Automated and Electric Vehicles Bill (First sitting) Debate

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Department: Department for Transport
John Hayes Portrait Mr Hayes
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Q So the legislation is welcomed by the industry.

Ben Howarth: Yes, it is very welcomed by the industry. I think it is very clear that the legislation and broadly the development of automated driving are something that insurers are genuinely enthusiastic about. In terms of the work we do in the ABI, it is one of the areas where we get the most engagement and interest from our members.

Karl Turner Portrait Karl Turner (Kingston upon Hull East) (Lab)
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Q Off the back of the Minister’s question, clause 1(1) defines “autonomous”, or rather the vehicles that could be classed as “safely driving themselves”. That does not seem very tight to me. Does the definition not need to be tighter? Does it not give the Secretary of State an awful lot of power? I do not know whether you have a copy of the Bill in front of you. Clause 1(1) states that autonomous vehicles

“are in the Secretary of State’s opinion designed or adapted to be capable, in at least some circumstances or situations, of safely driving themselves.”

The clause allows the Secretary of State to come up with a list of vehicles that he or she thinks are capable of being driven safely without being operated manually at all. The definition does not seem tight to me.

Ben Howarth: I would make two points on that. On the one hand, we would obviously want to see robust and good consultation on how that list is put together. We would want it to be transparent and we would want the opportunity as an industry to feed into that. The wording does have an advantage in that it clearly states “safely driving themselves”. One of our views is that we want a clear and unambiguous distinction between cars that are completely hands-off—maybe not for the whole of the journey, but for parts of the journey—versus cars where the manufacturer might be saying, “You can do a lot with the automated functions, but you need to be there hovering over the steering wheel as a backstop.” We do not want those things to be blurred, and the definition in the Bill does that.

If I can make one further point, being on the list is clear—there is a definition—but there will also be a role for insurers to play in thinking about, “We have a claims history and car A is brilliant and has a really good safety record, while car B might not be a very good functioning car, but it has got itself on to the list.” Insurers will want to take a view on that in terms of how they approach those vehicles in offering products.

Karl Turner Portrait Karl Turner
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Q Thank you very much for that answer. Clause 4 describes vehicle software updates. It concerns me that—if this is a vehicle that is completely autonomous—the onus is put on the passenger, if you will, to update the software. They have to agree manually to update software. Is that the right position? Should it not be automatically updated?

Ben Howarth: I think the onus to do those software updates should definitely be on the manufacturer. They should ensure that the system works, and I think that links back to part 1. The Bill says that where a wilfully negligent person deliberately ignores what the manufacturer wants them to do and finds a way around the manufacturer’s systems and still takes the car on the road, it would be unreasonable to say that that person is still a victim. I think you need this protection in the Bill, but you also need robust measures to ensure that people cannot override the safety-critical updates.

I think “safety-critical” is the key phrase. That places a strong incentive on the manufacturer to say, “If the update is safety-critical, you have to ensure that the driver knows.” We have got to be absolutely clear that there is a distinction between “nice to have” upgrades, that perhaps involve a slight improvement in the maps functionality or something like that, and an upgrade where if you do not have it, the car is potentially unsafe and we have a problem.

Karl Turner Portrait Karl Turner
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Q Finally, while I have you here, the current situation for vehicle insurance is driver-centric. The driver of the vehicle is the insured person. The Bill provides for a situation where the vehicle is insured. Is that definitely the way we should be going? Should there be some more provisions?

Ben Howarth: I think what we have in the Bill is the right way. When these cars first come to road, most users/drivers will probably use the automated function for 10% or 20% of the journey. That is why we want to keep to a system with an all-in-one approach. The Government have described this as

“a rolling programme of regulatory reform”,

so if we really move to having cars without steering wheels or genuinely A-to-B autonomous cars we probably need to look again at what the right approach to insurance is, but I think the technology is a long way from that.

Karl Turner Portrait Karl Turner
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Q What would happen with an uninsured vehicle, then? At the moment, the Motor Insurers Bureau compensation scheme kicks in. Would that apply to automated vehicles? If not, should that be stated in the Bill?

