers; but the potential is there to enable a wholesale change to a different method, and ultimately saying that the professional driver no longer has a role. There are extremes in approaching this. We would say that it does not have to do away with employment, but plenty of estimates have shown that if it is introduced in one way, that is the effect it will have.

Our immediate concerns regarding the phrasing of the Bill are on the impact on those people currently employed, or under a range of contracts, and responsible for a vehicle, who would find themselves potentially liable in a way that we hope is not the intention. We really think that needs to be looked at to ensure that it does not encompass all kinds of people who we do not think should be liable in those circumstances. There are specific concerns around taxi drivers who own their own vehicles. There are issues around road haulage, where certain people are required to establish themselves as a limited company or to be self-employed to have jobs, but the definition bears questions. We need to ensure that we are not extending liability here beyond where it ought to be, when the operation is run and owned by a third party.

Rob Johnston: If I can briefly add to that answer, KPMG produced a report that said there are potentially 25,000 additional jobs directly working in the automation industry by 2030. A potential 320,000 jobs that could be created, but there is a caveat to that: Government policy is needed to address the growing skills gap, otherwise there is a risk of losing more than £50 billion in GDP per annum. Those are statistics provided by the transport systems Catapult.

[Mr Hayes]

Q Finally, I want to return to Mr Turner’s point on skills, which I nodded vigorously at, as he noted. Presumably to facilitate the discussion you are suggesting—the bigger debate about the transport future—it would be helpful now to begin dialogue with the FE sector and with manufacturers on apprenticeship frameworks. That is beginning. As you described, Rob, you are having those kind of discussions, but I am of a mind that the Government should now facilitate some more of that. Would you welcome that? I am inclined to take the view that while it is true that we cannot exactly predict either the character or timing of the technology, initial discussions of the kind that you proposed would be helpful. Is that about right?

Adrian Jones: Yes, I would certainly say that we would welcome the opportunity. While the date for roads full of fully automated vehicles is an unknown, as is the impact, our members already have concerns. In manufacturing, the apprentices needed are not engineering apprentices in the traditional sense; they are software engineer apprentices. In road transport, we have fitters and engineers who are up to their elbows in grease, but in just a few years’ time they will be up to their elbows in keyboards, iPads and screens, which is a completely different skillset.

We also need to recognise that there is concern about skills. As you know, Minister, there is a widespread acknowledgement of a driver shortage in the UK. You already know my views on that. Our members already have concerns that the technology is being used as a smokescreen in effect to say, “We can use this technology to address that skills shortage”, but it will not do that, because employers will see it as a way of reducing cost, rather than filling the skills gap.

One expert that I heard on the venerable Radio 4 was asked about the job shift of a bus driver when that bus was fully automated. The expert said, “Jobs will be created. There may be a café on the bus and they could work in the café.” That is not comparable work. Yes, it is a job, but going from a skilled position to working in a café—no disrespect to any café workers—is not maintaining a standard of living or the same income to that family or the Treasury. There has to be a real debate now, not only on the future, but on the impact that new technologies are having on the transport industry and workers today.

--- Later in debate ---

[Mr Hayes]

Q And you hope that Her Majesty’s Opposition will move an amendment on the provision of coffee, do you?

Robert Llewellyn: A bit of coffee. Or a herbal tea.

[Graham P. Jones]

Q Robert, you are a great enthusiast for automated and electric vehicles, so the Bill must please you no end. I have just a broad question and then a specific question. Broadly, what is missing from the Bill? We heard from Unite about integrated transport, rather than this just being about the relationship between the driver and the vehicle via the insurance company, as well as some other small matters. So on the bigger issue, what do you think is missing? What would you like to see if you were the Minister in charge?

I want to ask a particular question at the end about vehicle variations. Does the Bill accommodate what we will see in the future? I believe we will see different types of vehicle variation, because there will be electric vehicles instead of just the four-seater saloon car.

Robert Llewellyn: There are three things that would be wonderful. I am definitely not an expert, but when you have seen this you can see how popular it is: community electric car sharing/ownership/use. When those little systems organised by local communities appear, they are very popular with the local community. I have seen this in small towns rather than big cities.

Automated and Electric Vehicles Bill (Second sitting)

Debate between John Hayes and Graham P Jones

Committee Debate: 2nd sitting: House of Commons
Tuesday 31st October 2017 Public Bill Committees

[Mr Hayes]

Q So Mr Wong thinks we should have a co-ordinated national strategy, whereas you think that the market should prevail. Is that the difference between you?