Ben Howarth: We think it definitely should apply. I know that there have been discussions between the MIB and Department officials about the correct way to do that, and it will be interesting to see how the Committee approaches it. My understanding is that the reason for not having the MIB scheme in the Bill is that it is not in the Road Traffic Act 1988 either, so the existing system is not directly in primary legislation. I think the MIB will be assured so long as the Government confirm that it is still the ultimate fund of last resort, which it definitely should be. It does not necessarily need to be in the Bill, but we would like absolute clarity on how it will work.

Iain Stewart Portrait Iain Stewart (Milton Keynes South) (Con)
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Q I would like to follow up on Mr Turner’s point about clause 4 and the respective obligations of the manufacturer and the driver to update software. Clause 4(1)(b) refers to

“updates that the insured person knows, or ought reasonably to know, are safety-critical.”

That strikes me as very woolly. I would be grateful for your opinion on where the balance should lie. I accept that if someone has wilfully not installed updates or overwritten them, or something, they become liable. However, if the manufacturer has sent through an update, but the person has not taken it to the garage or downloaded the software—or whatever—at what point do they become liable? I have an update waiting for my iPhone, but I have not got round to doing it. That is not safety-critical, but is there a parallel? Do we need a tighter definition than “ought reasonably to know”?

David Williams: It is interesting that you mention the iPhone, because that is exactly the debate that we had in our early discussions. Currently, for most things you buy, you have the right to refuse a software update. You are allowed not to get round to doing your iPhone update; you can continue to bypass it. Our view was that when we are talking about a tonne of metal travelling at high speed on the road, people should lose that right, because it would enable them to take risks with other people’s lives. We think the updates should be implemented straight away, because we see them as being improvements. As for whether they are safety-critical or not, it would be a damn sight easier if all updates had to be implemented immediately and the responsibility fell on the manufacturer, but then you are drifting into trying to impose something in UK legislation that some European territories and motor manufacturers have probably not really thought through yet.

The idea of saying that people have to install safety-critical updates immediately is something that we recommend. As for the detail of how it should be dealt with in the Bill, I have to plead ignorance, but the reason for pushing for it is that we honestly believe that if a manufacturer has updated the software, it is to make the vehicle perform better. These are not iPhones that can only annoy other people; these are vehicles that can kill other people. Those updates should be mandatory in whatever way we can make them so.

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Karl Turner Portrait Karl Turner
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Q I declare my interest as a member of Unite, the GMB and the RMT. I wonder whether you have any concerns about the skills gap and training. Should there be something in the Bill about forcing or encouraging manufacturers to train people?

Diana Holland: I think it is absolutely essential that there is the transport skills infrastructure body that exists at the moment. I was looking at its terms of reference—

Karl Turner Portrait Karl Turner
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I am grateful that the Minister is nodding very enthusiastically.

John Hayes Portrait Mr Hayes
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It is a good point.

Diana Holland: I was quite concerned when I looked at those terms. Although there is some implication about developments in technology, it seemed that we would need to look at the way it is worded to ensure that it properly reflects this. Otherwise, the Bill will not provide the opportunities that it needs to. So yes, that is a really important point.

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Stephen Kerr Portrait Stephen Kerr
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Q So is there anything that needs to be addressed in the Bill?

Robert Llewellyn: Sorry, yes, that was your question. There is one crucial thing that I think could be addressed. It has been addressed in other countries. Ireland and California are two places that I know about where there is one system for paying for electricity. Everyone who uses an electric car is happy to pay for the electricity, but the system is so complex. I could get the collection of cards out of my wallet that I need to be able to use all the chargers, and very often I do not have the specific card for that charger. In Ireland there is one system, an app that you have, and you can use any charger. It is operated by many different companies. They all get paid for it, but you just have one thing. A combination of either that or touch to pay should be addressed.

You can buy a bag of crisps with touch to pay, but you cannot buy electricity from a charger. I know there are complexities and legal difficulties and expense, but that would really make a huge difference. The most common complaint I hear is, “I haven’t got a wallet big enough to hold all the cards.” And you need membership and subscriptions. All that needs to go so that you literally go up to a charger, pay for the electricity you are using and move on. You do not have to join a club to use a Shell petrol pump. You just pay for it. That is a really essential thing.

Karl Turner Portrait Karl Turner
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Q You have described very well the problems that we have. I declare an interest as the owner of an electric vehicle. Finding somewhere to charge it is often extremely difficult. One of the other problems is home charging and the requirement for off-street parking. I noticed very recently Hackney Council’s lamppost charging. What do you think about that? Do local authorities need to do more to support councils to provide charging points?

Robert Llewellyn: That is a very good system by Ubitricity, a German company. My primary enthusiasm about it is that it is incredibly easy to use. You drive up to it and plug your wire in. The wire has a box that communicates and tells the company how much electricity you use. You plug the other end into your car and it starts charging. You do nothing. We need that frictionless ability to do that.

I cannot remember the figures, but there are many hundreds of thousands of suitable lampposts. One of the aspects of the technological change we are seeing is when a lamppost is converted to LED lights. It has extra juice—electricity—that you can take off it without blowing anything up. It does not need any other infrastructure changes. It is a very simple system. It requires lampposts that are on the kerb side of a pavement, which not all lampposts are, but there are certainly hundreds of thousands of them. They have fitted a great deal of them and they have been very popular.

Karl Turner Portrait Karl Turner
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Q I suppose my point is that the cost to install this will be reduced. It will probably be a lot less costly.

Robert Llewellyn: It is in the hundreds rather than thousands.

Karl Turner Portrait Karl Turner
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Q It is, but we have a situation where local authorities are cash-strapped. Not every local authority has a lot of electric vehicles; I think Hull City Council has two charging points. They are hoping to get to the dizzying heights of 70 at some point before 2020, and they are doing their best. Should we not encourage local authorities with incentives—crudely, I mean cash incentives—to ensure that the equipment is available for everybody?

Robert Llewellyn: That would be ideal. One of the other problems is that the technology is changing so fast. I recently drove over a strip of road just outside Paris that has an induction-charging strip set in it. I do not think that is going to happen, because I cannot imagine the cost of putting that in the M1—it would be in the billions—but these induction plates for static charging, so when you are parked the car starts charging, are quite common now. That technology is getting cheaper.

It is really difficult—I would feel nervous suggesting that anybody invest an enormous amount. There have been failures in public-invested charging points: they are in the wrong place, they break down, they are not maintained or they are not run by the company that set them up. There have been plenty of examples of that. This is a rapidly emerging technology that keeps changing. Take even the wire you use. Finally, a bit like phones, there is a standardised type 2 connector that goes in every socket and goes in every car, but even that was a mystery a while ago. I would have a certain reluctance in saying, “Yes. Make all councils install thousands of chargers,” because they might be the wrong ones in the wrong place.

An organic development is happening with private companies, including supermarkets, that are starting to put them in car parks. Shell is now putting rapid chargers in its forecourts. It is happening, but quite slowly. I think it is probably chicken and egging like that—so there are more cars, then more chargers, then more cars, then more chargers. I would not know how to suggest where to put them.

Karl Turner Portrait Karl Turner
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Q Finally, the Bill makes it mandatory for fuel stations to provide charging points. Does that need to be in the Bill?

Robert Llewellyn: I think that is a really good idea. If there is one group of fuel suppliers that could probably afford it without too much stress, it is the garage chains. They seem quite keen to do it. I think they can sense a change in public attitudes, which is why Shell has gone ahead and has done what it is doing. I know BP is doing the same. I do not know about any other companies, but it makes sense. All I would beg them to do is to put in nice chairs, wi-fi and reasonable coffee, because you tend to be in the garage a bit longer with an electric car than you are with a petrol car.

None Portrait The Chair
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Before I call the Minister, I have him, Graham Jones, Iain Stewart, Matt Western, Scott Mann and Matt Rodda indicating that they wish to ask questions. Are there any more? No. Well, you can do the maths as well as I can. Will Members be as brief as possible with their questions? And Robert, we really enjoy your eloquence and insight, but if you could be as pithy as possible in responding, that would be helpful.