Brian Madderson: Yes, I think it is good to have a market strategy, but you would certainly need to have proper funding available to not only small retailers but large retailers as well. By this, I mean the independents, certainly. The big oil companies today count for relatively few of the total number of filling stations—less than 15%—across the UK.

[Graham P. Jones (Hyndburn) (Lab)]

Q Obviously, you represent the motor manufacturers, and I am concerned about the shape and size of vehicles going forward and the adequacy of the legislation. My hon. Friend the Member for Kingston upon Hull here has, I think, a Twingo—do you have a Twingo?

--- Later in debate ---

[Graham P. Jones]

Q It is not just that. What if I set off with a trailer in manual mode but I suddenly decide to be sneaky and switch it over to automated and go to sleep? There are a whole bunch of issues around the change in form, shape and size of vehicle and going between manual and automated.

Steve Gooding: I would say a similar thing as to Mr Efford: as a consumer, if I am being invited either to travel in one of these vehicles because it is the equivalent of private hire, or to buy one, I expect to buy something that has been certified as safe for the use to which it is going to be put. If it is inappropriate for me to hitch a trailer to it and use it in autonomous mode, that had better be made clear to me at the point when I buy it.

[Mr Hayes]

Q I have one further question, on a slightly different subject. This morning, we talked about how these developments will change the nature of the skills required. Steve 1, if I may call you that, mentioned that earlier. Presumably you will also acknowledge that it will give rise to new skills. There will be a shift in skills and new kinds of jobs and skills will develop. Is there not an exciting prospect of a whole range of new competences coming as a direct result of this technology? Is that fair?

Steve Nash: Absolutely, yes. There is probably more opportunity than threat from the new technologies. We are interested in ensuring that those skills develop in the right way. If you look at autonomous vehicles—I mentioned electric vehicles earlier—we only know as yet what manufacturers have said about their plans in the future. It may well be, for example, that when we get to level 5, or even level 4, a lot of those vehicles are not sold in the way that they are sold today. A new electric vehicle was launched a couple of weeks ago by a new brand called Polestar, which is owned by the same people who own Volvo. They say that the car will be sold on a subscription model, so it would remain within the possession of the manufacturer.

There is a lot of road to cover between now and then. Whoever is looking after those cars—I have already talked about electric cars, but when we get to autonomous cars as well—they will still have accidents. Things will drop on them and things will happen to them that are not caused by the car. When they are repaired, we have to be assured that they are repaired to a standard that returns them to exactly the same capability they had before the accident, which means we need people who are certifiably competent to do that. That is where we are interested in seeing some clarity.

We have cars with quite substantial autonomous capabilities already—Tesla is a good example—and I have seen second-hand examples of them that have gone beyond the dealer network. You have to wonder about the competence of the people who will work on that car—I am not saying that they are incompetent, but I do not know that they are competent. When someone next engages the autonomous capabilities of that car, will they do the things they are supposed to do? We cannot just leave that to chance. We have to be sure that there is some way of assuring ourselves about the people who work on them. This is not like the days when there was somebody who was “a bit handy”, as I think the phrase used to be, and you could give your car to them and they could look after it. This is a paradigm shift. We need to move with that and recognise that these cars, even though they have four wheels and look a bit like the cars that we have today, are entirely different. The skills base needs to be elevated to deal with them because they are an entirely different prospect.

Oral Answers to Questions

Debate between John Hayes and Graham P Jones

Thursday 15th September 2016 Commons Chamber

[Mr Hayes]

My table grows ever more round. I am none the worse for it, by the way.

I am familiar with that road. As my right hon. Friend will know, a number of suggestions have been made for the improvement of the scheme. There are always demands relating to different roads, and different ideas about how those demands should be met. We study these matters carefully, and part of that process involves the kind of consultation that my right hon. Friend has recommended. I am always delighted to speak to him about any matter that he raises in the House, including the one that he has raised today.

[Graham Jones (Hyndburn) (Lab)]

The Government talk about rebalancing the economy, and it is interesting that the Minister just talked about improving east-west links in the north, but may I make one suggestion that I hope he will take forward? Can we extend the M65 all the way to Scotch Corner? That needs to be done. Millions of people in the north-east need to be connected directly to millions of people in the north-west and the Manchester region. That vital east-west infrastructure link would rebalance that economy.

[Mr Hayes]

The hon. Gentleman is known for making the case for links that would further boost his local economy. There have been scurrilous suggestions that the northern powerhouse has in some way faltered. Let me tell the House that the northern powerhouse is not only alive and well, but will thrive under this Government. That will include the kind of infrastructure investment necessary not only to provide transport links, but to boost economic growth, build skills and spread opportunity. That is the kind of Government we are: a Government with big ideas who put them into action for the benefit of our people.